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VOL. 132.
financial
iiromde
SATURDAY JANUARY,3 1931.
financial (Chronicle
PUBLISHED WEEKLY
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Change of Address of Publication.
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having long suffered from inadequate
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and growing subscription list, has moved
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William Street, Corner Spruce,
New York City.
P. 0. Box 958, City Hall Station.
The Financial Situation.
At the end of what the future essayist will probably find to have been the most dismal year in the
mercantile and financial history of the United
States—with trade and industry prostrated as never
before, with business activity in many lines steadily
dwindling almost to the point of absolute stoppage,
with the security markets in a state closely akin to
utter collapse, and recording prodigious declines,
even bond values of many good issues having fallen
10 to 25 points in recent weeks, with farmers passing
through a period of acute distress as a result of the
tremendous shrinkage in the market values of wheat
and cotton and to a somewhat smaller extent in the
case of other agricultural products, with the railroad carrying interest suffering contraction in
traffic and in income, gross and net, to the point
where its very solvency is threatened, and with bank
failures all over the country, large and small, so
numerous as to be perfectly startling—in the midst
of this great array of depressing influences, of a
magnitude and all pervading character which it is
safe to say has never before been witnessed, there
NO. 3419.
comes at the very close of the year a ray of light from
the railroad field, tiny in its first glimmer, but
doubtless full of promise for the future.
At the instance of no lees a person than the President of the United States, the rail carriers in what
is known as Official Classification territory (not
including New England) have agreed upon a general
plan for division of existing railroad mileage into
four great groups or systems, comprising (1) the
New York Central, (2) the Pennsylvania RR., (3)
the Baltimore & Ohio, and (4) the Nickel Plate-Chesapeake & Ohio combination dominated by the Van
Sweringen brothers. This is a change from the plan
suggested a year ago by the Inter-State Commerce
Commission itself and which body will of course have
tosanction the new arrangement before it can become
legally effective, though there seems to be no doubt
of the approval of the plan by the Commerce Commission. The Commission had suggested a fifth
system, composed principally of the Wabash and the
Seaboard Air Line, the latter of which, however,lies
wholly outside of strictly Eastern trunk line territory and more properly deserves to be grouped with
the railroads of the South.
All the details of the agreement have not yet been
announced, but the general outline of the scheme is
known, and in particular it is known how the important independent lines for the possession and control of which a strong contest has been waged, are
to be allocated. The Del. Lack. & West. goes to the
New York Central, the Pennsylvania yields up control of the Lehigh Valley to the Van Sweringen combination, but gets the Wabash RR., and seems
assured of trackage rights from the Nickel Plate
along the shores of Lake Erie and into Buffalo, while
to the Baltimore & Ohio is assigned (besides the Central RR. of New Jersey and the Reading, which have
long constituted its outlet to New York) the Chicago
& Alton, the Western Maryland and some smaller
roads. The Van'Sweringen combination,in addition
to the Nickel Plate and the Lehigh Valley, will comprise the Chesapeake & Ohio and the Erie RR. The
result altogether is the establishment of four well
balanced and strong combinations or systems, all
strongly entrenched for effective competition among
one another, and the whole four capable of rendering the public service required of them in the territory which they drain and serve.
No exaggerated ideas should be entertained as to
the immediate benefits to result from this agreement upon a plan for partitioning the railroad
mileage in the territory covered by the great system
referred to. It will not create any new traffic or
new revenues, and it will not, as far as we can
see,
provide any immediate means for curtailing
expenditures. Apparently it will not add or enlarge
the net
2
FINANCIAL CHRONICLE
income of the railroads to the extent of a single
dollar. Newspaper accounts refer to the arrangement as a merger or consolidation agreement. But
whatever of merger there is to be would seem to
relate entirely to the future, as we have nothing more
than the allocation of certain independent roads
and systems to the different groups which have long
dominated the whole territory. For the present
certainly the Lackawanna, the Lehigh Valley, and
the Wabash will remain separate properties and be
separately operated just as at present. No hint has
as yet come that they are to be amalgamated with
the lurge systems to which they have been assigned,
though possibly some of the smaller roads which
have also been partitioned among the four principal
systems may be quickly absorbed into the systems
and lose their identity. It is only the question of
control or possession, long a matter of controversy
and dispute, that has been settled. Possibly actual
merger will come later, but this at best will take
time for arrangement and settlement. We say this
to guard against extravagant expectations as to
immediate results. This in the end would only lead
to'disappointment.
Nevertheless the move is a step in the right direction, and the President is to be commended for his
action in seeking to bring it about. The action in
this instance is sure to pave the way for similar
moves among the roads in other parts of the country,
where real mergers will occur, bringing savings and
economies that will redound to the advantage of all.
The railroads to-day find themselves in a desperate
condition, and this has followed, not alone from the
general relapse in trade and business, but also in no
unimportant degree from the long antecedent period
of trials and hardships which they have been called
upon to endure.
We cannot agree with Senator Couzens that the
President should have withheld action until Congress has had further time for consideration of the
matter. Mr. Couzens referred to the fact that on
May 21 1930 the United States Senate adopted a
resolution to suspend all railroad consolidations for
the time being by a vote of 416 to 27, with 23 not
voting. Senator Couzens says in a public statement
given out by him that this resolution went to the
House, where it was reported by the Committee on
Inter-State and Foreign Commerce in amended form,
and is now on the House calendar. But Congress
has had 10 years in which action might have been
taken, and, for. all that anyone knows to the contrary, may dawdle and temporize for 10 years more.
Anyway, the mere adoption of the resolution by the
United States Senate does not count for much. Senators are always very accommodating to one another, and when one Senator, in the exercise of what
he thinks his God-given right, sees fit to introduce
a resolution, a host of other Senators can always be
depended upon to support the resolution in the end,
even if under the rules of the Senate it has to lie
over for a few days. Moreover, a resolution is not a
law, even if approved by both houses of Congress.
To become a law it must receive the approval of the
President, and Mr. Hoover would be certain to veto
any obstructive measures. So there was not the least
reason why the President should await the pleasure
of Congress.
The railroads to-day, as already stated, are in a
desperate condition, and it would be the gravest
kind of a mistake to palter or falter in an attempt
[vol.. 132.
to improve their situation, whether the benefits be
immediate or remote. Railroad managers are now
starting up in solid line for defence of their right*
and the common opinion is that they should have
done this long ago. They have suffered long and
patiently, never at any time earning the return on
their investment to which the Commerce Commission itself has decided they were entitled, and the
trade depression of 1930 has been the final blow in
the long process of undermining their stability and
security.
It was high time that something should be done
to retrieve their fortunes. Railroad consolidation
along safe and sound lines seems -to provide one
means of attaining the needed relief, and it is occasion for encouragement that Mr. Hoover should have
deemed it incumbent to interest himself in the subject. In the announcement which the President gave
out on Tuesday he stated that the negotiations for
bringing about the agreement between the representatives of the four great systems had been in
progress for some weeks and were undertaken at his
suggestion "in the hope of effecting the consolidation policies declared by Congress in 1930," and
especially at this time, "as a contribution to the
recovery of business by enlarging opportunity for
employment and by increasing the financial stability
of all the railways, and particularly some of the
weaker roads." The President pointed out that the
Transportation Act passed by Congress in 1920 provides for a consolidation of railways into a limited
number of strong systems in order to maintain
broader competition, more adequate service, simplification of rate structure, lower operating cost, and
in the long run lower rates to the public.
But all efforts to bring about the consolidations
deemed so essential have proved abortive in the 10
years that have elapsed since the Transportation
Act was put upon the statute books in 1920. The
President states one of the ill effects that have followed when he says: "These uncertainties and delays over nearly 10 years have seriously retarded development of the railways and have prevented a
desirable growth in many directions, and have
diminished their ability to compete with other forms
of transportation. Such questions as electrification,
linking up of different railroads, development of
terminals, and many other major improvements
have been retarded because of uncertainty with respect to the position which particular roads are to
occupy in the permanent grouping."
All these various drawbacks and hindrances the
President would remove, and he feels that one step
in that direction would be to facilitate the work of
railway consolidation. And this he desires, as stated
in the paragraph further above, "as a contribution
to the recovery of business." Surely he ought to be
encouraged in moves of that character, since they
are constructive efforts along right lines.
The annual report of the Comptroller of the Currency was submitted to Congress the present week,
and we give long extracts from it on subsequent
pages. Its chief feature is the Comptroller's recommendations regarding branch banking. The Comptroller's recommendations are along the same lines
as those previously made by him. He is in favor of
branch banking within so-called trade areas, and he
recommends that a committee composed of the Secretary of the Treasury, the Governor of the Federal
JAN. 3 1931.]
FINANCIAL CHRONICLE
_3
Reserve Board, and the Comptroller of the Currency branch bank in the paying localities, instead of rebe authorized to select the various cities which are maining at home to nourish local needs, would be
commercial centers in the United States and to map transferred out of the locality where they had origiout their trade areas. He would have the term nated,to the distant city. As for operating a branch
"trade area" defined to embrace the "regional flow bank at "a minimum of overhead expense" that is a
of business and trade to and from such cities, and fiction of the imagination. If a manager was sent
he asks that State boundary lines be not considered at all to the branch,instead of its being left in charge
in determining the territorial limits thereof." Na- of a few clerks, acting on instructions from the head
tional banks situated in such cities would be per- office, he would be a high-priced man, and, as such,
mitted, with the approval of the Comptroller of the add to the difficulty of operating the branch at a
Currency, to establish branches within the limits of profit. In the case of the unit bank,, on the other
such regional trade areas. The paid-in capital stock hand, controlled by men who have grown up in the
of such a National bank would have to be not less community and have no extravagant notions of pay,
than $1,000,000, and the ratio of capital and surplus and often work for very meager pay,even in the case
to deposits would have to be maintained at not less of the President and the Cashier, the payroll item
than one to 10.
would be in proper proportion to the size of the
This is all well enough, but nothing that the institution. Hence, a wisely managed unit bank
Comptroller now says (which is mainly an elabora- could often be operated with success where the
tion of what he has previously said) removes the branch bank of a large city bank could not be run
objections to branch banking, nor invalidates the except at a loss.
arguments in favor of the single or unit bank. In
recent months bank failures have been occurring
The member banks of the Federal Reserve System
with startling frequency all over the United States, substantially reduced their borrowings at the Reand while the failures of small banks have been serve institutions the present week, after the heavy
especially numerous yet these failures have not increase in such borrowings during other recent
been confined to the small institutions but have weeks. Taking the discount holdings of the 12 Reembraced some very large institutions. Here in serve institutions as the measure of this borrowing,
New York we have had the Bank of United States we find that the total of these discounts, after havand the Chelsea Bank & Trust Co., and in Phila- ing increased uninterruptedly week by week since
delphia we have had the Bankers' Trust Co. and the Nov. 19, and thus raised to $448,349,000 Dec. 24
Aldine Trust Co. As it happens, these have all had from $191,657,000 Nov. 12, dropped back the present
branch banks, the Bank of United States having had week (the week ending Wednesday evening, Dec. 31)
no less than 61 branches. We have always felt that to $251,398,000. However, the Federal Reserve
branch banks in a large city belonged in a different authorities offset this diminution in borrowing by
category from branch banks outside of the city, but enlarging their holdings of Government bonds and
recent experience here suggests that opinions in that bankers' acceptances almost to the full amount, the
respect must be revised, and that branch banks, even purpose evidently being to keep the volume
of Rewithin a city, are at times of crises an element of serve credit outstanding at the high
level previously
weakness rather than a citadel of strength, since reached. The holdings of acceptances, it may be
they simply provide additional points of attack by recalled, had been allowed to increase from
$176,frightened depositors.
106,000 Nov. 26 to $259,837,000 Dec. 24; this week
One argument that the Comptroller makes very they were further raised to $963,844,000. There
have
effectively against group banking applies, it seems been further additions, too, to the holdings of United
to us, with equal force to branch banking. He says: States Government securities,
the total of these hay,"My observation has been that group banking, in- ing been enlarged during the
week from $641,676,000
stead of alleviating the rural banking situation, has to $726,467,000.
as ,a rule taken over only the stronger local banks
The magnitude of these holdings of Government
in prosperous communities, leaving the weaker in- securities should not escape
notice; in particular, it
stitutions struggling for a meager existence. Fail- should be noted that
the amount now is well above
ures of these weaker banks have left many communi- $700,000,000. On Nov. 26 the
amount of these holdties wholly without local banking facilities, which, ings of Government securities
was no more than
however, could readily be supplied by branches of $595,634,000, and on Dec.31
last year they were only
the larger city banks, with but a minimum of over- $510,587,000
.
•
head expense to the latter institution." It strikes us
The story of this week's changes in the condition
that this states the argument against branch bank- of the
Federal Reserve Banks hence is that member
ing in the particular referred to in a nutshell. Large bank
borrowings were reduced in amount of $196,banks are not going to establish branch banks in
951,060,of which reduction $79,588,600 occurred here
non-paying sections or communities. They are not at the
Federal Reserve Bank of New York. It is not
going to operate branches which instead of yielding open
to question, either, that this reduction was in
a profit result in a loss. If they did they would close accord
with the falling off in prevailing needs.
themselves quickly get into trouble. We may depend This is
plainly evident from the fact that call loan
upon it that branch banks would be established only rates on the
Stock Exchange, which on Monday (on
where they paid their way.
preparations for the month-end settlements and the
These branch banks, moreover, would be directed heavy 1st of
January interest and dividend disbursein most cases from the head office, many hundred ments)
touched 4%, were back again yesterday to
miles away,and they would be directed by managers 1/
1
2%. As against the reduction, however, of $196,who would know little of local needs and require- 951,000 in
borrowing by the member banks, the total
ments, and would be governed by general rules and of acceptances
was increased during the week in
regulations emanating from the head office. More- amount of $104,007,000, and there
was a further inover, the probabilities are that the resources of the crease of $87,791,000 in
the holdings of Government
4
FINANCIAL CHRONICLE
[VoL. 132.
Wednesday, and on Friday (after the New Year
2%. There was
1
holiday) ranged from 3% to 1/
some downward reaction in prices at the close of
Tuesday, but the recovery on the whole was well
sustained. The market gained further strength on
Wednesday after the upward spurt on Tuesday,
when it appeared that President Hoover had been
the prime mover in getting the railroad managers
to lay their difficulties aside and reach a common
accord, the purpose being to insure business recovery. It was noticeable, however, that the general
market responded more readily to the advancing
tendencies than did the railroad list, and unquestionably there were sales to realize profit after the
two days' advance, and also so as to close up accounts in view of the New Year holiday. On Friday,
after the holiday, the rise in prices continued and
extended likewise to the bond market. The copper
•stocks have been a strong feature all through the ,
week, even during the early part, when the market
was so extremely depressed, the strong tone being
due to the higher price of the metal. The steel
shares have also most of the time resisted selling
pressure, notwithstanding the poor accounts regarding the condition of the steel trade. The proposition
submitted by Samuel Untermyer for the general consolidation of all the local traction properties, while
keeping the prices of the securities of these properties firm, did not serve to bring any further advances of consequence in the properties themselves.
Trading on the Stock Exchange has been only
moderate in volume, the holiday season contributing
The stock market this week, after a further down- to this. At the half-day session on Saturday the
ward plunge on Saturday and Monday, took a sharp sales were 1,394,722 shares; on Monday they were
turn for the better on Tuesday and Wednesday, the 2,788,820 shares; on Tuesday, 3,431,115 shares; on
closing days of the year. The transformation was Wednesday, 1,935,330 shares; Thursday was New
occasioned by the news which came after the cl, se Year's Day; on Friday they were 2,031,350 shares.
of business on Monday that the Eastern trunk lines, On the New York Curb Exchange the sales last Satacting on the initiative and inspiration of President urday were 467,300 shares; on Monday, 679,600
Hoover, had reached an agreement for parcelling shares; on Tuesday, 1;117,700 shares; on Wednesout the railroad lines in their territory among the day, 579,300 shares, and on Friday, 444,600 shares.
As compared with Friday of last week, prices
existing four great trunk systems, namely, the New
York Central, the Pennsylvania, the Baltimore & quite generally higher as a result of the recovery the
Ohio, and the Nickel Plate-Chesapeake & Ohio, and latter part of the week. General Electric closed
that the establishment of a fifth trunk line system, yesterday at 45% against 42% on Friday of last
2;
1
2 against 13/
1
made up of the Wabash, the Lehigh Valley, and the week; Warner Bros. Pictures at 14/
Corp.
United
42
at
against
Light
&
news
Power
This
abandoned.
been
Elec.
had
Line
37½;
Seaboard Ail
2; Brooklyn Union Gas at
1
2 against 15/
1
came suddenly and unexpectedly and had the effect at 18/
2; American Water Works at
1
2 against 101/
1
of frightening short sellers, who, accordingly, under- 105/
4 against 52; North American at 67 against
took to cover their outstanding short commitments, 593
2; Stand1
2; Pacific Gas & Elec. at 48 against 44/
1
with the result of producing sharp recoveries in the 60/
Consolidated
;
2
1
/
57
leading railroad shares, the rise in these, in turn, ard Gas & Elec. at 62 against
causing an advance in the general market. Before Gas- of N. Y. at 86 against 813%; Columbia Gas &
2; International Harvester
1
the upward turn occurred, however, many railroad Elec. at 36% against 33/
I. Case Threshing Machine
J.
;
2
1
/
45
against
50%
year.
at
the
for
stocks touched new low figures
4
3
2
1
Sears,
Roebuek & Co. at 47/
86;
93
against
at
further
the
for
assigned
Various reasons were
2
1
/
17
&
at
Co.
Ward
437
Montgomery
8;
/
same
against
being
the
these
of
one
bad break on Monday,
52%;
Safe2
1
/
57
against
at
%;
153
against
Woolworth
an
as
explanasuggested
frequently
as has been so
2 against 41%; Western Union
1
tion in the past, whenever the market has experi- way Stores at 42/
134
at
2
1
/
Telegraph
against 124; American Tel. &
sellthat
extensive
namely,
relapse,
serious
enced a
21
ing was taking place in order to establish losses in Tel. at 181 against 174%; Int. Tel. & Tel. at
2;
/
1091
against
income tax returns for the year. An additional against 19%; American Can at 113%
against
2
1
/
65
at
States
Industrial Alcohol
unsettling influence on Monday was the rise in the United
8 against 15; Shat2% to 55; Commercial Solvents at 161/
1
call loan rate on the Stock Exchange from 2/
; Corn Products at
2
1
/
21
at
Co.
23%
&
against
tuck
matter,
4%,but this was soon seen to be a temporary
Graphophone at
Columbia
against
and
2
1
/
80
69%,
by
chiefly
out-ofdue to the large calling of loans,
8.
against
2
1
/
8
window
in
dressing,
town banks, who were indulging
8
/
Allied Chemical & Dye closed yesterday at 1767
for the purpose of showing a strong liquid position
in their statements for the end of the year. The rate against 178 on Friday of last week; E. I. du Pont
dropped back to 3/
2% on Tuesday, and to 3% on de Nemours at 89% against 85; National Cash Reg1
securities and $610,000 further increase, also, in the
holdings of other securities. The result is that the
aggregate of Reserve credit outstanding, as measured by the holdings of bills and securities, after
having been increased week by week from $985,380,000 Nov. 19 to $1,356,395,000 on Dec. 24, stands
the present week only slightly less, namely, $1,351,852,000. The volume of Reserve notes outstanding,
however, was substantially reduced during the week
(probably through the return of holiday money to
the banks), having decreased from $1,721,897,000
Dec. 24 to $1,663,538,000 Dec. 31. This latter figure
nevertheless is far in excess of the amount of notes
in circulation on Nov. 5; the total then was nearly
$300,000,000 less, or only $1,366,554,000.
Brokers' loans this week show very little change.
The total for this week at $1,926,000,000 compares
with $1,920,000,000 a week ago. In other words, the
total, after having kept steadily shrinking for 13
consecutive weeks, during which the amount of these
loans was reduced in the sum of $1,302,000,000, the
grand aggregate falling from $3,222,000,000 Sept. 24
to $1,920,000,000 Dec. 24, the present week records
the quite insignificant increase of $6,000,000. Loans
made by the reporting member banks in New York
City for their own account increased during the
week from $1,262,000,000 to $1,321,000,000, while
loans made for account of out-of-town banks were
further reduced from $294,000,000 to $235,000,000,
and loans "for account of others" moved up slightly,
that is from $363,000,000 to $370,000,000.
• JAN. 3 1931.]
FINANCIA L CHRONICLE
later at 3014 against 30; International Nickel at
15% against 14%; Timken Roller Bearing at 47
against 421/8; Mack Trucks at 383
4 against 34%;
Yellow Truck & Coach at 10% against 91/8; Johns4; Gillette Safety Razor
Manville at 57% against 531/
at 22% against 18%; National Dairy Products at
397
/8 against 375
/
8; National Bellas Hess at 31/4
against 4; Associated Dry Goods at 23% against
2014; Texas Gulf Sulphur at 47% against 451/4;
American Foreign Power at 301/
4 against 2714;
General American Tank Car at 59% against 55%;
Air Reduction at 101% against 951/
4; United Gas
Improvement at 29% against 26, and Columbian
Carbon at 79 against 73%.
The steel shares are quite substantially higher.
U. S. Steel closed yesterday at 142 against 137% on
Friday of last week; Bethlehem Steel at 527
/
8 against
487
/8; Vanadium at 54 against 51%, and Republic
Iron & Steel at 1314 against 11. The motor stocks
have moved up with the general list. General Motors closed yesterday at 37% against 34% on Friday of last week; Chrysler at 18 against 16%; Nash
Motors at 31 against 26; Auburn Auto at 110%
against 9414;Packard Motor Car at 9% against 8%;
Hudson Motor Car at 25% against 22%, and Hupp
Motors at 934 against 8. The rubber stocks have
moved irregularly. Goodyear Rubber & Tire closed
yesterday at 457
/8 against 47% on Friday of last
week; United States Rubber at 12% against 12%,
and the preferred at 225/s against 22.
The railroad list has, of course, shown special
strength as a result of the week's developments in
the railroad world. Pennsylvania RR. closed yesterday at 581% against 56% on Friday of last week;
Erie RR. at 29% against 25%; New York Central
at 117% against 112%; Baltimore & Ohio at 717
/8
against 66; New Haven at 80 against 717/8; Union
Pacific at 188 against 176%; Southern Pacific at
96 against 90; Missouri-Kansas-Texas at 20%
against 16; St. Louis-San Francisco at 43 against
423
/
4; Southern Railway at 48% ex-div. against
475
/
8; Rock Island at 49% against 47; Chesapeake &
Ohio at 41% against 38; Northern Pacific at 50%
against 48, and Great Northern at 61% against 59.
The oil stocks have shared in the general recovery.
Standard Oil of N. J. closed yesterday at 487
/8
against 46%; Standard Oil of Calif. at 47 against
44%; Simms Petroleum at 7% against 71/
8 bid;
Skelly Oil at 107
/8 against 10%; Atlantic Refining
at 20% against 17%; Texas Corp. at 33% against
29%;Pan American B at 32 against 33%; Richfield
Oil at 5% against 5%; Phillips Petroleum at 15
against 13%; Standard Oil of N. Y. at 237
/
8 against
211/
8, and Pure Oil at 9% against 8%.
The copper stocks, as already noted, have shown
special strength all through the week. Anaconda
Copper closed yesterday at 32 against 28 on Friday
of last week; Kennecott Copper at 241/
8 against
223
%; Calumet & Hecla at 8% against 8%; Calumet
& Arizona at 38 against 34; Granby Consolidated
Copper at 16% against 16%; American Smelting &
Refining at 42% against 38%,and U. S. Smelting &
Refining at 19 against 20.
Stock prices moved irregularly this week on all the
exchanges of the larger European centres, with business on a' very moderate scale owing to the further
interruption for the holidays. The prolonged closing
at London, Paris and Berlin for the Christmas holidays, which extended over the latter half of last week,
5
was followed by three quiet sessions this week as the
year end approached. The traditional reviews of the
old year and forecasts for the new were in evidence,
but as might be expected they were much subdued
in tone on this occasion. Signs of recovery in business are still woefully lacking in all countries of
Europe and the few predictions that were made were
to the effect that a considerable further period is
likely to elapse before widespread gains are probable.
There was again some conjecture in Europe this week
regarding the lowere i rediscount rate at New York,
with opinion general that this action may produce
mildly favorable results. The small expected benefits
would only appear, it was thought, if the Bank of
France reduced its fate as a forerunner to reductions
elsewhere on the Continent. As it happened the
Bank of France yesterday did reduce its rate from
23/2 to 2%.
Mild cheerfulness on this account was offset, however, by looming labor difficulties in important
industries of several countries. Coal mining and
textile trades are affected in Britain, while difficulties
are impending in the Ruhr mining area of Germany
as well. A strike involving 150,000 miners was
started Jan. 1 in the South Wales coal fields owing to
further disputes regarding the new mines act, which
fixes a legal maximum working day. of 73/2 hours.
Necessary adjustments for a "spread-over" in accordance with technical mining requirements were denied
by the miners' union after some discussion and the
walk-out followed notwithstanding attempts at
mediation by officials of the Labor Government. A
strike of a few days duration involving 92,000 miners,
was called in the Scottish fields on the same grounds
early in December. Efforts are being made to prevent
the more extensive present strike from spreading to
other fields. A stoppage of similar magnitude
impends next week in the Lancashire textile districts,
with the dispute in this industry centring around a
proposal of the mill owners for increasing the number
of looms to be tended by each weaver. In the Ruhr
mining district of Germany negotiations regarding
the wages of 300,000 men broke down this week and
the employers announced a lock-out, to take effect
Jan. 15.
Conditions were dull on the London Stock Exchange at the opening last Monday, owing to less
favorable advices from New York and to slow but
continuous year-end liquidation. A drab tone was
maintained" through almost all the session, with
slight improvement finally apparent toward the close.
British Government funds were rather firmer than
the rest of the market. Imperial Chemical and
International Nickel shares were the points of chief
interest in the session, owing to the death of the wellknown British industrialist, Lord Melchett, who had
extensive interests in both companies. Imperial
Chemical eased markedly, but recovered toward the
close, while a substantial recession also was registered
in International Nickel. An improved tendency
prevailed in Tuesday's session, largely as a result of
better reports from the United States. International
issues strengthened and British industrials also
tended upward. Exchange moved against London
and in favor of Paris, this occasioning slight recessions in British funds. The shipping section was
unaffected by announcements that the Royal Mail
and White Star companies would omit dividends
on
their respective preference stock issues, as
this
development was expected. The London market
6
FINANCIAL CHRONICLE
closed the year with a cheerful session Wednesday.
A bright tone in the industrial list followed the
receipt of better news from New York, while British
funds advanced as the exchange trend became favorable. International stocks were more active than in
former sessions and some good gains were recorded.
Trading was resumed at London yesterday in quiet
fashion, with many brokers absent. Prices varied
but little.
Dealings on the Paris Bourse were resumed Monday in an atmosphere of depression and the entire
list was weak, with prices in some instances falling
to new low levels for the movement. Lower dividends by the Bank of France, in contrast to the
steady increase of recent years, were partially
accountable for the pessimism. A partial recovery
was staged just before the close, but most stocks
showed a net loss for the day. A firm opening
followed on the Bourse Tuesday and parts of the
initial gains were maintained, notwithstanding further
irregularity in the late trading of the session. The
hesitant improvement was the first sign of a better
tone in 10 days on the Bourse. The year-end liquidation which caused large losses throughout the list
finally appeared to be dwindling and short covering
added to the gains. The last session of 1930 was
marked by several quick changes. After early firmness the market turned soft under additional liquidation, and the losses were heavy in some instances.
Just before the close, however, improvement again
set in and parts of the losses were recovered. The
price trend was irregular on the Bourse yesterday.
The Berlin Boerse was uneven at the opening Monday, with spirited advances in a number of issues
slowly coming to a halt and turning into a final
decline. Selling from Amsterdam was reported as
one reason for the downturn. The early gains in
electrical and brewery stocks were wiped out, and
in most sections of the list losses were registered.
Liquidation by domestic circles was heavy at the
opening Tuesday, and substantial losses appeared in
consequence. The trend was again reversed however, and the list recovered toward the close. Electrical stocks in general were slightly improved, but
in most other departments the early losses were not
fully compensated. A firm tendency marked the
closing session of the year, with purchases by the
Berlin banks an important feature of the dealings.
The gains were registered chiefly in the first hour,
but they were maintained in the subsequent dealings
and almost the entire list closed higher for the day.
An unusually heavy volume of buying appeared in
the fixed-income section, dispatches said, and prices
of high-grade issues advanced sharply. The improved tone was continued in yesterday's dealings at
Berlin.
A proclamation declaring the London naval limitation treaty in full effect was issued by President
Hoover in Washington Thursday,in accordance with
the requirements of United States law. For all practical purposes the treaty has been in force for some
months, and the naval programs of the United States,
Britain and Japan have all been modified in accord
with its terms. In order to make the accord legally
binding on this country, however, a Presidential
proclamation was necessary and this in turn was
delayed by the lack of ratification by the Irish Free
State Parliament, which only recently resumed its
sessions. The instrument of ratification by the Irish
For,. 122.
Free State was deposited in London on the last day
of 1930 and the American proclamation,reciting that
all formal requirements had been met, was promptly
issued. It is stipulated in the proclamation that
the treaty is subject to no secret understandings,this
condition having been imposed by the United States
Senate when that body approved the pact. President
Hoover recited the respective ratifications of the
United States, the British Government, the British
Dominions and the Empire of Japan, and called
upon the people of the United States to observe the
terms of the agreement completely and in good faith.
The pact which was signed at London on April 22
1930, and approved by the Senate July 21 1930, is
thus in force until its expiration on Dec. 31 1936.
Secretary of State Henry L. Stimson, commenting
on the Presidential proclamation, said: "This happy
augury for peace and this example of the limitation
and reduction of armament by agreement will, I am
convinced, serve to stimulate further peaceful endeavors during the coining year. The proclamation
of the treaty for the renunciation of war in 1929,
and of the naval treaty on the first day of 1931,1 mark
the completion of two achievements which, more
than any others that I know, indicate the development of humane understanding as the guide of international policy."
The need.for peace in the world was emphasized
in statements issued on New Year's Day by President Paul van Hindenburg of Germany and Premier
Benito Mussolini of Italy. New Year's formalities
at the German White House prompted the remarks
of the Reich President, while those of the Italian
Premier were broadcast throughout the United
States and especially addressed to the people of this
country. In the task of promoting world peace,
Germany is determined to have an active hand,
President von Hindenburg said. He recalled the
evacuation of the Rhineland last year and touched
on other steps, chiefly related to reparations settlements, which have ameliorated international friction. "The German people eagerly anticipates," he
said,"that international collaboration in the coming
year will spare it further painful disappointments.
The reconciliation of the opposing interests which
are now everywhere menacing the political, social
and economic destinies of nations cannot be achieved
through the efforts of individual countries, but demands world-encompassing co-operation." Premier
Mussolini took sharp issue in his address with the
opinion, prevalent in some quarters, that Italian ,
Fascism is a potential menace to peace. "I should
like to contradict many rumors spread abroad on the
attitude taken by Fascism and the danger it is supposed to represent for the peace of the world," he
said. "Such accusations are groundless. Neither
I nor my Government nor the Italian people desire
to bring about war. Italy—let me repeat it—never
will take the initiative in starting a war. Italy
needs peace. Fascism desires to secure for the
Italian people, in co-operation with all other peoples
of the world, a future of prosperity and peace."
Views of several European governments regarding aspects of the Briand plan for a political and
economic federation of European States have been
expressed recently in notes to the League of Nations.
The federation project was linked with the League,
chiefly at British insistence, by the September As-
JAN. 3 1931.]
FINANCIAL CHRONICLE
sembly meeting, and a special commission was appointed to investigate all possibilities of the plan.
Questionnaires were sent to all European governments by the League some time ago in the attempt
to determine a method of procedure at the meeting
of the commission, which is to be held Jan. 16. Belgium made the first reply to the query, the Brussels
Government urging a study of European co-operation on the transmission of hydro-electric power
as a matter of primary concern. The note, made
public at Geneva late last week, also suggests a
convention to study treatment of foreign business
men. A brief note from the German Government,
received at Geneva last Tuesday, is understood to
emphasize the problems that will be raised for any
system a European union owing to the fact that
Russia and Turkey are not members of the League.
The Belgrade Government, which also replied Tuesday, is said to urge study of the agrarian problem.
In Paris a hopeful view is still taken of the European
federation plan, notwithstanding the slow progress
made so far. Foreign Minister Briand and his associates believe, a dispatch to the New York "Times"
states, that when the discussion is resumed later this
month many European governments will consider
the plan more favorably than was the case last September. "The urgency of economic union is
especially influencing the various governments," the
dispatch remarks. "They are discovering again
that Europe is in many respects an economic as well
as a geographic entity and that if there is to be
strength there must be co-operation."
A campaign in Belgium for abolition of the military agreement between that country and France is
causing some uneasiness in Paris, although in other
European capitals the move is regarded with sympathetic interest. Observers are inclined to see in the
campaign further signs of crumbling in the European political alignments occasioned by the World
War. The current movement, as reported in a Paris
dispatch of last Sunday to the New York "Times,"
is led by Emil Vandervelde, leader of a Socialist
group and Foreign Minister of Belgium when the
military agreement was signed in 1920. It is now
contended by M. Vandervelde that abolition of the
accord is "vitally important" as an aid to international disarmament and world peace. While
emphasizing the cordial relations between France
and Belgium, he declares that the Locarno agreement has altered the basis for the military alliance
and rendered it unnecessary. In a statement issued
at Brussels Monday, M. Vandervelde said there was
danger that Belgium, through the separate military
accord, might eventually become entangled against
her will in armed conflict. His attitude was vigorously attacked in the Belgian press by supporters
of the agreement, who declared its continuation
necessary for the protection of Belgian interests.
Public comment in France was much opposed to M.
Vandervelde's argument, the "Times" dispatch said.
"It is the first time since France built up her system
of alliances in Europe after the war that any member of the system has sought to regain independence," the report adds. One factor in the situation, it is pointed out, is the likelihood of a favorable
reaction to the campaign in England, where the military alliance of 1920 between France and Belgium
was never regarded with any enthusiasm.
7
The Round Table Conference on India, which
began its sessions in London on Nov.12, was resumed
last Monday after a short suspension for the Christmas holidays. There was again an almost complete
absence of progress this week and restlessness was
apparent both in the British and the various Indian
delegations. Sir Bhupendra Nath Mitra and M. R.
Jayakar, two of the most influential members of
the conference,left London this week to resume their
duties in India, while many of the independent Indian princes as well as British Indian officials are
reported anxious to return to their stations. Agreement among the Indian delegations on the HinduMoslem religious dispute regarding representation
under the proposed new Constitution was sought by
Prime Minister MacDonald over the last week-end
in a series of conferences, but no advance has been
reported. In contrast with the disagreement among
the Indians themselves was a report from London,
Monday,to the effect that the members of the British
delegation, irrespective of party affiliations, were
in complete accord on the concessions that it is
considered can be made toward the Indian demands
for early Dominion status. Five subjects are to be
reserved in the projected Constitution, an Associated
Press dispatch said. These matters, to be dealt with
by the imperial authority, are defense, finance, foreign relations, relations with the native States, and
political charges. The dispute between the Hindu
and Moslem delegations on the question of minorities
representation in territories where either religious
group is dominant appeared to be echoed this week
in similar clashes among converts to the differe
nt
Christian sects, giving a suggestion, as one observer
put it, of "further disintegration" in the conference.
In India, meanwhile, the revolutionary campaign
took on added vigor, and it was found necessary late
last week to reimpose the repressive ordinances of
the spring of 1930. The revived ordinances will have
the effect of muzzling the press and of threatening
the instigators of non-payment of taxes, according
to a New Delhi dispatch of Dec. 26 to the New York
'Times." More spectacular than the non-violence
campaign of the Ghandists were the operations of
rebel bands in the Burmese jungles this week. The
rebels murdered Government officials and looted
and destroyed property, and a strong force of British
troops began operations against them this week.
Economic unrest, due to low prices and high taxes,
were said to be at the bottom of these manifestations.
Bandit activities in Nicaragua were resumed in
startling fashion Thursday, when a band of insurgents attacked a small body of United States
marines from ambush, killing eight of the marines
and wounding two. The marine patrol was repairing a telephone line between Ocotal and Apali, in
the Department of Neuva Segovia, when the surprise
attack occurred. They put up a valiant fight for
two hours, taking advantage of such cover as offered
itself, and continued the engagement until the whole
detachment was either killed or wounded. Among
the attackers, who made up a fairly large body, 11
deaths occurred, while at least four were wounded.
A larger patrol was quickly ordered out in pursuit
of the bandits, and the two wounded marines were
transported back to the base at Managua by airplane. A list of the American dead, given out by the
Marine Headquarters, follows: Sergeant Arthur M.
Palrang, Privates Irving P. Aron, Lambert Bush,
8
FINANCIAL CHBONICL
Edward Everett Elliott, Joseph Albert Harbaugh,
Frank Kosieradski, Richard J. Litz, and Joseph
Arthur McCarty. The wounded are Privates Frank
Austin Jackson and Mack Hutcherson. The bandits
were led, it is believed, by Miguel Ortez, who was a
lieutenant of Augustino Sandino in the widespread
bandit activities of 1927 and 1928, which followed
the civil war in Nicaragua. In the American intervention occasioned by the war more than 5,000
marines were sent to the Central American country,
and their main task was the suppression of banditry.
Such insurgent activities were never completely
wiped out in the wild and mountainous northern
part of the country, and brushes have been reported
between marines and bandits from time to time even
in the last few months. The present incident, however, is the most serious in almost two years. There
are now about 1,000 American marines in Nicaragua.
A sudden and brief revolutionary movement in
Panama early yesterday occasioned the overturn of
the Government and the resignation of President
Florencio Harmodio Arosemena, who took office
Oct. 1 1928, for a four-year term. The revolt was
engineered by Dr. Harmodio Arias, a prominent
lawyer without political affiliations. Armed
civilians under the direction of Dr. Arias carried
out the movement, a United Press report from
Panama City states, and the group was quickly successful in the sharp skirmish with loyal troops that
developed as the revolt was launched. The conflict
was marked by heavy machine gun fire and rifle
fire in the neighborhood of the presidential palace,
and nine persons are reported killed in the fighting.
Hartwell F. Ayers, an American newspaper correspondent, was caught in a cross-fire and fatally
wounded, but no other Americans were hurt. A
party of the insurgents gained access to the presidential palace after a short time and took President
Arosemena prisoner, causing collapse of the Government. At a conference with the revolutionary
leaders the resignations of the President and of Premier Daniel Ballen were announced, and Dr. Arias
was appointed Premier. The insurgent junta is thus
in full charge of the Government. This latest movement in the growing series of Latin American revolutions is said in dispatches to have grown out of
widespread political dissatisfaction with the Liberal party of the deposed President. The revolt was
organized and carried out by approximately 1,000
members of an association for civic improvement.
A small force of American soldiers was promptly
transferred from the Canal Zone for the protection
of the American Legation, but United States Minister Roy T. Davis announced that no further transfers would be requested unless disorders developed.
In Washington it was said yesterday that the United
States Government will not intervene unless the
need for such action to restore order is clearly established. The right to intervene exists, it was pointed
out, under the terms of the treaty of 1903, which provides specifically for the use of armed forces for the
safety or protection of the Panama Canal.
[vol.. 132.
reached by the State Department in Washington in
pursuance of the policy of the United States Government in being guided by the Central American treaty
of 1923, whereunder governments among the five
Central American signatory States are not to be
recognized if they come into power by a revolution
or a coup d'etat. "It appears to be the hope," a
Washington dispatch to the New York "Times" said,
"that General Orellana will eventually retire and
that a government will come in under conditions
that will permit the United States to extend recognition. This could be done if the Guatemalan Congress should provide for elections or some other
arrangement could be worked out which would provide a Constitutional government." The notification was followed Wednesday by another quick
change in the Government of Guatemala. General
Orellana resigned and Senor Jose Maria Reyna Andrade, a Liberal member of Congress, was appointed
Provisional President under circumstances which
point to the calling of special presidential elections.
General Lazaro Chacon, the elected President, who
delegated his duties to General Baudillo Palma on
Dec. 15, after suffering a paralytic stroke, also announced his formal resignation. The incident which
developed when the provisional government of General Palma was overthrown by General Orellana
thus appears to be on the way to early adjustment.
A misunderstanding on a short-term loan by a
New York banking syndicate to the municipality of
Buenos Aires is reported in dispatches from the
Argentine capital. More than a little feeling has
apparently been aroused in Argentina by the incident, as the Federal Government of the country
issued a decree Wednesday authorizing the necessary
repayment of the loan and at the same time excluding the Chatham Phenix National Bank & Trust Co.
of New York from further dealings with the Government. The municipality of Buenos Aires and the
national interventors in the Provinces were urged
to act in a similar sense. The loan, amounting to
$16,100,000, was arranged with the New York bankers last July, and the customary provisions for renewal on a mutually acceptable basis were included
in the loan contract in order to care for contingencies and make possible the anticipated funding of
the loan into long-term bonds. Owing to the series
of revolutions in South America and the consequent
decline in foreign bond prices at New York, renewal
of the loan was found inadvisable by the bankers and
notification to this effect was given the municipality. The national government intervened in the
matter late in December and agreed to repay the
loan in behalf of the municipality. A decree was
accordingly issued Wednesday and published Thursday authorizing the Bank of the Nation to utilize
gold conversion funds held abroad in completing the
transaction. Argentine gold deposited abroad is
understood to aggregate 30,000,000 gold pesos and
repayment of the loan is to be made from this store.
It is charged by the Government, according to reports to the New York "Times" and the United
Press, that the English version of the loan contract
Recognition of the provisional government set was purposely ambiguous. The Argentine Governup In Guatemala Dec. 16 by General Manuel Orel- ment also authorized the taking up of a £5,000,000
lana was formally denied by the United States Gov- credit placed in London with Baring Bros.
ernment Tuesday, and notification to this effect was
A new tariff schedule, designed equally to protect
promptly delivered by Sheldon Whitehouse, Amerindustries
and to produce revenue, was promulgated
decision
The
was
ican Minister to Guatemala City.
JAN. 3 1931.]
FINANCIAL CHRONICLE
9
in China by the Nanking Nationalist Government
reached in 1928 and it became operative in 1929, but
Monday, to take effect Jan. 1 1931. Although the the
Turkish Government announced early last year
new schedule was expected, the short notification
that the charges would prove too heavy for the
caused consternation among foreign merchants in budge
t.
China, particularly as goods in transit to China are
also to be subjected to the changed duties. Of the
The Bank of France yesterday lowered its dismore important American exports to Chica, cigar- count
rate from 2/
1
2%, the figure in effect since
ettes and automobiles will suffer most, it is indi- May 2,
to 2%. Other than this, there have been
cated. Import rates on cigarettes are increased no chang
es the present week in the discount rates
approximately 600 to 700%, and this is expected to of any of
the European central banks. Rates remain
kill the American, as well as the British and Russian at 6%
in Spain; at 5/
1
2% in Austria, Hungary, and
trade in cigarettes. Duties on passenger automo- Italy;
at 5% in [Germany; at 4% in Norway and
biles are increased 7/
1
2%, while the rate on motor Ireland; at 31/2% in Sweden and Denm
ark; at 3% in
trucks and buses is raised 2/
1
2%. Rates on other England and Holland, and at 2/
1
2
%
in
Belgium and
staple American exports are increased but slightly, Switzerlan
d. In the London open market discounts
and in some instances, such as kerosene, gasoline, for short
bills yesterday were 21/
4% against 23
/
8@
agricultural machinery, rails and locomotives, they 23
4% on Friday of last week, while three months
are reduced materially. Cotton piece goods are in- bills
were also 21/
4% against 2 5/16% on Friday of
creased but little, raw cotton is unchanged, and flour last
week. Money on call in London yesterday was
and wheat remain free. In the attempt to meet the 1%.
At Paris the open market rate has fallen from
requirements of modern commerce, the Chinese Gov- 2/
1
2% to 2%, but in Switzerland there has been an
ernment announced earlier in December that Likin advan
ce from 11/
4% to 1/
1
2%.
taxes would be abolished Jan. 1 1931. That this
move will meet with immediate success is unlikely,
The statement of the Bank of France for the week
since Likin taxes are collected at innumerable point
s ended Dec. 27, reveals a gain
in gold holdings of
in the interior on all transported goods, and frequently by elements not easily subjected to the con- 294,148,937 francs. Gold now aggregates 53,577,trol of the central Government. Although no imme- 608,974 francs, as compared with 41,668,420,261
diate menace to the Nanking Government is now francs at the corresponding week last year and 31,•iscernible, Communist bandits are increasing their 977,034,230 francs two years ago. An increase is
depredations in the Southern and Central sections, shown in credit balances abroad of 108,000,000 francs
and extensive military operations are said to have and a decrease in bills bought abroad of 24,000,000
been undertaken against them by President Chian francs. French commercial bills discounted records
g
Kai-shek. Perturbing also are reports of a Mosle a large gain, namely 1,161,000,000 francs. Notes in
m circulation expanded 1,067,000,
000 francs raising the
uprising in Kansu Province, where many thous
ands total of the item to 76,436,195
,445 francs, which
re said to have been slain.
compares with 68,570,168,395 francs last year and
Disaffection in the Smyrna area of Turkey, based 63,915,978,770 francs the year before. Advances
against securities declined and creditor current acn economic, political and religious groun
ds, caused counts gained 29,000,000
francs and 610,000,000
he proclamation of martial law in Smyrna
Province francs respectively. A compa
rison of the various
uesday, after a prolonged meeting of the Gover
n- items for the past three years is
given below:
ent heads at the capital, Angora. Reactionarie
s,
BANS OF FRANCE'S COMPARATIVE STATEMENT.
ho aimed at the restoration of the Calip
hate, are
Changes
Status as of
nderstood to have started disturbances at Menefor Week.
Dec. 27 1930. Dec. 28 1929. Dec. 29 1928,
Francs.
Francs.
en, near Smyrna, which resulted in four death Gold holdings_
Francs.
Francs.
_ _ _Inc. 294,148,937 53,577,608,974
s Credit
20,261 31,977,034,230
bals. abr'd_Inc. 108,000,000 6,791,167,374 41,668,4
ver the last week-el d. The populace of the
7,248,64
1,236
13,510,491,654
commercial
area French
bills discounted_Inc.1161,000,000 8,380,55
s said to consist largely of Turkish refugees
8,727 8,577,057,108 1,911,962,980
bought abr'd_Dee. 24,000,000 19,351,534,059 18,071,1
from Bills
agt. secure_ _Dec. 29.000,000 2,901,147,422 2,521,8899,824 19,139,647,967
rete and Greece who are notoriously fanatical. Adv.
6,719 2,223;117,669
Note circulation_ _Inc.1067,000,00
0 76,436,195,445 68,570.168,395 63,915,978,770
Creel. curr. accts._Inc. 610,000,000
24,323,267,039 19.588,210,547.19,231,290,708
he movement was not confined to this district, howver, and the Government took prompt steps to deal
The Bank of England statement for the week
ith the situation. In a report of Dec. 30
from ended Dec. 31 shows a loss
of £550,061 in gold holdstanbul to the New York "Times," it was indica
ted ings but as this was atten
ded by a contraction of
hat the movement is under control. In addition to
£10,875,000 in circulation, reserves, which fell off
he proclamation of martial law, special measu
res
ere taken for speedy military action. A law was £10,031,000 a week ago, this week rose £10,325,000.
uickly formulated giving the Ministry of Justic The Bank now holds £148,271,371 of gold in.comparie
traordinary powers to inflict quick punishment on son with £148,821,432 a week ago and £146,115,746
in the same week last year. Public deposits de'vilian offenders. Important also in
Turkish creased £3,704,000
while other deposits increased no
ffairs is a change in the Finance Ministry, effect
ed
ec. 26. Sarajoglt Shukru Bey resigned as Minis- less than £78,702,949. The latter consists of bankers
•r of Finance on account of illness and was replaced accounts and other accounts. The bulk of the inMustafa Abdulhalik Bey, formerly Minister of crease was in the former item which rose £76,232,104
from £56,217,226 a week ago to a total of £132,449,efence. Negotiations are proceeding, meanwhile,
330 now. A year ago the figure was £110,297,026.
tween the Government and the Ottoman Debt
Other accounts showed an increase of £2,470,845.
ouncil in Paris on the defaulted obligations of
The reserve ratio dropped from 37.56% last week to
urkey. A half-yearly installment of $5,000,000 was
29.08% the present week. At Dec. 31 1929 it was
e on this debt Nov. 25 last, but only one-third was
22.68
%. Loans on Government securities expanded
id, and the Debt Council thereupon refrained from
£29,2
85,00
0 and those on other securities £35,439,270.
• nding representatives to Angora to negotiate
on Other securities consist of "discounts and
advances"
bts. An agreement on the Turkish debt was
and "securities." The former rose £34,763,410 to a
1.0
FINANCIAL CHRONICLE
(von. 132.
A series of discount rate reductions in this country and abroad was announced in the past week,
following the similar action taken at New York
Dec. 23. The Federal Reserve Bank of Cleveland
was authorized last Saturday to lower its redis2% to 3%, while the Federal
1
count rate from 3/
was authorized Wednesday
of
Boston
Bank
Reserve
2%. Especial sig1
to lower its rate from 3% to 2/
nificance is believed to attach to a reduction from
2% to 2% in the Bank of France discount rate,
1
2/
announced yesterday. The discount rate of the
French central bank thus again is placed on the
same level with that of the Federal Reserve Bank
of New York. This incident affords ample ground
for the surmise that arrangements for discount rate
reductions were made at the conferences of banking
heads in Europe which were attended by Governor
George L. Harrison of the New York Reserve Bank.
With the year-end monetary stringency passed, yield
rates on bankers' bills were reduced 1/8 of 1% by
dealers yesterday. This action reflects the lowered
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1928.
1927.
1929.
1929.
1930.
5.
Jan.
.
c
e
D
4.
Jan.
2.
Jan.
31.
Dec.
buying rate for bills placed in effect last week by
31.
139,803,230
137,728,370
378,294,000
369,782,000
368.801,000
a
Federal Reserve Bank.
the
Circulation
6,581,000 12.350.000 22,336,000 13,617,917 11,526,613
Public deposits
168,603,558 147.819,829 122,047,000 142,730,261 141,057,054
Call
money rates fluctuated more widely this
Other deposits
132,449,330 110.297,026 64,018,000
Bankers accts
36,159,228 37,522,803 38.030,000
Other accounts
than
for some months. previously. Withdrawweek
81,021,247 81,658,855 62,836,000 48,293,992 36,097,634
Govt. securities
Other securities__ - 72,652.624 60,184,105 84,706,000 91,718,288 103,203,152 als by the banks amounted to about $100,000,000
Dint. & advances 48,962,458 42,170,602 47,745,000
23,890,188 18,013,503 16.962,000
Securities
Monday, owing to the large year-end requirements
Reserve notes & coin 39,469,000 36,332,000 35,034.000 34,324,877 31,327,357
151 380,637
Coln and bullion__ _148,271,371 146,115,746 153.329,533 152,303,247
for
funds. Call loan rates were marked upward in
21.95%
24.24%
20.53%
'
22.88%
22.52%
Prop. of res. to liab_
5%
434%
5%
434%
3%
Bank rate
2% to 4%. The rate Tuesday
1
session from 2/
the
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
further withdrawals
all
transactions,
for
2%
/
1926
31
1927
was
1928
1929
1930
Dec. 29.
Dec. 28.
Dec. 26.
Dec. 24,
Dec. 24.
$30,000,000 being reported. An easier tone apof
a 379,676,000 379,573,000 388,242,000 138,711,000 140,784,940
Circulation
10,285,000 8,829,000 12,969,000 14,561,638 11,632,266 peared Wednesday, and call loans dropped from
Public dePos1t9
89.905,609 108,837,470 107,002,000 123,975,164 131,342,517
Other deposits
2% to a rate of 3% for ne
1
renewal figure of 3/
Bankers accounts- 56,217,226 71,048,531 89,489,000
Other accounts_ _ _ 33,688,383 35.788,939 37,511,000
Governm't securities 51,736,247 67,123.855 67,296,000 48,678,992 34,167,539 loans, while in the unofficial "Street" market som
37,213,354 40,035,196 44,784,000 74,448,730 98,858,843
Other securities
2% late in the day. Cal
DLgct. & advances 14,199,048 22,300,076 25,931,000
deals were arranged at 21/
23,014,306 17,735.120 18,853,000
Securities
Reserve notes &coin 29,144,000 28,453,000 25,823.000 33,447,429 30,083,708 funds fell quickly yesterday from a renewal rate o
151,118,648
Coln and bullion_ 148,821,432 146,027,587 154,067,274 152,408,849
Proportion of reserve
2%, with late transaction
1
of 1/
21.04% 3% to a final figure
24.18%
21.52%
22.80%
29.08%
to liabilities
5%
454%
5%
3%
454%
Bank rate
in the "Street" market at 1%. Brokers' loans, a
a On Nov.29 1928 the fiduciary currency was amalgamated with Bank of England
Federal Reserve Bank of New Yor
note Issues adding at that time £234,199,000 to the amount of Bank of England reported by the
notes outstanding.
for the week ended Wednesday night, advance
first increase in 14 weeks
The statement of the Bank of Germany for the $6,000,000, this being the
for the week to Dec.2
movements
gold
of
report
The
third week of December showed a gain in note circulano exports. Ther
and
$5,297,000,
of
imports
shows
now
tion of 19,247,000 marks. Total circulation
in
the stock of gol
$8,497,000
of
increase
an
was
with
compares
which
stands at 4,275,312,000 marks,
account.
foreign
for
ear-marked
held
4,and
last
year
time
same
the
marks
4,579,047,000
481,522,000 marks two years ago. Other daily maDealing in detail with call loan rates on the Sto
turing obligations increased 149,972,000 marks and
other liabilities 1,619,000 marks. The asset side of Exchange from day to day, the renewal rate o
2%, but from this there was
1
the account records decreases in gold and bullion of Monday was 2/
in
for new loans, first to 3%, the
the
rate
advance
105,000 marks, in reserve in foreign currency of 14,to 4%. On Tuesday all loan
and
2
1
/
3
%,
to
finally
718,000 marks, in silver and other coin of 8,964,000
2
1
/
3
renewals. On Wednesda
%,
at
including
were
marks and in notes on other German banks of 1,637,2%,th
1
been effeeted at 3/
had
again
after
renewals
and
of
bills
in
exchange
000 marks. Increases appear
ha
On
after
3%.
renewals
Friday,
to
rate
dropped
9,854,of
in
advances
marks,
checks of 177,353,000
%.
T
2
1
/
1
fell
to
the
rate
3%,
at
put
through
been
marks,
of
9,055,000
assets
other
in
and
000 marks
has been without noteworth
while the items of deposits abroad and investments market for time money
is
There little or no demand for this cl
remain unchanged. Bullion now aggregates 2,215,- feature.
There has been no change in rates exce
loans.
of
597,000 marks, as compared with 2,264,664,000
that
with Monday the quotation for loa
beginning
marks last year and 2,729,283,000 marks the year
six months has been widened to 2
five
and
running
before. Below we furnish a comparison of the various
2
1
/
from
2
@3%
@2
4%, and the rate for loans ru
3
/
items for the past three years:
fling
four
months
2@234%. Quot
1
2% to 2/
1
from
2/
STATEMENT.
COMPARATIVE
REICHSBANK'S
Changesfor
2
1
4@2/
money,21/
/
now
are
2@21
4%
tions
30-day
for
23
1928.
22
Dec.
1929.
Dec.
1930.
23
Dec.
Week.
Retchsmarks. Retehtmasks. Reichsmarks.
Reichamarks.
2
1
/
2
on,
Assets—.
accommodati
105,000 2,215.597,000 2,264,684,000 2,729,283,000 for 60 days,and also for 90-day
Dec.
Gold and bullion
85,626.000
222,017,000 149,788,000
Of which depos'abed. Unchanged
s
five
and
for
538.148,000 405,377,000 158,224.000 2%% for four months, and 2%@3%
Rei've in torn curr_Dee. 14,718.000 1,908,875,000
2,568.710.000 1,993,514,000
Bilis of exch.& checks.Ine. 177,353,000 152.509,000
pap
commercial
prime
85,851,000 months. The demand for
96,858.000
Silver and other coln_Dec. 8,964.000
21,380,000
14,740.000
15,784,000
Notes on oth.Ger.bks.Dec. 1,637,000
38,377.000 in the open market was practically at a standst
51,999.000
91,284,000
Inc. 9,854.000
Advances
92,357.000
92,558,000
102,474,000
Unchanged
Investments
613,908,000
603.323,000
479,532,000
the early part of the week, but showed considerab
Inc. 9,055,000
Other assets
4,481,522,000
4.579,047,000
4,275,312,000
on Friday, when both supply a
improvement
Notes in circulation—tom 19.247,000
0th. daily mat. oblIg-lem. 149,972.000 451.279,000 448.354.000 496.473.000
Other liabilities
Inc. 1,819,000 381,270,000 196,524,000 287,066,000 demand were larger. Rates are unchanged, choi
total of £48,962,458. The increase in the latter
amounted to only £675,860. The discount rate is
unchanged at 3%. Below we show a comparison of
the different items for five years:
The Bank's statement for the week ended Dec. 24,
which we also furnish below, with comparisons for
previous years, was not issued until last Saturday, as
both Thursday and Friday of last week were holidays
in Great Britain, and it therefore did not appear in
our issue of last week. The various increases and
decreases were as follows: circulation, increased £7,536,000, bullion decreased £2,494,795 and reserves
£10,031,000; public deposits increased £3,761,000;
other deposits decreased £7,868,749; bankers accounts decreased £8,077,712; other accounts, increased £208,963; loans on Government securities decreased £2,150,000; those on other securities
increased £8,088,953; discounts and advances increased £8,857,927 and other securities decreased
£768,974.
JAN. 3 1931.]
FINANCIAL CHRONICLE
11
names of four to six months' maturity being quoted At
present sterling for
at 23
/
4@3%,while names less well known are offered quoted at a premium end of February delivery is
of about 1A over spot. A.
at 31/
4@31/270.
year ago for the first three weeks in January sterling
ruled at par or better and the same seasonal influThe market for prime bank acceptances has been ences
should operate to strengthen the tone of exvery quiet this week. Rates were unchanged until change
at present, although it seems hardly likely
late on Friday, when quotations were reduced 1/
8 of that the pound will show the same strength as it
1% in both the bid and asked columns for all maturi- did
last January. A little later, toward February
ties. The Reserve Banks further increased their and
March,bankers are inclined to look for a premium
holdings of acceptances this week from $259,837,000 on
sterling exchange. It is reported that substantial
to $363,844,000. Their holdings of acceptances for long
positions are frequent, and there is even disforeign correspondents increased from $432,327,000
cussion of the possibility of gold exports from New
to $439,288,000. The posted rates of the American
York to London in the weeks ahead.
Acceptance Council are now 17
/8% bid and 134%
The firming up of sterling on Friday of last week
asked for bills running 30 days, and also for 60 and
was attributed more to final preparations for year-end
90 days; 2% bid and 17
/8% asked for 120 days, and
ments than to any other influence, and as far
2/
1 8% bid and 2% asked for 150 days and 180 days. settle
as anyone can see, exchange rates have not acted
The Acceptance Council no longer gives the rates for
favorably for London as a consequence of the reduccall loans secured by acceptances. Open market
tion in the New York Federal Reserve Bank's rate
rates for acceptances were also on Friday reduced
of rediscount. The firming up of call money in New
1/8 of 1% on all maturities. The quotations are as York,
although felt to be temporary, was also an
follows:
advers
e
factor affecting exchange rates. Sterling
SPOT DELIVERYa
—180 Days—150 Days—
—120 Days— continues at a discount with respect to most of the
Bid. Asked.
Bid. Asked.
Bid. Asked. Continental
Prime eligible bills
currencies and France has again taken
214
2
214
2
2
134
—90 Days—
—60 Days—
—30 Days— gold heavily from the Bank of Englan
d Banking
Bid. Asked.
Bid. Asked.
Bid. Asked.
Prime eligible bills
114
111
opinion here, in London, and on the Continent seems
134
114
134
134
FOR DELIVERY WITHIN THIRTY DAYS.
inclined to the view that there will be no reduction in
Eligible member banks
214 bid
Eligible non-member banks
214 bid the Bank of England rate of rediscount or in the rates
Two of the Federal Reserve Banks, following last of other central banks as a consequence of the New
week's action of the New York Reserve Bank, have York reserve bank's rediscount rate reduction, and
this week reduced their rediscount rates. They are the action of the Bank of France yesterday in also
the Federal Reserve Bank of Cleveland, which on reducing its rate.
The Bank of England's gold holdings have now
Dec. 27 reduced its rate from 31/2% to 3%,effective
fallen
below the £150,000,000 Cunliffe's minimum
Dec. 29, and the Federal Reserve Bank of Boston,
for
the
first time since Jan. 9 1929. This fact would
which on Dec.31 lowered its rate from 3% to 21/
2%, seem to preclude the possibility
of a reduction in the
effective Jan. 2. There have been no other changes
this week in the rediscount rates of the Federal official Bank of England rediscount rate. The Bank
Reserve Banks. The following is the schedule of of England statement for the week ending Dec. 31
rates now in effect for the various classes of paper showed a reduction in gold holdings of £550,061,
bringing the total down to £148,271,371, which comat the different Reserve Banks:
pares with £146,115,746 in the year-end statement of
DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL
CLASSES
the Bank in 1929. On Monday the Bank of England
AND MATURITIES OF ELIGIBLE PAPER.
bought £20 foreign gold coin, sold £356,809 in gold
Rate in Effect
Date
Presiona
Federal Reser*p Bank.
on Jan. 2.
Established.
Rate.
bars, and exported £7,000 in sovereigns. On TuesBoston
234
Jan. 2 1931
3
day the Bank sold £276,266 in gold bars and exported
New York
2
Dec. 24 1930
214
Philadelphia
334
July
3 1930
4
Cleveland
£2,000
in sovereigns. Of the £530,000 gold which
8
Dec. 29 1930
314
Richmond
1334
July 18 1930
4
Atlanta
arrived
834
the London open marketfrom South Africa,
in
July 12 1930
4
Chicago
314
June 21 1930
.
4
St. Louis
£503,000 was bought for forward delivery for French
814
Aug. 7 1930
4
Minneapolis
315
Sept. 12 1930
4
account,leaving 16 bars available in the open market,
Kansas City
314
Aug. 15 1930
4
Dallas
314
Sept.
9 1930
which were absorbed at a price of 85s. 13/
4
Ran Francisco
334
2d. YesterAux. 8 1930
4
day the Bank released £200,000 sovereigns,
sold
Sterling exchange continues dull and featureless, £456,451 gold bars and exported £12,000 sovereigns.
At the Port of New York the gold movement for
with trading practically at a standstill since Christthe
period Dec. 25-Dec. 31, as reported by the Federa
l
mas, a usual characteristic of the market in the Reserve
Bank of New
last week of December', as all major movements of $5,748,000, of which York, consisted of imports of
4,000,000
funds for purposes of year-end settlements came to $1,650,000 from Cuba, and came from Canada,
$98,000 chiefly from
an end in the few days just prior to Dec. 25. The other Latin American countries. There were no gold
range this week has been from 4.85 7-32 to 4.85 23-32 exports. Gold earmarked for foreign account infor bankers' sight bills, compared with 4.853A to creased $4,000,000 during the week. In tabular
4.85 11-16 last week. The range for cable transfers form the gold movement at the Port of New York
for the period
has been from 4.85 17-32 to 4.8578, compared with Federal Reserv Dec. 25-Dec. 31, as reported by the
e Bank of New York, was as follows:
4.85/8 to 4.854
7 a week ago. It is generally be- GOLD MOVEM
ENT AT NEW YORK,DEC.26-DEC.31,INCLUS
IVE.
'eyed that as a seasonal matter the dulness in trading
Imports.
Exports.
$4,000,00
0
from
ill continue for the next few weeks, with sterling rui- 1,650,000 from Canada.
Cuba.
None.
98,000 chiefly from other Latin
ng around present levels. As a rule, however,foreign
American countries.
xchange traders are inclined.to take long positions
n foreign exchange for the first few months of the $5,748,000 total.
Net Change in Gold Earmarked for Foreign Account.
ear. Around the 15th of January sterling exIncrease, $4,000,000.
hange generally firms up as a seasonal trend, a4 the
On Wednesday $121,000 of gold was
received in
eriod of import for the United States then begins. San Francisco from
China.
12
rINANCIAL CHRONICLE
[VOL. 132.
Italian lire, while dull and irregular in keeping with
the dull movement of all foreign exchange markets,
is nevertheless ruling slightly easier.. According to
Romolo Angelone, commercial attache of the Italian
Embassy at Washington, the Italian Government is
watching the exchange situation closely. On the
whole, lire show a rather firm trend in the international money markets. Mr. Angelone in a recent
statement said: "It is to be remembered that
almost all the Italian indebtedness toward foreign
markets is of a long-term nature subject to wellregulated funding plans. This eliminates any danger
arising from repayment demand of an exceptional
and urgent nature."
The London check rate on Paris closed at 123.71
on Friday of this week, compared with 123.60 on
Friday of last week. In New York sight bills on the
2, against 3.93; cable
French centre finished at 3.923/
8, against 3.93/, and commercial
/
transfers at 3.925
,. Antwerp belgas
sight bills at 3.9234, against 3.925
% for checks and at 13.963/ for
finished at 13.953
cable transfers, against 13.973/i and 13.9834. Final
quotations for Berlin marks were 23.803/2for bankers'
sight bills and 23.813/i for cable transfers, in comparison with 23.8234 and 23.833. Italian lire
closed at 5.233/i for bankers' sight bills and at
5.23 11-16 for cable transfers, against 5.23 13-16 and
5.23 15-16. Austrian schillings closed at 14.073/2,
against 14.07; exchange on Czechoslovakia at 2.9634,
. Exchange on the Continental countries is easier, a against 2.96%; on Bucharest at 0.5934, against
Condition which is regarded as a seasonal matter due 0.5934; on Poland at 11.20, against 11.20, and on
%. Greek exchange
to year-end influences. The Bank of France reduced Finland at 2.51%, against 2.513
bills and at 1-293/i
sight
bankers'
2%.
for
to
at
closed 1.2934
its rediscount rate yesterday from 23/2%
and 1.29.
against
al
units,
cable
the
Continent
of
1.2934
transfers,
for
the
firmest
French francs are
lly
strong
the
exceptiona
from
be
expected
as might
Exchange on the countries neutral during the war
position of the Bank of France. The French bank
continues to support sterling exchange. Were it not is easier and dull throughout. Swiss francs and
for these operations, it is believed, that sterling Holland guilders have fallen sharply, more as a
would be much lower with respect to francs. The reaction from year-end operations than from any
Bank of•Fra,nce statement for the week ended Dec. 27 other cause. There have not been sufficient transac'shows an increase in gold holdings of 294,148,937 tions in the market to afford a clear index of the trend
francs, the total standing at record high of 53,577,- of the neutral exchanges. The Scandinavians are
b08,974 francs, which compares with 41,668,420,261 weaker. In Wednesday's trading Swedish crowns
28,935,000,000 francs went below par for the first time in 1930. Since
francs
• a. year• ago and with
_
of the Bank following early in September 1929, just before the New York
statement
first
the
in
Teported
1928. According to stock, market crash, Swedish crowns had been at a
June
in
franc
the
of
ion
stabilizat
in order to hinder premium over dollars. The neutral exchanges are
France
of
Bank
the
s
dispatche
i'aris
tepatriation of capital by the Paris wivate, banks expected to rule at comparatively,easy rates until
and to cut, short the gold imports has offered special toward February. Spanish pesetas have -fluctuated
facilities to these institutions, consisting of the loan rather widely. The peseta is the Weakest.unit in the
bf Ats. own funds according to their requirements, neutral list and the wide fluctuations are due to
sUeh loans being guaranteed by the private bank uncertainty in the - Spanish political'situation and
laIances abroad. Through this arrangement, such the failure Of the Spanish Government to take more
private balances would . be loaned to the Bank of positive steps to stabilize exchange.
Bankers' sight on Amsterdam finished on Friday
Pyance instead of being recalled in the form of gold
the
if
happen
would
40.25, against 40.2934 on Friday of last week;
at
as
francs,
nd converted into
foreign
in
t
transfers at 40.26, against 40.3034, and comequivalen
cable
the
sell
Private banks were to
2, against 40:26. Swiss
mercial sight bills at 40.213/
exchange on the market.
sight bills and at
for
marat
bankers'
19.38
the
closed
though
francs
dull,
and
easy
are
German marks
and
ket look's for a stronger demand for marks and heavy 19.38k for cable transfers, against 19.419
and
26.73
at
2. Copenhagen checks finished
transfers of funds to Germany after the turn of the 19:423/
2.
at 26.74, against 26.731A and 26.743/
are
for
credit
transfers
cable
demand
and
rates
German
year, as
trans.
cable
and
expect
at
on
closed
Sweden
Checks
26.773/i
Stronger than in any other market. Bankers
26.833/2, while
a reduction in the Reichsbank rate of rediscount some fers at 26.78, against 26.82 and
and cabl
at
on
finished
Norway
26.733/
checks
is
clearly
rate
5%
time in January, as the present
26.75.
and
26.74
against
out of line with central bank rates in other countries. transfers at 26.743/2,
sigh
bankers'
for
10.47
It is not thought, however, that the German rate Spanish pesetas finished at
wit
compared
transfers,
will go lower than 4%, which would be a rate suf- bills and at 10.48 for cable
ficiently high to make the level of money rates in 10.65 and 10.66.
l3erlin attractive tolfunds from all other centres.
• Canadian exchange continues at a discount. On
Saturday Montreal funds were quoted at % of 1%
discount, on Monday and Tuesday at 5-32 of 1%
discount, and on Wednesday, the last day of the
year, at 11-64 of 1% discount and on Friday at 11-64
of 1% discount.
• Referring to day-to day rates, sterling exchange
on Saturday last was dull and steady. Bankers'
sight was 4.85 13-32@4.85 23-32 cable transfers
4,85- 27-32®4.857A. On Monday sterling was easier.
The range was 4.85M®4.85% for bankers' sight
and 4.85%@4.85% for cable transfers. On Tuesday
exchange was again weaker. The range was 4.85 7-32
2 for ba,nkers' sight and 4.85 19-32@4.85/
®4.853/
for cable transfers. On Wednesday sterling continued
4aull with an easier tone. The range was 4.85 11-32
®4.85 15-32 for bankers' sight and 4.85 17-32®
4.85 11-16 for cable transfers. Thursday, New
Year's, there was no market. On Friday sterling
was firmer; the range was 4.85%@4.85 9-16 for
bankers'sight and 4.85/(4)4.85 11-16 for cable transfers. Closing quotations on Friday were 4.85 15-32
for demand and 4.85 21-32 for cable transfers. Commercial sight bills finished at 4.85%; sixty-day bills
at 4.83 7-16; ninety-day bills at 4.82 9-16; documents
for payment (60 days) at 4.83 7-16, and seven-day
grain bills at 4.85. Cotton and grain for payment
Closed at 4.85%.
i
JAN. 3 1931.]
FINANCIAL CHRONICLE
Exchange on the South American countries is buying rate for cable transfers in the different counextremely irregular and Argentine pesos, Brazilian tries of the world. We give below a record for the
milreis, and exchange on Lima were off sharply in week just passed:
the early part of the week, largely because of the FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922,
heavy demand for dollars in the South American
DEC. 27 1930 TO JAN. 2 1931. INCLUSIVE.
markets. In Monday's trading Argentine paper
Rate for Cable Transfers in New York,
peso cable rates went as low as 31.43, the lowest County and Monetary Noon BuyingValue
in United Slates Money.
thus far recorded, and the Peruvian sol was quoted
Dec. 27. Dec. 29. Dec. 30. Dec. 31. Jan. 1. Jan 2
EUROPEat 29. However, there was a sharp recovery in the Austria,
$
$
$
$
$
5
schilling
.140898 .140912 .140893 .140875
.140856
Belgium belga
.139802 .139821 .139648 .139671
South Americans on Wednesday, led by Argentine Bulgaria,
.139655,
ley
.007183 .007166 .007166 .007169
.007169.
, kron .029675 .029672 .029663 .029658
. .029653
pesos. A primary factor was dispatches from Czechoslovakia
Denmark, krone
I .267471 .267502 .267401 .267323
.267326
pound
Buenos Aires to the effect the Argentine Govern- England,
sterling
858340 4.857911 4.853639 4.855980
4.856324
'
markka
.025167 .025166 .025167 .025106
.025165,
ment will decree an operation in support of the peso Finland,
France,franc
.039307 .039304 .039280 .039272
I
.039260
Germany. reichsmark .238266 .238227 .238161 .238196
.238139
in the immediate future. Part of the improvement Greece,
I .012945 .012948 .012943 .012946
drachma
.012946
Holland, guilder
402084
.402926
.402604
.402571
.402629
which took place in the South American exchanges on Hungary, pengo
175062 .175035 .175014 .174997
.174972
lira
052378 .052379 .052359 .052360
.052362
Wednesday was due to lifting of year-end pressure Italy,
Norway. krone
.267514 .267522 .267431 .267355
.267381
Poland, zloty
.112145 .112140 .112122 .112125
.112130
caused by demand for dollars. The operation of the Portugal,
escudo
.044912 .044829 .044893 .044841
.044841'
Rumania,leu
.005954 .005944 .005945 .005948
.005947
Argentine Government will involve the disposal of Spain, peseta
.105455 .106305 .105059 .104926
.104783
Sweden,krona
268299 .268286 .268060 .267951
.267825
gold held in London through sales of foreign bills, thus Switzerland,
franc
.194202 .194215 .193910 .193875
.193843
Yugoslavia, dinar-.017712 .017712 .017701 .017701
.017692
ASIAlending support to the peso. The proceeds of these ChinaChefoo tact
sales will be paid into the Caja de Conversion and the Hankow
.362291 .301458 .357500 .354375
.354791'
Holttadl
358281 .357031 .352812 .349843
.350781
day
Shanghai tadl
.349642 .348125 .342857 .341696
equivalent in gold returned to the Banco de la Nacion Tientsin
.342410
tadl
.367708 .366458 .362500 .359375
.359791
Hong
Kong
dollar
for deposit in the vaults of the bank as a conversion Mexican dollar_ -- - .271785 .270535 .268214 .264321
.262678
.251250 .251250 .248125 .245937
.246562
or Pelya
fund, which the bank is required by law to keep on Tientsin
dollar
.253750 .253333 .250833 .247916
.348333
Yuan dollar
.250416 .250000 .247500 .244583
.245000
deposit. This fund of 30,000,000 pesos was with- India,
rupee
.359692 .359570 .359471 .359575
.359575
Japan. yen
.496425 .496396 .496004 .495781
.495171
drawn from the bank last year and paid into the Singapore(8S.)doll .559375
.559375 .559375 .559375
.559375
NORTH AMER.
Conversion Office to issue notes. In order to do Canada.
dollar
998648 .998529 .998299 .998212
.998246
peso
.999593 .999656 .999843 .999781
.999781
this the Government obtained a credit from Baring Cuba,
Mexico, peso
469000 .468833 .469833 .469166
.469833
Newfoundalnd, doll
.996281 .996125 .995906 .995750
.995771
SOUTH AMER.Brothers of £5,000,000, which was utilized as a Argentina,
peso (gold) .726934 .723548 .704785 .722637
.719189
Braall, milreis
conversion fund for the bank but remained in Chile,
096500 .096437 .095625 .094555
.094812
peso
.120814 .120814 .120795 .120815
.120733
Uruguay, peso
.723443 .722193 .710761 .727261
London. Argentine paper pesos closed at 31 9-16 Colombia.
.721390
peso
.965300 .965700 .965700 .965700
.965700
for checks as against 32 7-16 on Friday of last week,
and at 315
As the Sub-Treasury was taken over by the Fed% for cable transfers, against 323/
2. Brazilian milreis are nominally quoted 9.60 for bankers' eral Reserve Bank on Dec.6 1920, it is also no longer
sight bills and 9.65 for cable transfers, against 9.75 possible to show the effect of Government operations
and 9.80. Chilean exchange closed at 12 1-16 for in the Clearing House institutions. The Federal
checks and at 12N for cable transfers, against 12 1-16 Reserve Bank of New York was creditor at the Clearing House each day as follows:
and 1214. Peru at 29.75, against 29.25.
•
DAILY CREDIT BALANCES OF NEW YORK FEDERAL RESERVE
14/124
AT CLEARING ROUSE.
Exchange on the Far Eastern countries is dull
Monday, Tuesday, WednesdayIThursdzy, Friday,
AVIP0041•
and off sharply, with the exception of Japanese yen, Saturday,
Dec. 27. Dec. 29. Dec. 30. Dec. 31.
Jan. 1.
Jan. 2.
for Week.
as the result of another severe drop in silver prices.
3
$
70,000.000
000.000 102.000,000 104.000,000 Holiday
Cr. 334,000.K4
(7)
On Tuesday the official silver price in New York Note.-The103foregoing
heavy credits reflect the huge mass of checks which come
to
the
York
New
Reserve
from
Bank
all
parts
the
of
country
in
made a new low record of $0.303
operation of
% per ounce, while the Federal Reserve System's par collection scheme. These largethe
credit balances,
however, reflect only a part of the Reserve Bank's operations with the Clearing
in London it dipped to the previous low of 143/
2d. House
institutiona, as only the items payable in New York City are represented
the daily balances. The large volume of cheeks on institutions
outtdde'
Chinese exchanges moved down in sympathy with In
of New York are not accounted for in arriving at these balances, located
as such checks
do not pass through the Clearing House but are deposited with the Federal
the decline, Shanghai taels going as low as 343I Bank for collection for the account of the local Clearing House banks. Reserve
and Hongkong as low as 263
/. The recent weakThe following table indicates the amount of bulne,ss in the price of silver was caused largely by
expectations of the imposition of higher import lion in the principal European banks:
tariffs in China. Anticipating a rush of imports
Dec. 311930.
Jan. 2 1929.
before the tariff went into effect, Shanghai bear Banks of
Gold,
r Slicer.
Total.
Gold.
Slicer.
Total.
operators sold the metal. Notice of the new tariff
£ I £ 1 £
England _ 148,271,371
148.271,371,146.115,74
146,115,745
rates was not expected until after the turn of the year, France a__ 428,620,871 (d)• 1428,620.87133
3,347,362
(d)
.347,362
Germany
99.679.00
c994.6 $ 100,673,600106,686,
994
107,661,000
but on Monday the Chinese Government announced Spain
__
97.494,000 28.107,i:i 125,601,000 102,596,
130,935,000
28,339,
Italy
57,275,000
57,275,000; 56.120,000
58.129,000
the new schedule, to take effect on Jan. 1. The Netherrds,
37.570.'''ill
35,516,000 2,054,
37.290,000
Nat. Beig. 37,653,000
37,653,000 32,750 iii
34,039,000
silver market construes the step as an ultimate bull- Switzerrd, 25.611,
25,611,000 22,449 II'
23,557.000
13,401.
Sweden_
13.331,11'
iii
13.401,
13.331,000
ish factor for silver, but is uncertain regarding the Denmark. 9,560,000
9.942.000
9,581,000
0,560,
Norway.
8,136,
8,136,
8,148,000
8.148.
mmecliate effects. Closing quotations for yen checks Total
week 961,217,242 31,155,600992,372,842 868,394,508 32,091,600900,486.108
yesterday were 49.50@49%, against 49.63(4)49/. Prey. week061,320.8
57 31,155,60(5992.476.457 864,474,855 32,088,600896,583.455
a These are the gold holdings of the Bank of France as reported in the new fora
Hongkong closed at 26%@26 11-16, against 273
of statement. b Gold holdings of the Bank of Germany are exclusive of gold held
/
8@, abroad,
amount of which the present year is £4,789,000. c As of Oct. 7 1924.
27 11-16; Shanghai at 343i(4)34 7-16, against 35@, d Silver isthenow
reported at only a trifling sum.
5 3-16; Manila at 49/, against 49%; Singapore
Political Versus Economic Alliances-The
t 56.25©56 7-16, against 56.25@56 7-16; Bombay
Franco-Belgian Military Agreement.
t 363, against 363, and Calcutta at 363(, against
6Y
4.
The beginning of the new year finds Belgium once
more dismissing the abandonment of its ten-year-old
Pursuant to the requirements of Section 522 of the military agreement with France. The agreement,
ariff Act of 1922, the Federal Reserve Bank is now embodied in letters exchanged in 1920 between Alexertifying daily to the Secretary of the Treasury the andre Millerand, then Premier of France, and the
14
1
7'=
FINANCIAL CHRONICLE
Belgian ministers Delacroix and Janson, provided
that the general staffs of the two countries should
co-operate in time of peace in the organization of
measures of defense in the event of a German attack.
Emile Vandervelde, former Minister of Foreign Affairs and one of the signers of the Locarno treaties,
and now one of the leaders of the Belgian Socialist
party, has now urged the abolition of the agreement on the ground that the Locarno treaties have
created a situation different from that which existed
in 1920, and that a military alliance is inconsistent
with the policy of international disarmament for
which the Socialist party stands.
The immediate occasion for the attack upon the
Franco-Belgian agreement appears to have been a
proposal to establish along the forty-mile eastern
frontier of Belgium, between The Netherlands and
Luxembourg, a line of modern fortifications which
should match the fortifications which France is constructing on its own eastern frontier between Luxembourg and Switzerland. The only purpose of these
fortifications is, of course, defense against Germany,
and since, under the Locarno treaties, the likelihood
of war between Germany and either Belgium or
France has been greatly lessened by agreements to
submit the Issues in dispute either to the League of
Nations or to arbitration, the necessity for a FrancoBelgian military understanding, M. Vandervelde has
urged, no longer clearly exists.
There is much more to the question than this,
however. It has more than once been pointed out
that the Locarno treaties, while apparently comprehensive on their face in dealing with the possibility
of a war to which Germany should be a party, fall
considerably short of providing for all the situations
that might arise. The Treaty of Mutual Guarantee,
-under,which Germany, Belgium, France, Great Britain and Italy "collectively and severally guarantee
the maintenance of the territorial status quo"in the
Rhineland, while Germany and France and Germany
and Belgium agree not to attack or invade each other
except under certain conditions of self-defense which
are particularly described, applies only to the
western German frontier, and appears to rest upon
the assumption that if there is war, Germany will
be the aggressor. The Belgium Socialists are asking
what would happen if Great Britain and Italy, which
would be bound to act in a way as arbitrators, found
that France or Belgium was the aggressor. Would
Belgium and France then be morally bound by their
military agreement to act together, thereby, perhaps,
drawing Belgium into a war in which it had no
immediate interest?
On the other hand, what wouldthappen,it is asked,
if Germany went to war with Poland or Czechoslovakia, or violated the Versailles treaty by making
an alliance with Austria without the consent of the
League Council? The conclusion of the Treaty of
Mutual Guarantee was followed at Locarno by the
conclusion of compulsory treaties between Germany
and Poland and Czechoslovakia, but at the same time
France concluded with those last two Powers treatie,s guaranteeing them aid in case of attack. The
arbitration treaties provide, in certain cases, for the
submission of the dispute to the Council of the
League, and if the decision of the Council should not
be unanimous the various members of the League
are at liberty, under Article 15 of the Covenant, to
act in the matter as they see fit. The Belgian Socialists are wondering whether, in the event that a
[VoL. 132.
unanimous decision were not forthcoming, Germany
would be free to go to war, and Whether, if the war
were on the eastern frontier, and France, under its
treaties with Poland and Czechoslovakia, undertook
to aid either of those countries by attacking Germany in the west, the military agreement of 1920
would obligate Belgium to join forces with France.
While the menace of war which such questions
imply may seem at the moment remote, M. Vandervelde's challenge of the Franco-Belgian agreement
has brought sharply into debate the whole policy of
political alliances of which France is the notable
embodiment. The underlying principle of that policy
is the attempt to restore in Europe a balance of
power, with France as the dominating figure. The
policy began when the peace treaties virtually prohibited a union of Austria or Hungary with Germany. A second step was taken when in June 1919,
the United States, Great Britain and France signed
an agreement binding the first two of those Powers
to come "immediately" to the aid of France in case
of an unprovoked German attack—an agreement
which President Wilson never should have made and
which the Senate properly refused to ratify. Then
followed the French military agreement with Belgium in 1920, an offensive and defensive alliance
with Poland in 1921, another with Czechoslovakia
in 1924, another with Rumania in 1926, and still another with Jugoslavia in 1927. The Polish-Rumanian
alliance of 1921 and the formation of the Little Entente have been generally regarded as reflections of
French influence. Collectively, these alliances represent a systematic attempt on the part of France
to encircle Germany, and less directly to prevent the
extension of Russian influence into eastern Europe.
Whatever the effect of these alliances in preserving peace, there can be no doubt that they have
profoundly influenced the politics of Europe, helped
to keep alive the thought of war, and made land dis-thus far impossible. Great Britain, traarmament
ditionally averse to joining any European alliance,
has not yet been called upon to act under its obligations in the Locarno pacts, but it has looked with
some concern upon the Franco-Belgian military
agreement because it regards a free and open Belgian coast, whether with or. without the neutrality
of the country, as vital to its own defense. Its
rapprochement with Germany has been interpreted
in some quarters as a hint to France not to count
too much upon British neutrality. Italian support
of Germany in its demand for revision of the peace
treaties, joined to the conclusion of an important
commercial treaty with Russia, has been hailed as an
attempt to construct another alliance which, by
dividing eastern from central Europe, would put a
check on the advance of France. Alliances breed
alliances, and it is not surprising to find that the
visits Premier Venizelos of Greece is just now making in Eastern Europe are being watched for evidence of another political combination from which
Italy, at least, would be excluded.
Not all the European statesmen, however, are
putting their trust in this kind of diplomacy. The
economic depression from which all countries have
suffered has emphasized the arguments in favor of
economic, rather than political, co-operation as a
helpful contribution to recovery. We have already
had a Baltic conference called to consider the possibilities of joint action for the relief of agriculture,
and more recently a Balkan conference concerned
JAN. 31931.]
FINANCIAL CHRONICLE
with the improvement of commercial conditions in
southeastern Europe. The proposal of a United
States of Europe continues to be actively discussed,
not as a device for arraying Europe against America
or other parts of the world, and thereby adding new
rivalries to those which already exist, but as a means
of securing by international action a removal of barriers that hinder international trade and bringing
about a more scientific development of industry.
Joseph Caillaux, former French Premier, who differs from most European financiers in putting the
blame for present conditions in Europe not upon the
United States but upon Europe itself, is quoted by
the Paris correspondent of the New York "Times"
as declaring, in a recent speech, that "the only solution for Europe is an economic federation, one which
establishes a rational equilibrium between production and consumption. Artificial industries, supported by high customs barriers, must go. There is
no other means of salvation. Otherwise we shall
return to the barbarian economics of the middle
ages." It is interesting to find a French statesman
and financial expert taking his stand on a policy
of international freedom of trade at a time when
Stanley Baldwin and other Conservative leaders in
England are doing their best to arouse enthusiasm
for protection as a remedy for unemployment and
other economic and social ills.
It is, we think, extremely unlikely that a United
States of Europe, in the all-embracing form which
M. Briand contemplates, will be set up in any near
future. The starting-point of the Briand plan is
political union, and for that, for many reasons,
Europe is not prepared. It may equally be doubted
whether an economic union on a similarly comprehensive scale is likely to be formed. But the continued discussion of economic co-operation is nevertheless rendering a useful service in showing how
remote a political alliance is from the ordinary
necessities of social well-being. The ambitions which
a political alliance aims to gratify, or the political
rivalries which it is planned to emphasize or control,
are rarely identical with the better interests of industry or trade. It is more often the case that a
political alliance, by fostering artificial political
interests which appeal to popular prejudice, or by
elevating the ambitions and often selfish schemes of
individuals or cliques to the plane of national or
international policies, brings on, through war or
exaggerated demands for defense, a governmental
interference with commerce, industry and finance
which is opposed to the welfare of economic life.
Alliances, in short, have a tendency to put up
barriers where business needs to have them taken
down, and to multiply possibilities of disturbance
where business needs peace. Every public questioning of an alliance, accordingly, such as M. Vandervelde has started afresh in Belgium,is to be welcomed
as inviting a reconsideration of agreements whose
continuance under changed conditions, years after
they were made, may now involve dangers which
were not at first foreseen. Similarly, every tentative
of economic co-operation, unencumbered by political considerations, promises an advance toward economic recovery by the aid, primarily, of business itself. If the political agreements that hold Europe in
their grip can be crossed by positive improvements in
industrial and commercial organization, the agreements will be shorn of much of their dangerous tendency and may in time be substantially modified.
15
Looking Forward Along the New Year.
If one could map the general course of business
for the coming year he could confer a great favor
upon the American people. But that, of course, cannot be done. In the rapid march of industry, in the
rush of commerce, in the surging endeavors of more
than one hundred and twenty millions of earnest,
eager citizens, there are complications no one can
unravel and there and contingencies no one can
estimate.
But business is not entirely at sea without a compass. It has developed certain unequivocal principles; it has builded up a structural form, more or
less permanent, though not perfect; and it supplies
an imperative need that cannot be dispensed with
save by a return to barbarism. Left to itself, business makes its own rules, cures its own mistakes,
benefits all men by its inherent service. In any
economic study of the future, in any outlook on the
immediate year, there are fundamental facts we cannot ignore. Thus—agriculture must continue to
produce the necessaries of life—manufacture must
continue to produce The machines and implements
that foster the growth of better living—transportation must continue to distribute the products of both
of these great industries that there may be a more
equitable exchange between all classes of the people.
At the outset, then, of any attempted prognostication we are confronted with neees8arie8. We cannot
dispense with the farmer, the merchant, the manufacturer, the carrier. These are occupations that
must persist under all conditions of prosperity and
adversity. Above these we have set the banker and
the professions that minister to what we call the
"higher life"; and the Government that protects us
in the liberty to be and to do. Through initiative,
enterprise, and creative work we have erected a shining civilization and culture which we have adorned
with a long list of luxuries. But when normal
growth does not receive full nourishment, when
business is reduced in momentum, when production
ceases to meet wants and needs, when transportation is hampered in freedom—or, when excesses
above normal requirements leave in our hands*a huge
unused production of needs and luxuries—then, general business becomes erratic, the vast and intricate
machine fails in its rhythmic service, and Nye reach
a condition we describe as "adversity." As the year
1931 opens we are definitely conscious of reaching
•that place and period. If we consider this survey
as truthful and pertinent, we shall have a beginning
for our analysis.
In the plenitude of our agriculture we have
reached a surplus—not an overproduction—for not
having command of the seasons we cannot produce
too much feed and food, nor too great a variety of
fruits and grains, provided we can properly preserve
and distribute them. Since we wish to advance constantly and harmoniously, we cannot forego the
making of new machines that minister to our normal
increase in the comforts of well-being—albeit laborsaving instrumentalities may reduce the handwork
of the people. In our means of transport we must
keep close to the equability of distribution, without
running into excesses that destroy, through invention, in a few years, the growth and service of necessary instrumentalities perfected through long years
of development and improvement. In a word, we
must preserve the basic fabric of our century and a
16
FINANCIAL CHRONICLE
half of endeavor, because it supports our necessities
first and our luxuries second. And since "business"
is a combination of all these things, and the people
themselves are in the main the authors of all conditions, we must supply and sustain our needs
first.
Applying this fundamental economic truth, if it
be one, to our present business condition as the year
opens, we must admit that a more frugal living is the
way out of our dilemma. This is not to assert, as
the plane of living becomes higher and higher by successive stages, the luxuries do not become necessities, for they do. But such is our wealth of genius
in invention that it is possible to produce luxuries
and their attendant enterprises in advance of the
power of our needful enterprise's equably to sustain
them. And this is just what we have done in the
last quarter century and to this as major cause we
must attribute our present adversity. Contributing
to this uneven growth and development must be
named the World War, the extraordinary use of
the device of credit, the social change in manners
and customs fostering pleasure as the rule of life,
and the placing of government in business through
boards and commissions. It may seem that these
truths and principles are too broad and comprehensive to furnish us any base for continuing future
tendencies and trends as to any one year's progress.
But are they?
Some will say that a free people, master of initiative and enterprise, cannot be controlled under our
form of government—that business will go on as
before in the year 1931 and history will repeat itself.
But the lessons of experience are severely learned.
Many who, at least theoretically, misused a beneficent credit in 1928 and 1929 in mad speculation in
stocks are now poor. Few,in the long run,ever grow
rich by this method. We will not have another "long
boom" in this coming year. The madness materially
contributed to present depression. The ,€'inflation"
bubble swelled until it collapsed. Brokers' loans
are something like one-fourth of their highest point
in the "boom"—they cannot be revived much in a
year.
Further, there are three or four luxuries, industries at a lowered stage, that have outrun their
attraction even by a pleasure-loving people, and cannot regain their volume of production during the impending year. The reaction which follows excess is
working its way. Necessities thereby will come into
their own. !Credit itself multiplied for luxuries, now
apathetic, must turn to the financing of needs. A
new motive, though an old one, now enters the field,
the motive of service to make needs more inviting.
Speculation was almost solely for profit, not service.
These are broad assertions, but they are true. And
though the individual is free to initiate he will be
chary of overloading credit with enterprises of little
worth to the sober life. He has learned his lesson.
The year 1931 will be more steady in its industrial
developments, but more sure.
It is assured that government has overdone its
control, though as we write the Congress is obsessed
by some dangerous experiments in "relief." We are
slowly turning away from this "interference." The
fact is, we unwittingly brought much of this depression on ourselves. Take labor as an example.
Unionized and grasping, regardless of the ability
of capital to pay, it forced the creation of machines
that now so largely in turn force unemployment.
[voL. 132.
Even to-day, through mistaken zeal and a political
effort to induce great industries to continue "high
wages," though commodities and machine-made
goods decline in price, they insist on maintaining
the standard against the weight of universal lethargy
in trade. This we may well doubt can continue
through the year.
In the same way the insistence of farmers on high
prices, brought about by war-time influences, exploded now in the fires of reaction, must face the
laws that operate infallibly in supply and demand.
Again, the effort of the Government to "help" by
and through the Federal Farm Board, now come
to naught, save to obstruct the natural flow of grain,
and the levelling process of world production, can
promise no benefit in the current year. These lessons are learned, and as they are digested false expectations will die and normalcy return.
Banks have failed in large numbers. Because they
would not heed the inevitable rebound from war's
aftermath and clean house of non-liquid assets, important failures have occurred in a few of our large
cities, involving chains and branches. From this we
may argue a cessation of this agitation and fewer
failures in the future. Combinations of large industrial and financial factors have run riot and taught
the lesson that manipulation for profits will not
stand against enlargement to meet the growing demands of actual service—another lesson that promises good.
The outlook is for quietude, for industrial reconstruction to meet needs rather than wants, to build
safely and surely rather than to inflate by bonds
and stocks. Normal increase will thus gradually
during the year restore prices in both these commodities, and prevent a continuing overproduction
by mere size of the plants. The trough of the "depression" may deepen in the coming months, but no
storm lasts forever, and when the raging winds of
profit-seeking endeavor blow themselves out the ship
of trade will emerge to continue the voyage in
calmer seas. Has that time arrived? Who can say?
But we may be assured it is arriving.
Winter may shut down cold and hard, but with
the heavy community funds raised in the large cities
and with local relief organizations in the smaller
towns, together with the millions for drouth relief
appropriated by Congress, no one need suffer for
food, clothing and shelter, in the coming months.
Huge sums, made available for public buildings and
highways, that will materialize in the latter half of
the year, promise employment for many, and the distribution of money that finds its way into the channels of general trade. Also work will proceed on the
flood control of the Mississippi and on the Boulder
Dam with like lesser schemes—adding to the momentum of business.
But the new crops, mainstay of the people, are
six months away, and cannot now be prognosticated.
There seems to be no resurgence in sight, and winter
months must be close and dull. However, the lull
is not without its advantages, for we live too much
on generalities of prediction and promise. Concentration of individuals on their own particular businesses will serve to intensify the whole of endeavor.
There will be saving and thrift, which in the end
decrease unemployment. There will be closer application to the law of service. There will be
more conservation on common things, less wild
speculation.
JAN. 3 1931.]
FINANCIAL CHRONICLE
We may expect no revolution in the manners and
'customs of the people. The modes of life will be
slower and more sedate. All industries now in existence will continue to produce, but will fit themselves, through necessity, to the new conditions.
Normal developments will require capital and employ new labor, but invention will take"a vacation,"
for in the fullness of the old there will be less inducement to launch the new. The furor of exploi
tion will die down and be lost in the gradual resumption. There is little to fear in such a future. An
industrious and energetic people, providing constantly for the needs of a rational scale of living,
over a territory as wide and diversified as the United
States, conscious of the good intent of mutual trade,
cannot long be held in despondency by any form of
"depression." Improvement is going on even while
we dig into causes and crises. With a normal increase in population, new demands, new requirements spring up. Intensified effort leads to enlargement. One generation does not pass off the scene
at once, but with its unnoted passing new minds
attack new problems. The great gift of varied
resources is ours. And no year can pass without new
developments.
These remarks may be of little comfort to those
who want to be told just what is going to transpire
and have it proved to them by comparative statistics.
But figures come after the facts. A free people, in
a sense unorganized because free, must work on in
the old way and trust to the principle's that though
sometimes impeded do not fail. What the year,
therefore, holds no one can now tell. Some things
appear to be true, but their mere mention avails
little. We have perhaps gone far enough in the
direction of combinations and chains by mergers
that begin at the top. A gradual flowing together
of industries and enterprises is not speculative in
its nature, does not require always new flotations
of credit and capital, and gives the small man his
chance to be drawn in rather than forced out. And
we may expect to see in this new year less of this
form of exploitation. However, unless we have
learned the lesson which the last year teaches we
may hope for no change in the eagerness with which
these new combines are.formed. They came legitimately in the sense that they were necessary for
larger units to supply domestic trade and energize
foreign, but they became a form of inflation and
speculation that bore evil as well as good. For the
time being we shall probably see less of this.
We need not consider periodicity, the swing of the
pendulum, the recurrence of crises—no one knows
when the turn comes. Too many elements of influence impinge. The condition of foreign countries,
world-trade, intervenes. General levels may be low
or high. But the industry that rides the waves keeps
the ship moving—and turning, to meet the pressure
or the shift of winds. The "crash" of a year ago was
a culmination, not a cause. If, therefore, there is
further "depression" just ahead, it is but one more
challenge to management, one more stage in the
course of events. We have every reason now for
encouragement—for optimism that is clear-sighted
and not blind. We will conquer. But it will be by
our own endeavor and not by governmental help and
direction, which even in Communistic Russia fails.
The only valuable advice is—courage, caution, concentration. Let us theorize less and work more.
Let us look within, not without. Let us study eco-
17
nomics and eschew politics. Each in his own way in
his own business,let us be done with "watchful waiting" and by more intensive thought and labor prosper our own occupation and business. In this the
spells golden opportunity.
New Y
Bank Runs.
Experience established the general rule in banking
that one-quarter of the deposits on hand is ample to
fill the calls of all customers in the ordinary way.
Legal requirements as to reserves have modified this
rule of experience somewhat, but the principle remains. In actual practice the nature of the deposits
also modifies the rule. And it is on this rule that
the business of banking is founded. Profits in banking accrue from loaning a part of the deposits.
There are a few incidental profits from exchange,
but if there was no interest collected there would be
no dividends declared. Every day funds are flowing
in as well as being paid out. The uncalled for balances of customers constitute the total of deposits
as shown in the statements required by law. The
capital stock of the bank and its surplus serve as a
guaranty that deposits will be paid when called for.
Thus while ostensibly the bank promises to pay all
customers on demand it cannot do so if they all
come at the same time, for having loaned a part—
from one-third to two-thirds normally—of the deposits, it has not cash in hand or in other banks on
call with which to pay all. If a bank kept all its
deposits in cash in its vaults it would be a mere
custodian of deposits, would make no profits, and
must charge a fee for this service. It would not
be a bank.
Now intelligent customers know this and assent
to it when they open an account. Another feature
of the business of banking not so well known and
appreciated is that customers deposit checks and
drafts for anywhere from 75 to 90% of their deposits
rather than in cash. These the bank undertakes to
convert into cash at practically no charge, or a very
slight one, to the customer. In reality, customers
may demand cash, though they have only deposited
credits. While these items of credit-deposits are in
process of conversion and collection they are called
"float," and it becomes sometimes necessary to require that the customer wait before drawing on the
deposit until they are heard from, but in a large
part of these transactions the effect with a customer
who is "good" is to pay in cash on demand. It must
be at once apparent that this is an accommodation
incident to the business. Interest on the in-going
and out-going checks and drafts put in as deposits
largely balances—thus the bank becomes a clearing
house for its customers. There are shadings of this
rule, but for the most part it stands. In an unusual
demand on a given day it is important to realize that
customers are demanding cash for credits—cash that
they are entitled to only as a courtesy and a favor.
In assenting to these two features of banking, that
deposits are to be loaned and credits are to be converted and collected, the customers enter into obligations to abide by the banking regulations established
by experience.
In former days, in developing banking in the
South and Far West, it was not at all unusual for
a banker to say to a customer on presenting a check
of large size, larger than the cash in vault, we cannot
give you the money to-day, but will have it for you
in, say, three days. Conversely, it was customary
18
FINANCIAL CHRONICLE
to give the banker notice of the presentation of such
a check. The small country bank deposits with the
large city bank, receives interest on this deposit, and
holds the item "due from other banks and bankers,"
as a secondary reserve. In common custom, however, both banker-depositor and customer-depositor
proceed as if they were drawing caSh on demand.
And these rules suffice, unless some unforeseen condition, some false report as to the standing of the
bank, causes depositors to fear the solvency of the
institution and induces in them a panic, when they
all rush pell-mell to the counters to withdraw their
"money."
It is certain that when they do this they are not
respecting their mutual obligations, are not playing
fair! Consequently,in savings banks and trust companies there is often an agreement, incurred by
accepting the pass-book, that the bank or trust company reserves the right to pay on 60 days' notice or
on such time as stated. All these customs are recognition that the bank does not undertake to pay all
depositors on the same day without previous notice.
The reason is obvious. The cash in vault or in bank
credits is never sufficient to do this, a large part of
the total deposits being invested in time securities
that must be called or sold in the markets. The "condition" of the bank is dependent upon the "liquidity"
of its assets. A commercial bank must have shorttime paper that is falling due from day to day, paper
that may be called or renewed, according to the
financial condition of the customer, and according
to the needs of the bank.
There come, in the course of business, times of
low turnover, times of stress and depression, when
banks must hug the shore, conserve their cash, and
yet care for their customers'"requirements" in loans
and exchange, else they do harm to the interests that
result from mutual benefits. At this time forbearance on both sides is necessary. As banks are
owned, through stock and deposits, by the people,
it is incumbent on those who would see "prosperity"
return to stand by their banks. Not only must they
forego asking favors out of keeping with the general
business trend; not only must they instruct the unknowing in the laws and rules of banking, but they
must refuse to withdraw their deposits save in
amounts demanded by absolute necessity. By so
doing they maintain the procedures of going business—for when the banks collapse all manufacturing and merchandising are crippled.
It has often been said that in the Northwest section of the country, where in past years so many
hundreds of country banks closed their doors due
to the collapse of inflated prices superinduced by
the World War and its inevitable aftermath, that
the communities failed rather than the banks. And
the statement is true. In the same way speculation
and inflation of security issues have brought another
crisis which has affected the larger banks in the
cities and caused them to hew to the line in loans
and credits. At the same time, money has been
plentiful and commercial credits easy. Naturally,
with a lethargic business, there has been much talk
of "hard times." This has caused some questioning
of the standing of principal banks, when, with
financial acumen -to see ahead, they have been reefing their sails and preparing for a storm. Having
done this, they are in reality stronger than ever.
Inevitably, a few that have stretched their canvas
too far, that have not conserved their resources, have
(VOL. 132.
been forced to succumb. But they are the weak
spots which attend any business, and their enforced
elimination adds strength and stability to the others.
As we are now passing through a period of general depression, it is important to look clearly on
the banking situation. Rightly conducted, banking
is a safe business. The Federal Reserve System,that
provides overnight for an emergency currency, is a
tower of efficiency and strength in so far as this is
an issue. It follows that quick withdrawals of funds
only makes the business situation worse. Banks
must function in good times and bad. They are
equal to any emergency as long as they have the
confidence of the people. When properly sustained
by their patrons and customers they keep the wheels
of business rolling and increase the momentum of
trade and hasten the return of prosperity. But the
people must stand by their banks. As we have
shown, it is a duty, a responsibility, a contract. It
is the people themselves that must allay panics.
One bank failure in a community does not cast doubt
on -the others. Fears and false witness are dangerous and damnable. Let confidence be renewed from
day to day where confidence has so rarely been
abused.
James Speyer on Business Situation—No Cause
for Pessimism—Prices of Goods and Securities Sure to Improve.
Writing under date of Dec. 30, James Speyer of
Speyer & Co. says:
A year ago a good many people expected, and some
predicted, that after the severe and forced liquidation
in our security markets, and decline in commodity prices,
general conditions in our country would quickly improve
and return to normal during 1930; but this expectation has
not been realized, and disappointment has been correspondingly greater. This is to be regretted, especially as some
people from "Main Street," who, unfortunately, had come
to Wall Street, may induce representatives in Congress to
propose "investigations" and short-sighted remedies.
Surely, in this rich country of ours, with its stable currency—the recognized standard of the world—and with
its efficient Reserve bank system, there is no real cause for
pessimism. On the contrary, in due course, prices of good
bonds and stocks are sure to improve. In the past, when
we experienced similar temporary depressions, the upturn
came more quickly, because the older European countries
were then in a strong financial position and their investors
grasped the opportunity to buy our securities.
At this juncture we are faced with unsatisfactory economic
conditions which are world-wide, and which in some countries
have led to political upheavals. A number of reasons have
been advanced to explain this state of affairs, and some
experts have mentioned a shortage of gold. The fact seems
to be that there is plenty of gold, but that it is not held
where it is most needed, and no way has yet been found to
get it where it will do the most good. The United States
and France each have a large surplus stock of gold, and,
although required by other countries, these surplus stocks
have been steadily increasing. This accumulation is partly
due to payments from other governments—,in the case of
France by German "reparation" payments (of which in
1930 France alone received about $200,000,000), and, in
our case, through repayments of loans which we granted
during the war, Great Britain alone having repaid us
$160,000,000 in 1930.
The peace treaties, by imposing heavy "reparation"
penalties on the defeated, are compelling an efficient industrial country, like Germany, to force its exports of
manufactured goods, as the means of obtaining the gold
to pay these obligations. The difference in wages between
Germany and our own country is so great that our industries are bound to feel this forced German competition,
perhaps more than any other country. At the same time,
we are receiving directly only about 4% of the German
"reparation" payments, of which France is receiving 52%.
It is to be hoped, particularly in the interest of our working
JAN. 3 1931.]
FINANCIAL CHRONICLE
classes, that a remedy may be found before a reduction of
wages becomes necessary, which ought to be avoided, if
possible.
Furthermore, the peace treaties transferred colonial
possessions and large tracts of productive and densely
populated territories from one sovereignty to another, and
also created new States, thereby cutting up part of Europe
into smaller self-governing units, contrary to the economic
tendency of modern times, and obstructing century-old
free-trade routes through new tariff walls.
The economic world to-day is suffering not only from the
consequences of the war, but, perhaps more so, from the
consequences of the peace, as with remarkable foresight
had been predicted by John Maynard Keynes in 1920 in
his book, "Economic Consequences of the Peace." Perhaps the European Powers most concerned realize now that
"less would have been more." But, of course, we must
leave it to them to find ways and means of overcoming
their difficulties, all the more urgent as by forced exports
from Russia, through underpaid labor, further interference
with regular trade seems to be threatened.
All this is bound to affect our country, and shows the
necessity that we, ourselves, should do everything possible
to put "our own house in best possible working order."
Without going into details, one might mention that changing conditions
make it advisable for us to revise our anti-trust laws, enabling our manufacturers, under reasonable restrictions, to combine, as manufacturers are
allowed and even encouraged to do, in foreign industrial countries, so as
to avoid uneconomic plant expansion and overproduction.
The new means of transportation make it even more necessary than heretofore to show a more liberal spirit by allowing expeditious consolidations
and co-ordination of our railroad system, and relieving these carriers of
contributing to the cost of eliminating grade crossings where new highways
are constructed, and of part of the taxes which they are now paying, and
which are largely spent for building and maintaining highways which, in
turn, are used by busses and trucks—their new competitors—without
corresponding taxation.
It is now generally realized that the recent increase in our tariff, scarcely
called for in the interest of our country as a whole, may cause resentment
and retaliation by other countries, harmful to us. Our President has said:
"Prosperity cannot be restored by raids upon the public treasury." But,
on the other hand, our Government is wisely hastening expenditures for
public works,which will furnish employment and be either income-producing
In themselves or help our trade and commerce.
In considering these large Government expenditures for improvements
and relief, it cannot be overlooked that. In 1919, the Treasury collected
$483,000,000 from liquor excise taxes. The prohibition legislation not
only has deprived the Treasury of this income, but, on the contrary, has
Increased direct and indirect expenditures In this connection by very large
sums. This is not the place to discuss possible benefits or the demoralizing
.influence this legislation has had in many directions.
It is very much to be hoped that our legislators, when
considering these and other internal problems, will not
allow themselves to look at them from too narrow a point
of view. Popular as certain proposals might appear locally,
we must not forget that the different sections of our country
are dependent upon each other, and that we are, to-day,
the largest creditor and export nation of the world. Our
country's foreign trade has developed enormously, but this
year our exports have fallen off $1,000,000,000, another
proof of how much world conditions affect our own prosperity.
The repayment of the large sums advanced to our Allies
during the war, increasing heavy taxation abroad, is interfering with regular trade and their purchasing power, and
this burden on all debtors has become heavier everywhere,
as the purchasing value of gold, due to depreciation in the
price of securities and commodities, has increased more than
anybody could foresee, even a year or two ago. We have
tried to be helpful to Europe, by co-operating in the Dawes
and Young plans, by granting foreign loans and credits and
by giving our Allies a long time to repay us and at low rates
of interest. While we should not be expected, and could
not afford, in the interest of our people, to cancel these
foreign debts, we might well consider the suggestion recently
expressed by Owen D. Young the advisability, in our
own and in the general interest, of being still more lenient
towards our debtors, which, of course, would imply that
each other creditor nation would be equally lenient towards
its debtors. If we were to grant them, say, a five-year
delay for part of their payments, we would expect that each
other creditor nation would do the same towards its debtors.
Such concessions would fill the people of each with renewed
hope and courage for the benefit of all. If, at the same
time, the great European nations should finally carry out
their disarmament promises, this would, on the other hand,
enable our Government to save atleast part of the $700,000,000 which we are now forced to spend annually for our
own army and navy.
While these and other world problems, having a direct
bearing upon our own economic welfare, are being considered
19
and solved—as they surely will be—no good American—
knowing his country's economic and financial strength—
with justified confidence in the enterprise and self-reliance
of our people, under our form of government, can have any
real reason to take a pessimistic view as to our future. On
the contrary, the wonderful spirit of co-operation and determination to help each other, without distinction as to race,
color or creed, which our men and women are again showing
now, and which no other nation has ever equalled, must
fill every patriotic American with just pride and with a
fresh spirit of optimism and faith in the future of the United
States of America. If we continue to work and save, with
due regard to our obligations towards others, prosperity
—not booms or depressions—will in the future, as in the
past, be the normal state of our blessed country and of its
people, with the greatest good to the greatest number.
JAMES SPEYER.
Income Problem of Railroads.
[Editorial in New York "Journal of Commerce," Dec. 29 1930.]
Announcement of the net returns for principal railroads
dhows that during the month of November there was no
material change in their income situation as compared with
earlier months. For November itself, the first 34 roads are
off about 31% as compared with the same month in 1929,
While the first 10 months of the year are off 30.7% as compared with 1929. The shortage of revenue is now as great
as it had been at some dates earlier in the season, but taking
an average all around, the difference is not a very large one.
It should be noted that this decline in revenue as
occurred notwithstanding a very full crop of most staples.
The fact that prices of cereals and cotton are lower does
not prevent the railroads from charging the same for a given
rate of shipments. They have had a fairly good freight
season, domestically, but, of course, they have suffered from
the loss of export freight, which is off about 25%, or a little
less, and they have naturally felt the slowing down of
domestic trade, which was so marked during the autumn
and which cut the receipts of the roads from shipments of
the higher priced types of goods. Add to this situation the
fact that passenger traffic, excursion receipts and the like
have been low and the gross income of the roads is
largely explained. Consider further the fact that partly
due to trade union pressure, partly as a result of Government demands for the maintenance of wage schedules and
partly other like factors, the roads have been prevented
from•economizing as they otherwise might, and their net
income position is equally clear.
The problem of the railroads—the question of their
restoration to a satisfactory position, is likewise plain
enough. Evidently, they must, in order to get back to their
1928-29 situation, recover the export business they have lost
and restore the domestic traffic to a full basis. This they
evidently cannot do until business itself recovers, and such
recovery involves the establishment of better trade relationship with foreign countries and comparatively full employment at home. Such changes will take a good while. The
railroads cannot wait for them. We are thus driven back
to the conclusion that either the roads must have higher
freight rates or else that they must be permitted and aided
to make economies in operation. The latter would involve
reducing wage scales to something like a parity with other
Industries, freeing them from the unnecessary exactions
of Federal law imposed at the instance of trade unions under
the guise of safety enactments and relieving them of pressure to go on making new expenditures, in order to provide
work for staffs that are no longer needed. Which alternative does the community prefer—higher payments to the
railroads, or permission to the latter to save outlays? One
or the other policy is essential.
We cannot allow the railroads to get into an embarrassed
situation, similar, for example, to that which they occupied
soon after the war. In spite of all the extreme talk about
abandoning railway lines, substituting 'bus transportation,
transferring freight to waterways and the like, the fact
remains that the railroads are the backbone of our transportation system and will continue to be so. They must be
maintained in efficient condition. Due to their necessities
Immediately after the war, they have borrowed very heavily
on bond account, and In the opinion of many have gone quite
as far in that direction as they can, certainly as they ought
to go. Two or three years ago it appeared likely that
they.
20
FINANCIAL CHRONICLE
[VoL. 132.
of this sort of conduct and many of them have of late had
cause for regret. It is doubtful if any of them ever went so
far, however, as the Farm Board and the various co-operatives and others operating under the guidance of that Board.
Certainly none have attempted anything on so broad and
harmful a scale as have these groups in recent months. It
may therefore be in fashion for the Chairman of the Farm
Board to defend these activities of his sundry groups on
the futures exchanges as "hedging," but this defense is
none the less misleading, inaccurate and indeed untruthful.
It is particularly unfitting for Mr. Legge to cite the usual
practices of conservative wheat and cotton merchants as
models for his own activities in the future markets. Night
and day are no more dissimilar than his methods in making
use of the futures markets and those of the bona fide grain
or cotton merchant. The very nature of the purposes of
the co-operatives and the Farm Board estops these agencies
from use of the hedging principles. They are in business
to bolster markets; the hedging operation is designed to
avoid taking a position in the market either for the purpose
of boosting prices or for any other purpose. Hedging except
for fluctuations in what the cotton merchant calls "basis,"
fixes the resale price of the hedged article at the market
at the time of its purchase. Nothing could be further from
the object and desires of the Farm Board or any of its
satellites.
What the co-operatives and the Farm Board have been
persistently doing and are to-day doing on the futures exchanges is just what has been time and again labeled
"gambling" when indulged in by private interests. There
is no use in trying to evade or obscure that elementary and
In the Name of Hedging.
perfectly obvious truth. The more public officials try to
[Editorial in New York "Journal of Commerce," Dec. 30 1930.]
hide the true nature of the operations the further they sink
Almost as many sins are now committed and excused in in the estimate of all those who understand the true inwardthe name of hedging as were ever perpetrated under the ness of the present situation—and in the long run probably
Regis of liberty. Private interests have long been guilty the less respect they will be able to command in Congress.
would be able to approach the market for funds obtained
through the issue of stock, owing to the good income record
which they had made for a few years preceding. A small
number of issues were placed in this way and it seemed as
if the roads had entered upon a new period of finance. The
present recession has forced them to revert to the old
situation.
The truth of the matter is that the railroads have never
had enough income at any time during the past 20 years.
Whatever may be the cause, the fact remains that although
the roads are economically managed, so far as overheads
are concerned, the severity of the Inter-State Commerce
Commission and of State railroad commissions, combined
with the oppressive powers of the trade unions, have prevented them from making any real advance in the strength
of their economic position. Even in the best of years there
have been few of them that offered any field for the "recapture" of income by the Government, under the provisions of
the Transportation law of 1920. They have been quite
steadily (on the average) behind the level set as a safe
minimum by the makers of the act referred to.
Thus on all grounds, both of public and private wellbeing, there is the best of reason for believing that an advance of freight rates is warranted and should be provided
for. Along With it should go a reasonable consolidation
plan which would permit further economies and would correspondingly lessen (although it probably would not eliminate) the necessity of a higher scale of charges.
Annual Report of Comptroller of Currency Pole—Recommendation
Renewed for Legislation to Permit National Banks to Establish
Branches in Regional Trade Areas—Also Proposes That Authority.
Be Given Comptroller to Examine Investment Companies Affiliated
With National Banks.
The major legislation recommended by Comptroller of
the Currency John W.Pole in his annual report, made public
Jan. 2, has to do with an amendment to the National Bank
Act which would permit National banks "to establish
branches within the regional trade areas of the commercial
centres in which they operate." In his annual report a year
ago Comptroller Pole proposed similar legislation, and it
will be recalled that hearings on the subject of branch,
group and chain banking were held at ,the last session of
Congress before the House Banking and Currency Committee. In his present report the Comptroller states that
"at this date the Committee has not rendered its report."
He adds that "Nothing, however, materialized during these
hearings, nor has anything arisen since, to justify any change
In my attitude. Developments of the last year have, on
the contrary, strengthened my belief that the type of branch
banking put forward by me is sound and that such an amendment to the law should be enacted." In his latest report,
also, the Comptroller points out "that the failure of about
5,600 banks in the past 10 years, tying up deposits of nearly
$2,000,000,000, constitutes one of the main factors responsible for the orystallizatios of a strong sentiment in favor of
some change in our banking structure which will bring to
our rural districts, where more than four-fifths of these failures have occurred, the benefits and protection of the strong,
well-managed banks now operating in our commercial centres." Referring to the development of group banking
(which he observes was practically unknown at the time
of the enactment of the McFadden bill), Mr. Pole says that
rapid growth of this form of banking "is attested by the
'fact that on June 30 1930 there were in existence in this
.country 289 group and chain banking organizations, controlling 2,144 banks, with loans and investments of approximately $12,000,000,000, or nearly 21% of the total loans
and investments of all the banks in the country." The
Comptroller states that "in defining the trade area, it is
essential that we keep in mind the chief purpose of proposed
amendments to the National Bank Act with respect to
the establishment of branches. It is not," he says, "the
primary consideration that the large city bank should be
placed in a position further to develop its business with
attendant greater profits and wider influence. . . . The
primary purpose is the strengthening of rural banking itself."
In addition to his recommendations on this subject, the
Comptroller urges the enactment of legislation vesting authority in the Comptroller of the Currency to examine security or investment companies affiliated with National banking associations. The legislation proposed in his report
follows in detail:
LEGISLATION RECOMMENDED.
Amentments to the National Bank Act.
Since the publication of my 1929 annual report the subject of branch,
group, and chain banking has received considerable attention. Bankers
and their associations. both National and State. the press, and the public
generally have evidenced an interest in the subject to a greater degree
than ever before. This interest has been due largely to the increasing
number of country bank failures and the changing conditions which have
brought hitherto isolated rural districts into closer touch with the commercial centers. These developments were also Important factors in
prompting my suggestions to the Seventy-first Congress that Section 5155
of the Revised Statutes of the United States be amended to permit National
banks, with the approval of the Comptroller of the Currency, to establish
branches within the regional trade areas of the commercial centres in which
they operate.
At the last session of Congress the Banking and Currency Committee of
the House of Representatives, under authority of House Resolution 141,
conducted extended hearings on the subject of branch, group and chain
banking. During the course of these hearings there appeared before the
Committee a number of prominent Government officials, bankers and
others, representing unit as well as the different forms of so-called multiple
banking In many sections of the country. They testified from experience
in their respective spheres, and through their testimony the Committee
was placed In possession of a fund of first hand and valuable information.
At this date the Committee has not rendered Its report. Nothing, however,
materialized during these hearings nor has anything arisen since to Justify
any change in my attitude. Developments of the last year have, on the
contrary, strengthened my belief that the type of branch banking put
forward by me is sound and that such an amendment to the law should be
enacted.
JAN. 3
1931.]
FINANCIAL CHRONICLE
21
Failures have not abated. During the fiscal year ended June 30 1930, an abdication of a National branch banking policy in favor of the policies'
there were 640 failures, 82 of which were National banks and 558 State of the various States and is open to two serious objections, one economic
banks, as compared to a total of 549 failures during the fiscal year ended and the other constitutional.
The theory of trade area branch banking rests upon economic grounds.
June 30 1929, comprising 69 National banks and 480 State banks.
An analysis of the bank failures for the current year shows that the Its aim is to permit strong city banks to carry their banking facilities; ter
trend toward the gradual elimination of small country banks in the agri- the community surrounding such city to a distance which is governed
cultural sections, which has been prevalent during the past decade, 13 still by the predominant flow of business and trade to and from the city as
a trade centre. It is designed to give to the rural communities, which
very pronounced.
Nearly 96% of these failures occurred in the agricultural States of the have for years been suffering from a lack of safe and adequate banking
South, Middle Westand West, while in the more densely populated iniustrial facilities, the high type of banking and the security from bank failures
areas of New England and the Eastern and Pacific Coast States, where a which residents of the large cities have generally enjoyed. If Congress
greater diversification of business is possible, the number of failures has therefore adopts the policy of withholding from National banks the power
to cross State lines with branches in those cases where the trade area of the
been negligible.
In only one section of the country,(the Western States) did the total city clearly does cross the State line, the whole theory and plan of esnumber of bank failures for the fiscal year 1930 fall below that of the pre- tablishing in the rural communities a well-rounded and sound branch
ceding fiscal year. In that section 163 banks failed during the fiscal banking system is broken down.
The State policy theory is objectionable upon the constitutional ground'
year 1930 as compared to 183 during 1929. This exception was, however,
due solely to the situation in Nebraska, where, following the collapse of that Congress alone is responsible for the establishment and maintenance
the guaranty of deposits law, 106 State banks closed their doors during of the system of National banks as an instrumentality of the Federal
the fiscal year of 1929, while only 50 failed during the comparable period Government. These banks were established purely in the exercise of
the legislative power of Congress and solely upon a National policy. It
of 1930.
Illinois, a State wherein anti-branch-banking sentiment is quite pro- gave to the United States a uniform system of banking beyond the control
nounced, suffered a striking increase in bank failures during the past year. of the States.
It is not a valid objection to the National legislation here proposed that
During the fiscal year 1929 only 8 State banks and 1 National bank in
Illinois closed their doors, while in 1930 no less than 42 State-chartered Congress would be conferring upon National banks banking powers more
Institutions and 11 National associations, a total of 53, were placed in extensive than those which lay within the power of the State legislatures
receivership.
to give to State banks. For many years we have witnessed what may be
Other States contributing largely to the increase in bank failures during regarded as the reverse of this situation. While Congress has at all times
the last fiscal year were Alabama, with only 5 failures in 1929 and 25 ha had the constitutional power to give to the National banks charter ad1930; Oklahoma, also with 5 failures in 1929 and 26 in 1930; and Missouri, vantages which could not be acquired by State banks, it has nevertheless
with 19 failures in 1929 compared to 50 in 1930. In each of these States, been extremely reluctant to exercise this power, although to do so in the
following the general trend for the entire country, the great bulk of the manner herein recommended would strengthen our whole banking structure.
failures was made up of banks with limited capital, located in communities On the other hand, however. State legislatures have conferred upon State
of the type which,in my opinion, can be adequately served only by branches Chartered institutions, particularly upon trust companies, banking powers
of the larger banks in the nearest large commercial centres.
which National banks did not at the time enjoy. As a consequence. the
Since I have discussed the subject of bank failures at some length in pre- National banking system has within recent years declined In size, imvious public utterances and in my annual report to Congress for 1929, I portance, and influence and has become thereby relatively less effective
shall ask your further indulgence on this occasion merely to point out that as an instrumentality of the Federal Government. Through the diversion
the failure of about 5,600 banks in the past 10 years, tying up deposits of of commercial banking from the National to the various State banking
nearly $2,000,000,000, constitutes one of the main factors responsible for systems, Congress has lost ocntrol over the major portion of the commercial
the crystallization of a strong sentiment in favor of some change in our banking resources in the United States.
Upon the enactment of the McFadden bill the conversion into National
banking structure which will bring to our rural districts, *here more than
four-fifths of these failures have occurred, the benefits and protection of banks of several larger State branch banking institutions and the consolicommercial
centres.
dation of several State banks with National banks under the National
the strong well-managed banks now operating in our
It should not be overlooked that those who have suffered most in these charter gave rise to the hope that the National banking system would refailures were persons of small means—country business men, farmers and claim the most important banks which had left it to operate under State
savings depositors in farming communities. That remedial legislation charters. However, this hope was short lived, for there soon followed
along this line is of great present importance is strikingly emphasized by through State legislative or State judicial action new advantages for State
the latest figures available, which show that up to Oct. 31 of this year banks, particularly with respect to the operation of the trust business and
no less than 742 banks, with deposits of about $300,000,000. have closed desertions from the National charter in favor of those offered by the States
their doors, as compared to a total of 522 suspensions, with deposits of began to increase. That the disparity between the two systems of banks Is
pronounced is evidenced by the fact that whereas in 1886 the National
$200,000,000, during the same period last year.
In the absence of legislation permitting the extension of branch banking banks held 75% of the total commercial banking resources of the country,
facilities to these rural communities, a type of multiple banking called the latest compiled figures indicate that-this proportion has now shrunk
group banking, practically unknown at the time of the enactment of the to less than 40%.
Any advantage therefore which might accrue to the National banking
McFadden bill, has been evolved. That the development of group banking
has been remarkably rapid during the past two years is attested by the system through trade-area branch banking around those cities situated
fact that on June 30 1930 there were in existence in this country 289 group near State boundary lines could fittingly be taken by Congress as an opand chain banking organizations, controlling 2,144 banks, with loans portunity to strengthen its control over a nation-wide system of commercial
and investments of approximately $12,000,000,000, or nearly 21% of the banking such as was established under the original National Bank Act.
In view of the foregoing considerations, it is recommended that the Act
total loans and investments of all the banks in the country.
In not a few instances a highly constructive service has been rendered of Feb. 25 1927 otherwise known as the McFadden Act, be amended to
by group systems in taking over smaller banks which have found them- Incorporate the following banking policy:
(1) That a committee composed of the Secretary of the Treasury, the
selves in a position where they could no longer function profitably or
safely under the conditions with which they were confronted. However, Governor ofthe FederalReserve Board,and the Comptroller of the Currency
it is a rather significant fact that both group and chain banking have had be authorized to select the various cities which are commercial centers in
their greatest development in the States where branch banking is pro- the United States and to map out their trade areas.
(2) That the term "trade area" be defined to embrace the regional flow
hibited. A recent survey discloses that in the nine States and the District
of Columbia, wherein State-wide branch banking is permitted, there of business and trade to and from such cities and that State boundary
were 86 banks in group and chain systems and 847 branches located outside lines be not considered in determining the territorial limits.thereof.
(3)That National banks situated in such cities be permitted, with the
of the head office cities, besides 461 branches located in head office cities.
In the 22 States in which State-wide branch banking is prohibited, however. approval of the Comptroller of the Currency, to establish branches within
there were 1,242 banks in groups and chain systems. In these 22 States the limits of such regional trade areas.
there were 25 branches located outside of the head office cities and 27 in
(4) That the paid-in capital stock of such a National bank shall be not
head office cities, all of which were established prior to prohibitory legislation. less than $1,000,000 and the ratio of capital and surplus to deposits shall be
A highly important advantage possessed by branch banking over group maintained at not less than 1 to 10. The Comptroller of the Currency
banking is the adaptability of the former system for extension into the would in his discretion require a larger capitalization.
most remote hamlets, while, generally speaking, group banking facilities
(5) That the National bank consolidation Act be amended so as to perare enjoyed only by those communities which are able to support a well- mit any banks situated within the trade area to consolidate, with the apmanaged independent bank. My observation has been that group banking, proval of the Comptroller of the Currency, under the National charter;
Instead of alleviating the rural banking situation, has as a rule taken over but the Comptroller of the Currency should be specifically empowered to
only the stronger local banks in prosperous communities, leaving the disapprove any such consolidation upon the ground that it might result
weaker institutions struggling for a meager existence. Failures of these in an undue concentration of banking capital within the trade area.
weaker banks have left many communities wholly without local banking
(6) That there be conferred upon the Comptroller of the Currency such
facilities, which, however, could readily be supplied by branches of the visitorial powers as may enable him to examine into the affairs of any
larger city banks, with but a minimum of overhead expense to the latter corporation which owns or controls the majority of the stock ofany National
institutions.
bank.
It does not seem desirable to give suffciently broad branch banking
(7) That no corporation be permitted to own the majority of the stock of
powers to National banks to enable them to embrace in a single branch any National bank if it at the same time owns the majority of the stock of a
system the entire geographical area now embraced by several of the larger State bank.
group bank systems. Group banking in the main is in capable hands.
(8) That no National bank be permitted to make a loan upon the security
and includes some of the best-managed banks in the country. However, of the stock of a corporation which may own the majority of the stock of
the field of group banking is now open to every type of operator or pro- such National bank.
moter who may be able to purchase bank stocks. This constitutes a source
During the past 12 months I have discussed at length the question of the
of potential danger. In order to facilitate the supervision of group bank- trade area as the logical basis for the development of branch banking
ing, in those cases where the Federal Government has any responsibility, in the rural communities. Particularly at my appearance before the House
it is my view that no National bank should be permitted to become a Committee on Banking and Currency last spring detailed consideration
constituent of such a group, except upon the condition that all other was given to many aspects of the trade area in connection with the question
banks in the group are also National banks. The Comptroller of the of the extension of the branch banking powers of the National banks. It
Currency under these conditions could more effectively examine and super- may be desirable at this time to summarize these discussions.
vise the entire group operations. It is therefore my view that group
In defining the trade area it is essential that we keep in mind the chief
banking should be brought under the vialtorial powers of the Federal purpose of proposed amendments to the National bank Act with respect
Government in those cases where membership in the group is composed to the establishment of branches. It is not the primary consideration that
in whole or in part of National or State member banks of the Federal the large city bank should be placed in a position further to develop its bust.
Reserve System. Legislation along these lines seems to be necessary in ness with attendant greater profits and wider influence notwithstanding
the public interest.
this would and should follow, as a matter of course, through the extension
With reference to my recommendation that National banks situated of branches to the rural sections tributary to the city in which it is located.
cities
be
permitted to extend branch banking The primary purpose is the strengthening ofrural banking itself through the
In important commercial
facilities into the trade area of such cities, it has been suggested that any influence of strongly capitalized and well-managed city banks of which the
such National legislation would give to National banks an advantage rural bank might become an integral part. It is, therefore, necessary to
over State chartered institutions in those cities, the trade areas of which consider the trade-area question from the point of view of the rural-bank
embrace territory in more than one State. There are many such cities situation rather than from that of the city bank.
In the United States. The proposal has, therefore, been made that
The difficulty in defining a trade area in the abstract is well recognized.
National banks be given only those branch banking powers which the State The subject has been studied by experts in many phases. The country has
legislatures can give to State banks. Such a procedure would seem to be been laid out into trade areas from the standpoint of the manufacturers
-
22
FINANCIAL CHRONICLE
(VoL. 132.
of nationally advertised commodities, the manufacturers of more localized ary lines that a prohibition against crossing the State line would result In a
products, wholesale distributors, retailers and newspaper circulation. one-sided branch banking system for the banks in such a city. The trade
The present problem deals with a different type of trade area—one which area here under discussion is a geographical area for banking purposes. It
requires that the viewpoint be taken from the rim of the area rather than has no direct political significance. Business and industry pay no heed
from the hub.
to State lines in the use of banking facilities. The normal business of a
The aim is the establishment in the rural communities of a sound system • bank in a city situated near the boundary line of more than one State flows
of banking which will give to the country depositor a resonable assurance over such lines in response to the impulse of convenient communication and
of safety and will offer to those requiring banking accommodation more transportation. Depositors and borrowers in one State have no prejudices
adequate facilities than is at present available to them. Those requirements In crossing over the State lines to gain access to their bank. To deny
can be net only through the establishment of branches by city banks into such a bank, under these circumstances, the power to establish branches
the surrounding communities which have access to such a city as their prin- to meet the convenience of its customers across State lines while at the
cipal market and financial center. It is this surrounding area which I have same time permitting it to establish branches in another direction into the
termed the regional trade area. It Is the zone of the city's predominant territory of an entire State—In many cases extending far beyond its normal
economic influence in the sense that in that zone the city is both the trade trade area—would set up a system of branch banking under National authorand credit center.
ity which would appear unworkable and indefensible.
.
•
There can be no formula which would determine in advance the exact
In the consideration of the type or size of a city which would be chosen
size of any such trade area, but as has been frequently pointed out there Is as the centre of a trade area adequate for branch banking purposes, regard
one economic principle of fundamental and controlling significance. Every must be had for the general banking situation in any given community.
city which may be selected as the center of a trade area must be of such If the city be important enough to have strong, successful National banks
importance as a trade center for the surrounding geographical territory and is surrounded by a community having a number of count*
, banks
as to draw to it a volume and a diversity of trade sufficient to form the po- whose principal bank correspondent is in such a city, that city might be
tential basis for a well-balanced branch banking system. This is what I made the centre of a regional trade area. In many such cases the geographihave termed the requirement for economic diversification. By this it is cal area involved might be not only less than that of a Federal Reserve
meant that the loans made by the bank to its customers in the trade area district but less in area than the State in which the city is situated. There
must rest upon the security of a wide range of business enterprises and in- may be found a sufficient economic Justification for several trade areas
dustrial pursuits. The bank should be able to draw its business from the whose principal territory is withing a single State. Having regard for
production of natural resources, agriculture, livestock, manufacturing, the situation that branch banking by National banks began with the
transportation by land and water, distribution, and communication. In branch banking limited to the city in which the bank is situated, it would
• each of these activities there would be further subdivisions of diversifica- seem the logical economic development to permit a natural growth of these
tion as, for example, the production of natural resources would include branch-banking systems into the territory where their influence in banking
• the various types of mining, oil, gas, timber, hydroelectric power and so on. is predominant rather than to proceed solely from the greatest metropolitan
'The essential weakness ofrural banking as we now have it lies in the danger centres of the country, which would give to relatively a few great metroaits complete dependence upon just one such economic activity. By virtue politan banks the exclusive privilege of branch banking in the country disof the smal geographical area of its operations its loans rest principally tricts and lesser cities. It would be highly desirable to preserve as much
upon one type of security. There is an insufficient economic diversification as possible the element of local autonomy in the establishment of trade
of Its loan portfolio. This objective can be attained in a branch system areas provided the areas are not so small as to sacrifice the principle of
of banking which taps a number of different types of security.
economic diversification.
It has been suggested that proper diversification can be obtained through
It is not meant to imply that trade area branch banking should be conthe purchase of investment securities on the general market. This pro- fined to those States in which branch banking by National banks Is now
cedure faces two obstacles. It presupposes a technical equipment which permitted within the city limits. The new policy of branch banking should
the rural bank does not possess and it would draw the funds of the bank be uniform in its operation throughout the nation, thereby giving to every
In too great a proportion away from the local field of the bank's operations rural community an opportunity of access to strong city banking facilities
to the detriment of its legitimate borrowers.
under National supervision and control.
In some sections of the country where industrial activity is concentrated
It may, therefore, be said that the following elements contribute to the
and where the population is dense there are offered a number of different definition of trade area branch banking;
economic pursuits of relative independence, the one of the other. In such
(1) The principal objective is to strengthen banking operations in the
a case the physical extent of the trade area of a commercial centre may be rural communities.
small as compared with another city in the more sparsely settled sections
(2) A secondary but not less positive result would be a strengthening of
where a greater territory may have to be embraced in order to gain the the entire banking structure of the country.
required diversification. Every city indeed, no matter how small, has a
(3) The surrounding geographical territory economically tributary to a
regional or local trade area but every such trade area would not be a suitable city and for which such city provides the chief market and financial centre,
field for branch banking. Under the plan herein recommended it would be may be described as its trade area.
necessary for the Committee proceeding under a general authority from
(4) Every city may be said to have a trade area but not every trade area
Congress to select those cities the trade areas of which meet the requirements is suitable for branch banking purposes.
for economic diversification. In this respect the Committee would be
(5) In order to lay the basis for a sound system of branch banking
dealing with an economic situation very much similar to that presented a trade area should embrace within Its physical limits a diversification
to the Committee which under similar authority laid out the Federal of economic adctivities in order that a bank operating branches throughReserve districts. The Federal Reserve districts vary in size according to out its extent may also acquire a diversification in the security for its
the density of population and the physical concentration of commercial loans.
and business activity.
(6) For branch banking purposes, therefore, only those trade areas
It will be recalled that Congress designated the Secretary of the Treasury, should be chosen which surround cities importance enough to be the
the Secretary of Agriculture, and the Comptroller of the Currency as a commercial centre of a territory sufficient to meet the requirement of
committee to lay out the Federal Reserve districts under instructions to economic diversification.
have"due regard to the convenience and customary course of business and
(7) Since the trade area under discussion is a regional economic area for
shall not necessarily be coterminous with any State or States. The dis- banking purposes, the status of the banks in a given city will furnish
may
created
be readjusted and new districts may from time to a guide to its character and extent, particularly the number and location
tricts thus
time be created by the Federal Reserve Board, not to exceed twelve in all." of the surrounding country banks for which they are the principal bank
This committee experienced no great difficulty in carrying out these instruc- correspondents.
tions of Congress. There appears no reason to doubt the ability of a similar
(8) It would not be a difficult undertaking for a committee composed
committee,such as I have recimmended, to map out the trade areas around of the Secretary of the Treasury, the Governor of the Federal Reserve
the principal cities in the United States.
Board and the Comptroller of the Currency to select the principal comThese trade areas might be termined regional economic or trade zones mercial centres in the United States for branch banking purposes.
to distinguish them from the wider geographical area with which the busi(9) Upon the selection of such a city the determination of the boundary
ness enterprises of such city have contact. Banks and business generally limits of its trade area would be a question of fact and could easily be
Is every large city may from time to time have trade relations and business discovered through a study of its banking operations and its general trade
transactions extending to every part of the country and indeed over the influence and position.
whole world. In contrast to this wider field there is an immediate geoSmall country banks need have no fear that they would be driven out
graphical territory surrounding every large city and reaching out into the of business through the establishment in their communities of de novo
outlying rural communities, a definite area which can be determined by branches by city banks. Such a procedure would be highly abnormal and
boundary lines embracing a population having customary access to such a it is inconceivable to me that any Comptroller of the Currency would
city as the principal market.
lend his office to its support. The natural development of rural branch
Such a trade area might in some cases overlap an adjacent trade area of banking would occur through the consolidation with or purchase of country
commercial
centre.
If
upon
a
determination
another
of fact it be found banks by the city branch banking institutions upon such terms as would
that the business of a given community flows in substantial volume to be agreeable to each. The conversion of the local bank into a branch
=ore than one city as a financial and business centre, it might be found of the city bank in this manner weld have no disturbing effect upon the
desirable to put such a community in more than one trade area. It would local banking situation.
seem sound to permit the establishment of branches to follow the natural
The type of branch banking here recommended would, as compared
flow of regional commerce and trade, and cases of such overlapping would with the presentsystem of unit banking,lead to a decentralization of banking
simply mean that a few communities might have branches emanating from resources. Within each trade area there would be a concentration of
more than one trade area centre.
local or regional banking capital and the best interests of the branch banking
As contrasted with the proposal for country-wide branch banking, trade- systems would compel the employment of such capital in the various
economic
banking
rather
would
follow
throughout the trade area. The present tendency under
than
communities
political
boundary
area branch
lines. County-wide branch banking could never form a sound economic our system of a large number of very small banks and a small number
basis for a National policy in banking. The county seat is often not the of very large and strong banks is for the bulk of the banking resources of
most important city in the county and in many cases it is more convenient the country to be concentrated in a few great metropolitan centres. Under
for trade to flow to an adjoining county. In a few cases it might be found trade area branch banking there would undoubtedly arise in the inland
that the county seat is in fact an important centre of trade but in such commercial centres regional hanks of sufficient strength to hold the banking
eases it will ordinarily have a stronger trade influence in the adjoining business originating within their trade areas.
counties than any city situated within them. County-wide branch banking
The enactment of legislation vesting authority in the Comptroller
would force banking into artificial channels and would be economically
unsound in those cases where the parent bank was of insufficient size to of the Currency to examine security or investment companies affiliated
national banking associations is recommended. These companies
depositors
or
safety
to
with
and
was
facilities
banking
situated
offer adequate
In a county which did not permit of a diversification in the banking business are generally so closely allied with the national association that it is not
always possible to ascertain the true condition of the national association
available to it.
There seems, therefore, no escape from the conclusion that rural branch without knowing the exact condition of its affiliate.
over
the
present
improvement
The following recommendations which were contained in my annual
system
of
rural
an
banking, in order to offer
banking, must proceed from a parent bank situated in a city of sufficient report to the Seventy-first Congress are renewed:
(1) That the law be so amended as to provide that the exercise offiduciary
economic importance to sustain, by virtue of the commerce and trade
within it and its surrounding economic zone, a well-managed hank of not powers shall be one of the corporate powers of a National banking association
subject
to the existing limitations in regard to the State law, dm., now
less than $1.000,000 capital.
• The suggestion for State-wide branch banking appears also economically contained in paragraph (k) of Section 11 of the Federal Reserve Act.
(2) To give the Comptroller supervision over National banking assounsound as the basis for a National policy. In many States there may be
found cities whose regional trade areas are embraced within the boundary ciations going into voluntary liquidation. Under the present law the
Comptroller's
authority is limited to the appointment of a receiver, prowill
be
lines of the State. On the other hand, however, there
found a great
number of important cities situated in such close proximity to State bound- vided a bank in liquidation should prove to be insolvent. Reports of the
JAN. 3 1931.]
FINANCIAL CHRONICLE
23
liquidating agent are not required under the law, although they are frequently furnished voluntarily. At present the liquidation of a National
bank may be carried on for a period of time and the bank may later prove
to be insolvent, necessitating the appointment of a receiver. Creditors
whose claims have been settled prior to such appointment may thus obtain
preference over other creditors. As a remedy for this condition it is
proposed that the activities of the liquidating agent of a National bank
be conducted under the supervision of the Comptroller and that he be
required to give bond and to render reports in the same manner as is required of a receiver until the affairs of a liquidating bank are-finally closed.
(3) That a law be enacted making it a criminal offense to maliciously
or with intent to deceive, make, publish, or circulate any false report
concerning any National bank or any other member of the Federal Reserve system which imputes insolvency or unsound financial condition,
or which may tend to cause a general withdrawal of deposits from such
bank or may otherwise injure the business or good-will of such bank.
A bill, satisfactory to the Treasury Department, was reported by the
Banking and Currency Committee of the House of Representatives at the
last session of Congress, but failed of passage.
The following recommendations with respect to the laws of the District
of Columbia are renewed:
(1) Giving the Comptroller the right and power to make regulations
governing savings banks or trust companies doing a banking business in
the District of Columbia with a penal provision for the enforcement ofsuch
regulation, the regulations to be limited so that they shall not in any case
place restrictions upon such banks which are not placed upon National
banks.
(2) Prohibiting the use of the word "bank" or the words "trust company" by any firm, copartnership, company, or corporation doing business
in the District of Columbia and not doing a banking or fiduciary business
under the supervision of the Comptroller of the Currency and providing,
in the event such title shall be used by a firm, copartnership, company, or
corporation doing a banking or fiduciary business, it shall be subject to
the approval of the Comptroller of the Currency.
(3) The corporations with their principal place of business outside of
the District of Columbia may not establish offices in the District of Columbia
and do a fiduciary business therein without the permission of the Comptroller of the Currency and without complying with the general conditions
of the corporation laws of the District which have been enacted for the
protection of those who do business with corporations with their principal
place of business in the District.
(4) While the building and loan associations in the District of Columbia
are examined and supervised by the Comptroller of the Currency, there
is no provision of law which prohibits any building and loan association
from organizing and doing business in the District of Columbia regardless
of its merits. I recommend that a law be passed which woulid prohibit
any building and loan association from doing business in the District of
Columbia or maintaining an office in the District of Columbia without
first securing the approval of the Comptroller of the Currency, and that
any violation of this provision shall constitute a penal offense and be
punishable in the same manner as now provided by the Act of April 26
1922, entitled "An Act regulating corporations doing a banking business
In the District of Columbia."
June 29 1929 and June 30 1930, and a detailed classification by Reserve
cities and States of bonds and securities other than United States owned on
June 30 1930. (In the appendix of this report appear also tables which
disclose, by Reserve cities and States, similar classifications of bonds and
securities other than United States owned by National banks on Dec. 31
1929, March 27 and Sept. 24 1930.)
The following further extracts are taken from the Comptroller's report:
Number of National Banks, Capital, Surplus, Net Addition o Profits, Dividends, and
Ratios, Years Ended June 30 191410 1930.
June 29 1929. June 30 1930.
Domestic securities:
State, county and municipal bonds
Railroad bonds
Other public service corporation bonds
All other bonds
Stock of Federal Reserve Bank
Stock of other corporations
Collateral trust and other cdsporatIon notes
Municipal warrants
All other, including claims, judgments, da,
Foreign securities:
Government bonds
Other foreign securities, Including bonds of municipalities, &a
$757,207,000
592.203.000
694,412,000
881,355,000
93,012.000
100,459,000
119.010,000
81,888,000
39,053,000
$791,954,000
660,628,000
783.788,000
891,625,000
100,780,000
111,595,000
122,568,000
104,381,000
39,205,000
244,269,000
267,816,000
249,807,000
259,890.000
$3,852,675,000 $4.134,230,000
2,803,860,000 2,753,941.000
Total
United States Government securities
Total bonds and securities of all classes_
$6,656,535,000 36,888.171,000
National Bank Investments in United States Government Securities and other Bonds
and Securities, &c., Loans and Discounts (Including Rediscounts), and knee
Charged Off on Account of Bonds and Securities, &c., and Loans and Discounts.
Years Ended June 30 1918 to 1930. inclusive.
Percentage of
Losses
Charged Off
Year
Ended
June 30
Losses Losses
On
United
Total
Loans and Charged Charged On
States
Other
Bonds Discounts off on off on Bonds Acct.
GovernBonds
and Be- (Including Bonds Loans and Be Loans
curities & Diament
and Be- curdles.
Redis- and Be- and
Securities curdles.
ctc.
counts). curdles, DU- to Total counts
ctc. counts. Bonds to Total
and Be Loans
curdles & Di:Owned. counts.
1,000
1,000
1,000
1,000
1,000 1.000
Dollars. Dollars, Dollars. Dollars, Dollars. Dollars.
1918___ 2,129,283 1,840,487 3,969,770 10,135,842 44,350 33,964
1919_ __ 3,176,314 1,875,609 5.051.923 11,010,206 27,819 35,440
1920_ __ 2,269,575 1,916,890 4,186,465 13,611,416 61,790 31,284
1921_ _ _ 2,019,497 2,005,584 4,025,081 12,004,515 76,179 76,210
1922_ _ _ 2,285.459 2,277,866 4,563,325 11,248,214 33,444 135,208
1923_ __ 2,693,846 2,375,857 5.069,703 11,817,671 21,890 120,438
1924_ 2,481.778 2,600,550 5,142,328 11,978,728 24,642 102,814
1925_ _.2,536,767 3,193,677 5,730,444 12,674,067 25,301 95,552
1926_ __ 2,469,268 3,372,985 5,842,253 13,417,674 23,783 93,605
1927._ 2,596,178 3,797,040 6,393,218 13,955,696 27,579 86,512
1928_ 2,891,167 4,256,281 7,147.448 15,114,995 29,191 92.106
1929_ __ 2,803.860 3,852,675 6,656,535 14,801,130 43,458 86,815
1WIn
9 711 041 4 1R4 9Rn 6 RRR 171 14 557 712 61 171 101 517
NATIONAL BANKS IN THE TRUST FIELD.
INVESTMENTS OF NATIONAL BANKS.
The tables following disclose a summary of the investments of National
banks in United States Government and other bonds and securities held
%
0.34
.32
.23
.63
1.20
1.02
.86
.75
.70
.62
.61
.59
RQ
70
Ratios.
OW.
..01,00,00WOOWO.P,
1,0F,
-0000101W014V6V0010-0
10.
1r,0,-,
0001OrP.001.40N-4,
.NCT.010000W0000,1,..0000.,1
1,000
Dollars.
7,453 1,063,978
7,560 1,068,577
7,571 1,066,209
7,589 1,081,670
7.691 1,098,264
7,762 1,115,507
8,019 1,221,453
8,147 1,273,237
8,246 1,307,199
8.238 1,328,791
8,085 1,334,011
8,070 1,369,385
7,978 1,412,872
7,796 1,474.173
7.691 1,593,856
7,536 1,627.375
7,252 1,743,974
..o441-4-ObbbcDcom..4.4
.
.
COTIOCOGOOCCO.,000f0f00,0
WNION.,,
,N.WW.
0tOW.40,0114WW.0COM....10.Ali,
11,115,1111.11111
111111111.1 /I /I
I
Net
Year NumAddiEnded ber of Capital. Surplus, lion to
June30 Banks.
Profits
I
The National banks in 1930 continued to show steady and substantial
progress in the development of trust activities. Two thousand, four hundred and seventy-two banks, with capital, surplus, and undivided profits
aggregating $3,123,303,341, and banking resources totaling $23,529,097,073, had authority to administer trusts on June 30 1930, which represented
34% of the number of banks and 80% of the total banking resources of
the 7,252 National banks in operations on that date. Of the number
authorized to exercise trust powers under section II (k) of the Federal
Reserve Act, 1,829 banks had established trust departments and were
administering 79,912 individual trusts with assets aggregating $4,473,040,926, and in addition were administering 11,511 corporate trusts and
acting as trustees for outstanding note and bond issues aggregating $11.803,717.370. For the fiscal year ended June 30 1930, trust department
gross earnings aggregating $22,765,000 were reported.
Compared with 1929, these figures reflect a net increase during the
year of 30 in number of National banks having authority to exercise trust
powers; an increase of 95, or 5%, in the number administering trusts; an
increase of 15,435, or 20%, in the number of trusts being administered;
an increase of $235,392,000, or 534%, in the volume of individual trust
assets; an increase of $4,433,000,000, or 60%,in the volume of trusteeships
under bond issues, while the gross earnings from trust department operations increased $2.182,000, or 11%, over the previous year.
The rapid strides which National banks have made in the trust field are
emphasized by considering the activities during the past year with those
of 1926. Compared with that year, these figures represent an increase
during the four-year period of 446, or 22%, in the number of National
banks authorized to exercise trust powers; an increase of 725, or 66%. in
the number of banks actively administering trusts; an increase of 65,370,
or 250%,in the number of trusts being administered; an increase of $3.550,000,000, or 385%. in the volume of individual trust assets under administration; an increase of $9,340,000,000, or 379%, in the volume of hood
Issues outstanding for which National banks are acting as trustees, while
the gross earnings for the same period increased $14,510,000, or 176%.
The increasing interest in the creation of insurance trusts is evidenced
by the fact that 153 National banks were acting as trustees under 396
agreements involving the administration of $13,495,009 in proceeds from
insurance policies, while 680 National banks had been named trustees
under 13,543 insurance trust agreements not operative supported by insurance policies with a face value aggregating 3586,706,435. Compared
with 1929, the insurance trust figures represent an increase of 30% in the
number of National banks administering insurance trusts, an increase of
46% in the number and 19% in the volume of insurance trust assets under
administration.
The number of banks which had been named trustees under insurance
trust agreements not operative increased during the year 22%,the number
of insurance trust agreements not yet operative naming National banks
trustees increased 42%, while the volume of insurance represented by the
face value of the policies trusteed under those agreements increased 56%
over 1929.
Branches of National banks numbering 187 were actively engaged in the
administration of 15,092 trusts, with individual trust assets aggregating
$1,340,564,760, and were active as trustees for bond and note issues outstanding amounting to $3,151.175,430.
%
1.12
.55
1.48
1.89
.73
.43
.48
.44
.41
.43
.41
.65
Dirtdends
1,000 1,000
Dollars. Dollars.
149,270 120,947
127,095 113,707
157,544 114,725
194.321 125,538
212,332 129,778
240,366 135,588
282,083 147,793
216,106 158,158
183,670 165,884
203,488 179,176
195,706 163,683
223,935 165,033
249,167 173,753
252,319 180,753
270,158 205,358
301,804 222,672
246,261 237,029
Net Addition
DM- Dirtto Profits.
dends dends
to Capto
To To CapCapital. Cat & Capt- itat and
Burp,
tat, Surplus
%
11.37
10.63
10.76
11.61
11.82
12.15
12.10
12.42
12.69
13.48
12.27
12.05
12.30
12.211
12.88
13.68
13.59
%
6.80
6.33
6.38
6.79
6.78
6.83
6.70
6.88
7.04
7.47
6.78
6.63
6.65
6.62
6.81
7.17
7.11
%
14.03
11.89
14.78
17.96
19.33
21.55
23.09
16.97
14.05
15.31
14.67
16.35
17.63
17.12
16.95
18.55
14.12
%
8.39
7.08
8.76
10.52
11.09
12.11
12.78
9.40
7.79
8.48
8.11
9.00
9.54
9.24
8.96
9.72
7.38
EARNINGS,EXPENSES AND DIVIDENDS OF NATIONAL BANKS.
A comparative statement of the earnings, expenses and dividends of
National banks for fiscal years ended June 30 1929 and 1930. and statements showing the capital, surplus and the earnings, expenses, &c., of
these associations in Reserve cities and States and Federal Reserve districts June 30 1930, follow. (Similar tables for the 6-month periods ended
Dec.31 1929 and June 30 1930 aro published in the appendix of this report.)
EARNINGS, EXPENSES AND DIVIDENDS OF NATIONAL BANKS FOR
THE FISCAL YEARS ENDED JUNE 30 1929 AND 1930.
June 30 1929. June 30 1930.
(7,536 Banks) (7,252 Banks)
Capital stock
$1,627,375.000 $1,743,974,000
Surplus
1,479,052.000 1,591,339.000
222,672.000
237,029,000
Dividends declared
Gross earnings:
Interest and discount on loans
$894,032,000
320,416.000
Interest (Including dividends) on investments
22,802,000
Interest on balances with other banks
18,069,000
Domestic exchange and collection charges
12,439,000
Foreign exchange department
Commissions and earnings from insurance premiums
896,000
and the negotiation of real estate loans
20,583,000
Trust department
35,085,000
Profits on securities sold
100,103,000
Other earnings
Total
Expenses paid:
Salaries and wages
Interest and discount on borrowed money
Interest on bank deposits
Interest on demand deposits
Interest on time deposits
Taxes
Other expenses
Total
$903,858,000
299,042,000
23,140.000
18,256.000
13,535,000
868,000
22,765,000
41,733,000
104,144,000
$1.424,485,000 $1,427,341,000
$271,805,000
35,548,000
46,462,000
126,742,000
281,012,000
65.967,000
159,346.000
$276,089,000
27,671,000
42,119,000
128,719,000
287,184,000
66,123,000
171,161,000
$986,882,000
$999,066,000
24
FINANCIAL CHRONICLE
June 30 1929. Juue 30 1930.
(7,536 Banks) (7,252 Banks)
$437,603,000 $428,275,000
Net earnings
Recoveries on charged-off assets:
Loans and discounts
Bonds, securities, Ac
All other
Total
18,149,000
7,828,000
9,666,000
15,680.000
7,195,000
8,746,000
$473,246,000
$459,896,000
$86,815,000
43,458,000
25,132,000
240,000
15,797,000
$103,817,000
61,371.000
28,803,000
268,000
19,376,000
Losses and depreciation charged off:
On loans and discounts
On bonds, securities, .lic
On banking house, furniture and fixtures
On foreign exchange
Other losses
Total
Net addition to profits
$171,442,000
$213,635,000
$301.804,000
$246,261,000
RESOURCES AND LIABILITIES OF ALL REPORTING BANKS OTHER
THAN NATIONAL ON OR ABOUT JUNE 30 1926-1930.
The resources and liabilities of all reporting banks other than National
June 30 1926 to 1930 are shown in the following statement:
[In thousands of dollars.[
1926
(20,168
Banks).
1927
(19,265
Banks).
1928
(18,522
Banks).
1929
(17.794
Banks).
1930
(16,827
Banks).
$
$
Resources$
5
$
Loans and discounts (including redbscounts)_-- 22,583,356 23,314,682 24.397,072 26,575,139 25,572,918
46,664
33,662
40,269
39,751
Overdrafts
39,986
9,972,888 10,861,875 11,624,366 10,692,203 11,056,557
Investments
860,208
899,887
942,467 1,006,770 1,022,607
Banking house, furn.& fixt
Real estate owned other
243,048
283,656
278,287
271,977
300,567
than banking house_ _....
643,692
572,732
521.925
636,569
Cash in vault
523,463
Reserve with F. R. banks
or other Reserve agents_ 1,545,415 1,526,902 1,652,457 1,847,249 2,011,426
1,859,627 1,999,498 1,730,441 1,713,338 1,640,656
Due from banks
Exchanges for clear'g house
971,165 1,042,167
789,766
906,766 1,587,148
and other cash num.__
865,711
944,594 1,038,232 1,150,246 1,148,257
Other resources
39,577,738 41,550,615 43,066,089 44,732,277 44,903,585
Total
Liabiiiiies1,860,431 1,902,325 1,931,666 2.169,603 2,145,445
Capital stock paid in
2,273,069 2,507,582 2,725,834 3,132,646 3,377,660
Surplus
Undivided profits--net
585,584
622,785
668,924
609,882
608,931
Reservesfor dividends,cona
a
tingencies, &c
a
80,651
173,314
Res,for int., taxes & other
aa
exp. accrued dr unpaid_
a
68,808
43,608
Due to banks
1,431,149 1,432,400 1,343,011 1.453,265 1,657,299
Certified & Cashiers'checks
& cash letters of credit &
travelers' checks outst'g 0170,245 0614,832 0449,614
464,880
876,950
Demand deposits
8,809,792 12.897.523 13,302,856 13,845,896 13,172,315
Time deposits (Including
postal savings)
18,087,718 19,066.069 20,241,471 20,470,522 20,712,790
United States deposits.....
43,323
54,131
36,900
57,869
41,758
Deposits not classified..... 4.871,986
895,730
399,938
20,121
117,199
Total deposits
33,414,213 34,060.735 35,773,790 36,312,553 36,578,311
Bills payable & rediscounts
501.186
461,466
764,961
916,196
436,784
&greements to repurchase
c
securities sold
c
c
5,863
39,505
kcceptances executed for
customers
c
c
c
57,294
74,962
)ther liabilities
0943,255 01,095,722 01,200,914 1,378,781 1,425.065
Total
39,577,738 41,550,615 43,066,089 44,732,277 44,903.585
a Included In undivided profits. b Cash letters of credit in 1926, 1927 and 1928
reported in "other liabilities." c Included in "other liabilities."
RESOURCES AND LIABILITIES OF ALL REPORTING NATIONAL BANKS
ON OR ABOUT JUNE 30 1926-1930.
The resources and liabilities of all reporting National banks June 30 1926
to 1930 are shown in the following statement:
[In thousands of dollars.[
ResourcesLoans and discounts (including rediscounts)___.
Overdrafts
Investments
Banking house, turn. dr fixt
Real estate owned other
than banking house_ _ _ _
Cash in vault
Reserve with F. R. banks
or other Reserve agents_
Due from banks
Exchanges for clear'g house
and other cash Items....
Other resources
1926
(7,978
Banks).
1927
(7,796
Banks).
1928
(7,691
Banks).
1929
(7,536
Banks),
1930
(7,252
Banks).
$
5
3
$
$
13,417,674 13,955,696 15,144,995 14,801,130 14,887,752
9,719
9,788
10,138
10,193
9,452
5,842,253 6,393,218 7,147,448 6,656,535 6,888,171
680,218
632,842
721,229
747,684
787,750
115,869
359,951
115,817
364,204
125,680
315,113
118,839
298,003
1,066,396 1,139,000
506,901
550,000
963,332
740,954
[In thousands of dollars.[
1926
(28,146
Banks).
785,006 1,297,487
823,700 1,003,491
1927
(27,061
Banks).
1928
(26,213
Banks).
1929
(25,330
Banks).
1930
(24,079
Banks).
Resources$
$
$
$
$
Loans and discounts (including redIscounts)_-_ 36,001,030 37,270,378 39,542,067 41,376,260 40,460,670
Overdrafts
49,470
43,450
50,407
56,857
49,438
Investments
15,815,141 17,255,093 18,771,814 17,348,738 17,944,728
Banking house, furn.& ftxt 1,493,050 1,580,105 1,663,696 1,754,454 1,810,357
Real estate owned other
than banking house
358,917
399,473
403,967
390,816
425,151
Cash In vault
996,520 1,007.896
887,845
819,928
865,970
Reserve with F. R. banks
or other Reserve agents_ 2,926,586 2,932,954 3,105,840 3,192,200 3,433,102
Due from banks
3,842,475 3,967,448 3,616,408 3,567,525 3,994,325
Exchanges for clear'g house
2,037,561 2,181,167 1,753,098 1,691,772 2,884,635
and other cash items
1,372,612 1,494,594 1,779,186 1.973,946 2,151,748
Other resources
Total
64,893,362 68,132,558 71,574%328 72,172,505 74,020,124
LiabilitiesCapital stock paid in
3,273,303 3,376,498 3,525,522 3,796,978 3,880,419
Surplus
3,471,968 3,764,527 4,145,529 4,611,698 4,968,999
Undivided profits-net... 1,063,171 1,131,206 1,226,361 1,097,386 1,154,804
Reservesfor dividends,contingencies, Sic
a
a
a
161,483
268,276
Res. for int., taxes & other
exp. accrued & unpaid_
964,618
970,326
983,753
142,776
122,737
National bank circulation_
651,155
650.946
649,095
649,452
652,339
Due to banks
4,330,605 4,289,337 4,081,028 3,629,197 4.337,120
Certified & Cashiers'checks
& cash letters of credit &
travelers' checks outst'g c724,190 c1,205,821 c882,519
837,430 1,615,277
Demand deposits
19,553,122 23,784,702 24.306,651 24,350,164 24,098,516
rime deposits (including
24,401,527 26,381,693 28.538,109 28,787,617 29,465,361
postal savings)
187,827
Jolted States deposits
194,024
222.816
286,112
213,722
Deposits not classified_d
4,871,986
895,730
399,938
20,121
117,199
rotal deposits
c54069.257 c56751,307 c5843i,061 57,910,641 59,847,195
3fils payable & rediscounts
923,142
829,508 1,566,146 1,630,703
665,817
Lgreements to repurchase
securities sold
03,489
93,529
97,217
55,523
47,678
Lcceptances executed for
customers
9221,131 9248,184 0411,763
449,917
585,969
Aber liabilities
e1,152,128 e1,306,527 el,527,88l 1,665,948 1,816,891
Total
64,893,362 68,132,558 71,574,328 72,172,505 74,020,124
a Included in undivided profits. b For national banks only; figures for banks
other than national included in undivided profits. c Revised to include cash letters
of credit sold by national banks and outstanding. d For banks other than national.
e Includes cash letters of credit sold by banks other than national and outstanding.
PRINCIPAL ITEMS OF RESOURCES AND LIABILITIES OF ALL REPORTING BANKS IN CONTINENTAL UNITED STATES. AS COMPARED
WITH SIMILAR DATA FOR MEMBER BANKS OF TIIE FEDERAL
RESERVE SYSTEM, ON OR ABOUT JUNE 30 1930.
Member Banks.
Items.
All
Reporting
Banks a
24,012
Banks.*
8,315
Banks.*
P. C. P.C.to All Mutual Private
Reporting Savings Banks b
to All
Reporting Banks, a Banks, b 361
606
Banks. a Except
Banks.*
Mug. Bar. Banks.*
& Private.
Loans_c
$40,315,822 $25,213;770 62.54
73.39 $5,806,025 $65.467
74.54
Investments
17,901,737 10,441,889 58.33
3,872,417 21,749
852,699
34,404 2,063
484,262 56.79
59.33
Cash
3,856,979 2,721,997 70.57
70.73
Capital
8,594
Surplus and un1,053,494 8,593
75.77
divided profits. 6,105,055 3,820,872 62.59
Deposits(demand
72.32
53,369,680 31,873,955 59.72
9,215,563 78,474
and time)
Aggregate res'ecs 73,701,322 47,906,740 65.00
75.69 10,295,308 114,606
•000 omitted. a Exclusive of banks in Alaska and insular possessions. b Included in all reporting banks In column 1. c Including overdrafts.
MONEY IN THE UNITED STATES.
Statements showing the stock of money in the United States in the years
ended June 30 1914 to 1930; the classification of money in circulation
June 30 1930; and imports and exports of merchandise, gold and silver
in the calendar years 1914 to 1929 and tho nine months ended Sept. 30 1930
follow:
STOCK OF MONEY IN THE UNITED STATES, IN THE TREASURY, IN
REPORTING BANKS, IN FEDERAL RESERVE BANKS AND IN
GENERAL CIRCULATION, YEARS ENDED JUNE 30 1914 TO 1930.
124,584
342,507
1,381,171 1,406,052 1,453,383 1,344,951 1,421,676
1,982,848 1,967,950 1,885,067 1,854,187 2,353,669
[VOL. 132.
Year Ended
June 30.
Coin coin & Other Coin & Other Held by or for In Gen'l Circulation
Money in
and
Money in Federal Res've Era. of Amounts
Other
Treasury
Reporting
Banks and
Held by Reporting
Money as Assets.a
Banks.0
Agents.
Banks & Federal
in the
Reserve Banks.
United
States, Amt. P. C And, P. C'. Amt, P. C And. P. C. Peep
Total
25,315,624 26,581,943 28,508.239 27,440,228 29,116,539
a Included in undivided profits. I Revised to include cash letters of credit
Outstanding.
RESOURCES AND LIABILITIES OF ALL REPORTING BANKS ON OR
ABOUT JUNE 30 1926-1930.
The resources and liabilities of all reporting banks June 30 1926 to 1930
are shown in the following statement:
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
4,..POCA.M00,0.0N0-400,0
25,315,624 26,581,943 28,508,239 27,440,228 29,116,539
.1.454aWi40.41;CJi•D;-.
•
•
*
*
*
3,797.8 338.4 8.91 1,630.0 42.92 ____ ____ 1,829.4
18.46
4,050.8 348.2 8.60 1,447.9 35.74 383.0 9.45 1,871.7
18.56
4541.7 299.1 6.59 1,472.2 32.41 593.3 13.06 2,177.1
21.24
5678.8 269.7 4.75 1,487.3 26.19 1,342.7 23.64 2,579.1
24.74
Liabilities,
6,906.2
363.5
5.27 882.7 12.78 2,061.0 29.84 3,599.0
33.97
1,412,872 1,474,173 1,593,856 1,627,375 1,743,974
Capital stock paid in
7688.4 585.1 7.61 981.3 12.76 2,226.7 28.96 3,895.3
1,198,899 1,256,945 1,419,695 1,479,052 1,591,339
36.67
3urplus
8,158.5 490.7 6.01 1,047.3 12.842,200.2 26.97 4,420.3
41.50
557,437
487,504
545,873
477,587
508,421
Undivided profits-net
8 174.5 463.6 5.87 926.3 11.33 2,799.9 34.25 3,984.7
36.84
Reservesfor dividends,con8,276.1 406.1 4.91 814.0 9.84 3,406.8 41.16 3,649.2
80,832
a
94,962
33.22
a
tingencies, dm
8,702.8 386.5 4.44 777.1 8.93 3,493.0 40.14 4,046.2
36.34
ftes, for int., taxes & other
8,846.5 359.4 4.06 900.8 10.18 3,637.8 41.12 3,948.5
73,968
79,129
35.01
64,618
70,326
83,753
exp. accrued & unpaid_
8,303.6
363.8
4.38
938.3
11.30
3,124.6
37.63 3,876.9
649,452
652,339
33.95
651,155
650,946
649,095
VatIonal bank circulation_
8,429.0 353.2 4.19 975.2 11.57 3,190.5 37.85 3.910.1
33.82
2,899,456 2,856,937 2,738,017 2,175,932 2,679,821
Due to banks
8,667.3 350.9 4.05 985.1 11.36 3,465.1 39.98 3,866.2
33.03
Certified & Cashiers'checks
8,118.1 351.3 4.33 866.5 10.67 2,970.2 36.59 3,930.1
33.18
& cash letters of credit &
8,538.8 373.1 4.37 799.1 9.36 3,419.4 40.04 3,947.2
32.93
372,550
738,327
432,905
553,945
590,989
travelers' checks outst'g
8308.6 247.2 2.98 853.8 10.28 3,537.3 42.58 3,668.2
29.77
10,743,330 10,887,179 11,003,795 10,504,268 10,926.201
Demand deposits
rime deposits (including
• In millions of do lam. a Publ c money in national bank depositories to the
6,313,809 7,315,624 8,296,638 8.317,095 8,752,571 credit of the Treasurer of the United States not included. b Money in banks of
postal savings)
171,964 Island possessions not included.
228,243
185,916
inited States deposits_ _ _ _
144,504
139,843
rotal deposits
120655,044 621790,572 122657.271 21,598,088 23,268,884
NOTE.-Population estimated at 109,833,000 in
in 1923:
3111s payable & rediscounts
801,185
714,507
229,033 112.777,000 in 1924, 114,195,000 in 1925, 115,614,000 1922. 111,358,000
368,042
421,956
in 1926, 117.034.00010 1927
igreements to repurchase
118,455,000 in 1928, 119,878,000 in 1929 and 123,215,000 in 1930.
7,217
8,173
3,529
49,660
securities sold
3,489
Lcceptanees executed for
511,007
411,763
392.623
customers
248,184
221,131
Senator Couzens Criticizes President Hoover's Action326,967
287,167
391,826
inter liabilities
210,805
208,873
Total
Call Action Unethical.
Senator Couzens of Michigan, Chairman of the Senate
Committee on Interstate Commerce, criticized President
Hoover's public endorsement of the consolidation plan.
The statement of Senator Couzens given out Dec. 31 reads
as follows:
JAN. 3 1931.]
FINANCIAL CHRONICLE
Yesterday the President issued a statement supporting the plan for
consolidation of the railways in official classification territory (except
New England) into four different systems, arranged by
the representatives of the Pennsylvania, New York Central, Nickel
Plate and Baltimore & Ohio Railroads.
This in spite of the fact that the Senate on May 21, 1930, adopted
a
resolution to suspend all railroad consolidations under certain conditions
by a vote of 46 to 27, with twenty-three not voting. This resolution
went to the House, where it was reported by the Committee on Interstate and Foreign Commerce in amended form, and is now
on the
House calendar.
This, in my judgment, indicated the Congress was not in favor of
proceeding with further consolidations until Congress had had an opportunity to make further investigation.
Now Awaiting Committee Report.
A confirmation of this view is established by the fact that on June
16, 1930, the Senate passed a resolution, authorizing the Committee on
Interstate Commerce to make an investigation of what had been accomplished by consolidations and to make a report to the Senate.
The Committee on Interstate Commerce has since then been making
careful inquiry based on the resolution. A tentative report will be
ready to submit to the Committee within a few weeks. Until that report
is made and studied there will be no opportunity to discuss it.
The merits of the proposed consolidation cannot be passed upon,
because the plan has not been submitted to the public or to the Interstate
Commerce Commission, and until that is done, of course, I will not
be in a position to comment on this proposed consolidation.
Ethics of Executive Influence.
While I hesitate to criticize the ethics of the President of the United
States, the issuance of this statement by him in my judgment is most
unethical. In the concluding paragraph of the President's statement
he says: "The plan, of course, must be submitted to the Interstate
Commerce Commission, who have the independent duty to determine
if it meets with every requirement of public interest."
In view of the President's support of the plan, it is questionable
whether the "independent duty" of the Commission can be ascertained.
Every one knows the power and influence of Presidential approval and
every one knows that these Commissioners owe their positions to the
President of the United States, and while it is the duty of the Senate
to confirm these appointments, no name can get to the Senate without
first having been selected by the President of the United States.
There is rapidly growing a public opinion that the President determines the action of these independent commissions, and such opinion
will not be dissipated by the issuance of the present statement of the
President.
Doubts Aid to Business in 1931.
As stated previously, I have not seen the plan and so am not in a
position to say whether or not in my judgment it is in the public interest, but I do say that if this proposed consolidation is not greater
in the public interest than the consolidations already accomplished, or
approved, as in the case of the consolidation of the Great Northern and
Northern Pacific, we may not hope for much, if anything.
It is unfortunate that this great consolidation proposal is based upon
the great suffering now because of unemployment.
It is inconceivable to me that this great consolidation proposed can be
consummated within the year 1931 and therefore will not have much if
any effect upon the recovery of business, or enlarge the opportunity for
employment.
Some railroad presidents have already stated that they have gone much
further than they were justified in making capital investments to take
care of the present volume of business, or even the volume of business
which we had in 1928 and the early part of 1929.
If such be the case, there does not seem to be much hope for large
capital expenditures as stated by the President. Certainly this plan does
not seem to hold out any hope for increased employment or increased
business.
As to Railroad "Economies."
Whether or not the economies outlined by the President will materialize
is questionable, but there do appear to be other economies not brought
around by consolidation that might be practiced by the railroads.
For example, during the past ten years there has been no reduction in
the price of rail by the steel companies to the railroads. I am informed
that they have been paying $43 per ton for steel rail during all of this
period, while other steel products have been reduced on an average of 20%.
I am informed that approximately $90,000,000 have been spent by the
railroads for steel rails, and had that been reduced the same percentage
s other steel products, the saving of the railroads would have been
18,000,000.
The fact that all companies seem to have been charging the railroads
$43 per ton would make it appear that there must have been some colusion between the railroads and the steel companies.
There is also a practice engaged in by the railroads of letting much
f their work be done without securing competitive proposals and this
ertainly cannot have been done in the public interest.
To Watch for "Public Interest."
I fully recognize some of the difficulties that the railroads are now
ncountering by competition by other means of transportation, but this
s an experience no different than that with which other industries
have
o contend.
I have evidenced my interest in attempting to solve some of these
roblems by my effort to get Congress to adopt legislation to
regulate
us operation, but because of the diversity of opinion existing in the
nate nothing has yet been accomplished.
The putting together of some fifty railroads in the official classification
erritory will involve a great many problems, and the solution of these
roblems by the Interstate Commerce Commission will be watched with
reat interest to see whether or not the President's claims that this conolidation is in the public interest are warranted.
In a supplemental statement issued Dec. 31, Senator
ouzens made another attack to the effect that the conolidation plan was "more of a proposal to help them (the
ailroads) out of their financial difficulties than it is in
he public interest." The statement follows:
25
It is reported that some of the high finance practiced by the
railroads
during the past ten years has reacted against their financial
interest,
that while they should have been endeavoring to operate and
manage
railroads efficiently they have been really engaged in great financial undertakings, and this proposal is more of a proposal to help them out of their
financial difficulties than it is in the public interest.
I am just in receipt of a telegram from a Western Governor, as
follows:
"Students of transportation question viewing subject from standpoint
of public interest will be appalled at proposal to consolidate railroads
Eastern territory into four systems. These four proposed systems collected in 1928 nearly 45% of total income all railroads United States.
This proposal is greatest concentration essential industry into few hands
ever contemplated.
"Four-system plan was not contemplated by Professor Ripley of Harvard, who made original consolidation plans. Five systems were proposed
by Interstate Commerce Commission which revised the Ripley plan.
Five systems were contemplated by Interstate Commerce Commission in
report one year ago and only one out of eleven members of commission
at that time indicated support of four-system plans.
"Four-system plan is contrary to law in that it will reduce competition and change the channels of trade and is open to objection on that
score as well as the one previously mentioned. Possibly the great influence of the President may cause the Interstate Commerce Commission
to surrender its independence and stultify itself by approving plans which
it has consistently rejected heretofore.
"Aside from the New York banking interests and the interests in
control of the four proposed railroads I have never heard any expression
approving the four-system plan. It is not in the public interest and I
approve your position as quoted in the newspapers opposing it."
It is really too bad that high finance and permanent railroad consolidation should be proposed at the expense of human misery. It is in
reality worse than playing politics at the expense of human misery,
because politics is a transient affair, while the proposed undertaking
seems to intend to tie the public up with it in perpetuity.
Senator
Fess
Replies to Senator Couzens—Upholds
President Hoover's Stand.
Senator Foss, through the Republican National Committee, replied to Senator Couzens saying:
As one member of the Senate Interstate Commerce Committee, I
wish
to state that Senator Couzens' publication this morning (Dec. 31),
is
unjustified. The President has done an enormous service to the country
in securing a forward step in solution of the railway problem, especially
in these times when we so sorely need increased stability and enlarged
employment.
In this step the President has directly followed the desire that Congress
has expressed in the law, that the railways should initiate consolidation
proposals to the Interstate Commerce Commission. He has succeeded
where there has been ten years of failure in what the act of 1920 authorized.
He has taken no position on the details of the plan. He has
scrupulously stated that "the plan must be submitted to the Interstate
Commission, who have the independent duty to determine ifCommerce
it meets
with every requirement of public interest."
Mr. Couzens, without waiting to hear the full plan, or hearing
anything as to its values, being himself opposed to consolidations as
provided
by law, is endeavoring to prevent the Interstate Commerce Commission
from enforcing its independent functions. He is in fact saying that
even if you find merit in the plan now proposed you must discard it
because the President took the initial step in requesting the railways to
present the plan; that you must discard it to show your independence
from the President.
In other words, the Senator, perhaps without thinking, is directly intimidating the Interstate Commerce Commission order to carry out his
private views, which are opposed to the intent of the law.
Senator McKellar Also Criticizes President Hoover's Action
Senator McKellar in his criticism of President Hoover
says:
As to the merits of the proposed railroad consolidation I am not advised. The duty of ascertaining such merits, the Congress by law devolved upon the Interstate Commerce Commission and not upon the
President.
The President has apparently in this case taken over the duties of
the Interstate Commerce Commission and speaks in advance for that
commission. In all events, he prejudges the case for that commission,
and all the commission now has to do is to put the President's conclusion
into effect.
The only real ground for such consolidations mentioned by the President is "economies." Some will construe this to mean the letting out of
many employes. Usually a merger has that effect, whatever guarantees
are given to the contrary at the time of merger.
There is no indication how the public interest will be subserved by
such a merger. It may be of much benefit to the four big railroads
mentioned. In my judgment, it would have been better for the President
to let the Interstate Commerce Commission, the duly constituted authority,
pass upon the merits first. That is the law.
Growth of Pipe Lines—Possible Demand of 15,000,000 or More Tons of Steel Pipe for Transmission of Oil in Next Five Years.
The pipe-making division of the steel industry is promised
a probable demand for 15,000,000 to 20,000,000 tons of steel
pipe in the next three to five years, as a reward for its contribution of better pipe for transmission of oil, natural gas
and gasoline over distances far greater than formerly deemed
possible. This is the conclusion of Arthur G. McKee &
Since my statement this morning I.have received information that
e railroad consolidation plan entered Into by the New York Central, Co., engineers, Cleveland, who have just completed a study
e Baltimore & Ohio, the Pennsylvania and the Van Sweringens is more of pipe lines and factors affecting their efficiency. As to
e result of high finance than it is in the public interest.
the conclusions resulting from the study it is stated:
26
FINANCIAL CHRONTCLE
Until 1927 a line for transmission of gas more than 250 miles was considered an engineering phenomenon, while at present lines up to 1,200 miles
are under construction. This has been made possible by the development
of electrically welded steel pipe and seamless pipe, which will withstand
high pressures and which have largely replaced screwed lapweld pipe.
Four electrical welding processes have been developed, according to
Corp., Milthe McKee report, including the arc weld of the A. 0. Smith
n,
waukee; electric resistance weld of the Republic Steel Corp., Youngstow
n,
Ohio; induction weld of the Youngstown Sheet & Tube Co., Youngstow
Ohio; and arc weld of the National Tube Co., Pittsburgh.
at
1,500,000
estimated
is
n
The annual capacity of the Smith corporatio
while the other
tons, and that of the Republic Steel Corp. is 420,000 tons,
The value of
two producers still are developing their production units.
the
same weight
the new electric welded pipe lies in greater strength for
cheaper layconsequent
and
and absence of weld weakness, longer lengths
ing costs.
States is nearly
Present potential pipe-making capacity in the United
tons; buttweld,
8,000,000 tons, divided as follows: Lapweld, 2,900,000
tons. Elec2,200.000
weld,
932,000 tons;seamless, 1,735,000 tons; electric
nothing to second place
trically welded pipe has moved from practically
not increased its
in the last three years. In that time lapweld pipe has
production.
800 pounds
withstand
to
diameter,
Electrically welded pipe 16 inches in
less than lapweld, a
per square inch pressure, weighs 157 tons per mile
per mile for
saving of about $11,000 per mile for cost of pipe and $2,000
freight charges.
ed
or under
contemplat
lines
pipe
Important natural gas and gasoline
line, 24 inches, 1.000 miles,
construction include the following: Natural gas
Insul and other interests;
from Texas Panhandle to Chicago, by Doherty.
to Indianapolis,
natural gas line, 24 inches, 1,250 miles, Texas Panhandle
20 inches, 850 miles.
gas
line,
by Missouri-Kansas Pipe Line Co.; natural
Natural Gas Co.; natural
Texas to Omaha and Minneapolis, by Western
by Missouri Valley
gas line, 24 inches, 700 miles, to Des Moines, Iowa,
miles, Cushing, Okla.,
Natural Gas Co.; crude oil line. 10 inches, 1,500
800 miles, Borger,
8
inches,
line,
to Cincinnati and Pittsburgh; crude oil
Co.; gasoline
Texas, to Kansas City and St. Louis, by Phillips Petroleum
Kansas City and
line, 6 and 8 inches, 1,115 miles, Okmulgee. Okla., to
of New
Chicago; crude oil line from Cushing, Okla., to Standard Oil Co.
[VOL. 132.
Jersey, through the Ajax company, a subsidiary. These lines, without
lateral or feeder lines, require about 1,200,000 tons of steel pipe.
Pipe Line Companies Responsible for Loss of
Revenue to Railroads in Transportation of
Crude Oil, According to Republic Shares
Corporation.
As an indication of the amount of revenue the railroads of
the country are losing as a result of increasing competition
from the pipe line companies, Republic Shares Corporation
points out in its monthly review that during the last four
years, while the production of crude oil has increased over
31%, the transportation of it by railroads has decreased
41%. During the same period, it is stated, the oil pipe
line companies have increased their total mileage more than
22%. The review says:
In 1925 the roads carried nearly 11 ji million tons of crude oil, but last
year they carried only a little more than ex, million tons. But this tremendous loss does not tell the complete story. It does not take into account the increasing amount of refined oil products the roads have handled
during the last decade. Since 1920, when they hauled nearly 30 million
tons of refined products, until last year they have shown sizable increases,
oil.
of
but not comparable to the losses sustained in the transportation crude
It is pointed out that the rapid development of the natural
gas industry in the last several years may be gauged from
the fact that to-day there are nearly 80,000 miles of natural
gas pipe line, both trunk and gathering line, in operation in
the United States, nearly as much lineage as the total of
all oil pipe lines exclusive of the gasoline pipe lines.
Indications of Business Activity
STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, Jan. 2 1931.
Naturally trade in the closing week of the year has been
nothing to boast of, what with the taking of inventories by
wholesale and jobbing houses and the big industries. Nobody expected much, so nobody was disappointed. The
opening business day of the new year was enlivened by a
sudden upturn in oversold stock, grain and cotton markets.
The sharp rise in Chicago and Hanover Square was started
by the swing of the stock market into a rise just when everybody had made up their mind? that Wall Street was to see a
tame day. And there was really no great activity there. The
transactions were quite the reverse of striking with the total
not much above 2,000,000 shares. But what the market
lacked in activity it made up in quiet strength even though
the rise did not average much above 1 to 2%. But the call
rate for money fell to 1M% and bonds advanced. The two
commodities more directly under the influence of the stock
market really bettered their instruction. For July wheat
rose 3 cents and corn 3 to 4 cents while cotton advanced
roughly 25 to 35 points. In all three markets stop orders
were met as covering of overconfident shorts thrust prices
a hint of
sharply upward.'Perhaps this may be in its way
yet
what is coming in some of the other markets. No one
a
is
in
general
in
business
that
truism
a
is
it
knows. But
the mere
much better position than it was a year ago and by
of the lane
lapse of time, to go no further, is nearer the turn
trying exand
long
the
from
swing
that means a gradual
means a
perience of the past year or more to something that
until
trade
normal
like
more
g
somethin
return by degrees to
has been more
the return to normality is actually reached as it
trade after
than once on the vast avenues of American
rough experiences.
support given by
A significant sign of the times is the
of the four trunk
t
agreemen
President Hoover to the virtual
systems. This
big
four
into
tion
consolida
of
plan
a
to
lines
It is a senyears.
10
last
the
for
n
has been under discussio
busirailroad
everyday
sible recognition of the plain facts of
the
against
ions
superstit
old
of
over
ness and the throwing
stand,
we
"United
.
railroads
amalgamation of great
systems as it
divided we fall" applies as much to big railroad
itself or
States
United
the
like
systems
does to big political
or
any other political society, whether republic, kingdom
almost
saying
a
is
strength
is
there
empire. That in union
ignored in
as old as the hills but which has been too much
being
the busines history of this country. Happily it is
demonbe
can
truth
its
where
recognized to-day in places
strated.
In the steel trade there has of course been little new business, but it is said that in the central west there are beginning
to be requests to advance shipping dates for bars, strips and
sheets, largely it seems, because some of the automobile
campanies are calling for supplies against either resumptions
of work this week or very soon. It must be admitted, however, that in most industries things have been very quiet.
On the Pacific coast lumber mills and camps were in some
cases idle and the output is said to be only about 40%.
Wheat has been quiet with May still under the protection
of the Farm Board at around 81c., but export trade has
been mostly quiet and new contract July has at times
declined sharply under the effects of heavy liquidation.
But to-day as already stated the market suddenly awakened
under the inspiriting touch of the rising stock market and
the same was true of other grain. Canada is selling wheat
to China. In cotton the co-operatives have continued
to buy May and July if not occasionally October. And
it is supposed that they have accumulated a considerable
long account. It has tended to make contracts scarce here
and selling hesitant as these contracts are not expected to
come out for some time to come. The tendency, moreover,
is towards at least theoretically more bullish statistics of
supply. In other words according to the cotton exchange
figures this week the world's visible supply of American
cotton showed the first decrease of the season. Meanwhile,
however, Manchester faces the possibility of a strike of the
cotton weavers over the dispute as how many looms the
worker shall operate. And there is some danger of a coal
strike in South Wales, while the political situation in India
is still disturbing to business.
Hardwoods production in the middle of the Mississippi
Valley product, it is intimated, is at only 50% of capacity.
On the Northern Pacific Coast there are large unsold stocks
of salmon with prices in some cases below the cost of production. One interesting fact which has recntly come
to light is that American business concerns are sending more
salesmen to foreign countries now than for many years past.
This is supposed to mean that these houses detect a prospect
of an increased foreign business or else deem it worth while
to see what can be done in foreign fields.
The Eastern shoe industry is a little more active, though
there is still plenty of room for expansion. But the leather
trade is said to be gradually getting into better shape. It
is not surprising to learn that the jewelry trade had 25 to
30% less business in 1930 than in 1929. One curious fact
was that in the glove trade dealers had allowed their stocks
to become so depleted that a sudden rush of peremptory
orders caused deliveries to be made as far West as the Pacific
Coast by airplane. There may be more than one branch of
trade in pretty much the same position. In the print cloth
business there is a slight premium reported on spot goods
JAN.3 1931.]
FINANCIAL CHRONICLE
27
which had become scarce through these emergency orders. to 28, Cleveland 20 to 26, Montreal 6 to 28, Detroit 18 to
Unfinished cotton goods were firmer and some construc- 22, Kansas City 34 to 44, St. Louis 24 to 40, St. Paul 20 to
tions were Mc. higher.; 383-i inch 64x60s have latterly been 34, San Francisco 52 to 58. In England the weather on
quoted at 5Xc. Lower bids on various goods have been Dec. 29 was unsettled, with a maximum temperature of
refused. Sheetings and coarse yarn cloths were quiet and 44 degrees. Paris was overcast with 46 degrees. Berlin
steady. There is, however, more inquiry for fine and fancy had fair weather and 39, Vienna was rainy with 34. On
goods. Finished cottons as a rule have been quiet. Per- Dec. 29 London reported great gales sweeping over the
cales were firmer. Men's wear woolens and worsteds were British Isles reaching 80 miles an hour in Scotland and
hard to sell. But dress fabrics met with a fair demand. Ireland. In some parts of England they were 50 to 60
Only a moderate business was done in broad silks. Raw miles an hour and doing more or less damage.
silk was quiet and steady.
Sugar was lower with nothing yet decided as to what Guaranty Trust Company of New York Sees Little on
Germany will do about the Chadbourne plan. Rubber was
Which to Base Early Trade Recovery—Last Half
dull and lower. Hides were slightly higher. Silk advanced
of Coming Year Expected to Show Progress.
a trifle. Cocoa was up some 20 points. Cofee showed no
At the end of the year, current developments contain
striking changes but Brazil was said to be buying here and little
or nothing on which to base a prediction for an early
in the interior at times.
recovery of trade, states the Guaranty Trust Co. of New
Fall River, Mass, has been quiet with the taking of inYork in the current issue of "The Guaranty Survey," pubventories still under way, but there was a greater call for
lished
Dec. 29. "Present indications in the business situadeliveries for the early part of 1931. At Manchester, N.H.,
increased operations were started on Dee. 26 in a number of tion show signs of promise, but are without any definite
departments of the Amoskeag Mills, owing to a rush of assurance of a nearby change in trend," the "Survey" conorders for goods. At Charlotte, N. C. the textile sales were tinues. 'Commodity prices have continued to recede gradusmall, but most manufacturers expect a better trade early in ally, and stock prices, with some bulges, have reacted to
1931 owing to the fact that stocks are low in all divisions of low levels. Bonds have moved discouragingly, but their
the industry. At Greensboro, N. C. the Proximity White outlook seems to be improving somewhat. Under the influOak and Revolution Mills closed for the Christmas holidays ence of seasonal conditions, retail trade has increased in
on Dec. 19 and resumed operations on Dec. 29. The volume, although industrial activity and employment have
plants are being operated on Friday to give employees declined further." The "Survey" further says:
The continuing ease of money and the strength of the credit situation,
the opportunity to work two extra days. At Buckhannon, together
with the certainty that a considerable shortage of goods 18
W. Va. the Buckhannon Garment Co. will resume opera- accruing, are facts
that support the conclusion reached by many that a
tions in full at once after being operated on part time since quickening of general business activity may, perhaps, be expected by
late
spring.
It
seems
reasonable to assume that, with the harvesting
last August owing to the dullness of trade. At Pineville,
of
1931 crops and the furtherance of trade adjustments, the last
N. C., the Chadwick-Hoskins Co. Plant No. 5 which closed halfthe
of next year will show more progress and that 1932 should witness
down Christmas week resumed operations on Dec. 29th for substantial recovery from the depression. Economic precedent and busisome time this plant had been operating three weeks and cur- ness history seem to support such views.
General Credit Situation Strong.
tailing one week. At Gastonia, N. C. the Ranlow mills are
The process of financial liquidation has involved numerous additional
on full time after a period of curtailment, and full time will
bank failures, including the suspension of payments by two of the smaller
be maintained indefinitely. At Fort Mills, N. C. the Fort banks
in New York City. But, taken as a group, the banks
Mill Co. which closed down its plant on Dec. 24 resumed States, and particularly those in the financial centers, areofinthea United
strong
operations on Dec. 31st. At Kannapolis, N. C. the Cannon and thoroughly liquid condition. During the period of rapid expansion,
too many inadequately capitalized and inefficiently directed banks were
mills resumed operations on the 29th. At Mayodan, N. C. established the country over, and it
was inevitable
many of them
the Western mills will resume operations at the opening of must go out of business in a time of low earnings and that
falling values. The
the year after closing down Dec. 13 for the Christmas holiday general banking situation, however, not only is strong from the standpoint
of safety, but will be found favorable to business expansion as soon as
season.
conditions in other lines are such as to permit that development.
Greenville, S. C. wired that 10,000 persons in Greenville
The reduction of the rediscount rate of the Federal Reserve Bank of
County, 70% of whom are textile operatives are out of em- New York to 2%, the lowest in the history of the Federal Reserve System
and
the lowest central bank rate in the world to-day, emphasizes the
ployment or else are working on occasional jobs according
ease of the present situation and will probably have a favorable effect on
to the State Federation of Labor. At Whitney, S. C., the business
sentiment. However, its immediate influence will be mainly
Whitney mills will resume operations on Jan. 5, after closing psychological, since there is no occasion at present for member banks to
down for the Christmas holidays on Dec. 24. At Danville, increase their borrowings from the Reserve institutions.
Business Expectations for 1931.
Va. evictions of strikers and families has begun. At Ozark,
In spite of the disappointment occasioned by recent reports, business
Ala. the Dale mills are operating full-time day and night.
clings to the view that 1931 will witness marked improvement.
Columbus, Miss. wired that the Tom Ciggee mills resumed opinion
Although definite predictions are unusually scarce, there seems to be a
operations on Dec. 29 and they are increasing production, fairly general tendency to place the probable date of recovery somewhere
working now at about 75%. This large plant until recently in the first half of the year. The only point on which there is a virtual
of opinion is that the revival will be a slow and irregular
had been closed down for about 18 months. At Kingsport, unanimity
process, particularly in its early stages. This is in line with past experiTenn., the American Printing mills are operating on a full ence. It is only after such
irregularity has persisted for some time that
day and night schedule except in the weaving department, confidence becomes general and the upswing proceeds at a fairly steady
pace.
where there is some curtailment.
Borne Lessons of Depression.
At Lewiston, Penn., the Susquehanna Silk Mills at LewisThe past year
been a difficult
but it has demonstrated certain
ton and Sunbury will close down indefinitely with the opening truths that can behasused to advantage one,
in the future. One of these is that
of the new year;it is a $19,000,000 corporation with more than neither our industrial nor our financial organization has been developed
2,000 workers. Manchester,England has been dull owing not to a point where it provides any assurance against the major economic
depressions with which students of business history have long been familiar.
only to the holiday season but to continued political unrest Now
that the depression has come, it is easy to see the fallacies of the
in India. London cabled "China's new schedule of tariffs "new era" philosophy that had such a wide vogue
in business circles in
romulgated from Nankingon on Monday increases duties 1928 and 1929. It thud be remembered, however, that the preceding 20
years had brought numerous changes of a far-reaching and fundamental
on cotton clothing and haberdashery to 25% from
1234% nature, which lent a certain degree of plausibility to such theories. . . .
d on cotton piece goods to 1234% from 73%."
During that period, the Federal Reserve System had come into existence,
The
losing of Ford factories, the Christmas Day holiday and with its pooling of bank reserves, its elastic note circulation, and its more
urtailment and closing at other plants are reported to have economical use of gold. Business intergration had proceeded very rapidly,
and with it had come a volume of statistical information concerning the
owered the adjusted index of automobile production for the state of business,
which, while very far from complete, was immeasurably
ended
Dec.
27 to 67.1 against 98.3 for the preceding in advance of anything that had been available before. Labor had come
eek
eek and 83.1 for the corresponding week last year. Chicago to occupy a much more favorable position in the distributive system than
it had previously enjoyed. And the general public had become investors
red that business in the central west showed marked im- in American
industry, partly because of the greater earning power and
rovement due chiefly to heavy Christmas buying. The sales saving power of the working man and partly because of the experience of the
ere fully up to those of a year ago or two years ago but of masses of the people with Government war finance.
Yet these influences and numerous others that might be mentioned failed
ourse reduced prices cut down the receipts and it is also to prevent
a reaction comparable in scope and magnitude to any of the
rue that unemployment remains an acute problem.
great business depressions of the past. It is true that there has been no
Here the weather has been for the most part cold and general money panic such as frequently occurred in connection with past
The credit for this relief belongs partly to the Federal Reserve
racing and much of the time clear. To-day it was 20 to 31., recessions.
System and partly to the abundance of gold in the United States. But
esterday 18 to 34, and the temperatures have been running there can no longer be any doubt that business itself is as subject to
bout that way much of the week. Boston, within 24 major depressions as it ever was, and that it has earned no immunity
the effects of excesses and bad management and the natural operation
ours, has had 20 to 36, Chicago 24 to 30, Cincinnati 20 from
of economic law.
28
FINANCIAL CHRONICLE
Another conclusion suggested by the events of the past year is that
public agencies, aside from the exercise of their normal administrative
functions, are virtually powerless to affect the course of business. A third
Is that easy money alone can neither prevent economic stagnation nor
bring about revival. A fourth is that depressions have their origin in
the preceding periods of overexpansion and inflation which are falsely
termed prosperity, and that little progress can be made in avoiding
these upheavals until business becomes sufficiently well organized, farsighted, and wise to forego the tempting possibilities that always present
themselves in prosperous times. These truths are by no means new
discoveries, but they are too often forgotten or ignored by business men
In the excitement and exaggerated expectations of prosperity and the
equally overdrawn pessimism of depression.
Several Factors to be Considered.
It is true in the present instance, as it has invariably been in the past,
that the situation is aggravated by numerous random influences, one or
more of which have been regarded by certain commentators as the
fundamental causes of the depression. One of those most frequently
mentioned is the overproduction and price depression in several international commodities due to unsuccessful governmental attempts to control
production, prices, and markets. Coffee, rubber, and sugar are the three
now almost classical examples of the unwisdom of such schemes, though
numerous others might be named. Another contributory cause is the
gradual decline in the world level of commodity prices, which can be
logically regarded, first, as a continuation of the post-war deflation;
second, as a result of the mal-distribution of existing gold stocks, and third,
perhaps also as a consequence of the disparity between the rate of increase
In gold reserves and the rate of growth in the physical volume of trade.
Still another adverse factor is the collapse in the price of silver, with
its disastrous effects on the purchasing power of nations on the silver
standard. A fourth is the so-called "technological unemployment" due to
industrial innovations that have substituted machine power for man
power. A fifth is the political unsettlement that existed in some countries
even before the advent of depression and that has been heightened by
economic difficulties during the past year. A sixth is the curtailment
of the free movement of commodities across international boundaries by
tariffs and other restrictions. A seventh is the distress in farm communities resulting from crop destruction by the drouth of last summer.
Recession a Necessary Process.
All these conditions have played their part, and most of them are very
important aggravating factors. They are not, however, the fundamental
causes of the depression. Even if they had been absent, the world's
business would have had to go through a corrective process necessitated
by the inflation and overexpansion that developed between 1922 and 1929.
The exact nature of the forces that are set up during a period of prosperity,
and that ultimately transform the prosperity into depression, is not known.
It is commonly said that overproduction lies at the root of the trouble.
But this expression must be used with great caution. There has been
in recent years, for example, overproduction of numerous raw materials,
as the phrase is popularly understood; but as long as a large proportion
of the people of the world need or desire more of the commodities made
with these raw materials than they will ever be able to buy, it is clear
that the application of the word "overproduction" to the existing situation requires a good deal of qualification. "Underconsumption" is probably a somewhat more accurate phrase, but even this merely describes
the symptom without explaining the cause. Furthermore, the lack of
balance between output and consumption is only one of many aspects
of the problem. Financial, as well as industrial, maladjustments arise ;
according to some authorities, it is in the financial situation that the
really basic difficulties must be sought. It is equally obvious that psychological factors which we neither understand fully nor can control adequately
enter into these situations with varying degrees of influence.
These considerations show how imperfect is our knowledge of the economic forces that cause fluctuations in business activity and in the other
conditions that combine to produce what we call business cycles. But
these cycles, while by no means absolutely periodic, are regular enough
to suggest very strongly that their causes lie primarily within the normal
business process itself, and not in suoh extraneous factors as wars, revolutions, legislative enactments, and natural catastrophes.
National Association of Credit Men Find Manufacturers Bullish on New Year's Outlook Despite
Loss of Volume.
Two manufacturers and wholesalers out of three expect
business to improve during 1931, although nine out of 10
of them did a smaller volume of business during the first 11
months of 1920 than during the corresponding period of
1929, according to a survey covering 330 of the country's
larger firms conducted by the National Association of
Credit Men. Members of the Economic Credit Council, made
up of credit executives of the more important firms in each
State, contributed information to the survey. The Association, under date of Dec. 22, also says:
Only 3% of the firms reported an increase in dollar volume of sales
over 1929, although a considerable number stated that their unit volume
had not declined, lower prices accounting for the difference. Six per cent.
reported sales equal to 1929, and 91% a smaller volume.
Collections during 1930 held up much better than sales, according to a
large majority of the firms reporting. Twenty-four per cent, said that
collections were better during 1930 than during 1929. Forty-seven per
cent, reported collections slower and losses greater, while 29% reported
no change in the ratio of collections to total sales.
A number of those reporting an improvement in collections stated that a
more conservative credit policy was being pursued. Another comment frequently made was that "collections are holding up, but require more
effort."
Regarding the outlook for 1931, 67% looked for improvement; 25%
were planning for a volume equal to that of 1930, and only 8% expected
worse conditions. Many of those counting upon improved conditions added
the comment "after April 1," or " after the first six months."
In addition to the information regarding their own firms, members of
the Economic Credit Council were asked to list the factors, both favorable
and unfavorable, which in their opinion would most strongly affect the
course of business during 1931.
[VOL. 132.
Favorable factors most frequently mentioned were, in the order named:
low inventories in the hands of dealers; deferred buying to meet accumulated consumer needs ; low interest rates ; the prospect of extensive public
works and private building, and the belief that commodity prices have
touched bottom.
The chief unfavorable factors mentioned were: unemployment; low prices
of farm products and •other raw materials ; bad conditions abroad; instability of prices; bank and commercial failures, and "depression psychology."
Secretary of Commerce Lamont Believes We Have
Reached Point Where Business Recovery May be
Expected.
In the view of Robert P. Lamont, Secretary of Commerce,
"while it is impossible to forecast at what time unmistakable evidences of improvement in business will occur, it is
clear that we have reached a point where cessation of
further declines and beginning of recovery may reasonably
be expected." Mr. Lamont's views, thus expressed, were
contained in a statement made public Jan. 1, in response
to requests for a survey of conditions and prospects for
the coming year. His statement follows:
Prior to the close of 1929 a world-wide decline in raw material prices
and a collapse of security values ushered in a period of general business
unsettlement. In the latter months of the year production was curtailed,
building fell off, and industrial employment was reduced. But many
evidences of business improvement appeared in the early months of 1930.
Building construction increased, and there was an upturn in the production
of automobiles, steel and other basic products. Security prices swung
upward and commodity prices were temporarily halted in their decline.
Toward the middle of the year, however, it became clear that production
in certain raw material areas had been setting too rapid a pace and that
economic disturbances in several quarters of the world would enforce
further declines and lessen still more the purchasing power of important
world markets. At home the early evidences of stability gradually began
to disappear beneath the currents of world-wide depression, while a period
of severe drouth gave still greater momentum to those cumulative forces
which were bringing heavy losses of purchasing power to a substantial
portion of our people.
As the rate of decline in raw material prices became highly accelerated
industry confined its purchases more and more to current needs. The
universal drop in industrial production was followed by increasing unemployment and a decline in consumers' demand in both foreign and domestic
markets. Toward the end of the year these cumulative forces were rapidly
running their course, and the apparent retardation in the rate of downward
movement in several basic indexes of business support the belief that the
elements of recession have now spent most of their force.
The effect produced by the world-wide depression can be seen in the
years indexes of business. The Federal Reserve Board's index of industrial
production, which comprises all the basic mineral products and all important groups of manufacturing goods and which, therefore, is the most
comprehensive single measure of industrial activity, fell approximately
20% below the level of the preceding peak year. Compared with the
highly prosperous year of 1928, however, the decline in production is
slightly less than 13%.
Exports of manufactured goods as well as total exports declined in value
aapproximately 25%, reflecting lower prices and the marked shrinkage in
purchasing power abroad which followed upon the rapidly weakening
price levels and the universal contraction in industry. Also significant
in this connection is the fact that our capital exports during the second
half of this year have shrunk to negligible proportions.
On the basis of quantity our exports for the current year have declined
about 20% from last year's high levels. Imports, which fell off approximately 30% in value from 1929, showed a drop in quantity of only 15%.
Thus our purchases and consumption of foreign goods have fallen but little
below the levels of previous normal years. This great disparity between
the value and quantity of our imports reflects the drastic price declines
in raw materials, semi-manufactured products, and foodstuffs, which constitute approximately two-thirds of our total import volume.
While the forces of contraction were ruining their course the severity
of the movement was happily tempered by certain ameliorative factors.
Last year, immediately after the stock market crash, the President called
a conference of business and labor leaders with a view to effecting the
greatest possible degree of co-operation during the period of readjustment.
The successful outcome of this and of later conferences is reflected in the
almost total absence of industrial disputes during the present year and
in the maintenance of existing wage levels. Disturbances such as characterized previous periods of depression have not arisen this year, although
the contraction of purchasing power and declining price levels have resulted
In the curtailment of industrial operations and the consequent discharge of
many workers. For the year as a whole factory employment was about 15%
below the high levels of the preceding year, but the decline in the number
employed during the current year has been relatively far less than in
similar preceding periods of depression. Employers have evidenced
conscious determination, so far as possible, to maintain their working
forces by distributing available work through part-time.
Building operations generally have been sharply curtailed along wit
the contraction of industrial activity, but the effects of this shrinkage
building have been tempered by a more than ordinary volume of construction on the part of public utilities and Federal, State, and local govern
ments. In accordance with the plans brought to fruition by the Whit
House conferences, railroads and utilities set out on an expansion prog,ra
which called for the expenditure of nearly three and a half billion dollars.
At the same time public works and highway construction undertaken durin
the year aggregated a similar additional amount. The increase in suc
projects, it is estimated, has provided employment for about 200,00
additional workers who would otherwise be unemployed.
Total new capital issues during 1930 declined approximately 25% a
compared with the previous year. Foreign issues were confined almos
en+irely to the first half of the year and their later decline has close]
reflected rapid price recessions and attendant economic disturbances abroad
Furthermore, the year's decline in construction, amounting to approxi
rnately 20%, was an important factor in the lower level of capital issues
The initiation of an extensive public works program during the last 1
months has led to a marked increase in State and municipal issues durin
the closing months of the year.
JAN. 3 1931.]
FINANCIAL CHRONICLE
In the financial markets the past year has been featured by a substantial
decline in security prices from the relatively high levels to which they
recovered last spring. Brokers' loans have been liquidated since the
beginning of the year by approximately 40%. The Federal Reserve
member banks have diminished their indebtedness to the Reserve Banks
by almost 80% as compared with 1929. Although the effect of falling
security price levels and unliquid portfolios have led to bank suspensions
in certain localities, the banks of the country generally are in
a strong
position.
Oonsidemble encouragement is afforded by the fact that consumer
buying
has held up to relatively stable levels. Sales of department
and other
retail stores for the year have fallen only 7 to 10% below the large volume
of 1929. About half of this decline in dollar volume is attributable
to
the lower price levels for retail goods, so that the quantity
of goods
purchased by consumers has probably been only 4 or 5% less than in the
preceding prosperous year.
Wholesale commodity prices, particularly
prices of raw materials and agricultural products, have declined
sharply
during the past year and for the year as a whole averaged about
under the 1929 level. Accompanying this decline the cost of living 10%
index
has also fallen so that it is now about 6% below the level of a
year ago.
Earlier periods of depression, such as those of 1893 and 1921, were
citaracterized in their later phases by the reaccumulation of savings
which had
been expended in the preceding boom period and by the wearing
out of
previously purchased goods, which caused a general buying movement
on
the part of the consuming public. That we are now approaching
such a
period is indicated by several significant facts. On
the one hand, savings
deposits have been progressively accumulating while business
written by
life insurance companies has been maintaining a
fairly even pace and has
reached a total for the year almost equal to the high level of
1929 and
above the total for 1928. At the same time stocks
of department stores
have been sharply reduced and there are some evidences
of recent expansion of retail buying. While it is impossible to forecast at
what time unmistakable evidences of improvement in business will occur, it is clear
that
we have reached a point where cessation of further declines and
beginning
of recovery may reasonably be expected.
In a review of business activity in 1929 which was issued a year ago,
attention was called to the high level of industrial output for the
year
as a whole and to the fact that during the closing months activity
in some
lines of business was in recession. "It is impossible, of course,"
the
statement concluded, "to forecast what temporary ups and downs
may
occur, but the nature of the economic development of the United
States is
such that one may confidently predict for the long run a continuance
of prosperity and progress." Despite the sharp curtailment of
economic
activity during the past year no evidences have appeared which
would
justify a revision of this statement. There can be no doubt
that the
inherent strength of our economic structure will enable our
country to
lead the world in a vigorous recovery from the present depression
as we
have done in the past.
29
"It is clear that now, more than ever, England and the United States
have to understand each other's motives and each other's points of view
completely," he continued. "I have heard it said occasionally in the
States that there are certain sections of the public in Great Britain who
do not appreciate the visits of American business men and tourists to
Britain and even indicate this by lack of welcome that they give. I would
like to assert very emphatically that such a theory is not indicative of the
attitude of the British nation as a whole."
The speech was broadcast at 12.30 p. m. and the reception was good,
the Columbia system reported.
.
Gradual Improvement in Business in 1931 Looked for
by Directors of Merchants' Association of New
York—Views of Willis H. Booth and Others.
A gradual improvement in business conditions is looked
for in 1931 by the directors of The Merchants' Association
of New York,among whom a survey has just been completed
by the Association. Nineteen directors, representing many
different lines of business, and each a leader in his particular
line, responded to a request for opinion.
The views of some of those who participated in the symposium follow:
BANKERS.
Willis H. Booth, President of The Merchants' Association
of New York, and Vice-President, Guaranty Trust Co. of
New York:
There is nothing the American public does so well as to forget its troubles.
Give us an orderly stock market and a fair prospect of business and we
instgntly forget the terrors of the past and get down to a job of development. We spend no time in lamenting miseries when things have even
the appearance of an improved condition.
If that time has not already arrived, it is on the way. The financial
situation in this country is being rapidly cleared up. Our major banking
condition is of greatest soundness. Consumption has been out 'tinning
production. Stocks of goods on our shelves are lower by many per cent
than a year ago. The market of the United States alone is by far the
greatest market in the world and it must be satisfied. The majority of
our people still have money, as is evidenced by the condition of our savings banks.
Adverse world conditions cannot be ignored. Disturbed political situations with the resulting curtailment of credit are slowing up general rehabilitation. Our problem is to determine how far these forces affect our
business. A careful survey of all of the factors involved leads to the
conclusion that while we are dependent upon the world's rehabilitation
for a large volume of business such as we enjoyed in 1929, we can, however, still go on with a fair volume of business paralleling that of 1927 or
1928 while the reconstruction processes all over the world are working
out their own salvation.
So, with the banking situation getting better, the commercial situation
improving and the opportunity for a better volume of foreign trade than
a hasty judgment might indicate, we are approaching the time when we
will have enough encouragement to forget our troubles, and that time will
measure the upturn in the depression.
Recovery by 1932 Forecast by Sir Josiah Stamp—British
Economist Thinks Worst of Depression Will Be
Over by Next Spring—Urges Free Spending Now—
Says We Must Avoid Stock Exchange Boom—Gold
Situation.
The worst of the business depression will not be over
ntil next April or May and then recovery will be halting
Lewis E. Pierson, Chairman of the Board, Irving Trust
nd slow and will not gain much momentum until 1932, Co., New York:
The business spirit of the country is greatly in need of a keying up.
ir Josiah Stamp, British economist, predicted on Dec. 28
Our business fundamentals are sound, bank resources generally are exa London address broadcast in New York by Station tremely
liquid, credit is ample, money rates easy, potential buying power
ABC.
strong, and facilities employed in industry and commerce in a condition
of
high
efficiency.
Still, business depression persists. The fact that this
Sir Josiah, who is President of the London, Midland &
depression is world-size seems to justify the belief that recovery will be
ttish Ry., spoke on the "Economic Outlook for 1931." slow
and that the course of the upward movement, when it gets started.
ording to the New York "Times" of Dec. 29, which like- will be characterized to an extent by irregularity.
=di
In
the judgment of leading economists, this depression will not reach
se gave the following account of.his remarks:
its lowest point before the coming Spring and
some
in
form, may extend
His address was transmitted across the Atlantic by radio phone
and was well throughout the year 1931.
eked up here by WA13C and rebroadcast over the network
of the Columbia
roadcasting System.
Arthur Lehman, of Lehman Brothers:
The economist said he expected "substantial recovery" to come
In a time of discouragement and loss of confidence it is helpful to recall
first
n the United States. As a primary aid to assist the recovery,
Sir Josiah that the present situation offers almost nothing that has not been experivocated the continuance of supplies of cheap money and
availability of enced in previous depressions. It differs in emphasis and degree but not
uch supplies for long-term loans as well as short.
in its general character.
Eighteen months ago we minimited the positive over-production and
Urges Government Economy.
over-buying in many industries which we might have sensed at the time.
"I should encourage everywhere governmental economy
and balanced Now we know that what looked like real prosperity was due to the expanudgets," he asserted. "It is perhaps at the moment
more important sion of consumer credits and to abnormally increased payrolls
and to
ith us that people should spend money freely on their
Ilan that they should save very hard. With you, I think, consumption speculative activities. In the very nature of things, consumption could
reliable foreign not continue the rapid pace.
vestment takes a prominent place. Recuperation must
be gradual,
During this period of apparent prosperity In America certain economic
ut the patient must not do the things that would delay
it. Above all we difficulties in Europe, in the Orient, in India and in South
America—
ust avoid making a Stock Exchange boom and overvaluing
the recovery; credit problems, problems of debt and reparations, of currency and tariff—
herwise a series of painful setbacks will weaken real
optimists."
were
becoming
and
acute
finally
converged
into
a
world-wide
dep ession.
He then spoke of conditions in England and the
United States and
Most of the elemental defects in this situation which initially caused
ew attention to the causes of the present depression.
the setback in business and in values have been corrected. We must now
"We are both realizing as never before the
interdependence of the eco- await the return of confidence which, in my
opinion, will be slow. I
omic world," he said. "Our depression is a rather
dull and restricted believe that improvement may reasonably
be expected in 1931. It will,
nomic activity, while yours is a depression from a
high peak and active however, be gradual and to realize greater
profits in 1931 than in 1930 will
usiness. Your economic activity is relatively greater
than ours.
require hard work and careful economies.
"Our problems are in many instances similar. There are
a considerable
umber of causes of the present depression in paricular
STEEL, RETAIL, TEXTILES, AND GENERAL BUSINESS.
countries. Some
8, I think, are valid, but many of them would be unimportant
and local
Eugene P. Thomas, Vice-President of the United States
it were not for deep underlying troubles.
Steel Corp.:
Blames Speculation Here.
Cycles of prosperity and depression in the steel industry have been in
"I think the immediate precipitating cause was the
overspeculation the ratio of at least two years ofexcellent, one year of moderate.
to
business.
the New York Stock Exchange and the shock to credit brought
about
This
has resulted in increasing production three-fold in the past 20 years.11
irough perfectly natural collapses in other countries. I think
our next
The
future
previous
any
promising,
outlook
in
since
depression
is
ouble at the back of this, but fairly after it, was the large
the
extended pro- financial situation as a whole was more acute. Temporary
restriction in
uction in raw materials. But back of these two causes and
making other demand results in cumulative consumptive requirements.
al causes even more troublesome was the great fundamental
position of
Other countries are awaiting the revival here. The eventual return of
e total quantity of gold compared with the new volumes of
production.i their normal purchasing power will find an immediate reflection in
Sir Josiah stressed the latter cause and explained it in detail,
their
at "any excess of gold in any particular, country compared declaring demand for our farm products and manufactured goods, which should
with the stimulate increased employment of plant and labor beyond
neral average can only be held at the working of a gold
the mere
standard for dollar value of increased foreign trade.
e whole world i'it is kept free from the influencing of prices in
the country
ncerned. That means the total supply of gold affecting prices is
Colonel Michael Friedsam, President, B. Altman & Co.:
reduced
d prices are either very low or ready to become very low
the moment
It is unfortunate that the cleansing process to which business has been
e impetus to world trade and forward-looking credit is impaired.
subjected in the last year was so drastic and rapid. There were a
great
FINANCIAL CHRONICLE
30
many evils of extravagance and carelessness, due to easy and long-continued
prosperity, that needed elimination; but conditions changed too fast and
greater evils came with the changes. Nevertheless, I firmly believe that
business in general is now in a good position to begin reconstruction, and
that good management, vision and courage, which are inherent in American
business, will now start things moving in the right direction.
Lincoln Cromwell, of William Iselin & Co.:
[vol.. 132.
Personally, I believe that improvement in the building industry is due
and must occur in 1931. Building costs are 15 to 20% lower than they
have been in six or eight years and they are not likely to go materially lower.
1931 will offer many advantages for the erection of new buildings.
Materials will be low in cost and easily secured. Labor will be abundant.
will seek employment and work industriously, and buildings well conceived and planned will find occupants.
Leopold Plant, Chairman of the Board, Black & Boyd
For several years past the textile industry, as a whole, has been under
the burden of unregulated production and in the profit-destroying grip of Manufacturing Co.:
a buyers' market. Textiles, however, were one of the first groups to reThe construction of banks, theatres, apartment houses, hotels and other
cover from the depression of 1921, and many believe they will again lead
buildings in the Metropolitan district requiring lighting fixtures, has exthe way to restored prosperity. The past year has shown a better adjust-.
ceeded the demand, and few of such buildings mentioned are being planned
ment of new production to current sales and stock on hand. Inventories
at this time. Alterations requiring new lighting equipment are but few
held by manufacturers are smaller than in several years. They are small
and unimportant, and the construction of public buildings has not proIn the hands of most wholesalers,and insignificant on the shelves ofretailers.
gressed far enough to warrant consideration of the lighting equipment
I do not believe the consuming public is over-suppliid with clothing and required. The industry in consequence is in a state of watchful waiting,
other textiles, or unable to buy what it needs. The impressive increase
must navigate on decreased output and lesser employment of labor.
and
In the deposits of savings banks and in the sale of life insurance policies
Similar conditions have existed in previous cycles of business depression,
which can be borrowed against, is proof of a very large reserve buying always followed by periods of intense activity, and such a renaissance of
power in the hands of the people. They have been hoarding rather than activity is looked for soon. I do not believe the industry is affected more
spending. I am confident that they will buy steadily, that this buying seriously than others catering to the equipment of buildings, but at this
willsoon give increased business to the mills,and that they will buy liberally
time demands are at low ebb.
as soon as their present fears of what may happen next year are removed
by a general upturn in business and employment. I look for this change
to set in slowly during the first six months of 1931.
William FeHowes Morgan, Chairman of the Board, Mer- Outlook for National Buying Power as Viewed by
Silberling Research Corporation.
chants' Refrigerating Co.:
During the past year the producers, whether it be of food products,
that the buying power in the last half of
anticipation
In
automobiles or what not, have had to carry most of the burden
clothing,
resulting from the extravagance of the past few years, but I believe that
this year we will see quite a change, and that just as soon as the general
public begins to show any disposition to buy, the retailers whose shelves
are getting pretty bare will be forced to buy goods to fill their orders and
thus the manufacturers will be encouraged to start up again.
What we need is a little courage.
A. C. Pearson, Chairman of Board, United Business Publishers, Inc.:
In 1930 the general publishing field held up as well as most industries.
The first six months made a profit showing approximately equal to the
first six months of 1929, but the second six months was down about 15%
In volume and approximately 25% in profits.
The outlook for 1931 is that the first six months will be below the same
period of 1929 and 1930, but the second six months will doubtless be
ahead of 1930 and approximately up to 1929.
Manufacturers and retailers are becoming continually more conscious
of the fact that advertising is the barrage of distribution and hence they
start early in the season to lay down their advertising barrage before the
time begins for the bulk of the purchasing. This accounts for the larger
amount of advertising early in 1930 and the slowing up in the last year
except for seasonal Christmas advertising.
Robert B. Wolf, President, Pulp Bleaching Corp.:
The pulp and paper industry is passing through a period where it has
considerably more production capacity than is needed to supply market
requirements. There are four major reasons for this condition: First, a
falling off in demand for print paper, due to curtailment in advertising and
effect of the business depression upon wrapping and container boards:
second, Increased production obtained from existing mills, due to the
adaptation of more effective management methods; third, over expansion
in news print plant and equipment facilities in Canada, and in kraft pulp
and paper building operations in the Southern States; and, fourth, in
sulphite pulp expansion due to the building of new mills in the Pacific
sulphite pulp expansion due to the building of new mills in the Pacific
Northwest.
Certain branches of the industry are undergoing regional shifts toward
the sources of cheaper raw materials, which, while stimulating the machinery building sections to a certain extent, will probably result in a continuance, during 1931, of the present competitive buyer's market.
REAL ESTATE AND CONSTRUCTION.
Walter Stabler, Consultant, Kenneth Slaws= Hobbs,Inc.:
The real estate mortgage market for 1930 has differed materially from
that of 1929. In 1929 there were plenty of applications but little money.
Now there is an abundance of money and on easier terms but a scarcity of
good loans. The cost of materials and labor is lower than since 1917 and,
while I consider the present a most advantageous time to proceed with
operations for which there is a real need. I believe that in 1929 there was
entirely too much indiscriminate building to maintain a healthy market.
This over production has caused a surplus of space of all types.
Now, in 1930. because of the unsatisfactory rental conditions in some
sections, lenders are scrutinizing more critically all applications submitted
to them. We have had many situations similar to this in the past forty
years but they have always been corrected by abstinence from unnecessary
building. Let's do it again.
Choice New York City real estate has always been one of the best and
safest forms of investment—its average return is high and its average of
loss the lowest. This is possibly one of the low spots The good times
will return and losses will be negligible.
1931 will be well above the last half of 1930, business executives are urged by the Silberling Research Corp. to plan
now for the preparation and efficient distribution of their
products. From the Corporation's report of Dec. 20 we
quote as follows:
General business activity in the United States continues to proceed
at a slow pace under the unfavorable influence of sharply curtailed farm
incomes, widespread unemployment among industrial workers, and a security
market not yet favoring either liberal flotation of bonds or improved
business sentiment such as invariably accompanies strength in common
stock prices.
We are now in the stage of depressed psychology as well as depressed
activity. Every delay in the appearance of tangible evidence of industrial recovery tends to discourage plans for new enterprise which are
logically conceived, but unfortunately held in abeyance until some one
else makes the first bold moves. To a large extent the prevailing dullness
(apart from merely seasonal influences) results from the fact that too
much long-range planning and development is always undertaken in the
years of boom conditions. The time for long-range fixed capital undertakings is in years of quiet general business, low interest rates, and low
prices of material and labor. This means that logically the present is the
appropriate period for carrying through new plant construction, improvement of operating or sales facilities, and developments in the technical
aspects of products. The tendency among most managers is to become
too far-sighted in good times, when everyone else is also far-sighted, and
too near-sighted in poor times when labor needs most to be kept at work
In order to sustain total buying.power. In other words, industry, by and
large, does not make correct allowance for one item of general overhead—
the overhead of aggregate labor cost which must be met if demand is to be
maintained. We believe that all executives, instead of trying to discover
whether business improvement will emerge on Feb. 6 or Feb. 9, should
consider that the first six months of 1931 will average well below the first
half of 1930, while the last half of 1931 will find buying-power well above
the last half of 1930 and calling for products whose preparation and efficient
distribution should be prepared for now.
By the second half of 1931 we see a strong probability of better prices
of some agricultural products which proved disappointing this year owing
to the combined effects of exceptionally poor weather conditions, slack
demand, and in some instances larger yields abroad than are likely to recur
immediately. By this time also there should be improved financial conditions leading to a renewed flow of capital, not only into domestic fields,
but into northern Europe, and possibly even Russia, where fixed capital
Is urgently needed. All indications for revival of business in the United
States are conditioned upon the successful solution of financial and
especially political problems in Europe which at the moment are by no
means solved, and which are in fact of such ominous import as to challenge the thoughtful consideration of every citizen. The peculiar hesitancy
of capital to flow freely into world channels where it is vitally needed suggests artificial restrictions upon international commerce and absence of
confidence in the political structure which are not wholly reassuring.
This is a time, therefore, to plan ahead, remove the jam in the channels of
finance and distribution, and by reviving domestic confidence avert further
unsettlement, social unrest, and financial breakdowns among our most
potent foreign customers.
David H. Knott, Chairman of the Board of the Knott
Alfred P. Sloan Jr., President of the General Motors
Hotels Corp.:
Our own experience in the purchasing ofsupplies for a chain offorty hotels
and restaurants is significant; in short, we are unable now to get anything
like normal delivery on large quantities.
There has obviously been just a little too much husbandry of resources.
The law of demand itself is about ready to put an end to this unnatural
economic condition, and after the holiday season, a pronounced increase
in business activity may be expected.
We as a nation splurged recklessly, but we also have pinched too hard.
Now the law of supply and demand is about to step in and take charge of
American wealth, common sense and enterprise.
• It is inevitable that times are going to be better and that the change is
right upon us.
Corp., Urges That We Enter New Year With New
Confidence.
The following New Year's statement was issued by Mr.
Alfred P. Sloan Jr., President of General Motors Corp.:
"As we enter the New Year it is important, I believe, for us all to look
ahead rather than look behind. Even though we may carry over some
problems from 1930, the New Year will demand a different approach to
these problems and a different mental attitude toward the future.
"Throughout 1930 everyone was engaged in comparing conditions at
home and abroad with conditions prevailing in 1929 without realizing that
1929, in one way, was as abnormal as 1930 was in another way. Comparisons, under these conditions, were not sound. Optimism and pessimism
H. C. Turner, President, Turner Construction Co.:
both exaggerated.
The big problem to-day is to get a new viewpoint. New York City and were
"But 1931 is a New Year. We should enter it with new ideas, new
environs will continue to grow. It is impossible that it should be othernew confidence and new hope. Business this year will be
measures,
in
all
of
made
buildings
progress
wise when one considers the remarkable
exactly what we make it—no better and no worse. It is largely within
kinds during the past quarter century.
province of the American people to restore the economic equilibrium
Our population is increasing, and at a rate according to the estimates of the
the new problems of the new
the Regional Plan Committee of New York and Environs that must require of the world, and if our attitude toward
shall make greater progress
new homes, new apartments, office buildings, warehouses, &c., to give the Year is Constructive, rather than critical, we
needed facilities and on an increasing scale demanded by modern living. in 1931 than we did in 1930."
Department Store Trade in November About on Level
with Previous Month, According to Federal Reserve
Board.
In its survey of department store trade in November
the Federal Reserve Board has the following to say on
Dec. 31:
Daily average department store sales were at about the same level
in November as in October. Ordinarily there is an increase in the later
month, and the Federal Reserve Board's index of department store sales
which is adjusted for seasonal variation declined by 4% in November to
the lowest point reached this year.
As compared with November 1929, which had one more trading day,
the value of total sales in November 1930, was 14% smaller.
The Federal Reserve Board's index of department store sales for the
period January 1925 to date is shown below:
DEPARTMENT STORE SALES.
(Index numbers of daily average sales (*): 1923-1925 average=100.)
Adjusted for Seasonal
Variation. a
Without Seasonal Adjustment.
Month.
108
106
107
106
107
107
110
107
112
108
108
111
110
111
112
110
109
113
109
111
114
112
108
108
Year
90
87
97
102
109
100
77
82
104
120
124
184
91
89
95
109
105
101
76
85
103
117
126
182
91
88
97
105
107
102
80
81
113
118
125
192
90
91
107
103
109
108
79
84
117
122
125
191
I
I
I
107
108
106
106
105
106
105
111
104
107
108
106
1,
C00.fau)MCINCANCI .
00,—.0000000.. :
106
105
101
105
109
105
106
108
106
109
106
108
I eV 0Tr ut V)00.001,
,
,
1 C•,1 0
0000000041--C•CANCM
.
...
...
1
99
103
103
102
102
102
101
101
101
111
104
104
CO.-.0,
3•400.00000
00b24,4.
,00(110WOCO
1925 1926 1927 1928 1929 1930 1925 1926 1927 1928 1929 1930
January
February
March
April
May
June
July
August
September
October
November
December
103 106 107 108 111
'
'
1 Computed on the basis of the number of week days in each month-Saturday
being considered equivalent to one and one-third days-with al owance for six
National holidays: New Year's Day, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day, and Christmas.
a Adjustment has been made in March and April for the effects of changes In
the date of Easter.
sales are for about 40 stores located in six cities: Boston, New York, Pittsburgh,
Detroit, Cleveland and Los Angeles. In individual Federal Reserve districts more
than halt of the reported sales are made by stores in following cities: Boston, New
York, Pittsburgh and Cleveland, Washington, Detroit and Milwaukee, St. Louis,
Dallas and Houston, Los Angeles and San Francisco. The total number of reporting stores varies from about 65 for certain items to about 175 for other Items: in
indvidual Federal Reserve districts corresponding ranges are usually about as follows: No. 1, 8-30; No. 2, 8-12; No. 4, 18-84; No. 5, 7-11: No. 7. 8-30: No.8. 840:
No, 11, 8-14; No. 12, 8-20.
DEPARTMENT STORE STOCKS.
100.)
(Index numbers: 1923-1925 averag
End of
Month.
111111111111
--12
--17
--12
--14
--21
--21
--15
--12
-16
--13
F4TC;I:12.C?20211
..T2IT
-8
633
IIITIITTIIII
--9
5
4
8
4
12
3
6
30
8
6
6
4
I
--I4
I.e.C411,
04+30,
01000.C.clo
--17
-3
--15
-24
--5
--16
-11
-22
-9
-25
--14
--15
--12
-24
:11
Total (258 cities)__
F. R.DianaBoston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas Cilty
Dallas
Ban Francisco
Selected MtAkron
Atlanta
Baltimore
Birmingham
Boston
Bridgeport
Buffalo
Chicago
Cincinnati
Cleveland
Columbus
Dallas
Dayton
Denver
Detroit
99
67
63
57
34
42
101
21
23
38
21
67
5
6
Miltia or ata.
Selected CityDuluth-Superior--Fort 'Worth
Houston
Indianapolis
Kansas City
Los Angeles
Louisville
Memphis
Milwaukee
Minneapolis
Nashville
Newark
New Haven
New Orleans
New York
Oakland
Omaha
Philadelphia
Pittsburgh
Providence
Rochester
San Francisco
Salt Lake City__
Seattle
Spokane
St. Louis
St. Paul
Syracuse
Toledo
Washincton
Jan. 1 No.
Nov.
to
of
(*) Nor.30 Stores
--2I
-9
--21 --10
-20 -10
--19 --II
-9
-15
-13
--7
-23 --10
--31 --15
--19
-9
--15
--8
-16
-6
-3
--1
--4
--6
-8
-11
--1
-8
-4 1-10
-5
-2
--12
--7
--12
--6
-12
-9
-3
-11
--13
-6
--17 -11
--16
-7
--13
--8
-9
-17
--13
--6
--8
-II
-24 -18
-a
-2
4
5
5
5
4
10
5
4
5
4
4
6
4
4
12
4
3
12
7
7
4
6
5
5
3
4
5
4
4
7
• Comparisons relate to total sales during the month: in most cities there was In
November one less trading day this year than last year.
DEPARTMENT STORE SALES, BY DEPARTMENTS.
Percentage Increase (+) or decrease (-) in November 1930 compared with
November 1929.
(Monthly sales: the majority of the stores were open one day less this year
than last year.)
Federal Reserve District.
Total.
Department.
(*)
Piece Goods---16
Mike and velvets
--16
Woolen dres,s goods
Cotton wash goods
--7
Linens
--11
Domestics. musiles, &a__ --10
Ready-to-Wear Accesles
--22
Neckwear,scarfs
--20
Millinery
Gloves(women's,chilM's) --11
Corsets, brassiers----- __ --10
Hosiery (women's, chile) --I5
--17
Knit underwear
--7
Silk, muslin underwear
--I6
In/ant's wear
--14
Small leather goods
--15
Women's shoes
--8
Children's shoes
Women'slWear--__
Wornen's coats, suits__16
--18
Women's dresses
.-1-3
Misses' coats, sults
--18
Misses dresses
--12
Juniors', girls' wear
Men's. Boys' Wear--19
Men't clothing
Men's furn.,hats,care... --13
--16
Boys' wear
__.6
Men's, boys' shoes
House "vas/Awls---11
Furniture
--10
Oriental rugs
Domestic floor coverings_ --15
Draperies, upholstery_ --18
--in
China. glassware
Boo- New Cleve
,,Rich- CM- St. Dal- San
ton. York. land. mond cap. Louis las. Fran.
--8 --12 --14 --13 --21 --26 --13 --22
--I4 --9 --14 --18 --24 --24 --25 --18
--9 --4 --11
1-7 --I5 --25 --I6
1-4
--4 --4 --17
--20 --24 --4 --16
A-10 --3 --I5 --8 --21 --28 --26 -8
--I0
--I5
--3
--10
--9
--13
4-7
--23
--8
--9
--13 --27 --24
--6 --24 --I8
--17 --8
--6 --9 --12
--15 --18 --13
--13 --18 --11
--I --I0 --2
--9 --15
A-3
--8 --18 --10
--11 --20 --21
1-16 --19 --16
--3 --I --19
--1 --9 --18
1-12 4.17 --10
--16 --I5 --21
--2 --17
--10
--18
1-10
--23
--12
--29
--33
--23
--16
--17
--26
--15
--22
--24
--9
--17
--32
--26
--21
--20
--13
--25
--25
--24
--30
--23
--17
--30
--25
--12
--27
--25
--27 --31 --14
--32 --31 --23
--5 --10 --7
--21 --1 --17
--26 1-4 --15
--4 --10 --20 --16 --29
--2 --4 --14 --14 --24
--6 --6 --2I --11 --23
--7 --5 --6 --3 --18
--8
A-5
--5
--17
--15 --14
--30
--27
--32
--21
--33
--25
--14
--17
--18
1-16
--26
--20
--13
--21
--40
--29
--21
--2
--8
--17
--20
--10
--16
--14
--12
--5
--29 --I4
--13 --16
--23 --13
--I1 --2
--17 1-14 --25 --7
--16
--10 --55 1-11 --18
--64
--28 --15 --Hi --30
--13
--23 --9 --27 --26 --6 --I2
--23 --9 --30 --24 --29 --22
•Data are for about 200 stores with total annual sales In listed departments of
$850,000,000 and in all departments of $1,250,000,000. More than 50% of these
--12
--21
Without Seasonal Adjustment.
1925 1926 1927 1928 1929 1930 1925 1926 1927 1928 1929 1930
102
101
102
102
101
101
101
102
103
101
102
103
105
104
104
103
102
101
100
101
102
104
103
102
104
103
103
103
102
101
102
102
104
104
104
103
103
103
101
101
100
99
100
101
99
102
102
100
100
100
99
99
99
98
99
100
100
101
102
100
99
98
97
97
96
96
94
91
91
92
90
96
105
106
103
98
94
98
107
112
115
97
93
98
107
107
104
98
93
97
107
114
117
96
93
98
107
107
104
98
95
98
108
114
117
96
89
95
102
103
101
95
92
96
104
112
115
94
92
98
105
106
102
96
93
97
103
112
115
94
88
93
100
101
98
93
87
87
95
101
104
-
102 103 103 101 100
Year
Volume of Wholesale Trade in November Smaller Than
Year, Federal Reserve Board Reports.
Reports to the Federal Reserve System by wholesale firms
selling groceries, dry goods, hardware, and drugs indicate
that in all these lines sales in the month of November were
considerably smaller than a year ago. Reports for the first
eleven months of the year combined also show decreases as
compared with last year in the four lines of wholesale trade,
says the Board under date of Dec. 31, whose statistics follow:
PERCENTAGE INCREASE (+) OR DECREASE (-) BY
FEDERAL RESERVE DISTRICTS.
Line.
Jan. I No.
Nov.
to
of
(5) Noc.30 Stores
Adjusted for Seasonal
Variation.
January
February
March
April
May
June
July
August
September
October
November
December
DEPARTMENT STORE SALES.
(Percentage increase (-1-) or Decrease(-)from a year ago.)
District or City.
31
FINANCIAL CHRONICLE
JAN. 3 1931.1
District Number.
Sales, November 1930, Compared with November 1929.
Tot.
Groceries
Dry goods
Hardware_
Drugs
1
2
3
4
5
6
7
9
10
11 12
-17-17--20 --16-21 --16-26 --14
-14-14-18 --14
-28
-15-34 --3I
--25 --15-24 --17 -24 --29-31
--28
--18 --21 -22 --24-31 --31 -35-25-24-31 --30
--13
-7 --10-13 --15-21 --17-17
-15-21 --17
Sales, Jan. 1-Nov. 30 1930, Compared with Jan. 1-Nov. 30 1929.
Groceries
-6-11-7 -5 -81 -7-14
8 --2
Dr3,goods_
-25
-20-12 -20 -17-24 221 _f1.11 i1I--23
__5
21_Hardware_ _ _.-18
-15-11 -18 -16 -21 -24 -23 -15 -13-21 -18
Drugs
9
-11 -6-13 -12 -13 __-- -8 -18 -6
2
I Boston, 2 New York.
3 Philadelphia. 4 Cleveland. 5 Richmond.
• Atlanta. 7 Chicago, 8 St. Louis. 9 Minneapolis. 10 Kansas CItY. 11 Dalow. 13 San Francisco.
Decrease of 2% in Retail Food Prices Oct. 15-Nov. 15.
Index Numbers.
As was indicated in our issue of Dec. 20, page 3945, retail
food prices in the United States, as reported to the Bureau of
Labor Statistics of the United States Department of Labor,
showed a decrease of about 2% on Nov. 15, when compared
with Oct. 15 1930, and a decrease of about 111A% since
Nov. 15 1929. The bureau's weighted index numbers, with
average prices in 1913 as 100.0, were 159.7 for Nov. 15 1929,
144.4 for Oct. 15 1930, and 141.4 for Nov. 15 1930. The
index numbers follow:
INDEX NUMBERS OF RETAIL PRICES OF THE PRINCIPAL ARTICLES
OF FOOD IN THE UNITED STATES (1913=100.0)
Year and Sirl'n Rou'd Rib Ch'k Plate Pork BoButMonth. steak. steak. roast. road. beef. chops con. Ham. liens Milk. ter. Ch'se
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1929-Jan - _ - _
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
102.0 105.8 103.0 104.4 104.1 104.6 101.8 101.7 102.2 100.5 94.4 103.6
101.1 103.0 101.4 100.6 100.0 96.4 99.8 97.2 97.5 99.2 93.4 105.0
107.5 109.7 107.4 106.9 106 0 108.3 106 4 109.2 110.7 102.2 103.0 116.7
124.0 129.8 125.5 130.6 129.8 151.7 151.9 142.2 134.5 125.4 127.2 150.4
153.2 165.5 155.1 166.3 170.2 185.7 195.9 178.1 177.0 156.2 150.7 162.4
164.2 174.4 164.1 168.8 166.9 201.4 205.2 198.5 193.0 174.2 177 0 192.8
172.1 177.1 167.7 163.8 151.2 201.4 193.7 206.3 209.9 187.6 183.0 188.2
152.8 154.3 147.0 132.5 118.2 166.2 158.2 181.4 186.4 164.0 135.0 153.9
147.2 144 8 139.4 123.1 105.8 157.1 147.4 181.4 169.0 147.2 125.1 148.9
153.9 150.2 143.4 126.3 106.6 144.8 144.8 DNA 164.3 155.1 144.7 187.0
155.9 151.6 145.5 130.0 109.1 146.7 139.6 168.4 165.7 155 1 135.0 159.7
159.8 155.6 149.5 135.0 114.1 174.3 173.0 195.5 171.8 157.3 143.1 168.1
162.6 159.6 153.0 140.6 120.7 188.1 186.3 213.4 182.2 157.3 138 6 165.6
167.7 166.4 158.1 148.1 127.3 175.2 174.8 204.5 173 2 158.4 45.2 170.1
188.2 188.3 176.8 174.4 157.0 165.7 163.0 196.7 175.6 159.6 475 174.2
196.9 199.1 185.4 186.9 172.7 175.7 161.1 204.1 186.4 160.7 439 171.9
190.6 191.0 180.8 181.3 170.2 153.8 159.3 200.0 184.0 160.7 50.7 173.8
188.2 188.8 178.8 179.4 167.8 157.1 158.2 199.6 186.4 160.7 52.7 172.9
March__ 188.6 189.2 179.3 180.0 167.8 167.6 158.9 201.9 190.1 160.7 52.5 172.9
April _ 192.9 194.6 183.8 184.4 170.2 176.7 160.4 203.3 196.2 159.6 45.7 172.4
May _ _ _ 198.4 201.3 187.9 190.0 174.4 179.5 160.7 204.8 198.1 159.6 42.3 171.9
June _
201.6 205.4 189.9 191.9 176.0 179.0 162.2 205.6 193.9 159.6 40.5 171.9
July.....
'
206.7 210.8 192.9 195.6 177.7 188.1 164.1 209.7 187.3 160.7 39.4 171.5
Aug.
206.3 210.8 191.9 194.4 176.0 192.4 165.6 211.2 185.0 160.7 40.5 171.0
Sept____ 202.8 206.7 189.4 191.9 175.2 193.8 1644 209.7 184.0 160.7 43.1 171.9
Oct_ _ _ _ 198.0 199.6 186.9 187.5 173.6 185.2 161.9 204.8 180.3 161.8 45.4 171.5
Nov
_ 194.1 196 4 183.3 183 8 171.1 170.5 159.3 200.4 177.0 161.8 139.7 171.0
Dee__ _ 192.5 194.6 181 8 183.1 170.2 163.3 157.4 198 5 174.2 161.8 134.7 170.6
1930Jan
192.9 195.5 183.3 184.4 172.7 168.1 157.0 199.3 178.4 159.6 121.9 169.2
Feb_ ..__ 191.3 194.2 181.8 184.4 171.9 167.6 157.8 200.7 179.3 158.4 122.7 167.0
Mar..___ 190.6 192.8 181.3 182.5 170.2 171.9 157.8 201.1 179.8 157.3 121.9 164.7
125.6 162.9
190.2 193.3 181.3 182.5 168.6 176.7 1574 200.4 179.3
'
3 120.9 182.0
May ___ 190.2 192.8 179.8 179.4 164 5 171.9 156.7 200.7 175.6 g
2
June ___ 188.6 191.5 177.3 175.6 160.3 174.3 156.7 200.7 167.6 157.3 113.1 157.9
July____ 182.3 184.3 171.7 166.3 149.6 173.8 1.56.7 200.0 161.5 157.3 114.1 155 2
175.6 176.7 163.1 155.6 138.8 174.8 155.6 198.1 158.7 157.3 123.8 153.4
Sept-___ 177.2 178.0 166.7 160.0 142.1 186.2 158.1 198.9 159.6 157.3 127.2 154.8
175.2 176.2 164.1 158.7 142.1 180.5 157.8 197.4 158.7 157.3 124.8 154.8
Nov_ ___ 170.5 170.9 161.1 154.4 139.7 156.2 155.9 193.7 153.1 157.3 118.5 152.9
[VOL. 132.
FINANCIAL CHRONICLE
154.6
154.4
153.0
151.6
153.3
154.8
158.5
160.2
160.8
160.5
1697
158.0
143.4 147.0
143.2 143.3
142.8 140.8
142.5 138.9
142 5 137.2
143.0 136.2
142.6 135.6
142.3 134.6
142.1 132.6
141.9 131.2
141.2 129.9
155.4
163.0
150.1
151.2
150.1
147.9
144.0
143.7
145.6
144.4
141.4
Locality.
Grocery
Ten cent
Drug
Shoe
Variety
Candy
Percentage Change November 1930
Compared with November 1929.
Number of
Stores.
Total
Sales.
Sales per
Store.
+6.1
+5.3
-2.7
+7.1
+7.9
-2.2
-1.0
-9.0
-15.2
-18.6
-17.3
-20.8
-6.7
-13.6
-12.9
-24.0
-23.4
-19.0
+5.6
-10.2
-15.0
Business Improvement Before End of Winter Looked
for by Central Trust Co. of Illinois at Chicago.
In its "Digest of Trade Conditions," dated Dec. 31, the
Central Trust Co. of Illinois at Chicago views the outlook
for 1931 as follows:
Metals and minerals production is not expected to show an increase
for the coming year and, in the cases of oil and copper particularly, an increased output is not to be desired. Rubber and silk imports may not be
larger but the consumption in manufacture of rubber, silk, cotton, wool
and rayon may show some increase, with leather production and consumption at about the 1930 level.
The prices of raw materials should remain low at the opening of the year
and materially strengthen at the close, with wholesale prices of merchandise
continuing to shade downward until near the close of 1931. The readjustment ofretail prices has probably not been completed and further reductions
on those articles which are still holding at former levels may be expected.
Salaries and wages may experience some further shrinkage during the
year. although unemployment promises to gradually decrease, the improvement in this regard being most marked in manufacturing enterprise.
Rail and water tonnage should both show increases over the present
year, the greater increase taking place in water-horned tonnage. Tonnage
moved by motor trucks does not promise to materially increase, except
where railroad companies are establishing truck routes as feeders, and to
take the place of branch lines.
Agriculture apparently faces a good year in 1931 and, if the short corn
crop results in the feeding of large quantities of small grains to livestock,
the carryover into the next crop year may be the smallest for several years.
This, given a well-balanced crop production for 1931. would serve to
stabilize the agricultural industry. With fewer meat animals on firms,
and with prospects of a further decline through present breeding operations,
the livestock outlook is more encouraging.
During 1930, we have paid heavily for the excesses of 1929. When a
balance has been reached, the upturn must occur. Slight betterment is
promised immediately after the turn of the year, with more improvement as
soon as the actual operations of 1930 are generally known. Past experience
is not always a guide but the trend, as indicated by the fundamentals,
should bring about a business improvement which, although not large,
should be clearly apparent and unmistakable before the end of winter.
11111111111
1 1.0 ......
m.p.w.w000 4
Per Cent of Charge
Accts. Outstanding
Odober 31
Collected in
November.
1929.
1930.
-3.4
-5.4
-5.5
-6.8
-3.4
-8.2
-6.8
----------
47.8
51.4
43.3
33.4
46.3
38.6
41.7
-------
48.8
48.7
41.4
31.0
42.0
38.2
38.6
------
-------4.0
-13.2
---
---
46-.5
4
47.5
4--.4
45.0
Net Sales
Percentage Change
November 1930
Compared with
November 1929.
Stock on Hand
Percentage Change
Nov. 30 1030
Compared with
Nov. 30 1029.
Toilet articles and drugs
Women's and Misses ready-to-wear
Men's furnishings
Cotton goods
Toys and sporting goods
Women's ready-to-wear accessories
Shoes
Silverware and jewelry
Linens and handkerchiefs
Furniture
Men's and Boys' wear
Woolen goods
Home furnishings
Luggage and other leather goods
Books and stationery
Silks and velvets
Hosiery
Musical instruments and radio
Miscellaneous
+
•
Total sales in November of the reporting chain store organizations
averaged 10% less than a year ago, which, after allowance for the fact
that there was one less selling day this year than in 1929. indicates a reduction of about 6% in the daily rate of sales. The daily sales of grocery
chains showed a small increase over a year ago, but the sales of all other
chain systems continued well below those of a year previous. After making
allowance for the one less selling day this year, the sales of drugs and shoes
showed smaller decreases than in October, but sales of variety and candy
chains showed larger decreases. Lower prices undoubtedly account for a
considerable part of the declines in the dollar volume of sales compared
with a year ago.
Stock on
Net Sales. Hand End
of Month.
-
Falling Off of 10% in Chain Store Trade in New York
Federal Reserve District During November.
Conditions in chain store trade in the New York Federal
Reserve District are indicated in the following from the
January 1 Monthly Review of Credit and Business Conditions by the Federal Reserve Agent at New York:
Type of Store.
Percentage Change
November 1930
Compared with
November 1929.
-
00=
owcom..000r.n
N
142.5 166.1
142.6 166.1
142.6 166.4
142.6 166.4
142.6 158.1
142.5 165.8
142.3 165.8
142.5 165.4
142.6 165.1
142.6 164 8
142.3 142.1
142.8 155.4
Reports from the leading department stores in the metropolitan area for
the fist 24 days of the month, indicated that the holiday trade in these
stores was about 434'% smaller than a year ago. There was one more selling
day this year than in the corresponding period in 1929, but it is not clear
that this would have any material effect on the volume of business done.
Assuming a decrease of the same amount for the entire month of December,
the total sales of the reporting stores for the year 1930 will have been about
% smaller than in the previous year. Taking into consideration the
downward tendency of prices during the year. it seems probable that the
actual quantity of goods sold compared favorably with that of 1929.
November department store sales were nearly 8% smaller than in 1929,
but as there was one less selling day this year, the average daily sales showed
a decline of about 4%, a smaller decline than in October. All sections in
this district reported a decrease in sales, the declines ranging from 3% to
16%. The leading apparel stores continued to report a substantial decrease in sales, but the decline in the daily average volume of sales was the
smallest since August.
a 4m0,;
m -c7o=
cEEE
go..
a
NNNNN
100.0
102.4
101.3
113.7
146.4
168.3
185.9
203.4
153.3
141.6
146.2
145.9
157.4
150.6
155.4
154.3
156.7
MWWVOWX
.c!Rol"!,
MN
100.0 100.0
100.4 99.7
100.2 100.6
100.4 100.3
106.9 101.4
119.1 102.4
128 9 145.3
134.7 157.7
128.1 121.8
125.2 121.1
127.8 126.5
131.4 145.3
138.8 172.8
1416 171.1
142.5 162.1
142.3 165.1
142.6 164.8
IIII
97eloaced
Food
Index
Lini+1
.. OWNIII
Co!fee
L+I
Tea
"
• om oxV1*-041
..t'0421,1 EarD:k
g=ir
W
m cla:4e.s.gacr.;,
oraEt.g4Ual r;
6.133 cm'e: .
iliszzmx '
ca4;1 471
NM
QMOCCOONNMNM,0.0000
ov.moommolimege4
ooeavorc,
Year and Lard Eggs Bread Flour Corn Rice Pota- Sugar
Month.
meat
toes
1913
100.0 100.0 100.0 100.0 100.0 100.0 100.0
1914
98.6 102.3 112.5 103.9 105.1 101.2 108.3
1915
93.4 98.7 125.0 125.8 108.4 104.3 88.9
1916
111.0 108.8 130.4 134.6 112.6 104.6 158.8
1917
174.9 139.4 164.3 211.2 192.2 119.0 252.7
1918.... 210.8 164.9 175.0 203.0 226.7 148.3 188.2
1919.... 233.5 182.0 178.6 218.2 213.3 173.6 223.5
1920..... 186.7 197.4 205.4 245.5 216.7 200.0 370.6
1921 ----. 113.9 147.5 176.8 175.8 150.0 109.2 182.4
1922
107.6 128.7 155.4 154.5 130.0 109.2 164.7
1923
112.0 134.8 155.4 142.4 136.7 109.2 170.6
1924
120.3 138.6 157.1 148.5 156.7 116.1 158.8
1925
147.6 151.0 167.9 184.8 180.0 127.6 211.8
1926
138.6 140.6 167.9 181.8 170.0 133.3 288.2
1927
122.2 131.0 168.1 166.7 173.3 123.0 223.5
1928
117.7 134.5 162.5 163.6 176.7 114.9 158.8
1929
115.8 142.0 160.7 154.5 176.7 111.5 188.2
1929Jan-- 117.1 146.7 160.7 154.5 176.7 112.6 135.3
Feb__ 116.5 142.3 160.7 154.5 176.7 112.6 135.3
March__ 116.5 122.0 160.7 164.5 178.7 112.6 135.3
Apr11__ 117.1 106.4 160.7 154.5 176.7 112.6 135.3
May_.. 116.5 112.2 160.7 151.5176.7 111.5 158.8
June
115.8 120.0 160.7 148.5 176.7 111.5 182.4
July
_ 115.8 127.8160.7 151.5 176.7 111.5 229.4
Aug__ 116.5 140.0 160.7 157.6 176.7 112.6 235.3
Sept.__ 117.1 153.6 160.7 1606 176.7 111.5 229.4
Oct .._ _ 115 8 168.1 158.9 157.6 176.7 111.5 223.5
Nov__ 113 9 183.5 158.0 157.6 176.7 111.5 223.5
Dec
111.4 182.0 158.9 154.5 180.0 110.3223.1
1930Jan ____ 108.9 160.6 158.9 154.5 180.0 110.3 229.4
Feb
108.2 136.8 157.1 154.5 176.7 110.3 229.4
Mar____ 107.0 102.3 157.1 151.5 176.7 109.2 229.4
Apr11._ 108.3 100.0 157.1 148.5 176.7 110 3 241.2
105.7 97.7 157.1 145.5 1787 1002 252.9
May
June-. 105.1 97.4 157.1 145.5 176.7 109.2 247.1
July._ _ 103.2 101.7 157.1 139.4 176.7 109.2 194.1
104.4 112.5 155.4 136.4 176.7 109.2 182.4
Aug
Sept..- 110.8 124.9 155.4 133.3 176.7 110.3 188.2
Oct.-- 112.0 129.9 153.6 130.3 176.7 109.2 182.4
Nov.__ 110.8 140.3 151.8 127.3 173.3 106.9 170.6
Holiday Trade in Department Stores in New York Declined About 43/.
2% as Compared with Last Year,
According to Federal Reserve Bank of New York.
Regarding department store trade in this District the Federal Reserve Bank of New York comments as follows in its
Jan. 1 Monthly Review:
11111 11111 1 1 1 1
MIMI NUMBERS OF RETAIL PRICES OF THE PRINCIPAL ARTICLEs
OF FOOD IN THE UNITED STATES.
,...L4cc CC 6ix.Wbbo64:,642
32
Business Survey by Marine Trust Co. of Buffalo.
In its weekly business survey "Soundings," dated Dec. 29,
the Marine Trust Co. of Buffalo thus comments on business
conditions:
Business at the year end shows little change from recent desultory levels
and cross currents continue to obscure the near-term significance of current
conditions in trade and industry.
There is the usual and anticipated post-Christmas tapering off, tending
to be emphasized by preceding levels. Retail trade enters the inventory
season after holiday business not up to more optimistic expectation but
nevertheless relatively good. Some acceleration in steel and automotive
activity is expected after Jan. 1, but steel will begin the year at 35% or
less of capacity. Recent relative improvement in freight car loadings has
not held. Aside from some strength in copper, commodity prices have
tended lower.
Upturn in most lines would be reasonable after the inventory period
but current and recent levels do not suggest much basis for the more optimistic views of first quarter possibilities. Most conservative observers
see signs of favorable forces at work but are thinking in terms of further
readjustment with constructive cast more visible rather than in terms of a
definite about-face with the arrival of the new year.
The Department of Commerce's Weekly Statement of
Business Conditions in the United States.
According to the Department of Commerce for the holiday week ended Dec. 27 1930 bank debits showed a decline
from the week previous and were also under the corresponding week in 1929. Business failures decreased from the
week previous, even after corrections are made for the number
of business days. Total loans and discounts of Federal
Reserve member banks continued the fractional decrease
of the previous four weeks, but in comparison with the same
week in 1929 a decline of 6.3% was recorded. Interest rates
were the same as a week ago for time money, but call money
rates were lower. Both rates were materially lower than a
year ago. Prices of representative stocks declined to the
lowest point of the year, while bond prices rose slightly.
JAN. 3 19311
FINANCIAL CHRONICLE
The Federal Reserve ratio while declining slightly was considerably higher than a year ago.
Wholesale commodity prices dropped by 0.5 points last
week to the lowest recorded this year. Farm products,
textiles, metals and building materials groups alone rose
during the week. Cotton middling and iron and steel prices
were the same as for the previous week.
The receipts of wheat at important centres continued to
increase over the previous week, while cotton receipts continued to decline. Cotton movements are under this time
last year.
For the week ended Dec. 20 increases over the previous
week occurred in bituminous coal production and in building
contracts awarded in 37 States. Declines from the previous
week were recorded in the production of steel ingots and in
petroleum production.
1930.
1928.
1929.
45.4
• Quantity not value. Reported by Silk Association of America.
•Rooms:by the National Madame Tool Builders' Association,
. al
a.
.geN ... e.aull. 8-..
.g 4=444 w
...4
WW
10.W4.
MID woowW.14
tt 8485=1.
Eg gEEggEE
•
.48..03
..
-4po000.
101,096,000
80,781.900
49.6
-4.2 -47.2 -15.9
---- -23.8
----
169,867,900
101,208,100
84.4
58.5
18.7
a .
.
ie & ;..03
.e
.
c
a'
nn4
t
.4
8 .
"
"
Eg gE 88188g8
.
0ie
318,651.400
72,361,100
68.2
____
62.7
-23.2 1 27.2
391,012,500
-22.3
-26.7
-32.9
253,573.700
68.3
27.2
31.2
46.7
41.2
38.3
41.1
720,301,000
71.7
37.4
33.0
46.1
42.3
32.4
48.4
519,621.100
-13.7
.....__
-22.0
-15.1*
-30.6
+31.3
-12.0
271.076,000
298.545,100
-20.0
-33.2
-24.6
+2.4*
-22.9
-7.0
-18.0
899,296,300
689,120,000
362,066,200
146,056.300
114,070,200
100.493,700
128,621,300
1930.
605,218,000
443,286.900
351,524,500
157,426.600
120,269.800
88,160,400
107,199,400
-24.3
-24.8
____
____
+0.8
1929.
1,194,658,300
1,034,036.800
396,380.800
216,913,700
196,789,600
156,962,100
205,079,800
-9.0
-15.3
-17.2
Stock
End of
Month.
815,699,900
1,049.491,500
443,687,700
250,038,200
237,776,600
128,347,000
210,889,300
Weighted average
-17.4
+3.7
-45.2
____
-26.1 -11.3
-8.4* +0.9
1 -27.3 -14.5
-26.0 -11.1
-18.1
-6.4
Net
Sales.
.......
.
p w.
mp ...
ow .omo
fta
a
7,b -
tr4 1
•
V
gi gg ......p.
2,439,734,000
1,801.677.700
Groceries
Men's clothing
Cotton goods
Silk goods
Shoes
Drugs
Hardware
Machine tools**
Stationery
Paper
Diamonds
Jewelry
Stock
End of
Month.
1.873.085,600
1.030.401,400
Net
Sales.
Percentage
Percent of Accounts
Change,
Outstanding
November 1930
Od. 31
Compared with
Colleded la
November 1929,
November.
11.
1
1
i
8121E11
11
•
s•
s,
4$
E.,..4 Web .t..
8.
0 tw
. to I 1
ig ;T:.-421-.1414
'
CO ;P. 8
-.
4
, ft0 .4..
to Ca
8-••
.am .. .w.8.
,
!mo
4 .n .2 tgnr.561 F
74 74 sn .........;....
.4 .4. .0 ..... - 0 ,..o.- .8 fp •
g *
lc In -,,,ig
- to
t1.1*0 b wl..1 1..3 bm04.W.W
6
.env, co..a Y2wo..n
1
tignZnng
V; -c.'it°4
0 ..,.. ..§ -014-0,10- g gIo ?$!.
1....
4144
8 88 8 8888888
8 2i2888:
. .
..
..
....
aq
WWWWWW..
.
WW
in... .C91400
.
0*
.4
.
01411*
a
.. -.....
4,241,401.700
1,196,520,700
Commodity.
Percentage
Change,
Norensber 1930
Comps ed with
0c,obe 1930.
1
1
-2
41
.
.-. -4.
.
:
4 ..
0.4.
.....
.
..104
.-...- WW ;P..WW;-.WW:k.
1. VW
4 84 Z.J.7 2tn744g =I
....
1+
WW
W.4 WOOW
4. W
N
'
CM IAD 14
.
0 Wo.'w1Wolew b 1014
4 p.c.; v..
, gg8r484 4 ZN
.1 EE EE EEEEEEg E gE
5,937,922.400
The total sales reported by grocery, cotton goods, shoe and paper dealers
decreased more than 20% from the previous year. Sales of stationery.
hardware, men's clothing, and diamonds also continued to be substantially
below November 1929, but the decreases in these lines were smaller than in
October. The sales ofdrugs continued to show a smaller decrease than most
lines, amounting in November to 7%. Machine tool orders, reported by
the Machine Tool Builders' Association, declined further and were only
one-third the volume of last year. Jewelry sales were only slightly more
than one-half the volume of a year ago Contrary to the general tendency,
an increase in sales of silk goods was reported by the Silk Association of
America, but their figures are in yardages rather than dollar value.
The value of stocks of merchandise held at the end of November by all
reporting lines, with the exception of drug firms, were considerably below
1929. Collections were slower than the previous year in most lines.
Ca
1
Wholesale Trade in New York Federal Reserve District
in November 24% Below Year Ago.
In its January 1 Monthly Review the Federal Reserve
Bank of New York states that "reporting wholesale firms in
this District showed total November sales 24% below last
year, which, after adjustment for the number of selling days
indicates a slightly smaller decline than in October." The
Bank likewise has the following to say regarding wholesale
trade:
to
EH1818
"8§
g 4.r.
w.
14M1r.M..
'
w "o 1.1D 4414 w.wo.
Ca e,o4 .I'V4 24n2448 8 n2 na 88n2Un
3,400,321,100
2,747,026,500
97.2 96.9
96.8 96.5
98.0 97.7
85.3 86.0
75.7 75.0
87.5 87.5
117.4 114.5
119.3 150.6
131.1 130.8
251.5 178.8
191.4 188.6
88.2 120.6
231,5 222.2
107.3 107.2
79.5 83.2
104.5 104.2
3,135,930,200
1,542,370,600
93.1 92.8
99.5 98.8
91.3 91.2
94.6 91.5
64.0 62.5
86.7 86.9
129.0 129.0
112.3 143.2
138.5 138.8
136.4 109.1
114.3 114.3
97.3 122.4
205.5 208.7
104.7 104.8
87.2 89.4
103.4 102.3
o.1..'-o'st-oost
'cob
.
mowwwooto
tow.-wwww
.....
..',2',
o coo :
40 otom.-T.v..s
2,903,487.000
1,372,111.600
116.7 105.3
68.6 98.6
143.8 162.3
40.2 63.9
80.3 118.5
4,275,598.600
61.1 64.6
49.3 60.8
106.2 176.2
45.9 68.0
59.8 107.7
-48
es-
6,147,347,600
1,874,449,300
105.3 107.9
70.7 113.4
123.9 122.5
69.6 93.7
-- -- -- --
8,021,796,900
51.3 82.9
79.4 *116.6
125.2 126.5
66.6 87.9
-- 94.8
1
Steel ingot production
44.7 48.7 48.7
Bituminous coal production
- -- 95.6 90.1 98.6
Petroleum produc'n (daily avg..). __ __ 105.7 107.2 107.0
Freight car loadings
77.6 82.1
a Lumber production
57.6 62.9 61.9
Building contracts, 37 States
(daily average)
61.2 45.3 72.7
Wheat receipts
67.4 59.5 39.9
Cotton receipts
108.5 133.8 139.2 158.5
Cattle receipts
76.9 92.1 98.4
Hog receipts
84.1 90.3 103.5
Wholesale prices:
Fisher's index (1926=100)Total (120)
79.0 79.4 79.8 80.7
Agricultural products(30)
74.8 74.9 75.5 76.9
Non-agricul. products (90)._ 79.3 80.0 80.2 80.5
Wheat No.2 red, Kansas City. - - - - 55.0 55.8 55.0
Cotton. middling
36.0 36.0 36.4 38.6
Iron and steel composite
76.5 76.5 76.9 76.9
Copper, electrolytic price
__ __ 71.7 72.5 78.3
Bank debits outside N. Y. City 109.6 119.3 97.9 107.1
Bank loans and discounts
-- 130.1 131.4 132.1
Interest rates-Call money
48.5 58.7 48.5 48.5
Time money
68.6 68.6 62.9 64.7
Business failures
112.0 148.4 138.1 146.9
Stock prices
146.4 148.4 152.5 162.2
Bond prices
105.2 104.2 104.6 106.0
Federal Reserve ratio
94.2 97.8 102.2 103.0
Money in circulation
100.3 97.4 95.5
•Revised.
R.fic.g-g-Eo. Ea
17.903,748,400
Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec.
27. 20. 13. 6.
28. 21. 29. 22.
contracts awarded is $4,275,598,600, as compared with
$5,437,922,400 in the corresponding period of 1929.
We give below table showing the details of projects contemplated in November and for the 11 months of this year,
as compared with the corresponding periods a year ago.
The table also shows the details of the contracts awarded
for the same periods. These figures, it is stated, cover 91%
of the construction in the United States.
.
• "gmgaT
vl SWmg52
.1 cog P perazagr,.3 nj FIX F1=ogn 013 k
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8 4„, ii egwimaR8 0, ai
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1
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d
g •H . Ma=0.
'"tva a =
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i
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PIN
It
;fa
6
r.. 64
. I
i
.
.
...
.
...
v
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."
.
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4ea.14Ww 14 ow
M". M.4242...ws.w
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ww bo
ww gowwow.
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w&ww.o 0
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.....4..
P.co
Number
of I Valuation. I
Projects.
WEEKLY BUSINESS INDICATORS.
(Weeks Ended Saturday. Average 1923-25=100.)
33
NW
0500.4.w0
88 811-gra
6
.
PI
Commodity Price Index Advances Slightly During
Holiday Week, According to National Fertilizer
Association.
The wholesale price index of the National Fertilizer Association, consisting of 476 quotations, computed every Monday
morning, advanced two fractional points during the week
ended December 27. The rise in the index follows three
consecutive weekly declines totaling more than two full
points. During the week ended December 20 the index number allowed a decline of seven fractional points. The index
number now stands at 79.3 compared with 79.1 for the preceding week, and 95.0 for the corresponding week a year ago.
(The index number 100 represents the average for the three
years 1926 through 1928). The Association likewise says:
Of the 14 groups comprising the index, eight were undisturbed during
the last week. Only one group, namely, fats and oils declined. The five
groups that advanced during the last week were textiles, other foods, metals,
building materials and grains, feeds and livestock.
The prices for 14 commodities advanced during the last week, while 19
commodity prices simwed losses. Included in the list of the rising prices
were cotton, cottonseed oil, raw silk, eggs, cattle, light hogs, lambs, copper,
sine and rosin. Among the commodities that showed price declines were
wool, lard, linseed oil, tallow, raw and granulated sugar, hay, heavy hogs,
practically all grains, hides calfskins, leather and rubber.
National Fertilizer Association Reports that Wholesale
Construction Contracts in November Smaller.
Price Index Dropped 16% During] Last Twelve
Months.
. Total construction contracts awarded during November
The wholesale price index of the National Fertilizer Asso1930 in the 37 Eastern States amounted to $253,573,700,
according to statistics compiled by the F. W. Dodge Corp. ciation declined more than 16% during the last twelve
In November 1929 these construction contracts aggregated months. The index number at the middle of December was
$391,012,500. For the 11 months of 1930 the aggregate of 79.1 compared with 95.0 twelve months ago. Two years ago
the index stood at 97.7. The Association on Dec. 30 had the
following to say:
The decline of wholesale prices during the last twelve months has been
steadily downward. In the spring an upward movement began but was
short lived. Again in the late summer the drouth gave an impetus to
higher prices. The possibility of a shortage in the production of corn
and vegetable crops was reflected for a time in the prices of foods and
other commodities. Coincident with the breaking of the drouth and the
possibilities of more nearly normal crops, wholesale prices again resumed
their downward trend.
The textile group, which includes cotton, cotton yarns, cotton cloths, wool,
silk, rayon and kindred commodities, declined approximately 29% during
the last twelve months. The group of grains, feeds and livestock declined
more than 20%. Other groups which declined more than 15% were
metals, fats and oils, and fuels. Building materials, fertilizer materials,
miscellaneous commodities, automobiles and mixed fertilizer groups declined
between 5 and 15%. Chemicals and drugs, house furnishings and agricultural implements declined lees than 5%.
The index of the National Fertilizer Association is computed every Monday morning. It includes 244 items embracing 476 commodity price quotations, segregated into 14
groups. The base price taken for the index is the average
price for the years 1926 to 1928.
November 1930 Production of Electric Power in the
United States Approxirately 7% Below that for
Corresponding Month in 1929.
According to the Division of Power Resources, Geological
Survey, electric power produced in the United States by
public utility plants during the month of Nov. 1930 totaled
about 7,692,495,000 kwh., a decrease of approximately
7% as compared with the same month in 1929, when output
amounted to around 8,242,000,000 kwh. Of the total for
Nov. 1930 there were produced by fuels 5,519,864,000
kwh. and by water power 2,172,631,000 kwh. The
Survey's statement follows:
PRODUCTION OF ELECTRIC POWER BY PUBLIC UTILITY POWER
PLANTS IN THE UNITED STATES (IN KILOWATT-HOURS).
Total bit Water Power and Fuels.
Division.
Sept. 1930.
Oct. 1930.
Nov. 1930.
516,493,090 570,147,000 531,919,000
New England
Middle Atlantic_ _ 2,023,437,000 2,199,541,000 2,122,197,000
East No. Centml___ 1,752,640.000 1,891,618,000 1,810,478,000
West No. Central_ 502,189,000 517,182,000 483,888,000
818.620,000 869,769,000 789,022,000
South Atlantic
307,584,000 325,504,000 295,745,000
East So. Central
440.610,000 422,685,000 386,365,000
West So. Central_
321,887,000 305,887,000 279,602,000
Mountain
1,081,453,000 1,070,714,000 993,279,000
Pacific
Total for U.S
7,784.893,000 8.173,007,000 7.692,495,000
Chance In Otdput
from Previous Year.
Oct.'30. Nov.'30.
-7%
-20%
+4%
-6%
-6%
-2%
-7%
-1%
-7%
-2%
-23%
-3%
-9%
-11%
-2%
-8%
-7%
-2%
-9%
0%
The average daily production of electr city by public utility power
plants in the United States in November was 256,400,000 kwh., about
2% less than for October. The normal change in the average daily
production from October to November is an increase of about 134%•
The daily production ofelectricity by the use of water power in November
was slightly less than in October, owing to the continuance of drouth
conditions through November in some sections of the country. In a normal
year the lowest average daily production of electricity occurs in September
and the daily production of electricity in November is normally about
7% greater than in September. This year the average daily output in
November was about 334% less than in September.
An estimate based on the output for the 11 months of thiseyear indicates
that the total production of electricity in the United States in 1930 will be
about 95,300,000,000 kwh. The total output in 1929 was 97,350,000,000
kwh. The total production of electricity in 1930 was therefore about 2%
less than in 1929, but it was 7.4 billion kwh., or 834% larger than the
output in 1928.
In making comparisons of figures for 1930 with those for 1929, consideration should be given to the fact that 1929 was a peak year in practically all
industries and consequently in the use of electricity. The average yearly
increase in production of electricity for public use by public utility power
(The Coal Division, Bureau of Mines, Department of Commerce, cooperates in the preparation of these reports.]
Analysis of Dun's Statistical Record.
Dun's statistical record for 1930 reflects the economic
readjustment that has been practically worldwide in scope.
It states that the year just ended was without parallel in
various respects, and the indices which measure commercial
and financial movements revealed striking changes. As
was natural in the circumstances, the principal barometers
of trade pointed sharply downward, with the declines made
the more conspicuous by the comparisons with the high
figures for 1929. The insolvency returns, of course, showed
a marked upward trend, disclosing the effects of the farreaching depression.
Data annually compiled by R. G. Dun & Co., covering
15 indicators of this country's activities, show the degree
to which the widespread economic transition affected the
statistical record. After setting a new maximum in 1929,
bank clearings dropped about 25% last year, while the decrease in gross railroad earnings approximated 16%. As a
result of reduced harvests and lower prices, the value of
farm crops was smaller by nearly 28%; merchandise exports
from the United States fell some 27%, and the decline in
imports was fully 30%. The contraction in shipments of
cotton, which amounted to about 25% in quantity at
appreciably lower prices, contributed largely to the shrinkage
in value of all merchandise exported. Dun's further states
under date of Dec. 31:
In manufacture the much-reduced production of both pig iron and steel
stood out prominently. Thus output of pig iron was some 25% less than
that for 1929, while the drop in the make of steel was in about the same
ratio. A further reflection of the curtailed activities in the latter industry
appeared in the smaller unfilled orders of the leading corporation, latest
available statistics showing a decline of 12%. As an indication of the
restriction of domestic cotton mill operations, consumption of this staple
fell approximately 24%•
Two of the most significant business indices-commodity prices and
commercial failures-reflected pronounced changes for 1930. The number
of failures, exclusive of banks,rose to 26,300, a new high record for all time,
and their liabilities also were unprecedented, at $663,100,500. The decidedly adverse insolvency exhibit was to be expected in a year when
business encountered so many difficuties. During almost the entire twelve
months the trend of wholesale commodity prices was toward lower levels,
with the most recent compilation of Dun's Index Number fully 14% under
the figure for the corresponding date of 1929.
DUNS' STATISTICAL RECORD.
Steel production (tons)Excess mdse. exportsBank clearings40,000,000
1930....
1930..._ $795,000,000
1930_. $540,350,000,000
1929....
54,850,400
841,134,000
1929____
1929.. 714,365.900,000
Unfilled steel tonnage aCommercial failuresRailroad earnings'3,639,638
1930....
$663,100,500
1930_
1930-,. $5,249,700,000
4,125.345
1929....
483,259,000
1929....
1929._
6,213,100,000
Bond sales (par value)- Cotton consum.(bales)Farm crops5,325,300
1930-..
1930.... $2,775,200,000
1930._ 36,274,824,000
1929....
7,051,100
1929.... 2,983,741,100
1929._
8,675,420,000
Cotton exports (bales)
Stock sales (shares)Mdse. exports1930_
5,495,500
1930.... 5810,300.000
1930._ $3,845,000,000
7,417,700
1929.1929____ 1,124.991.400
1920.._
5,240,995,000
Dun's price index aPig iron output (tons)Mdse. imports3163.020
1930-31,700.000
1930....
1930._ 53,050,000,000
188.989
1929-42,285,800
1929....
4,399,861,000
1929._
*Gross earnings. a To Dec. 1, both years.
Flour Production Declined During the Four Weeks
Ended Dec. 27 1930-Slight Change Shown for
the Calendar Year 1930 as Compared with the
Preceding Twelve Months.
General Mills, Inc., summarizes the following comparative flour milling activities as totaled for all mills reporting
in the milling centres as indicated:
PRODUCTION OF FLOUR.
plants from 1921 to 1928 was 6.7 billion kwh.; the increase from 1928 to
1929 was 9.5 billion kwh., or 40% larger than the average of the previous
seven years. This condition should not be overlooked in comparing the
production ofelectricity in 1930 with that in 1929.
TOTAL MONTHLY PRODUCTION OF ELECTRICITY BY PUBLIC
UTILITY POWER PLANTS IN 1929 AND 1930.
September__
.
Oi..tober
November __
December_
Total
1929.
1930.
65%
b3%
b2%
bi%
1%
---2.5%
5.7%
3.7%
6.3%
6.7%
13%
812%
10%
15%
14%
11%
13%
11%
11%
10%
6%
8%
33%
33%
89%
42%
43%
40%
38%
34%
31%
31%
32%
32%
34%
35%
409
41%
40%
89%
____
11%
36%
1929.
(kwh)
1930.
(kwh)
1930
Over
1929.
8.240,000.000
7,431,000,000
7,992.000,000
7.882.000,000
8,088.000.000
7,768,000,000
8,072.000,000
8,356.000.000
8,062,000,000
8,709,000.000
8,242,000,000
8,512.000.000
8.652.000.000
7,618.000,000
8,175,000.000
8,000.000.000
8,015,000,000
7,752,000,000
7,869.000.000
7.878.000.000
7.765.000.000
8,173,000,000
7,692,000,000
97 252 nen
ma
PrOduced by
Water Power.
Increase
1929
Over
1928.
Decrease
January....
February....
March
April
May
June
July
August _ _ .._.
132.
FINANCIAL CHRONICLE
34
35%
7
820
29%
28%
28%
a Based on output for 28 days. b Increase 1930 over 1929.
The quantities given in the tables are based on the operation of all power
plants producing 10,000 kwh. or more per month, engaged in generating
electricity for public use, including central stations and electric railway
plants. Reports are received from plants representing over 95% of the
total capacity. The output of those plants which do not submit reports
is estimated; therefore the figures of output and fuel consumption as
reported in the accompanying tables are on a 100% basis.
Northwest
Southwest
Lake, Central and Southern
Pacific Coast
Grand total
Production
4 ',Weeks
Ended
Dec.27,
Production
Same
Period
Year Ago.
Cumulative
Production
Since June
30 1930.
Cumulative
Production
Same Period
1929.
Barrels,
1,510,243
1,850,533
1,855,473
338,230
Barrels.
1,555,845
1,897,602
1,825,157
394,619
Barrels.
12,134,849
13,270.211
13,276,310
2,354,033
Barrels,
12,279,296
13,516,063
12,786,4(15
2,557,567
5.554.479
5.673.223
41.035403
41_130.391
Notts.-Mb;authoritative compilation of flour milling activity represents &Unroll"'
metal, 90% of the mills In principal flour-producing centers.
J. Barstow Smull, President, Chamber of Commerce
of the State of New York, on Outlook for 1931Review of 1930.
Reviewing 1930, and surveying the outlook for 1931, J.
Barstow Smull, President of the Chamber of Commerce of
the State of New York, says:
The real story of 1930 probably will not be written until some years
hence when the background of events which influenced its course and
helped to shape its sequel can be weighed impartially. Those who view it
to-day through dark glasses may refer to 1980 as the year when the world
stood still, with the wheels of ind•Istry and progress barely turning and
fear and uncertainty triumphant over hope and courage; but the optimist
sees it merely resting from its age-old labors, preparatory to achieving
hitherto unknown heights in science, industry, and humanitarism.
JAN. 3 1931.]
FINANCIAL CHRONICLE
No one will deny that the tribulations of 1930 have been many and
will carry over and exert an influence upon the new year. No nation
has escaped them, but because of the greater prosperity the United States
had enjoyed and its customary higher scale of living, the current depression
has perhaps been felt more keenly and has offered a greater contrast here
than in many other countries.
So far, we have managed to live through the depression without any
great tragedies, and with more than a year of it behind us there is
cause for real satisfaction in the fact that we are that much nearer to the
time when business will get back to normal.
Personally, I believe that 1931 will develop into a year of great constructive effort leading to worth-while accomplishment with the world
profiting by the mistakes of the recent past and forging ahead on a firmer,
surer foundation which eventually will bring a safer, happier, and more
lasting prosperity than we have enjoyed before.
Mr. Smull urges, as follows, that the State Legislature
appropriate sufficient moneys to properly advertise the advantages of the State:
Of interest to the entire State has been the movement sponsored by the
Chamber to have the New York State Legislature appropriate sufficient
moneys to properly advertise the industrial, agricultural, educational, and
recreational advantages of the Empire State. While other States are
spending a total of several millions of dollars annually to acquaint the
nation with their attractions, New York has done nothing except to create
a Bureau of State Publicity in the Conservation Department, for which
the
paltry sum of $11,000 was appropriated this year.
This movement has the hearty support of other civic and industrial
organizations in the State which appreciate that the expenditure of money
for this purpose will be a profitable investment for the State and its
people. It is hoped that the 1931 Legislature will see the wisdom of
enabling the State to effectively publicize its many advantages.
'The Chamber has taken a leading part in the movement to establish a
municipal airport in New York that will be worthy of the size and
importance of the city and place it at least abreast of other large cities
in this respect. The great increase in air passenger travel during the past
year, which was emphasized by Assistant Secretary of War F. R•rubee Davison
at the December meeting of the Chamber, makes it important that the
nation's largest city should provide the most modern accommodations
for expediting the arrival and departure of travelers on the aerial highways.
Loading of Railroad Revenue Continues Small.
Loading of revenue freight for the week ended on Dec. 20
totaled 713,810 cars, the Car Service Division of the American Railway Association announced on Dec. 30. This
was a reduction of 30,633 cars under the preceding week this
year and a decrease of 128,965 cars below the same week
last year. It also was a reduction of 186,810 cars below
the corresponding week in 1928. Further particulars
follow:
Miscellaneous freight loading for the week of Dec. 20 totaled 237,780
cars. 47,249 cars under the same week in 1929 and 78,815 cars under the
corresponding week in 1928.
Loading of merchandise less than carload lot freight amounted to 210,264
cars, a decrease of 18,272 cars below the corresponding week last year
and 32,314 cars below the same week two years ago.
Coal loading amounted to 161,522 cars, a decrease of 38,147 cars below
the same week in 1929 and 30.496 cars under the same week two years ago.
Forest products loading amounted to 31.218 cars, 17,553 cars under the
orresponding week in 1929 and 27,111 cars under the same week two years
ago.
Ore loading amounted to 5,743 cars, a reduction of 3,051 cars below
e same week in 1929 and 5,202 cars below the same week in 1928.
Coke loading amounted to 8,492 cars, a decrease of 2,873 cars below the
rresponding week last year and 2,170 cars under the same week in 1928.
Grain'and grain products loading for the week totaled 36.049 cars,
46 cars below the corresponding week In 1929 and 7,126 cars below the
ame week in 1928. In the Western districts alone, grain and grain prodcts loading amounted to 25,140 cars, a decrease of 906 cars below the
ame week in 1929.
Live stock loading totaled 22,742 cars, 1,674 cars under the same week
1929 and 3,576 cars under the corresponding week in 1928. In the
astern districts alone, live stock loading amounted to 17.517 cars, a
ecrease of 1,633 cars compared with the same week last year.
All districts reported reductions in the total loading of all commodities
mpared not only with the same week in 1929 but also with the same week
1928.
Loading of revenue freight in 1930 compared with the two previous
ears follows:
1930.
1929.
1928.
our weeks in January
3,349.424
3,571,455
3,448,895
our weeks in February
3,505,962
3,766.136
3,590,742
ive weeks in March
4,414,625
4.815,937
4,752,559
our weeks in April
3,619,293
3,989,142
3,740.307
ive weeks in May
4,598.555
5,182,402
4,939,828
our weeks in June
3,719,447
4,291,881
3,989,442
ur weeks in July
3,555,731
4,160,078
3,944.041
ve weeks in August
4,670,368
5,600,706
5,348,407
ur weeks in September
3,725,243
4.542.289
4.470.541
our weeks in October
3,817,786
4,679,411
' 4,703,882
ve weeks in November
4.127,134
4.890,154
5,144.208
eek ended Dec 6
787,173
933,309
984.773
eek ended Dec. 13
744.443
922,861
963,668
eek ended Dec. 20
713,810
842,775
900,620
Total _
45,348,994
52,188.536
50,921,913
nquiry Into Retail Price Reductions by Merchants'
Association of New York-$10 To-day Equivalent
to $11 a Year Ago.
With a view to determining to what extent business contions have brought about retail price reductions, which
w offer special inducements to buyers, the Merchants'
ssociation recently completed an extensive inquiry into
35
retail prices as compared with those charged a year ago for
similar-articles. The results of the survey are set forth in
the following statement (made available Nov. 11) by Willis
H. Booth, William C. Breed, Louis K. Comstock, Lincoln
Cromwell, Arthur Lehman, A. C. Pearson and Thomas J.
Watson, constituting the Executive Committee of the
Merchants' Association:
Periods of depression are not without their compensation. The New
York consumer is to-day reaping an enormous benefit from the slashing
decreases in commodity prices which have taken place within the last year.
Business indices show a general drop in wholesale prices of from 12 to
16%. These indices mean little unless expressed in terms of reduced costs
of living to the average individual. That they are being so expressed in
New York City is shown by an inquiry which the Merchants' Association
of New York has recently completed among many retail merchandising
establishments. The inquiry was made with the specific purpose of determining to what extent the decreases in wholesale prices are being passed
along to the retailer.
The results have demonstrated clearly that the decrease in commodity
prices has largely been passed on to the consumer, thus bringing a notable
decrease in the cost of living, and that dollars to-day will buy much more
than a year ago. In many lines of goods a 10-dollar bill is equivalent to 11.
to $12 and even more in retail purchasing value as compared with a year ago.
Articles of identical or improved quality may be purchased to-day at
prices a good deal lower than were in effect a year ago. This means that
families whose budgets are the same as they were in October 1929,
may
enjoy a great many comforts and luxuries that were unobtainable then:
that even families whose budgets have been moderately reduced may still
live on the same level that they did a year ago.
The inquiry ofthe Merchants' Association indicates in general that greater
Opportunities exist to-day for wise buying than have existed for several years.
The Association's conclusions are based on prices which investigators
Obtained on comparable articles, the prices being those of late September
and October. 1929, and late September and October, 1930. Fields covered
include men's clothing, women's clothing, furniture, foodstuffs and miscellaneous articles.
Women's Clothing.
The inquiry here concerned itself particularly with the low and moderate
price field.
Prices obtained from several stores show that the woman who buys to-day
may, in the moderate-price field, obtain a ready-to-made dress
or coat at
from 10 to 33% less than a dress or coat of similar quality cost a year ago.
or she may spend the same amount that she spent in 1929 and obtain
a
much better garment than the one she purchased then. Her stocklaings,
her underwear and her furs can be had at notably lower figures than those
of 1929. The same conditions prevail with regard to large number
a
of
miscellaneous articles. Silks have not in many years been as low in price
as they are to-day.
A typical store gave current prices on 37 articles of a woman's wardrobe
and the prices that were charged for comparable articles
in 1929. They
showed a total reduction of over 25%. Similarly, it was found in this
store that 72 articles constituting a child's wardrobe could be
had for 28%
less than a year ago and that 89 articles desirable in an infant's
layette
could be had for 18% less. Prices quoted in other stores showed
a similar
trend. The woman to-day can get a lot more for her money
than she did
in 1929 and she gets it whether she elects to receive it in the form
of more
articles for the same money or by raising the quality standard
of her purchases.
Men's Clothing.
The trend here is similar to that in the women's field. The buyer to-day
of a moderate priced suit or overcoat may get a much better suit or coat
for the same money or may buy clothing similar to that purchased last
year from 6 to 15% cheaper.
On certain men's accessories such as shirts, silk socks and pajamas,
savings ranging from 10 to 25% were found. All of the moderate priced
men's stores approached reported the same trend. Those that have not
changed their prices are giving better goods and workmanship. Shoes in
some instances are 10% lower in price. In other instances they are reported
better in quality at the old price.
Furniture.
The practice in respect to furniture varies in different stores. One large
retailer reported that furniture was sold at retail in 1930 at approximately
the wholesale cost in 1929. A general reduction of about 20% was
noted
in this particular store. Other moderate price stores reported reductions
for comparable articles ranging up to 25%.
Foodstuffs.
The retail reductions in foodstuffs are notable. The Bureau of Labor
Statistics of the United States Department of Labor reports that throughout the United States retail prices in September were
approximately 9%
less than they were in 1929. Tables published by the Bureau
based on
actual reports from many stores in New York City show that local
consumers
as well as those elsewhere are participating in this particular
reduction of
the cost of living. Retail food prices obtained by the Association bear
out this conclusion. Retail quotations on various cuts of meat showed
reductions of from 7 to 16%. Other notable reductions in prices noted
were on fowls, flour, butter and eggs. Applying the retail prices obtained
to the food needed in the preparation of actual meals, it was found that the
cost of these meals based on local September prices were in some instances
considerably more than 10% below the 1929 figure.
The above report on the survey refers to certain specific classifications,
but a similar trend was noted in many-in fact most-miscellaneous articles.
Effort to Force Reduction in Retail Prices in Germany
Obstructed.
From the New York "Times" we quote the following
from Berlin Deo, 11:
The Federal Government's attempt to enforce reduction of retail prices
has thus far met with only limited success. The Retailers' Association declares that retail prices are determined to only a small extent by wholesale
prices and that rents, wages,freight and taxes, all of them beyond the immediate influence of the wholesale market, have kept up retail prices.
The average price of bread has been reduced this year only 1;e% although
It is 11% below the highest price of 1928. Meat has fallen on the
average7%
since January. Retail prices of clothing have declined 9% since
January
and household articles about 12%•
36
[VOL. 132.
FINANCIAL CHRONICLE
Professor Cox of University of Chicago in Business
Forecast Expects 1930 to End as Actively as 1928.
The Bank's statistics follow:
WHOLESALE TRADE IN THE PHILADELPHIA FEDERAL RESERVE
DISTRICT FOR THE MONTH OF NOVEMBER, 1930.
The year 1930 should end as actively as did 1928, and
"
more hopefully in terms of fundamental economic conditions," Professor Garfield V. Cox of the School of Commerce
Nei Sales.
Index Numbers.
(Per Ct. of 1923-1925
Monthly Average).
and Administration of the University of Chicago, says in
a forecast of business conditions issued Feb. 12.Professor
Cox is author of "An Appraisal of American Business Forecasts,
" a recent study issued by the school which has attracted considerable attention. "Generally accepted composite indexes of industrial production, which had been
declining moderately since the middle of the last year, fell
more sharply in November and December than at any time
since the spring of 1924," Professor Cox points out. He
Oct.
Nov.
1930.
1930.
81.2
109.3
79.1
125.7
108.5
93.0
136.9
90.3
Boots and shoes
Drugs
Dry goods
•
Electrical supplies
Groceries
Hardware
Jewelry
Paper
Stocks at End
of Month.
adds:
Jan. 1 to
Nov. 30
Compared
with Same
Previous Same Mo. Period
Month. Last Year. Last Year,
Daily Average
During Month
Compared With
-16.7%
60.1
+1.5
98.6
62.70 -10.8
97.5p -12.7
-6.2
90.4
-9.4
74.9
-23.3
93.4
-7.3
74.5
Accounts Outstanding
End of Month.
-21.8%
--5.9
--11.2
--31.1
--13.0
--17.8
--28.8
--22.4
-13.8%
-1.8
-12.4
-43.5
-5.2
-10.9
-22.9
-14.2
Colledions
During Month.
1111111111111
January figures for these indexes are not yet available. Such data 811
Compared Compared Compared Compared Compared Compared
have come to hand indicates, however, that the average of business activity
with
with Same
with
with Same
with Same
with
In January was no lower than the average for December, and the fact that
Previous
Month
Month
Previous
Month
Previous
Month. Last Year. Month. Last Year. Month. Last Years
the number of blast furnaces in operation Increased from 157 on Jan. 1 to
February
the
suggests
that
factors,
other
together
with
173 on Feb. 1,
Boots and shoes_
-0.0% -0.0% -1.9% -11.8% -4.3% -18.9%
figures may register a rebound from the December low.
-10.3
-3.3
-0.1
+2.7
-18.9
+1.4
Drugs
-17.7
-0.8
-11.4
+1.1
-12.1
--5.8
Strong basis for this expectation is found in the steel industry, where Dry goods
--29.4
+52.0
-37.5
-3.3
-44.7
operations have been stepped up from 40% of capacity to more than 75%. Electrical suPPIles- --3.8
--19.1
-15.3
-11.7
-11.2
Groceries
Expanding activity has also been registered in other manufacturing lines, Hardware
--22.2
-4.0
-14.0
-1.6
-10.0
--1.4
--27.9
+12.1
-13.3
+8.7
-2.5
--1.0
Including automobiles, tires, accessories and farm implements. Contracts Jewelry
--13.5
-7.4
-19.6
-8.3
-6.3
--3.0
let far building construction also compare more favorably with those for Paper
January 1929 than did contracts for December with those for the conep Preliminary.
'pending month in 1925.
•Index numbers are computed from total monthly sales, while percentage changes
It is quite improbable, however, that the recent rate of improvement from average daily sales.
will continue much further at this time. Indeed, if It should do so, it
would be likely to result in further reaction later, as was the case after the RETAIL TRADE IN THE PHILADELPHIA FEDERAL RESERVE DISTRICT
FOR THE MONTH OF NOVEMBER, 1930.
sharp rebound of production at the beginning of 1924. At that time the
rates of production of iron and steel, automobile and textile manufacturers,
Net Sales
Index Numbers
were stepped up prematurely to a level which subsequent rates of consumpof Sales
tion did not justify, and a further marked decline running through July
November Jan.lto
(Per Cent of
ensued.
No. 30
1930
1923-1925
I do not mean to imply that the present situation is identical with that
Monthly Average). Compared Compared
with Same
with
of February 1924. Among the significant differences is the fact that the
October November November Period a
decline of 1929 has been greater than was that of 1923. The rebound of
1929. Year Ago.
1930.
1930.
January 1924 set in before the declining indexes had yet fallen to corn-7.3
104.1p
115.9
puted normals, whereas the current rise began from a level 10% below All reporting stores
-7.4
102.7p
114.6
computed normals. Production of automobiles was curtailed so severely Department
-7.1
101.4
117.9
In Philadelphia
in November and December of 1929 that, even with the low rate of user
-8.2
Outside Philadelphia
-9.4
90.0
95.6
Men's apparel
buying, dealers made some headway in reducing stocks.
-12.0
In Philadelphia
Even more striking is the low rate of residential building construction
-7.4
Outside Philadelphia
which prevailed last year, and which has already gone far to correct the Women's apparel
-2.8
145.2
128.5
-2.2
condition of over-supply that had developed. It seems improbable, thereIn Philadelphia
-6.8
Outside Philadelphia
fore, that if a decline from present levels should ensue, it would prove as
-9.9
104.3
100.3
Shoe
extensive as did that of the spring and summer of 1924.
-14.4
97.8
Credit
108.6
On the other hand, a very moderate recovery of business during the next Stores in:
-6.8
119.4
103.5
Philadelphia
few months appears the beat for which we can reasonably hope. Automo-10.7
98.4
97.2
Allentown, Bethlehem and Easton....
bile manufacturers can hardly be expected to increase Production to a high
-6.2
95.7
87.7
Altoona
-6.6
103.5
100.9
Harrisburg
level until spring sales have tested the strength of user demand. In luxury
-4.6
95.1
80.1
Johnstown
lines, such as radios, there are still heavy Inventories to be worked off.
-6.0
102.5
111.8
Lancaster
In the construction field there is a considerable surplus of commercial and
-10.3
100.3
Reading
105.2
104.9
-10.2
91.0
Industrial buildings. The improving bond and mortgage markets will
Scranton
-6.9
102.3p
101.6
Trenton
encourage the construction of residences and of public works, but it will
-6.2
108.1
110.8
Wilkes-Barre
take time to get these projects under way.
-6.9
128.4
117.5
Wilmington
Easier money may bring a renewal of lending abroad which will stimulate
-11.4
____
-_ __
All other cities
American exports, but this influence, too, is not likely to be much of a
Accounts Collecrns
Stocks Turnover
Stocks at End
factor before midyear. Meantime, consumer buying power is undoubtedly
Receivable During
Jan. 1 to
of Month
suffering moderate curtailment. Stock market losses, some curtailment
End of
Month
Nov. 30.
Compared With
of farm income, declines in employment not only in industries already
Mo. Corn- Compared
pared with
with
mentioned but in textiles and shoes, in lumber plants, railroad shops and
Year
Month
1929. Year Ago. Year Ago.
1930,
Ago.
Ago.
copper mines, and prospective declines of activity in coal and oil fields,
conspire to suggest that retail buying will for some months run perhaps All reporting stores_
3.41
3.40
-11.5
5% below that of the same period last year.
3.41
3.37
-11.7
Department
3.75
3.72
-10.6
Whatever the uncertainties as to the extent of near-term business diffiIn Philadelphia
-1.5
-6.4
2.73
2.69
-14.1
Outside
Phila..
culties, there are strong reasons for believing that the second half of the
____
_____
____
____
M en's apparel
Yegr will be one of sustained recovery which will carry composite indexes
In Philadelphia
:Fiii
-Ili
of industrial activity well above computed normals. With few exceptions
-2-.i5
-1127.1)
-1-.9Ei
Outside Phila.__ _
5.28
5.20
-11.1
manufacturer and eaeler inventories are moderate. Although consumers Women's apparel
5.68
In Philadelphia,..
-10.3
5.59
may have overbought, their stocks in most lines must, under modern con-I-YE
3.53
3.67
-P-7-.5
Outside Phlla_ _ -14.9
ditions of living, be so small as to prove only a temporary factor.
-17.0
-4.7
Shoe
2.41
2.50
-9.8
-13.9
-7.0
2.20
2.34
-11.3
Meantime, railroads and utilities are planning equipment, improvement Credit
and expansion programs in excess of those of 1929, and municipalities are Stores in:
--3.83
Philadelphia -10.5
3.85
expected to undertake improvements far more extensive than those of
-8.7
Allentown, Beth.
2.21
-1-175
-21.2
2.17
last year. The electrical equipment industry also has heavy orders and
and Easton-+10.0
+10.1
Altoona
-13.3
2.72
2.55
excellent prospects. The outlook for the agricultural implement industry
+4.0
-3.7
2.66
Harrisburg
-14.5
3.00
Is good and shipbuilding has good prospects of a notable revivall It ap-10.2
Johnstown
pears certain, too, that both at thome and abroad business will be favored
.......
____
-11.7
2.42
"2:45
Lancaster
-4.9
-4.9
Reading
-14.0
2.52
2.87
by a more generous supply of loanable funds than it has had available for
-7.3
-12.7
Scranton
-14.9
2.97
2.92
two years.
Trenton
-10.7
-15.6
3.20
2.98
-1.9
IP
WO
WWW.1...
0 0N
;12;...Wink4aCobb 66 4001
.1k,
00.10q ,
10
V-'"r°22
111 1 7777
Wilkes-Barre----
-10.0
2.28
2.25
-7.1
-2.3
Wilmington
-10.7
-12.1
2.48
2.71
+3.6
Slight Increase in Retail Trade in Philadelphia Federal
All other cities
-6.3
-10.1
-2.9
2.57
2.80
Reserve District During November-Decline of 8%
p Preliminary.
in Wholesale Trade.
Retail sales, on a daily basis, in November increased 1%,
Decline in Daily Production of Electric Power in
while wholesale business decreased almost 8% from October
Philadelphia Federal Reserve District in November.
to November, according to figures reported to the Philadelphia Federal Reserve Bank by 259 concerns of that District.
It is stated that the gain in retail trade was smaller than is
usual for November, while the loss in wholesale was not as
large as is customary for that month.
The Bank also says:
In comparison with November 1929, retail sales were 12% smaller, declines ranging from 11% in men's bparel stores to 19% in credit stores.
Sales at wholesale also were smaller by 16%, decreases varying from 6%
In drugs to 31% in electrical supplies. In the first 11 months, retail sales
were 7% smaller than in the same period last year. Reporting wholesale
lines also had smaller dollar volumes, owing partly to lower prices.
Inventories at retail and wholesale establishments continuedisubstantially
smaller in November this year than last. Such increase as occurred in
stocks of retail goods between October and November was of seasonal
character and was confined to department and credit stores.
The daily output of electric power in the Philadelphi
Federal Reserve District showed a decline of about 2%
between October and November, according to reports received by the Philadelphia Federal Reserve Bank from 1
central stations.
The Bank also says:
In comparison with November 1929, production decreased nearly 8%.
declines in the quantity purchased and generated by hydro-electric plan
being only partially offset by a considerable increase in the output o
steam plants.
Saks of electricity increased 10% in the month, but wero 5% less than
a year ago, owing to a large decline in the miscellaneous sales. Consum
don by industries showed a noticeable gain over October in contrast to
sharp decline in the same period in 1929. There was also a marked in
crease this month in sales for lighting purposes.
JAN. 3 1931.]
FINANCIAL CHRONICLE
(Daily Average.)
Electric Power-Philadelphia Federal
District, 12 Systems.
Rated generator capacity
Generated output
Hydro-electric
Steam
Purchased
Sales of electricity
Lighting
Municipal
Residential and commercial
Power
Municipal
Street cars and railroads
Industries
All other sales
*Working days average.
November
Change
(rota!for Month.) from
October
1930.
Change
from
November
1929.
1.833,000 kw.
-0.1% +4.8%
17,867,000 kwh
-1.6% -7.9%
613,000 kwh
+4.0% -87.2%
13,111.000 kwh
-1.0% +27.6%
4,143,000 kwh
-4.2% -4.9%
19,421,000 kwh +10.3% -5.0%
3,913,000 kwh +17.1% +5.8%
466.000 kwh +11.2% +7.7%
3,447,000 kwh +17.9% +5.5%
14,070,000 kwh +10.2% +1.0%
293,000 kwh -10.6% +8.8%
2,154,000 kwh
+6.4% +8.1%
.11,623,000 kwh •+11.5% *-0.1%
1,438,000 kwh
-3.3% -48.9%
Gain of Nearly 5% in Daily Output of Hosiery in
Philadelphia Federal Reserve District During
November.
The daily output of hosiery in the Philadelphia Federal
Reserve District showed a gain of nearly 5% between
October and November, according to reports collected by
the Bureau of the Census from 137 mills and released by the
Philadelphia Federal Reserve Bank. The Bank reports this
and adds:
37
Merchandising Conditions in Chicago Federal Reserve
District-Wholesale and Department Store Trade
Declined in November.
According to the Monthly Business Conditions Report of
the Federal Reserve Bank of Chicago dated Dee.31,"greater
than seasonal declines were recorded for November in reporting lines of wholesale trade. Grocery sales fell off 17% from
October, hardware 28%, dry goods 22%, drugs, 106% and
shoes 26%, against declines of 7, 15, 14, 9M and 19%,
respectively, in the seven-year average for the period."
Further surveying merchandising conditions in its District
the Bank says:
The recession of 12% in electrical supply sales was smaller than for the
same period of 1929, and the decline from the corresponding month a
year ago was less for this line than in the same comparison for October but
was more unfavorable in the other groups. For the year through November, grocery sales totaled 4% smaller than in the 11 months of 1929, hardware 24%, dry goods 29%, drugs 12%, shoes 34%, and electrical supplies
26% less. Ratios of accounts outstanding at the end of November to
net sales during the month averaged higher than a month previous or a
year ago,except for shoes with a slightly lower ratio than for last November.
WHOLESALE TRADE IN NOVEMBER 1930.
Per Cent Change
From Same Month Last Year,
Commodity.
Net
Sales.
Accts. OutColstanding. lections.
Ratio of
Accts. Outtending to
Ns Sales.
Increases In all of the other lines counteracted the decrease in women's
Stocks.
full-fashioned and seamless hosiery. Shipments during the month, howGroceries_
--13.7
--5.0
-10.6
102.9
-10.7
ever, were almost 4% smaller than in October. owing to large declines in Hardware
-30.9
--16.1
-19.9
--28.8
259.3
deliveries of both men's and women's seamless hose.
Dry goods
--28.6
--28.3
-25.9
--31.7
392.2
Unfilled orders at the end of November were nearly 10% less than a Drugs
--16.7
--12.4
--9.2
--18.5
156.2
Shoes
--17.5
--22.9
--18.3
month before, while stocks on hand were slightly larger.
--32.8
425.9
Electrical supplies
--38.3
--23.1
--29.5
--34.9
173.3
PRELIMINARY REPORT ON THE HOSIERY INDUSTRY BY 137 HOSIERY
MILLS IN THE PHILADELPHIA FEDERAL RESERVE DISTRICT,
The smaller number of trading days in November checked the upward
FROM DATA COLLECTED BY THE BUREAU OF THE CENSUS.
trend evidenced during recent months in Seventh District department
PERCENTAGE CHANGES FROM OCTOBER TO NOVMBER, 1930.
store sales, the aggregate dollar volume sold by teporting firms
declining
6% from October. Daily average sales, however, gained 4% in the comMen's
Women's
Boys
parison. Of the larger cities, Detroit alone recorded an increase in
total
Misses'
sales over the preceding month-2%;sales of Chicago stores declined
Fug- Seam- Full- Seam10%
and
I*
In the aggregate, those of Indianapolis stores 1%,Milwaukee 4% and stores
Total. fash'd. leys, pant. less. Chit's,. fonts.
in other cities showed a 7% recession. Comparisons with the corresponding
[
Hosiery knit during
month of 1929 were more unfavorable than in October partly because of the
month •
+4.7 +2.0 +24.5 -0.8 -12.5 +9.8 +18.6
one
less trading day in November this year: total sales for reporting stores
Net shipments during
month •
-3.7 +3.8 -22.6 +1.7 -54.1 +4.4 +23.6 were 21% smaller than last November, while daily average sales were 18%
Stock on hand at end of
less. A further slight increase in stocks took place between the end of
month, finished and in
October and the close of November, but inventories averaged about 15%
the gray
+1.6 +1.0 +11.8 -5.0 -4.0 +15.2 +17.5
under those of a year ago. The rate of stock turnover for 1930 through
Orders booked during
month
-27.2 -13.1 -37.1 -27.3 -39.6 -30.8 +8.7 November of 3.18 times compares with 3.49 for the 11 months of 1929.
tio of cancellations
Sales of shoes by retail dealers and department stores in the District
in September to unfilled
increased as is customary between October and November. The gain
orders on hand at end
of
of August
2.9
4.4
5.5
2.9
5.4
1.2
0.1 4%, however, was not so large as usual for the period, that of the previous
Milled orders at end of
four years averaging almost 8%. As compared with last November,
month
-9.6 -30.4 +1.6 -22.9 -17.7 +8.6 +45.1 sales totaled 12% smaller
and for the year through November were 11%
•Calculated on working day basis.
below the corresponding period of 1929. Sales of furniture and house
furnishings at retail declined less than seasonally in November,the recession
reporting dealers and department stores being only 8%.wheras the
onditions in Furniture Industry in Chicago Federal for
decline in the same comparison for 1927, 1928 and 1929 averaged 14%.
Reserve District-Midwest Distribution of Auto- Department stores were responsible for the small decrease recorded, as
sales by dealers were considerably less than in October and their installment
mobiles.
sales fell off 23%. Sales of dealers and department stores totaled 24%
The Federal Reserve Bank of Chicago states,in its Monthly below the volume of last November, while
installment sales by dealers
Business Conditions Report, issued Dec. 31, that "distribu- declined 32% in the comparison.
Declines from the preceding month and from a year ago of5 and
ion of automobiles in the Middle West declined sharply as respectively, were shown In aggregate
November sales of22 chains reporting
s usual between October and November, and comparisons to this Bank. With the number of units operated
recording little change
*th a year ago showed no betterment." Continuing the from October, average sales per store fell off in the same proportion as total
sales, but the number of stores was 6H% greater than a year ago, so that
Bank says:
average sales per store declined 16% in this comparison. Practically
all
Stocks of new cars in dealers' hands remained very light, while those of reporting groups, which include groceries,
drugs, 5-and-10-cent stores,
ised cars gained slightly for the second successive month,though continuing shoes, furniture, cigars, musical instruments,
and men's and women's
o be samller than a year ago. Deferred paymentsales of27 delaers averaged clothing, experienced declines in the monthly
and yearly comparisons.
0% of their total retail sales for the month, which compares with 48%
DEPARTMENT STORE TRADE IN NOVEMBER 1930.
October and 60% for alst November.
1034%.
MIDWEST DISTRIBUTION OF AUTOMOBILES.
Changes in October 1930 from previous months.
Per Cent Change From
Oct. 1930.
.ew ears:
WholesaleNumber sold
Value
RetailNumber sold
Value
On band Nov. 29Number
Value
sod care:
Number sold
Salable on handNumber
Value
Nos. 1929.
Companies Included
Oct. 1930. Nov.1929.
-48.7
-49.3
-45.5
-51.1
25
25
24
24
-26.6
-31.7
-53.3
-51.9
50
50
49
49
-3.8
-2.7
-47.9
-41.0
50
50
Chicago
Detroit
Indianapolis
Milwaukee
Other cities
Seventh District
49
49
-10.8
-25.5
so
49
+0.9
+0.5
-28.0
-39.2
50
50
49
49
As to conditions in the furniture trade the Bank says:
Furniture production in the Seventh [Chicago] District fell off
eight points
ring the month of November, reaching June levels of around 50%
of
pacity, according to firms reporting to this Bank. New orders declined
rther during the month, totaling 16% less than in October, which comres with a contraction of 24% in the same comparison for 1929, and
with
ight increases in 1928 and 1927. Shipments receded 34%, or somewhat
ore than seasonally following the same volume of new orders of the
eceding month, and were slightly under total orders booked
during
ovember. Accordingly, inasmuch as cancellations fell off moderely,
filled orders dropped only slightly for the low volume obtaining
Oct. 31,
•d amounted to 54% of orders booked during the month, as
compared
h 48% a month previous. Orders and shipments for the month
were
and 51%, respectively, under 1929 levels, while totals from
the first
the year through November aggregated 40% below the corresponding
29 volume.
Locality;
Per Cent Change
November 1930
from
November 1929.
P.C.Change
11 Months
1930from
Correspond.
Peed 1929.
Ratio of November
Collections
10 Accounts
Outstanding
October 31.
Net
Net
Sales.
Stocks End
of Month.
Sales.
1930.
1929.
-21.6
-24.3
-18.0
--18.8
15.9
-14.4
-22.0
-17.8
--3.6
--12.3
--12.4
--20.3
-10.8
--8.6
--9.6
33.0
35.2
41.4
34.9
40.5
41.5
35.5
88.3
-20.9
-15.0
-13.3
38.2
39.3
Industrial Conditions in Chicago Federal Reserve Die.
tricts-Continued Drop in Employment and Wages.
Indicating a decline in employment and wages in its District during November the Federal Reserve Bank of Chicago
in its "Monthly Business Conditions Report" of Dec. 31, has
the following to say regarding industrial employment conditions:
Industrial employment for reporting lines in this District declined in
the aggregate and in almost all groups during November compared with
the preceding month. Seasonal recessions in canning and most food producing lines except meat packing, in furniture and other wood products,
brick, tile and cement, boot and shoe manufacturing, and women's
clothing
contributed to the declines which in most groups were similar in
extent
to changes in the same period of 1929. The shrinkage in aggregate
payrolls
was much greater than in November 1929, and in all groups
except food
products exceeded the loss in number of employees, indicating
further reduction in working hours as an adjustment to continued poor
demand for
manufactured products. The vehicles group recorded the only
increase in
[vol.. 132.
FINANCIAL CHRONICLE
38
number of men among the 10 manufacturing groups, but their earnings were
much lower than in October. In non-manufacturing lines, some preholiday expansion took place in merchandising, and more men were employed in coal mining but with reduced payroll total; however, the four
groups combined showed a loss from last month, as the utilities reported a
slight contraction and construction employment and payrolls fell off more
ment of 35 million dollars of Treasury certificates to member banks on
Dec. 10. The volume of credit extended by the Federal Reserve Bank of
San Francisco has increased sharply during recent weeks and that Bank's
current holdings of locally purchased acceptances and of rediscounts for
member banks are higher than at any time since the spring of this year.
than seasonally.
In three of the four states reporting the data, employment offices had a
greater surplus of applicants than in October, reflecting further lay-offs
in industry and the release of men from farm work,and in addition increased
activity on the part of those unemployed to make connections before the
beginning of severe Winter weather. In Iowa the usual November demand
for corn huskers absorbed sufficient workers to reduce the ratio considerably.
REGISTRATIONS PER 100 POSITIONS AVAILABLE AT FREE
EMPLOYMENT OFFICES.
Automobile Sales in November Very Small.
November factory sales of automobiles in the United
States, as reported to the Bureau of the Census, consisted
of 129,437 vehicles, of which 97,528 were passenger cars,
31,300 trucks, and 609 taxicabs, as compared with 150,044
vehicles in October, and 217,573 vehicles in November 1929.
The table below is based on figures received from 144
manufacturers in the United States for recent months, 42
making passenger cars and 113 making trucks (11 making
both passenger cars and trucks). Figures for passenger cars
include only those designed as pleasure vehicles, while the
taxicabs reported are those built specifically for that purpose, pleasure cars later converted to commercial use not
being reported as taxicabs. Figures for trucks include ambulances, funeral cars, fire apparatus, street sweepers and
buses. Canadian figures are supplied by the Dominion
Bureau of Statistics.
Month.
1930-November
October
1929-November
October
Illinois.
Indiana.
Iowa.
Wisconsin,
280
278
181
147
251
202
141
107
281
331
207
216
210
178
160
128
EMPLOYMENT AND EARNINGS-SEVENTH FEDERAL RESERVE
DISTRICT.
Wee of Nov. 15 1930
Industrial Group.
Metals and products a
Vehicles
Tunica and products
Food and products
Stone. clay and glass
Lumber and products
Chemical products
Leather products
Rubber products b
Paper and printing
Total mfg., 10 ground
Merchandising c
Public) utilities
Coal mining
Construction
Total non-mfg.. 4 groups--
No. of Number
of
ReportWage
flu;
Firms. Earners.
Earnings.
Per Cent Changes
from oa. 15.
Wage
EarnEarners.
NUMBER OF VEHICLES.
541
68
137
329
114
237
72
70
8
254
152,195
26,955
26.492
45,602
11,653
24,327
10,521
14,880
3,113
82,808
$3,846,000
617,000
492,000
1,153,000
290,000
485,000
266,000
251,000
45,000
979,000
--2.9
+1.1
2.9
--4.7
--5.5
--2.0
--0.2
--6.5
--7.9
--0.5
1,830
348,546
8,424,000
-2.8
178
76
30
191
31,993
91.403
8,785
11,653
783,000
3,060,000
229,000
346.000
+2.6
-1.5
+1.8
-13.3
47.5
143,834
4,418,000
-1.5
-2.4
2,305 492,380 12,842,000
Total, 14 groups
a Other than vehicles. b Wisconsin only. c Illinois and Wisconsin.
-8.4
-12.2
9.2
-3.6
-12.7
8.2
-4.3
-14.6
-17.6
-1.4
Total,
TaxiTrucks. cabs.:
Togal.
PassesCars. Tracks.
1929345,545 53,428 2,064 21,501 17.164 4,337
401,037
January
404,063 60,247 2,108 31,287 25,584 5,703
466,418
February
511,577 71,799 2,079 40.621 32,833 7,788
585.455
March
535,878 84,346 1,686 41.901 34,392 7,509
621,910
April
514.863 88,510 1,318 31,559 25,129 6,430
604,691
-7.6 May
451,371 93,183 1.378 21,492 16,511 4,981
545,932
June
424,944 74,842 1,054 17,461 13,600 3,881
600.840
+0.8 July
440,780 56,808 1,040 14,214 11.037 3,177
498,628
-1.8 August
865 13,817 10,710 3,107
363.471 51,576
415,912
-0.7 September
8,975 5,548
868 14,523
318,462 60,687
380,017
-13.0 October
7,137 2,287
9,424
1,646
48,081
167,846
217,573
November
-2.3
Total(11 mos.) 5,238.413 4,478.800 743,507 16.106 257.800 203,072 54,728
4,426 1,069
5,495
91,011 27,513 1,483
120,007
-5.9 December
Continued Decline in Business Activity in San Francisco Federal Reserve District.
Isaac B. Newton, Chairman of the Board and Federal
Reserve Agent of the Federal Reserve Bank of San Francisco,
reports under date of Dec. 22 that "business activity in the
Twelfth San Francisco District continued to decline in its
most important phases during November, even after allowance for the usual slowing down at this time of year. There
was more or less slackening in nearly all instances in the selling and transporting of commodities" says Mr. Newton,
who adds that "industrial operations were further Curtailed;
and prices for many of the District's products moved to still
lower levels." Mr. Newton further says:
No significant changes took place in the agricultural situation during
November. and it is now practically certain that production of farm products has been greater, but that aggregate returns will be substantially less
has been completed
this year than in 1929. The marketing of many crops
was someand the movement of those crops which are still being distributed
barley shipments
and
Wheat
October.
what smaller in November than in
case
of wheat
the
In
October.
in
than
less
were
District
from ports of the
several cents per bushel below
this was partly because foreign prices were
to increase the
domestic quotations. The low barley prices have tended
conuse of that grain for the feeding of livestock on farms. Unfavorable
poultry products during
ditions prevailing in the marketing of dairy and
was conNovember, particularly in the case of the poultry industry, which
and early Decemfronted with sharp decline in egg prices in late November
ber.
during November.
Industrial activity declined more than seasonally
for which
Reductions in output were shown in all of the important industries
industry there were slight
data are available, except petroleum. In that
refined
of
both
Stocks
increases in output of both crude and refined oils.
during the month.
petroleum products and crude oil also increased somewhat
less copper was
Lumber production was sharply reduced and moderately
have not declined commined. Inventories of these products, however,
decline in buildusual
mensurately with output. There was a greater than
value of engineering contracts
ing and construction during November. The
was a marked falling off in the
awarded was less than in October and there
to declines in California cities. Acvalue of building permits issued, due
unemployment increased
companying the decline in industrial production,
of the number of workers emsubstantially during November. Reports
as compared with the
declines
greater
show
ployed in California and Oregon
during the seven years thatsuch data
previous year than in any other month
have been collected.
of the normal October-November
Department store sales fell 1% short
month was 22% below its value in
increase. Wholesale trade for the
wholesale for 1930 were at the
November 1929, while cumulative sales at
registrations were less than in any
lowest level since 1921. New automobile
considerably below those of October
November in the past nine years and
shipments decreased more than
1930, or November 1929. Intercoastal
usual between October and November.
commodity prices have
Excepting one week late in November, wholesale
past six weeks. Since midgenerally moved to lower levels during the
copper,silver, cotton,
of
prices
November wheat prices have advanced, but
There was a substantial
and of many other commodities have declined.
reduction in retail prices of food during the month.
little
Loans, Investments and deposits of reporting member banks varied
unchanged
during the four weeks ending Dec. 17. Interest rates remained
expanded
circulation
at the low figures of preceding weeks. Currency
allotseasonally. Additional funds for the District were provided by the
Canada.
United States.
Passenger
Cars.
Total (year).. 5,358,420 4,569,811 771,020 17,589 263,295 207,498 55,797
1930January
February
March
April
May
June
July
August
September
October
November
275,374
346,940
401,313
443,038
417,406
335,477
262,364
*223,036
0216,877
150,044
129,437
236,145 38,657
296,461 49,457
335,720 64,204
374,913 67,560
362,522 54,370
289,245 45,773
222,459 39,664
187,037 *35.748
*175,311 *41,157
112,209 37,244
97,528 31,300
572
1,022
1,389
565
514
459
241
251
409
591
609
10,388
15,548
20.730
24.257
24,672
15,090
10,188
9,792
7,957
4,541
5,407
8,856
13,021
17,165
20,872
21,251
12,194
8.556
8,946
5.623
3.206
3,527
1,532
2,527
3,565
3,385
3,421
2,896
1.632
2,846
2.334
1,335
1,880
Total(11 mos.) 3.201.306 2.889.550 505.134 6.822 148.570 121.217 27.353
•Revised. x Includes only factory-bullt taxicabs, and not private passenger cars
converted into vehicles for hire.
Production of Automotive Parts Seasonally Lower.
While activity in the automotive parts industry elowe
up in a seasonal manner in December, some reports indica
that a moderate upward trend in manufacturing operation
should be noticed in January, according to the Motor an
Equipment Association. The latter, under date of Dec. 31
continues:
Lowered schedules were also reported by manufacturers of parts an
accessories for original equipment and for the replacement trade
November. Wholesalers of automotive products reporting to the Ass
dation, who enjoyed satisfactory business in September and October ha
also indicated slower sales in the past month and a half. Throughout th
year the decline in shipments to the replacement trade has been consider
ably less than the falling-off in business of original equipment suppliers
The grand index of shipments for all groups of manufacturer membe
reporting their figures to the Association in November stood at 72% 0
the January 1925 base Index of 100 as compared with 86 in October, 8
In September and 90 in November a year ago. Reports by divisions, o
member manufacturers business in November follows: Parts-accessor
makers selling their products to the car and truck makers for origina
equipment made shipments aggregating 62% of the January 1925 bas
as compared with 75 in October, 79 in September and 78 in November 1929
Shipments to the trade by makers of service parts were 127% of th
January 1925 base as compared with 140 in October, 139 in Septem
and 139 in November 1929.
Accessory shipments to the trade in November were 63% of the 192
base as compared with 79 in October, 76 in September and 83 in Nevem
last year.
Service equipment shipments, that is, repair shop machinery and tools
in November were 80% of the 1925 base as compared with 99 in October
105 in September and 115 in November a year ago.
Mergers Among Independent Units in Automobil
Industry During 1931 Probable According to L
F. Rothschild & Co.
Several mergers among the independent units in th
automobile industry in view of the increasingly sha
competition in the medium priced field are viewed as ye
probable by L. F. Rothschild & Co., in a survey of the i
dustry. In discussing the outlook for 1931, the survey sta
that "production of passenger cars and trucks in 1931 is no
expected to exceed the 1930 total of approximately 3,500,
JAN. 3 1931.]
FINANCIAL CHRONICLE
units by a substantial margin. From a theoretical standpoint, replacement demand alone should require production
of approximately 3,700,000 cars and trucks, but, from a
practical standpoint, the size of the replacement demand
cannot at this early date be considered a fixed quantity."
This demand will depend, according to the survey, on improvement in general business conditions and on the rate of
such improvement, if any.
Two factors which will have particular bearing on the industry, it is pointed out, are the agricultural situation and
the foreign situation. Any improvement in either will find
its reflection in the industry. The survey also says:
39
were respectively 174,486,000 feet and 216,420.000; and orders received
167,991,000 feet and 234,176,000 feet. In the case of hardwoods, 189
identical mills reported production last week and a year ago 18,046.000
feet and 34,723,000; shipments 17,383,000 feet and 25,555,000; and orders
15,585,000 feet and 22,928,000.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 228 mills reporting for
the week ended Dec. 20:
UNSHIPPED ORDERS.
NEW BUSINESS.
SHIPMENTS.
Feet.
Feet.
Feet.
Coastwise and
Domestic cargo
Domestic cargo
delivery____ 48,676,000 delivery_ _ _230,296,000 intereoastal - 52,559,000
97.208,000 Export
Export
13,514,000 Foreign
21,695,000
34,007,000 Rail trade_ _101,965,000 Rail
By rail
29,829,000
Other
Local
7,979,000
7,979.000
429.489,000 Total
102,176,000 Total
112,063,000
Weekly capacity of these 228 mills is 251.587.000 feet. Their actual
production for the week was 103,486.000.
For the 5() weeks ended Dec. 13, 139 identical mills reported orders
3.5% below production, and shipments were 1.4% below production.
The same mills showed an increase in inventories of 6.8% on Dec. 13, as
compared with Jan. 1.
Southern Pine Reports.
The Southern Pine Association reported from New Orleans that for
125 mills reporting, shipments were 11% below production, and orders
10% below production and I% above shipments. New business taken
during the week amounted to 34,167,000 feet (previous week 38,031,000
at 147 mills); shipments 33,789,000 feet (prveious week 36,582,000); and
production 38.037,000 feet (Previous week 41,956.000). The three-year
average production of these 125 mills is 61,366,000 feet. Orders on hand
at the end of the week at 99 mills were 87,885,000 feet. The 104 identical
mills reported a decrease in production of 31%, and in new business a
decrease
of 25%, as compared with the same week a year ago.
Factory of Goodyear Tire & Rubber Co. at Akron, Ohio,
The Western Pine Manufacturers Association, of Portland, Ore., reto Revert to 8-Hour Day Jan. 5.
ported production from 88 mills as 17,795,000 feet, shipments 21,671.000
An Akron, Ohio, dispatch Dec. 13 is taken as follows from and new business 24,401,000. Sixty-one identical mills reported a decrease
in production of 41%, and a decrease in new business of 10%, when comthe New York "Herald Tribune":
pared with 1929.
Announcement was made to-day by P. W. Litchfield. President of the
The California White tc Sugar Pine Manufacturers Association, of San
Goodyear Tire & Rubber Co., that beginning Jan. 5 the factory would re- Francisco, reported production
from 24 mills as 7,912,000 feet, shipments
vert to an 8-hour day basis five days a week. This will permit a substantial 13.542,000 and orders 13,921,000 feet. The same number of mills reIncrease in production without hiring additional men and give practically ported a decrease in production
of 59%, and an increase in orders
4%.
full time employment to Goodyear employees.
in comparison with last year.
The plant is now working four six-hour shifts a day, and since July has
The Northern Pine Manufacturers Association, of Minneapolis. Minn.,
been rotating Jobs in order to keep as many of its experienced men on the reported production from 7 mills as 211,000 feet, shipments 1,523.000 and
pay roll as possible.
new business 1,036,000. The same number of mills reported a decrease
in production of 82%, and a decrease in new business of 52%, when comIncreased Activity at Fall River, Mass.-Eastern Fire- pared with a year ago.
The Northern Hemlock and Hardwood Manufacturers Association, of
stone Plants Add 500, Cut Working Hours-Border Oshkosh,
Wis., reported production from 19 mills as 1,612,000 feet. shipCity Manufacturing Co. Adds Looms.
ments 817,000 and orders 516,000. The same number of mills reported a
in production of 41%, and a decrease in orders 0( 45%. in comThe New York "Journal of Commerce" reports the follow- decrease
parison with last year.
ing from Fall River, Mass., Dec. 13:
The North Carolina Pine Association, of Norfolk, Va., reported producThe speeding up of production by the Firestone Tire & Rubber Co. at tion from 91 mills as 5,628.000 feet. shipments 6.038,000 and new business
Akron, Ohio, has been followed by the Firestone Cotton Mills of this city 4,392,000. Forty-six identical mills reported production 43% less, and
and New Bedford having increased operations by putting on 250 additional new business 29% less, than that reported for the corresponding week
operatives at each plant. The extra operatives, however, were put to work of 1929.
through a cut in the hours of labor, six-hour shifts now being employed
The California Redwood Association, of San Francisco, reported proinstead of the former eight-hour schedule. The mill is being run on a day duction from 11 mills as 5.164,000 feet, shipments 4,797,000 and orders
and night basis.
3,393,000. The same number of mills reported a decrease in production
The Border City Manufacturing Co. has also increased its production of 19%, and a decrease in orders of 16%, when compared with a year ago.
through putting on 300 additional looms during the past week.
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
Lumber Orders Balance Production.
production from 215 mills as 19,063,000 feet, shipments 17.475,000 and
new business 16.572,000. Reports from 170 identical mills showed a
Lumber orders balanced production during the week decrease
in production of 45%, and a decrease in new business of 27%.
ended Dec. 20, it is indicated in reports from 808 leading in comparison with last year.
The Northern Hemlock and Hardwood Manufacturers Association, of
hardwood and softwood mills to the National Lumber
Oshkosh, Wis., reported production from 19 mills as 1,895.000 feet. shipManufacturers Association. These mills reported a com- ments
1,732,000 and orders 1,204,000. The same number of mills reported
bined production of 200,803,000 feet and new business production 65% less, and orders 62% less, than that reported for the
amounting to a few hundred thousand feet more. Shipments same period of last year.
RELATIONSHIP OF SHIPMENTS AND ORDERS TO PROwere 6% above production. For the equivalent week a CURRENT
DUCTION FOR THE WEEK ENDED DEC. 20 1930, AND FOR 51
WEEKS TO DATE.
year ago, 822 mills reported production 326,281,000 feet,
"It would appear at the present time as if low priced cars will continue to
hold an advantage over other price groups in 1931, because of the tendency
for buyers to economize, added to the fact that the two principal low priced
makes are constantly strengthening their competitive positions by giving
greater values which are in turn made possible by the large volume of business being secured. The low-medium priced group has the least favorable
outlook, caught as it is between the sharp competition of both the low and
medium price groups.
"The medium price group would appear to have a somewhat more favorable outlook from a sales standpoint, if for no other reason than the very
sharp drop which has taken place in that field during 1930. Price reduction
will also help in developing a larger volume of unit sales. Both sales and
profits, however, will be very spotty.
"High priced cars as a group should show some improvement next year.
Prospect for all the stronger companies sharing in this improvement to an
equal degree would appear likely."
Total
or
shipments 268,358,000 feet and orders 291,311,000 feet.
Identical mill reports for the two years showed softwoods,
455 mills, production 38% less, shipments 19% less and
orders 28% less than for the week in 1929; for hardwoods,
189 mills, production 48% less and shipments and orders
each 32% under the volume for the week a year ago. For
the week ended Dec. 13 this year, 857 mills reported orders
12% above and shipments 5% below a total production of
227,501,000 feet.
Lumber orders reported for the week ended Dee. 20 1930,
by 593 softwood mills totaled 184,002,000 feet, or 2% above
the production of the same mills. Shipments as reported
for the same week were 194,240,000 feet, or 8% above production. Production was 179,845,000 feet.
Reports from 234 hardwood mills give new business as
17,776,000 feet, or 15% below production. Shipments as
reported for the same week were 19,207,000 feet, or 8%
below production. Production was 20,958,000 feet. The
Association's statement also shows:
Unfilled Orders.
Reports from 458 softwood mills give unfilled orders of 733.351,000
feet, on Dec. 20 1930, or the equivalent of 15 days' production. This is
based upon production of latest calendar year-300-day year-and may
be compared with unfilled orders of 510 softwood mills on Dec. 13 1930.
of 768,469.000 feet, the equivalent of 15 days' production.
The 348 identical softwood mills report unfilled orders as 691.683,000
feet, on Dec. 20 1930, as compared with 939.751,000 feet for the same
week a year ago. Last week's production of 455 identical softwood mills
was 164,281,000 feet, and a year ago it was 265,874.000 feet; shipments
Association.
ProducHon,
.11 Ft.
Shipmenu,
M Ft.
Southern Pine:
Week-125 mill reports
38,037
33,789
51 weeks-7,212 mill reports
2,692,386 2,543,226
West Coast Lumbermen's:
Week-228 mill reports
103,486
112,063
51 weeks-11,276 mill reports-- 7,084,702 6,898,686
Western Pine Manufacturers:
Week-88 mill reports
21,671
17,795
51 weeks-4,688 mill reports
1,955.177 1,826,803
Calif. White & Sugar Pine:
Week-24 mill reports
7.912
13,542
51 weeks-1,239 mill reports
971,684
913,761
Northern Pine Manufacturers:
Week-7 mill reports
211
1,523
51 weeks-382 mill reports
198,915
186.254
Northern Hemlock & Hardwood:
Week-19 mill reports
1,612
817
51 weeks-1.544 mill reports
189,874
106,256
North Carolina Pine:
Week-91 mill reports
6,038
5,628
51 weeks-5,425 m111 reports
416,445 433,238
California Redwood:
Week-11 mill reports
4.797
5,164
51 weeks-731 mill reports
303,725
334,499
Softwood total:
Week--593 mill reports
194,240
179,845
51 weeks-42,497 mill reports
13,715,559 13,269,872
Hardwood Manufacturers that.:
Week-215 mill reports
19.063
17.475
51 weeks-12,929 mill reports
1,550,945 1,436,799
Northern Hemlock & Hardwood:
1,895
Week-19 mill reports
1,732
289,099
51 weeks-I,544 mW reports
202,582
P. C.
P. C.
of
of
Orders,
Prod. M Ft. Prod.
34.187
89
94 25,502.792
90
93
108
98
102,176
6,928.674
122
93
24,401 137
1,776,935 91
171
106
13,921 176
949,750 104
722
194
1.036 491
178,704 90
99
98
51
76
516
93.831
82
67
107
104
4,392
347,330
78
83
93
91
3,393
303.672
66
91
108
184,002 102
97 13,081,688 95
92
16,572 87
93 1,381,774 89
91
70
1.204
161.131
64
56
17,776
1,548,505
Grand total:
Week-808 mill reports
200,803
213,447 108
201.77s
51 weeka-45,428 mill reports__ 15.555,603 14,909,253 96 14.625_102
85
84
Hardwood total:
Week-234 mill reports
20,958
19,207
51 weeka-14,473 min reports_-__ 1,840,044 1,689,381
92
89
ioo
ea
40
FINANCIAL CHRONICLE
West Coast Lumbermen's Association Weekly Report.
According to the West Coast Lumbermen's Association,
reports from 228 mills show that for the week ended Dec. 20
1930, there were produced 103,485,695 feet of lumber,
102,175,902 feet ordered and 112,062,807 feet shipped, as
against 115,393,197 feet produced, 138,587,355 feet ordered
and 106,481,303 feet shipped in the preceding week. The
Association's statement follows:
COMPARISON OF CURRENT AND PAST PRODUCTION AND WEEKLY
OPERATING CAPACITY (352 IDENTICAL MILLS).
(All mills reporting production for 1929 and 1930 to date.)
121,565,797 feet
Actual production week ended Dec. 20 1930
160,358,473 feet
Average weekly production Si weeks ended Dec. 20 1930
209,555,683 feet
Average weekly production during 1929
216.502,776 feet
Average weekly production last three years
304.643,119 feet
x Weekly operating capacity
Production
for the 12
average
hourly
x Weekly operating capacity Is based on
last months preceding mill check and the normal number of operating hours per week.
WEEKLY COMPARISON (IN FEET) FOR 228 IDENTICAL MILLS-1930.
(All mills whose reports of production, orders and shipments are complete
for the last four weeks.)
Nov. 29.
Dee. 20.
Dec. 13.
Dec. 8.
Week Ended—
103,485,695 115,393,197 114,442,427 102,018,087
Production
102,175,902 138,587,355 116,212,539 108,190,999
Orders (100%)
34,006,816 38,751,876 34,040,476 30,578.212
Rail (33%)
46,675,829 74,296,689 57,737.668 50,357,926
Domestic cargo(46%)
17,534,824 14,846,820 15,584,257
13,513,711
Export (13%)
9.587,575
9,670,604
7,979,546
8,003,966
Local(8%)
112,062,807 106,481,303 106,758,268 104,573,004
Shipments (100%)
29,828,949 29,390,644 29,729,427 30,779,742
Rail (27%)
52,558,880 52,605.123 47,469,245 46,980,766
Domestic cargo(47%)
21,695,432 16,481,570 19,972,021 17,141,892
Export (19%)
9,587,575
7,979,546
8,003,966
9,670,604
Local(7%)
429,469,225 440,810,378 410,770,795 404,275,698
Unfilled orders (100%)
101,965,158 100,097,164 89,289.329 86,679,645
Rail (24%)
230,295,617 234,245,263 215,806,769 206,282,617
Domestic cargo(54%)
97,208,450 106,467,951 105,674,697 111,313,436
Export (22%)
183 IDENTICAL MILLS.
(Al milli whose reports of production, orders and shipments are compiete tor 1929
and 1930 to date).
Average 51
Average 51
Week Ended. Weeks Ended
Weeks Ended
Dec.20 1930. Dee.20 1930. Dec.21 1929.
Production (feet)
94,854,995
127,704,695
167,337,785
Orders (feet)
93,010,450
122,905,943
162,584,019
shipments (feet)
101,003,877
126,780,411
163,832,888
DOMESTIC CARGO DISTRIBUTION WEEK ENDED DEC.13'30 (118 mina)
Orders on
Hand BeOrders
OW° Week Received.
Dec. 13 '30.
CancelWiens.
Shipnerds.
Unfilled
Orders
Week Ended
Dec. 13 '30,
Washington & Oregon
Feel.
Feet.
(94 Mills)—
Feet.
Feet.
Feet.
California
50,373,330 18,976,125 +176,116 15,278,058 54,147,513
Atlantic Coast
135,392,939 47,398,892 1,013,371 29,291,727 152,486,733
Miscellaneous
2,889,115 1,199,855
426,340 3,541,630
121,000
Total Wash.& Oregon 188,655,384 67,574,872 1,058,255 4.4,996,125 210,175,876
Reporting dom. cargo
only (8 mills)
6,412,376 898,397
None
540,363 6,770.410
Totals
195,067,760 68,473,269 1,058,255 45,536,488 216,946,286
Brit. Col.(13 Mills)—
None
California
300,000
250,000
None
550.000
9,937,849 2,752,420
Atlantic Coast
75,000 2,178,452 10,436,817
Miscellaneous
9,165,734 2,821,000
None 4,340,000 7,646,734
Total Brit. Columbia 19,403,583 5,823,420
Reporting domes, cargo
1.335,426
None
only (3 mills)
75,000 7,068,452 18,083,551
20,739,009 5,823,420
75,000 7,068,452 19,418,977
Totals
None
None
1,335,426
Total domestic cargo_ 215.806.769 74.298.689 1.133.255 52.604,940 236,365.263
Philip B. Weld, President of New York Cotton Exchange Reviews Cotton Trade—Looks for Reduction in Present Oversupply and Recovery of
Prices.
Philip B. Weld, President of the New York Cotton Exchange, surveying the cotton trade during the past year,
and picturing the outlook, says in conclusion: "I feel that
one may anticipate, with a high degree of confidence, that
the present oversupply of cotton, which now looks so formidable, will be reduced, as excessive supplies have been
reduced in the past, through the combined operation of
smaller production and increased consumption. And with
this will come recovery of prices." We quote as follows
from Mr. Weld's review:
The world cotton trade has had practically the same experienoe as
almost all other basic lines of business during the past year. It has
gone through a year of decreasing consumption, oversupply, and drastic
declines in prices. The year is closing with the spinning mills of the
world operating far below normal, supplies of cotton far above normal, and
the price of American cotton at the lowest level since the season following
the outbreak of the World War, 15 years ago.
Final figures on world consumption of American cotton for the full
calendar year of 1930 are not yet available, but from the returns for 10
months it may be estimated that the world's spinners have used only
about 11,750,000 bales this yast year against 14,791,000 in 1929. The
decline is 20%. The world stock of American cotton at the end of the
year, including the small unpicked portion of the crop, is around 15,650,000
bales, compared with 13,217,000 a year ago, an increase of 18%. The
average price of cotton of middling grade and %-inch staple in Southern
markets is, at this writing, between 8 and Sc. a pound, compared with
about 16.75c. a year ago, or a decline of about 50%.
It is about the same story as may be told of many other commodities,
and the reasons for the unhappy experience of the cotton trade in the past
12 months are largely the same as have produced similar conditions in
other trades. The contraction of buying power throughout the world,
through the stagnation of industry, the unemployment of millions of
Industrial wage earners, and the unremunerative prices for agricultural
[VOL. 132.
products, made only an average supply of cotton too much for the world's
immediate needs. The rising volume of cotton production, particularly
abroad, which had been readily absorbed when general business was on an
even keel, suddenly became excessive. Pending the necessary restriction of
output, supplies piled up, and the price had to fall to a point where the
risk of carrying the excess into another season would be assumed.
In times like the present, some light on future possibilities may be
had by reviewing what has happened following similar situations in past
years. There have been numerous occasions in the past when cotton stocks
seemed mountain high, when production seemed to be far outrunning consumption, and when the price of cotton was at a level which would not
cover production costs on the most economical basis. Prices were well
below the usual levels, as measured by averages of previous years, in the
closing months of 1904, 1908, 1911, 1914, 1920, and 1926. What followed?
Granted that general economic conditions to-day are greatly different from
those prevailing in any of those years, it may be helpful to see if there is
evidence of general principles which applied then and which may apply
again to-day. Here are the records:
Years 1904 and 1905.—In December of 1904 the average price of
middling upland spot cotton at New York was 7.90c., compared with an
average in the previous three seasons of 10.54c. The harvested acreage
in 1905 was only 27,110,000 acres, against 31,215,000 in 1904, a decrease
of 13.2%. The yield per acre in 1905 was only 186.6 pounds, against
205.9 in 1904, a decrease of 9.4%. The crop in 1905 was only 10,575,000
bales, against 13,438,000 in 1904, a decrease of 21.3%.
Years 1908 and 1909.--In December of 1908 New York spots sold at an
average price of 9.23c., compared with an average in the previous three
seasons of 11.34c. The acreage in 1909 was only 30,938,000 against
32,444,000 in 1908, a decrease of 4.6%. The yield per acre in 1909 was
only 154.3 pounds compared with 194.9 in 1908, a decrease of 20.8%.
The crop in 1909 was only 10,005,000 bales compared with 13,242,000 in
1908, a decrease of 24.4%.
Years 1911 and 1912.—In December of 1911 New York spots sold at an
average level of 9.37c., compared with an average in the previous three
seasons of 13.32c. The acreage in 1912 was only 34,283,000 against
36,045,000 in 1911, a decrease of 4.9%. The yield per acre in 1912 was
only 190.9 pounds against 207.7 in 1911, a decrease of 8.1%. The crop
in 1912 was only 13,703,000 bales against 15,693,000 in 1911, a decrease of 12.7%.
Years 1914 and 1915.—In December of 1914 New York spots sold at an
average level of 7.53c., compared with an average in the previous three
seasons of 12.07. The acreage in 1915 was only 31,412,000, against
36,832,000 in 1914, a decrease of 14.7%. The yield per acre in 1916 was
only 170.3 pounds against 209.2 in 1914, a decrease of 18.6%. The crop
in 1915 was only 11,192,000 bales against 18,135,000 in 1914, a decrease of 30.6%.
Years 1920 and 1921.—In December of 1920 New York spots sold at an
average price of only 15.68c., compared with an average in the previous
three seasons of 32.99c. The acreage in 1921 was only 30,509,000 against
35,878,000 in 1920, a decrease of 15.0%. The yield per acre in 1921
was only 124.5 pounds against 178.4 in 1920, a decrease of 30.2%. The
crop in 1921 was a meager 7,954,000 bales against 13,440,000 in 1920, a
decrease of 40.8%.
Years 1926 and 1927.—In December of 1926 New York spots sold at an
average price of 12.68c., compared with an average in the three previous
seasons of 25.46c. The acreage in 1927 was only 40,138,000 against
47,087,000 in 1926, a decrease of 14.8%. The yield per acre in 1927 was
only 154.5 pounds against 182.6 in 1926, a decrease of 15.4%. The crop
in 1927 was only 12,955,000 bales against 17,977,000 in 1926, a de-,
crease of 27.9%.
Significant facts are disclosed by this analysis of prices and production.
In every one of those six years, spread over two and a half decades, the
abnormally low prices in the winter were followed by substantial reductions
In the acreage the next year, the acreage reductions ranging from 4.6%
to 15.0%, and averaging 11.2%. In every one of the six years, the
acreage reductions were accompanied by reductions in yield per acre,
the reductions in yield ranging from 8.1% to 80.2%, and averaging
17.1%. The reductions in acreage and in yield per acre resulted, in
every one of the six years, in heavy reductions in the crop, the reductions
in the crop ranging from 12.7% to 40.8%, and averaging 26.8%.
Admittedly, there is no assurance in advance that the yield per acre
in any given year will be large or small. Weather conditions, in their
direct effect on plant development and in their control or lack of control
of insects, constitute the greatest single factor in determining yields, and,
as yet at least, weather is unpredictable for more than very short periods.
But the reduction in yield per acre in every one of the six years when
acreage was reduced points strongly to the probability that the acreage
cuts and yield reductions were due, in part at least, to the same causes.
It is generally conceded that, in those years when acreage is sharply
reduced, because of unremunerative prices, such reduction is largely
effected by the unwillingness or Inability of banks and others who make
advances to the farmers, to loan as freely as in more profitable years,
and this contraction of credit forces the growers to reduce their expenditures for fertilizer, farm equipment, mules, and other items involved in
raising a crop. This, together with the lowest morale of the farmers,
must tend greatly to poorer cultivation, and hence to lower yield per acre.
Unremunerative prices for cotton bring acreage reductions and smaller
crops not only in the United States but also in foreign countries, but
statistics on acreage and yield per acre for foreign countries are so incomplete, and for most countries so unreliable, that it is impossible to make
as comprehensive an analysis for foreign countries as for the United States.
A further difficulty arises from the fact that Southern Hemisphere and
tropical countries plant their crops at different times in the year than
the United States, and hence low price ranges, occurring in the several
months before planting time in this country, and bringing acreage reductions here, may not have similar effect in certain foreign countries because
the crops in those countries are already in the ground when the low prices
are obtaining. But some statistics are available which show how foreign
countries react to low prices.
Take India for example: During the period of low prices accompanying and following the 1907 panic, India reduced its acreage from 22,488,000
in 1906-07 to 21,630,000 in 1907-08, and to 19,999,000 in 1908-09. Following the 1914 panic, it reduced its acreage from 24,595,000 in 1914-15
to 17,746,000 in 1915-18. During and after the 1920 panic, it reduced
its acreage from 23,353,000 in 1919-20 to 21,431,000 in 1920-21, and
to 18,451,000 in 1921-22. Following the severe price declines in 1925
and 1926, it reduced its acreage from 28,491,000 in 1925-26 to 24,882,000
in 1926-27. And Egypt tends to do likewise. In 1915 Egypt planted only
1,231,000 acres, against 1,823,000 in 1914. In 1921 it planted only
1,339,000 acres against 1,897,000 in 1920. In 1927 it planted only
1,674,000 acres against 1,853,000 in 1926. Total production of cotton in
JAN. 3 1931.]
FINANCIAL CHRONICLE
41
foreign countries in 1915-16 was only 7,411,000 equivalent 478-pound Shoe Co. in St. Louis, recently had made wage reductions of more than
bales against 8,758,000 in 1914-15 ; in 1920-21 it was only 6,514,000 10%. Also, it was argued that manufacturers in Whitman, Holbrook and
against 8,540,000 in 1919-20; and in 1926-27 it was 9,703,000 against Bridgewater, all of the Brockton district, had reduced wages with the consent of the union.
10,414,000 in 1925-26.
Those who sponsored the proposal urged early action because after
Cotton history shows that the effects of low prices are not limited to
reduction of production. Cotton prices far below those to which the world Christmas work will be begun on shoes for the spring trade and it will be
necessary
to determine production costs before then.
commodities
is accustomed, and low in relationship to prices of other
and the world's buying power, inevitably stimulate increase in consumption,
although consumption does not always respond as fully and as quickly
to price changes as does production. The increase in consumption of raw Shorter Week in Cotton Industry Urged by Treasurer
cotton after periods of low prices are doubtless due only in part to the
of Pequot Mills in Salem, Mass.
ability of the world to buy a larger volume of goods with the same expendiA shorter work week is necessary to the prosperity of the
ture of money. When the low prices of cotton occur in periods of worldwide business depression, the increases in cotton consumption which develop cotton industry in the belief of Ernest N. Hood, Treasurer
on the subsequent recovery of world business reflect the renewal of the of the Pequot Mills. Associated Press accounts from Salem,
buying power of industrial workers as industrial unemployment decreases,
and of agricultural workers as the prices of their products rise, while the Mass., Dec. 23, reported this and added:
Mr. Hood urged a universal 48-hour week.
consumption for industrial fabrics expands as industrial activity is stepped
"This is an age of merchanization." he said, "of constant improvement in
up. But another important influence is the fact that distributors and
processors of goods, all the way from the mill to the retailer, after machinery and efficiency and of great overproduction. The solution of the
having run down their stocks in times of falling prices, proceed to build problem as far as textiles are concerned is the shorter work week."
Discussing prospects for the new year, he expressed a belief that"1931 will
them up again as soon as they recover confidence.
The big crop of 1904 was followed by a world consumption of American be a much better year than 1930."
cotton in 1904-05 of approximately 11,600,000 bales against 9,850,000
in 1903-04. After the bg crop of 1908, the world used 12,952,000 bales
in 1908-09 against 12,119,000 in 1907-08. Following the heavy production Syracuse Building Trades go on Five-Day Week—
of 1911, the world spun 14,119,000 bales in 1911-12 and 14,394,000 in
Workers Accept Contract With Daily Rise.
1912-13 against 11,870,000 in 1910-11. The large crop in 1914 was not
The following Associated Press advices from Syracuse
followed by increased consumption, but this was due to the disruption of
trade by the World War. Following the large crop of 1920, the world (N. Y., Dec. 24) are from the New York "Times":
used 12,209,000 bales of American cotton in 1921-22, against 10,268,000
Three thousand men affiliated with five building trades unions here will
In 1920-21. Finally, after the huge American crop in 1926, the world go on a five-day working week schedule with a 10% increase in wages
spun the unheard-of totals of 15,748,000 bales in 1926-27, and 15,576,000 after Jan. 1, it was announced to-day after a joint meeting of officials of
in 1927-28. Since the world used only 13,021,000 bales of American cotton the unions and contractors.
In the 1929-30 season, and its consumption in the first half of the 1930-31
The five unions are the carpenters, lathers and plasterers, structuraliron
season has been on an annual basis of only 11,000,000 or 11,500,000 bales, workers, building laborers and bricklayers.
it would seem clear that the world is now in a position to increase its
The contractors two weeks ago asked the union officials to change the
consumption of American cotton greatly, as soon as the general business stipulations of the agreement, reached last February, to make it effective
depression is alleviated and confidence revives. Consumption of foreign July 1 instead of Jan. 1, but this was voted down.
cottons has increased, but not by any means enough to account for this
great decrease in the use of American cotton.
Curtailinent of production and increase in consumption always raises Raw Silk Imports in 1930 Declined About 20% as Comthe price level. In 1904-05 it brought an increase from 7.90 in December
pared with Previous Year—Deliveries to American
of 1904 to 12.60 as the high point in 1905, a rise of 59.5%. In 1908-09
Mills Estimated to Be Approximately 7% Under
basis,
was
from
advance,
computed
on
the
same
9.23c.
the
to 16.15e., a
rise of 75.0%. In 1911-12, the advance was from 9.37c. to 13.40c., or
1929.
43.0%. In 1914-15 it was from 7.53c. to 12.75c., or 69.3%. In 1920-21
Although imports of I tw silk dropped some 20% below
it was from 15.68e. to 21-55c., or 87.4%. In 1926-27 it was from 12.68c.
1929 levels, and deliveries to American mills were estimated
to 23.90c., or 88.5%.
World Consumption of American Cotton in November
942,000 Bales Compared With 1,181,000 Bales in
November Last Year.
The spinning mills of the world consumed about 942,000
bales of American cotton during November, compared with
1,181,000in November,last year,according to the New York
Cotton Exchange Service. During the four months from
Aug. 1 to Nov. 30, constituting the first third of the cotton
season, world consumption of the American staple was
approximately 3,646,000 bales this year against 4,819,000
in the same period last year. The Exchange service under
date of Dec. 30 says:
November consumption was about 20% smaller this season than last
season. Consumption In the three months ending Oct. 31 was about 26%
smaller than last season, and in the four months ending Nov.30 it was 24%
smaller than last season. Accordingly, consumption last month was not
as far below that in the corresponding month last season as had been the
case for earlier months in the season. Consumption in November,942,000
bales, was smaller than in October. 977,000 as our revised figure, but this
did not indicate a downward trend this season, since the decrease was due
to fewer working days in the later month. The actual trend last month was
slightly upward.
Consumption of American cotton is running lower than last season in all
of the principal divisions of the world spinning industry. The United
States consumed only 399,000 bales of American cotton in November this
season compared with 516.000 in the same month last season, Great Britain
88,000 against 147,000, the Continent of Europe 323,000 against 373,000.
the Orient 118,000 against 127,000, and minor countries 14,000 against
18,000. In the four months ending Nov. 30, the United States used only
1,545.000 bales this season against 2,175,000 last season, Great Britain
309,000 against 517.000, the Continent 1,303,000 against 1,576,000, the
Orient 433.000 against 479,000, the minor countries 56,000 against 72,000.
Consumption is running close to that at this time last season in France,
Czechoslovakia, Poland, and China, but in almost all other important
consuming countries it is running well below last season.
Shoe Manufacturers Association Ask Unions
to Accept Wage Cut.
According to Boston advices Dec. 19 to the New York
"Journal of Commerce" the Brockton Shoe Manufacturers'
Association has submitted a proposal to the general officers
of the Boot & Shoe Workers' Union and the agents of the
12 locals in Brockton for a reduction in wages of 10% for
all day and piece workers. It is further stated in the
dispatch:
Brockton
The manufacturers emphasized the point that they had no intention of
reducing the contents of the workers' weekly pay envelopes. Rather, they
said, they hoped to increase the total weekly wage by giving the workers
more employment. They claimed this could be done by enabling local
companies to go into the open market with lower production costs to compete will manufacturers in other shoe centers.
The local manufacturers declared that manufacturers in other cities,
notably Endicott Johnson Co., in Johnson City, N. Y., and International
to be some 7% under the previous year, the silk industry
has had a reasonably good year, as far as yardage sales of
silk fabrics are concerned, in spite of the general business
depression, Thomas B. Hill, President of the Silk Association
of America, Inc. stated on Dec. 31 1930. Mr. Hill said:
Only a slight variation in consumption of silk is noticeable as compared
with the previous year. Sales have no doubt been stimulated by the very
good values obtainable in silk materials, silk undergarments, silk hosiery
and dresses.
It is difficult to predict what the spring will bring forth, in view of the
fact that spring production and demand are not yet fully under way.
Favorable factors in the silk manufacturing industry are the excellent competitive position of silk as a result of the decline in raw silk prices, tits
unusual values offered the public, the low stocks in the hands ot dress
manufacturers and retail stores, the more careful co-ordination of demand
and supply by the silk manufacturer, and a reduction of manufacturers'
stocks as compared with 1929.
Durham Hosiery Mills Work on 24-Hour Basis.
The New York "Journal of Commerce" in advices from
Durham, N. C., Dec. 21, said:
Durham's full-fashioned silk hosiery mills have been for many weeks
now operating on a practically 24-hour schedule, and the demand continues
very good, according to mill officials.
Operation of the cotton hosiery mills, however, continues to drag. Some
of them are operating full time, but others find it difficult to get in three
and four days a week, and there is apparently little prospect of much improvement in the situation at any early time.
The large Erwin Cotton Mills here continue to operate full time. Other
local weaving mills, however, are not so fortunate and heavily curtailed
operation is the rule.
Durham conditions in the textile industry seem generally reflective of the
industry over the State.
Petroleum and Its Products—Industry Starts New Year
with Improved Prospects—Crude Oil Production
Lowest Since 1926—Minor Price Changes Posted.
With crude oil production at the lowest level since 1926,
the petroleum industry entered the first week of the new year
in an optimistic frame of mind. Proration opponents
throughout the country's producing centers have been unable
to force abandonment of conservation methods and the reflecting drop in production has been reflected in the market.
California, which has held up the curtailment program for
many months, has at last swung into line and is showing
earnest efforts to reduce its output.
Local conditions in the Pennsylvania fields resulted in a
drop of 10c. a barrel in the price of Corning crude with the
Joseph Seep Purchasing Agency posting a new price of $1.15
a barrel. Champlin Refining, a small company in the MidContinent area, posted a flat rate of 67e. a barrel for oil purchased in that field but this cut was not met by any of the
42
[VOL. 132.
FINANCIAL CHRONICLE
major factors in the territory. The general feeling is that
crude oil quotations will not show any further drops with the
possible exception of California where price adjustments may
be necessary to bring these fields into line with the rest of the
country.
In spite of keen opposition from opponents of prorationing,
the Oklahoma State Corporation Commission ordered continued proration of oil production throughout the State for
the first quarter of 1931. The new order reduces the allowable output from 535,000 barrels daily to 465,000 barrels in
January with allowance made for a possible increase to
470,000 barrels in March.
California producers closed the year with daily output of
approximately 530,000 barrels daily. The ability of operators in this area to show such a comparatively sharp drop
in output within a short period speaks well for the future of
the proration plan in this State. While operators fought the
curtailment policy as long as they could, it finally became
apparent to them that they must correct overproduction
or the prices would drop. Venice operators, who have
been consistantly exceeding their allotment, succeeded in
reducing their output and are now down to their allowed
level. Operators are co-operating in proration plans with
the exception of a few minor operators who do produce
enough oil to interfere with State curtailment results..
Temporary markets have been found for approximately
two-thirds of the oil thrown on the market by the withdrawal
of Prairie Oil & Gas with favorable prospects for finding a
permanent market for the entire total. Several of the larger
companies have agreed to aid the small operators by taking
the oil off their hands until a permanent market can be furnished. Government officials, representatives of the American Petroleum Institute and various delegates from the oil
companies have been co-operating in finding a solution for
the problem.
There were two minor price changes posted this week but
the general list was steady. Local conditions in the Pennsylvania fields resulted in a 10c. a barrel decline in Corning
crude being posted. A minor company in the Mid-Continent
fields posted a flat price for all crude purchased in that area
but the large companies maintained their previous postings.
Price changes follow:
Dec. 29-Champlin Refining Co. posted a flat price of 67c. a barrel for
Mid-Continent crude. Eason Oil met the price cut, effective Dec. 30.
Dec. 31-Joseph Seep Purchasing Agency posted a reduction of10c.a barrel in the price of Corning crude, making present quotation $1.15 a barrel.
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A.P. I. degrees are not shown.)
Bradford. Pa---------...._..._.....42.15 Spindletop, Texas, below 25
1.15 Winkler, Texas, below 25
Corning. Oblo
1.05 Smackover, Ark., 24 and over
Cabell, W.Vs
1.30 Smackover, Ark., below 2
IllinoIs
1.15 Eldorado, Ark.. 44
Western Kentucky
.67 Urania, La
Mideontinent, Okla.. 37
.75 Salt Creek, Wyo., 37
Corsicana, Texas. heavy
.70 Sunburst. Mont
Hutchinson, Texas, 34
1.65 Arteela, N. Mex
Kettleman Hills, 55
1.10 Santa Fe Springs, Calif., 33
Kettlernan Hills, 35-39.9
1.35 Midway-Sunset, Calif., 22
Kettleman Hills, 40-49.9
1.50 Huntington, Calif.. 26
Kettleman Hills, 50-54.9
.75 Ventura, Calif., 26
Luling, Texas
1.00 Petrolia. Canada
Spindietop. Texas, grade A
$.75
.50
.70
.70
1.14
.75
.98
1.55
.75
1.48
.94
1.22
1.15
1,50
REFINED PRODUCTS-BULK GASOLINE PRICE ADVANCE
FEATURES MARKET-KEROSENE EASY-MINOR PRODUCTS INACTIVE.
bringing the increase down to 941,000 barrels instead of the
previously announced 1,336,000 barrels.
Kerosene movements were moderately strong, with little
new business noted. Prices remain irregular and price
cutting is still an important factor in the market. Stocks
on the hands of refiners are inclined to be top-heavy and
this has resulted in an easy undertone featuring the market.
Domestic heating oils were easy with price shading still
featuring the market. While movements continue moderately large, the weak undertone of the market prevents any
marked improvement developing. Prices remained unchanged, although few refiners are doing business at the
posted quotations.
Slightly better inquiry for textile lubricating oils was the
only feature in this field with other grades inactive.
Price changes follow:
Dec. 30.-Tidewater Oil Co. posted an advance of Mc. a gallon in U. S.
Motor Gasoline, in tank car lots, at the refiners.
Dec. 31.-Sinclair Refining met the Mc. a gallon advance posted by
Tidewater Oil Dec. 30.
Jan. 2.-All major refining companies meet Tidewater's advance and
are now quoting bulk gasoline at 7c. a gallon or higher.
Gasoline, U. S. Motor, Tank Car Lots, F.O.B. Refinery,
N. Y.(Bayonne)
Stand. Oil. N.J..-$.07
Stand. Oil. N."L..- -Tide Water 011Co. .07
Richfield Oil Co.... .0734
Warner-QuInl'nCo .07
Pan-Am. Pet. Co. .07
Shell Eastern Pet_ .07
New York
Atlanta
Baltimore
Beaton
Buffalo
Chicago
N. Y.-Carson Pet..$.07
Colonial-Beacon.,.. 07
Sinclair Ref
07
Chicago
.0434-.04%
New Orleans__ .05-.0534
Arkansas
0434-.05%
CaRfornla____$.06%-.09
Los Angeles,ex-0434-.073i
Gulf Coast. ex_ .0534-.05%
NorthLouisiana-05-.05%
North Texas-----04-.0434
fOklahoma
.045
Pennsylvania
.06%
f Weighted price index.
Gasoline, Service Station, Tax Included.
5 17 Minneapolis
5.153 Cincinnati
.17 New Orleans
21 Cleveland
17 Philadelphia
.162 Denver
125 San Francisco
.155 Detroit
.19 Spokane
.158 Houston
19 St. Louts
.17 Jacksonville
149
Kansas City
$.17
.185 '
19
.21
.22
,-- .153
Kerosene, 41-43 Water White Tank Car Lots, F.O.B. Refinery.
N. Y.(Bayonne)$.06,06121Chicago
$.03-.03 M1New Orleans--$.03M-.04M
North Texas-----03-.0331 Los Angeles, ex.04%-.06 !Tulsa
03-.03M
Fuel Oil, F.O.B. Refinery or Terminal.
1Gulf Coast "0" 5.6734-.75
New York(Bayonne)-. the Angeles 27D plus
51,115
$.85-1.051Chicago 18-22D
Bunker "C"
1.35 New Orl'ns 18-20 D .75-.801
Diesel 28-30D
Gas Oil, F.O.B. Refinery or Terminal.
'Tulsa'ChicagoN.Y.(Bayonne)28D plus--$.04M-.05141 32-36D Lnd $.0234-.0231 32-36D Ind ....5.02-.02M
Weekly Refinery Statistics for the United States.
According to the American Petroleum Institute, companies aggregating 3,571,200 barrels, or 95.7% of the 3,730,100 barrels estimated daily potential refining capacity of
the plants operating in the United States during the week
ended Dec. 27 1930, report that the crude runs to stills for
the week show that these companies operated to 61.8%
of their total capacity. Figures published last week show
that companies aggregating 3,571,200 barrels, or 95.7%
of the 3,730,100 barrel estimated daily potential refining
capacity of all plants operating in the United States during
that week,but which operated to only 65.3% of their capacity
contributed to that report. The report for the week ended
Dec. 27 follows:
CRUDE RUNS TO STILLS GASOLINE AND GAS AND FUEL OIL STOCKS
WEEK ENDED DEC. 27 1930.
(Figures in barrels of 42 gallons.)
Per Cent
Per Cene
Although rumors concerning such a possibility have been
Gas
Oper.
Crude
Potenfia
and
prevalent, the advance in bulk gasoline in New York and
Caveat
of Total
Gasoline
Runs
Distrta.
Peel
to
Capacity
ReportStocks.
Oil
along the entire Atlantic Seaboard was unexpected. This
Stills.
inc.
Stocks.
Report.
furnished about the only cheerful note in the refined products East Coast
100.0
3,206,000
74.8
5,780,000
9,957,000
93.8
543,000
58.6
market, however, with the rest of the field remaining in Appalachian
1,005,000
1,044,000
Ind., Illinois, Kentucky 97.5
1,697,000
636
4,489,000
3,547,000
the same easy position that has characterized the market Okla., Kans., Missouri_ 89.4
1,594,000
55.2
2,808,000
4,293,000
91.9
3,393,000
Tessa
65.2
6,813,000
10,760,000
for some time. Kerosene and other fuel oils continued Louisiana-Arkansas....
98.3
1,014,000
55.3
1,514,000
2.303,000
Mountain
93.1
275,000
28.1
1,642,000
996,000
irregular with lack of any marked demand holding the Rooky
98.8
3.730,000
60.0
California
15,337,000 104,017.000
market down. Minor refined products remained dull.
95.7
15,452,000
Total week Dec. 27
61.8
39,388,000 136,917,000
Tide Water Oil Co. made the first step in the early part
Daily average
2,207,400
95.7
week Dee. 20_
16,332,000
65.3 b38,621,000 137,017,000
of the week, posting an advance of Mc. a gallon for U. S. Total
Daily average ---..!
2,333,100
d Total Dec.28 1929_
95.5
17,789,000
72.3
41 960,000 a142 871,000
Motor Gasoline in tank car lots at the refineries. Sinclair
Daily average
2,541,300
met the cut the following day and the end of the week found
Texas Gulf Coast
100.0
2,567,000
8,064,000
69.3
5,379,000
all of the major refiners quoting gasoline at 7c. a gallon cc Louisiana
Gulf Coast_ 100.0
695.000
67.3
1,253,000
1,3511.000
elimination
of
the
disor higher. This advance reflects the
a Final revised. b Gasoline stocks total revised to 38,621,000 barrels due to an
report
of
a
Ca
Horn%
error In
company. Revised total for California for week
tress offerings that have been flooding the market lately. ended
Dec. 20, is 15,320,000 barrels. c Included above in table for week ended
27 1930 of their respective districts. d The United States total figures for last
With this pressure removed, refiners are able to establish Dec.
year shown above are not comparable with this year's totals because of the differa price that will at least enable them to break even. While ence in the percentage capacity reporting.
Note.-All crude runs to stills and stocks figures follow exactly the present Bureau
different
companies,
with
varies
gasoline
the cost of refining
of Mines definitions. In California, stocks of heavy crude and all grades of fuel
the heading ''Gas and Fuel Oil Stocks." Crude oil runs to
it was impossible for any refiner to show any profit at the oil are Included under
stills.include both foreign and domestic) crude.
63'c. level.
Consumption has held up well considering the weather and
Crude Oil Output Reaches Lowest Daily Average Since
apparently refiners have confidence that proration will preWeek Ended July 31 1926.
months.
Stocks
winter
dull
the
vent stocks piling up during
American
The
Petroleum Institute estimates th:t the
the
for
week
increase
of stored gasoline showed a moderate
ended Dec. 27 with a revision of the previous week's total, daily average gross crude oil production in the United States
JAN. 3 1931.]
FINANCIAL CHRONICLE
for the week ended Dec. 27 1930 was 2,126,750 barrels, the
lowest since the week ended July 31 1926, when it was
2,115,850 barrels, and compares with 2,202,200 barrels for
the preceding week, a decrease of 75,450 barrels. Compared
with the output for the week ended Dec.28 1929 of 2,607,700
barrels per day, the current figures represent a decrease of
480,950 barrels daily. The daily average production east of
California for the week ended Dec. 27 1930 was 1,560,950
barrels as compared with 1,599,800 barrels for the preceding
week, a decrease of 38,850 barrels. The following are estimates of daily average gross production, by districts:
DAILY AVERAGE PRODUCTION (FIGURES IN BARRELS.)
Weeks EndedDec. 27 '30. Dec. 20 '30. Dec. 13 '30. Dec. 28 '29.
Oklahoma
647,550
462,350
469.650
458.100
Kansas
113,800
103,450
108.800
103,300
Panhandle Texas
102,600
57,250
72,750
76,500
North Texas
58,150
71.600
88,100
62,050
West Central Texas
54,000
28,900
29,800
28,700
West Texas
246,000
341.200
239,150
245,500
East Central Texas
23,550
40,550
41,150
39,900
Southwest Texas
74,950
82,100
84,600
84,750
North Louisiana
42,000
43,700
38,000
43,050
Arkansas
50,950
51,350
51,450
60,600
Coastal Texas
159.900
163,300
165,900
138,850
Coastal Louisiana
26,150
26,850
26,800
19,750
Eastern (not incl. Michigan)
100,000
102,500
106,550
128,200
Michigan
8,800
8,950
8,750
14,550
Wyoming
47,150
48,800
48,800
49,300
Montana
6,600
6,900
10,200
6,650
Colorado
4,300
5,400
4,100
3,950
New Mexico
41,350
7,700
42,300
39,000
California
565,800
602,400
611,700
689,400
43
The present overproduction resulting in flooded markets has unfavorably
reacted on the marine transportation of oil and its products, the tanker
rates at the end of 1930 being about one-third of those prevailing at the
beginning of the year. The rates from Venezuela to Atlantic seaboard,
which were about 41e. per barrel in February 1930, declined to 14c. in
December.
The world's production in 1931 is estimated at 1,360,000,000 barrels,
or 43,500,000 less than in 1930, the reduction being accounted largely
by the expected decline in production in the United States in line with
the conservation measures now being more firmly established. It is also
expected that the Venezuela output will likewise decline for similar reasons,
and that the expected increase in the Russian production will place this
country as second in rank ahead of Venezuela. Should regulation of
production in the United States and Venezuela fulfill present expectations,
it would not be improbable that the total of the world in 1931 would be
further reduced to figures of the order of 1,300,000,000 barrels.
United States.
Production in 1930 aggregated approximately the same as in 1928, or
close to 900,000,000 barrels, showing a decline of about 107,000,000 from
1929. The significance of this decline may be better understood if one
realizes that it is equivalent to the combined 1930 productions of Persia,
Mexico, and Colombia. This was made possible because the output of the
American fields, greatly in excess of present yield, was partially regulated
more nearly to harmonize with actual demand, an effort which is expected
will be increasingly successful in the future.
Estimates of production during 1931 are, of necessity, conjectural,
depending as they do largely on questions of legislation and the degree of
co-operation between landowners, producers, refiners and marketers towards
the stabilization of the industry. Realizing, however, that concerted action
toward rational regulation is a matter of unavoidable urgency, it is believed
rate than in
Total
x2,126,750 2,202.200 2,232,850 2,607.700 that the production in 1931 will be maintained at a lower
1930 and should, therefore, aggregate between 800,000,000 and 850,000,000
x Lowest daily average production since week ended July 31 1926, when It was barrels.
2,115,850 barrels.
Russia.
The estimated daily average gross production for the Mid-Continent
In harmony with the five-year plan of commercial and industrial expanField, including Oklahoma. Kansas, Panhandle, North, West Central,
West, East Central and Southwest Texas, North Louisiana and Arkansas, sion now being developed in Soviet Russia, the 1930 production reached
for the week ended Dec.27, was 1,165,950 barrels, as compared with 1,999,- 126,000,000 barrels, showing an increase of 26,000,000 over the previous
800 barrels for the preceding week, a decrease of 33,850 barrels. The year.
The completion during 1930 of the pipe line from the Caspian fields
Mid-Continent production, excluding Smackover (Arkansas) heavy oil,
was 1,130,850 barrels, as compared with 1.164,550 barrels, a decrease of to Batum was of decided advantage to the industry, substituting for 530
33,700 barrels.
miles of slow railroad transportation a quicker and cheaper method. The
The production figures of certain pools in the various districts for the capacity of this line is estimated at 80,000 barrels daily.
current week, compared with the previous week, in barrels of 42 gallons,
It is anticipated that the present increase in production will continue
follow:
and that during 1931 the output will aggregate between 135,000,000 and
-Week Ended-Week Ended- 140,000,000 barrels, and that as a result Russia will regain the second
OklahomaDec.27.Dec.20. Southwest TexasDec. 27, Dec. 20. position as an oil producer.
13,400 13,900 Chapmann-Abbott
Bowlegs
5,350 5,550
Bristow-Slick
10,550 10,500 Darst Creek
34,550 36,850
Venezuela.
Burbank
13,200 13,300 Luling
9,800 9,850
The output of Venezuela was close to 189,000,000 barrels, showing a
Carr City
10,700 13,250 Salt Flat
15,100 15,000
Earlsboro
18,450 18,150
nominal increase over the previous year, notwithstanding a much larger
East Earlsboro
17,250 17,400 North Louisianaaction among
South Earlsboro
7,600 9,300 Sarepta-CartervUle
1,750 1.900 potential production. This was made possible by the concerted
Konawa
14.100 14,500 Zwolle
8.800 8.950 the important producers in regulating the output. It is planned to extend
Little River
23,050 23,100
this program of conservation, and should it continue, it is estimated that
ArkansasEast Little River
10,600 10,750
125,000,000 and 136,000,000
Maud
2,850 3,550 Smackover, light
4.700 4,750 the production in 1931 will aggregate between
Mission
6,900 7,100 Smackover,heave
85,100 35.250 barrels. Venezuela's regulated production, coming when the Russian
Coastal TexasOklahoma City
87,250 80,5.50
output is being accelerated, should place Russia ahead of Venezuela in 1981
St. Louis
22,600 23,800 as the second producing country.
22,050 22,400 Barber's Hill
Searight
5,350 5,700 Raccoon Bend
8,400 9.100
Seminole
13,950 13,850 Refuglo County
29,600 29,250
Persia.
East Seminole
1,850 1,800 Sugariand
11,200 11,700
Production in Persia, carefully regulated under unit control and operaCoastal LouisianaKansasEast Ilackberry
3,000 3,100 tion, was 44,000,000 barrels in 1980, showing a moderate increase over
Sedgwick County
21,450 22,100 Old Hackberry
900
900 1929. The production in 1931 is estimated to reach a total of 46,000,000
Voshell
Wyoming12,600 12,700
Salt Creek
27,250 27,400 barrels.
Panhandle TexasMontanaRumania.
Gray County
4,050 4,050
44,850 56,700 Kevin-Sunburst
Hutchinson County_. 7,900 13,100 New MexicoThe Rumanian fields produced in 1930 close to 40,000,000 barrels, or an
Hobbs High
31,450 29,500 increase of 5,300,000 over 1929. The 1931 production is estimated close
North TexasBalance Lea County_
8,400 7,100
to 42,000,000 barrels, placing Rumania in fifth position, ahead of Mexico.
Archer County
13,000 13,000 CaliforniaWllbarger County
29,800 36,000
12,750 12,750
24,700 28,300
North Young County__ 5,500 9,500 Huntington Beach
Dutch East Indies.
Inglewood
15,000 15,000
West Central TexasKettleman Hills
22,600 22,800
It is difficult to ascertain the exact status of production in Thatch East
South Young County___ 2,550 2,700 Long Beach
97,000 99,000 Indies, but the figures so far available indicate a yield of 36,000,000 ss
Midway-Sunset
57,000 58,500
West TexasPlaya Del Ray
44,400 45,400 compared to 38,000,000 for 1929. The estimates for 1931 are tentatively
Crane & Upton Counties 31,850 33.200 Santa Fe Springs
77.800 94,000 placed likewise at 36,000,000 barrels.
Rotor County
7,250 7,000 Seal Beach
17,300 17,600
Howard County
17,750 17,800 Ventura Avenue
45,400 46,000
Mexico.
Reagan County
21,400 22,900 Pennsylvania Grade-Winkler County
54,650 56,300 Allegany
5,600 5,950
Production aggregated in 1930 40,000,000, or a decline of about 10%
Yates
92,850 Bradford
19,950 20.650 from the previous year. It is estimated that a corresponding decline in
Balance Pecos County_ 3,900 3,850 Kane to Butler
6,050 6,350
barrels.
Southeastern Ohio
6,750 6,850 1931 will bring the output for that year close to 35,000,000
East Central TexasSouthwestern Penna...._ 2,850 3,150
An important development during 1930 was the beginning of the conVan Zandt County
27,600 27.300 West Virginia
11,800 12,550 struction of a pipe line from the oil fields near Tuxpam, near sea level,
to Mexico City, at an elevation of 7,500 feet. This line and its terminal
refinery in Mexico City should be finished early in 1932 and materially
The World's Petroleum Production in 1930 and the change
the transportation and marketing picture of crude and refined
Outlook for 1931.
products in the republic.
Colombia.
In a statement issued Dec. 30, Valentin R. Garfias, manProduction continues at a uniform rate equivalent to the capacity of
ager of the Foreign Oil Department of Henry L. Doherty &
the pipe line system from the fields to tidewater or close to 20,000,000
Co., reports that the world's petroleum production during barrels
a year; this should likewise be the production for 1931.
1930 totaled close to 1,403,500,000 barrels, showing a decline
of about 81,000,000 from the previous year. "Important developments during the year," he says, "were the decline in
Peru.
Possibly due to the revolutionary disturbances, the output of the
Peruvian fitlds showed a decline from 13,000,000 in 1929 to 12,000,000 in
1930; it is expected, however, that in 1931 the production will again
aggregate close to 13,000,000 barrels.
the output of the fields in the United States in the face of
very large potential supplies, the increase of Russian proTrinidad.
ductton in line with the five-year plan of expansion and the
partial normalization of production in Venezuela through
The production of Trinidad in 1930 was close to 9,500,000 barrels,
co-operative agreements between the leading operators." showing a 10% increase over the previous year, the data now available
indicating that the output in 1931 will be about 10,500,000 barrels.
Mr. Garfais's statement continues:
The production of other countries reflected little change during the
As those vitally interested in the industry everywhere are becoming
increasingly aware of the urgent need of closer co-operation, their future
efforts towards conservation and rational legislation should become more
effective and crystalize into concerted action instead of being largely dissipated, as at present, into empirical discussions. The oil industry, in
unison with business at large, is now going through a period of forceful
readjustment which it is confidently believed will bring about stable
conditions and more profitable operations.
year; a gradual increase is noted in Argentina, Canada, Sarawak, and
Germany, and moderate declines in India, Sakhalin, Egypt, Ecuador, and
Poland. No important changes are expected in the production of these
countries in 1931.
The accompanying table shows the world's production for 1929 as given
by the United States Bureau of Mines, the 1930 figures as published by
Periodicals and secured from other sources and the author's estimates
for 1931.
44
FINANCIAL CHRONICLE
WORLD PETROLEUM PRODUCTION.
1929.
1931.
1930.
Barrels.
Barrels.
Barrels.
United States
900,000,000 1,007,323,000
850,000,000
99,507,000
Russia
126,000,000
140,000,000
137,472,000
139,000,000
Venezuela
130,000,000
42,145,000
Persia
44,000,000
46,000.000
34,689,000
Rumania
40,000,000
42,000,000
38,072,000
Dutch East Indies
36,000,000
36.000.000
44,688,000
40,000,000
Mexico
35,000,000
20,385,000
Colombia
20,000.000
.20,000,000
13,422,000
Peru
12,000,000
13,000,000
8,716,000
9,500.000
Trinidad
10,500,000
9,391,000
9,400,000
Argentina
9,600,000
8,366,000
7,500.000
India
7,500,000
5,279,000
5,000,000
Sarawak
5,000,000
4,988.000
4,800,000
Poland
4,800,000
2,010,000
2,000,000
Japan
2.000,000
1,864.000
1,800.000
Egypt
1,800,000
1,760.000
1,500,000
1,600.000
Ecuador
1,121,000
1,300,000
Canada
1,400.000
1,076.000
1,300,000
Sakhalin
1,400,000
711,000
1,100,000
Germany
1.200,000
798,000
Iraq
497,000
France
93,000
1,300,000
1,300,000
Czechoslovakia
44,000
Italy
34,000
Others
1
[
1.360,000,000 1,403,500.000 1,484,451,000
Copper Advances to 103. Cents a Pound-Export Price
Advanced.
The following is from the New York "Evening Post" of
Dec. 29:
On its second upward climb in recent weeks, the price of copper metal
for domestic delivery was advanced to 103i cents a pound to-day, up onequarter of a cent, as inquiry by both foreign and domestic users continued
good.
The export price of copper was increased on Dec. 30 a
quarter-cent a pound to 10.80 cents, c.i.f., European base
ports, Copper Exporters, Inc., announced. The "Times"
noting this, added:
Export sales on Monday were reported at 4,500,000 pounds, while yesterday morning's total was put at 3,750.000 pounds. The domestic price
remained unchanged at 10;i cents a pound.
Steel Ingot Output Estimated at 40,000,000 Tons in
1930-A Decrease of 27% as Compared with the
Previous Year-Current Rate of Production Lower
Owing to Holiday Interruptions-Prices Unchanged.
The iron and steel industry has passed through a year of
drastic readjustment, says the "Iron Age" of Jan. 1 1931.
Prices underwent an uninterrupted decline, failing to show
signs of stability until late in the fourth quarter. Production, after a post-panic recovery early in the year, resumed
the recession that had begun in 1929.
Steel ingot output in 1930, estimated at 40,000,000 tons,
was 27% lower than in the previous year. The rate of production, 63%, was the lowest since 1921, a 37% year. The
average for the last half of 1930 was barely 51%. The"Age"
further adds:
[vor.,. 132.
Steel Scrap.
Dec. 29 1930, $11.25 a Gross Ton.
Based on heavy melting steel QUO
One week ago
$11.25 tations at Pittsburgh, Philadelphia
One month ago
11.42 and Chicago.
One year ago
14.25
High.
Low.
1930
$15.00 Feb. 18
$11.42 Dee. 9
1929
17.58 Jan. 29
14.08 Dec. 3
1928
16.50 Dec. 31
13.08 July 2
1927
15.25 Jan. 11
13.08 Nov.22
1926
17.25 Jan. 5
14.00 June 1
1925
20.83 Jan. 13
15.08 May a
At the new year steel stands at a long-awaited psychological turning point, reports "Steel" of Jan. 1 1931. Holiday
apathy still obscures the outlook, and probably will for a
few days, but the industry is glad to emerge from the tortuous
lane of 1930 into the high road of 1931, which it believes will
lead to improvement-'not precipitate improvement but a
slow workingback to a more normal level of activity, adds
"Steel" which further states:
In appraising the industry in the first quarter it will be necessary more
than ever to distinguish between the seasonal upturn, of varying intensity,
which usually accompanies the early months of the year and a genuine
recovery from the extreme apathy characterizing most of 1930. By the
end of this week steel production is expected to be influenced by this seasonal trend and to begin recuperating from the extreme low level into which
it lapsed over the holidays.
An encouraging tonnage of track material is automatically released as
Jan. 1 is reached and this, plus fair releases from a few automobile manufacturers engaged on new models, is expanding operations. Most mills
opened this week at a higher rate than Christmas week, and few will be
down from New Year to Monday.
This week's operating rate probably will average 35-37%, against 33-35
last week. Chicago mills by the end of this week will be 40%, Pittsburgh
30, Cleveland 48, Birmingham 35, Buffalo 32, eastern Pennsylvania 35.
Youngstown is up from 23% to 39.
On steel bars, plates and shapes a moderate carryover of fourth quarter
contracts, usually based upon 1.60c, Pittsburgh, defers for the moment a
real test of the proposed 1.65c price. Strip, wire and sheets are quiet, save
for a slight gain in sheet contracting at Pittsburgh. Structural awards
this week, at 14,465 tons, compare with 36,021 tons last week and 7,169
tons a year ago. Definite inquiry is out for 25,000 tons for the Ogden
avenue improvement project at Chicago. Road work in North Carolina requires 5,000 tons of concrete bars.
The Pennsylvania RR. may delay action on its inquiry for 150,000 to
200,000 tons of rails pending a decision to go to a 131-pound section.
Chicago mills expect six western roads to inquire for 100,000 to 125,000
tons of rails shortly. New York Central will purchase 45,000 tons of fastenings, in addition to its recent order for 25,000 tons of angle bars. The
Pennsylvania is distributing 46,500 tons of steel and castings for its 1,500
gondolas.
In Europe the year ends depressingly. British works have prolonged the
holiday shutdown owing to a scarcity of orders. The French market continues to deteriorate. Germans have booked some export business but find
domestic trade slack. Only Belgium reports satisfactory business.
About half of expected first-quarter pig iron requirements is yet to be
placed. Scrap prices show a slight downward trend this week, but have
no effect on "Steel's" market composite, which opens the new year unchanged at $31.66. 12% below the $35.88 of a year ago.
Steel ingot production in the week ended last Monday
(Dec. 29) did not go as low as had been anticipated by some
interest in the industry, said the "Wall Street Journal" on
Dec. 30. The average is estimated at 24%, compared with
a low prediction of 20% made a week ago. In the preceding
week the rate was 34%, and two weeks ago it was 37%.
The "Journal" further stated:
Current raw steel production is highly irregular, owing to the holiday
The United States Steel Corp. was at approximately 30%, against 41%
Interruptions, but may average 30% for the week. An unlooked for postChristmas pickup in specifications will probably prevent as general a sus- the week before and 44% two weeks ago. Leading independents were
pension of mill operations this week-end as occurred between Dec. 24 and around 20%,contrasted with 30% in the previous week and 33% two weeks
Dec. 29. Tin plate output is again above 50% ot' capacity and sheet and ago.
In the Christmas holiday week last year the Steel Corp. was around 50%,
strip mill schedules average 40%. At Chicago, plate mill operations have
with independents under 30%, and the average was between 39% and 40%.
held up unusually well.
Despite pronounced conservatism in the steel trade, each week in Decem- Two years ago during the Christmas week the various companies were runber has added to its confidence. There has been a steady gain in contract- ning at between 55% and 60%.
There was a sharp come-back in operations with the beginning of the
ing for first quarter, although in the case of plates, shapes and bars it has
been mainly at pre-advance prices. December specifications, largely for current week. Some of the plants which were to be kept idle have resumed
because specifications have been better than were looked for by operating
January shipment, are well in excess of November releases.
An impressive volume of public and utility Projects is approaching the officials. There will be some shut-downs over the week's holiday, but they
Contracting stage, delayed railroad tonnage is being placed and tin plate will not be as extensive as in the previous week.
output promises to be large. Steel business now definitely in sight points
to an average ingot output of 50% before the end of January. Improvement in operations is expected to continue well into the second quarter, 5,000 Steel Men to Return to Work in Youngstown
although at this juncture few will venture a prophecy of the extent of the
District-Mills Will Start Operations in Two
gain.
Weeks.
The "Iron Age" composite prices are unchanged. Finished steel is
More than 5,000 iron and steel workers will return to
2.121c. a lb.. pig iron, $15.90 a gross ton, and heavy melting scrap, $11.25
a ton. Compared with one year ago, finished steel is down $4.82 a net ton, their jobs in the next two weeks in the Mahoning and
pig iron $2.31 a gross ton and scrap $3 a gross ton. A comparative table
Shenango Valleys according to a Youngstown (Ohio) disfollows;
Finished Steel.
Based on steel bars, beams, tank plates.
Dec. 29 1930, 2.1210. a Lb.
2.121c. wire, rails, black pipe and sheets.
One week ago
2.1360. These products make 87
/% of the
One month ago
2.362c. United States output.
One year ago
Low,
Hioh.
2.1210. Dec. 9
2.362c. Jan. 7
1930
2.362c. Oct. 29
2.412c. Apr. 2
1929
2.3140. Jan. 3
2.391e. Dec. 11
1928
2.2030. Oct. 25
1927
2.453c. Jan. 4
2.403c. May 18
1926
2.453e. Jan 5
2.3960. Aug. 18
1925
2.5600. Jan. 6
Pig Iron.
Dec. 29 1930. $15.90 a Gross Ton.
Based on average of basic Iron at Valley
One week ago
$15.90 furnace and foundry irons at Chicago.
One month ago
16.02 Philadelphia. Buffalo, Valley and BirOne year ago
mingliam.
18.21
Low.
High.
1930
$15.90 Dec. 16
$18.21 Jan. 7
1929
18.21 Dec. 17
18.71 May 14
1928
17.04 July 24
18.59 Nov.27
1927
17.54 Nov. 1
19.71 Jan. 4
1926
19.46 July 13
21.54 Jan. 5
1925
18.96 July 7
22.50 Jan. 13
patch Dec. 27 to the New York "Times," which also stated:
All lines are to benefit from the revival, Including blast furnaces, steel
plants and rolling mills.
Republic Steel will start up 24 tin mills, eight sheet mills, two strip mills
and six open-hearth furnaces at Warren and eight sheet mills at Niles.
Newton Steel and Sharon Steel Hoop will operate on a 60% basis. The
MahonIng Valley Steel Co. will resume with five active mills.
Twenty of 51 independent open-hearth furnaces in the Youngstown
district will be in operation next week.
2,000 Steel Men at Cincinnati Mills to Have Full Time.
From Cincinnati, Dec. 27 the New York "Times" reported
the following:
As a step toward relief of unemployment, officials of the Andrew Steel
Mills and the Newport Rolling Mill announced to-day that full-time operations will be resumed at the two plants starting Monday. The two mills
employ 2,000 men. During the past six months, instead of laying off many
men, the plants put them on part time and alternated the shifts so that all
employees would have an opportunity to work.
JAN. 3 1931.]
FINANCIAL CHRONICLE
Western Electric Plant at Kearny, N. J. Although
Curtailing Production, Retains Employees.
From the New York "Times" we take the following
Maplewood, N. J. dispatch June 29:
Although the production schedule of the Western Electric Co.'s plant at
Kearny has been curtailed for six months, all the employees have been kept
working, Stanley S. Holmes, General Manager, disclosed to-night. Some
employees were put on a four-day week and some on a five-day week,
spreading the work over the entire number, Mr. Holmes said.
Puddlers' Wages Down.
The following from Youngstown, Is taken from the "Wall
Street Journal" of Dec. 30:
Wages of puddlers during January and February will be based on a
1.70 cents card rate, according to an agreement reached between S.
C.
Leonard, secretary of the Western Bar Iron Association, and representatives of the Amelgamated Association of Iron, Steel
& Tin Workers.
This rate will be sharply below the 1.80 cents rate in effect during November and December, and reflects the continuing decline in the
sales
prices of bar iron during those months. For the next
two months puddlers
will receive $10.30 a ton, against $10.80 a ton in the
last four months
of 1930 and $11.80 a ton in January and February
1980.
Wages of sheet and tin mill workers will be reduced in January
and
February, according to the bimonthly examination of prices
by Elias
Jenkins, secretary of the Western Sheet Manufacturers Association
and
representatives of the Amalgamated Association of Iron, Steel & Tin
Workers.
The average price of black sheets shipped in November and December was
2.70 cents a pound compared with 2.76 cents a pound in the previous
four
months and 3.05 cents in November and December 1930. Wages
will be
16.5% above the base in January and February, against 18% above the
base in the last four months.
Building Industry Leading Consumer of Steel in 1930.
New heights attained in skyscraper construction in 1930,
especially in New York, the introduction of battledeck
steel flooring in large structures, widening use of steel for
exterior decorations and an intensive campaign to further
the use of steel in building brought the building industry
to the front as the leading consumer of steel in 1930, states
"Steel," formerly "Iron Trade Review" of Cleveland.
According to the ninth annual survey of steel consumption
by "Steel," the building industry led all classes of users by
taking 17.80% of the country's rolled steel in 1930. "Steel"
goes on to say:
The railroads were second with 16.95%, the automotive industry
third
with 14.10% the oil, water and gas industry fourth with 9.48%,
and exports
fifth with 4.34%. Miscellaneous consumers accounted for 37.33%.
It is noteworthy that the automotive industry which from 1922
to 1928
rose from fourth to first place in point of steel consumptio
n and receded
to second place in 1929. fell to third position in 1930.
It is calculated, with part of December estimated, that total production
of
steel ingots in the United States in 1930 was 40,120.000
gross tons. Through
losses in conversion, the total was reduced to 28,686,600
of finished steel
available for general consumption.
Of this, buildings consumed 5,106,215 tons, railroads 4,862,379
tons,
automobiles 4.044,811 tons, the oil, gas and water industry 2,719,489 tons,
exports 1,244,998 tons, and all other users, 10,708,708 tons.
The following table shows the percentage of consumption of the
main
groups:
1930.
1929.
1928.
1927.
1926
Building
17.80
14.70
15.22
14.89
13.10
Railroads
16.95
18.44
17.02
20.37
22.81
Automotive
14.10
17.57
17.76
13.34
15.09
Oil, water, gas
9.48
9.01
9.72
8.90
9.29
Export
4.34
4.83
5.52
5.39
5.29
All other
37.33
35.45
36.76
37.11
34.42
Over 40% of Annual Output of Iron and Steel in
United States Derived from Reclamation of Scrap
Metals.
More than two-fifths of the annual production of iron
and steel in the United States now comes from the reclamation of scrap iron and steel, according to "Steel," formerly
"Iron Trade Review," Cleveland. Less than three-fifths
of the annual output is derived from the iron in iron ore.
"Steel" further adds:
The significance of this is that scrap iron and steel,
something which a
generation ago was considered merely as so much
waste material, is conserving the nation's Iron ore reserves, adding many
years to the "life" of
the Lake Superior, Eastern and Southern deposits.
In ten years the use ofscrap in the manufacture of
iron and steel increased
61%, while the use of iron ore has gained only
about 10%. To illustrate
how scrap is conserving ore:20,700.000 tons less ore is
used in a good year's
production ofiron and steel than would have been
used for the same output
14 years ago.
45
generally estimated. Estimates of 20 to 25 years for the good
grades of
ore are believed to be misleading as they are based mainly on reserves
listed
on tax records. The two great ore-producing States. Minnesota
and
Michigan, list on their records total reserves to-day as 1,400,611.9
07 tons,
compared with 1,540.767,393 tons ten years ago.
Therefore, in each of the past ten years there has been a reduction
of
only 14,015,548 tons. Shipments from the two States in the same
period
have averaged 50,962.517 tons. In ether words, every year
36.947,069
tons of merchantable ore has been added to the public record of reserves.
The end of these additions is not yet in sight, as much of the ore is so
far
below the surface that it cannot be calculated. The States do not
tax
certain low grades of ore which are not merchantable as mined, but susceptible to beneficiation; neither do they tax vast deposits of iron-bearing
formation.
Some of the leading companies are believed to have sufficient reserves
of good grades of iron ore in the Lake Superior district to carry on mining
operations for 50 years, and for a longer time operating with low-grade ores.
Production of Bituminous Coal and Pennsylvania
Anthracite During Week Ended Dec. 20 1930
Higher than in Preceding Week, but Rate Continues Below that for the Corresponding Period
Last Year.
According to the United States Bureau of Mines, Department of Commerce, the production of bituminous coal and
Pennsylvania anthracite for the week ended Dec. 20 1930,
was below that for the same period in 19291 although higher
than in the week ended Dec. 13 1930. The output for the
period under review follows: 9,315,000 net tons of bituminous coal, 1,431,000 tons of Pennsylvania anthracite and
40,100 tons of beehive coke. This compares with 11,360,000
tons of bituminous coal, 1,795,000 tons of Pennsylvania
anthracite and 82,400 tons of beehive coke in the week
ended Dec. 21 1929, and 8,784,000 tons of bituminous coal,
1,216,000 tons of Pennsylvania anthracite and 40,300 tons
of beehive coke in the week ended Dec. 13 1930.
For the calendar year to Dec. 20 1930, there were produced
449,619,000 net tons of bituminous coal, as against 521,145,000 tons in the calendar year to Dec. 21 1929. The
Bureau's statement follows:
BITUMINOUS COAL.
The total production of soft coal during the week ended Dec.
20 1930.
Including lignite and coal coked at the mines, is estimated
at 9,315,000 net
tons. Compared with the output in the preceding week,
this shows an
increase of 531,000 tons, or 6%. Production during the
week in 1929
corresponding with that of Dec. 20 amounted to
11.360,000 tons.
Estimated United States Production of Bituminous Coal (Net
Tons),
1930
-1929
Cal. Year
Cal. Year
Week EndedWeek.
to Date.
Week.
to
Date.a
December 6
9,607.000 431,520,000 11,942,000 497,980,000
Daily average
1,601,000
1,503.000
1,990.000
1.732,000
December 13 b
8,784.000 440,304,000 11,805.000 509,785,000
Daily average
1,464,000
1,502,000
1,968,000
1,737.000
December 20c
9,315,000 449,619,000 11,360.000 521,145,000
Daily average
1,553,000
1,503,000
1,893,000
1,740.000
a Minus one day's production first week In January to equalise number
of days in
the two years. b Revised since last report. c Subject
to revision.
The total production of soft coal during the present calendar
year to
Dec. 20 (approximately 299 working days) amounted
to 449.619,000 net
tons. Figures for corresponding periods in other recent years
are given
below:
1929
521,145,000 net tonal 1927
503,082,000 net tong
1928
488,285,000 net tons 1926
558,978,000 net to ,a
As already indicated by the revised figures above, the total product.on
of soft coal for the country as a whole during the week ended
Dec. 18 111
estimated at 8,784,000 net tons. This is a decrease of 823,000 tons,
or
8.6%, from the output in the preceding week. The following table apportions the tonnage by States, and gives comparable figures for other recent
years:
Estimated Weekly Production of Coal by States (Net Tons).
Week Ended
Dec. 1923
StateDec.13'30. Dec. 6'30. Dec. 14'29. Dec. 15'28. Aserace.a
Alabama
293,000
295,000
436.000
415,000
349,000
Arkansas
39,000
45.000
48.00040,000
25.000
Colorado
187.000
213,000
249.000
253,000
278.000
Illinois
1,050,000 1,273.000 1,570,000 1,380,000 1.635.000
Indiana
342,000
393,000
468,000
417,000
514.000
Iowa
78.000
86,000
112,000
79.000
121.000
Kansas
60.000
69,000
71,000
92,000
90.000
Kentucky-Eastern
688,000
795,000
988,000
883,000
554.000
Western
204,000
200,000
342,000
368,000
204,000
Maryland
55,000
55,000
70,000
64,000
37,000
Michigan
12,000
20,000
22,000
17.000
21.000
Missouri
66,000
61,000
110.000
89.000
69,000
Montana
60.000
48,000
80,000
70,000
64.000
New Mexico
53,000
41,000
45,000
57.000
56.000
North Dakota
47,000
63,000
52,000
27,006
53.000
Ohio
472.000
480.000
570.000
543,000
599.000
Oklahoma
98.000
43,000
105.000
65.000
58.000
Pennsylvania
2,284,000 2,342,000 2,837.000 2.801.000 2,818.000
Tennessee
128,000
130,000
116,000
106,000
103.00(1
Texas
46,000
11,000
20,000
11,00)
21.000
Utah
128,000
132,000
126,000
145,000
100,000
Virginia
288,000
235.000
294,000
229,000
193.000
Washington
61,000
50,000
40,000
58,000
57,000
West VirginiaBouthern_b
1.524.000 1,676,000 2,124,000 1,928,000 1,132,000
Northern_c
708.000
624,000
609,000
788,000
692.000
Wyoming
140.000
137,000
118,000
173.000
173,000
Other States
5,000
1,000
1,000
6,000
5,000
In the year before the World War 1.53 tons ofiron ore was consumed
in
the manufacture of one ton of iron and steel in the United States.
The
ratio has been decreasing almost steadily since that time until
to-day only
1.14 tons of iron ore is used in the production of one ton of iron and
steel.
The percentage ofiron in the iron ore has shown comparatively little change;
so that as the ratio of ore has decreased the ratio of scrap has increased.
The amount of iron and steel produced is determined by adding to the
Total bituminous coal 8,784,000 9,607,000 11,805,000 11,214,000 9.900.000
tonnage of steel ingots and castings the tonnage of pig iron which Is
not Pennsylvania anthracite_ 1,216,000 1,695,000 1,920,000 1,678,000 1,806,000
used in the making of ingots and castings. In the peak year, 1929, this
10,000,000 11,302,000 13,725,000 12,892,000 11.706,000
Total all coal
country made 64,258,662 tons of iron and steel, and consumed 73,058,586
a Average weekly rate for the entire month. 13 Includes operations on the
tons of iron ore. About one ton of Lake Superior iron ore was consumed
N.
Virginian,
&
and K. dr M. c Rest of State, including Panhandle.
w.,
O.,
C.
.1,
for every ton of iron and steel manufactured, and only half of the Lake d
Figures are not strictly comparable for the several years.
ere was metallic iron.
PENNSYLVANIA ANTHRACITE.
The conservation of ore by the use of scrap is especially important to
the Lake Superior district, which supplies about 85% of the country's
The total production of anthracite in the State of Pennsylvania during
output, and indicates the reserves there will last considerably longer than the week
ended Dec. 20 is estimated at 1,431.000 net tons. Compared with
46
For,. 132.
FINANCIAL CHRONICLE
tons,
the output in the preceding week, this shows an increase of 215,000
or 17.7%.
Tons).
Estimated Production of Pennsylvania Anthracite (Net
-1929
1930-Daily
Daily
Avge.
Week.
Avge.
Week.
Week Ended—
309,000
1,852,000
282,500
1,695.000
December 6
320,000
1,920,000
202,700
1,216,000
December 13
299,000
1,795,000
238,500
1,431,000
December 20.a
a Subject to revision.
BEEHIVE COKE.
during the
The total production of beehive coke for the country as a whole
in comparison
week ended Dec. 20 is estimated at 40,100 net tons. This is
in the week in
with 40,300 tons during the preceding week and 82.400 tons
apportions
1929 corresponding with that of Dec. 20. The following table
the tonnage by regions.
Estimated Production of Beehive Coke (Net Tons).
1929
1930
Week Ended
Date.a
Dec.20.30.b Dec.13'30.c Dec.2129. to Date. to
Region—
5,284,500
2,407,200
72,100
34,000
Paul., Ohio and West Virginia 33,800
373.200
236,200
6,700
4,700
Os., Tenn., and Virginia.... 4,800
247.700
103,500
3,600
1,600
1,500
Colo., Utah and Wash
82,400 2,746,900 5,905,400
40,300
40,100
United States total
19,490
9,066
13,733
6,717
6,683
Daily average
days in
a Minus one day's production first week in January to eoualize number of
the two years. b Subject to revision. c Revised.
which
entirely aside from this factor, there are others of a permanent nature
are assuming increasing importance in their bearing on the future of the
external
coal market. These other factors may be divided into two groups,
influences and those within the industry itself.
in the
efficiency
greater
(1)
are
Among the external factors involved
and inburning of coal by the larger consumers, such as public utilities
of the
dustrial plants; (2) competition of fuel oil and natural gas;(3) efforts
a
Canadian government to substitute coke for anthracite, thus shifting
operators;
bituminous
the
to
anthracite
the
part of the coal market from
in Canada. and (5)
(4) the development of water power, particularly
increased production of coal in foreign countries.
may be
The great factor within the industry is mechanization, to which
the face of an
attributed an increased output of coal per miner per day in
the number of
apparently stationary demand, thus effecting a reduction in
introduction
employees. This result has largely been brought about by the
of mining and loading devices.
percentage
There has been in progress since 1923 a gradual increase in the
output
of output by the large mines and a reduction of both number and
the proof the smaller mines. This also has had the effect of increasing
men
fewer
for
need
ductiveness of the individual miner and a consequent
to produce the needed coal.
increase in the
Within the Appalachian coal zone there has been a marked
Virginia,
output of the southern group of mines, those in southern West
to a
attributed
be
Virginia, and eastern Kentucky. This increase may
mining.
for
conditions
easier
and
level,
favorable freight rate, a lower wage
This situation has brought about increased competition among producers,
fields
enlargement of mine capacity, and a decline of output in the older
Decrease of 64 Million Tons of Coal Consumed in First of Ohio and Pennsylvania. export trade, aside from Canadian trade, since
A decline in bunker and
of fuel
11 Months of 1930 As Compared with Same Period 1923,
has been due in the case of bunker fuel to the extensive use
in 1929 According to National Industrial Con- oil, cheaply available on the Atlantic seaboard, and, in the case of export
producing
older
the
in
business, to the recovery of European coal production
ference Board.
Germany and
countries, and to the development of new production in
There has been a decrease of 64 million tons of coal con- Poland. Thus the competition in the international trade is very keen.
important factor
The competition of fuel oil and natural gas has been an
sumed in the first 11 months of 1930 as compared with the
States, even though the net result constiUnited
the
of
market
coal
the
In
coal
the
same period in 1929. This is the outstanding fact in
during the
tutes but a small percentage of the decline of coal consumption
industry that is causing thousands of coal miners and their past year. Until 1930 the consumption of coal has remained since 1923 at
There was an increase of 20 million tons
families and thousands of stockholders in coal companies to about 500 million tons per year.
total fuel oil consumption increased by 16
1929
In
over
1928.
1929
in
wonder as to the future prospects of the industry in which million barrels over 1928. As about four barrels of oil are estimated to
the
they are vitally interested. That the situation is a highly equal one ton of coal, the increased fuel oil consumption for 1929 was
million tons of coal. Of this increase 12 million barrels
complicated one, with many economic forces at work that equivalent of fourNorth
from
supply
Atlantic region, which secures its coal
were used In the
are constantly changing the conditions, is revealed in a the
Appalachian field.
with the
National
the
of
staff
research
by
the
The increase in natural gas consumption in 1929, as compared
survey now in progress
was used for
preceding year, was 350 billion cubic feet. A large part of this
Industrial Conference Board.
black.
of
carbon
operation of the oil and gas fields and for production
A report just published by the Conference Board, on The increase for industrial and domestic uses was 133 billion cubic feet, of
Appalachian gas fields. Twenty"Oil Conservation and Fuel Oil Supply, which includes a which 23 billion cubic feet was used in the
tons
billion cubic feet of natural gas is estimated to equal one million
study of the competitive factors in power production, three
of coal.
to
the
in
from
Texas
lines
pipe
situation
gas
present
of
the
furnishes a partial explanation
The construction of long-distance natural
way, and the proposed extension of pipe
coal industry. The present study shows the forces at work Illinois and Indiana, now underVirginia
also indicate increased competition
from Kentucky and West
in the great Appalachian field, comprising the coal mines of lines
lines, which,
with coal from the Appalachian field. Other long-distance gas
just beginning
Kentucky,
and
eastern
Pennsylvania, the Virginias, Ohio,
owing to their having but recently come into operation are
Atlanta, St. Louis
which also have resulted in a development of the southern to be felt by the coal market, are those to Birmingham.
Denver.
involved,
field at the expense of the older northern fields. As the and
The inter-relations of all these power-producing elements are so
Appalachian field produces approximately two-thirds of all and the changes in the situation are so rapid that no worthwhile forecast
However, it must be kept in mind,says the Conference Board.
the coal consumed in this country, the survey of conditions Is possible.
and
that coal is still the leading fuel for the production of heat, light,
the
in
prospects
for
a
basis
estimating
furnish
there will
power, and will doubtless continue in that position, even though the rate
of
Stabilization
stationary.
of consumption should remain comparatively
entire industry. Under date of Dec. 28 the Board says:
to be the most necessary step now confronting
The greater part of the heavy decline in the consumption of coal during the production of coal seems
1930 may, of course, be attributed to the industrial depression. But, the coal industry.
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 Dec. 31, as reported
by the 12 Federal Reserve banks, was $1,399,000,000, an
increase of $61,000,000 compared with the preceding week
and a decrease of $282,000,000 compared with the corresponding week in 1929. After noting these facts, the Federal
Reserve Board proceeds as follows:
On Dec. 31 total Reserve bank credit amounted to $1,373.000,000, a
with
decrease of $52,000,000 for the week. This decrease corresponds
in unexdecreases of $125.000,000 in money in circulation and $4,000,000
Treasury curpended capital funds, &c., and increases of $23,000,000 in
by an increase
rency and $4,000,000 in monetary gold stock, offset in part
of $104,000,000 in member bank reserve balances.
during the week,
Holdings of bills discounted declined $197,000,000
the Federal
the principal changes being decreases of $180,000,000 at
Reserve Bank of New York, $39,000,000 at San Francisco, $16,000.000
holdings
System's
at Richrdond, and $15,000,000 at Philadelphia. The
S. bonds $37,Of bills bought in open market increased $104,000,000. of U.
and
000,000, of Treasury notes $33.000,000, and of Treasury certificates
bills $18,000,000.
last week by wire.
(An error occurred in transmitting the figures to us
over
Bills bought were reported as 3260,000,000, showing an increase
have been $8,should
increase
the
Dec. 17 1930 of $80,000,000. when
000,000.—Ed.1
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
in the condition statement, such as monetary gold stock and
money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition of the different items, was published in the May 31 1930 issue of the
"Chronicle" on page 3797.
The statement in full for the week ended Dec. 31, in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages—namely,
pages 86 and 87.
Changes in the amount of Reserve bank credit outstanding
and in related items during the week and the year ended
Dec. 31 1930 were as follows:
Bills discounted
Bills bought
United States securities
Other Reserve bank credit
Dec. 31 1930.
$
251,000,000
364,000,000
729,000,000
29,000,000
Increase (+) or Decrease (—)
Since
Dec. 24 1930. Dec. 31 1929.
$
$
—197,000,000 —381,000,000
—28,000,000
+104,000,000
+87,000,000 +218,000,000
--18,000,000
--46,000,000
TOTAL RES'VE BANK CREDIT 1,373,000,000 —52,000,000
,
Monetary gold stock4,593,000,000
1,798,000,000 +23,000,000
Treasury currency adjusted
—209,000,000
+310,000,000
+20,000,000
4,889,000,000 —125,000,000
Money in circulation
2,471,000,000 +104.000,000
Member bank reserve balances
Unexpended capital funds, non-mem—4,000,000
404,000,000
ber deposits, &c
+24,000,000
+116,000,000
—19,000,000
Returns of Member Banks for New York and Chicago
Federal Reserve Districts—Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of the
member banks in the New York Federal Reserve District,
as well as those in the Chicago Reserve District, on Thursdays, 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.
JAN. 3 1931.1
FINANCIAL CHRONICLE
Below is the statement for the New York member banks
and that for the Chicago member banks for the current
week as thus issued in advance of the full statement of the
member banks, which latter will not be available until the
coming Monday. The New York statement, of course, also
includes the brokers' loans of reporting member banks.
The present week's totals are exclusive of figures for the
Bank of United- States in this city, which closed its doors on
Dec. 11 1930. The last report of this bank showed loans
and investments of about $190,000,000. The grand aggregate of brokers' loans the present week records an increase
of $6,000,000, the total on Dec. 31 1930 standing at $1,926,000,000. The present week's increase is the first increase in these loans in 14 weeks, there having been a contraction in the preceding 13 weeks combined of no less
than $1,302,000,000. Loans "for own account" rose during
the week from $1,262,000,000 to $1,321,000,000 and "loans
for account of others" from $363,000,000 to $370,000,000,
while loans "for account of out-of-town banks" fell from
$294,000,000 to $235,000,000. Last week's total of $1,920,000,000 was the lowest point these figures have reached
since Dec. 24 1924, when the amount stood at $1,880,440,000.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
Dec. 31 1930. Dec. 24 1930. Dec. 31 1929.
Loans and investments—total
8,152,000,000 8,045,000,000 8,240,000,000
Loans—total
On securities
All other
5,859,000,000 5,749,000,000 6,227,000,000
3,438,000,000 3,366,000,000 3.398,000,000
_2,421,000,000 2,383,000,000 2,859,000,000
47
Borrowings of weekly reporting member banks from the Federal Reserve
banks aggregated $250,000,000 on Dec. 24, an increase of $90,000,000 for
the week,$51,000,000 of which was in the New York district and $11.000.000
in the Philadelphia district.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ending
Dec. 24 1930, follows:
Increase (-I-) or Decrease (—)
Since
Dee. 24 1930. Dec. 17 1930. Dec. 24 1929.
Loans and investments—total_ __ _22,985,000,000
Loans—total
On securities
All other
Investments—total..
16,200,000,000
7,779,000,000
8,421,000,000
6,785,000,000
—99,000,000
+95,000.000
—58,000,000 —1,105,000,000
+38,000.000
—96,000.000
—152,000.000
—953,000,000
—42,000,000 +1,200,000.000
U.S. Government securities___. 3,156,000,000
3,629,000,000
Other securities
—58,000,000
+17.000,000
+446,000,000
+753,000,000
Reserve with Federal Res've banks 1,772,000,000
318,000,000
Cash in vault
—82,000,000
+25,000,000
+69,000,000
+27,000,000
13,603,000,000
7,126,000,000
202,000,000
—168.000,000
—54,000.000
—46,000,000
+14,000,000
+403,000,000
+110,000.000
1,407,000.000
3,203,000,000
—74,000,000
—231,000,000
+285,000.000
+406,000.000
250,000,000
+90,000.000
—252,000,000
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from Fed. Res. banks
Summary of Conditions in World Markets, According
to Cablegrams and Other Reports to the Department of Commerce.
The Department of Commerce at Washington releases for
publication Jan. 2 the following summary of market conditions abroad, based on advices by cable and radio:
ARGENTINA.
Business during December continued dull, except that the holidays have
somewhat stimulated the sale of certain articles. The continued weakness
U.S. Government securities
1,182,000,000 1,234,000,000 1,073,000,000 and irregularity of the peso exchange is visibly reflected in the higher prices
Other securities
1 111,000,000 1,061,000,000 911,000,000
paid for imported goods and has resulted in the reduction of the demand
Reserve with Federal Reserve Bank__ 861,000,000 782,000,000 779,000,000 for and the sale of such goods. The unimproved credit conditions obtaining
Cash in vault
85,000,000 104,000.000
61,000,000 In Buenos Aires and in the country are beginning to affect the credit acimporters are accustomed to receive from foreign
Net demand deposits
6,070.000,000 5,832,000,000 6,028,000,000 conunodation which local
Time deposits
1,201,000,000 1,209,000,000 1.235,000,000 manufacturers and shippers. The Federal, provincial and municipal fiscal
Government deposits
35,000,000
35,000,000
17,000,000 authorities continue their efforts to reduce the administrative expenses and
simultaneously to provide funds for building public works. There is univerDue from banks
132,000,000
94,000,000
118,000,000
Due to banks
1,317,000,000 1,090,000,000 1,163,000,000 sal interest in these projects especially in highway construction, and plans
for attracting foreign capital and technical advice have been approved.
Borrowings from Federal Reserve Bank_
9,000,000
70,000,000 106,000,000 As compared with a month ago, the combined statement of the banks of
Buenos Aires for Nov. 31 shows an increase in their discounts, advances
Loans on secur. to brokers & dealers:
I
For own account
1,321,000,000 1,262,000,000 1,167,000,000 and reserve deposits, especially of gold, and a decrease in their cash. AcFor account of out-of-town banks
235,000,000 294,000,000 709,000,000 cording to the first estimate of the Rural Economy Statistical Office. ArFor account of others
370,000,000 363,000,000 1,548,000,000 gentina's 1930-31 wheat crop will amount to 7,386,000 metric tons;flaxseed.
Total
1,926,000,000 1,920,000,000 3,424,000,000 2,144,000 metric tons; oats, 1,053,000 metric tons; barley 432,000 metric
tons; rye, 169,000 metric tons; and birdseed, 30,000 metric tons. The
On demand
1,446,000,000 1,408,000,000 2,981,000,000 same office estimates that on Dec. 19 the exportable surplus of wheat
On time
480.000.000 512,000.000 443.000.000 amounted to 5,443,000 metric tons and of flaxseed to 2.128.000 metric
Chicago.
tons. The wheat harvest is progressing in the northern districts, but the
Loans and investments—total
1,978,000,000 1,999.000,000 1,896,000,000 scarcity of bills in the Buenos Aires market would seem to indicate that the
international merchants are operating on accumulated cash deposits in
Loans—total
1,414,000,000 1,438,000,000 1,533,000,000
Buenos Aires or on the basis of cable transfers for small amounts.
On securities
789,000,000 835,000,000 881,000,000
AU other
AUSTRALIA.
625.000,000 603,000,000 652,000,000
Fair holiday business and the success of the £28,000,000 conversion loan
Investments—total
564,000,000 561,000,000 363,000,000
recently offered on the local market have tended to revive optimism throughU.S. Government securities
250,000,000 258,000,000 125,000.000 out the Commonwealth. Holiday travel declined 50%, however, and DeOther securities
314,000,000 304.003, 0 238,000,000 cember mail declined 18% in volume. Trading in wheat continues at a
standstill owing to misunderstanding relative to application of the GovernReserve with Federal Reserve Bank
215,000.000 186,000,99
175,000,000 ments
Cash in vault
minimum price guarantee. Banks have issued a statement indicating
16,000.000
17,000,030
18,000,000
that advances to the Government are seriously curtailing credits to trade.
Net demand deposits
1,275,000,000
1,273,000,000
1,224,000,000
Time deposits
602,000,000 601,000,000 526,000,000
AUSTRIA.
Government deposits
25,000,000
25,000,000
8,000,000
The new Austrian cabinet was formed Dec. 4 under Doctor Ender.
Due from banks
207,000,000 150,000,000 135,000,000 former Governor of Voralberg. Parliament assembled on Dec. 2, with the
Due to banks
368,000,000 354,000.000 314,000.000 proposed tariff revision of first importance. Hearings are now being held
and it is generally expected locally that tariff rates will be increased on an
Borrowings from Federal Reserve Bank_
1,000,000
37,000,000
average of 50% and in some cases as much as 300%. Austria is among
the countries moving to a high protective tariff as a definite policy. The
Complete Returns of the Member Banks of the Federal Hungarian-Czechoslovak tariff dispute is expected to benefit Austria as
Hungary is now endeavoring to arrange an improvement of commercial
Reserve System for the Preceding Week.
relations with Austria. The commercial treaty with Germany already
As explained above, the statements for the New York and ratified by Germany has been favorably reported by the Austrian ParliaChicago member banks are now given out on Thursday, mentary Committee and early ratification with minor changes is probable.
Reports from the industries continue unfavorable. A comparison of the
simultaneously with the figures for the Reserve banks them- first
nine months of 1930 with the corresponding period in 1929 shows the
selves, and covering the same week, instead of being held following percentages of decline in exparts: Ready-made clothing 16;
until the following Monday, befor3 which time the statistics pig iron 42; cotton yarn 40 and wood 19. Imports of raw materials declined
and coal 29%. Only approximately 30% of Austria's saw mills are
covering the entire body of reporting member banks in 101 19%
now in operation and the machinery industry is working at 35% ofcapacity.
cities cannot be got ready.
Unfilled orders of the Alpine Mining Co.,at the end of November amounted
In the following will be found the comments of the Federal to 29.000 tons as compared with 35,000 tons at the end of the previous
month. The company's production of pig iron totalled 12.000 tons and of
Reserve Board respecting the returns of the entire body of steel
ingots 18,000 tons, each 1,000 tons less'than in October. Lignite
reporting member banks of the Federal Reserve System for production increased from 260,000 tons in September to 280.000 tons in
October.
Paper output amounted to 18,400 tons in October and that of
the week ended with the close of business on Dec. 24:
cellulose 18,200 tons, as compared with 16,100 tons and 17.700 tons, reThe Federal Reserve Board's condition statement of weekly reporting
spectively, in September. Unfilled orders in cotton spinning !_aills at the
member banks in leading cities on Dec. 24 shows decreases for the week
of end of October totalled 8,100,000 pounds, or 100.000 more than at the end
399.000.000 in loans and investments,$168,000,000 in net demand deposits, of the
preceding month. The official railway report for October showed a
$54,000,000 in time deposits and $46,000,000 in Government deposits and freight traffic
of 400,000,000 net freight-ton kilometers, or 27,000,000
an increase of 690,000.000 in borrowings from Federal Reserve banks.
more than in September. Unemployed on Dec. 15 numbered 263,000 dole
Loans on securities increased 6112.000,000 at reporting banks in the recipients,
40,000 without dole and 57,000 recipients of old age pensions,
New York district and $38,000,000 at all reporting banks and declined bringing the total to 300,000 or 100,000 more than a year ago. Wholesale
338,000,000 in the Chicago district. $16,000,000 in the San Francisco prices have declined on an average of 10% since January and a drop in
district and $15,000,000 in the Cleveland district. "All other" loans de- retail prices in December resulted in a fairly good Christmas trade.
The
clined $75,000,000 in the New York district, $16,000,000 in the Chicago wholesale price index now stands at 107 or at three points less than
a month
district and $96,000,000 at all reporting banks.
ago. The index of quotations on the Vienna stock exchange declined during
Holdings of U. S. securities declined $16,000,000 in the Chicago district, November from 787 to 750. Gold cover of the National Bank at
the middle
112,000.000 in the Boston district and $58.000.000 at all reporting banks. of December amounted to 35.6% of outstanding bank notes
and call liaHoldings of other securities increased $6,000,000 in the Cleveland
district. bilities, as against 39.8% a month earlier. Savings deposits in nine banks
35.000.000 in the Boston district and $17,000.000 at all reporting banks.
in Vienna and the principal cities increased during November by $600.000
Investments—total
2,293,000.000 2,295,000,000 1,983,000,000
48
FINANCIAL CHRONICLE
to $237.000.000. Imports during November were valued at $32,600,000
and exports at $21,500,000, as compared with $31,000,000 and $25,000.000,
respectively, in October. Declared exports to the United States declined
from $498.000 in September to $352,000 in October.
[vol.. 132.
CHILE.
Purchases during the holiday buying season have given some impulse to
of an increased tariff on a great
enactment
retail sales and the recent
number of articles has stimulated immediate purchases of foreign goods
by importers to escape the tariff although not to the extent which was anticipated. However, the general commercial situation shows little change.
BRAZIL.
The business outlook is generally considered unpromising, owing largely
CHINA.
to the unsatisfactory financial position of the Government, continued low
Announcement is made that the Chinese Government will levy special
coffee prices and exchange uncertainty. The credit situation is increasingly
slightly
prices
were
and cement, effective on Jan. 1.
but
matches,
yarn,
excise duties on cotton
unsatisfactory. Coffee shipments were heavier
lower. Exportsfrom Santos amounted to 901.297 bags,from Rio,to 361,669 Sixteen other commodities will be similarly taxed sometime during the cornbags,and from Victoria to 118,532 bags. Santos stocks amount to 1.148.288 ing year. All North China railways are expected to resume normal traffic
bags and of Rio to 263,151 bags, while the stocks held in Sao Paulo up-State by Jan. 1. No definite information concerning the new tariffis yet available.
on Nov. 30 amounted to 22,308,490 bags not including nearly 1,000,000 South China business is temporarily halted because of holiday observances.
bags still in the hands of growers. Owing to a shortage of low grades of Prospects for an early settlement of the Kwangsi situation are indicated,
coffee at Santos the Coffee Institute is permitting the entry of coffee to which, if successful, should result in substantial improvement in operating
Include 20% of series IC and L. The next Sao Paulo coffee crop is estimated conditions with interior areas, and thus prove a stimulating factor for trade
by trade circles at about 16,000,000 bags. The Government has decreed in the early spring months.
Manchuria's trade remains dull in all lines. Some activity is reported in
that invitations be sent to the coffee countries which took part in the Coffee
Congress of New York in 1902 to attend the Coffee Congress which will be bean shipments through Vladivostok to Europe, with, however, no assurideas
and
ance of any revival of such transactions. Trade during the year has inheld in Sao Paulo on March 311931. for the purpose of discussing
year
measures for the defense and prosperity of the industry. The Sao Paulo dicated gradual declinesfrom month to month. Outlook for the coming
and Federal Governments are being urged to adopt various measures, in- is dependent on foreign demand for Manchurian products. A large harvest
cluding a measure providing for the purchase and retention of coffee by still awaits buyers. November customsfigures at Darien show declinesfrom
goods.
the Government. in order to improve coffee prices. The manufacturing one year ago offrom 50 to 60% in receipts ofiron and steel, electrical
industries have further curtailed their operations and this, coupled with the machinery, railway plant and materials and kerosene; and declines ranging
decline
fact that commercial activity is low, has resulted in increased unemploy- from 25 to 75% in export shipments. Railway tonnages indicate a
ment and caused the government to issue a decree restricting immigration from normal offrom 60 to 70%•
and to turn Its attention to public works. Construction activity has been
COLOMBIA.
Curtailed, but this industry is still relatively more active than the others.
At the end of 1930 the economic situation throughout Colombia is slightly
BOLIVIA.
better, especially as compared with the close of last year. It appears that
depression has about reached its lowest level and the Government is
the
greatly
a
reduced
on
made
being
are
goods
foreign
of
imports
Bolivian
many economies. Congress has passed a balanced budget for the
scale as a result of the continued general depression in business. Govern- effecting
year, coffee prices are firmer, all inventories are low, and the credit
mental revenues from import duties during the month of November are new
is better. The Government and people appear reconciled to a
reported to have been some 35% below those of October. The Banco situation
along sound lines and expect the period of reconstruction
recovery
gradual
remaining
rates
selling
exchange,
of
rate
the
maintaining
Central is still
several years. The outlook for the coming year is brighter but no
steady at 2.84 bolivianos to the dollar during the month. More attention to last
improvement in business can be looked for until June or July.
is being paid to agriculture in an effort to attain a diversification of the noticeable
favorable conditions will depend upon satisfactory action
economic activities of Bolivia and to reduce the present dependence upon To a large extent
pending projects of law. There is a slight imimportant
on
Congress
by
ap
discussed,
there
freely
being
are
projects
construction
road
tin. While
in orders for foodstuffs, textiles and drugs. Increased sales of
pears to be little hope locally of obtaining the necessary funds for this pur- provement
automobiles have been noted in Bogota and Bucaramanga.
pose. On Dec. 16 the Government issued a decree stating that the Bolivian trucks and
President has extended Congress indefinitely. Important bills were
Government would support an international agreement among tin producing The
December,among which was the emergency revenue law which
countries to limit exports in an effort to adjust production to consumption. passed during
import duties on specific pharmaceutical preparations, drugs, &c..
On Dec. 22 the higher flour import duties became effective. An American doubles
establishes higher domestic taxes on insurance premiums, gasoline.
firm is now exhibiting sound pictures in La Paz, which have been well and
beer, matches and playing cards. The proposed new petroleum bill has been
received.
presented to Congress, likewise other bills containing recommendations
BRISISH MALAYA.
of the Kemmerer Financial Mission. It is expected that Congress will pass
Local trade failed to revive during the holiday season and business con- In the near future a bill revoking the emergency law applying to import
ditions have taken a downward trend, following the November feeling of duties on foodstuffs and establishing higher rates. Some of the proposed
confidence. A continual reduction in general stocks is one good feature import duties are: Nine cents per kilo on flour; 15 cents per kilo on pure lard:
but credits and collections are still difficult and the adverse balance of trade 4 cents per kilo on wheat; and other higher rates on essential foodstuffs.
continues, although the margin of imports is growing less. The rainy The President under the bill may be authorized to increase or decrease
season has retarded somewhat construction activity. November imports of duties according to the condition of crops and cost of living.
automobiles were the lowest in 1930. Re tistrations, however, were slightly
COSTA RICA.
higher than October indicating a reducti ni in stocks of new cars. Textile
demand is light and subsidiary markets are quiet. Japanese activity
Sales and collections have improved during December. This is largely
continues.
seasonal yet the position of importers, except those carrying luxury goods,
is generally better than a year ago. Owing to lack offunds the Government
CANADA.
has just suspended all work on roads. On Dec. 2 Congress authorized a
The volume of Canadian business in 1930 is now estimated at more than bond issue of $2,750,000 to refund road loans and continue the work and
20% below the 1929 turnover. Little hope is held for an early recovery also guaranteed $1.250.000 in paving bonds for work already finished.
In 1931, although a substantial improvement is anticipated in later months. Out of a total of 66,477 sacks (150 pounds each) of coffee exported from the
An announcement by Premier R. B. Bennett on Dec. 22, states that beginning of the season to Dec. 24 50,628 went to the United Kingdom.
"arrangements have been concluded that ensure the orderly marketing 14,107 sacks to Germany and 1,070 sacks to San Francisco. The average
of the 1930 wheat crop of Western Canada." The general interpretation price for 112 pounds of Costa Rican coffee sold in the London market
of the statement, made after a conference with Canadian bankers, is that during December was about 109 shillings as compared with 103 shillings in
the Dominion Government will guarantee the advances made by the banks the corresponding month of 1929. So far the price is better than expected
to the Wheat Pool in order to prevent forced selling. Winnipeg cash wheat, and growers are more hopeful of obtaining a good price for the bulk of the
at 50% cents per bushel on Dec. 22 (for No. 1 Northern, Fort William crop.
basis), was at the lowest figure ever quoted; later quotations advanced
DOMINICAN REPUBLIC.
slightly. Spring wheat flour at Montreal has declined ten cents per barrel.
Business conditions in the Dominican Republic during December conWeather is retarding the movement of winter lines.
In the Maritime Provinces and Quebec Christmas shopping was brisk tinued poor. Trade in general was slack and Christmas sales in Santo
but otherwise trade is dull. Consumer bu hag is limited apparently because Domingo were perhaps 50% below last year at the same period. Merretail prices in most lines have not yet been adjusted to the lower wholesale chants are pessimistic as regards the immediate future. The export crop
levels. Automotive business continues dull but electrical household appli- movement continues small. Total movement to date is much below that of
ances register an improvement. Specialties are in good demand and a last year, according to current statistics of exports obtainable.
satisfactory movement is reported in retail hardware. Some sizeable iron
ECUADOR.
and steel orders are expected in the near future. Utility gifts featured
Although the holiday trade brought some temporary activity into the
Christmas buying in Ontario. Most retail lines report a fairly satisfactory
movement was disappointing, being below
situation,
the
*volume but the value of sales is much under last year's. The holiday fruit sluggish business
of last year. As a result, no material improvement in the general
and vegetable trade is understood to have been very good,including supplies that
commercial situation has occurred. Sales of drafts by the Central Bank
from the United States.
exceed purchases by over 901,000 sucres. The prospects
Large scale price cutting is reported In the hosiery industry. Other during November
Christmas cacao crop are not as good as was the case last year. Artextile lines are Improving their position with fair orders booked. Coal is for the
for
cacao
1930 are running somewhat ahead of those of 1929.
of
rivals
In greater demand. Sales of petroleum products are about normal.
Christmas trade in the Prairie Provinces was generally disappointing.
FRANCE.
Sales of new automobiles continue at about 45% under 1929 figures but
Foreign trade in November showed an adverse balance of 809,000,000
greatly
reduced.
Replacement
are
stocks
and
well
moved
have
cars
used
francs with imports valued at 4,249,000 and exports at 3,440,000 francs.
and accessories sales are very satisfactory. Iron and steel and hardware The adverse balance for the first 11 months totals 8,411,000 francs as comsales are affected by the decline In building, estimated to be 40% lower pared with 7,550.000 during the corresponding period of 1929. Unemploythan last year in the leading Prairie centers. Transportation equipment ment continues to increase rapidly; on Dec. 13 the total number ofregistered
business is good, however, in both construction and replacement branches. unemployed in receipt of allowances was 8,936 of which 5,439 were in Paris.
Leather and machinery lines are dull.
Comparative figures were 878 on Sept. 20 of this year and 689 on Dec. 13
Christmas sales in British Columbia were down 10 to 20% from last year. 1929.
Pulp and newsprint sales are reported to be 40% under normal.
GUATEMALA.
The Canadian Pacific railway connection between Procter and Kootenay
The Christmas business in jewelry, gift goods, dry goods and foodstuffs
Landing opens for service on Jan. 1. That railway has agreed to use 100,000
tons of coalfrom Crowsnest Pass mines as a measure of unemploymentrelief. was fairly satisfactory and above expectations, but it was noticeable that
November coal production in British Columbia Province as a whole was expensive merchandise did not move, while cheaper articles had a ready
25% below the corresponding figure for 1929. Substantial gains over Octo- sale. Business in all lines during the last three months of 1930 was better
ber were registered in the November production of automobiles and iron and than during the sununer, but was below last year. Decreases in various
steel in Canada. although the figures are still appreciably below 1029 levels. lines during the first 11 months of 1930 compared with 1929, were hardware,
In the former, a gain of 19% over October is shown by November output: 40 to 50%; textiles, 30 to 40%; machinery, 60 to 70%;office supplies,55%;
foodstuffs, 40%, with a larger drop for canned goods and fancy groceries.
Pig iron is up 20% and steel ingots and castings. 10%•
Imports of barbed wire, and tomatoes (not under the British preferential There was also a big decline in building materials and automobiles.
schedule), are subject to new valuations for duty purposes, according to
regulations issued Dec. 22 and 26, respectively. Details are given in the
The acute business depression which started a year ago with the break in
Division of Foreign Tariffs section of this issue. Collections are reported
fair at Halifax and Saint John (New Brunswick); slow to fair at Montreal, coffee prices, has been intensified by reason of the small crop this year.
Toronto, Vancouver and Saskatoon; improving at Calgary; slow at Regina There is no expectation of early improvement in conditions. Stocks of
merchandise,especially textiles, are at a low ebb. Outstanding accounts for
and Edmonton; slower at Winnipeg.
JAN. 3 1931.]
FINANCIAL CHRONICLE
49
merchandise and to importers are at about the same volume as last month
TRINIDAD.
and collections are just as difficult as the previous month. Many firms no
The general financial depression continues and the Government expects a
doubt would be forced into bankruptcy but for the knowledge of creditors considerable decrease in revenue for 1930, but has ample surplus funds
that, due to local conditions, such action would be unprofitable. There for present needs. Revenues will be enlarged by increasing customs duty
was no sugar manufactured during December; 85 tons were returned, 58 on gasoline, naptha, benzine, &c., to 16 cents per imperial gallon plus
10%
tons refined, and 40 tons sold locally. Sugar on hand Dec. I amounted to surtax. The Trinidad Government intends to assist all local industries.
4,124 long tons.
The large local firms apparently have ample funds. A large modern plant
HONDURAS.
using British machinery is manufacturing lard substitutes and edible oil
Owing to the holidays, business in Central Honduras has shown an tin- from copra and another small factory manufactures edible oilfrom coconuts.
In
order to protect this new industry and assist copra producers the Governprovement. Collections have improved except from a few ordinarily difficult local firms. Indications are that an average sized coffee crop of good ment fixes each week the wholesale price for copra at not less than three
It is estimated that this factory can use
quality will be harvested during the 1930-31 season. By an average sized dollars per hundred pounds.
crop is meant approximately 80,000 quintals of which three-fourths is three-fourths of the total annual copra crop if exportation of copra products
feasible. The Trinidad Government has
to
other
West
Indian
Islands
is
exported. Coffee prices are very low in the San Francisco marhet.
fixed wholesale prices of locally made lard substitute at 10 cents per pound
JAPAN.
and edible oil at ninety cents to one dollar per imperial gallon according
Business in Japan was generally quiet during the last week of December to size of container. In order to protect this new industry previous customs
with interest centered on year-end settlements, which were expected to be duties are rescinded and new ones imposed.
made without difficulty. The money market was more active with discount
URUGUAY.
rates advancing owing to the cautious attitude of bankers. A slight upward
Business in general registered a further decline in December and the voltrend, particularly in spinning shares, featured the stock market, which
was generally steadier. Although operating profits for the year show a con- ume of sales in many lines was the lowest of any month of the year. Sales
siderable drop, with several important companies reporting losses, the results of holiday goods were much below expectations and the merchants who had
are generally better than anticipated, with serious losses confined largely been counting on Christmas trade to improve their cash position have been
to shipping and shipbuilding. Declines in profits in the cotton industry are disappointed. The further decline in the exchange value of the peso made
all business uncertain and contributed to the widespread belief that no
reported to be very slight.
improvement in trade can be expected this summer.
MEXICO.
VENEZUELA.
Mexican peso exchange has strengthened during the past week and is now
Economic conditions in Venezuela in general showed no improvement
approximately 2.12 gold pesos to the dollar, with silver at 11% discount,
after having dropped to 2.27 gold and 2.70 silver pesos to the dollar. The during December. The weakness of exchange,slow coffee sales, and reduced
favorable reaction is attributed locally to the circulation of reports that the petroleum production during the holidays contributed toward lessened trade.
Mexican Government is negotiating for a credit to stabilize exchange. The value of the Bolivar took an upward turn during the last ballot the
The unfavorable exchange situation has increased the difficulty of collec- month,which lent encouragement to hopes for improvement during January.
tions enormously and is also cutting down import orders. Both the Senate when the exportation of coffee should be well under way. The Bolivar
and Chamber of Deputies have approved changes in the agrarian laws sank to new lowlevels during the early part of December,exchange being conwhich have been recommended by the President. The draft of the labor sidered extremely low for that time of the year, when the early exportations
bill is now being considered by the President and his cabinet. It is reported of the coffee crop usually increase the demand for Delivers. With the
that a special session of Congress in February is being considered to take up continued weakening of the Bolivar, collections became slower.
the matter of labor legislation. The recent increase in import duties on
The Department's summary also includes the following
cotton and rayon goods and certain foodstuffs, particularly eggs and fruit,
with
regard to the Island possessions of the United States:
is reducing imports in these lines. The Tariff Commission has received applications for increases in rates on other items, but the Secretary of the
PHILIPPINE ISLANDS.
Treasury stated to the Senate this week that tariff protection alone cannot
The volume of Christmas trade is estimated at least 15% below last year.
bring prosperity and that only those industries should receive protection
Although retail sales of textiles showed an increase over recent business,
which are particularly adapted to the country. The "Buy Mexican Made
this was purely seasonal. Collections continue difficult and new credits
Goods"campaign which was begun by the Monterrey Chamber of Commerce are very limited. The general trend of import trade is downward.
some time ago, has been intensified and is receiving the support of the Federal Government.
PORTO RICO.
NETFIERLAND EAST INDIES.
Though basic conditions appear better than in recent years, December
Many importers are endeavoring to liquidate stocks for low inventories business other than the holiday trade was at a very low level. Holiday
at the beginning of the new year. Except in the automotive trade, collec- trade in San Juan was about the same as last year. The optimism of the
tions are better and loans are met more promptly. Textile business shows past few months on account of firmer sugar prices and the hope of further
slight improvement with fair activity in inexpensive cotton lines. Silk Improvement is waning, but the sugar people are still hopeful of a satisfacstocks, however, are abnormally heavy. Automobile dealers are liquidating tory international agreement on restriction of production.
stocks and ordering new models for anticipated business in February and
and March. Trade in most imported foodstuffs is below normal. Harvest
prospects for native food crops are good. The sugar market is slack, await- S.
Parker Gilbert for Agent General for Reparations
ing the result of European conferences. October exports were 23% under
Payments, Becomes a Member of Firm of J. P. Morgan
October 1929 and imports were 26% lower.
NICARAGUA.
No change has been noted in the unsatisfactory business situation in
Nicaragua. Circulation of the cordoba increased from 2,798,000 in Novenber to 2,880,000 in December. Imports through Corinto from Nov.
27 to Dec. 25 amounted to 2,559 tons. Exports during the same period
amounted to 593 tons. Customs duties, payable at Corinto, during December amounted to $108,500, as compared with $95,950 in November and
$136,000 in October. (Cordova about $1.)
PANAMA.
The holiday trade in Panama was good with useful purchases predominating and sales ofluxuries and toys slow. Imports are recovering somewhat
in anticipation of the United States fleet, although stocks on hand are still
high. A number of commission houses are displaying renewed activity
in pushing foodstuffs, lumber, corrugated sheets and construction equipment. No important business failures have been reported during the last
few months. The collection curve shows an upward trend. Unemployment is decreasing as important public construction projects get under way.
Automobile dealers predict an increase,ranging from 33 to 50% in sales during the coming year. Coffee growers in the Boquete region have been seriously affected by the low prices. Generally speaking, the business outlook
for the coming year assumes a more cheerful tone. Canal traffic is below
last year, but December is closing with a large movement. Local merchants
are endeavoring to secure government aid in establishing an organization
whose function will be to advertise Panama as a winter resort.
PERU.
Business conditions in Peru became steadily worse during the month of
December. Even the Christmas season failed to show any improvement.
With the depression continuing, the commercial and financial crisis is becoming increasingly acute. The credit situation is unimproved and collections are difficult. Retail holiday sales have been light. Reductions in
both commercial and Government salaries ranging from 10 to 25% which
are planned for 1931 will further reduce buying power with prospects of
incre ised unemployment. Wholesale and retail sales continue sub-normal,
the credit stringency and money shortage affecting all lines. The seasonal
contraction of business at the close of the holidays and inventory-taking
are contributing to augment business inactivity. The total of•protested
drafts from Nov. 24 to Dec. 25 was 130,000 Peruvian pounds. The Crere
do Pasco Co. resumed operations on Dec. 15, but the beneficial effects
are not yet noticeable excepting for the restoration of a daily operating
schedule on the Central Railways of Peru. Bank clearings for November
were 47,000,000soles and December clearings up to Dec.25 were 27,000,000.
Note circulation at the end of November was 65,000,000 soles and the gold
reserve 48,000,000. The chief visible hope for the present situation consists in the hoped for reorganization of the financial structure of Peru as a
result of the findings of the Kemmerer mission which is arriving in January,
and in the constructive efforts of the present Minister of Finance who has
officially estimated the deficit for this fiscal year at 20,000,000 soles.
He is urging a reduction of 30,000,000 soles under the present budget for
next year, fixing a provisional budget for the first semester at 55,250,000
soles, with a recommendation for rigid economy in Government expenditures.
& Co.
In an announcement made public Jan. 1, J. P. Morgan
& Co. stated that S. Parker Gilbert would become a member of their firm on January 2. Mr. Gilbert was formerly
Agent General for Reparations Payments. Noting that
partnership in J. P. Morgan & Co. also carries with it
partnerships in Drexel & Co., of Philadelphia, Morgan,
Grenfell & Co. of London and Morgan et Cie., Paris, the
New York "Times" of Jan. 1 said in part:
Ever since Mr. Gilbert ended his work as Agent General for Reparations
Payments his name has been mentioned in connection with probable membership in the Morgan banking house. His joining the firm, therefore,
comes as no surprise to the financial community. It is understood that
many offers have been made to Mr. Gilbert, including those of high posts
with commercial banks.
When Mr. Gilbert returned from Berlin last June after bringing his
work as Agent General for Reparation Payments to a conspicuously
successful conclusion, it was freely asserted that he could have any
position in the legal or financial world that he wished, and it was
prophesied then that he probably would enter the Morgan firm. •••
Held Many Important Posts.
Mr. Gilbert's post as administrator of the Dawes plan, with such power
that the extreme Nationalists held a mock coronation for him in Berlin
in 1928 and proclaimed him "a new and more powerful Kaiser," is only
one of many important positions he has held during his brief but spectacular career.
From his schooldays on, Mr. Gilbert has been noted for his high
scholarship, his industry and his reticence. He was born in Bloomfield,
N. J., on Oct. 13, 1892, the son of Seymour Parker Gilbert, a member
of the New Jersey Assembly. He graduated from grammar school and
high school with honors and took his A. B. degrees at Rutgers in 1912,
graduating at the head of his class. He entered the Harvard Law School
and graduated from that cum laude in 1915.
His high standing at Harvard made it easy for him to obtain a good
connection in New York, and he entered the offices of Cravath & Henderson as assistant to Russell C. Leffingwell.
When the United States entered the World War Mr. Gilbert endeavored to enlist, but could not because he had not completely recovered
from an appendicitis operation. However, Mr. Leffingwell, who also is
now a member of the Morgan firm, was called to Washington to serve
as special assistant to the Secretary of the Treasury and at his suggestion
Secretary McAdoo summoned Mr. Gilbert to be an attorney on the war
loan staff.
When, in 1918, Mr. Leffingwell returned to New York Mr. Gilbert
succeeded him and so became, at the age of 27, Assistant Secretary of
the Treasury. He continued to serve under Secretaries Glass and
Houston and was retained through the change of parties which put the
Republicans in power and made Andrew W. Mellon Secretary of the
Treasury. Some of the Republicans objected to the man who they
50
FINANCIAL CHRONICLE
thought was a Democrat occupying an important post and in reply Mr.
Gilbert issued one of his few statements to the press, declaring that he
was a Republican as his father before him had been.
Acted as Secretary of Treasury.
Mr. Gilbert was an indefatigable worker, often remaining in his office
in Washington until 2 or 3 o'clock in the morning. Mr. Mellon was
so impressed by the young lawyer's capacity and quiet industry that he
was instrumental in having the post of Under-Secretary of the Treasury
created by Congress in 1921, with Mr. Gilbert as its occupant. In this
post Mr. Gilbert was second in command to Mr. Mellon in every de.
partment of the Treasury, with innumerable bureaus under his immediate control, and was Acting Secretary of the Treasury in Mr. Mellon's
absence.
During his service in the Treasury Department, Mr. Gilbert handled
many delicate financial operations at a time of great economic complexity,
including a $7,000,000,000 refunding program. He resigned in 1923 and
rejoined the firm of Cravath, Henderson & de Gersdorff as a partner.
Meanwhile the efforts to rescue Germany from her economic morass
and to solve the reparation problem had resulted in the formulation of
the Dawes plan. Owen D. Young, who had had so great a part in the
working out of the Dawes plan, served a few months as Agent General
for Reparations Payments, and on his retirement Mr. Gilbert was named
to succeed him. And he was then only 32 years old.
Mr. Gilbert's post was probably the biggest financial assignment in all
history, but he took it without misgivings and quickly won the elderly
statesmen and financiers of Europe. His mission was to guide Germany
to financial and economic stability and to see to it that she paid the Allies
all the reparation she could without breaking down.
During his administration Germany became a sound and prosperous
nation, and he collected and turned over to the Allies about $2,000,000,000
in money and goods. He did not hesitate to criticize Germany severely
when he thought she deserved it, but he also stood between Germany and
what he felt were unreasonable exactions by her former enemies. When
he departed last June he was signally honored by both Germany and
France. With his departure the functions of his office were taken over
by the Bank for International Settlements, which he helped to organize.
President Hoover Issues Proclamation Announcing Coming
Into Effect of London Treaty for Limitation of Naval
Armament.
In a proclamation dated January 1, President Hoover
announced that the London treaty for the limitation and
reduction of Naval Armament has come into force; he
stated therein that he has caused the treaty "to be made
public to the end that the same and every article and
clause thereof may be observed and fulfilled with good
faith by the United States of America and the citizens
thereof." From the New York "Herald-Tribune" we take
the following from Washington, Jan. 1, with regard to the
issuance of the proclamation:
(VOL. 132.
President of the French Republic, His Majesty the King of Great
Britain, Ireland and the British Dominions Beyond the Seas, Emperor
of India; His Majesty the King of Italy and His Majesty the Emperor
of Japan, the original of which treaty being in the French and English
languages, is word for word as follows:
(Its text follows in the proclamation.)
And, Whereas, It is provided in Article 24 of the said treaty that as
soon as the ratifications of the United States of America, of His Majesty
the King of Great Britain, Ireland and the British Dominions Beyond
the Seas, Emperor of India, in respect of each and all of the members
of the British Commonwealth of nations as enumerated in the preamble
of the said treaty, and of His Majesty the Emperor of Japan, have been
deposited, the treaty shall come into force in respect of the said high
contracting parties;
And, whereas the ratification by the United States of America, subject
to the understandings set forth therein, that there are no secret files,
documents, letters, understandings or agreements which in any way,
directly or indirectly, modify, change, add to or take away from any
of the stipulations, agreements or statements in said treaty, and that
excepting the agreement brought about through the exchange of notes
between the governments of the United States of America, Great
Britain and Japan having reference to Article 19, there is no agreement, secret or otherwise, expressed or implied, between any of the
parties to said treaty as to any construction that shall hereafter be
given to any statement or provision contained therein, the ratifications
by his Majesty the King of Great Britain, Ireland and the British
Dominions beyond the seas, Emperor of India, in respect of the United
Kingdom of Great Britain and Northern Ireland and all parts of the
British Empire which are not separate members of the League of
Nations, the Dominion of Canada, the Commonwealth of Australia, the
Dominion of New Zealand, the Union of South Africa and India, and
the ratification by his Majesty the Emperor of Japan, were deposited
at London on the 27th day of October, one thousand nine hundred
and thirty, and the ratification by his Majesty the King of Great Britain,
Ireland and the British Dominions beyond the seas, Emperor of India,
in respect of the Irish Free State, was deposited at London on the
31st day of December, one thousand nine hundred and thirty;
And whereas the said treaty has thus come into force in respect of the
United States of America, his Majesty the King of Great Britain,
Ireland and the British Dominions beyond the seas, Emperor of India,
and his Majesty the Emperor of Japan.
Now, therefore, be it known that I, Herbert Hoover, President of the
United States of America, have caused the said treaty to be made
public to the end that the same and every article and clause thereof
may be observed and fulfilled with good faith by the United States
of America and the citizens thereof.
In testimony whereof, I have hereunto set my hand and caused the seal
of the United States of America to be affixed.
Done at the city of Washington this first day of January in the year of
our Lord one thousand nine hundred and thirty-one, and of the independence of the United States of America the one hundred and fiftyHERBERT HOOVER.
fifth.
By the President:
HENRY L. STIMSON, Secretary of State.
With an absence of ceremony, the President signed the proclamation
Britain Again Demands French Gold Payment
in his study at the White House and issued it as his first act of the new Great
—But Paris Insists War Loan Is Payable in Francs
year. The treaty actually went into effect yesterday, when the Irish
Free State deposited its ratification at London. It was the last of the
at New Stabilized Value.
signatories thus to signify its adherence to the pact.
The following Paris cablegram, Dec. 30, is from the New
The treaty will continue in force for six full years, its date of expiration being December 31, 1936, so far as naval building is concerned, York "Times":
but provision is made for a conference to be held in 1935 to extend the
Another note from the British Government has been transmitted to the
present pact or draft another.
French Government through the British Ambassador here regarding the
Significantly included in President Hoover's proclamation is a refer- repayment in depreciated paper francs of the war loan subscribed in Engence to the resolution of the Senate which made plain that its ratification land in gold francs.
of the treaty was based on the understanding that it involved no secret
The British contention is that inasmuch as the loan was subscribed In
agreements. The language of the proclamation repeats the qualifying gold francs it should be repaid in gold money. The French legal attitude
phrases which attended the Senatorial ratification.
is that the obligation of the French Treasury is in francs and the new
The reference in the proclamation occurs in one of the "whereas"
stabilized franc, worth one-fifth of the old franc, is the only legal tender.
clauses, which records the fact that all the instruments of ratification by
The French argue that in view of the cost to their own people of the
the various signatories have been duly deposited. The American ratifica- reduction in the value of the franc it would be unfair to pay foreign insets
forth,
is subject to the understanding
tion, Mr. Hoover's proclamation
vestors in a war loan on the old gold basis. To that the English answer is
that "there are no secret files, documents, letters, understandings or
that while the French Government by its action reduced by four-fifths the
agreements which in any way, directly or indirectly, modify, change, add
value of the franc it also reduced the burden of the internal debt of the
to, or take from any of the stipulations, agreements or statements in said country by a similar proportion, with a consequent benefit to the French
treaty, and that, excepting the agreement brought about through the expeople.
change of notes between the governments of the United States of America,
Great Britain and Japan having reference to Article 19, there is no
agreement, secret or otherwise, expressed or implied, between any of the Views of French Market on "Maldistribution" of Gold.
parties to said treaty as to any construction that shall hereafter be given
A Paris message, Dec. 28, is taken as follows from the
to any statement or provision contained therein."
Taking care to avoid all possibility of Senatorial criticism, the verbiage New York "Times":
of the proclamation in this clause is almost a replica of the Senate resoluReplying to the constantly recurring contention that there is something
tion sponsored by Senator George W. Norris, of Nebraska, voicing the artificial in the large flow of gold from England to France during 1930,
sentiment of the Senate as it ratified the treaty.
French financiers have two answers. The gold comes to Paris, because
The agreement in respect to Article 19, to which the Senatorial resolu- France is a creditor of most other important countries on international
tion and the proclamation refer, deals with cruiser replacements. At- account. It leaves England, because the foreign trade balance is running
tacked as a loophole which might vitiate exact limitation, the article was heavily against Great Britain, creating an international debit which has
placed by the American State Department before Great Britain and to be paid in gold.
Japan for their construction. The three powers mutually interpreted
The favorite economic theory of the day, that gold should he equitably
the article to mean that cruisers becoming overage must be replaced by distributed in some way among the vario is countries, is regarded here as a
ships of the same category, or, in other words, cruisers carrying guns utopian idea. It is considered, in the nature of things, as impossible to
of like caliber. This exchange of notes helped to check attempts to block distribute gold equally among the nations as distribute wealth among indiSenatorial approval of the pact, which was ratified, 58 to 9, on July 21.
viduals. The gold movement from England to France was not a cause but
The proclamation was issued through the State Department, which will an effect of the reactionary state of trade and industry in Great Britain and
keep the document in its archives.
other countries outside. of France.
The treaty had been concluded and signed at London on April 22,
presaging an end of naval competition through the continuation of the
ban on battleship building and the limitation on cruisers, submarines Foreign Credits of France Nearly as Large alYear Ago.
and destroyers. Even before the treaty became effective the United States
Under date of Dec. 26, the New York "Times" reported
took steps to carry out the terms of the treaty by planning the required
scrapping or conversion of three battleships and the decommissioning of the following from Paris:
some fifty other vessels.
The reserve of foreign exchange now held by the Bank of France aggregates 26 billion francs, an increase of one billion since a year ago. In
The proclamation reads as follows:
addition to this, the aggregate foreign balances of French private banks
By the President of the United States of America.
are estimated between 10 and 12 billion francs. They, however, have decreased since a year ago by about five billion francs.
A PROCLAMATION
Balances abroad held by the French Treasury amounted to 10 billion
Whereas, A treaty for the limitation and reduction of naval armament
was concluded and signed at London on April 22, 1930, by the respective francs a year ago. They are believed, however, •to have decreased considplenipotentiaries of the President of the United States of America, the erably during the year, although mostly as a Jesuit of payments by the
JAN. 3 1931.]
FINANCIAL CHRONICLE
French Treasury falling due on the foreign markets. To this extent, the
treasury's operations in connection with its foreign balances have not represented actual withdrawal of capital from other markets.
Professor Wagemann of German Bureau of Statistics
Rejects "Gold Theory" as Cause for Depression.
From the New York "Times" we quote the following from
Berlin, Dec. 26:
51
After discussing the effects of the one-sided payments of
Germany; Dr. Nadler concluded:
The payment of reparations by Germany is one of the most important
sources of France's ability to build up huge balances abroad and to draw
gold from England. The fact that France does not utilize this gold and that
It could be used to much greater advantage in other countries, is one of the
reasons for the dislocation of the purchasing power of the world and an
important factor in the world's economic depression.
Professor Wagemann, President of the German Bureau of Statistics,
writes that the present crisis is not connectea with the world's supply. He
points out that the fact that the world's available gold increased only 15%
since 1913 did not prevent the doubling of the world's currency circulation.
Further, he emphasizes the fact that the various proposed changes of
currency policy, such as reduction of the legal gold cover, would not help
to overcome trade depressIon.
Dr. Solmssen, German Bankers' Head, Holds Reparations Must Soon Be Cut—Asserts Reduction to
"a State of Feasibility" Is Needed—Deplores Effects
of "Exaggerated Meddling" of Reich Government
in Business.
The public obligations assumed by Germany under the
Young plan "must soon be made subject to new negotiations
Bordeaux Bank of Orient Closed.
and reduced to a state of feasibility," in the opinion of Dr.
The following Paris cablegram, Dec. 27, la.from the New Georg Solmssen, recently elected President of the German
Bankers' Association. He is quoted to this effect in an
York "Times":
The French financial situation was further disturbed to-day by an an- Associated Press cablegram Dec. 28 from Berlin appearing
nouncement from Bordeaux tha th, Bank of the Orient, established fifty in the New York "Times" which continued:
years ago, had gone Into liquidation. Examination by authorized officials
disclosed a deficit of 2,548,773 francs (about $100,168).
This judicial liquidation, which is not to be confused with voluntary proceedings in bankruptcy, has come as a severe blow to the whole Bordelaise
region, since the majority of the industrial and commercial interests of that
district did business with the bank. In addition to the commercial interests involved, the bank had a large number of small depositors who are
seriously affected by its closing.
Efforts to Check Paris Gold Import—Bank of France
Adopting New Expedients to Restrain Withdrawals from Abroad.
Under the above head the New York "Times" had the
following to say in advices from Paris Dec. 26:
A further increase of 383 millions in the gold reserve at the Bank of
France leaves the ratio of reserve much the same as before— 53.78, as
against 53.77. The market expects gold imports to continue for some time
yet, because gold already booked at London for Paris can reach the French
bank only when refined. But the Bank of France is doing all that it can
to head off this inflow of gold. The latest return shows that the bank
bought 300 million francs more of foreign exchange,with a view to keeping
sterling away from the gold point.
Furthermore, in order to hinder repatriation of capital by the private
Paris banks, the Bank of France has offered special facilities to these institutions, consisting of the loan of its own funds according to their requirements, such loans being guaranteed by the private bank balances
abroad. Through this arrangement such private balances would be loaned
to the Bank of France instead of being recalled in the form of gold and
converted into francs, as would happen if the private banks were to sell
the equivalent in foreign exchange on the market.
Dr. Nadler of New York University Holds German
Reparations Plan Unworkable Under Prevailing
Conditions.
The Young Plan, although devised by some of the best
known bankers and economists of the world was a compromise
dictated to a considerable extent by political necessities,
Dr. Marcus Nadler, Associate Professor of Finance at New
York University, declared on Dec. 18 before the Conference
on Foreign Investments of the University in the Governors'
Room of the New York Stock Exchange. Dr. Nadler said:
The Young Plan was based on Germany's experience during the prosperous years 1927 and 1928. Although none of the experts who formed the
Young Plan could have foreseen an economic depression of a magnitude
unprecedented in the past 50 years, they foresaw that the successful operation of the plan depended on good will and good faith of the parties concerned.
The postulates on which the Young Plan is based have not been fulfilled.
The free flow of goods and ofcapital, one of the mostimportant prerequisites
for the successful operation of the Plan, has suffered further setbacks and
the political uneasiness and uncertainties prevailing in most countries in
Europe has greatly undermined the confidence of American, British, Swiss
and Dutch investors in the securities of Germany.
After analyzing the factors which influenced the experts
in formulating the Young Plan, Dr. Nadler stated:
Dr. Solmssen is a director of the Deutsche Eank-Disconto Gesellschaft,
the Reich's largest banking institution. In his first interview, granted
to the Associated Press to-day, he discussed Germany's economic position
with particular reference to reparations, debts, the State in business and
the constructive leadership offered by the German banks in these times
of stress.
Private foreign debts, Dr. Solmssen believes, constitute no danger.
since their interest and amortization are within the limits of Germany's
capacity.
"This is predicated on the assumption, however," he added,"that foreign
countries will continue to have confidence in Germany and at least realize
that a prosperous Germany constitutes the strongest bulwark against those
destructive tendencies which follow in the wake of making business generally
the football of politics."
Stresses Gold-Value Shift.
On the question of reparations Dr. Solmssen said:
"Every thinking person realizes to-day that the reparations as fixed
by the Young Plan were construed on erroneous assumptions. Aside
from the fact that Germany's economic capacity was greatly over-estimated
the complete shift in the value of gold has brought with it an increase in
reparations which cannot be borne in the long run.
"Similarly, the world economic crisis and the erection of protection
walls against the importation of foreign goods have done their share to
make it impossible for Germany to increase her exports in such a manner as would produce the surplus which is a premise to her fulfillment
of her reparations obligations.
"The non-private obligations resulting from the Young Plan must,
therefore, soon be made subject to new negotiations and reduced to a
state of feasibility. In effecting a reduction, the tremendous changes
which have taken place in the entire world since the adoption of the Young
Plan must be taken into account, and also the grave scruples raised immediately by German business against the content of the Young Plan."
Dr. Solmssen said that Germany's present condition was dominated by
the economic aftermath of the World War and by attempts to re-establish
gradually her connection with the world's economy, severed by the Versailles treaty.
"Germany suffered from mistakes inherent in the arrangements that
followed the war," he continued, "because these were made in a vain
attempt to regulate economic questions by political considerations. As
policies ceases to be the preponderant and dominating factor, and decisive
viewpoints are again determined by calm economic consideration, conditions in Germany will swing back more and more toward equilibrium.
"The war and the political upheaval resulting from Germany's fate in it
led to exaggerated meddling of the State in business, a condition which
can be remedied but slowly.
Deplores Wage Rise.
"The ground for a change seems to have been broken by a realization
among the masses of the people of what a wage policy regulated by the
State means, and that the theory of trying to increase purchasing power
by raising wages has achieved the opposite from the desired effect.
"Net wages have decreased, and industry has been compelled to rationalize its plants more and more to make up for increased production
costs caused by the State's wage policy. This meant that an increasing
number of persons became superfluous, and unemployment,already greatly
increased by the world economic crisis, assumed ever greater proportions.
"People are beginning to realize that the wrong wage policy and exaggerated State competition with private industry are responsible for the
fact that capital was consumed instead of saved and that to make up
this deficit German economy had to assume debts aggregating 20,000,000.000 marks (about S4,760,000,000), whose annuity ranges side by side
with a much too high reparations burden.
"It is to be hoped that the Government will have the courage not to be
afraid of telling the German people unpleasant truths and will not be
swerved by partisan political considerations from the path it considers
right, namely, to reduce expenditures so they can be met by taxes which
will not exceed the limits necessary to make possible the accumulation of
new capital."
The Committee of Experts were primarily concerned with the problem
of maintaining the stability of the German currency. The ability of Germany to raise the annuity internally was taken for granted. That the German concept of the state and its functions differed from the Anglo-Saxon
was greatly overlooked. With more than three million unemployed, with
a sharp decrease in revenues, and burdens with the payment of about
A previous item bearing on Dr. Solmssen's views on the
$400,000,000 for reparations the German Government is forced to decrease
its subsidies to the destitute and is unable to live up to the social provisions subject of the German debt appeared in our issue of Dec. 20,
of the German constitution. The social legislation of Germany, however, page 3968.
Is the greatest bulwark against Communism and Fascism. If the payment
of reparations should force Germany to further curtail the budgetary contributions to social welfare purpose, it is not unlikely that the Social Demo- German Payments Abroad—Berlin Has no Doubt of
erotic Party, the staunchest upholder of the Republic, may lose its hold on
Fulfilment of All Foreign Engagements.
the laboring masses of the country, which may place the present democratic
Advices as follows from Berlin Dec. 29 are taken from
Government in jeopardy.
The question of to-day is not of Germany's ability to pay. The question New York "Times":
rather is whether the payment of reparations at present undermines the
At the end of the year, the position of the Reichsbank and of the German
political stability of the Reich and feeds those elements which work towards commercial banks lain a fundamentally sound condition. It is
felt also
it
does.
believe
I
destruction.
The
its
great shortcoming of the Young the financial outlook is improved by the cabinet's success thus far that
with
Plan is that it makes no provisions for budgetary relief in case ofemergencies budget reform.
caused by unforeseen serious economic depression. The sooner this defect is
No doubt exists regarding the ability of Germany during the coming
remedied by giving Germany the same right to postpone payments as she year to meet its reparation liabilities and other public
indebtedness to forenjoys in the postponement of transfers, the sooner will reparations dis- eign markets. The payment of principal and
interest on German bonds
appear as a disturbing factor in Germany's political life.
held privately abroad will unquestionably continue.
the
52
FINANCIAL CHRONICLE
German Reichsbank Dividend—Stock Payment to
Include Option on Gold Discount Bank Shares.
Supplementing the item appearing in our issue of Dec. 27,
(page 4129) we give the following notice issued by the
New York and Hanseatic Corp. this city to holders of Reichsbank shares:
charge,
Holders of Reichsbank shares are entitled to receive free of
now held
beginning Jan. 12 on every four shares (of RM. 100 par value)
dividends
in
1 new Reichsbank share of RM. 100 par value participating
share
from Jan. 11930. and in addition either 1 Deutsche Golddiskontbank
of i10 par value or in its stead a cash payment of RM.224,40 (about $53)•
This offering is made as compensation to present shareholders for recent
Government a
changes in the Reichsbank Law granting to the German
more fully
larger participation in future profits of the bank as described
In our circular of February 26 1930.
mailing or
The rights may be exercised through our intermediary by
Jan. 2
presenting to us share certificates (without coupon sheets) between
and March 31 1931.
The rights expire in Berlin on Apr.17 1931.
In view of their value we recommend early action.
NEW YORK AND HANSEATIC CORP.
[VOL. 132.
Province of Santa Fe, Argentina, Reports Higher
Collections.
According to cable advices to the Chatham Phenix Corp.,
the total revenue collections of the Province of Santa Fe,
Argentina, for the two months October and November,
amounted to 8,457,680 gold pesos, an increase of 3,082,612
pesos over the previous two largest months of the year.
December collections have been somewhat more than in the
same month of 1929. The same advices state that over 100
large taxpayers have offered to pay in advance their taxes
for 1931 amounting up to the present to about 1,000,000
pesos, should the Government of the Province need the
money to fulfill its obligations up to Dec. 31 without making
use of credit. The Provincial budget for 1930 amounted to
50,600,000 pesos, as compared with the 1931 budget awaiting
approval of 44,400,000 pesos.
Decision of Brazilian Secretary of Treasury to Exclude
All Debts Incurred After Oct. 28 from Moratorium
Decree.
Ressians
Currency—Ru
Add Billion Rubles to Soviet
The following Sao Paulo cablegram Dec. 27 is from the
sort to Inflation When Money Sent to Provinces
York "Times":
ProNew
Exceed
ts
Goods—Expor
for
Return
Fails to
The decision of Secretary of the Treasury Whitaker yesterday to exclude
gram.
all debts incurred after Oct. 28 from moratorium decrees is seen as an aid
have reins, .1
Walter Duranty in advices Dec. 28 from Moscow to to business in Sao Paulo and Rio de Janiero. Large companies
credit for fear the new debts would be included in the moratorium ruling,.
the New York "Times" said:
Dec. 29 1930.
The financial side of the five-year plan has presented certain difficulties
during recent months, and in the opinion of some Soviet economists and
foreign investigators it is one of the most important factors, if not the key
factor, of the whole structure.
The difficulties arose from three causes—first, the failure to reduce
primary costs by the scheduled percentage; second, the failure of money
to flow back to the centre in exchange for goods after being sent to the
provinces to pay for crop and new construction work; third, (rather unusual and peculiar to the Soviet) a kind of uncertainty or doubt as to just
what are money's functions in a socialist State, and what its purpose and
why.
Cuts in Costs Short of Plan.
According to the program. primary costs were planned to be reduced
about 12% for the country as a whole, and it is reckoned that each 1%
represents 100,000,000 rubles. But in the fiscal year ending Sept. 30,
the second year of the five-year plan, the reduction in costs was only about
6% instead of 12%, which meant a shortage for the State of approximately
600,000,000 rubles. This was partly made up by an excess of revenue
over the estimates, but 500,000.000 rubles had to be supplied, at least
temporarily, by currency emission.
But it must be understood that this refers to the internal situation only.
Foreign trade is conducted wholly on a basis of imports being balanced
by exports, which worked out satisfactorily both in the last fiscal year
and the year before. The fall in commodity prices, however, forced the
Soviet to export a larger volume of goods between January and September
of this year than was originally intended, which reduced the supply available for internal consumption. Thus arose a second difficulty, that the
expected means of bringing back money sent out to the provinces did not
materialize.
In the months of July and October this year it became necessary to
Issue upward of one billion rubles in new currency, which involved raising
the amount of small treasury bills to equality with the amount of chervonetz rubles which are secured by 25% gold backing, whereas the treasury
bills have no such security.
In late October and November, by rigid economy the currency issue was
reduced some 400,000.000 rubles,and the total at present, about 4,250,000.000, coincides almost exactly with the five-year plan program for this date.
There has been much discussion, and it is continuing in the Soviet
economic press, as to the purpose of money in a socialist State—whether
a gold reserve Is necessary at all, and whether money is not a simple means
of exchange and not, as it becomes in capitalist States, a commodity
itself. The gold reserve at present is maintained, but in a series of articles
in Economic Life by a leading currency expert, Davchenko, it is stated:
"In the present transition period one may ask whether Soviet money
is wholly money or wholly not money, as the capitalist world understands
the word, or in part wholly money and in part wholly not money."
Davchenko adds, politely. "OR q u,tion may sound somewhat metaphysical, but it has real importan,e at the present juncture."
Bonds of Kingdom of Norway Drawn for Redemption.
The National City Bank of New York, as fiscal agent, has
notified holders of Kingdom of Norway 20-year 6% external
loan sinking fund gold bonds, due Aug. 1 1944, that $558,000
principal amount of the bonds have been selected for redemption at par on Feb. 1 1931. Bonds so selected will be
paid upon presentation and surrender, with subsequent
coupons attached, at the head office of the National City
Bank of New York,55 Wall Street, on and after Feb. 1 1931,
after which date interest on the bonds selected for redemption
will cease.
Fifth Drawing for Sinking Fund of Greek Government
Bonds.
Speyer & Co. and the National City Bank of New York
announce that the fifth drawing for the sinking fund of the
Greek Government 40-year 6% secured sinking fund gold
bonds (Stabilization and Refugee loan of 1928)) has taken
place and that the $61,500 bonds so drawn will be payable
on and after Feb. 1 1931 at par, at either of their offices.
Argentina Assumes Buenos Aires Loan—Nation Will
Repay $16,000,000 City Borrowed in July from
New York Bankers—Terms Forbid Renewal, but
Purchase of Dollars at Present Rates Would Cause
Heavy Losses.
From the New York "Times" we take the following
Buenos Aires cablegram Dec. 30:
Because Buenos Aires municipal authorities overlooked a clause of nonrenewability in a $16,000,000 loan arranged with New York bankers last
July, the National Government has undertaken to repay the loan and the
municipality will later repay the National Government.
In July the city discounted municipal treasury notes for 37,930,513
paper pesos with a group headed by the Chatham Phenix National Bank.
There was a difference of opinion in New York and Buenos Aires at the
time as to whether the bankers would place at the disposition of the Buenos
Aires authorities dollars equivalent to the value of the treasury notes at
par or at the rate of exchange then ruling. The bankers eventually placed
at the city's disposition $16,101,502, less expenses and commissions. This
was the par value of the treasury notes.
The municipality sold these dollars at the exchange rate of the day,
which was 119 Argentine gold pesos for every $100 and made a profit of
$2,277,654.
Buenos Aires newspapers express considerable surprise that, despite
the loan having been carefully studied by the City Council, no one seems
to have realized that its terms prohibited its being renewed.
The exchange rate for cable transfers of dollars to-day touched 142.80
for $100 and the municipality would have lost $6,082,632 if it had attempted
to buy dollars in New York to repay the loan. The arrangement with the
National Government enables the municipality to retain its profit on the
July transaction, which is being devoted to the construction of a big park
in front of the Retire, railway station.
Commenting on the above the "Times" said:
The news from Buenos Aires that the Argentine Government has arranged for payment of a loan of the City of Buenos Aires due here tomorrow refers to the issue of816,100,000 5% notes. Thisissue was marketed
here in July at par by a syndicate beaded by the Chatham Phenix Corp.
The present dullness of the market here for foreign loans precluded the refunding of the issue at this time.
1930 One of the Best Years for Real Estate Sales in
Buenos Aires Despite Depression.
It is stated in a Buenos Aires cablegram Dec. 28 that
despite the depressed business situation this has been one
of the best years on record for the sale of real estate in the
city of Buenos Aires, real estate transfers registered up to
Nov. 30 totaling 371,000,000 paper pesos (at par equivalent
to $157,526,000). The dispatch to the New York "Times"
also had the following to say:
Several big operations were effected along the new diagonal avenue
being cut through the heart of the business district, Including the purchase
of a site for the offices of the American Embassy, the consulate general, the
commercial attache and trade commissioners.
There has been a notable increase in home buying by former renters and
in the investment of idle funds in real estate. The auctioning of one suburban subdivision cut into small residence lots, which is soon to be connected
with the business district by the American-built subway,brought 12.000.000
pesos ($5,095,000) to the widow who sold it.
Gasoline Sales to Aid Argentine Road Work—Importers
Will Turn Over Price Rise Proceeds to Government
for Payment on Loan.
The Minister of Agriculture has officially informed Provisional President Uriburu of an agreement with gasoline
importers to increase the price 2 centavos a liter (a liter
equals 1.0567 quarts) and turn over this increase to the
Federal Government for a road fund. This arrangement is
JAN. 3 1931.]
FINANCIAL CHRONICLE
expected to produce 18,000,000 pesos ($7,643,000) in the
first year of its operation. A cablegram from Buenos Aires
Dec. 28 to the New York "Times" announcing this added:
The Minister of Agriculture proposes to use the proceeds of the price
increase on gasoline sales to pay the interest and to create a sinking fund
on a loan of 250.000,000 Pesos ($106,150.000), which is to be negotiated for
road work.
He estimates a 5% annual increase in the sales of gasoline, so that by
1955 the 2-centavo-a4iter increase in price will be producing 46,000.000
pesos ($19,532,000) annually, which would permit increasing the road
loan to 600,000,000 pesos ($254,760,000). It is proposed to pay 6% on
this loan, with a 1% annual service charge for the sinking fund.
With the proceeds of the loan it is proposed that the Government construct a vast network of hard-surface roads connecting with two main
trunk toll roads from Buenos Aires to Cordoba and from Buenos Aires
to Bahia Blanca, for which it recently invited bids.
53
The bill calls for the allocation of so-called "collecturias," or government
concession rights for the privilege of selling lottery tickets at wholesale
amounts and prices, to be given to the highest bidders at public auction
every year. The revenue will be used to meet the present shortage of
revenues as compared with the cost of operating the government.
The present system distributes these "collecturias" among the President
and members of Congress, who are at liberty to allocate them. Several
Senators and Representatives said that to-night they favored the new
measure and were ready to start a debate and to vote for it as soon as it
came up in Congress.
Asks Cuban Tax on Money Exports.
Under date of Dec. 30 a cablegram from Havana to the
New York "Times" said:
A bill levying a 10% government tax on all money exported from Cuba.
directly or indirectly, by individuals or corporations was introduced yesterday in the House by Representative Rodriguez Creme. The bill includes
moneys in the form of checks, drafts, money orders and bank notes sent
out or carried by individuals leaving the country.
Plans to Help Unemployment Conditions in Sao Paulo
and Rio de Janeiro—Laborers Will Be Sent to
Interior to Work Mines and Farms.
The following Sao Paulo cablegram Dec. 23 is from U. S. Investments in Guatemala Advance 150% Over
the New York "Times":
Pre-War Figures, According to Max Winkler.
The Provisional Government to-day began the enactment of a deoree
Guatemala's joining the revolting governments south cf
issued on Dec. 12 to populate the interior States with unemployed laborers
from Rio de Janiero and Sao Paulo. Three thousand homeless and desti- the Rio Grande is not likely to help the Republic obtain a
tute people have been sent to the immigration island awaiting medical loan in the American market, which it is reported to have
examination and vocational cataloguing preparatory to embarking for in- been seeking for the past
several months, according to Max
terior.
The Government plans continuing the movement, sending complete Winkler, of Bertron, Griscom & Co., Inc. Mr. Winkler
families and paying all expenses. During the recent prosperous years under date of Dec. 19 said:
laborers were unwilling to remain in the interior and migrated to the coast,
depleting many sections of labor to work the mines and farms.
American investments in Guatemala have advanced from $20,000,000
in 1913 to about 350.700,000 at the beginning of this year, an increase of
153.50%. Of the total, $5,065,000 is invested in Guatemalan government
bonds. Railroad investments account for $32,250,000, of which InterPremier Mironescu Seeks Rumanian Loan.
national Railways of Central America represent the bulk. American-owned
public utility enterprises include subsidiaries of the American & Foreign
Bucharest Associated Press accounts Dec. 27 stated:
Premier G. G. Mironescu will leave to-morrow for Paris to resume ne- Power Co. and the International Telephone & Telegraph, approximating
$2.500,000. Petroleum and mining industries controlled by U. S. capital
gotiations for a foreign loan to Rumania, it was reported to-night.
From Paris he will go to the French Riviera for what is reported to be account for $5,635,000 and include, inter alia, the Guatemala Marble &
an important conference with former Premier Julius Maniu and Nicolas Granite Co.; the Alotepeque Mines; the Guatemala Gold Dredging Co.;
Titulescu, Rumanian Minister at London, on the parliamentary situation the Guatemala Mining Co.; the Sinclair interests; the Perpetual Petroleum
resulting from the death of the Liberal former Premier Vintila Bratianu. Corp., and the Guatemala Syndicate, controlled by Inter-Continents
Petroleum. The balance of $5,250,000 is made up chiefly of investments
by the United Fruit Co. and several minor undertakings, including the
Venezuelan Financial Situation Reviewed by A. Guatemala Agricultural Co.; Novella Cement; New York Engineering. and
Iselin & Co.—Republic Expected to Have No United Coffee Mills & Warehouses.
Of the Republic's foreign commerce, the United States accounts for well
Funded Debt Outstanding Shortly—Only South over 50%. In 1929,
we sold to Guatemala $11,500,000 worth of merAmerican Nation Which Has Floated No U.S. Loan. chandise, while our purchases from Guatemala aggregated $8.500,000, a
total of$20,000,000 as compared with $8,976,000 in 1913,8 gain of 122.81%.
Reviewing the financial and economic situation in Vene- The country's trade with the United States shows a balance
in favor of
zuela, A. Iselin & Co., in their current Latin American Guatemala amounting to $3,000.000. equivalent to 5.91% on our investments in the country.
bulletin, express the opinion that the
Republic will shortly
be in the unique position of having no funded obligations
outstanding, either internal or external, provision having Decree Issued for Support of Argentine Peso—New
been recently made to pay off the last of the outstanding
York Bank Is Excluded from Further Negotiations
bonds of the foreign debt. The report points out that the
with Nation for Loans.
country should pass through the present depression without
Under the above head the New York "Hearald Tribune"
loss of National credit standing because of its sound debt published the following United Press advices from Buenos
policy and the present political stability. Present conditions Aires Jan. 1:
should be of particular interest to the American investor
The Government to-day made public the decree authorizing the Bank
as the trade relations between the United States and Vene- of the Nation to utilize gold conversion funds abroad to bolster the paper
peso.
The same decree also authorized coverage of the municipal Governzuela are especially close, the United States having a large
ment's indebtedness of 316,101.502 to the Chatham Phenix Bank of New
participation in the foreign trade of that country.
York with part of the gold deposited abroad, which, it is understood, totals
Venezuela claims attention for several reasons, the bankers 30,000,000 gold pesos.
The decree excludes the Chatham Phenix Bank and its representative in
analysis says, principally because it is, with one exception, this
country, Senor D. J. M.de Acosta,from any future negotiation whatthe only South American nation that has not floated a public ever with the Argentine Government," and directs a note to the municipal
loan in the United States and without exception the only Government of the capital and to the national interventors in the provinces
the end that they proceed in an equal sense.
country that has not endeavored to float one, having bor- to The
Government's action against the Chatham Phenix Bank followed rerowed no money for the last 21 years. It stands third among fusal by the bank to extend the loan, which was due Jan. 1 1931.
The Government charged that the bank refused to renew the loan, althe South American countries in the volume of direct investthe bankers had previously agreed to a renewal of the loan. (New
ments made by Americans in industry and business. The though
York bank officials declared yesterday that the loan agreement contained the
country now holds second place among the world's greatest provision that renewal of the loan was dependent on mutually acceptable
producers of oil and while the returns of the petroleum terms and conditions. It was explained that stagnation in the bond market
New York prevented the refunding of the loan).
industry are not as attractive as they have been during In Mayor
Guerrico, of Buenos Aires, issued a lengthy statement regarding
recent years, the struggle for the international control of the loan to-day to the effect that the terms of the loan contract authorized
an extension.
new fields continues without abatement.
referred to agreed to purchase from the municipality
"The
bankers
16.101,502.67 American gold dollars' worth of six months'treasury bills, dated
July 1 1930, bearing 5% interest, issue price 99 1-5. The municipality
obliged itself to sell to the bankers, and the latter to buy part or all of the
long-term bonds authorized in legislation when the market for such operaThe Republic of Cuba, for the first time on record, is shipping gold here tions became more favorable, and those which might be authorized durto meet interest due on its bonds. A shipment of $1,650.000 of the metal ing the period of the loan, at 94. The bonds were to be 33 years' duration
is due here to-morrow on El Salvador of the Panama Mail Line, consigned at 6%.
to the Chase National Bank from its Havana office.
"The contract submitted to the City Council provided for renewal of the
Cuba has a semi-annual interest payment to meet on Dec. 31 on an loan in event the bankers did not take up the long term bonds. This condiissue of $40,000,000 5s,due in 1945, and another on Jan. 1 on an issue tion was expressly incorporated in order 4,055 authorizing the operation."
of 53s of 1927 now outstanding to an amount less than $8.000,000.
The Mayor declared that former Mayor Cantflo In a message sent to the
No imports or exports of gold were reported here yesterday by the Federal Collheil Sept. 1 1930, stated that the notes dated July 1 1930. expiring
Reserve Bank and there was no change in the gold earmarked here for Jan. 1 1931, were renewable for further periods in event the municipality did not cover the obligation at the latter date.
foreign account.
In view of these circumstances, Mayor Guerrico declared,the bankers not
di. the "present Mayor notified the syndiWould Revise Cuban Lotteries—Government Hopes to having taken up the long termtoben
renew the loan until July 1 1931.
cate Dec. 11 of his intention
to Bring in $10,000,000 in New Revenues.
statement
continued, "the bankers commuthe
surprise."
"To his great
to offer conditions for renewal of the loan."
From Havana, the New York "Times" reports the follow- nicated they were unable
The statement then pointed out that Mayor Guerrico then notified the proing under date of Dec. 30:
visional Government of the situation and it was decided to pay the notes
Substantial modifications in the law regulating the functioning of the punctually, "the delivery of the necessary funds being made to-day in New
Cuban National lottery devised to produce approximately $10,000,000 York in gold, a formal protest being lodged simultaneously against the
annually in government revenue will be introduced in the Senate this week. bankers' action."
Cuba For First Time Sends Gold to Pay Bond Interest.
The following is from the New York "Times" of Dec. 28:
54
FINANCIAL CHRONICLE
[VOL. 132.
Negotiations for the loan were concluded yesterdy when a contract was
signed by the Secretary to Finance Minister Luis Montes de Oca and William
ComTrust
&
Bank
A high official of the Chatham Phenix National
n, Manager of the local branch of National City.
of Buenos B. Richardso
pany said last night that the contract under which the City
The amount involved is $15,000,000 for two years at 4%. It will be
duplicity. The
no
involved
July
last
00
a
of
loan
$16,000,0
obtained
Aires
d by gold deposits.
approved guarantee
contract, he said, was drawn up by a prominent lawyer and was
It is reported that an option has been given the Mexican Government
by a well-known law firm.
beyond
draw
$15,000,000 should this be necessary, although no mention is
to
Bank would reply
placed. It is stated that the agreement carries with it
In due time, this banker said, the Chatham Phenix
limit
the
of
made
Buenos Aires
to the Argentine Government. He said the authorities of
ramifications relative to Mexico's foreign credit dealing with the
certain
to
unable
be
were notified in November that the banking group would
International Committtee of Bankers on Mexico which will react to the
bond market.
renew the loan because of unfavorable conditions in the
benefit of Mexican finance.
12%
The silver peso rallied considerably during the day, closing at
discount, the greatest value it has reached since the slump three months
York
New
in
n
missio
on—Com
Positi
Bolivia's Financial
low mark of 20% discount.
Interest ago, when it reached the
From the New York "Times" we take the following:
Endeavoring to Arrange for Payment of
A reference to the reports of the proposed credit appeared
on External Bonds.
in these columns last week, page 4132.
Carlos
The Financial Commission of Bolivia, composed of
which
s,
Argueda
Arturo
J.
and
Aramayo, Alberto Palacios
Australian Conversion Loan Oversubscribed.
to make
has been in New York since Dec. 12 endeavoring
's
Press dispatches from Sydney, Australia, Dec. 24, stated
arrangements for taking care of interest on the Republic
final figures show the Commonwealth of Australia cash
1:
that
Jan.
on
nt
stateme
g
external bonds, issued the followin
general
ion loan of $140,000,000 oversubscribed by $8,751,the
n,
convers
depressio
"Owing to the current world-wide business
revenues pledged to secure 400. The accounts added:
revenues of the Republic of Bolivia and the
such an extent that the Re•Of total subscribed $94.594,000 represented cash applications and $54,its bonds have been temporarily reduced to
payment which
the interest
public is not in a position at this time to meet
the 1927 External 7% bonds.
became due on Jan. 1 1931 to the holders of
York is endeavoring to
New
in
now
"The special financial commission
external bonds of the Remake arrangements whereby the interest on the
public can be taken care of.
bondholders as soon as any
"A further statement will be issued to the
, the Commission
definite arrangements have been made. In the meantime
of the Republic of Bolivia
wishes it to be known that it is the intention
has always done in the
to fulfill its obligations fully and absolutely as it
past.
on its bonds at this
"The inability of the Republic to pay the interest
unprecedented fall in the value of
time has been occasioned solely by the
reduction in the price of tin and
the national exports and by an unusual
a large percentage of its
other metals, from which the Republic derives
revenues through taxation.
to resume payments of
"The Commission trusts that it will be possible
n of payments must
Interest in the near future, but any such resumptio
business conditions and in the
depend upon the improvement in the general
of interest
payments
the
of
n
metal market in particular. The resumptio
of a plan on which the
may, however, be hastened by the completion
Commission is now working."
was the large
157,000 conversions. A feature of the success of the loan
number of small subscriptions.
The amount oversubscribed can only be used for redemption of Commonwealth State securities.
From advices Dec. 23 from Canberra, Australia, to the
New York "Times" we took the following:
was invested in a
There were 117,000 subscribers. Of the total sum 85%
in cash was re6% loan maturing in two years. The sum of $95,000,000
ceived from 103,000 subscribers.
if all pull toJ. E. Fenton, Acting Premier, said he was "hopeful that
n and enjoy the
gether we will come out of the black clouds of depressio
sunlight of prosperity."
The loan was referred to in our issue of Dec.20, page 3966.
From Washington accounts Dec. 23 to the New York
"Journal of Commerce" we take the following:
n CommonDetails of the conversion and cash loan to meet Australia
to the Dewealth and State loans of L'28,000,000 have been communicated
of Sydney,
Treadwell
C.
Roger
General
Consul
partment of Commerce by
it was announced yesterday.
the 6% loan falling due on
The loans mature next month. Holders of
ntor
at par and are given the alInterve
nment
Dec. 15 are invited to convert into a new loan
Brazil to Buy Surplus Coffee—Gover
of interest, namely,6% for
000 Bags in ternative of three currencies with varying rates
Says Country to Purchase 22,000,
years, the respective issues
two years, 6(% for 10 years and 53,5% for 20
on on the same
Stock.
to mature on Dec. 15 1932, 1940 and 1950. Cash subscripti
redemption of Commonthe
used for
be
to
proceeds
the
the
for,
take
asked
we
are
2
terms
Jan.
of
"
From the "Wall Street Journal
date of closing the loans
wealth and State securities. No fixed amount or
following (United Press) from Rio de Janeiro:
are stipulated.
Commonwealth
the Federal interThe customary provisions attaching to flotations of
The 0 Jornal correspondent at Sao Paulo said that
nt's intention of loans are stated. From Dec. 15 1930, interest on the loan will be paid half
ventor, Colonel Joao Alberto, has announced the Governme
in the Paulista yearly on June 15 and Dec. 15. Cash subscribers will receive interest at
aiding coffee producers by buying "all stocks presently held
of the money to
the relative rate calculated from the date of lodgment Commoonwealth
warehouses—about 22,000.000 bags."
existing
or was quoted as
Dec. 15 1930. It Is provided that, as with the
"The stocks will be paid for with cash," the intervent
10
will be free of
stocks
but
into
the
loans, interest will be subject to Commonwealth taxation,
saying. "The Federal Government expects to divide
Defense Institute to State income tax. Sinking fund contributions will be paid into the national
equal parts for transfer under direction of the Coffee
undertaken and commercial debt sinking fund, in accordance with the requirements of Commonwealth
coffee growers. Propaganda abroad will be
and reduce duties on coffee. law. The issue is an investment authorized by the trustee acts of the varitreaties will be sought to in.:rease coffee sales
take an1 thereafter ous States.
"These are the only measures the Government will
currencies in the press."
The recession of interest rates with the lenthenlng
the growers must take care of themselve
fall from the
loan indicates a belief that interest rates will tend to
ent
said:
quote,
we
which
from
paper
the
loans.
In its comments,
present level, the highest yet paid on Commonwealth
s,
warehouse
Paulo
Sao
in
held
coffee
of
Of the current 22,306.000 bags
including Minas Geraes
according to the official report of Nov. 30 1930,
for the $97.330,000 credit
r
stocks, 16,500.000 were pledged as security
stocks were to be Special Session of Mexican Congress to Conside
These
given by a world banking syndicate last April.
yearly.
bags
ent.
of
rate
1,650,000
Agreem
the
at
Debt
Lamont
liquidated over a 10-year period
the interior of the last year's
Owing to the heavy coffee movement from
advices as follows from Mexico City Dec.
Press
United
30 1930 when the
on
June
were
they
than
larger
now
are
crop, stocks
31 are taken from the New York "Herald-Tribune":
liquidation plan first went into effect.
entails purchase of about 5,500.000
Plan of the Government, therefore,
A special session of Congress will be called in March to consider ratifithere is in addition the difficulty of cation of the Mexican debt agreement prepared by Thomas Lamont and
bags of surplus coffee. However,
purchase.
de Oca, it was understood today. Congress adjourned
securing additional credit to finance the new
per year is slightly Luis Montes
Average world consumption of Sao Paulo coffee
yesterday, and ordinarily would not convene until tue next regular seshas
years
six
past
the
over
n
sion, on Sept. 1.
under 10.000.000 bags. Average productio
The final session of Congress approved a decree which will make the
been 12,500.000 bags.
normal requirethe
over
producing
also
are
Brazil
in
and southern districts of Lower California two separate terriOther coffee regions
northern
entire
the
for
0 bags
tories if approved by a majority of the State legislatures.
ments. A large crop, estimated at close to 32,000,00
ion
of
consumpt
world
year's
largest
world, or 7.000,000 bags above the
market on July 1 1931..
25,000.000 bags, will be ready for
Inquiry into Federal Farm Loan Board and Federal
abiliLand Banks Sought.
National City Grants Mexico 15 Million Loan—St
Foreign Exzation of Currency and Regulation of
Describling the Federal Land Bank system as "the greatchange Planned.
est political machine in the country," Representative Henry
30 appeared in the
The following from Mexico City Dec.
M. Rainey (Dem.), Illinois, announced on Dec. 29 his inten31:
Dec.
of
"
Tribune
"Herald
tion to seek a Congressional investigation into affairs of the
New York
concluded an agreement with the
The Mexican Government has just
Federal Farm Loan Board and the Land Banks and associion
of
the
co-operat
virtue f which
National City Bank of New York by
been obtained to stabilize Mexican ations throughout the United States, according to Washingthis important institution of credit has
foreign exchange,it was announced
currency and help regulate the country's
ton advices Dec.29 to the New York "Journal of Commerce,"•
to-day by the Ministry of Finance.
aggregates 30,000.000 pesos, which also had the following to say:
available
made
be
to
presently
"The amount
but with the privilege of a
guaranteed in gold, payable in six months,
ment said. "The sale of excaange
two-year extension," an official announce
by a regulating commission
by the National City Bank will be managed
Lorenzo Hernandez, Treascreated by a decree of even date consisting of
Ministry of Finance; Manuel
urer of the Nation and representing the
on, and Luciano Wiechers,
Gomez, of the National Banking Commissi
Vice-President of the Bank of Mexico.
arrangements in order
"The Ministry of Finance is negotiating for other
pesos, destined to
to bring up the regulation funds of currency of 45,000,000
said commission.
stabilize gold and silver currency through the medium of
regulations which
The issuance of drafts will be subject to special rules and
d in due
will be drawn up by the commission and which will be announce
time."
soon as
Rainey said he would offer a resolution proposing the inquiry as
Congress reconvenes next week.
nal
The Illinois member, who has been the most outspoken Congressio
system should
critic of the Federal Land Bank system, declared the entire
to
d
empowere
is
be placed under Civil Service. The President, he said,
do this.
in the
"The Federal Land Bank system is the greatest political machine
d for the
country," he said. "At least 100,000 people can be commande
s, attorpurposes of the Board, including the treasurers of local association
neys who examined abstracts, some of the directors and other employees.
civil
under
service.
'President Hoover has power to put the entire system
This should be done."
JAN. 3 1931.]
FINANCIAL CHRONICLE
Rainey has little hope of obtaining an investigation in the present short
session of Congress, but believes he will in the next session when control
will be closely divided between Republicans and Democrats. Ile said he
would push his bill for assuming control of all Land Banks by the Government and also the control of the Joint Stock Land Banks.
Chairman Legge of Federal Farm Board Says Action May
Be Taken to Eliminate Short Selling—Responds to
Statement by P. B. Carey of Chicago Board of Trade
that Further Federal Restrictions Might Cause Exchange to Close.
A prediction that eventually short selling may be eliminated was made on Dec. 31, by Chairman Legge of the
Federal Farm Board, according to Associated Press accounts from Washington. As given in the New York
"World" this account went on to say:
Responding to a statement by Peter B. Carey, a Vice President of the
Chicago Board of Trade, in which that Exchange was aligned with others
in outspoken opposition to Farm Board operations, Legge called for
further Federal regulation of the exchanges.
The chairman considered it improbable that further governmental regulation might cause the exchange to close its doors.
Restriction of short selling was Legge's expressed desire. He added
however, that he believes restrictive measures could not be enforced and
that they would not be an effectual damper upon market manipulation.
In view of this, he suggested eventual prohibition of short selling.
The Chairman said that "properly regulated" the grain exchanges had
a useful function. He proposed that their rules and regulations be
limited to those approved by the Secretary of Agriculture.
"The exchanges," he said, "should not be permitted to establish their
own rules, which obviously are to the interest of the traders rather than
to the producer or consumer, except as approved by the Secretary of
Agriculture."
Legge added he believed the Secretary agreed with him.
If the Board of Trade had to close, Legge said, he was confident a
substitute would be found. He said live stock with a volume in dollars
and cents much larger than wheat was handled in Chicago yards. Grain
could also be sold "over the counter," he added.
Trading on a basis of eliminated short selling, he said, would probably result in the trading of about four times the actual grain that is
handled instead of the trading of twenty times the actual grain under
short selling methods. The trading of from three to four times the
actual grain the chairman said, would be done by the elevators, the miller,
and warehouseman, who, with others, want legitimate hedges on their
wheat.
The further restrictions desirable, he said, would involve a consolidation of the administration of the three different laws affecting trading.
These laws are the Federal Grain Inspection Act, the Warehouse Act
and the Grain Futures Act. Each of these was enacted at a different
time and has a different division for administration. Legge said such a
consolidation would probably be welcomed by the Board of Trade and
traders generally.
Questioned further, he replied that one of the purposes of the Agricultural Marketing Act was to limit speculative trading.
"If we succeeded in eliminating the exchange without legislation it
would go down in history as some achievement, wouldn't it?" he asked.
Legge said lie did not believe Carey's statement "represented any well.
considered policy or program of the board."
Questioned further, he answered "my guess would be that Carey had a
bad day or else woke up with a headache or something." He also termed
the Carey statement as a "petulant expression."
The Chairman said he believed there was no difference of opinion
between himself and Secretary Hyde on the proposal to consolidate
various laws respecting trading. He pointed out that traders have "done
a lot of loud talking" because the Farm Board stayed out of the corn
market and they claimed, Legge added, the corn market was stronger as
a result.
At the time that contention was made, Legge said, the price of corn
was just above the price of wheat. Now, he added, corn is 12 cents a
bushel below wheat.
"They have a good time with corn," he said.
As to Mr. Carey's assertions, Associated Press advices
from Chicago on Dec. 30 stated:
55
Plans for Formation of Private Wheat Corporation in Canada announced by Premier Bennett—Dominion Not
to Peg Price.
Associated Press advices from Regina (Sask.) Dec. 31,
stated:
Creation of a private corporation that will use its capital of $5,000,000
as a revolving fund to make loans to farmers has been announced by
Premier R. B. Bennett.
The shareholders will be banks, transportation companies, industrial
firms, insurance organizations and mortgage companies.
He said the Dominion Government would make no effort to fix wheat
prices, as that was within the jurisdiction of the provinces. A price
fixed in excess of the world price would be unwise, he pointed out, because
Canada could not hope to absorb her surplus wheat by domestic'consumption.
Word had been received, he added, that France would guarantee to buy
between 7,000,000 and 9,500,000 bushels of the 1930 Canadian wheat
crop.
H. H. Mailer, Canadian Minister to Japan, now is on his way to
Regina to negotiate for the purchase of millions of bushels of Canadian
wheat by the Chinese Government, Mr. Bennett said, adding that the
Canadian Government is prepared to provide credit facilities for (Drina.
In its December 31 issue the "Wall Street Journal"
reported the following from Winnipeg:
Canada will take no steps to fix the price of wheat or take any action
on the lines which the Stabilization Corporation is conducting in the
old crop deliveries at Chicago, Premier Richard B. Bennett told prairie
farmers in an address at Regina. That, he said, rests with the provinces,
being in their jurisdiction. However, he announces the formation of a
colossal corporation to assist Canadian farmers, who are suffering from
unprecedented low wheat prices and a partial crop failure.
"It would be unwise in soy judgment, apart from legal considerations
to fix or attempt to fix a price for wheat in excess of world price levels,"
the Dominion premier stated, "because Canada, unlike the United States,
cannot hope to absorb her surplus wheat in domestic consumption."
However, the Federal government has taken measures in this national
emergency, he explained, through the extension of credit facilities and
by other means to prevent the forced liquidation of the 1930 crop. He
did not, he added, think it in the public interest to discuss the details,
but stressed the point that it was an emergency measure. He said that
it was sufficient, in his opinion, to state that immediate effect is being
given to undertaking.
Banks, Railroads to Share in Corporation.
The formation of a private financial corporation to assist the farmers
is the crux of the Premier's constructive program. Shareholders in this
new adventure in agrarian economics, which will have all the functions
of a private body, will be the banks of Canada, the transportation companies, industrial concerns and mortgage and insurance companies. It
will be an adequate aggregation of capital and will function as a revolving
fund from which cash will be advanced farmers as temporary loans to
tide them over the present depression. Terms of the various propositions
advanced by the Canadian premier are as follows:
1. Creation of a private corporation to lend money to assist farmers
in getting into mixed farming.
2. Assistance for the provincial governments in providing free food,
clothing and seed grain for needy farmers.
3. Credit arrangements to prevent forced selling of the 1930 crop.
4. Guarantee of the French government to purchase 7,000,000 to
9,500,000 bushels of the 1930 wheat crop.
5. Opening of negotiations with the Chinese government for the sale
of Canadian wheat in China.
Cites Importance of Oriental Market.
In addition, Premier Bennett said that the Federal government would
offer the provincial governments their whole hearted and immediate support in their efforts to aid farmers in this period of stress and would see
that plenty of good seed is supplied the agrarians of all Canada in the
spring.
Enlarging on the Chinese negotiations, the Premier stated that large
quantities of Canadian wheat are expected to be marketed in China and
to that end the government has prepared adequate credits to the Oriental
nation with a view of opening up that valuable trade channel.
In concluding his announcements, Premier Bennett stated that the
Crows Nest Pass rates will apply on the Hudson Bay Road to the
Churchill port. That means that the present rates in effect through the
West apply to the new port. This had been one of the problems of the
western transportation situation.
A warning that further Federal restrictions on grain speculation might
cause the Chicago Board of Trade to close its doors was given today by
We also quote the following (Associated Press) from
Peter B. Carey, a vice president, who said that the directors had conWinnipeg, Dec. 31:
sidered such action.
Some disappointment was expressed today at plans outlined by Premier
"We might as well; few traders are doing any business; the governBennett for relief of Western farmers.
ment agencies are doing most of the trading," Mr. Carey said today.
George H. Williams, President of the Saskatchewan section of the
In seventy-five years, trading has not been stopped. During the World
War free trading was suspended, but the pit operated to get wheat for United Farmers of Canada, declared he could find little in it of promise
to the farmer except the guarantee of equitable Hudson Bay railway
Europe.
"It's time we fight back at those who have tried to make the Board of rates and an implication that the Dominion Government would assist in
finding
seed for next year.
Trade the goat in this farm relief business," Mr. Carey said. "We've
Premier John Bracken of Manitoba declared the address would be
gone along with the Farm Board, given the move support and kept still
when Secretary of Agriculture Hyde introduced his Russian 'menace' "very heartening to many distressed farmers," but expressed his personal
disappointment that Premier Bennett had not seen fit to fix a minimum
and Chairman Legge of the Farm Board found so
much fault with
our practices. I don't think we ought to keep still any longer, nor do price on wheat.
He said he considered the Premier's plan to create an agricultural
most of the traders."
corporation as "sound." The offer to cooperate with provincial governHe went on:
"Now they talk about further restrictions on grain trading, virtually ments in providing free food, clothing and seed grain for needy farmers,
turning the business over to the Secretary of Agriculture, as if restric- he said, would be "readily accepted and appreciated."
tions will help the farmer. He is better off when trading is unrestricted."
In a Washington dispatch Dec. 30, the Associated Press
stated that Chairman Legge expressed pleasure that Mr.
Carey had "come out in the open" against the Farm
Board, and recommended further Federal restriction of
grain trading.
Only a little more opposition from men in Mr. Carey's
position, the Chairman was reported as saying was required "to insure the much needed Congressional attention."
Winnipeg Farm Group Split on "Dollar Wheat"—Now
Oppose Alberta Farmers on Proposal.
From Winnipeg, Man., Dec. 28, the New York "Times"
reported the following Canadian Press advices:
The solid front of farm bodies of the West in demanding "dollar
wheat" has been broken. Manitoba's farm organization was definitely
on record tonight as opposing "pegged" prices. This leaves the United
Farmers of Alberta and the United Farmers of Canada, Saskatchewan
section, in favor of wheat prices stabilized at cost of production.
When the three units, representing some 40,000 prairie farmers, met
at Saskatoon a month ago, they were in apparent accord on the matter
56
FINANCIAL CHRONICLE
[VOL. 132.
The same condition exists with the dealer in grain who warehouses or
stores stocks to be merchandised from time to time as the wheat is
required for use.
Hedging Op.:rations Aid Co-operatives.
co-operative marketing associations in wheat and cotton are agencies
Futures Trading by Co-operative Units Defended by setThe
up by farmers to market their products in competition with private
Chairman Legge of Federal Farm Board—Holds merchants. In order to compete for business on even terms, these co-operaInfluof
Means
tives
must be in position to give the same services and enjoy the same
Practical
Such Operations Most
found it necessary
encing Cash Prices—Replies to Inquiry by Senate advantages as a private merchant. To do this they have
to make use of existing marketing facilities, of which, under existing
Committee.
conditions, futures trading operations are an integral part. Resort to hedgThe co-operative marketing associations, to compete with ing operations, in so far as they find it possible and desirable to do so,
greatly reduces their problem of financing their operations. In the past
business on even terms, must be in a position to give the :•ix months, when wheat prices have been almost constantly declining, the
same services and enjoy the same advantages as a private Farmers' National Grain Corp. would have suffered disastrously heavy
losses if it had not hedged its wheat supplies. The Board has not deemed
merchant, and in order to do this they have found it neces- It
wise to insist that co-operatives should abandon these practices; on
sary to make use of existing marketing facilities, of which the contrary, the Board is of the opinion that, under present conditions,
Alexander
appropriate
use of the futures market by the co-operatives is essential
part,
integral
an
operations
is
future trading
to their successful operation and is even a means of minimizing speculation.
Legge, Chairman of the Federal Farm Board, and James C.
As a result of the close relationships between cash and futures markets,
Stone, Vice-Chairman, declared in a letter to Senator Mc- everybody dealing in the commodity, co-operatives, millers and warehouses
Nary (Rep.), of Oregon, Chairman of the Senate Agricul- alike, is interested in the maintenance of what is called a parity between
spot cash prices and the future delivery price. For instance, in Mr.
ture Committee, made public Dec. 27. According to the Smith's case, if when he came to make the flour sale the price of cash
"United States Daily" of Dec. 29 the letter was written, wheat had declined 100. a bushel and the future contract only Sc., he would
Senator McNary explained, in reply to a request from the be able to recover on the sale of his contract only one-half of what he
lost on the decline in the value of the cash wheat.
Committee as to why such activities were necessary. We
The natural result of all this is that the dealers in grain, the co-operatives as well as all others, are constantly interested in the maintenance of
quote further from the "United States Daily" as follows:
and their business operations are seriously disturbed when some
When the Grain Stabilization Corp. first started last winter to operate this parity
create abnormal disparities between cash and futures prices.
In cash wheat only, the letter said, the result was that this cash price outside forces
became out of line with the futures contract market.
Unable to Maintain Balanced Position.
"The natural result of all this is that business operations are seriously
When the Grain Stabilization Corp. first started last winter to operate
disturbed when some outside forces create abnormal disparities between in cash wheat only, the result was that this cash price became out of
cash and future prices," the letter stated.
line, as the traders call it, with the future contract market. Millers, we
The only alternative to the Stabilization Corp. dealing in futures, the will say, who had bought wheat in the fall and sold a March hedge, when
letter said, would be to assume the burden of a much greater portion of March arrived found themselves with the wheat still on hand and no
the market supply. In the current stabilization operations it is simpler and flour sales against it were unable to transfer their contracts from March
more economical to influence cash prices by supporting purchases of to May without loss. In other words, they were unable to maintain their
futures.
balanced position and were in trouble with the banks financing them as
The letter, signed by Alexander Legge, as Chairman, and James C. Stone, to their position in the market, and we were faced with a storm of protest
as Vice-Chairman of the Federal Farm Board, follows in full text:
by
the processes on this account. The tendency was for all of them to stop
Dear senator: Complying with your request for a statement as to why carrying their normal stocks and unload the whole burden of the supply
it is necessary for the co-operative organizations as well as stabilization on the Stabilization Corp., their position being that as they couldn't hedge
corporations to use the futures market, we wish to submit the following:
their wheat they were not able to borrow money for their normal operations
and could not carry that percentage of the available supply that they
Storage Becomes Necessary.
would normally carry.
In the early days of the milling industry in this country mills were
Briefly, this is the reason that forced the Board to the conclusion that
usually of small capacity, built mainly to serve local communities, and
the Grain Stabilization Corp. must operate in both cash and futures
wheat was bought from nearby farms and the flour for the most part was
markets to be able to handle the situation. The only alternative would
disposed of locally. As time went on and the tendency of the milling
be for the Stabilization Corp. to assume the burden of a much greater porindustry and industry generally was to develop into larger units, and with
tion of the market supply. This might easily result in tying up, in grain
the improvement in transportation facilities and the concentration of
an amount exceeding the entire revolving fund authorized
population more and more into large cities, it became necessary for these operations alone,
by •the Agricultural Marketing Act.
larger mills to provide storage and operate on a larger basis.
In the current wheat stabilization operations it is simpler and more
For a time they continued on a basis of simply buying the grain when
economical to influence cash wheat prices over wide areas by supporting
they thought the market conditions were favorable and carrying the hazard
of futures in addition to purchases of cash wheat in terminal
incident to fluctuations in the market themselves. It frequently happens purchases
markets.
that because of sharp declines in market prices the millers were faced
While the position with respect to cotton is somewhat different the same
with serious financial embarrassment. Out of this condition grew the
general principles apply. The object of the Board is to improve the
futures trading practice where the speculative buyer stepped in and carried
condition of the producers of agricultural commodities; but we do not
at least a large percentage of this risk. The speculative trader took the
believe that we can accomplish this by actions that would completely
chance of profit or loss in market fluctuations, an arrangement which
upset long-established marketing machinery, for this would react disaspermitted the miller to operate on his normal profit for the service pertrously
upon the producers unless the Board were in a position to carry
formed. This has been the practice of the trade for over 70 years.
the entire burden, which it is not.
Private Warehouses Filled.
Please do not consider this as a recommendation on our part in support
The financing of grain purchases was based on the elimination of price of the present system of future trading. But we have to recognize that
hazards so far as the millers were concerned to such an extent that bankers it is the system that has been built up over a period of 70 years on which
hesitate to finance the purchase of grain that is not covered by futures practically all wheat or cotton is handled, both for domestic use and for
export, and it is our conclusion that under existing conditions, co-operacontracts on the exchanges.
Probably about 70% of the average wheat crop produced in recent tive marketing associations and stabilization corporations must, in approyears is processed by American millers, most of whom have a certain amount priate practical ways, deal in futures as well as in spot wheat or cotton.
of storage facilities of their own. These run from comparatively small
amounts up to, I believe, as high as 40% of the season's requirements on
the part of some of the millers. During the heavy crop-moving period Work of Farmers in Setting Up Co-Operative Machinery
their practice is to fill up these privately-owned warehouses, so far as
to Market Crops Produced Described by Federal
possible selecting wheat of the particular grade most suitable for each
Farm Board.
mill's flour output
Let us say that Mr. Smith, a miller, puts 1,000,000 bushels of wheat
What farmers are doing with Goverment assistance to
wheat
in his elevator during the heavy crop-moving period of July. This
set up co-operative machinery, owned and controlled by
is bought for the purpose of manufacture and sale later in the form of
flour, but the flour isn't sold at the time the wheat is purchased. Later themselves, to market in their interest the crops they proon in bidding for contracts for the flour, Mr. Smith has to compete with duce, is described in a bulletin issued Dec. 23 by the Federal
hundreds of other mills, and in the event of a decline in price as between Farm Board. This new publication,
Bulletin No. 3, enthe time the wheat was bought and the flour sale was made, he would not
be in position to compete with some other miller who might buy his wheat titled "Farmers Build Their Marketing Machinery," exat the lower price on the date on which they were competing for this plains the national program of commodity co-operative
order of flour. To protect himself against such a contingency, on purchas- marketing being developed under the Agricultural Marketing
ing his wneat Mr. Smith immediately sells on the futures market an
gives detailed information of the progress made to
amount of wheat equal to that which he put in store. This is what is Act;
Dec. 1 1930, and tells how the individual farmer may parcalled maintaining an even position.
ticipate in the program and what benefits will come to him
Futures Profit Makes Up Loss in Spot Wheat.
Say he put this wheat in at 90c. a buehel and later on when he came from such participation. Maps and charts are used to show
procedure
he
Under
this
would
80c.
to sell the flour the wheat market was
how the various commodity co-operatives operate and the
still be able to compete with the miller who might buy at 80c., because
territory they serve. Describing the booklet the Farm
when
storage,
he
in
makes
put
wheat
he
the
while he would lose 10c. on
the flour sale he immediately closes his futures contract by buying a future, Board says:
thus making up in the profit on the future the loss on the spot wheat
The bulletin emphasizes that the marketing activities of co-operative
at the time the flour was sold.
associations handling a particular commodity are being centralized in a
way
other
the
the
miller
went
It is, of course, true that if the market
single co-operative sales agency. The territory covered by the central
who carried what is called an open position, that is, did not hedge his agency depends upon the commodity to be marketed, and may be local,
wheat, would have an additional profit on the transaction. However, regional or national in scope. All are built from the local association up
there have been so many calamities in the past in cases of people who and not from the top, or central agency, down. The services of all cotried to operate on this open position as against the general practice of operatives receiving financial assistance from the Board are open to all
keeping their position hedged, that bankers who finance these wheat farmers on an equitable basis. Once a central co-operative sales agency
purchases are very much averse to loaning money on wheat not protected Is recognized, the Board has established the policy of extending aid through
by hedges. In fact, I believe that many of them decline to make loans the central rather than dealing with the individual associations handling
to customers who undertake to maintain an open position on the market.
that particular commodity.
of a government-guaranteed price of $1 a bushel to the grower for No.
1 Northern. The Alberta body asked $1.15 at the lake-head, equivalent
to the Saskatchewan organization's plea for $1 at delivery point.
JAN. 3 1931.]
FINANCIAL CHRONICLE
The bulletin is being circulated through educational
agencies such as the United States Department of Agriculture, agricultural colleges, experiment stations, extension
workers, vocational agricultural schools, co-operatives,
general farm organizations and State departments of agriculture. Copies may be obtained free by writing to the
Director of Information, Federal Farm Board, Washington,
D. C.
57
The National was incorporated under the laws of Delaware on Dec. 24
1929. Its headquarters are at 281 Summer Street, Boston, Mass.
One thousand pecan growers are marketing their crop through the
National Pecan Marketing Association, with headquarters at Jackson,
Miss. The National was established July 3 1930.
Nineteen local receiving and grading associations, all members of the
National, have been formed by growers with the aid of the Federal Farm
Board since July 7 1930.
Pecan growers of Southern States are marketing their pecans under the
centralized plan operated by the National Pecan Marketing Association.
The National Bean Marketing Association was established on Feb. 24
1930, with headquarters at 301 Cooper Building, Denver, Colo. It is one
of the six National sales agencies established under the provisions of the
Agricultural Marketing Act by co-operatives with the aid of the Federal
Farm Board. Before starting the operation of this association,co-operatives
are carrying out their original plan to strengthen the member agencies and
organize new co-operatives wherever they are needed. While the National's
member agencies are being developed the beans are handled by the cooperative local and regional agencies.
Million Farmers Receive Benefits of Marketing Act—
Review by Federal Farm Board Details Activities
of Six National Sales Groups Now in Operation—
Foundations Laid for Other Agencies—Co-operatives to Be Established Wherever Needed.
More than 1,000,000 farmers have been helped by the
Wisconsin—Low Rate
Agricultural Marketing Act, six national co-operative Loans to Farmer Co-operatives in
Factors in Increase
Principal
Interest
One
of
of
marketing associations have been established with the aid
Shown in Last Six Years.
of the Federal Farm Board and others are planned, and
The following from Madison, Wis., Dec. 22, appeared in
great quantities of grain, livestock and other products are
being handled co-operatively by these agencies, the Farm the "United States Daily":
Loans running into millions of dollars with interest as low as 2% have
Board stated Dec. 23 in a review of its work to date. The been
made to bonded warehouses of farmers' co-operatives in the State
sections summarizing the work in general and outlining the of Wisconsin during the last year or two, according to C. N. Pulley, wareorganization and activities of the six national sales agencies house inspector of the Department of Agriculture and Markets. This
a tremendous growth inasmuch as there was only one such bonded
are given as follows in the "United States Daily" of Dec. 24: indicates
warehouse in the State taking advantage of its privilige to borrow money
More than 1,000,000 farmers have been aided by tne Agricultural Marketing Act.
All farmers, no matter where they live in the United States, may market
their crops through the local, regional, terminal, and national co-operative
organizations that are being developed in accordance with the provisions
of this Federal law.
Seven national agencies have been established by co-operatives with the
assistance of the Federal Farm Board. Six of these are sales agencies. Five
already are operating, marketing grain, cotton, livestock, wool and mohair,
and pecans.
Foundations are being laid for the building of other national marketing
organizations wherever they are needed.
12,000 Co-operatives.
There are 12,000 farmer-owned and controlled co-operative associations
in the United States, according to estimates in June 1930. The membership
of these associations totals approximately 3,100,000, representing about
2,000.000 farmers. Some producers are members of two, three, four or five
organizations, which accounts for the difference between the membership
and the number of farmers.
One quarter of a million farmers own and control the Farmers National
Grain Corp. through its 27 members, consisting of pools, elevator groups,
and regional sales agencies, according to the corporation's membership
estimates in Nov. 1930. Under a unified plan these growers market their
grain through the National.
In the first three and a half months of its operations in the 1930-31 crop
year the Farmers National Grain Corp. handled over 50.000.000 bushels
of grain. Of this amount, more than 40.000,000 bushels was wheat, about
one-fifth of which was sold for export into eight different foreign countries.
In addition to this amount, millions of bushels of grain have been marketed
by stockholder agencies, operating under the direction and control of the
National.
Acts as Sales Agent.
Most of this grain was originated by co-operative members of the National Corp. The latter acts as sales agent for the co-operatives, merchandises the grain through regular channels, and secures for its members
all of the benefits and profits that accrue from warehousing, improving the
grades, and merchandising. These profits belong to tne member co-operatives and in turn to the farmers who compose the membership.
The Farmers National Grain Corp. was established Oct. 29 1929. Its
head office is at 343 South Dearborn Street, Chicago, Ill.
Approximately 2,000.000 bales of 1930 short-staple cotton had been
delivered to the American Cotton Co-operative Association before Dec. 1.
More than 500.000 additional bales probably will be delivered during the
winter and spring months.
More than 150.000 growers are members of the 11 State and regional
associations which form the American Cotton Co-operative Association.
These associations own and control the National. The National organization, markets all of the cotton delivered to the State and regional association units throughout the Cotton Belt, stretching from North Carolina
to California.
Long-Staple Cotton Handled.
While most of the cotton handled by the American association is of the
short-staple type, it also handled some long-staple cotton. In addition to
the cotton handled by the American Cotton Corp. Association. the Staple
Cotton Co-operative Association of Greenwood, Miss., received during
1930 more than 300.000 bales from at least 1,600 farmers. The total cooperative cotton delivered in 1930 therefore will be close to 3,000,000 bales,
or about 20% of the Nation's crop.
The American Cotton Co-operative Association was organized on Jan. 13
1930. Its headquarters are at 535 Gravier Street, New Orleans, La,
Approximately 350,000 farmers and ranchmen are members and patrons
of the 18 marketing agencies, affiliated with the National Livestock Marketing Association at Chicago which began
operations on July 14 1930.
Fifteen of these 18 co-operative agencies marketed in 1929 nearly 7,000,000
head of livestock valued at more than $170,000,000.
It is conservatively estimated that more than $200,000.000 worth of
cattle, hogs, sheep, and goats will be marketed during 1930 through the
member agencies of this National association, which was incorporated on
May 10 1930.
Wool Delivered.
Forty thousand farmers and ranchmen delivered to the National Wool
Marketing Corp., during the marketing season of 1930, 116,000,000 pounds
of wool and 14.600,000 pounds of mehair,*cording to the corporation's
November report.
This gave the growers through their central selling agency control of
35% of the wool, exclusive of pulled wool, and 85% of the mohair produced
in the United States. These producers own and control the National
corporation through their 26 stockholder marketing organizations located
throughout the country.
six years ago, Mr. Pulley said, while to-day 43 warehouses come under the
bonding and inspection regulations of the Department.
The following information was made'available at the Department:
Canners, grain elevators, cheese and tobacco co-operatives are making
use of the bonding privilege. The Federal Government has recently allowed
the issuance of warehouse receipts on bundle tobacco. The tobacco pool
is thereby enabled to receive the tobacco from the growers, and to bulk
and sweat it to improve the quality and the selling price.
Warehouses where farm products are stored and bonds have been issued
to secure the product are inspected at least four times a year by the inspector of the Department of Agriculture and Markets. This helps make
the stored products security on which bankers will loan money.
One of the newest and cheapest forms of borrowing being used by Wisconsin's big co-operatives is that of the bankers' acceptances handled
through large banks. Interest on these loans is only 2% at the present
time. Canning companies, cheese co-operatives, and the tobacco pool
are using this form of borrowing to help stabilize the market conditions.
Nebraska Wheat Acreage Reduced—Farmers Plant
12% Less Than in 1929.
From Lincoln, Neb., Dec. 22, we quote the following as
given in the "United States Daily":
Nebraska farmers have reduced their wheat acreage by 12% and are
taking the lead in co-operating with the Federal Farm Board, according to
a statement issued by the State Agricultural Statistician, A. E. Anderson.
Reports show a reduction in Nebraska of446,000 acres from the 3,715,000
acres sown in 1929, the statement said, while the reduction this year for
the entire country was only 471,000 acres.
"Apparently," Mr. Anderson said, "the farmers in other States are not
co-operating with the Farm Board in reducing wheat acreage as they are In
Nebraska."
The condition of winter wheat is 91% as compared with 96% a year ago,
the statement said.
Report that British Laborites Plan Bill for Wheat
Quota—London Paper Says Great Britain Would
Settle Amounts to Be Purchased in Empire.
From London. Dec. 24. the New York "Times" reported
the following:
The British Government is understood to be preparing legislation for
quota purchasing of wheat for the British market, the "Daily Express"
says to-day.
The details of the bill are not known as yet, the paper adds. It is forecast, however, that it will set forth a percentage of British-grown wheat to
be taken by millers, the percentage that millers must secure from the
wheat-growing members of the British Commonwealth, and the percentage,
or remainder of market requirements, that may be secured from foreign
countries.
It is understood the government will not attempt to divide the empire
quota between the different dominions. Besides Canada, wheat is grown
in large quantities in Australia, South Africa, India and New Zealand.
Neither will the supplies from foreign sources be divided in any way.
The special economic committee of the Impenal Conference reported
such a plan was pacticable, because wheat purchasing was conducted along
well-defined commercial channels. The committee report suggested no
defibite percentages, but it was assumed British millers would be required
to take 55% of supplies from the dominions.
Tariff of 63 Cents on Wheat Proposed—Increase
Under Flexible Provision of Act Urged Upon
President Hoover.
Increase of the tariff on Wheat to 63 cents a bushel under
the flexible provisions of the tariff law is proposed by Representative Summers (Rep.), of Walla Walla, Wash., in a
letter addressed to President Hoover and the Chairman of
the Tariff Commission, Henry P. Fletcher. The tariff law
prescribes a duty of 42 cents. Mr. Summers recommended
the increase, he said, to forestall "further disaster to the
American wheat farmer." Mr. Summers' letter to the
58
FINANCIAL CHRONICLE
President and Chairman Fletcher as given in the "United
States Daily" of Dec. 27, follows:
"Chairman Alexander Legge on Dec. 22, according to the United States
Daily, predicted that wheat will be imported over the 42 cents tariff wall
if the world price continues to sag.
"In order to forestall further disaster to the American wheat farmer, I
respectfully but earnestly urge you to take action looking to the immediate increase of the duty up to 63 cents per bushel which is permissible under
the flexible provision of the tariff law and without congressional action.
"The need for immediate action cannot be overemphasized in view of
the fact that wheat was imported into this country in 1923 and 1925 when
the differential, as pointed out by Chairman Legge, was less than at the
present time."
Representative Hawley (Rep.), of Salem, Oreg., Chairman of the House
Committee on Ways and Means, which originated ithe present tariff law,
stated orally that the Tariff Commission, under the flexible clause, has
authority to prescribe a rate up to a maximum of 63 cents on wheat, if
the conditions justify such an increase. He said he did not care to discuss the merits of the proposal.
Senator Steiwer for Wheat Tariff Rise.
Senator Steiwer, Republican, of Oregon, to-day advocated a higher tariff on wheat rather than imposition of a
temporary embargo, as suggested by Chairman Legge of the
Farm Board. Associated Press advices from Washington,
Dec. 27, in making this known, continued:
"It is absolutely essential that adequate steps be taken at once to exclude
Imports of wheat," Senator Steiwer said, "because the Farm Board has
pegged the price, and if the foreign market goes down to a point where
they can import over the duty, we would be buying Canadian wheat at the
pegged price."
Senator Steiwer said thau he feared an embargo on wheat would disturb
our foreign relations and he saw no reason why the Tariff Commission should
require much time to investigate the adequacy of the present 42 cent tariff,
but he added that he would not oppose an embargo lithe Tariff Commission
found it could not invoke the flexible provisions to raise the levy.
He also advocated a rise to 13% in the present duty of 10% on bran,
shorts and other by-product feeds obtained from milling grains. Imports
of these by-products have increased considerably from Argentina and Canada.
L VOL. 132.
ditions. A food products company, which had been working on three
eight-hour shifts, has recently announced a new schedule calling for four
six-hour shifts and the consequent increase of its working force by 25%.
To compensate partially for loss of earnings due to shorter working hours,
the hourly wage is to be advanced 1234%.
A large publishing house has adopted a new and unique variation of the
usual method of rotating shifts. With operation at about half the normal
volume, the force in the largest departments was divided into two shifts,
each of which works alternate weeks. During the week of lay-off the inactive shift receives half-pay.
A novel plan for meeting the present situation has been announced by
a Canadian lumber company. For the three months' period ending Oct. 31
neither regular wages nor a return on the investment of $600,000 were paid.
After operating expenses and the cost of materials,supplies and replacement
were deducted, the receipts of the company were divided among employees
In proportion to the wages which they would receive in normal times. In
August employees received 74.3% of their normal wage scale and in September 78%, but October figures were expected to fall below those of the
two preceding months. Employees have recently signed a new contract
extending the agreement to March 1 1931.
Employees themselves have in many instances shown a fine spirit of cooperation in seeking to help their less fortunate fellows. Typical of such
cases is that of Armour & Co. The employee representation body formed a
special employees' relief committee and circulated throughout the working
force requests for financial assistance in the form of pledges for weekly
contributions. It was later found that sufficient had been pledged to
assure a weekly distribution of $3,500. For the present, at least, this fund
will be expended only among present and former employees of the company. Each case submitted to the committee for relief is first cleared
through the Chicago Council for Social Agencies, the purpose being to
avoid duplicating the work of some other relief organization.
In conclusion the Board says:
It is obvious from these and other examples that management and employees of industry as well as public and private organizations are attacking
the present unemployment emergency conditions vigorously and sympathetically. Attempts are being made on a large scale to provide the maximum employment possible, and in the case of those for whom no work is
available measures are being adopted that are intended to reduce to a
minimum the instances of actual privation or distress.
Indiana Considers Drouth Aid Plans—Special Commission Studying Proposals for Relief.
Refinancing farm loans in the drouth stricken area of
Wheat in Liverpool Breaks to Lowest Price on Record. Southern Indiana and making credit available to farmers
Prom Liverpool Dec. 30 Associated Press accounts said: throughout the State by utilization of the agricultural
Wheat slumped to-day to 3 shillings 11 pence and a farthing a cental, credit banking institutions, were considered at the first meetwhich is a trifle more than 56 cents an American bushel and the lowest ing of the Indiana Farm Credit Commission in the office of
price ever recorded in this market.
Governor Harry G. Leslie, Dec. 19. The "United States
In printing the above the New York "Times" stated Daily" reports further as follows from Indianapolis Dec. 22:
that the records of the Liverpool wheat market go back
A plan was outlined by Daniel I. Glossbrenner, Chairman of the Commission. It would make several millions of dollars available for farmers in the
to 1594.
Spring, he said, and result in general improvement of both agricultural and
business conditions in this State.
Pointing out that the farmers have failed to take advantage of the 4%
Interest rate made possible through the farm credit bank, district headquarters of which is at Louisville, Ky., Mr. Glossbrenner proposed that
credit corporations be formed to bring the banks borrowing possibilities
directly to the farmers in all Indiana counties.
Presidents of all banks of the State were asked to co-operate with the
Commission in a letter sent out Dec. 19 by L. 0. Chasey, the Governor's
secretary, who is also Secretary of the Credit Commission.
Chairman Glossbrenner pointed out the distinction between the Federal
Land Bank, which deals only in real estate mortgages, and the Federal Intermediate Credit Bank, which extends loans on chattels and general credit
of the farmer.
At a time when emotional appeal is an important factor there is a tendency
Other commissioners are Frank B. Bernard, Muncie, President of the
enthusiasm
once
aroused
has
a
mark.
Altruistic
the
way
of
overshoot
to
Indiana Bankers' Assn.; E. F. Hadley, President of the Mooresville State
gaining momentum until discrimination is sacrificed to the general urge Bank; Luther F. Symonds, State Banking-Commissioner; W. H. Settle,
to help, and considerable harm may be done in spite of highly commendable President of the Indiana Farm Bureau Federation; Scott Meiks, SecretaryIntentions. In endeavoring to relieve hardship caused by unemployment, Manager of the Producers' Commission Co., of Indianapolis; Dean J. H.
care must be exercised to prevent advantage being taken of this situation Skinner, of Purdue University, and Samuel R. Guard, editor of the Breedby many who have no desire to find work, and also to prevent the dulling ers' Gazette.
of the desire to work from too prolonged and too satisfactory support without working. Assistance administered by former employers is particularly
to be welcomed, because the circumstances of the beneficiaries are known Senator Robinson Hints Five-Day Week May Be Necesand those who really deserve help most are likely to confide to an employer
sary—Sees Machinery Displacing so Many That
a condition that they hesitate to bring before a charitable organization.
Palliative Measures Avail Little.
situation,
In assuming a prominent part in dealing with the unemployment
The industries of the United States, says Senator Joe T.
the employers of the country are not only giving substantial material
assistance, but also are encouraging the hope that the administration of Robinson of Arkansas, may find it
necessary to adopt a
relief will reach a higher plane than ever before.
National Industrial Conference Board Warns Against
Indiscriminate Measures in Undertaking to Relieve Unemployment—Relief Plans Adopted by
Some Business Concerns.
A note of warning to the public and a suggestion of value
to the unemployed are embodied in a review of the numerous
unemployment relief plans now in operation, made public
on Dec. 30 by the National Industrial Conference Board,
247 Park Ave. The Board says:
The review reveals a tremendous concentration of public
and private effort on the task of unemployment relief.
Programs have been set in motion to meet the emergency
conditions in a comprehensive manner. In most of the
larger pities co-ordinating relief committees have been set
up and systematic efforts inaugurated to prevent duplication of effort and at the same time speed up the actual relief.
These community committees, it is stated, are generally
following the plan of making relief payments in the form of
wages for public work, thus removing so far as possible the
taint of charity, in order to preserve the element of selfrespect. It is added:
five-day week to restore the equilibrium between labor
supply and the demand for laborers. In making this known,
Associated Press advices from Little Rock, Ark., Dec. 26,
published in the Brooklyn "Daily Eagle," from which the
following is also taken:
The Democratic Senate leader, in a statement upon his return home for
the holiday recess of Congress, observed that "unemployment seems to be
Increasing rather than diminishing, and the substitution of machinery for
hand labor is revolutionizing working conditions and throwing millions
out of employment."
He said "manifestly it is difficult for the five-day week to be brought
about during an economic crisis like the present," and that it, like the
proposed establishment of reserves for unemployment, is of permanent rather
than temporary character.
"Many circumstances," said the Senator, "indicate that mere tempoIndustry itself, aside from public and conununity relief measures, has rary measures will be insufficient, although of course they first must be
the
situation,
by
with
coping
for
measures
into
effect
many
special
Put
considered."
adopting either temporary new operating policies or emergency plans for
He added that the $116,000,000 appropriated by Congress for speeding up
preventing distress among both present and former employees. The public works "appears inadequate."
policy most generally followed is that of keeping as many as possible em"There
are some signs of general business improvement, but the recovery
ployed at least a part of each week. A large steel plant, for example, is cannot be quickly made,"
Robinson said. "Meantime every agency, both
reported to have 97% of its normal force on the payroll, in spite of the fact
public and private, must co-operate wholeheartedly to minimize the distress."
that operations are at only 48% of capacity. In this case working hours
Long-term advances to municipalities and States to enable them to carry
have been reduced and about 10% of the force is engaged in construction
on necessary public works may provide substantial relief, he said, but
work.
Some companies have initiated extensive repair and cleaning-up pro- "there are difficulties in the way of this which may prevent the necessary
grams, and some are even employing additional labor to relieve local con- legislation."
J.31931.]
FINANCIAL CHRONICLE
Hartford Economist Sees New Industry Needed to Aid
Idle—Says Revivals Come With Change in Business
Demands.
Professor William B. Bailey, economist of the Travelers'
Insurance Co., to-day said a new industry was needed to
relieve unemployment, which he attributed in part to factors beyond the control of business. This is indicated in a
dispatch, Dec. 28, from Hartford, Conn., to the New York
"Times," which further said:
Listing the influx of farm workers to cities as one of the factors responsible for the present unemployment problem, Professor Bailey said:
"During the last 10 years agriculture has released about 400,000 workers
nually, and between 2,000,000 and 4,000,000 fewer persons live to-day on
farms than 10 years ago. Industry, trade, and transportation have been
forced to find jobs for all these persons."
The unemployment problem would be less severe, he said, if agriculture
as caring for the persons it has turned to the cities.
"After every previous period of hard times in this country as far back
a 1837," he said, "we have had some industry that began to absorb the
orkers, first digging canals, then building railroads, then the automoile industry. What we need more than anything else is a new industry."
Professor Bailey expressed the opinion that a system of doles would
endanger the American standard of living, which, he said, can only be
aintained by providing jobs to practically the entire working population.
e predicted a pick-up in business before next summer.
59
return on their deposits. The plan is open to any employee in the United
States 21 years of age or over, and the employee may deposit up to onefourth of his wage or salary. A return of 6% is guaranteed.
Three-Day Work Week Proposed in St. Louis.
•
Associated Press advices from St. Louis, Dec. 27, stated:
Four St. Louis men, an inventor, a botanist, an engineer, and a contractor, are attempting to found an international society to be known as
the Three-Day Society, the members of which would pledge themselves to
work only three days a week.
Those who have signed their names to a pamphlet outlining the aims
of the organization are John H. Zimmer, an inventor of research instruments in the physiology department of Washington University; William
Siefert, a consulting engineer; E. D. Emme, a retired botanist, and
Bernard Hohmann, a retired contractor.
It is their belief, they stated, that the problems of unemployment and
business depression would disappear if humanity generally accepted the
three-day work week. The consuming masses would then have buying power
equal to the increased productivity of the machine age, they argue.
Norris B. Henrotin of J. A. Sisto & Co. Reinstated
to Membership in New York Stock Exchange.
Norris B. Henrotin, who was floor broker for the New
York Stock Exchange firm of J. A. Sisto & Co. of this city,
prior to the firm's suspension on Sept. 30 for inability to
meet its obligation, was restored to membership in the
olice Survey in New York City Shows 59,244 Heads Exchange on Dec. 31.
of Families Without Work—Increase of Those in
Need—City Employment Bureau Places 311 in Day. Volume of Trading on New York Curb
Exchange in
There are 59,244 heads of families in New York without
1930—Drastic Price Declines on All Security Markets in Past Year.
employment, according to Police Department figures given
out on Dec. 26 by Commissioner Mulrooney. The New York
Noting that "the year 1930 will go down in the annals
"Times," from which we quote, added:
of financial history as the one in which prices on all security
, The police census on Wednesday disclosed 58,605 families in need.
markets experienced the most drastic declines since the adThis city's free employment agency, 54 Lafayette Street, placed 311 persons in jobs yesterday. During the last week 1,407 persons obtained em- vent of the twentieth century," the review of the year's
ployment through the agency, 1,189 men and 218 women. Of the men, operations on the New York Curb Exchange says, in
part:
549 were skilled and 640 unskilled. Since Aug. 15, when the agency
opened, 28,307 of the 57,288 applicants received jobs.
In common with other stock markets in the United States, the New York
Curb Exchange felt the effects of this slump and prices for representative
securities were slashed right and left almost from the first of the year.
Holds Government Must Aid Jobless—B. C. March In many instances values for leading stocks dropped to one-half to one.
quarter of their peak levels of 1929.
of Peoples Lobby Warns That Survival Depends
From time to time during the months of November and December,
rallies from the low points were experienced, but, in the main, the general
on Taking Responsibility.
trend of the market has been weak and there has been no marked indicaDeclaring that "the recognition by our Government this tion
of a sustained advance.
year of its responsibility to care for the victims of unemThe widespread activity which prevailed in the market during 1929
ployment" was the "most significant event of the century," and which broke all records in the volume of business, was missing in 1930.
sales for the year, approximating 215,000,000 shares, were less than
the People's Lobby, of which Professor John Dewey is Presi- Total
half of the total in 1929. On the other hand, the bond market was
dent, in a statement made public Dec. 28 by Benjamin 0. considerably more active, with total sales approximating $800,000,000,
March, asserted that this "recognition dooms the present which is almost $300,000,000 more than in the previous year. This
activity may be attributed to cheap monetary conditions.
irresponsible and wasteful chaos of production and distribuLast year the marked trend toward grouping of industrial companies,
tion of goods and of wealth."
especially in superpower systems, gave rise to the formation of numerous
In his statement (according to a Washington dispatch large holding corporations with vast capitalization, by means of which
many companies operating in extensive territories were combined under
to the New York "Times"), Mr. March said:
single management. These developments resulted in a rapid expansion
"About nine years ago I asked the late Secretary of Agriculture, Henry in the size and number of stock issues listed on the New York Curb ExC. Wallace, whether he thought the Government of any advanced nation change during that year, and, although in 1930 these conditions were less
could survive for 10 years if it failed to supply the primary food, clothing noticeable, nevertheless the New York Curb Exchange continued to add
and shelter requirements of all its people. He promptly replied 'No.'
to its trading list, with the result that at the present time there are more
"To the same question, President Hoover, then Secretary of Commerce, stocks and bonds dealt in on the Exchange than ever before.
replied: 'Maybe some of them can get by for as much as 20 years.' I told
At the end of the calendar year 1930 there were about 2,800 stocks and
him he was mistaken and would find it out.
bonds admitted to trading privileges, an increase of 800 issues. The
"Of the 140 Mayors in 25 States, who replied (to Dec. 19) to the letter total comprises over 2,300 domestic and foreign stocks, about 440 domestic
recently sent them by Senators Walsh of Massachusetts and La Follette bonds, and approximately 100 foreign bonds.
asking if they favored Federal aid to municipalities (in addition to public
The aggregate par value of all stocks and bonds traded in 1930 Increased
works loans) to care for the unemployed, 105 Mayors, or exactly three- from $19,350,000,000 to approximately $21,000,000,000. In addition,
quarters, favored this, 17 were non-committal, and 18 were opposed, chiefly there are about 900,000,000 shares without par value. Of the total
on the ground that States and municipalities should attend to this without number of active stocks, over 65%, or about 1,450 issues, are in the
''ederal aid. Not a single Mayor denied the responsibility of Government. dividend-paying class, and the character of domestic and foreign securities
"The three Mayors replying from the Vice-President's State of Kansas dealt in exemplifies the vast scope of business as carried on in this
all favored Federal aid, Wichita, Topeka, and Newton.
country.
"Of the 16 Mayors of cities in Ohio, home State of Chairman Fess of
Last year great progress was made in extending the scope of the ticker
the Republican National Committee, home of Republican prosperity Presi- service throughout the nation. At the close of 1929 approximately 8,000
dents, all but two from small towns favored Federal ail These included tickers were in active operation and over 100 important
cities were
Marion, Toledo, Dayton, and Cincinnati, home town of the urbane Speaker covered in the network, which extends from the Atlantic
to the Pacific
of the House, where there were reported 20,000 out of work and 25,000 and from Canada to the Gulf.
working part time for the city.
As a result of the drastic decline in security values this year and the
"Hunger parades to be staged in most large industrial centers as the decrease in the volume of business, little headway was made in extending
clays begin to lengthen and the cold begins to strengthen may arouse the the ticker service through the medium of branch lines in the interior.
Federal Government to adequate measures to insure the continuance of However, with the advent of time, and a return of normal conditions,
Government by parties—or blocs, new or old. The 'American plan' of gov- the ticker system will be further broadened.
ernment isn't hitting on over two cylinders in the 1930 model.
Rules and regulations of the Exchange, which have been very stringent
"It can't, Re long as the total extra relief given to the families of five since the Exchange came indoors in 1921, were further strengthened
million unemployed is only about one-fourth of the lightly taxed unearned during 1930 by several amendments to the Constitution. These amendincomes of the 496 persons who to get a true picture of government in the ments were made with the view
of exemplifying and strengthening the
United States must assemble in front of a mirror."
foundation on which the business of the Exchange is transacted. Also the
New York Curb Exchange continued its co-operation with the Better
Bureaus, the Attorney-General of the State of New York, the
Ford Workers Get $2,000,000 in 10% Return on Deposits. Business
National Association of Securities Oommissioners, dm., in their efforts
Employees of the Ford Motor Co. will receive about to safeguard the public against fraudulent and unethical stock market
$2,000,000 on their deposits during 1930 in the company's schemes.
There were approximately 60 New York Curb Exchange memberships
Investment fund, it was announced at Detroit, according to transferred during the calendar year 1930, at prices ranging from
$225,000
advices from that city, Dec. 28, to the New York "Times." down to $70,000, in October, with a resultant rise to memberships to
above
compare
December.
figures
These
$100,000,
with
in
an
absolute
It is further stated:
high price for a "seat" of $254,000 made in September 1929. The bad
This is a return of 10% on their deposits.
break in stock prices and the attendant falling off in trading naturally
Payments for the first half of the year were made in July. Those for accounted for
the decrease in the value of memberships.
the second half will be payable in January.
Notwithstanding the hectic trading conditions which existed In the
The Ford investment plan was started in 1920. In the 11 years since, market during
1930, the Clearing House of the New York Curb Exchange
employees who have participated in it have received about $22,000,000 continued
to grow and is to-day clearing about 600 issues, which comprise
60
FINANCIAL CHRONICLE
about 75% of the total valume of business. The machinery of the Clearing
House worked without a hitch and successfully met all tests. However,
with the completion of the new building, the facilities of the Clearing
House will be greatly enlarged.
One of the greatest forward steps taken by the Exchange during 1930
was the inauguration of a call money desk on the trading floor April 23.
The establishment of this money market was made possible through the
co-operation of banks and trust companies representing leading Wall
Street financial interests.
The success of the money desk, as a result of the splendid co-operation
on the part of the banks and trust companies, has proven to be a greater
factor in the evolution of the Exchange than the action taken by the
banks and trust companies three years ago when they agreed to accept
the guarantees on stock certificates of members of the Curb Exchange
Clearing House. Prior to that time only Stock Exchange firms, banks
and trust companies were authorized to certify to the genuineness of
signatures.
The establishment of the money desk was not expected to, and did not,
revolutionize the method of doing business with banking houses, for the
reason that many mmbers were desirous of continuing their present private
banking arrangements. But as time goes on it is confidently expected
that all members will avail themselves of the opportunities offered by
the money desk to consummate their monetary obligations.
It is estimated that nearly 1,000 issues have been approved as satisfactory collateral for bank loans. With the completion of the new
building in March of 1931, concentration of the money loaning function
on the floor of the Exchange should be almost as complete as in the
organized call money market on the Stock Exchange.
Almost from the inception of the call money desk a ih of 1% differential
in rates against Curb securities has been maintained, but with normal
growth in business, members who now have their own banking facilities
are expected to gradually wean away from their prevailing methods of
obtaining loan accommodations. Since the money desk was established
in April 1930, the average loans per week have totaled $1,695,000, and
the call money rate has fluctuated between 4.17% and 2.40%.
Another history-making event in the evolution of the Exchange was
the dedication of the cornerstone in the new addition to the present
building. This occurred July 15, and was attended with elaborate ceremonies in which all of the officials of the Exchange participated.
Paradoxical as it may seem, the two periods in which the old building
and the new building were decidated—June 27 1921 and July 15 1930—
were similar in many respects. In both of these periods, as before stated,
industry was almost stagnant, but in 1921 the New York Curb Exchange
faced the future with confidence and in 1930 the institution faces the
future with even greater hope and faith in the ability of America and the
world to retrieve past losses and continue to progress to greater heights.
The new building, which is to be 14 stories in height, and which is to
be completed in March 1931, will be equipped with every modern mechanical facility for the consummation of business. President William S.
Muller, in an address at that time, stressed the growth of the volume of
business which the Curb Exchange had experienced since 1921, when the
present building was taken over. He reviewed plans for the addition,
which provide for a frontage of 178 feet on Trinity Place, and 181 feet
in depth to Greenwich Street. The new addition will rise 225 feet above
the sidewalk and extend 35 feet 9 inches underground. Among these
features of the equipment will be tubes for the dispatch of orders, a
central quotation system, and a modern cooling and ventilating system.
Already high-speed tickers are in operation, and which, from tests, can
handle three million to four million shares daily without much trouble.
New Building of Los Angeles Stock Exchange To Be
Formally Opened for Trading Jan. 5.
The new building of the Los Angeles Stock Exchange will
be formally dedicated and opened for trading on the morning of Jan. 5, when John Earle Jardine, President of the
Exchange, rings the gong starting trading on what is claimed
to be one of the finest security trading floors in the country.
'The Los Angeles Stock Exchange was organized 31 years ago
and in that time has occupied eight homes, the new building
being the first it has owned outright. The trading floor
of the new building is 74 feet wide and 90 feet long, giving
an area of 6,580 square feet, making it, it is claimed, the
largest stock trading floor in the country excepting that of
the New York Stock Exchange. Surrounding the trading
floor are 64 booths, while on the floor proper are four large
"U" shaped trading posts, each having provisions for 20
trading stations with facilities to accommodate four specialists and an odd-lot dealer.
When the Exchange is opened it will make use of the conventional blackboard for recording of price changes and
transactions but arrangements have been concluded for
one of the latest automatic types of stock quotation boards.
The structure is 11 stories high with sixth to eleventh floors
being set back considerably from the lower front elevation.
The upper floors are fitted for administration offices, committee rooms, lounges and recreation rooms. F. E. Sanford
is Secretary and Manager of the exchange.
New Members of Board of Governors of Los Angeles
Curb Exchange—New Officers Elected.
James W. Elliott, Secretary and Manager of the Los
Angeles Curb Exchange, announced on Dec. 22 that Frank
F. Hargear of Sutro & Co. and J. Lewis Gabel of Graves,
Banning & Co. have been elected to fill unexpired term on
the Board of Governors. Edgar M. Phillips of M. H. Lewis
& Co. was elected to the Vice-Presidency and Edwin L.
Harbach of Wm. Cavalier & Co. was elected Treasurer.
Fou
132.
Secretary Matthews of Philadelphia Stock Exchange
Expects Results of Constructive Efforts of Past
Year to Be Reflected in Bright Years Ahead.
The following first of the year statement was made by
Frank C. Matthews, Secretary of the Philadelphia Stock
Exchange:
"The year 1930 has found the great mental forces of our country at work
carrying out the most constructive programs of all time and solving problems never before encountered. This also may be said of the countries
abroad.
"The Philadelphia Stock Exchange as a principal security market has
endeavored, through its governing body, to contribute its share to the constructive side by co-operating more closely with its members on matters
of credit, working capital and service to meet the growing and more exacting demands of the public. More efficient methods have been employed is
floor trading; more modern vehicles of communication have been adopted.
Special attention has been given to bond trading, with the result that the
volume of trading in bonds was increased over four hundred per cent withis
a period of six weeks. All points of contact have been amplified to meet
greater demands and many other phases of trade have been given careful
thought to the end that a greater and better service may be rendered.
"So, regardless of the existence at large of certain adverse conditions, the
Philadelphia Stock Exchange has had a very busy year, the results of
which are sure to be reflected in the bright years ahead."
Elisha Walker of Transamerica Corp. Urges Business
Men to Apply Themselves with Renewed Energy
to Task of Achieving Prosperity.
In a year-end statement, Elisha Walker, Chairman of
Transamerica Corporation, said:
"Recovery from recently prevailing subnormal conditions will be hastened,
in my opinion, by what businessmen do rather than by what they say. It
is appropriate now for actions to displace words and for faith to be supported
by deeds.
"If the business men of America will apply themselves with renewed
energy to the task of achieving prosperity rather than awaiting its happening, I have not the slightest doubt of what the outcome will be."
Bond Market Outlook for 1931 as Viewed by:Lawrence
Stern & Co.
That a sensationally rapid recovery from the present low
level of bond prices is one of the possibilities in the bond
market for 1931 is a conclusion reached in an analysis of the
present situation in the bond field made by the Research
Department of Lawrence Stern & Co., investment bankers
of Chicago and New York. The review issued Dec. 28
states that the "stage is set for a rapid rise in the price level
of bonds as soon as any definite turn in business conditions
removes the special and temporary factors which brought
about the present depression in bond prices."
The present extremely low prices for bonds, according to
the Lawrence Stern & Co. analysis, are very largely due to a
number of special and unusual factors which have operated
in the past two months. Many observers have been bewildered and discouraged by the extraordinary weakness of
bond prices—resulting recently in many cases in declines of
from 15 to 20 points. A consideration of the special factors
which have been operative, however, would indicate that
the market has given a fairly good account of itself in view of
all the circumstances.
These special and unusual factors which have operated to
depress bond prices in recent weeks include the following,
according to the review:
(1) Banks throughout the United States have rightly felt that conservative policy, under present conditions, calls for the maintenance of
the maximum liquid position. This means selling bonds from the bank's
portfolio. The effect of such selling was naturally felt first in the second
grade issues, but it has gradually spread to include the higher grade market
securities. This factor was especially noticeable in New York recently in
the days preceding an important bank failure. Every bank in New York
was under the necessity of maintaining the strongest possible cash position.
and sales from the bond portfolio wore the quickest and most logical method
of obtaining such a cash position. This nation-wide tendency on the part
of banks is entirely conservative and proper from the bank's standpoint.
but has thrown many millions in bonds upon a market which was ill equipped
to absorb them.
(2) The insurance companies—like the banks—are important purchasers
of bonds. In the recent past,owing to general business conditions and widespread unemployment—as well as stock market losses—the insurance companies have been called upon to make a record-breaking total of policy
loans. This has resulted in a serious reduction of insurance company bond
purchases.
(3) It has been noted that railroad bonds have been especially weak in
the recent period. One considerable factor in this weakness is that a reduction of railroad income has made it appear that several railroads may be
unable to report earnings which will meet the requirements for railroad
securities legal for the investment of savings banks in New York State.
This has undoubtedly brought a large amount of liquidation from New York
savings banks in these particular issues—some of which have declined as
much as 20 points.
(4) The action of security houses which sponsor bond issues is always as
important factor in supporting the market. In ordinary times, underwriting houses use every effort to support the market for the particular issue
which they have sponsored. However,in the recent past many such houses
have not been in a position to maintain such support. In addition, there
has been considerable selling of inventories among many investment houses
in order to build up a liquid position.
JAN. 3 1931.]
FINANCIAL CHRONICLE
61
(5) In the public utility field, public confidence has been affected by acceptances and treasury notes and bills, had already fallen to levels little
widespread discussion of the possibilities of political developments affect- above the interest rates being paid by the banks to their depositors, and the
ing that field. It has been widely noted that many States elected Governors prospect now is, in the opinion of bankers, for a still further decline in
at the last election who have a more or less definite anti-utility bias—and it short term money rates.
is expected that the "power trust" issue will be the subject of considerable
Most Banks in City Included.
agitation. This has unquestionably caused considerable liquidation of
The reduction in interest rates ordered yesterday by the Clearing House
public utilities among nervous holders.
will affect nearly all business men carrying accounts with New York banks,
The review further says:
since the 23 banks comprising the membership of the clearing house Include
Any one of the above five factors might be sufficient to explain to a con- virtually every important commercial bank in the city. The ruling does
siderable degree the weakness in the bond market. When we have a con- not affect savings banks, which are not members of the Clearing House.
eentration of all of these factors operating at one time, it is not surprising except that these institutions will receive a smaller return on the portion of
that there have been drastic declines in all types of bonds.
their funds carried on deposit with commercial banks.
In considering the future course of bond prices, it should be remembered
that all of the factors outlined above are special and temporary. Their
effect has been to cause a rapid decline in bond prices within a very short Foreign Deposit Rate Cut by New York Banks—Reduce
time—and the effect of their removal might very well cause an equally
Interest )
,6 of 1% on Demand and Time Accounts.
rapid advance in prices in an equally rapid time. Just as soon as there is a
definite turn in the businesssituation for the better—and even a slightrestorAs a sequel to the reduction in interest rates paid on
ation of confidence—the major part of these special factors will cease to be deposits by Clearing House banks, announced last week,
operative, and the upward reaction should be equally as startling as the
downward course. The factors favoring such an upward reaction are the committee of officers of a group of large local banks,
further enhanced by the present technical situation of the market. Bond which by informal agreement fixes the rates paid on foreign
traders report a "thin market" throughout the bond list, and even under
deposits in American banks, has determined upon a reduction
present conditions there have been cases where a purchase of as many as 50
in these rates, effective next Monday, to levels corresponding
bonds has raised the price of certain listed issues as much as 15 points.
It should be remembered also that there has been a curtailed volume of to the new Clearing House rates. Advices to this effect
bond offerings for the past three years. In 1927, a total of about 8%
of Dee. 31, which
billion in bonds were floated on the American market. In 1928, this total were contained in the New York "Times"
dropped to less than $6,400,000,000. In 1929, a further drop was registered further said:
—the total reaching only about $4.800,000,000. Nineteen hundred and
The new rates will be 1% on demand deposits and 2% on time deposits.
twenty-nine represents a year of abnormally low bond financing—owing to both representing reductions of 3i of 1% from the present figures. The restock market conditions that year—but the 1930 total (estimated late in duction in the rate on demand deposits corresponds exactly to the cut
December) of about $6,000,000.000 is 32,500,000,000 less than 1927, and ordered by the Clearing House. The Clearing House did not reduce Its
even under the 1928 total. Furthermore, the large stock flotations of 1929 rate on time deposits, which is 2% There has been a differential of
of
permanently removed a large volume of high-grade bondsfrom the market. 1% in favor of time deposits of foreign customers, but this is wiped out by
It is apparent, therefore, that the issuance of bonds for some time past has the change just voted.
not been abnormally large—especially among the higher grade issues—and
The Clearing House does not prescribe the rates to be paid by member
this fact should have an effect on the market sooner or later.
banks to foreign clients, but simply dictates the rates on domestic deposits.
It is outside the function of this review to attempt to predict when a turn
is general business conditions will come. If such a turn definitely appears
k 1931, however, it appears reasonably certain that the stage is set for a Cut in Interest Rate
by Newark Clearing House Assorapid—perhaps a sensational—rise in the price level of bonds.
ciation.
The following is from the Newark(N. J.)"Evening News"
Cut by New York Clearing House Association in Interest of Dec. 30:
Rates Allowed on Deposits.
Following a policy adopted in New York a few days age, the Newark
A brief reference appeared in these columns last week Clearing House Association yesterday announced that, in the interest of
and conservative banking, interest rates would be reduced after Jan. 1.
fpage 4535) to the reduction made by the New York Clearing safe
The changes include:
House Association in interest rates paid by Clearing House
Demand deposits after a free balance of $1,000, new rate 114 ro. old rate
members. This is the third cut in interest rates made by the 2%.
Time certificates of deposit on or after 30 days to three months, new
Clearing House Committee during 1930. The first cut rate 2%, old rate 2ji%.
Time certificates of deposit over three months, new rate 2J.%, old rate
occurred in March, and the second in June, a reference to
which appeared in our issue of June 28 1930, page 4535. 3%.
Accounts of mutual savings banks, new rate 2%,old rate 23S%•
Under the latest change, made by the Clearing House
Special accounts having 30 days' written notice of withdrawal, new rate
Committee on Dec. 26, effective Dec. 27, the rate to banks, 2%, old rate 2%.
Interest
on savings deposits remains at 4%.
trust companies and private bankers, but excluding mutual
savings banks, is 1%, as compared with 1%% heretofore;
the rate to mutual savings banks is now fixed at 1%%, Brokers Absolved in $38,335 Loss—Appellate Division
Reverses Verdict Against E. A. Pierce Based on
against 2% previously, and "to others" the rate is now
Deal—Use of Discretion Upheld.
Cotton
1% against 13/% heretofore. The rate on certificates of
In reversing on Dec. 26 a verdict for $10,000 obtained by
deposits or time deposits, by their terms payable on or
after 30 days, but not more than six months,from the date of C. Burne Craig against E. A. Pierce & Co., brokers, and disissue or demand, and without regulation as to rate on such missing the complaint in a suit for $38,335 damages, the
"certificates or deposits payable more than six months from Appelate Division in New York ruled that a customer of a
the date of issue or demand" continues unchanged at 2%. brokerage house cannot hold the brokers responsible for a
The following is the announcement made by the Clearing loss when he has told them to use their own judgment in
House:
disposing of his property. The New York "Times" in indiNEW YORK CLEARING HOUSE
cating this, reported further as follows:
New 'York, Dec. 26 1930.
Dear Sir:
Acting under the provisions of Section 2, Article XI of the Clearing
House Constitution, relating to interest on deposits to be paid by Clearing
House Institutions, we beg to advise you that the following maximum rates
have been fixed effective Saturday, Dec. 27 1930.
On certificates of deposit payable within 30 days from date of issue: and on certificates of deposit payable within 30 days from demand; on credit balances payable
en demand;and on credit balancm payable within 30 days from demand.
To Banks, True; Companies and
Private Bankers. but Excluding
Mutual Sayings Banks.
To Mutual
Sayings Banks.
To Others.
1%
%
1%
At the rate of 2% on certificate, of deposit or time deposits, by their terms,
payable on or after 30 days, but not more than six months, from the date of issue or
demand; and without regulation as to rate on such certificates or deposits payable
wore than six months from the date of issue or demand.
By order
MORTIMER N. BUCKNER
Chairman
Clearing House Committee
CLARENCE E. BACON
Manager
From the New York "Times" of Dec. 27 we take the
following:
•
The reduction in interest rates had been expected for several weeks and
would probably have been ordered some time ago, it was said, had not
the members of the Clearing House Committee been too much occupied
with their efforts to save the Bank of United States from suspension,
and subsequently with the problem of arranging loans to depositors of
that institution, to give time to the subject of interest rates.
The reduction of the rediscount rate of the Federal Reserve Bank of
New York from 2% to 2%,effective last Wednesday, made it imperative,
It was explained, that the Clearing House Committee take action on the
smatter. The yield on prime short term investments, such as bankers'
The plaintiff sued on the ground that the brokers were carrying 1,600
bales of cotton for his accoLnt; that he ordered them to sell the cotton at
24.60 cents a pound if, after the publication of the government report on
Sept. 8 1927, the price rose above that figure, and that this price was
exceeded but the brokers failed to sell, resulting in the loss sued for.
The answer asserted that the brokers had no selling order at the price
stated; that the order was "discretionary in character" and that after
the date mentioned the customer was notified that the cotton had not been
sold and he "ratified and approved" the action of the brokers in holding
the cotton. The brokers alleged further that if the plaintiff had given
immediate notice after Sept. 8 that he wanted the cotton sold, there
would have been no "substantial loss." Justice Martin, writing the unantmons opinion of the court, said:
"It is quite evident from the correspondence between the parties that the
plaintiff lulled the defendants into a sense of security by failing to order
the cotton sold after the eighth day of September, and by correspondence
which intimated that an honest mistake had been made and for that
reason no advantage would be taken by the plaintiff. One who takes
chances with the market in the manner shown by the correspondence in
this case should acccept the result and not wait until it is too late for
anybody to remedy the condition and then attempt to place the loss on
others. We are of the opinion that the judgment is wrong and should be
reversed."
Cleveland Federal Reserve Bank Reduces Interest Rate
to 8%—Boston Reserve Bank Lowers Rediscount
Rate to 23'%.
The action last week of the Federal Reserve Bank of New
York in reducing its rediscount rate from 23- to 2% (noted
on page 4148 of our Dec. 27 issue) has been followed by
the lowering of the rates of the Federal Reserve Bank of
Cleveland and the Boston Federal Reserve Bank. _ The
62
FINANCIAL CHRONICLE
change in the rate of the Cleveland Reserve Bank was
announced Dec. 27 by the Federal Reserve Board, as follows:
The Federal Reserve Board announces that the Federal Reserve Bank of
Cleveland has established a rediscount rate of 3% on all classes of paper
of all maturities, effective Dec. 29 1930.
The rate of the Cleveland Reserve Bank had previously
been 33'%, that rate having been in effect since June 7 1930.
On Dec. 31 the Federal Reserve Board announced that the
Federal Reserve Bank of Boston had established a rediscount
of 23/2% on all classes of paper on all maturities, effective
Jan. 2. Associated Press dispatches from Washington reporting this said:
[VOL. 132.
the use of this device may establish its use on a broader scale even when more
normal conditions are restored, it is felt in some circles.
Mounting Bank Failures Stimulate Movement for Inquiry by Congress.
The mounting number of bank failures throughout the
country has given great impetus to the Congressional investigations of the country's banking affairs which are expected to get under way after the holiday recess of Congress,
said the Washington correspondent of the New York "Journal
of Commerce" on Dec. 28, who continued:
With the report of the Comptroller of the Currency for 1930 awaited for
accurate information, estimates by those in close touch with the situation
place between 15 and 20 the daily average bank failures at the present time.
For the calendar year of 1930, the suspensions and failures have been estimated to run above 1.000, with something over 100 national banks involved.
The Boston Federal Reserve Bank reduces its rate from
The December report of the Federal Reserve Board shows, for the first
11 months,981 suspensions, which means "closed to the public permanently
3%, which had been maintained since July 3 1930.
or temporarily." This included 111 national banks, all of which are members of the Federal Reserve System, and 18 State bank members. This
figure is tentative, in so far as it includes the November totals of 236 when
Two Rediscount Rates in Effect in Kentucky.
25 national banks were listed as closing.
The following Washington dispatch Dec. 29 is from the
Senator Carter Glass (Dem.), Virginia, who is Chairman of the Subcommittee
of the Senate Banking and Currency Committee, which has been
New York "Times":
authorized to conduct a general investigation of the banking situation,
Lowering of the rediscount rate of the Federal Reserve Bank of Cleveland
particularly with respect to operations of the national and Federal Reserve
from 3;i% to 3%, which was effective to-day, has caused a peculiar consystems, has issued no announcement since his subcommittee mapped its
dition in Kentucky, the western half of that State being in the St. Louis
plan on Dec. 12, but Chairman McFadden of the House Banking and Curdistrict, which still has a 3J4% rate, and the remainder in the Cleveland
rency Committee has indicated a determination to pursue a searching inDistrict.
Federal Reserve officiallthought to-day that the rate in the St. Louis quiry into the causes of these mounting bank failures. Chairman McFadden
recently announced that after the holiday recess he proposes to
District might be reduced to abolish this differential in Kentucky, but
it was admitted that In the actual cost of money the disparity would make lay before his committee the matter of investigating the affiliates of large
banks. This course of inquiry, it is believed, will lead to the question of
little difference.
Reduction in the rate for all Kentucky, however, it was thought, might bank failures.
tend to restore confidence in the banking structure, which was recently
J. W. Spalding Elected President of Westchester
shaken by bank failures.
The action of the Boston bank gives it the second lowesst rate in the
Federal Reserve System. New York maintains a rate of 2%, while Cleveland reduced its rate to 3% two days ago. The other Federal Reserve
banks maintain a rate of 334%.
County Bankers' Association.
Joseph W. Spalding, Chairman of the board of the North
Representative Strong Said to Have Withdrawn
Avenue Bank & Trust Co. of New Rochelle, N. Y. is the new
Candidacy for Federal Reserve Board Post.
The New York "Journal of Commerce" reported the Presidentof the Westchester County Bankers'Association. He
succeeds to the post vacated through the death last October
following from Washington Jan. 1:
Real concern over the possibility of the Republicans losing control of of Robert G. Abercrombie of Irvington. Election of officers
the House in the next Congress was indicated to-day through the disclosure was the chief feature of the annual meeting of the Association
that Representative James G. Strong (Kansas), ranking majority member recently held
at the Hotel Commodore, N. Y. City. The
of the House Banking and Currency Committee, has withdrawn his candidacy for appointment to fill one of the vacancies on the Federal Reserve meeting marked the 20th anniversary of the organization.
Board at the persuasion of party leaders.
The Westchester County Bankers' Association was formed
With Representative Strong's name being prominently mentioned among
in 1910 "for the harmonious advancement of banking inthose under consideration by President Hoover to fill the vacancy caused by
the death of Edward H. Cunningham, the agricultural member,the decision terests in the county" largely through the efforts of the late
of the Kansan was regarded as reflecting the desire of the Republicans to W. W. Bissell, then head of the New Rochelle Trust Co. and
make every effort to retain control of the House, threatened by the Novemthe Association's first President. Henry J. Van Zelm,
ber elections.
successor to Mr. Bissell as head of that institution, was the
Use of Repurchase Agreements on Increase in Banks— first Secretary. The Association, formed with 42 member
Replacing Security Loans in Many Transactions banks, now lists 53 associated institutions.
Officers elected at the annual meeting are as follows:
Bankers Say—Effect on Statements.
The growing use of the repurchase agreement in connection President, J. W. Spalding, Chairman of the Board, North
with bank security advances has attracted considerable Avenue Bank & Trust Co., New Rochelle; Vice-President,
attention in banking circles in this city, observes the New Milton H. Hall, Vice-President, Mt. Vernon Trust Co.,
York "Journal of Commerce" of Dec. 29 and then goes on Mt. Vernon; Secretary, Robert R. Rennie, President,
National City Bank & Central National Bank, New Rochelle;
to say:
The view is expressed that this device is being utilized to a greater extent Treasurer, Clark E. Dixon, Secretary and Treasurer, Mt.
at the present time than ever before.
Pleasant Bank & Trust Co., Pleasantville.
Under repurchase agreements banks take over securities at fixed prices,
receiving an agreementfrom the seller that he will repurchase these securities
at the expiration of a stated period of time. The resale price includes allowance for interest (luring the period of the agreement, and any other form
of compensation agreed upon. Frequently, it is said, the seller under the
repurchase agreement deposits additional collateral in escrow to protect
the buyer against a default on the repurchase agreement, when the securities
sold and those deposited in escrow can be liquidated.
Sources of Popularity.
Several reasons are advanced for the growing popularity of the repurchase
agreement. In the first place, it possesses greater flexibility, as all kinds
of special arrangements can be made to suit individual circumstances.
Whereas security collateral loans involve certain customary margins of
safety, the repurchase agreement can be made on terms dictated by special
situations as they arise.
The repurchase agreement also permits broader powers to the banks in
dealing with individual borrowers, according to banking observers here.
They point out that under Section 5200 of the banking law, limitations are
set down as to the proportion of the bank's capital and surplus that can be
loaned to one party. Corresponding limitations are found in State laws.
The repurchase agreement does not come under this limitation, so that in
special cases advances can rise to sums substantially in excess of the limits
fixed by the law.
Another advantage pointed to is the greater flexibility possible in fixing
the compensation to the bank under repurchase agreements as against
security loans. The terms of the agreement, it is pointed out, can provide
for sharing by the banks in profits realized on the ultimate sale of the
securities sold in this way.for special commissions and other similar features.
Effect on Bank Statements.
Another advantage which some observers believe has furthered the popularity of the repurchase agreement is that it does not increase the security
loan account of the bank, and thus possesses an advantage in the effect on
the bank statement. Securities purchased under such agreements Increase
the investment account of the buying bank during the period of the agreement.
Opinions vary as to the permanence of the Increased use of the repurchase
agreement among local banks. It is stated that certain of the conditions
leading to its wider use are of a temporary nature, connected with prevailing
circumstances in the security markets. However,further famWarity with
Large Foreign Bill Purchases Made by Federal Reserve—
System Reports $30,512,000 Bought in Two Months
—Seen as Aid to Sterling and Mark Exchanges—
Monthly Statistics on Foreign Currency Acceptances Bought Now Issued.
The following is from the New York "Journal of Commerce" of Dec. 31:
The Federal Reserve banks have been making heavy purchases of foreign
hankers' acceptances during the closing months of this year, statistics made
public by the Federal Reserve Board reveal. The Board shows that its
holdings of bills payable in foreign currencies on November 30 of this year
amounted to $31,587,000, the highest total reached since publication of
such holdings began and a gain of $30,512,000 in two months.
Purchases of foreign bankers' bills by the Reserve Banks may be utilized
to strengthen the position of foreign exchanges. While the official statement of such purchases does not indicate the currencies in which bills purchased are drawn, it is believed here that by far the greater portion are in
pounds sterling and German marks. As both these currencies have been in
the neighborhood of the gold export points during the past few months,
the bill purchasing operations by the Federal Reserve Banks has tended to
avoid gold shipments.
Course of Holding.
Monthly figures on the holdings of bills drawn in foreign currencies are
available now by months for the past two years. The high point of such
purchases until the end of this year was reached at the end of October,
1929, when $17,064,000 of such bills were held by the Federal Reserve
Banks. These holdings were shrnsly reduced last November, however, when
the stock market panic brought about heavy withdrawals of foreign funds
from this market and made intervention by the Reserve banks unnecessary.
A total drop of $16,037,000 in foreign bills held was accomplished during
that month.
This year foreign currency bills held by the Federal Reserve Banks continued at the nominal amount of slightly above $1,000,000 until October.
During that month the Federal Reserve banks purchased $20,508,000 in
foreign currency bills. The effect of these purchases, at a time when
JAN. 3 1931.]
FINANCIAL CHRONICLE
mark exchange was adversely affected by the election scare, is believed to
have been a strengthening one on the German exchange.
During November additional purchases of foreign currency bills occurred,
in connection with weakness in the pound, so that by the end of the month
a net addition of $10,004,000 to the Reserve Banks' holdings was shown.
In December it is believed that further purchases were made.
Other Possible Purchases.
The above figures show purchases of bankers' acceptances in foreign currencies by the Federal Reserve Banks for their own account. Bills bought
under repurchase agreements, and above all bills purchased for the account
of foreign banks, are not included. It is possible that part of the large
total of acceptances purchased for the account of foreign central banks
-nay be in foreign currencies, although details of such purchases are withheld. The Federal Reserve banks assume contingent liability on such bills.
Regular publication of purchases and sales of foreign currency bills by
the Federal Reserve Banks is greeted with considerable interest in foreign
exchange circles. The fact that the Reserve Banks are thus acting to support weaker foreign exchanges In certain cases is regarded, as an important stabilizing influence, along with arrangements among foreign central
banks and intervention by the Bank for International Settlements. The
Bank of France is also believed to have made substantial purchases of
pound sterling latterly.
63
This occurrence illustrated on a large scale much the kind of service
which the Federal Reserve mechanism was designed to render. The
large demand for currency, due in part to some apprehension of depositors, paralleled in some respects the currency demand in 1907, which
was vividly in mind when the Reserve Act was drafted. The Federal
Reserve mechanism was adequate to the demand, currency being freely
supplied to any member bank applying for it, without any appreciable
strain upon the credit situation. Call money rose from 2 to 2;4% for
three days and then reverted to 2%. Banks secured the extra currency
they required largely by borrowing at the Reserve Bank upon the basis
of eligible assets, though there was also some increase in Federal Reserve
holdings of bankers acceptances and Government securities. The effect
of this operation on the position of the New York Reserve Bank is indicated by the reserve ratio, which was 76.0 on December 17, as compared
with 817 on December 10.
After a few days, currency withdrawals subsided to about normal for
the season and some of the currency previously withdrawn was returned
to the Reserve Bank. The banks subjected to withdrawals following the
closing of the Bank of United States generally met without difficulty
the demands upon them, with the single exception of the Chelsea Bank
and Trust Company, a State bank, not a member of the Federal Reserve
System, with about $12,000,000 of deposits, which was closed by the
State Superintendent of Banks on December 23.
With reference to the comparison of conditions the past
with those in 1907 it was noted in the "Times" of
month
E. G. Miner Named as Director of Buffalo Branch of
January 1 that veterans of the financial world recall that
Federal Reserve Bank of New York.
requirements had to be met in part
According to the Buffalo "Courier Express" of Dec. 27, in that year currency
certificates against clearing house
of
issuance
the Federal Reserve Board has appointed Edward Griffith through the
balances.
Miner of Rochester as a director of the Buffalo branch of
the Federal Reserve Bank of New York, for a term of three Federal Reserve System Urged to Buy Securities—
years. The paper from which we quote, added:
Purchase of $500,000,000 Worth of Government
Mr. Miner succeeds Arthur G. Hough of Batavia, who has served as a
Bonds Advocated by Representative Strong.
director six years.
Strong (Rep.), of Blue Rapids, Kans.,
Representative
George F. Rand, President of the Marine Trust Company, has been
Ranking Majority Member of the House Committee on
reappointed for a three-year term, beginning January 1st.
Mr. Miner is President of the Pfaudler Company of Rochester, a lead- Banking and Currency, Dec. 24 advocated that the Federal
ing manufacturer of glass lined tanks, with subsidiaries in London, England,
market at this time and buy
and in Baden, Germany. He is a director and a member of the executive Reserve System go into the
committee of the Lincoln-Alliance Bank & Trust Co. of Rochester, and a $500,000,000 worth of Government securities as they have
director of the Rochester Trust & Safe Deposit Co.
the right to do under the law. The "United States Daily"
Other directorships held by Mr. Miner include the Buffalo, Rochester &
26 stated this and added:
Pittsburgh Railroad, the Rochester Gas di Electric Corporation; Rochester of Dec.
This money, he said, would seek investment and in seeking investment
would assist in the revival of industry, relieve unemployment, and help
business, agriculture and commerce. His statement follows in full text:
The question has been debated as to whether or not the Federal Reserve
System should go into the market at this time and buy $500,000,000 worth
of Government securities RS they have the right to do under the law.
Those opposed to such action have pointed out that there is plenty of
money in the strong banks of the country and that interest rates are very
low. This is no doubt true. I think there is plenty of money if it was seeking investment.
Prior to this time I have not strongly urged such action by the Federal
Reserve System, but in the light of recent financial difficulties I believe the
New York Federal Reserve Bank on Money Market in time has come when such action should be taken. If $500.000.000 in cash
December—Call by Banks Upon Reserve Bank for should nowreplace $500.000,000 worth of Government bonds in the market,
money would seek investment, and in seeking investment would assist
Large Amounts of Currency Following Closing of thisthe
revival of industry, relieve unemployment, and help business.
in
Bank of United States—Paralleled Situation in 1907. agriculture, and commerce.
Capital Corp.; Pfaudler Sales Co. of Nevada; Pfaudler Werke. A. G.,
Germany, Enamel Metal Products Corp., Ltd., England; General AmericanPfaudler Corp.
After January 1st the Board of the Buffalo bank will be composed of
George F. Rani, Edwaid G. Miner, Lewis G. Harriman, President of the
M. & T. Trust Company; George G. Kleindinst, President of the Liberty
bank; Frederick B. Cooley, President of the New York Car Wheel Company; John T. Sytnes, President of the Niagara County Bank & Trust
Company, Lockport, and Robert If. O'Hara, managing director of the bank.
The Federal Reserve Bank of New York in its Monthly
Review dated January 1, commenting on the money
market in December notes that the closing of the Bank
of United States was followed by considerable withdrawals of deposits from several other banks,—these banks
calling upon the Reserve Bank for large amounts of currency. As a result, says the Review, "a net amount of
over 170 million dollars of currency was drawn from the
Federal Reserve Bank of New York in the week ended
December 13." It also says, "The large demand for currency, due in part to some apprehension of depositors,
paralleled in some respects the currency demand in 1907,
which was vividly in mind when the Reserve Act was
drafted." We quote as follows from the Review:
The principal influence on the money market during the past month
was a large demand for currency, due in part to the usual seasonal requirements for the holiday and in part to an unusual demand immediately
preceding and following the closing of the Bank of United States.
For a number of years past there had been no failure of any important
banking institution in this district. But on December 11 the Bank of
United States in New York City was taken over by the New York State
Superintendent of Banks at the request of the directors of the bank, after
persistent and vigorous efforts by the State Superintendent and other
bankers had not succeeded, under the limitations of action at such a
time, in discovering any practicable plan by which the bank might properly be kept open. The Bank of United States had about 400,000 depositors at 59 branches, and total deposits on the date of closing amounting to more than $160,000,000. It was a member of the Federal Reserve
System but not a member of the New York Clearing House. To meet
the situation in part, 23 New York banks offered to make loans to depositors of the Bank of United States up to 50% of the net amount
of their deposits. By the 30th of the month, 34,338 loans had been approved aggregating less than $13,000,000.
The closing of the Bank of United States was followed by considerable
withdrawals of deposits from several other banks doing business with a
somewhat similar type of customers in the same general localities. There
were indications that these withdrawals of deposits were accentuated by
the deliberate circulation of false and malicious rumors. These banks
called upon the Reserve Bank for large amounts of currency. Other
banks more-over drew more than the usual amounts of currency to
be prepared in the event of any possible exceptional withdrawals. Large
demands for currency from this cause came at a time of normal increase
in currency requirements for the holiday trade. As a result a net amount
of over 170 million dollars of currency was drawn from the Federal
Reserve Bank of New York in the week ended December 13.
Senate Chiefs Act to Limit Program—Supply Bills,
Muscle Shoals, Anti-Injunction and Wagner Measures Scheduled—Plan Avoids Extra Session—Borah
Holds That New Congress Should Meet for Additional Legislation.
Plans to expedite the passage of pending appropriation
bills and also the consideration of controversial legislation
so as to avert the necessity of an extra session were discussed on Dec. 29 by Senators Watson, McNary and Goff,
members of the Republican Steering Committee of the Senate. According to the New York "Times" while a definite
program was not agreed upon, the Senators expressed the
belief that the appropriation bills should be enacted before
any controversial measures such as are demanded by the
insurgent bloc are brought up. The "Times" dispatch added
in part:
The program proposed to be followed by the Republican leaders of the
Senate will include consideration of the Shipstead anti-injunction bill, the
Muscle Shoals legislation and the Wagner unemployment measure, if possible, before adjournment March 4. The Republican leaders have been
assured by prominent Democrats that no dilatory tactics would be adopted
toward the supply measures.
This promised co-operation, the Republicans say, should assure the disposition of all supply bills by the middle of February and leave more than
two weeks for action on the program sought by the insurgents.
Senator Watson expressed the belief that an extra session would be
averted, unless some emergency arose and if members of Congress confined
debate to matters confronting them.
Borah Still Dissents.
This view brought a prompt rejoinder from Senator Borah, who said that
business would not be injured by an extraordinary session of Congress, and,
In fact, that many business men were demanding the enactment of legislation which could not get through in the short session.
"It Is the consensus of opinion of most members of Congress and the
entire business world of America, so far as ascertainable, that an extra
session of Congress is to be avoided, except in case of extreme emergency,"
Senator Watson said. "I don't believe this emergency will exist if members
of Congress will forego speeches on extraneous matter and confine debate
to the immediate problems confronting theta."
Senator Borah is the most outspoken advocate of an extra session. He
feels that the regular session due to convene in December 1981, may acoam-
64
FINANCIAL CHRONICLE
plish little bec..ause of the approaching national conventions of 1932 and
that if farm relief, railroad consolidation, regulation oi bus transportation
and other legislation is to be enacted within the next 18 months, it
must be done in an extra session.
0. K. Davis of National Foreign Trade Council on
Foreign Trade of United States in 1930.
In indicating "How We Stand in Foreign Trade," 0. K.
Davis, Secretary of the National Foreign Trade Council
says:
In common with a general recession in trade the world over the foreign
trade of the United States dropped off measurably last year. The figures
for 1930. on the most recent estimates, show our exports to be approximately $3,850,000,000 and our imports about $3,050,000,000, a drop of
26% and 31%, respectively, from the figures of 1929.
Our foreign trade is still more than 30% greater in quantity, however,
than before the War. Its recesssion in volume during the past year was
only between 12 and 15%,as both our export and import prices for the year
were fully 15% lower.
Import prices dropped more sharply than export prices because raw
products and crude materials, which suffered the greatest price declines of
all commodities during the year, constitute the greater part of our imports.
This reduction in the prices of our principal imports compensated in
many cases for losses in our export trade. For example, although our
exports to Brazil were about 645,000,000 less for 1930 than for 1929, the
reduced price of coffee enabled American buyers to save slightly more than
that sum on our purchases of Brazil's chief commodity. In fact, the actual
quantity of our imports was within slightly more than 90% of our purchases
abroad last year, denoting an active buying market in the United States
for the materials entering into our manufacturing industry.
Among the staples which we exported in 1930 in larger quantities than
in 1929 were tobacco with an increase of 10%, gasoline and other light oils
with an increase of 12%, and wheat with an increase of 18%. The unit
prices of wheat and cotton, our principal raw material exports, dropped
off by approximately 40% from last year, accounting to a very large
degree for the decrease in our export values.
Among the manufactured goods which we sold abroad in larger quantities
last year than in 1929 were such important articles as electric batteries.
converters and transformers, vacuum cleaners, refrigerators and fans;
we also sold 50% more radio tubes and 15% more completed radio sets.
Our exports of rayon also continued to grow, with something like a 50%
increase in yarns, knit goods, ribbons and trimmings. Our continued
growth, in fact, in many typical items indicated that outstanding American
contributions to the world's standard of living can survive a world depression. Thus, we increased our sales in carbons and electrodes for electric
furnaces,asbestos manufactures,tin cans finished and unfinished,aluminum
plates, sheets and bars, tissue, crepe and toilet paper, boxboard and fibre
insulating board for wall construction, construction and metal-working
machinery, track-laying tractors, matches, motion picture films and coinoperated vending machines. Also, a new trade was added last year to
our export business in the form of $7,000,000 worth of shipments abroad
of sound equipment for motion pictures.
In looking forward to 1931 American foreign traders are analyzing their
markets carefully and are preparing for the increased volume of business
that is sure to develop. The resources ofour credit, as shown in the development of American foreign banking. branches, on the one hand, and of the
systems initiated by credit departments of our large manufacturers, on the
other, have been developed to a very high point of efficiency. Our services
of transportation and communication are better than ever before. Our
export departments are better trained and are more at home in foreign trade.
In short, we possess advantages over our position in the corresponding
slump in 1921 that are the result ofnine years'hard work. American foreign
trade has maintained its indispensable position in our general commerce
throughout the year and with better prospects for 1931 it is ready to resume
the steady advance it has made in all lines since the War.
National Foreign Trade Council to Meet in New York18th National Foreign Trade Convention to Be
Held May 27, 28 and 29.
For the first time since its foundation in 1914, the National
Foreign Trade Council will hold its 1931 annual convention
of American foreign traders in N. Y. City. The dates are
May 27, 28 and 29 1931 and the meeting will be the 18th
National Foreign Trade Convention. The invitation to meet
in New York was sponsored by the Merchants Association,
the Chamber of Commerce of the State of New York and
by other industrial and trade associations in New York.
Arrangements are being made for the attendance of more than
3,000 delegates, the largest meeting for which the Council
has ever planned.
Headquarters of the Convention will be at the Hotel
Commodore and delegates from more than 40 of the 48
States are anticipated, with representation from all lines of
industry, and from banks, railroads, steamship companies
and other foreign traders throughout the United States.
Reduced railroad rates for summer travel go into effect a
week before the foreign trade convention and will be available
from all sections of the country.
Taxable Motor Fuel Used in New York State During
October Exceeded by 7,000,000 Gallons Amount
Used in Same Month Last Year.
An increase of over 7,000,000 gallons of taxable motor
fuel was reported by distributors for October of this year
as compared with October 1929, according to Thomas M.
Lynch, Commissioner of Taxation and Finance, who has
issued gallonage figures for that month as compiled by the
Motor Fuel Tax Bureau. The total is below that of the
[VoL. 132.
previous month this year, says the Commissioner's announcement of Dec. 25, which stated:
The total of tax paid motor fuel reported in October of this year was
133,244,520 gallons as compared with 124,241,330 gallons for the same
month a year ago. Refunds allowed reduced the total 4,661,253 gallons so
that the net quantity taxable was 128,583,267 gallons. A year ago refunds
were allowed on only 2,867,176 gallons so that the net quantity taxable for
that month last year was 121,374,164 gallons. In September of this year
the net quantity taxable was 136,270,348.
The nontaxable fuel reoorted October 1930 included 416,136 gallons sold
to the United States government; 2,535,893 gallons sold to State and
municipal governments and 307,789 was used by distributors for nontaxable purposes. These items together with the refunds bring the total
quantity up to 136,503,337 gallons as compared with 126,971,368 gallons
for October 1929 and 142,343,077 gallons for September 1930. According
to the report the quantities sold to the United States government and to
the State and municipal governments were greatly in excess of the amounts
sold during October 1929, State and municipal governments purchasing
nearly a half million more gallons than in the same month a year previous.
Figures compiled for the six months ending October 31st of this year
show that 829,899,300 gallons of motor fuel have been reported by distributors as compared with 759,497,894 gallons during the same period a
year ago. The total quantity sold and used In this State over the six
months period for 1930 was 871,062,308 gallons and in 1929-788,900,547
gallons.
Investment of Approximately Two Billion Dollars
Represented in Motion Pictures According to
Halsey, Stuart & Co.
Motion pictures represent an investment aggregating
approximately $2,000,000,000, Halsey, Stuart & Co. point
out in a review of the industry published Dec. 29, picturing
the present condition of this vast business handling the
production, distribution and exhibition of films. In citing
additional figures to indicate the present great size of an
industry which started out with the nickel show at the beginning of the century, the review states that average
weekly attendance at motion picture theatres in the United
States during 1929 was estimated at 115,000,000; the number
of theatres in this country is well over 20,000, and their
seating capacity is something over 11,000,000; American
producers, who supply about 85% of all the films used
throughout the world, spend around $125,000,000 a year
in the production of pictures alone. The industry is also,
it is pointed out, one of the most important advertisers,
particularly in the newspapers, spending as high as $100,000,000 a year for this purpose.
Commenting on condition in the present year it is shown
that while final figures are not available from earnings,
the industry as a whole has enjoyed comparative prosperity,
saying:
"Results for the first half of the year were decidedly better than for
1929. Reports covering all the companies for the entire year will probably
not be uniformly satisfactory, but there seems to be every-reason for believing that the showing in the motion picture industry will compare
favorably with industries of other kinds."
Halsey, Stuart & Co. is one of the leading bankers in the
motion picture industry, having handled the financing,
either alone or with associates, of the Fox Film Corporation
and many of its subsidiary companies.
A. E. Peirce of Central Public Service Corporation
Regards Outlook for Public Utility Industry in
1931 as Promising.
According to Albert E. Peirce, President of the Central
Public Service Corp., "the outlook for the public utility
industry in 1931 appears to be decidedly promising." He
states that "this conclusion must be reached after careful
consideration of the four principal factors involved. These
are earnings, capital requirements, consolidations, public
relations." In part, Mr. Peirce also said:
From an earnings standpoint I see no reason to anticipate other than
improvement in 1931 as compared with the year just closed. It must be
borne in mind that 1930 was not a typical operating period for the public
utility companies, because they naturally felt the general industrial depression in common with other industries. . . .
It is reasonable to anticipate that even with only the same sale of gas
and electricity in 1931 the net profit should be greater than in 1930
because of the lower operating cost. However I believe that the coming
year will likewise see higher consumption of gas and electricity. One
reason is that in recent months there has been an increase in household
consumption, due to the progress of the utility industry in instituting
rates which would induce the employment of gas and electricity for new
and additional uses.
Another factor is the wider introduction of natural gas with a consequent
lower rate. These elements have substantially offset the decline in
industrial consumption in 1930 and should be more apparent in the new
year. Thus, in my opinion, the outlook appears favorable even without
any attempt to forecast how quickly industrial operations may be accelerated. If there develops any considerable improvement in general business
conditions in the fore part of the year then public utility profits will
benefit correspondingly.
In the matter of capital requirements I believe that the public utility
Industry is in a fortunate position. Taking advantage of the low money
market and favorable price situation, the public utility companies generally
have for several years carried forward an active program of construction.
JAN. 3 1931.]
FINANCIAL CHRONICLE
In consequence, the utility plants are distinctly modern, in probably the
highest state of efficiency in the history of the industry, and of sufficient
capacity to meet demands upon them for some years to come.
In view of this circumstance I anticipate a widespread reduction in new
construction by the public utility industry this year, with expenditures
being confined almost wholly to maintenance work, which must be conducted year after year. Because of the high degree of stability, satisfactory
earnings record, and favorable money market, those companies that might
require it should encounter not the slightest difficulty in obtaining
additional capital.
There is every reason to believe that the tendency toward consolidation
will be extended in the public utility industry. The advantages of low
cost of financing, group operation, expert technical and engineering supervision and the superior operating talent—which must necessarily redound
to public advantage—are so patent as to dictate an extension of the
spheres of large units in the industry.
There has been some concern lest this movement be impeded through
political agitation, but on this score likewise I do not believe there need
be cause for serious misgivings. Present regulation of utility companies
seems quite adequate to protect the interest of customers and investors
alike, and I believe the public is aware of this fact.
Decision on Indiana "Blue Sky" Law—State Supreme
Court Holds Act Unconstitutional in Part.
A brief reference to a decision on the Indiana Securities
Act appeared in our issue of Dec. 20, page 3990. The
following (from Chicago) relative to the decision, is from
the "Wall Street Journal" of Dec. 20:
65
Constitution and the State's lawmakers had in mind," according to Luther
F.Symons,State Banking Commissioner of Indiana. Depositors in approximately 100 Indiana banks in receivership or liquidation will be aided by
the decision, Symons estimated.
While a compilation of Indiana's bank failures of the last 10 years has
not been completed. Symons said that beginning with 1923 and extending
to last September, a total of 155 banks had closed their doors. Of that
number, he said, 61 were sold or consolidated with other institutions and
so are unaffected by the decision, but 52 went into receivership, and their
stockholders thus are affected. Some of the 42 remaining banks which
are in liquidation also will be affected, he said, and with those closed since
last September will make the number directly concerned in the ruling
approximate 100.
The method of assessment upheld by the court is known as "double
assessment." The decision was made in an appeal from the Wells County
Circuit Court, growing out of the failure of the Studebaker State Bank
at Bluffton.
R. H. Aishton of American Railway Association Says
Policy Adopted by Railroads Constitutes Outstanding Development as to Carriers in 1930—
Respite from Rate Reductions and Legislation
Adversely Affecting Rates Among Requests.
The policy recently unanimously adopted by the railroads
of this country and deemed necessary in order to assure
continuance of adequate transportation service, constitutes
the outstanding development, so far as the railroads are
concerned, of the current year 1930, according to R. H.
Aishton, President of .the American Railway Association,
who, in a statement issued Dec. 29, also has the following
to say:
Supreme Court probably will be asked to hand down the final decision
in the case of State of Indiana vs. Charles B. Brillhart and Alexander B.
Shipman, in which Judge Orbo R. Deahl of Indiana Superior Court No. 2
at South Bend recently gave verbal opinion, upon quashing the State's
indictment, that the Indiana Act for Protection of Investors was in part.
unconstitutional.
In adopting this policy the railroads seek only an equal opportunity to
Judge Deahl stated that he wished the case to go to the Supreme Court compete with other forms of transportation, operating as common carriers,
and delivered his opinion verbally, so that no previous record might inter- when it corhes to handling the commerce of the nation. They are not
fere with the proper setting of the case.
asking for any special privileges. They simply want all forms of common
Clause in the Indiana Act in question was paragraph C of Section 5, carrier transportation to be treated alike.
seany
which
in
transaction
isolated
which provides exemption for "an
The policy of the railroads asks for (a) a respite from rate reductions
curity is sold, offered for sale, subscription, or delivery by the owner
suspension by regulating bodies, both intra-State and inter-State, and
thereof, or by his representative for the owner's account, such sale or offer and
action that will increase the expenses of the carriers; (b) a respite
for sale, subscription or delivery not being made in the course of repeated from
legislative efforts of either the national or the State legislatures
and successive transactions of a like character by such owner, or on his from
affect rates or increase the expenses of the carriers;
account by such representative, and such owner or representative not being that would adversely
withdrawal of governmental competition both through direct operaa
(c)
the underwriter of such security."
as indirectly through subsidies;
This Section of the Act'revering "Isolated"sales is said to be incorporated tion of transportation facilities as well
and, (d) a fairly comparable system of regulation for competing transin at least general form in the Acts of nearly 20 other States.
In commenting on the questioned clause the judge reasoned that it was portation service.
The railroads have found it necessary to take this action largely because
undoubtedly incorporated in the Act to permit private owners of securities
of traffic
to dispose of them, while at the same time decision is left to the court to of the marked slackening that has taken place in the growth
determine what such an isolated transaction is. The element of time, since 1920 contrasted with the average annual increase for the preceding 30
the judge pointed out, could give rise to wide variance in particular Inter- years. This diminution in the growth of both freight and passenger traffic
pretation of the law. The court also cited several constitutional points has come largely from a number of reasons. Among them are the increases
in the use of private automobiles, motor trucks and buses; the increase
in the law under the 14th Amendment and Bill of Rights.
General pattern of the Indiana Act follows the suggestions of Investment in trans-continental tonnage handled through the Panama Canal, and the
increase in traffic handled over inland waterways.
Bankers' Association of America.
The situation that prompted the formation and adoption of the policy
by the railroads does not take into consideration the situation they have
State Supervision of Utility Issues in Pennsylvania faced in 1930, when, due to the business depression, traffic and net earnChairman of Public Service Commission Advocates ings of the roads were greatly reduced. The situation that existed during
-the current year is, in the opinion of rail managements, more or less of a
Complete Control Over Security Flotations.
temporary nature and will eventually right itself. The situation that has
The following from Harrisburg, Pa., Dec. 26, appeared been gradually developing over a period of years, however, is more
serious and gives the railroads great concern, especially if they are to
in the "United States Daily":
efficient and dependable rail
The Pennsylvania Public Service Commission should be given jurisdiction continue to give the public the adequate,
past eight years.
over the issuance of utility company securities, in the opinion of the Chair- transportation which the nation has been receiving for the
Preliminary reports, which will not become complete for three weeks,
man of the Commission, William D. B. Ainey.
Mr. Alney explained the present law and the attitude of the Commission Indicate that loading of revenue freight in 1930 will total 45,851,000
In a letter to a State Senator who inquired about the matter. The letter cars, a reduction of 6,969,000 cars, or 13% under that for 1929, and
6,738,000 cars, or 11% under 1928.
follows in full text:
Measured in net ton miles, the volume of freight handled in 1930 will
Allow me to acknowledge receipt of your letter of Dec. 15, making inquiry
Commission
Service
Public
concerning be, complete reports are expected to show, approximately 424 billion net
in reference to the "position of the
the advisability of amendments to the public service company law, giving ton miles, a reduction of 14% under 1929, the highest previous year, and
the Commission jurisdiction over the issuance of securities by public a reduction of 11% under 1928.
utility companies."
Capital expenditures in 1930 totaled $875,000,000, an increase of
The only provision of the law at present in reference to the issuance of approximately $21,000,000 over such expenditures in 1929 and $198,securities by utility companies are In Section 4 of Article 3 of the public 000,000 above those in 1928.
service company law of July 26 1913. Under these provisions, utility
Preliminary reports for the year show that the Class I railroads as a
companies are obliged to obtain the approval of the Commission for their whole had a net railway operating income in 1930 of $898,000,000, or a
of
notification return of 3.41% on their property investment. Class I railroads In 1929
security issues. They are obllged only to file certificates
on or before the date of issuance, in accordance with forms prescribed had a net railway operating income of $1,275,000,000, which was a return
by the Commission under the provisions of the Act. Compliance with the of 4.95% on their property investment. Gross operating revenues in 1930
provisions of the Act has, of course, been made mandatory upon the com- amounted to approximately $5,365,000,000, a decrease of 15.5% under
panies since the effective date of the law.
those for 1929, while operating expenses amounted to $3,985,000,000, or a
The Public Service Commission is now, and for many years past has
decrease of 12.5% under the preceding year.
been, firmly of the opinion that the issuance of securities by public utility
The estimate of earnings for the 12 months of 1930 is based on complete
companies should be under the complete jurisdiction and control of the
estimate by the Bureau of Railway
Commission. Prior to the passage of the Act in 1913 it had been pro- reports for the first 10 months and an
net railway
posed that the law should contain provisions for such jurisdiction by the Economics as to earnings in November and December. The
for
the 10 months' period totaled $772,440,927, compared
Commission. But the law as finally adopted did not contain such pro- operating income
1929.
in
period
for
corresponding
the
$1,116,066,690
with
visions, and it is the Commission's opinion that theabsence ofsuch authority
he rate of return on the basis of property investment by years follows:
T0
192
Is a marked defect in the law.
4.98
1926
0.21
Successive Governors, Attorneys General and members of the Legislature
4.29
2.84
1927
have been advised of the Commission's judgment in reference to this subject. 1921
4.64
1928
19223.58
Over one-half of the State Commissions in the country have full and un4.95
1929
4.33
questioned powers over the issuance of utility company securities. Such 192
3.41 •
1930 (estimated)4.21
3
24
4.74
1925
should,
the
State
the
in
this
under
in
issues
Commission's judgment, be
jurisdiction of the Public Service Commission.
Passenger traffic in 1930 was less than for any year within the last 20,
amounting to 27 billion passenger miles. This was a reduction of 42%
under the record year of 1920,
Indiana Bank Stock Double Liability—Bank ComThe railroads in 1930 installed in service 77,400 new freight cars and
missioner Sees Aid to Depositors in Recent Decision 770 locomotives compared with 84,894 freight cars and 762 locomotives
1929. Ownership of freight cars by Class I railroads on Dec. 1 1930
in
of State Supreme Court.
was approximately 2,270,809 cars, or 1.4% less than on Dec. 1 1923,
From Indianapolis the "Wall Street Journal" of Dec. 23 while the average carrying capacity per car owned increased 3.1 tone per
car. This was also a decrease of 93,863 cars under the high ownership
reported the following:
September 1925. The number of locomotives owned by Class I
The recent decision of the Indiana Supreme Court holding that stock- period,
1 was 55,985, a decrease of 8,894 locomotives, or 15.9%
holders of banks are liable for assessments in sums equal to the amount railroads on Dec.
with the same date in 1923, but the average tractive power
compared
of their stock. in addition to the original amount of their stock, has "dartfled and established once and for all time what the framers of Indiana's Increased 6,305 pounds per locomotive, or 16.2%.
66
FINANCIAL CHRONICLE
The railroads in 1930 established a new high record in the average
speed per hour of freight trains, an average of 13.7 miles having been
attained. This average, which was an increase of one-half of one mile
over the highest previous average established in 1929, represents the
average per hour for al/ freight trains between terminals, including yard
and road delays, no matter from what cause.
The railroads in 1930 also obtained the greatest efficiency on record
in the use of fuel by road locomotives. An average of 120 pounds of
fuel was required during the past year to haul 1,000 tons of freight and
equipment, including locomotive and tender, a distance of one mile. This
average was the lowest ever attained by the railroads since the compilation of these reports began in 1918, being a reduction of five pounds
under the best previous record established in 1929.
Record efficiency also marked the use of fuel in the passenger service,
an average of 14.5 pounds having been required to move each passenger
train car one mile in 1930 compared with 14.8 pounds in the preceding
year.
The policy adopted as necessary to the continuance of
adequate transportation service was referred to in our issue
of Dec. 6, page 3648.
Opposition to State and Federal Owned Barges Voiced
in Resolution of National Association of Owners of
Railroad and Public Utility Securities.
In a resolution adopted Dec. 10 opposition was expressed
by the executive committee of the National Association of
Owners of Railroad and Public Utility Securities to "the
policy of Federal and State Governments competing with
privately owned railroads by means of Government owned
and operated or subsidized barges and other facilities."
The resolution follows:
Whereas. The railroads of the United States are passing through a period
of economic readjustment that involves every phase of our national life, and
Whereas, The railroads have been called upon to sustain unduly heavy
burdens in this period of severe trial.
Therefore Be It Resolved, That the National Association of Owners of
Railroad and Public Utility Securities is opposed to the policy of Federal and
State governments competing with privately owned railroads by means of
Government owned and operated or subsidized barges and other facilities,
purchased and maintained at the expense of the taxpayers. In the development of waterway transportation due attention should be paid to adequate
toll charges in order that the railroads will not be placed at a disadvantage
in competition. As far as possible such waterway transportation should
afford a supplementary service to the railroads.
Further Be It Resolved, That Federal regulation of inter-State transportation by motor busses and motor trucks is essential to the welfare of the railroads and the transportation of the country in the public interest. There
should also be adequate taxation of motor transport companies comparable
to the taxation levied upon the railroads.
Further Be It Resolved, That all agencies of such highway transportation
should be required to obtain certificates of public convenience and necessity
and provide adequate guaranty of their financial responsibilities, including
insurance. Rates of such agencies should be regulated by Federal or State
bodies and adherence to these rates required as in the case of the railroads:
thereby eliminating discriminatory rates. Railroads should be given full
permission to own and operate motor vehicles, either freight or passenger,
supplementary to their rail service. All restrictions relating to such rights
under present law should be remedied.
Further Be It Resolved, That all agencies operating pipe lines for the transportation ofany commodity should be subject to the same degree of taxation
and regulation as the railroads.
Further Be It Resolved, That river, lake and ocean vessels competitive to
the railroads and subject to the jurisdiction of the Federal Government shall
carry an equalized burden of taxation and be regulated to the same extent
as the railroads.
Further Be It Resolved, That regulatory bodies should grant the railroads a
respite from the constant whittling away of rates and from compulsory
expenditures for non-productive properties which merely increase their
operating expenses.
Further Be It Resolved, That this Association,representing a large accumulation of capital invested in the railroads, has confidence in the security of
that capital and its further productivity not only for its owners but the nation at large. This Association believes that the railroad's remain and will
retain their position as the principal means of transportation. While the
Association recognizes the inherent right of operation of all useful methods
of transportation it insists that the carriers by rail shall be given an equality
of opportunity, under fair terms of competition.
"Railway Age" Criticizes Secretary Hurley on Subsidies
to Railways and Waterways.
The "Railway Age," in an editorial in its Dec. 6 issue,
criticized Secretary of War Patrick J. Hurley for having,
in his address before the Mississippi Valley Association, in
St. Louis, on Nov. 25, used the Government aid given to the
development of railways more than a half century ago as an
argument in defense of huge expenditures upon inland
waterways at the present time.
"Is Secretary Hurley not aware," asks the "Railway Age,"
"that conditions in this country have changed within the
last half century? In all parts of the country means of
transportation were then wholly inadequate, and in most
parts of the country consisted of horse-drawn vehicles on
highways provided by nature. The Government gave aid
to the railways to help provide means of transportation
where almost none existed. In spite of the Government aid
given, those who then invested in railroads incurred great
risks and often later suffered heavy losses." Continuing,
the "Railway Age" says:
[VOL. 132.
"At present the country has adequate means of transportation and the
best railway service in the world. Government expenditures upon waterways are made now to promote competition with the railways and to enable
shippers to get their freight carried at rates that are only about one-half
the total cost of transportation, the burden of bearing the other one-half
being imposed upon the tax-paying public. There is a wide difference
between Government aid formerly given to provide means of transportation
where they did not exist, and Government aid given now to provide means
of transportation to compete with other and adequate means of transportation that do exist, and which represent a huge investment of private
capital.
"Furthermore, the railways have largely or wholly reimbursed the
Government for the aid long ago given to them, while it is not contemplated that the beneficiaries of waterway development shall ever reimburse the Government for a penny of its expenditures on waterways. The
railways to which money was advanced by the Federal Government have
repaid it with interest. The land given to the railways was of very little
value at that time, and railway development enabled the Government to
sell its own land at prices much higher than would otherwise have been
possible.
"Finally, every railway that was given land grants was required in
return to pay higher taxes or make the Government reduced rates. The
Illinois Central always has paid the State of Illinois 7% of its total
earnings from its land grant lines. A decision of the Supreme Court of
the United States more than 60 years ago held that Government materials
and troops must be carried at 50% of the regular rates by most land
grant railways, while some of them have had to carry Government material
and troops for nothing. Land grant railways have had to carry the mails
for 20% less than their regular rates, the resulting saving in mail rates
alone during the five-year period ending with 1928 having averaged
$2,050,000 per year. In 1928 the aggregate saving to the Government
in both freight and passenger rates resulting from the terms under which
land grants were made to the railways was $4,360,000.
"The Government has no land the value of which will be increased by
'the development of waterways. It will get no reductions of rates for
transportation via them as it has from the railways as a result of its
aid to them. Why did not Secretary Hurley allude to any of these
facts I"
Slason Thompson Draws Attention to Action of Railroad Employees in Protesting Against Federal and
State Governments Subsidizing Unregulated Trans-.
portation Agencies Paying Little Taxes Set Up in
Competition With Railroads.
From the Dec. 8 issue of the "Bulletin of Railway News
and Statistics," of which Slason Thompson is editor, we
quote the following:
"Railroads have suffered, their passenger traffic has been cut almost in
half, and whatever hurts the railroads hurts the country."—
Arthur Brisbane in the Chicago "Herald-Examiner."
And yet Mr. Brisbane heads the pack in full cry for the appropriation of
hundreds of millions of public funds to put the railroads out of business.
Happily railway employees have at lastseen the handwriting on the wall,and
two employees of a small Class /I road down in Texas have issued the folowing statement, under the heading:
"Taxing One Industry to Subsidize Its Competitor is Tyranny"
"At a meeting of the employees of the Texas and Pacific and Abilene &
Southern Railways voluntarily called by Ira Dorton, the oldest man in
the service, the following statement of facts and petition was prepared for
presentation to the Hon. Oliver F. Cunningham, State Senator and the
Hon. Robs. M. Wagstaff, Representative, and to the people of Abilene
and Taylor County. It was unanimously adopted by 68 employees.
"The Government, State and City has subsidized every transportation
agency that has been set up in competition with the railroads which give us
employment. Through the benefits received in subsidies, exemption from
ad valorem taxes and the starvation wages paid to their employees, our
competitors have, by cutting rates, so depleted the traffic of the railroads
that our employment is in jeopardy. This subsidized competition first took
our passenger traffic, then our less than car load freight and now they are
taking the only thing left, namely the car load business.
"The Class One Railroads (which does not include short lines like the
Abilene & Southern having gross operating revenues ofless than $1,000,000)
have about twenty billion dollars invested in road, exclusive of equipment.
The builders acquired the right of way and built the railroads with private
capital. The owners must maintain them and pay taxes thereon. No competitor of the railroad has any such investment. They have no such maintenance expense for the reason that the Government and State maintains
their road for them. Nor do they have any such taxes to pay for the reason
that they have no financial interest in the road used.
"During the year 1929 the railroads expended the enormous sum of
$862,701,113 in maintaining road, exclusive of equipment. They also paid
the sum of $402,630,307 in taxes. These figures are so stupendous that
they are beyond our comprehension and go clear over our heads, therefore
we will reduce the taxes down to one county and apply that tax account
to the City of Abilene and Taylor County, and also make comparison with
our competitors. Since Jan. 1 1930, or for the current year, the railroads
have paid into the public treasuries in our city the sum of $43,894.94 in
ad valorem taxes. In comparison we will submit a list of our competitors
and show the amount of ad valorem taxes assessed against each as follows:
Abilene Transportation Co._ - _$ 7.25 Rountree Truck Line
Nothing
Merchants Fast Motor Lines_ - _50.25 Johnson Truck Line
Nothing
Fort Worth Warehouse Co._ Nothing Anson Truck Line
Nothing
Texas
Transportation Co.Nothing Southland Greyhound Lines _Nothing
W.
Carl Rose
Nothing Lone Star Stage Line
Nothing
Harellgree Truck Line
Nothing Miller Bus Line
Nothing
Howard Truck Line
Nothing West Texas Coaches_ _
-Nothing
L. L. Tucker Truck Line_ _ _Nothing Air Ship Lines
Nothing
"For the same taxing period in which our employers were assessed the
amount of $43,893.94, all of our competitors combined were assessed for
State, county, city and school taxes the aggregate Min of $57.48 and even
that nominal sum has not been paid. Only two of our competitors have
been assessed any taxes at all and those two by the city only. Not one
single name in the list can be found on the tax rolls at the Court House.
"It takes a veritable truck load of tariffs to supply a local freight office
in conformity with the law. Our employers must publish these tariffs at an
enormous expense and the employee is expected to familiarize himself with
each one of them. When the trucker needs a rate in connection with his
business he telephones us, and we must under the law quote him our rates.
He then goes out and cuts our rate low enough to take the traffic away from
JAN. 3 1931.]
FINANCIAL CHRONICLE
us. We must adhere strictly to the tariff, or subject ourselves to the heavy
penalties of the law, which apply to us individually. Our competitors pay
little attention to the limited regulation applying to them and they make
such rates as are necessary to take our business away from us. If 25 cents
per 100 pounds will not do it they make the rate 15 cents. They also
pay rewards to the employees of shippers to tip them off when the shippers
have freight to move. No shipper knows what freight rate is paid by his
competitor.
'Our competitors are able to cut our rates not only by reason of subsidies
received and exemption from taxes. but by the payment of low wages to
their employees. The maximum wages paid to a truck driver is less than
one-third of the pay received by one member of a train crew. Many of the
truck drivers receive only 215.00 per week.
"In consequence of the business taken away from the railroads by this
subsidized, tax free and low wage competition,railroad forces in the City of
Abilene have been reduced more than 50 men,whose annual pay is estimated
at the sum of $75,000. Unless we are given relief from this intolerable
situation further reductions in forces are inevitable. The men who are
employed have far more arduous duties to perform.
"We do not criticise our local taxing authorities. It is not always possible
for the tax a..essor to ascertain where the truck and bus lines are domiciled.
Some of them have headquarters outside of out county and are not subject
to taxation here. The railroads must pay taxes in all counties in which they
operate.
"In making this overture we do not ask for favors. It is a demand for
our constitutional rights. If the trucks and buses can displace the railroads
by fair competition we will have no grounds for protesting, and we will
accept the inevitable without murmuring. But the business of the railroad
is being destroyed by use of enormous Slims of the taxpayer's money,and as
taxpayers we have a right to protest. The State has no lawful right to
destroy the business of the railroad, and take away our employment, by
subsidizing a system of transportation at public expense. Taxing one industry to subsidize its competitor is tyranny.
"As railroad employees, and as loyal citizens, we most earnestly petition
our law makers, and all good citizens generally to correct an intolerable condition. We sincerely urge that the subsidies now being granted to our
competitors be removed, and that they be placed on the same plane with
rhe railroads in respect to taxes. This can be accomplished by establishing a
fen mile tax on freight handled, and passenger mile tax on passengers
handled, large enough to offset the benefits received by reason of the State,
building and maintaining a road for them, and appropriating such tax to the
counties in which trucks and buses operate.
T. R. DODSON,Chairman.
C. F. ROWDEN, Secretary."
What happened down in Taylor County, Texas, is happening to every
railway in the Republic.
Operating nearly 260,000 miles of line;
With an investment of over 226,000.000,000:
Whose employees have been reduced from 2,072,971 in 1920 to 1,485,906
in September 1930;
Whose revenues from passengers have decreased from $1,297,782,645 in
1920 to $872,305,740 in 1929;
Who spent $872,193,290 for maintenance of plant and $1,217,131,843
for maintenance of equipment in 1929;
Who paid $405,878,257 in taxes in 1929. the whole of which has been
confiscated to subsidize under taxed road and waterway competition.
Cut in Railway Fare in Texas Meets Motor Bus Competition.
From a special to the New York "Times" from Austin,
Texas, Nov. 26, it appears that application has been made
by the Texas & Pacific RR. to the Railroad Commission for
authority to reduce its passenger rate between Fort Worth
and Texarkana,247 miles,from 36-10 cents to 2cents a mile.
The 2-cent fare was placed in effect on its division between
Fort Worth and Big Spring, 267 miles, a few weeks ago and
has been successful in meeting motor bus competition.
The Texas Mexican RR. has been permitted to reduce its
passenger fare between Laredo and Corpus Christi, 161 miles,
from 3 6-10 to 2 cents a mile to meet motor bus competition.
Applications for similar reductions, it was stated, will be
made soon by the Southern Pacific and the Missouri Pacific
railroads.
Retention of Ohio Tax Committee Recommended—
Specialists Fail to Decide Between Imposition of
Personal Income Tax or Levy on Intangibles.
Governor Cooper's taxation committee, according to its
preliminary report just submitted, is in favor of the repeal
of the existing property tax on intangibles, household goods
and personal belongings, and replacement of these losses of
revenue either by a low rate intangible tax or a personal
Income tax. "We are not yet prepared to say which method
of raising the additional funds—from intangible property
or personal income—is to be preferred," the report says.
A substantial decrease in incorporating fees and the repeal
of the property tax on automobiles to be replaced by an
increase in the license fee was urged.
The committee recommended that the Committee on Research be retained to assist the General Assembly While
the new tax plan is being constructed. These advices are
from Columbus (Ohio) accounts, Dec. 19, to the "United
States Daily," from which the following is also taken:
Retrenchment Only Remedy,
That part of the report containing the committee's recommendations
follows in full text:
1. In our opinion the new system of taxation should produce approximately the same amount of revenue for the State, counties, schools, cities,
67
and townships from taxation as at present, approximately $354,000,000
per annum, exclusive of special assessments and miscellaneous non-taxation
receipts. The change should not be made an excuse for levying an increased
tax burden on the people of the State. We have not considered it within
the scope of the function of our committee to point out economies in
governmental expenditures which might result in a net reduction in the
volume of taxation, because the subject is even broader and more difficult
than that of taxation, and can be accomplished more by an aroused local
pulic opinion than by legislative action.
We do not feel, however, that the loss in revenue resulting from any
decrease in the valuation of real property (as opposed to a reduction in
rate) should be made up from other sources. If any such decrease occurs,
It is evidence that the district is not longer as wealthy as it once was and
can no longer afford the mime scale of expenditures. As in the case of
an individual who finds himself poorer, retrenchment in expenditures is
the only remedy. It is true, however, that the further impoverishment
of the poorer school districts may require some small increase in the State
aid school fund. In general, however, the aim of tax reform should be to
produce approximately the same general revenue in a more equitable and
less burdensome manner.
2. We recommend a substantial increase in the powers of the Tax
Commission of Ohio and in the appropriations for its salaries and expenses. Whatever system of taxation is adopted, Its success will depend
as much on the administration of the system as on the system itself, and
a reasonable expenditure will not only make an equitable administration
possible but will repay itself tenofld in receipts. In this connection we
urge the establishment of a bureau concerned solely with the study of the
actual working of our tax system, and the making of recommendation for
further improvement and equalization. This bureau might be under the
Tax Commission, or independent from the actual administration of the
law.
Repeal Recommended.
3. We recommend the repeal of the existing property tax on intangible
property, such as deposits, stocks, bonds, mortgages and other investments.
The ineffectiveness, inequality and consequent injustice of this tax was
probably the principal reason for the plumage of the new constitutional
amendment. We estimate that this repeal would result in the loss of
approximately $22,752,000 per annum.
4. We recommend the repeal of the,tax on household goods and personal
belongings estimated to produce net about $1,800,000. This tax is most
unequally enforced, difficult to collect, and has little relation to real
values or wealth.
5. We recommend that these losses be replaced either by a low rate
tax on intangibles or a personal income tax. The lose from the repeals
would be as follows: Repeal of tax on intangibles, $22,752,000; repeal of
tax on household goods, $1,800,000.
In our judgment this amount can be raised from Intangible property or
persona/ income. We are not yet prepared to say which method of raising
the additional funds is to be preferred.
The new tax system must also make provision for the school district
public libraries, because the constitutional amendment has automatically
repealed the provisions which exempted their tax levy under section 7639
from the Fifteen 31111 Limitation. The amount raised under such exempting provisions amounted to about $4,000,000.
6. We recommend the repeal of the property tax on auomobiles, which
now produces between $4,000,000 and $5,000,000 a year. This tax is awkward to assess and even more awkward to collect, with the result that it
is only about 50% effective. To replace this tax, we recommend the
increase of the license fee on automobiles, so that each owner will on the
average pay at least the additional amount he would now pay as personal
property tax if he returned his automobile at its true value and paid the tax.
Decrease in Corporation Fees.
7. We recommend a substantial decrease in the fees of the incorporation of Ohio corporations. These fees are higher than in most other
States, and discourage the formation of corporations under the laws of this
State. We do not believe this change will result in any substantial decrease
In revenue.
With the exception of Recommendation 7, we have omitted any recommendations regarding the reduction of business taxes in Ohio because the
facts underlying such taxation are not yet fully available, and the yield of
any alternative taxes has not been determined. We have only to say in
general that in those businesses in which Ohio concerns must compete substantially with similar concerns in other States imposing a lower tax
burden, there should if possible be a decrease in the Ohio taxes. The loss
in revenue will in the end be more than made up by the increased wealth
and increased pay roll created directly and indirectly by the location and
carrying on of such business in Ohio.
We do not intend to imply that reductions in other Wiliness taxes recommended in the reports of special committees listed above, should not be
made, but as yet we are not prepared to take a definite position for or
against such reduction.
Though the committee has not been able in the limited time available at
this date to work out and prepare a new tax system, we feel that it has
made a substantial contribution toward the solution of the problems, and
that the reports of its subcommittees, particularly the reports of the Committee on Research and Constitutional Law, will be found most useful to
those charged with the formulation of the new laws. Also, the reports of
the special subcommittees will bring clearly to their attention the special
problems of different groups of taxpayers.
Plans Announced for Four System Railroad Merger—
President Hoover Makes Public Statement Following Conference of Railway Executives—New England Lines not Included.
President Hoover announced Dec. 30 that an agreement
had been reached on a proposal to consolidate the different
railways in official classification territory, except New England, into four independent systems embracing the territory
east of the Mississippi and including the Virginian Ry. and
and the New York Central RR. The proposed consolidation,
which must be submitted to the I.-S. C. Commission for its
approval, was agreed upon, the President stated, as a result
of conferences between Gen. W. W. Atterbury, President of
the Pennsylvania RR.; Daniel Willard, President of the
68
FINANCIAL CHRONICLE
Baltimore & Ohio RR.; P. E. Crowley, President of the
New York Central RR., and M. J. Van Sweringen, of the
Nickel Plate RR., and others.
The understanding according to reports is that the agreement provides for acquisition of the Delaware, Lackawanna
& Western by the New York Central, the control of the
Lehigh Valley and the Wheeling & Lake Erie by the Van
Sweringens, while the Pennsylvania will receive right of
way over the Nickel Plate tracks to Buffalo. This last it
is said, is a concession by the New York Central, which has
opposed the use of the Nickel Plate trackage by the Pennsylvania. The control of the Reading and Jersey Central lines
passes to the Baltimore & Ohio. The impression is that
control of the Chicago & Alton, recently purchased by the
Baltimore tic Ohio, will be retained by the latter. The
Virginian Railway, it is thought probable, will be given
jointly to the Chesapeake & Ohio and the Norfolk & Western,
which is controlled by the Pennsylvania. The Wabash is
likely to remain with the Pennsylvania.
The place of the Western Maryland is another phase of
the agreement not disclosed. Some months ago the Baltimore & Ohio, which controls the Western Maryland, was
ordered by the Inter-State Commerce Commission to dispose
of its holdings in the line. The disposition made of the Pittsburgh & West Virginia also remains a secret of the negotiators.
Criticism of President Hoover's course in furthering the
merger plan came from Senator Couzens of Michigan,
Chairman of the Senate Committee on Inter-State Commerce.
According to Senator Couzens, the President's public
endorsement of the consolidation plan was "most unethical,"
in that it was an interference with the duty of the InterState Commerce Commission, the members of which are
appointees of the President. Senator Couzen's suggestion
was that the President sought to intimidate the Inter-State
Commerce Commissioners and influence their action, even
though the President points out in his statement announcing
the plan that it must be submitted to the Commissioners
for final decision. Mr. Couzens also objected to the President's support of the project on the ground that the Senate
has passed a resolution, sponsored by him, to suspend consolidations until after further investigation. The resolution
is pending in the House.
Senator McKellar, Democrat, of Tennessee, also criticized
the President for "prejudging" the merits of the plan by
comment on it before the Inter-State Commerce Commission
had received it.
The assertions of Senator Couzens brought a sharp
response from Senator Fess of Ohio, who spoke in his capacity
as a member of Mr. Couzens's Inter-State Commerce Committee. Mr. Fess contends that President Hoover had
directly followed desires of Congress that the railways themselves should initiate consolidation proposals and submit
them to the Inter-State Commerce Commission. The
President, Mr. Fess noted, had expressly stated that the
plan of the roads must be submitted to the Commission.
As to Senator Cousens's intimation that the President,
through endorsing the four-systems agreement, was seeking
to intimidate the Commission into accepting it, Senator
Fess retorted that Mr. Couzens was resorting to intimidation
in order to carry out his private opposition to the intent
of the law.
In spite of the opposition of Senator Couzens and others,
the impression prevails that the consolidation of the railroads has an excellent chance of being put into effect. But
It is anticipated that because the plan is at variance with
the Commission's proposal of five great systems in the East,
that body will take a long time before announcing its conclusions.
The first conference of representatives of the Eastern
trunk lines following President Hoover's announcement of
agreement by the conferees on a four-party plan in Eastern
territory took place yesterday (Jan. 2) at the Pennsylvania
Station offices of General W. W. Atterbury, President of the
Pennsylvania. It was announced that no statement concerning deliberations of the conferees would be made until
late in the day and that possibly no statement will be forthcoming at that time.
President Hoover's statement reads as follows:
As a result of meetings of General Atterbury, Mr. Crowley, Mr. Willard,
Messrs. Van Sweringen and other representatives of the Pennsylvania, Now
York Central, Nickel Plate, and Baltimore and Ohio railroads, a plan for
consolidation of the different railways in official classification territory
(except New England) into four independent systems was agreed upon for
presentation to the Inter-State Commerce Commission.
The four new systems embrace the territory east of the Mississippi
River. including the Virginian Railway on the south, the New York Central
on the north.
[vol.. 132.
These negotiations have been In progress for some weeks, and were
undertaken at my suggestion in the hope of effecting the consolidation
policies declared by Congress in 1920 and especially at this time as a contribution to the recovery of business by enlarging opportunity for employment and by increasing the financial stability of all the railways, and
particularly some of the weaker roads.
The Transportation Act passed by Congress in 1921) provides for a consolidation of railways into a limited number of strong systems in order to
maintain broader competition, more adequate service, simplification of
rate structure, lower operating costs and in the long run lower rates to the
public.
During the past 10 years a possible grouping of the roads so as to carry
out the law has been under constant discussion. The Inter-State Commerce
Commission has no power to compel such consolidations. They can only
be effected upon initiation of the carriers. During this period a number of
negotiations have been undertaken in respect to these railways, with view
to carrying out the wishes of Congress, but they have proved abortive. A
year ago the Inter-State Commerce Commission issued a suggested plan
for consolidating these roads into five systems. This plan, like others.
has met with objections which apparently made it an unsolvable basis.
These uncertainties and delays over nearly 10 years have seriously retarded development of the railways and have presented a desirable growth
in many directions, and have diminished their ability to compete with other
forms of transportation. Such questions as electrification, linking up of
different railroads, development of terminals and many other major improvements have been retarded because of uncertainty with respect to
the position which particular roads are to occupy in the permanent grouping.
It is my understanding that the plan provides for the protection of the
interests of the employes and full consideration of the interest of the various
communities and carriers out the requirements of the law in protection of
public interest generally. The presidents of the major systems have agreed
upon the many details of the plan with the exception of a minor point, which
Is left to arbitration.
The plan, of course, must be submitted to the Inter-State Commerce
Commission, who have the independent duty to determine if it meets with
every requirement of public interest.
Representatives Parker,Chairnaan of the House Committee
on Interstate and Foreign Commerce, and Rayburn, ranking
minority member of the Committee, stated orally that the
Inter-State Commerce Commission has ample authority,
under the Transportation Act of 1920, to approve the consolidation of the railroads in the official classification territory
(except New England) into the four trunk lines proposed.
Mr.Parker said the consolidation is desirable in the interest of
better and more economic service and of lower rates. Mr.
Rayburn said it is a matter that is up to the railroads and
the Commission without influence from any source higher
up. Mr. Parker said:
I think it is very desirable and in the public interest to have agreement
on four trunk lines In the part of the country west of the Hudson,east of the
Mississippi and approximately north of the Ohio.
It will be in the public interest because the railroads will be in a position
to give better service, helping the weaker lines financially by tacking then
on to the strong lines. There is no question that the railroads are in a bad
financial condition from falling off of traffic and with the competition that
comes with the shift of transportation conditions in this country. It will
give the railroads a chance to develop terminals, which projects have been
held up because ofconflicting interests. The net result will be better service.
lower rates and more economic operation.
Land
Directors of Chelsea Bank and Trust Company of New
York Express Hope That Constructive Program May
Be Worked Out for Reorganization of Bank—
Banking Superintendent Broderick Issues Statement of
Condition.
The directors of the Chelsea Bank and Trust Company
of New York (which was closed by State Banking Superintendent Broderick on December 23, because of the heavy
withdrawal of deposits) announced on Dec. 28 that many
proposals have come to them looking to a reorganization.
"These proposals," said the directors, "are being carefully
considered and the directors are hopeful that some constructive program may be worked out, but in any event
the assets of the bank are more than sufficient, the directors believe, to pay all depositors in full." The statement
by the directors follows:
"The Directors of the Chelsea Bank and Trust Company cannot help
but feel greatly distressed over the closing of the bank, which did not
grow out of any internal condition. They realize the hardship and
suffering that has resulted to its many depositors, who, through loyalty
and faith in its officers, left their deposits in the bank, many in spite
of the efforts of others to induce them to withdraw their funds. Some
of these depositors are sorely in need of these funds which cannot now.
under the law, be withdrawn. We hope that the Clearing House Association may see its way clear to give these depositors substantial and
prompt assistance in the form of loans against their deposits.
"The directors, their relatives and associates own over 50% of the
stock of the bank, involving a tremendous investment, and if liquidation
becomes necessary will suffer very substantial losses.
"The run on the bank which led to its closing was caused by the circulation, maliciously the directors believe, of rumors that the bank was
unsound and, for that reason, was shortly to be closed. The fact is that
the bank was safe, sound and solvent, but the withdrawals caused by
these malicious rumors left no choice to the Superintendent of Banks
other than to close the institution for the preservation of its assets.
"The directors desire to commend the efforts and activities of Mr.
Joseph A. Broderick, Superintendent of Banks, who worked untiringly
with the officers and directors to overcome the harmful effects of the
false reports which were circulated about the bank, and to express their
appreciation for the very substantial support which was given the honk
by some of the large banking institutions of the city in this crisis.
JAN. 3 1931.]
FINANCIAL CHRONICLE
"Many proposals have come to the directors looking to a reorganization.
These proposals are being carefully considered and the directors are
hopeful that some constructive program may be worked out, but, in any
event, the assets of the bank are more than sufficient, the directors
believe, to pay all depositors in full. As evidence of his faith in the
solvency of the institution, one of the directors, controlling the largest
single deposit in the bank, one million dollars, permitted this amount to
remain on deposit."
On the same day (Dec. 28) the State Superintendent of
Banking, Joseph A. Broderick, issued the following statement showing the condition of the bank on the date of
closing, viz. December 23.
The Superintendent of Banks has released the following
Statement of Condition of the Chelsea Bank and Trust
Company as shown by the books at the date of closing,
December 23, 1930:
Assets—
Cash on hand and in banks
Checks drawn on other banks
Investments—Bonds
Stocks
Mortgages
$5,073,459.81
403,380.52
131,033.45
Loans and discounts—Secured
Unsecured
$5,536,619.64
6,387,815.95
$2,784,036.32
120,838.74
5,607,873.78
11,924,435.59
58,000.00
14,782.00
268,984.97
52,100.14
56,512.90
Ranking house (Claremont office)
Other real estate
Furniture and fixtures
Other assets
Customers' liability account letters of credit
Total
Liabilities—
Capital stock
Surplus
Undivided profits
Reserves for interest, taxes and contingencies
Due depositors—Preferred:
Government and public funds, secured
Other public funds
Trust funds
$20,887,564.44
22,500,000.00
1,000,000.00
106,505.80
3,606,505.80
892,216.18
$523,941.08
450,000.00
77,366.14
1,051,307.22
Due to other depositors:
Checking accounts
Special interest accounts
Due to banks
Certificates of deposit
Certified and official checks
$5,773,990.49
4,437,345.33
2,814.72
104,612.82
336,074.76
69
the approval of Mr. Broderick. In view of the Department's report on
the.bank's condition and the efforts now under way for its reorganization,
it would not be surprising if such a program were to be presented to
Mr. Broderick shortly.
The same paper in its Dec. 31 issue stated:
Three Plans Considered.
Three definite proposals for reorganization of the closed Chelsea Bank
and Trust Company were being considered yesterday by officials and
directors of the institution, with the prospect that a concrete program for
a resumption of business may be presented shortly for approval to Joseph
A. Broderick, Superintendent of the State Banking Department, it was
revealed last night by a director of the bank.
One of the proposals under consideration was for a combination of
banks to take over the bank. Another was a merger proposal from a
big banking institution and the third was from a group of financiers who
have offered to reopen the bank with new capital and with a new set of
executives.
It was learned that the second proposal, namely the one calling for a
merger with a big bank, probably would be accepted, with the first offer
by the combination of banks as an alternative.
No move to seek the approval of Mr. Broderick for any reorganization
plan that may be decided upon will be made until after the expiration of
the legal ten-day period permitted to stockholders to file suit against the
Superintendent of Banking in opposition to the closing of the bank.
The period will expire on Jan. 3.
It was considered likely, however, that more time will be required to
reach an agreement for reorganization, the successful conclusion of
which was regarded yesterday as well within the realm of possibility.
In line with the plans for reorganization of the bank, Mr. Broderick
yesterday took the first step toward liquidation of the bank's assets when
he got an order from Supreme Court Justice Black permitting him to sell
bonds valued at $5,314,000 owned by the bank "at market prices or
better, in the discretion of the Superintendent of Banks."
In his petition Mr. Broderick said that these bonds were worth at least
$500,000 in excess of the $2,000,000 for which they have been pledged
for loans with the National City Bank and other financial institutions,
and that it would be in the interest of the depositors and other creditors
to sell the bonds.
The closing of the bank was referred to in our issue of
December 27, page 4156.
Bankers Corporation, City Financial Corporation and
Two Other Affiliates File Petition in Bankruptcy
Following Termination of Equity Receivership.
4,626,184.22
56,512.90
Four affiliates of the Bank of United States, the Bankus
$20,887,564.44
Total
Corp., the City Financial Corp., the Delaware Bankus Corp.,
From the New York "Times" of Dec. 29 we quote the and the Municipal Financial Corp., following the suggestion
following:
of Federal Court Judge Woolsey, on Dec. 31 filed petitions
Although Mr. Broderick would not comment on the statement of the in bankruptcy. Irving Trust Co. was appointed receiver by
institution's assets and liabilities, department officials looked upon it as
Judge Woolsey. In its account of the bankruptcy proceedencouraging and holding out the prospect of a satisfactory adjustment.
ings the New York "Journal of Commerce" said:
10,654,838.12
(Total deposits 511,706,145.34.)
Rills payable—Secured
Liability under letters of credit
Regard Conditions as Good.
This week the equity receivership of the Bankus Corporation and the City
While the total deposits on the date the bank's affairs were taken over Financial Corp., which had been created on suit by Municipal Financial
by the State show a shrinkage of slightly more than $7,000,000 from the Corp. several weeks ago, were dissolved on the ground that the condition of
deposits shown in the regular September statement of the bank, officials the companies did not warrant their remaining under the protection of the
of the Banking Department nevertheless were inclined to regard the equity court.
bank's condition as good.
It was revealed on Wednesday that the Equitable Casualty & Surety Co.
The $6,397,815.95 listed as unsecured loans, it was pointed out, rep- had held 6,000 shares of Bank of United States stock, carried at more than
resent "business paper" secured by "character and business ability." $1.000.000. The suspension of the bank created difficulties for the insurIt was ascertained by officials that the proportion of such loans unsecured ance company, which was placed in the hands of the State Insurance Deby collateral to the total loans of $11,924,435.59 is not abnormally high. partment by the order of Justice Joseph M.Callahan.
The secured loans are protected mostly by stocks and bonds readily
Thomas F. Behan, Acting Superintendent of the Insurance Department,
convertible into cash and only in small proportion by real estate, which is examining the condition of the Consolidated Insurance & Indemnity Co..
is considered "slow" security because of the time required to convert more than 27% of whose stock is owned by City Financial and less than 3%
it into cash.
by Bankus Corp. It was reported that the company holds 7,000 shares of
It was also disclosed by officials that the $4,626,184.22 Hated as "bills Bank of United States stock.
payable" include $2,000,000 in loans, that a repayment of $2,600,000
The petition in bankruptcy filed by Bank of United States affiliates made
would be made to the bank within the next two days, and that another no statement regarding the financial condition of the companies.
$2,000,000 could be realized by selling the bonds. There is every chance
"The resolutions passed by the directors,"said the statement,"recite that
of working out a satisfactory adjustment of the bank's affairs, officials In their judgment these corporations are solvent, that the assets are in excess
declared, the unknown quantity being the liquidation of loans.
of the liabilities, but that the corporations are unable to meet their obligaWhile not venturing to hazard an opinion as to when reopening or tions promptly as they mature. It is believed that placing these affiliated
reorganization of the bank may be expected, officials of the State Bank- corporations in the hands of the Federal Court will assure a unified admining Department declared that an adjustment might be expected in a istration of their affairs and that, with the assistance and co-operation of the
saonth or two. It was the view of officials that complete liquidation of Superintendent of Banks, who, representing the Bank of United States, is
the bank would not be necessary and that its reopening or reorganization the largest creditor of these coporations, their assets will be properly cooappeared probable.
served for the benefit of the creditors and stockholders of the corporations,
Mr. Broderick, it was disclosed, has not yet been informed of the which will, of course, operate to the benfit of the depositors of the Bank of
plans now being considered by the bank's board of directors for reorgani- United States."
zation or reopening of the bank, and it was assumed that as soon as
On Dec. 29 the equity receivership of the Bankers' Corp.
such plans reach maturity they would be presented to him for approval.
A similar situation exists with regard to the hope expressed by the and City Financial Corp., affiliates of the closed Bank of
board of directors to make it possible for depositors to obtain loans on United States, were terminated by order of Judge Woolsey,
their deposits through banks affiliated with the Clearing House Associaof the Federal District Court, this city. Reference to the
tion.
It is understood that such loans, if made available, would be up to 50% appointment of the Irving Trust Co. as receiver of both
of deposits and probably at 5% interest. This arrangement would be organizations
appeared in our issues of Dec. 20, page 3984.
similar to that made for the benefit of depositors of the closed Bank
Regarding the conclusions of Judge Woolsey we quote the
of United States.
According to the "Times" of Dec. 30, a director of the following from the "Wall Street Journal" of Dec. 30:
In his opinion, Judge Woolsey stated: "If it were in my power, I should
bank declared that plans are maturing for reorganizanot hesitate to direct the parties before me in these suits, the Municipal
tion of the bank under new auspices with addition of new Financial
Corp., Bankus Corp., and City Financial Corp., to immediately
capital. The account further said:
file voluntary petitions in bankruptcy, but I am precluded from doing so
He revealed that new men will be placed in charge of the bank and
that both its staff of officials and virtually its entire administration will
be reorganized.
This information was in line with that revealed on Sunday, when Joseph
A. Broderick, State Superintendent of Banking, made public his Department's report on the condition of the bank and which was interpreted
by Department officials as reflecting the solvency of the institution.
At the office of the State Banking Department it was emphasized that
the reopening of the bank could be permitted by the Department only
after a readjustment in its administration, and that at least some officials
of the bank will have to give way to others as a condition of reopening
Of the institution. Any program of reorganization would have to receive
by a decision of the United States Circuit Court of Appeals for this
district.
"I cannot help wondering what the Supreme Court would have to say
to any of the opposing parties if the present cases wherein a subsidiary
incorporated in Delaware but owned to the extent of more than 99% by
the defendants, was, as A may fairly be said, in effect summoned fro=
their outside, office to bring suit against them and thus to found a Federal
jurisdiction in equity. The defendants and plaintiff, though incorporated
in different States, were in effect one corporation."
Judge Woolsey's conclusions, based on the report of the receiver, are
summarized as follows: Except for $14.000 in cash, the defendants are
substantially without liquid aeaeta. While there may be some
valttalgo
70
FINANCIAL CHRONICLE
equities in real estate, or other assets owned by the defendants, or their
subsidiaries, these assets are, or appear to be, held by others, chiefly the
Superintendent of Banks under claim of pledge. A large block of securities
was turned over to the Bank of United States on Dec. 11, under circumstances which require proceedings for their recovery.
"Careful study will have to be given in considering what funds, if any,
should be spent to save the alleged equities above referred to, and the
receiver has not even the necessary funds for such a study, opinion states.
"There are heavy present cash requirements, chiefly in connection with
real estate, to conserve the equities referred to.
"If it can be decided that it would be wise to meet these cash requirements they cannot possibly be met by the receiver because of a lack of
free funds in any substantial amount."
In terminating the receivership Judge Woolsey intimated that he was
leaving it to the defendant corporations, their directors, stockholders and
creditors, to work out a solution which he thought an quity receivership
could not possibly cope with.
From the New York "Journal of Commerce" of Dec. 30
we take the following:
The termination of the equity receivership was ordered in response to
a request for instructions by the Irving Trust Co., which had been appointed
receiver, in which it was indicated that the companies possess less than
$15,000 in cash balances and in substantial free liquid assets, while
$1,000,000 or more is immediately needed for payments of rents, taxes and
other charges on real estate assets. The petition stated that the Bankus
Corp. and its various affiliates owe approximately $16,000,000 to the Bank
of United States, which appears as chief creditor.
"The apparent main single item of assets of the complainant and defendant companies consists of 119,869 Bank of United States and Bankus
units carried on Nov. 30 1930, at an amount in excess of $18,000,000, or
an average cost of *157.50 a unit."
Whether or not the companies, as suggested in the opinion of Judge
Woolsey, will file petitions in voluntary bankruptcy could not be learned
last night. A petition in bankruptcy could also be filed by the Superintendent of Banks acting in behalf of the Bank of United States, as creditor
to the Bankus Corp. Officials of the Banking Department last night gave
no indication as to whether or not such steps would be taken.
Holdings of Ratans.
The petition of the receiver in equity stated that the Bankus Corp. and
its affiliates hold various real estate interests but that it is impossible
at present to determine whether they can be realized.
"These defendant companies," it is declared, "through their subsidiary
and allied companies, appear to have certain interests in various real
estate enterprises. How far these holdings represent any realizable values
Is impossible to estimate at this time. To gain adequate information as
to such questions and to ascertain the precise interests of the defendants
and their subsidiary allied and associated companies in such properties will
require considerable time."
The petition then states that a large sum of money for various carrying
charges would be needed at once to conserve these real estate interests.
"Whether or not it is desirable for this receiver of these defendants to
endeavor to secure such sums, or whether it is possible to secure them,
is a matter concerning which the receiver cannot as yet express any
opinion. To advance new moneys in such projects, even if such new moneys
are obtainable, involves the question as to whether such projects are economically sound and whether there are equities in the various properties
worth saving in the interests of the creditors of these defendants."
The companies, it is stated, hold $2,600,000 of the notes of subsidiaries
and affiliates, "but it would appear as a matter of first impression that
these notes do not represent bankable collateral or assets capable of
realization for the immediate financial necessities which appear to exist
in reference to these receiverships."
Practically the entirety of the securities in subsidiaries owned by the
Bankus and the City Financial Corp. area now in possession of the Banking Department, it is stated in the petition. The exception is represented
by a small group held as collateral by the Chase National Bank as security
for loans extended to Bankus and City Financial. The circumstances under
which the securities were taken into possession of the Banking Department
were such that "in the opinion of counsel, your petitioner is entitled to the
immediate return of said securities."
In his termination of the equity receivership Judge Woolsey states that
in view of the complicated and illiquid condition indicated in the affairs
of the companies, proceedings in bankruptcy would be the proper remedy.
Three grounds are given for the termination of the equity receivership in
the summary of the opinion : The intercorporate relationship of the
plaintiff, the Municipal Financial Corp., and the defendants, Bankus and
City Financial; because successful issue of the present receivership appears
improbable and because remedies exist outside of equity, namely bankruptcy proceedings.
City Financial Corp.
The opinion of Judge Woolsey says that the Bankus owns more than 99%
of the stock of its co-defendant, the City Financial Corp., and that the
former owns 63% and the latter 86% of the stock of the plaintiff, the
Municipal Financial Corp.
In eight of the subsidiaries City Financial holds 100% stock ownership.
In another its own 85% and in another 50%. It holds 27% of the Consolidated Indemnity Insurance Co. stock, while Bankus holds slightly less
than 3%. The Bankus Corp. has six subsidiaries in which it holds 100% of
the stock and one in which it holds 50%.
"The diagram of these subsidiaries states on it. face that it does not
cover certain corporate properties included in a repurchase agreement of
January 1930 between the City Financial Corp., the Bankus Corp., the
Municipal Financial Corp., and the Safe Deposit Cos. of the Bank of
United States.
"These corporate properties subject to the repurchase agreement are the
Seventy Wall Street Corp., San Remo Towers, Inc., the Abenad Realty Corp.,
which owns the Squibbs Building, and the Sun Holding Corp., otherwise
called the Morris Avenue Apartment House."
The New York "Times," Dec. 30, said, in part:
Reports on &belt:Marie&
The petition of the Irving Trust Co. stated that the Bankus and City
Financial Corps. have in allfree cash balances in bank of less than $15,000;
that they do not appear to have any substantial free liquid assets; that it
has been represented to the receiver that the son of upward of $1,000,000
is immediately necessary for the purpose of payment of taxes, rents,
Interest, carrying charges, construction costs, ke.; that either the defendant
of complainant companies own and have in their possession $2,600,000 of
notes of various subsidiary or allied or associtted companies which do not
[VOL. 132.
represent bankable collateral or assets for the immediate financial necessities which appear to exist in reference to the receiverships; that the
apparent single item of assets of the complainant and defendant companies
consists of 119,869 Bank of United States and Bankus units valued in
excess of $18,000,000, and that it appears also that practically all of
the stock of the complainant corporation is owned by the two defendant
corporations.
The information that the complainant and defendant corporation owe the
Bank of United States $16,000,000 was obtained from the State Superintendent of Banking, the Irving Trust Company revealed in its petition.
Equitable Casualty and Surety Company Closes—
Troubles Laid to Bank of United States Losses.
The following is from the New York "Times" of Jan. 1:
As a result of the loss of more than *1,000,000 from investments in Bank
of United States stock, the Equitable Casualty & Surety Co. doing business
in 31 States, has been forced to close its doors. Supreme Court Justice
Callahan granted the petition yesterday of the State Insurance Department
to take over the affairs of this company.
Harold Spielberg, Chairman of the board of directors of the company,
said that it was the loss incurred in its investment in Bank of United States
which placed the company in its present position.
The company's assets will amount to between $4,000,000 and $5,000,000,
he said. This compares with gross assets of $6,633,105 and admitted assets
of 85,345,633 reported as of the end of 1929.
The brunt of the losses will fall on stockholders of the company, he said.
Policyholders will lose nothing, inasmuch as they will be paid in full out of
reserves required by law. The liquidation of the company will be undertaken immediately by Thomas F. Behan, Acting Superintendent of Insurance.
Contributions to United Hospital Fund Through
"Bankers and Brokers Committee" in Excess of
$100,000.
James Speyer, Chairman, and Charles H.Sabin, Associate
Chairman, of the "Bankers and Brokers Committee" of the
United Hospital Fund of New York, are much gratified
by "Wall Street's" response to this year's collection, contributions having been received in excess of $100,000. In
addition to $54,130 previously acknowledged, the following
contributions have been received to date:
$2,500 Richard S.Childs
George F. Baker
$150
George F. Baker Jr
2,500 S. Winston Childs Jr
150
Lazard Freres
2,500 H.Content & Co
150
Mr.& Mrs.Starling W.Childs 2,000 1Tornblower & Weeks
125
Hallgarten & Co
1,500 Abraham & Co
100
Winthrop W. Aldrich
1,000 Mortimer N.Buckner
100
Stephen Carlton Clark
1,000 Buell & Co
100
Hartman K. Evans
1,000 Calvin Bullock
100
Goldman, Sachs & Co
1,000 Burnham,Herm & Co
100
Joseph P. Grace
1,000 Callaway,Fish & Co
100
Harris, Forbes & Co
1,000 George C.Clark
100
Hayden, Stone & Co
1.000 Coleman dic Co
100
Mr.& Mrs.Jesse Hirschman-- 1,000 George F.Crane
100
"A Friend"
1,000 George W.Davison
100
Lehman Brothers
1,000 Moreau Delano
100
Mr. & Mrs. Van Santvoord
Maurice.... Farrell
100
Merle-Smith
1.000 Fenner & Beane
100
1,000 Finch, Wilson & Co
Dunlevy Milbank
100
1,000 Freeman & Company
Jeremiah Milbank
100
Mrs. Percy R. Pyne
1.000 H.T.S. Green
100
Mrs. Moses Taylor
1,000 Fred. H.Greenebaum & Co--- 100
Title Guarantee & Trust Co
1.000 John Henry Hammond
100
Mrs. Anna Woerlshoffer
1,000 Harriman & Co
100
H.E. Ward
750 B. Harrison & Co.. Inc
100
Joseph F. Feder
500 G.Beekman Hoppin
100
Ileidejbacb, Ickelheimer & Co 500 D.S.Iglehart
100
Ladenburg,Thalmann & Co__ 500 Adrian Iselin
100
James B Mahon
500 C. M. Keys & Co
100
The Prudence Co., Inc
500 W. Thorn Kissel
100
Ernest Rosenfeld
500 LaBranche & Co
100
500 Louchhelm, Minton & Co--- 100
Charles A.Sackett
Shearson,Hammlll & Co
500 S. Clifton Mabon
100
Georges. Brewster
400 Miss Jennie L. Mackay
100
Asiel & Co
250 "A Friend"
100
Stephen Baker
250 M. J. Meehan & Co
100
Halle & Stiegiitz
250 George McNeir
100
Mrs. William II. Moore
250 Edwin G. Merrill
100
National City Organizations__ 250 Mrs. Dunlevy Milbank
100
Mr. & Mrs. George B. Post__
250 Charles H. Mitchell
100
Bernon S. Prentice
250 Mr.& Mts.Stephen C.Millett 100
"F.S."
250 Newburger,Henderson & Loeb 100
Albert Tag
250 Carl H.Pforzheimer & Co____
100
Wertheim & Co
250 A. B. Pouch Memorial FounMr. & Mrs. Fred'k W.Allen
200
elation, Inc
100
Edwin M. Bulkley
200 J. K. Rice Jr. & Co
100
William Halls Jr
200 H. C. Richard
100
P. B. Keech & Co
200 Col. H. H. Rogers
100
Maitland, Coppell & Co
200 George Emlen Roosevelt
100
Charles W. McAlpin
200 Henry Ruhiender
100
Gates W. McGarrah
200 Samuel Sloan
100
Pierson
Lewis
200 W. R. K. Taylor
100
Mr.& Airs. Samuel Sachs____
200 E. R. Tinker
100
Samuel Sachs
200 Morris Walzer
100
Edwin A. Seasongood
200 Harold T. White
100
Schuyler,Chadwick&Burnham 200 Richard Whitney & Co
100
Edward Townsend
200 Other smaller contributions-- 3,377
Mr.& Mrs. Paul Baerwald__ _
150 Previously acknowledge
54,130
Miss Barbara R. Childs
150
Edward C. Childs
150
$101,782
A list of the earlier contributors appeared in our issue of
Nov. 22, page 3309, and on Nov. 8, page 2991, we gave the
names of those making up the committee.
Attorney-General Bennett of New York Proposes Investigation into Affairs of Bank of United States—.
Grand Jury Inquiry by District Attorney Crain—
Statement by President Marcus—Stockholders'
Suit Against Officers for $50,000,000.
Proposed inquiries into the affairs of the Bank of United
States, of New York, by the State Attorney-General and
by District Attorney Crain were announced on Dec. 27.
From the New York "Times" of Dec. 28 we quote the following:
A grand jury investigation of the conduct and management of the
closed Bank of United States beginning to-morrow morning was promised
JAN. 3 1931.]
FINANCIAL CHRONICLE
by District Attorney Crain yesterday at about the same time that State
Attorney General-elect John J. Bennett Jr. informed the stockholders'
protective committee that he would start an exhaustive investigation into
the affairs of that bank as soon as he takes office on Jan. 1.
From Washington Representative Hamilton Fish Jr.. of New York,
announced that as soon as Congress reconvenes he would have his committee investigating radical activities resume its inquiry to determine
whether there was any basis for reports that Communists spread false
rumors that started the runs on the Chelsea Bank & Trust Co. and possibly
the Bank of United States. The "Daily Worker," central organ of the
Communist party in the United States, in a front page denial under the
head of "Red Rumors and Capitalist Lies!" disclaimed all responsibility
for reports affecting the condition of banks.
"We brand these 'disclosures' as pure fabrications." the statement said.
"We declare that the perpetrators of these 'disclosures' are willful and
deliberate liars."
Crain Acts To-morrow.
Announcing his plan to start a grand jury investigation, District-Attorney Crain said:
"I purpose instituting an inquiry into the conduct and management of
the Bank of United States. I have asked Judge Levine of General Sessions
to continue one of the December panels of grand Jurors. I shall appear
before them on Monday morning and outline the evidence which will be
submitted. The proceeding is primarily for the ascertainment of facts.
Its propriety and desirability arise from the unusually large number of its
depositors and the non-business but working class to which so many of
them belong, it will be reassuring to many that an independent and impartial source will look into the affairs of the bank from the standpoint of
those provisions of law for the protection of all having business with banks."
Mr. Crain declined to supplement his formal statement.
Mr. Bennett announced his plans for a State investigation of the conduct
of the Bank of United States to a delegation of the stockholders' protective
committee, headed by City Court Justice Louis Goldstein, who called
upon the Attorney-General-elect in his offices at 32 Broadway In the
forenoon. He promised the investigation after the delegation has presented
to him a copy of a resolution adopted on Friday night at a meeting of the
71
nesses by the closing and a vast number of whom have deposited their
life savings in this institution.
"It was my thought that while efforts at reorganization were pending
any attacks on the bank would naturally and necessarily be harmful to
such efforts and cannot in any way help the stockholder. I was laboring
in a constructive way and for this purpose have devoted a vast amount
of my time and still will be willing to do so."
In its Dec. 30 issue the New York "Times" said in part:
What he characterized as "considerable progress" in plans for reorganization and reopening of the Bank of United States was revealed yesterday
by Samuel R. Rosoff, subway contractor and owner of 6,000 units of
Bank of United States and Bankus Corporation stock, following conferences at his office, 521 Fifth Avenue, with officials and stockholders of
the bank and outside financial interests.
Asserting that he was "very optimistic" concerning the bank's future,
Mr. Rosoff said that negotiations have proceeded far enough to justify
the hope that after the first of the year it will be possible to make definite
announcement concerning the reorganization plans. Mr. Rosoff promised
to make an "important announcement" in this connection this afternoon,
but would not discuss the details of yesterday's conferences or reveal the
Identity of the participants.
Holds Bank of United States Statement.
From officials of the State Banking Department it was learned yesterday that Mr. Broderick has had in his possession for a week a revised
balance sheet of the Bank of United States, but that he was holding its
publication in abeyance pending an additional report by his examiners
on a more complete valuation of the bank's assets.
Officials of the department said that, as in the case of the Chelsea Bank
and Trust Co., Mr. Broderick will not permit the Bank'of United States
to be reopened with its present officials and directors in charge, in whose
capacity as bankers he has expressed little faith, but whose integrity he
does not question. . . .
Crain Warns Gossipers.
stockholders in Brooklyn.
yesterday afternoon cautioning the pubstatement
a
Crabs
issued
Mr.
immediately
shall
I
-General
Attorney
"On my assumption of the office of
Section 303 of the penal law by circulating false statemake an investigation to determine if any fraud has been committed and lic against violating
I shall use every power of my office to see that justice is done," said Mr. ments concerning banks.
"At this time," said Mr. Crain, "the public should be cautioned that
Bennett. "I believe that is all that it is necessary to say. I am a man
Section 303 of the penal law makes it a misdemeanor for a person willof few words, and action is what you want."
fully and knowingly to circulate or transmit to another any statement or
rumor, written, printed, or by word of mouth, which is untrue in fact
Say There Is Ample Evidence.
and which directly or by inference is derogatory to the financial condition
He gave that assurance after the stockholders' delegation, through
or which affects the solvency or financial standing of any bank, savings
their spokesmen, Justice Goldstein, former Magistrate Harry 11. Gordon,
bank or banking association.
Joseph Shapiro, Noah Feldman and Hilda Weinstein, Associate Counsel,
"There is no institution that might not be affected by false and malicious
had assured him that there already was on record ample evidence that
and the welfare of the working man,the business man and the finanrumors,
code
penal
the stock and general corporation laws, the banking law, the
cier is protected by the maintenance of confidence where confidence is
and other statutes relating to the protection of depositors had been violated.
justified in financial institutions." . .
Israel H.Preskin,Chief Associate Counsel to the stockholders'committee.
Superintendent Broderick revealed last night that he has turned over
accompanied them. Max D. Steuer, Counsel, was unable to be presof the bank's affairs to District-Attorney Crain. He said he would
records
ent. . . .
place the same records also at the disposal of the Attorney-General's office
Broderick Won't Comment.
whenever called on to do so. He added that any district attorney of any
Joseph A. Broderick, State Superintendent of Banks declined to com- of the respective boroughs where the Bank of United States had branches
Friday
was entitled to the same information.
ment on any of the charges made at the stockholders' meeting on
night. However, he did confirm the statement by Mr. Steuer to the effect
Mr. Broderick announced that 3,496 depositors of the bank filed applicaSteuer
Mr.
to
permission
refused
had
Banks
that the Superintendent of
tions for loans yesterday, bringing the total number ofapplications to 46,119.
the
of
investigation
their
on
examiners
bank
the
of
reports
the
examine
This represents well above 10% of the depositors of the bank, numbering
to
records ofthe Bank of United States. Mr.Broderick explained that be had almost 400.000.
no legal authority to allow access to those records.
The Bank of United States Depositors' and Stockholders' Protective
Nor would Mr. Broderick comment on the announcement by Mr. Ben- Association, which has obtained from John J. Bennett Jr., Attorney-Genassumption
his
upon
immediately
bank
the
investigate
he
that
would
nett
eral-elect, a promise of a sweeping investigation of the bank's affairs imof office.
mediately upon his assumption of office, Jan. 1, announced last night
depositors
by
loans
Mr. Broderick announced that 1.364 applications for
that it will hold another public meeting of its members, Jan. 5, in Cooper
the
day,
bringing
the
during
of the Bank of United States had been made
Union.
total applications up to 43,623. Up to Dec. 24 the total claims on which
Justice Louis Goldstein is President of the association and Max D.Steuer
depositors based their applications amounted to $32.397.000. Under the is Counsel.
loans
obtain
up to
Ask Assessment of Stockholders.
plan of the Clearing House banks, enabling depositors to
50% of their balances, the borrowing limit on Dec. 24 was approximately
Depositors' Committee of the Bank of United States held a
United
The
Broderick.
Mr.
to
$16,000,000, according
meeting last night in the Hiss Building, 425 Lafayette Street, and adopted
Previous items regarding the Bank of United States, resolutions dissociating themselves from the Bank of United States StockAssociation.
which closed its doors Dec. 11, appeared in these columns holders' and Depositors'
To meet the needs of depositors, the resolution demanded assessment of
Dec. 13, page 3812; Dec. 20, page 3982;and Dec.27,P.4157. stockholders
of the bank to the amount of $25,000,000. as the State law
According to the New York "World" of Dec. 29, Bernard Is said to provide.
Another demand was that in any adjustment the small depositors be
K. Marcus, President of the Bank of United States, on
first and in full.
Dec. 28 offered his co-operation to District Attorney Crain paid
The committee is making arrangements to confer with Mayor Walker
and Attorney-General-elect Bennett. In his first public at City Hall at 2 p. m.Friday to ask his assistance in behalfof the depositors.
Sunday the committee will hold a meeting in Cooper
statement since the bank was closed by the State, Mr. On Friday evening or on
Union or in Webster Hall to report on the Mayor's reply.
Marcus said, the "World" reported:
The committee declared that it had withdrawn from the protective assoThe officers of the bank welcome the investigation into its affairs by ciation, or the "Steuer association," as the committee termed it, because
responsible public officials and, of course, will afford those officials every Mr. Steuer was opposed to the $25,000,000 assessment proposal and to
co-operation in the discharge of their duties in this respect. I have nothing the demand that the small depositors be taken care of first.
to hide in my connection with the bank and will freely testify concerning
A stockholder suit charging the officers and directors of the
its affairs. I am confident that is also the attitude of the other officers
Bank of United States with incompetence and negligence in
of the bank.
From the same paper we take the following:
Rosoff Denies Acting for Others.
Samuel R. Resat, subway contractor, named by Mr. Steuer Friday
night as the man sent to him by officers of the bank to intercede with
him not to expose any irregularities he might have discovered, yesterday
denied he was representing anyone but himself. Mr. Rosoff, who is a
large depositor and stockholder of the Bank of United States, wrote to
Mr. Steuer as follows:
"It is unfortunate that you should have created this impression, for
the reason that I at no time acted as a representative for the directors or
officers of the bank, nor at any time did I act to bring any messages from
them. I came to you as a depositor of the bank and expressed my opinion
for what I think to be the best interests of the 450,000 depositors whose
money is tied up in the bank.
Hopes for Reorganization.
"I have been working for some time in an effort to effect it possible a
reorganization and reopening of the bank. I do not attempt to dissuade
anyone from taking any measures of any kind to hold directors and officers
accountable for any wrongs that they may have committeed or for any
acts they may have committed resulting in the loss of a single dollar to
any depositor.
"It is my opinion that a reorganization of the bank and a reopening
thereof would be the speediest and most effective way to safeguard the
interests of the depositors, many of whom have been tied up in their bust-
the administration of the bank's affairs and asking that a
judgment be entered against them to the amount of damages
that may be involved and to be ascertained by the Court,
was filed on Dec. 30 in the Supreme Court by Abraham A.
Soling in behalf of himself and all others similarly situated.
We quote from the New York "Times" of Dec. 31, which
also stated:
The complaint asserts that the lose suffered by the bank is in mows
of $50,000,0W
Tile plaintiff said he was a member of the independent stockholders' and
depositors' committee of the bank and was represented by Daniel W.
Blumenthal. Arthur Garfield Hays, and Arthur W. Wickshire.
Named as defendants in the suit are Bernard K. Marcus, President
of the Bank of United States; Saul Singer. Chairman of the Executive
Committee: Robert Adamson and Henry W. Pollack, Vice-Presidents,
and C. Stanley Mitchell, Chairman of the Board of Directors.
Recklessness Is Charged.
The charges filed against them are that they have failed frequently
to attend meetings of the board of directors, that they did not require
detailed written statements of loans and discounts and that they have
been "reckless and negligent, in managing the affairs of the bank, in
making oans and discounts rikd in the performance of their duties."
72
FINANCIAL CHRONICLE
The complaint also states that the executive officers and various defendant directors collaborating with them reaped great profits through
The Bankers Corp..a subsidiary of the bank,through payment to themselves of excessive salaries, by means of real estate transactions and in
other ways and "carelessly permitted the money, property and effects
of the bank to be wasted and squandered."
Other charges are that the directors permitted the bank to make unsecured loans and that the defendants "long before the closing of the
bank by the State Superintendent of Banks knew or were charged with
knowledge that the bank was insolvent but nevertheless caused the bank
to continue to carry on operations and to receive deposits of cash and
even instituted an intensive drive to secure deposits resulting in obtaining
approximately 50,000 new accounts—thus securing control of additional
funds whereby they were enabled greatly to enlarge the unlawful profits
reaped by them as herein set forth at the expense of the bank and its
stockholders."
The charge is also made in the complaint that through the City Financial Corp., another subsidiary of the bank, the defendants by manipulation of stock made about $20,000,000 for themselves and reaped also
great profits through manipulation of the unit stock of the Bank of United
States and Bankus Corp. . . .
Rosoff Starts Fund.
While these moves were under way, Samuel R. Rosoff, subway contractor and owner of 6,000 units of Bank of United States and Bank-us
Corp. stock, continued his efforts for reorganization and reopening of the
Bank of United States.
Mr. Rosoff decided to postpone for a week toe "Important announcement" he was to make yesterday, but, confirming his efforts, announced
also that he has started a fund of $1,000,000 to be used in helping small
depositors who are not entitled, for one reason or another, to avail themselves of the Clearing House Association plan whereby depositors may
get loans up to 50% of their deposits at 5% interest. Mr. Rosofflaunched
the $1,000,000 fund with his own contribution of $100,000.
Mr. Rosoff's plan for reorganization of the bank, it was learned, contemplates formation cif an advisory committee consisting of one representative from every big bank, including the Federal Reserve, and large
private banking institutions, to be followed by the organization of a corporation under the direction of Superintendent Broderick, with the
purpose of organizing a new institution which would take over the entire
business of the Bank of United States under a guarantee from the bankers'
committee.
A committee represcnting stockholders and depositors is to co-operate
in the program of reorganization, according to Mr. Rosoff's plan. Among
those who are to be asked to join this committee, it is understood, are
to be Mayor Walker, Comptroller Berry and Israel H Perskin, Justice
Louis Goldstein and Mr. Stotler, as representatives of the Bank of United
States Depositors' and Stockholders' Protective Association. Mr. Steuer
is to be Chairman of this committee.
Mr. Rosoff was still "optimistic" yesterday of his ability to bring his
plan to realization, but Mr. Broderick would make no comment beyond
saying that he had no reason to doubt Mr. Rosoff's integrity.
Mr. Broderick likewise declined to make any comment on the decision
of Federal Judge Woolsey in dismissing the equity receiversnip of the
Bankus Corp. and the City Financial Corp., other than to explain that
the corporations to his knowledge had considerable assets in addition
to the $14,000 reported to Judge Woolsey by the Irving Trust Co., the
receiver.
Mr. Broderick would not undertake, however, to evaluate these assets. He revealed that the Bank of United States had no less than 57
affiliates, all of watch, he said, have been examined by his Department.
Many of these affiliates are only holding companies for properties of the
bank. He would not say what the examination of these subsidiaries
revealed.
Applications for loans under the Clearing House plan totaling 2,806
wered filed yesterday, Mr. Broderick said, bringing the total of applications to date to 48,925. The total of net deposits of applicants for loans
is now $34,570.000, he said.
In part we quote as follows from the "Times" of Jan. 1:
(VOL. 132.
$275,000 Loan to Director.
Among the unsecured loans to be liquidated by the closed Bank of
United States is a $275,000 note to J. C. Brownstone & Co., of 84 Fifth
Avenue. Joseph C. Brownstone, head of the firm which went into equity
receivership on Dec. 12, is a director of the closed bank.
The note does not fall due for several weeks and Mr. Brownstone said
last night that his firm was solvent, having assets of "close to $2,000,000."
against liabilities of $1,100,000, and that he expected eventually to pay
his creditors in full. Mr. Brownstone declared that the closing of the
bank had nothing to do with the receivership for his firm.
He said that he had a perfect legal right to borrow money from the
bank of which he was a director if the board of directors approved the
loan. He added that not only the board, but a creditors committee had
approved it, and similar loans to "four or five" other directors. Mr.
Brownstone said he could not estimate the total amount thus loaned to
directors but declared that it was "way under $5,000,000."
In the "Times" of Jan. 2 it was stated that while the
Federal and State actions were being awaited on Jan. 1,
District Attorney Crain struck another snag in his efforts to
start his investigation into the bank, when attorneys for
the Bank of United States Stockholders' and Depositors'
Association declared they would not accept Mr. Crain's
invitation to confer with them, pending developments in
Albany, and asserted that they would rather have both the
civil and criminal aspects of the investigation centred in
Mr. Bennett's hands. The "Times" added:
Mr. Crain's investigation is scheduled to begin on Monday, after a
week's postponement necessitated by the revelation that Judge Max S.
Levine, who was to have presided over the investigation, was a stockholder in the bank and associated as President of the Grand Street Boys
Association with officials of the bank belonging to the Grand Street Boys,
Mr. Crain will present the evidence before a grand jury empaneled by
Judge William Allen in General Sessions.
Banking Situation in South and Middle West.
In the State of Arkansas, Associated Press advices from
Little Rock on Dec. 29 reported that the Van Buren County
Bank at Clinton had suspended on that day for five days,
according to an announcement by the Arkansas State Banking Department. Garner Fraser, President of the closed
bank, was quoted in the dispatch as saying that he expected
the institution to be reorganized and reopened.
The following day, Dec. 30, a dispatch by the Associated
Press from Little Rock reported that the State Banking
Department that day announced that the Bank of Stevens at
Stevens, Ark., had been placed in charge of the Department
for liquidation. The institution had combined capital and
surplus of $38,000 and deposits of $135,676. The dispatch
also stated that the Department had suspended for five
days the Citizens' Bank & Trust Co. at England, with
capital and surplus of $140,000 and deposits of $229,777,
and the Bank of Chidester at Chidester, with capital and
surplus of $14,000 and deposits of $51,114.
Again, yesterday, Jan. 2, the Interstate National Bank of
Helena, Ark., the only remaining bank in that city, failed
to open its doors. An Associated Press dispatch from Helena
on Jan. 2, indicating the closing, added:
It was reliably reported yesterday that Harry Epstein, a nephew of
A notice on the door said it was closed for the protection of depositors
Max D. Steuer, would be named by Mr. Bennett, head of the State until arrival of a National bank examiner. The Merchants & Planters
Bureau of Securities, to succeed Mr. Washburn. Before leaving his office Bank closed hero Nov. 17.
last night, Mr. Washburn transmitted to Mr. Ward for Mr. Bennett's
The Interstate National Bank had a capital of $250,000 with deposits of
benefit a preliminary report on his investigation into complaints filed with about $1,700,000. Its closing leaves but one bank in Phillips
County, the
the State Securities Bureau alleging misrepresentation in the sale of stock Bank of Marvell at Marvell.
units of the Bank of United States and Bankus Corp. Mr. Washburn
In Mississippi, 10 small banks in the Northeast section
made no recommendations in his report, stating that the evidence obtained
by him was contradictory.
of the State were closed on Dec. 26, according to Memphis,
On the other hand, it was learned from Albany that unless there is a Tenn.,
advices by the Associated Press on that date. They
change in the plans, Attorney-General Bennett has no intention of appointing Max D. Steuer, who is counsel for the Bank of United States were: The First National Bank and the Corinth Bank at
Stockholders' and Depositors' Protective Association, as special Deputy Corinth; the Ittawamba County Bank, Fulton;
the Bank of
Attorney-General to investigate the bank.
Reports on Stock Sale.
In his report yesterday to Mr. Ward, Mr. Washburn stated that he
had examined 100 stockholders of the Bank of United States, who were
also depositors, and 600 complaints in affidavit form from stockholderdepositors, all alleging that they were sold units of one share of Bank of
United States and one share of Bankus Corp. in July 1929 at $198 per
unit on representations that the purchaser would suffer no loss, that if
the purchaser held his units for one and the price was then less than $198
the units would be repurchased at the cost price, or that if the units decllned there would be an adjustment. Eighty officials, employees and
former employees of the Bank of United States or Bankus Corp. were
examined by Richard J. Sherman, Deputy Assistant Attorney-General,
in this connection, Mr. Washburn reported. The testimony proved contradictory, Mr. Washburn said. From Mr. Marcus, he said, it was learned
that he analyzed the value of the unit and said that in comparison to the
value of other bank stock it should be selling much higher, more than
$300 per unit; that they wanted their depositors "to come in as stockholders and make money on it, and therefore have their good-will linked
to the institution."
"He denied absolutely having mentioned a guarantee against loss or
anything of that kind," Mr. Washburn wrote. "A substantial number of
those present at these meetings corroborate Mr. Marcus's testimony.
"On the other hand, a substantial number of those present assert that
Mr. Marcus stated to them that when it was necessary to make a sale,
Information should be furnished that the stock was guaranteed.
"Many of this group of employees admit that they made representations
similar to the three varieties listed above to numerous depositors to whom
they sold units in the belief that they we following Mr. Marcus's instructions."
Sherman at Sherman; the Bank of Saltillo at Saltillo; the
Bank of Guntown at Guntown; the Bank of Verona, Verona;
the Bank of Shannon, Shannon and the Booneville Banking
Co., Booneville. The closing of these banks was in addition
to the suspension on the same date of the People's Bank &
Trust Co. at Tupelo, with branches at Nettleton and
Rienzi, noted in our item of last week on the Banking Situation in South and Middle West, page 4157. All the institutions, the dispatch mentioned stated, were within a radius
of about 30 miles and the situation was described as a local
one by S. J. High, President of the People's Bank & Trust
Co. of Tupelo, the largest of the closed banks. The dispatch
added that banking officials of the section expressed the
hope that most of the institutions would reopen within
30 days.
On Dec. 29, an Associated Press dispatch from Jackson,
Miss., stated that two more Mississippi banks, the Bank
of Oxford at Oxford, and the Leake County Bank at Carthage, had closed on that date and that the Security Bank &
Trust Co. of Greenwood, Miss., had reopened. According
to the dispatch a "run" was given as the cause of the closing
of the Leake County Bank, while the Bank of Oxford decided
to suspend temporarily because of "prevailing conditions."
JAN. 3 1931.]
FINANCIAL CHRONICLE
73
Again, on Dec. 30, six more Mississippi banks, with aggre- to open their doors, according to Indianapolis advices by the
gate deposits of about $1,730,103, closed their doors, ac- Associated Press on that day, which said:
cording to an Associated Press dispatch from Jackson on
The Fort Wayne Avenue State Bank ofIndianapolis,a $25,000 institution.
that date. Some of the banks closed as "protective" meas- failed to open its doors this morning, Luther F. Symons. State Banking
Commissioner
announced.
ures, while others gave "runs" as the cause. The banks
Mr. Symons said indications were that all depositors will be paid in full.
named in the advices were:
the total deposits were $130,000.
The Planters National Bank, Clarksdale, and its savings division, the
Planters Trust & Savings Bank, a State bank. The National bank carried
deposits of $700,000 and the State institution had savings
of $503.103.
The Progressive State Bank, Tutwiler, with deposits of $200.000, and
the Peoples Bank of Jonestown, with deposits of $50,000 were both affiliated
with the Clarksdale institution.
The Bank of Walnut Grove, with deposits of $100.000. and the Bank of
Lena, with deposits of $75,000, both in Lake County.
The Garrett Savings and Loan Association of Garrett. Ind., also failed
to open. Mr. Symons said he understood a merger was under consideration
there.
The Bank of Hollandale has not closed but is doing business
as usual
and is prepared to meet demands. The Associated Press
is glad to make
this correction.
said he was held prisoner five hours in the bank yesterday and finally
kidnaped in his own car and taken to Milwaukee by four men. The quartet
had posed as bank examiners, he said, in asking him to meet them at the
bank on New Year's Day.
Police were posted at the bank this morning to keep order among worried depositors who gathered at the door.
In the State of Illinois Chicago advices on Jan. 2 by the
Associated Press stated that Federal bank examiners on
that day closed the doors of the Lawrence Avenue National
Bankiof Chicago, a neighborhood institution, pending an
That Clarksdale bank officials on Dec. 31 had said they investigation of the alleged robbery and kidnaping of an
were in error when they advised the Associated Press the Assistant Cashier by four men the previous day. We quote
previous day that the Bank of Hollandale, Miss., had further from the dispatch as follows:
Bank officials, attempting to open the vault, found the time-lock on the
closed as a result of the closing of two banks in Clarksdale,
steel doors had been set for its maximum run of 72 hours, rendering an
was noted in Associated Press advices from Clarksdale on examination
impossible until Sunday afternoon.
Dec. 31, which, continuing, said:
The robbery was reported by John E. Malloy, Assistant Cashier, who
Still again,another Mississippi bank,the Bank of Pontotoc
at Pontotoc, failed to open on Jan. 2. A dispatch from
Pontotoc on that date, reporting the closing, stated that the
institution had been turned over to the State Banking Department for liquidation, and that it its last report the institution had shown combined capital and surplus of $120,000
and deposits of $410,000.
In the State of Alabama, the Chambers County Bank at
LafaYette was reported closed in an Associated Press dispatch
from Montgomery on Dec. 29, which said:
Dent F. Green, State Superintendent of Banks, announced to-day (Dec.
29) that the Chambers County Bank at Lafayette, Ala., had closed
because
of "frozen assets and steady withdrawals."
Again, on Dec. 31, announcement was made by the
State Superintendent of Banks that the Bank of New
Hope, in Madison County, Alabama, had closed because of
"frozen assets" and heavy withdrawals, according to Montgomery advices by the Associated Press on that date.
In the State of Virginia, an Associated Press dispatch
from Vinton, Va., on Jan. 1 reported that the People's
Bank of Vinton, which closed its doors Dec. 20, would
reopen Jan. 2. The advices went on to say:
Bank examiners, bankers, and others have been busily engaged
since
the shut-down making arrangements for the reopening. The
bank is
capitalized at $100,000 and has more than $500,000 in deposits.
Another Virginia bank, the People's National of Covington, was closed on Jan. 2 by its directors with a view to
protecting the interests of the depositors, following extensive
withdrawals within the past ten days, according to Associated Press advices yesterday, Jan. 2, from Covington,
which went on to say:
In the State of Ohio, Associated Press advices from
Columbus on Dec. 30.reported that the Ohio-State Banking
Department that day announced the closing of the Doylestown Banking Co. at Doylestown, Wayne Co., because of
steady withdrawals. The closed institution was capitalized
at $25,000 and on Sept. 25 last reported total resources of
$251,769, the dispatch noted.
Nation's Strike Level at Low Point During Depression40% Decline in 1930 Disputes as Capital and Labor
Improve Relations—Analysis by Standard American Corporation.
For the first time in history, the United States is practically free of severe industrial strife during a period of business depression, according to the Standard American Corp.
of Chicago, which has just completed a study of industrial
relations. Statistics compiled in this survey showed the
nation's strike level at the lowest point in history, and a
complete absence of the menace of serious industrial conflict
which has usually marked the recurring business depressions
of the last century. "Absence of industrial disputes at this
time," the survey said, "has undoubtedly strengthened our
industrial and social structure, and should be an important
factor in increasing the possibility of a more rapid economic
recovery." As to the results of its study the Corporation says:
40% Decline in 1931) Strikes.
Up to Oct. 1 the survey showed a total of 444 industrial disputes this
year as compared with 740 in the same period last year—a decline of
40%.
There was also approximately 70,000 fewer men involved in this year's
The bank's statement on Scpt. 24, last, showed resources of $518,547.13 disputes than in 1929, which was the banner year in the
absence of indusand deposits of $408.961.83. The institution was the smallest
of three trial. trife.
Covington banks. A. L. Noel is President and Charles R. Karnes. Cashier.
In connection with its study, the Standard American Corporation developed interesting figures showing the course of industrial disputes during
In the State of West Virginia, the Bank of the Monon- the
last fifteen years, which in that time has resulted in 31.127 strikes and
gahela .Valley at Morgantown, closed yesterday, Jan. 2, lockouts, involving 16.458.000 men.
pending reorganization, as reported in a dispatch by the
Associated Press from that place, which furthermore said:
The survey states:
"Analysis of these figures, compiled from government and private
sources, revealed that since 1919, the greatest strike year in the history
On Sept. 24 it had deposits of 33,772,780,loans and discounts $4,023,612, of the country,
relations between capital and labor have continued to
sapital stock $300,000,surplus fund $200,000 and undivided profits
$20,754. improve until today, the continuity of production is being disturbed by
relatively
few industrial disputes. Since 1921—the last severe depression
In Indiana, on Dec. 29, the Central Trust & Savings
year in which there were more than 2,000 disputes—the decline in labor
Bank of Gary, formerly known as the Southside Trust & trouble
has been most rapid and pronounced.
Savings Bank, was closed, according to Associated Press
"In recent years the number of workers involved in industrial disputes
advices from Indianapolis on that day. The closed bank has ranged from 200,000 to 400,000 which is relatively small when compared with the period prior to 1923, when the number of strikers ranged
was capitalized at $100,000 with surplus and undivided from 1.000,000 to 4,000,000 annually. In the unparalleled strike year
of
profits of $25,000 and had deposits of $900,000. State 1919, more than 4.160,000 persons were involved in labor conflicts which
Senator C. Oliver Holmes is President of the institution, swept the iron and steel, mining,shipping, building and railroad industries."
Strike Statistics 1915-1930.
the dispatch stated.
The following table shows the figures for strikes and lockouts and the
On the same date, Dec. 29, Gary advices to the Indiana- number
of men involved through the entire period from 1915 to 1930:
oils "News" stated that the Miller State Bank, the smallest
Total No. No.of Persons
Total No. No.ofPersons
Year—
of Strikes. Involved.
Year—
of Strikes.
Involved.
bank in Gary, had closed its doors ten minutes before
1.593
050,000
1924
1,249
654,641
the 1915
1916
3,789
1,599,917
1925
1,301
428,410
end of banking hours that day when depositors started a 1917
4.450
1,227.264
1926
1,035
329,592
1918
3.353
'run."
1,239.989
1927
734
349,434
1919
3.630
4.160.348
1928
629
357.145
Again, the next day, Dec. 30, Indianapolis advices by 1920
3,411
1,463,054
1929
903
230,483
1921
2.385
1,099,247
the Associated Press reported that the Citizens' State Bank 1922
1.112
1,612,562
1.553
766.584
Totals
31.127
f Indianapolis, capitalized at $100,000 and with deposits 1923
16.458.640
"Unlike former depression years, business in 1930 is being
f $1,400,000, was placed in the hands of the Indiana State
anking Department on that date, following heavy with- disturbed by comparatively few strikes and labor disputes,"
awals. Luther F. Symons, State Banking Commissioner, said John Newey, Executive Vice-President of the Standard
e dispatch stated, expressed belief that the institution was American Corporation. He adds:
"Labor and industrial management are showing good judgment
lvent.
in
co-operating and working together. Absence of industrial disputes
has
Still again, on Jan. 2, two more Indiana banks, namely increased the stability of our industrial and social structure.
he Fort Wayne Avenue State Bank of Indianapolis any we are in a better position than ever before to go forward andTherefore,
solve the
that confront us. and take advantage of the new
he Garrett Savings & Loan Association at Garrett, failed problems
prospects that
will undoubtedly come within the next few months.
74
FINANCIAL CHRONICLE
"Employers, with few exceptions, seem converted to the new philosophy
of maintaining wages and thereby increasing the possibility of a more
rapid economic recovery. High wages, with steady employment, now
appear accepted generally as absolutely indispensable in maintaining
prosperity."
"Comparison of the strike statistics this year with the last depression
made
period of 1921-22, will show the astonishing progress that has been
in improving relations between capital and labor. In 1921, there were
and
more than 2,300 labor disputes, involving more than a million men,
and a
in 1922 there were 1,110 disputes, involving more than a million
character,
half men. Many of these strikes and lockouts were of major
have had but 440
accompanied by serious disorder. So far this year we
disputes, and practically all of these were of minor character.
was also dis"In the depression periods of 1907-9, 1914-15, the nation
of workers.
turbed by hundreds of disputes,involving hundreds of thousadns
and loss
disorders
severe
Many of these strikes were also accompanied by
to property.
relation in
"In addition to the remarkable improvement in industrial
The prorecent years, other notable benefits have accrued to industry.
the last
during
27%
ductivity per worker has increased approximately
of better
ten years, not so much because of greater personal skill as because
also been a
management and improved industrial equipment. There has
due in part
drop of about 50% in labor turnover in manufacturing plants
and
seasonal
of
to better industrial relations, and in part to the reduction
Irregular employment."
Analysis of strike statistics compiled in the survey showed
that 76% of all the disputes reported were in that section of
the country north of the Ohio and East of the Mississippi
River, and 17% were west of the Mississippi, and the remainder in the South. The great industrial states of New
York, Pennsylvania and Massachusetts account for 44% of
the total industrial disturbances, it was stated, and if Illinois,
Ohio and New Jersey were included this percentage would
be increased to 65%. As to this, the survey said:
East Holds Strike Records.
"New York City led the country for the 15-year period, with a total of
3,876 strikes and lockouts. Chicago was second with a total of 976,
Philadelphia third with 770, Boston fourth with 706, Cleveland fifth with
446 and St. Louis sixth with 408.
"The building industry throughout the period consistently led all the
trades in the number of strikes, with a total of 5,012 since 1915. The
with
clothing trade was second with 3,970 disputes, metal trades third
3,970, textile fourth with 2,251, and coal mining fifth with 2.130.
Results of Strikes.
last 15 years,
"Study of statistics Of the results of the strikes in the
Labor won
shows that labor and employers have about broken even.
the remainder
about 34% of all disputes and the employers 3.5%, and
were compromised.
the workers
"During the war period when wages were rising rapidly,
was really the
won a high percentage of their strikes. The year 1919
than it
turning point for labor. For the first time it won fewer strikes
In the severe
lost and not until 1922 did it recover this lost ground.
that it
depression of 1921, widespread unemployment so weakened labor
compromised.".
won but 20.5% of Its strikes and lost 56%,the balance being
Tobacco Prices Reduced in Tennessee.
Associated Press advices from Greeneville, Tenn., Dec. 9
stated:
the opening of the
Approximately 500.000 pounds of tobacco was sold at
to 22 cents a
Greeneville market to-day at an estimated average of 21
Tobacco Board of
pound, F. T. Emerson. President of the Greeneville
2 cents lower than on the
Trade said to-night. The average price was 1 to
opening day last year.
Prices ranged from 5 to 37 cents a pound.
&c.
ITEMS ABOUT BANKS, TRUST COMPANIES,
the
sale
for
week
Arrangements were reported made this
memberships at
of three New York Stock Exchange
last
$200,000, $192,000 and $189,000 respectively. The
$200,000.
for
was
sale
preceding
Arrangements have been made this week for the sale of a
membership on the Chicago Stock Exchange for $14,500,
up $400 from the last preceding sale.
announces the
The Guaranty Company o- f New York
Wickerappointment of John A. Wright Jr., and James H.
has been
Wright
Mr.
s.
-President
Vice
Second
sham as
Mr. Wickersham
Manager of the Syndicate Department and
Department, both of
Buying
the
of
Manager
Assistant
the New York office of the company.
44 Wall St., it was
At the offices of Transamer-ica Corp.,
National Trust
America
of
Bank
the
that
31
announced Dec.
had conFrancisco)
San
office
& Savings Association (head
will take over as from
it
which
by
agreement
an
cluded
carried on by the British
Feb. 1 1931 the business heretofore
England, together
Italian Banking Corp., Ltd., of London,
The agreement
staff.
and
nt
manageme
with its premises,
shareholders of the British
is subject to ratification by the
about to be conItalian Banking Corp., Ltd., at a meeting
vened.
Trust & Savings
A branch of Bank of America National
Feb. 1 1931, at
on
London
in
opened
be
will
Association
to be acquired
premises
12 Nicholas Lane, E. C. 4, the
from the British Italian Banking Corp.
[Vou 122.
With reference to the affairs of the State Bank of Binghamton, Binghamton, N. Y., which on Dec. 15 was taken
over by the State Banking Department, following the
disappearance of its President and Cashier, Andrew J.
Horvatt, advices from Binghamton on Dec. 30 to the
"Wall Street Journal" stated that shortages amounting to
$1,478,000 had been disclosed by investigators examining
the accounts of the institution.
The proposed merger of th-e Boston National Bank, Boston, Mass., capitalized at $625,000, and the Continental National Bank of that city, capitalized at $500,000, was consummated on Dec. 23 under the title of the Boston-Continental National Bank, with capital of $1,000,000. The consolidated bank has one branch located in Boston, formerly
a branch of the Boston National Bank. Reference was made
to the approaching union of these banks in our issues of
Nov. 1 and Dec. 20, pages 2836 and 3995, respectively.
The Aldine Trust Co. of Ph- iladelphia, a bank having resources as of Sept. 24 last of $9,256,234 and maintaining besides its head office at 20th and Chestnut Sts., two branches
in West Philadelphia, was placed in the hands of Peter G.
Cameron, Secretary of the Pennsylvania State Department
of Banking, following a meeting of its directors held Sunday
night, Dec. 28 and was not opened for business the next day.
The closed trust company is capitalized at $1,218,182 with
surplus and undivided profits of $722,035 and had deposits
of approximately $6,409,125. Following the meeting of the
directors, A. M. Matthews, President of the institution, issued the following statement, as printed in the Philadelphia
"Ledger" of Dec. 29:
"Persistent unwarranted and malicious rumors circulated throughout the
the
city concerning the stability of the Aldine Trutt Co., together with
a
closing of one large trust company in the center of the city, have caused
gradual and increasing withdrawal of our deposits.
corn.
the
place
to
has
determined
Directors
of
"For that reason the Board
pany in the hands of the Secretary of Bei king of the Commonwealth of
Pennsylvania. The Board believes the bank to be solvent, and that all
depositors will ultimately be paid in full.
"A reward of $10,000 is offered for information which result in the
arrest and conviction of any person or persons guilty of having disseminated
these false rumors."
In its issue of the next day, Dec. 30, the paper mentioned
gave the following additional information regarding the
closed trust company:
With William H. Soule, of the State Banking Department, in charge,
directors of the Aldine Trust Co., 20th and Chestnut Streets, offered a
reward of $10,000 for "information which results in the arrest and conviction of any person or persons guilty of having disseminated false rumors"
which, it was declared, were responsible for the suspension of the bank
yesterday morning. . . .
Peter G. Cameron, State Secretary of Banking, at Harrisburg, and other
Banking Department officials expressed confidence that the Aldine is
solvent. The bank had branches at 40th Street and Lancaster Avenue and
52nd and Walnut Streets.
Joseph K. Willing, member of the law firm of Sterling kz Willing, with
offices in the Guarantee Trust Building and former Assistant District
Attorney, was appointed yesterday afternoon (Dec. 29), as special counsel
for the State Banking Department. Mr. Willing expressed a "hope that
we will be able to salvage at least enough to pay depositors every cent
coming to them."
The Clearing House Committee of the Philadelphia Clearing House
Association, in a statement yesterday, said "The suspension of the Aldine
Trust Company is the result of longstanding difficulties which arose under
a previous administration and have been known for some years. The
Clearing House banks found that they were not justified in assuming its
1iab ities."
The statement was signed by Joseph Wayne, Jr., President of the Philadelphia National Bank and President of the Clearing House Association
William P. Gest, Charles S. Calwell, William J. Montgomery, Howard A
Loeb, J. Willison Smith, John H. Mason and Cl. Addison Harris.
Secretary Cameron issued a reassuring statement declaring there is "n
reason whatever for any depositors in Philadelphia banks to be uneasy abou
their deposits. The directors of the Aldine have issued a statement an
there is little I can add."
The directorate of the Aldine, through Allen M. Matthews, the President
declared their belief the bank is solvent, and a banking department off!
expressed the opinion that only the succession of Mae and malicious rumo
circulated recently regarding the institution made the suspension necessary
Mr. Soule announced it would be several days before anything can
stated regarding the assets of the Trust Company.
Absorption of the Queen Anne's National Bank of Center
ville, Md., by the Centerville National Bank of the sam
place, on Dec. 24, was reported in Associated Press advice
from Centerville on that date, which said:
The Centerville National Bank to-day (Dec. 24) took over the busin
of the Queen Anne's National Bank of this place as a result of a decisi
to merge taken at a joint meeting of stockholders and depositors he!
th
last night (Dec. 23). The action was taken, it was stated, to reduce
overhead of the two institutions.
On Dec. 23 the American-First National Bank of Fludla
Ohio, changed its name to the First National Bank
Trust Co.
JAN. 3 1931.]
FINANCIAL CHRONICLE
75
A charter was issued by the Comptroller of the Currency
The closing of the College State Bank, Manhattan, Kan,.
on Dec. 22 for the First National Bank in Manistique, a small bank patronized by Kansas State Agricultural
Manistique, Mich. The new bank is capitalized at $50,000. students, was announced by the Kansas State Banking
Virgil I. Hixson is President and W.C. Drevdahl, Cashier.
Department on Dec. 30, according to Associated Press
advices from Topeka on that date, which added:
C. Howard Marfield, formerly a Vice-President of the
Central Trust Co. of Illinois, Chicago, became President
yesterday, Jan. 2, of the Straus National Bank & Trust Co.
of this city, succeeding the late S. W. Straus, whose death
occurred last September. In reporting Mr. Marfield's appointment to the Presidency of the Straus institution, the
New York "Herald Tribune" of Dec. 30 gave the following
outline of his banking career:
The new head of the Straus bank in New York was President of the Bank
of America in Chicago and upon its consolidation with the Central Trust
Company of Illinois early in 1929 became Vice-President of the combined
institution and Chairman of the discount committee. Mr. Marfield began
his banking career as a junior clerk in the National IJnioa Bank of Baltimore in 1900. Subsequently he became a clerk with the National Bank of
Commerce, New York City, then teller with the Trust Co. of America, New
York City, and after its merger with the Equitable Trust Co. of New
York, was made Assistant Treasurer.
During the war he was engaged in handling the funds of the A. E. F.
In 1919 he was made Cashier of the Seaboard National Bank, New York
City, becoming Vice-President in 1921 and remaining in that office until
he went to Chicago as Executive Tice-President of the Bank of America in
1925. Mr. Marfield has served as a member of the banking and currency
executive committee of the National Association of Credit Men; a member
of the executive council of the American Bankers' Association; Vice-President of the National Bank Section of the New York State Bankers' Association, and President of the Association of Reserve City Bankers.
—•___
The respective directors of the Inland Trust & Savings
Bank, the Irving National Bank, and the Portage Park National Bank, three of the oldest and largest banks in the
Irving Park and Portage Park districts of Chicago, have decided to recommend to their stockholders a union of the
institutions to form the Inland-Irving National Bank, the
formation of which has been approved by the National
Banking Department of the Government, according to the
Chicago "Journal of Commerce" of Dec. 30, which continu-
ing said:
The three combining institutions will occupy the quarters at Irving Park
Boulevard, Milwaukee and Cicero Avenues, now used by the Inland Trust di
Savings and the Portage Park National banks. Charles E. Ummach, founder
and President of the Inland Trust k Savings Bank, will head the combined
Institutions as President, and the Board of Directors will be made up of
substantially all the present members of the boards of the uniting banks.
The Inland-Irving National Bank will have invested capital of over
$700,000 and total resources of nearly $9,000,000, making it the largest
national bank on the Northwest side. Each of the three merging banks
has always been a member cf the Chicago Clearing Rouse Association, to
which the consolidated bank will also belong, as well as having membership
in the Federal Reserve System.
The Irving Park National Bank is one of the oldest outlying banks in
Chicago, having been established In 1910. The Inland Trust & Savings
Bank and the Portage Park National Bank were both formed in 1923.
As of Dec. 23 1930, the Tennessee-Hermitage National
Bank of Nashville, Tenn., was placed in voluntary liquidation. The institution, which was capitalized at $300,000,
was absorbed by the Commerce Union Bank of Nashville,
as noted in the "Chronicle" of Nov. 22, page 3315.
Two Columbus, Miss., banks, the Columbus National Bank
and the First National Bank in Columbus, both capitalized
at $100,000, were consolidated on Dec. 22, under the title
of the First-Columbus National Bank with capital of
$150,000.
The Board of Directors of the Hibernia Bank & Trust Co.
of New Orleans, at their regular monthly meeting, held
Dec. 17, declared out of the earnings for the past three
months a dividend of $1.25 per share of $25.00 par value,
or 5% for the quarter ending Dec. 31, to stockholders of
record Dec. 26. At the same meeting the directors also
declared a quarterly dividend on salaries to be paid to the
employees as a Christmas bonus, the amount of Which to be
based both on salary and length of service. It has been the
practice of the Board of Directors for the past 11 years to
pay each quarter a bonus to its employees.
On Dec. 23 the City Bank of Miami Beach failed to open
Its doors, following a "run" the previous day brought about
by the closing of the City National Bank of Miami, according
to Associated Press advices from Miami on that date. The
City Bank was capitalized at $100,000, with surplus of
$50,000, and had deposits of $600,000 at the last call, the
dispatch said.
The action was ordered by the bank's board of directors, it was announced, because the institution was being operated at a loss.
Its latest statement showed $25,000 capital, $1,500 surplus and $76,977
deposits.
A United Press dispatch from Topeka, Kan., on Dec. 31
stated that the Farmers' State Bank of Wheaton, Kan.,
had been closed because of "frozen" assets. The institution
was capitalized at $50,000 and had deposits of $123,000,
the advices noted.
The closing of three small banks in Southeastern Kansas,
namely, the Mildred State Bank, Mildred; the People's
State Bank at Moran, and the State Bank of Eismore, at
Elsinore, all in Allen County, was announced on Dec. 26 by
H. W. Koeneke, State Bank Commissioner for Kansas, according to Associated Press advices from Topeka, Kan., on
that date, which went on to say that the Commissioner
attributed the closing of the institutions, which had combined deposits of $274,000, to last summer's drouth and inability of the institutions to realize on their farm paper.
The First National Dank of Seymour, Iowa, with capital
of $50,000, was placed in voluntary liquidation on Dec. 17.
The institution was taken over by the National Bank of
Seymour.
The Elling State Bank of Virginia City, Mont, capittilinyl
at $50,000, closed its doors on Dec. 26, as reported in Virginia City advices by the Associated Press on Dec. 27.
"Frozen assets" were assigned as the cause of the bank's
embarrassment, it was said.
FIffective Nov. 1 1930, the Central National Bank & Trust
Co. of Tulsa, Okla., capitalized at $1,000,000, went into
voluntary liquidation. The institution was absorbed by
the Exchange National Bank of Tulsa.
The City National Bank of Fort Smith, Ark., formally
opened a new bank building on Dec. 27. The personnel of
the institution is as follws: I. H. Nakdimen, President;
H. S. Nakdimen, Assistant to the President; R. H. Kagy,
Vice-President and Cashier, and R. H. Jackson and H. S.
Patterson, Assistant Cashiers.
The annual report of the Royal Bank of Canada (head
office Montreal) made public Dec. 29, shows that the bank
has maintained its strong liquid position and that profits
were not only sufficeint to cover regular dividends and
bonus, the usual appropriations for pension fund, &c.,
but to add over $500,000 to the profit and loss account.
At the end of the fiscal year, Nov. 30 1930, total assets
are shown of $889,917,191 as compared with $1,001,442,741 a year ago. Cash on hand and in banks amounts
to $164,251,285, being equal to 21.17% of liabilities to the
public. Other liquid assets, such as Government and
municipal bonds, call loans, &c., bring the aggregate of
liquid assets to $379,120,433. This is equal to 48.87%
of liabilities to the public. Deposits have been well maintained. Those bearing interest are reported at $543,843,554
and free deposits at $151,745,505, as against $591,380,470
and $180,707,298. The shrinkage in deposits is in line
with the experience of not only banks in Canada but of those
in the principal countries abroad.
Curtailed business activity is reflected in reduced commercial loans from $513,814,503 last year to $444,815,877
at date of this statement. The reduction in letters of
credit outstanding from $53,648,778 to 838,299,506 is a
further evidence of lessened activity in International trade
due to world-wide economic conditions.
The profit and loss account shows that after providing
for charges of management, &c., and making full provision
for bad and doubtful debts, profits were $6,572,627. This
compares with $7,145,137 a year ago. Profits for the year
added to the amount carried forward from the previous year
made the total available for distribution $10,146,778.
Dividends and bonus to shareholders absorbed $4,900,000.
Contributions to officers' pension fund were $200,000;
appropriation for bank premises, $400,000; reserve for
76
FINANCIAL CHRONICLE
(VOL. 132.
Dominion Government taxes, $540,000, leaving $4,106,778 $6,000,000 in brokers' loans in this district. Call money
to be carried forward as against $3,574,151—an increase renewed at 2% on Monday, advanced successively to
3%, 3% and then to 4% on that day, but receded to
of $532,627.
1 2% on Friday.
The market pushed lower last Saturday, many important
Edson L. Pease, Vice-President of the Royal Bank of
Canada (head office Montreal) since 1908 and former Gen- issues breaking through their previous low levels, and while
eral Manager of the institution, died unexpectedly at Nice, there was a partial lifting of the selling pressure shortly
France, on Dec. 29. Mr. Pease, who was a former President before the close, the final quotations showed little recovery.
of the Canadian Bankers' Association, had been connected The strong spot in the market transactions was the local
with the Royal Bank of Canada or its predecessor, the Mer- traction stocks, though the advances were not fully mainchants' Bank of Halifax, N. S., for nearly 50 years. He was tained. United States Steel broke through to 137, Amerborn at Coteau Landing, Que., in September 1856. A dis- ican Can dropped below 109, and General Motors slipped
stocks fell off sharply under the weight
patch from Montreal on Dec. 29 to the New York "Herald under 34. Railroad
of the poor November earnings statements, and losses of a
Tribune" with regard to the deceased banker's career said in
point or more were registered by New York Central, Norpart:
& Western, Chicago & North Western and Union Pacific.
folk
In 1874, on coming to Montreal, he joined the staff of the Canadian Bank
of Commerce, where he remained until 1882, when he was transferred to The final quotations also showed new lows for the year for
the head office in Toronto. Next year he was appointed accountant of the such active stocks as Internatl Tel & Tel., Bethlehem Steel,
Merchants Bank of Halifax in Halifax.
Montgomery Ward, Western Union Tel., American Smelting
In 1887 he was called upon to open the first branch of the bank in Montreal, with the position of Manager. Twelve years later he was appointed & Refining and R. H. Macy & Co.
joint general manager in Montreal with D. H. Duncan.
Trading was somewhat larger, though stocks moved
On Mr. Duncan's retirement in 1900, Mr. Pease became General Manager.
around somewhat irregularly, until the last hour when the
It was at this time that it was decided to transfer the executive offices to
Montreal and to change the name of the bank to the Royal Bank of trend was upward. Local tractions were strong at the start,
Canada.
but slid backward later in the day. The so-called pivotal
Mr. Pease was appointed a director of the bank in 1907 and his appointwere well supported during the early trading, but
industrials
later.
year
a
he
In
1916,
followed
November,
Vice-President
ment as
most of them were down fractionally at the close. Included
became Managing Director and Chief Executive Officer.
Mr. Pease remained General Manager until 1923, when he retired from in the long list of stocks dropping to new low levels were such
executive work in the banks and was appointed a director and Vice- issues as Bethlehem Steel, Montgomery Ward, American
President.
Besides his connection with the Royal Bank of Canada, Smelting & Refining and Intl Tel.& Tel. On the other hand,
the list, an occasional strong
Mr. Pease was active in many other Canadian organizations, there were scattered through
for instance, which shot up 2
Signal,
Railway
General
stock,
being at one time or another a director of the Montreal Trust
points to 70 and such active stocks as Allied Chemical & Dye
Co., the Ogilvie Flour Mills Co., the Natioaal City Co., Abitibi
4, National Biscuit
which moved ahead 13,4 points to 1783
Power & Paper Co., Ltd., and the North British & Mercantile
which improved 2 points and Norfolk & Western which shot
Insurance Co., Ltd.
ahead 334 points to 19614.
Stimulated by the announcement that an agreement on a
The annual report of Barclays Bank (Dominion, Colonial
plan for consolidation had been arranged by four big Eastern
and Overseas), head office London, and affiliated with Bar- railroad officials, the railroad shares were in sharp demand
clays Bank, Ltd., London, covering the fiscal year ended during the forenoon of Tuesday and some very substantial
Sept. 30 1930, has just come to hand. It shows net profits gains were scored by these stocks. The principal gains were
for the period, after making full provision for bad and doubt- Atlantic Coast Line 8 points, and New Haven, Lackawanna,
ful debts, of £465,071, which, when added to £137,981, repre- New York Central, and Baltimore & Ohio each from 6 to 7
senting the balance to profit and loss brought forward from points. Other strong stocks in the group were Atchison,
the preceding fiscal year, made the sum of £603,052 avail- Reading, Delaware & Hudson, Southern Ry., Union Pacific,
able for distribution, which was allocated as follows: and Illinois Central. Copper issues were strong as the result
£111,078 to provide for interim dividends (paid July 17 1930) of a further rise in the export price of the metal, and subat the rate of 8% per annum on the cumulative preference stantial gains were recorded by American Smelting, Anashares, and at the rate of 4%% per annum on the "A" and conda, Kennecott and Andes. United States Steel moving
"B" shares, less income tax; £55,583 to take care of a final up about 2 points, followed by Bethlehem, Vanadium and
dividend at the rate of 8% per annum on the cumulative others with advances averaging better than 1 point. Other
each fully paid, less income tax, leading stocks showing noteworthy gains at the close were
preference shares of
payable Jan. 21 1931; £61,691 to pay a final dividend at the American Can, Westinghouse, Worthington Pump, Goodrate of 5% per annum on the "A" shares of £1 each fully year, Western Union Tel., Auburn Auto, and J. I. Case.
paid, and the "B" shares of £5 each, £1 paid, less income The market ruled higher on Wednesday as rebuying and covtax, payable Jan. 21 1931; £110,000 to take care of income ering offset heavy tax selling. Trading opened strong and
periods of dullness, prices were
tax, &c., and £100,000 added to reserve fund, leaving a bal- while there were occasional
session. United States Steel
the
throughout
maintained
well
fiscal
forward
the
to
current
ance of £164,730 to be carried
crossed 140 at its top for the day. The buying extended to
year's profit and loss account. Total assets of the instituthe power and light group of the utilities, Detroit Edison
tion as of Sept. 30 1930 are given in the statement as £74,with a gain of 6 points, followed by American Power
leading
208,905, of which cash in hand and with bankers, and gold & Light, American & Foreign Power, Standard Gas, Colis
bullion £11,844,753. The bank's paid-up capital 14,975,500, umbia Gas & Electric, and American Water Works all of
and its reserve fund £1,650,000. The report will be sub- which closed with advances ranging from 1 to 3 or more
mitted to the shareholders at their ordinary general meet- points. Motor shares were unusually strong and active,
ing to be held Jan. 20 1931. Frederick Craufurd Goodenough Auburn Auto shooting up about 8 points to 112, while
Is Chairman of the Board, and John Calcutt, General Man- Hudson, Mack Truck, Studebaker, Pierce Arrow pref. and
ager of the institution.
Nash showed gains ranging from 2 to 4 or more points.
Other strong stocks included such active issues as WestingTHE WEEK ON THE NEW YORK STOCK EXCHANGE. house, American Can, General Electric, Sears, Roebuck,
Amer. Tel. & Tel., all of which closed with gains of from 1
The New York Stock Market was somewhat irregular and to 4 or more points. The New York Stock Exchange, the
unsettled during the forepart of the week, but the drift, Curb market, and all of the commodity markets were closed
the latter part, was strongly upward. On Saturday and on Thursday, Jan. 1, in observance of New Year's Day.
The market was somewhat mixed during the early trading
again on Monday and Tuesday, sporadic selling for tax
Friday, but the rally in the last hour carried many of
on
the
but
rally
sharp
progress,
in
be
to
claimed
purposes-wa,s
late on Tuesday turned the market upward during the rest the market leaders to higher levels before the close. The
of the week and many substantial gains were recorded by gains, while not large, were particularly impressive because
the more active speculative favorites. Local traction stocks of the fact that most of the stocks were below the previous
have been in brisk demand throughout the week, and rail- close during the first hour. United States Steel, for inroad shares displayed sharp improvement during the latter stance, dipped 13. points, but came back in theafternoon
4 points. General Electric,
half, following the announcement of the agreement on plans and closed with a net gain of 27
of consolidation by the four big Eastern trunk lines. The American Can and Westinghouse also converted early
weekly statement of the Federal Reserve Bank published losses into later gains. Public utilities were more or less
after the close of business on Friday showed an increase of weak, and considerable selling was apparent in the early
JAN. 3 1931.]
FINANCIAL CHRONICLE
trading and losses ranging from 3 to 7 or more points were
recorded by such active stocks as Detroit Edison, American
Power & Light, American Water Works, Consolidated Gas,
Western Union Tel. and American Tel & Tel. Railroad
stocks were stronger and substantial advances were scored
by Atchison, New York Central, New Haven, Bait. & Ohio,
Lackawanna, Union Pacific and Atlantic Coast Line.
Oils were stronger and so were the motors and copper stocks.
The final tone was good.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY, WEEKLY AND YEARLY.
Week Ended
Jan. 2 1931
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Stocks,
Number of
Shares.
1,394,722
2,788,820
3,431,115
1,935,330
2,031,350
Railroad,
&c.,
Bonds.
State,
Municipal et
Porn Bonds.
United
States
Bonds,
$4,159,200 $1,817,000
9,235,000
2,252,000
9,888,000
3,777,000
6,683,000
3,033,000
HOLI DAY
5,931,000
1,595,000
Total
Bond
Sales.
8418,000
800,850
989,000
403,000
$6,394,200
13,287,850
14,654.000
10,119,000
506,000
8,032,000
Correction.-Last week's figures for Monday (Dec. 22) should have read as follows:
Stocks, 2,104,325; railroad, &c. bonds, $8,788,000; State, municipals and foreign
bonds, $3,250,000; United States bonds, $819,000; total bond hale, $12,857,000.
Total for week should have read as follows: Stocks, 9,058,288; railroad, &c. bonds,
$32,613,000; State, municipal and foreign bonds, $11,973,000; United States bonds,
$2,709,000: total bond sale, $47,295,000.
Sales at
New York Stock
Exchange.
Week Ended Jan. 2.
193.1.
Stocks-No, of shares.
Bonds.
Government bonds...
State & foreign bonds_
Railroad & misc. bonds
Total bonds
I
1930.
Jan. 1 fo Dec. 31.
1929.
1930.
11,581,337
13,478,510
738,965,651
1,124,992,940
$3,116,850
13,474,000
35,896,200
$2,927,000
9,908,000
26,898,500
$115,785,250
720,760,900
1,927,021,400
$140,662,000
655,945,650
2,976,777,450
$52,487,050 $39,733,500 $2,763.567,550 $3,773,385,100
Correction.-Last week's figures for Jan. 1 to Dec. 26 1930 should have read as
follows: Stock, 729,415,664; Government bonds, $113,174,400: State and foreign
bonds, $704,881,900; railroad and miscellaneous bonds, $1,897,056,200; total bonds,
$2,719,112,500.
DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston,
Week Ended
Jan. 2 1931.
Philadelphia.
Baltimore.
Shares, Bond Sales. Shares. Bond Sales. Shares. Bond Sales.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
38,116
71,002
91,822
37,890
Total
247,534
8,704
$56,000
544,000; a32,036
55,000
67,100 a62,089
55,000
91,095
51,000
57,100
41,000 a37,503
HOLI DAY
14,000! 18,750
$217,1001 241,473
5223,100
1,641
4,326
10,678
5,592
$13,000
15,500
16,000
7,300
1,445
6,000
23,682
$57,800
77
SILVER.
The week has been an eventful one in the silver market, the weakness
prices fell to a level substantially lower
extent
that
developing to such an
than any hitherto recorded.
The week under review opened with quotations at 15 9-16d. for cask
and 154d. for two months' delivery, but on the 12th inst. 15 1-16d. was
fixed for both positions, cash falling 4d. and forward 7-164. The recovery to 15%d. by the 15th inst. proved short-lived, as yesterday, in the face
of comparatively heavy offerings, the market was forced down f‘d. to
14 qd., thus creating a new low record.
The fall may be attributed in the main to the loss of confidence to which
we referred last week, conditions offering no inducement for fresh buying,
the only demand being that for covering near bear commitments. On
the other hand, bulls, accepting the weak view, have been disposed to re-sell,
a considerable amount of such selling being responsible for yesterday's
heavy fall, insufficient resistance being met except at the low price fixed.
Demand from India and China to-day caused a reaction to 14 11-164.,
but there is as yet little that affords hope of any appreciable improvement.
The following were the United Kingdom imports and exports of silver
registered from midday on the 8th inst. to midday on the 15th inst.:
Exports.
Imports.
£10.000
£93.407 British India
United States of America9,900
Iclexico
45,997 Hong Kong
9,495
22,858 France
British West Africa
7.495
9,901 Other countries
Canada
10,000
Australia
Other countries
5.361
E36,399
£187,524
INDIAN CURRENCY RETURNS.
(In Lacs of Rupees.)
Dec. 7. Nov. 30. Nov. 22.
16484
16484
Note.; in circulation
16317
12266
12251
Silver coin and bullion in India
12224
Silver coin and bullion out of India
Gold coin and bullion in India
Gold coin and bullion out of India
Securities (Indian Government)
Securities (British Government)
3226
3227
867
867
138
124
Stocks in Shanghai on the 13th inst. consisted of about 94,200,000 ounces
in sycee, 151,000,000 dollars and 2,700 silver bars, as compared with about
95,300,000 ounces in sycee, 150,000,000 dollars and 2,960 silver bars on
the 6th inst.
Quotations during the week:
Bar Gold
-Bar Silver per Oz. Std.Cash.
per us. Fine.
2 Mos.
Dec. 11
15 9-164.
154d.
85s. 14d.
Dec. 12
15 1-164.
85s. 14d.
15 1-164.
Dec. 13
153-164,
85s. 1 4d.
15 3-164.
Dec. 15
15d.
85s. 1 4d.
35'd.
Dec. 16
856. 1 d.
144d.
144d.
Dec. 17
85s. 13,d.
14 11-164.
14 11-164.
Average
15.042d.
15.031d.
85s. 1.54.
The silver quotations to-day for cash and two months' delivery are respectively Ud. and 11-164. below those fixed a week ago.
ENGLISH FINANCIAL MARKET-PER CABLE.
(See page 88.)
COURSE OF BANK CLEARINGS.
clearings
this week will again show a decrease as comBank
warrants were: Saturday, 300; Monday, 2,000: Wednesday, 100.
pared with a year ago. Preliminary figures compiled by us
based upon telegraphic advices from the chief cities of the
THE ENGLISH GOLD AND SILVER MARKETS.
country indicate that for the week ended to-day (Saturday,
We reprint the following from the weekly circular of Jan. 3) bank exchanges for all the cities of the United States
Samuel Montagu & Co. of London, written under date of from which it is possible to obtain weekly returns will fall
16.3% below those for the corresponding week last year.
Dec. 17 1930:
Our preliminary total stands at $9,440,369,041, against
GOLD.
The Bank of England gold reserve against notes amounted to £151.597,547 $11,278,006,997 for the same week in 1929. At this centre
on the 10th inst. (as compared with £154,648,810 on the previous 'Wednesthere is a loss for the five days ended Friday of 22.5%.
day), and represents an increase of £5,637,463 since Jan. 1 last.
About £490,500 of bar gold from South Africa arrived this week but only Our comparative summary for the week follows:
Prey. week revised
188,505
5248,000, 129,236
3259,300
12,082
101,700
a In addition, sales of rights were: Saturday, 2,000: Monday, 200. Sales of
£65,000 was available in the open market yesterday, the rest having been
sold forward to France. The price was fixed at 85s. 14d. per fine ounce,
Cleartngs-Returns by Telegraph.
Week Ended Jan. 2.
at which the amount on offer was acquired for the home and Continental
trade.
New York
The German demand for gold has ceased, the exchange having moved in Chicago
favor of sterling, but about £300,000 of bar gold is still withdrawn each day Philadelphia
Boston
from the Bank of England for export to France after refining.
Movements of gold at the Bank of England during the week show a net Kansas City
St. Louis
efflux of £1,045,363. Receipts consisted of £400,000 in sovereigns "re- San Francisco
leased" and £1,126,619 in sovereigns received from abroad; of the latter. Los Angeles
£920,241 was from Brazil and £200,000 was from South Africa. With- Pittsburgh
drawals totaled £2,571,982, which included £20,834 in sovereigns "set Detroit
•
Cleveland
aside," £600,000 in bar gold for Germany, and £1,800,000 in bar gold for Baltimore
New Orleans
France.
The following were the United Kingdom imports and exports of gold
Twelve cities, 5 days
registered from midday on the 8th inst. to midday on the 15th inst.:
Other cities, 5 days
Imports.
Exports.
all cities, 5 days
Venezuela
£13,503 France
£2,194,319 AllTotal
cities, 1 day
Irish Free State
9,000 Germany
1,221,993
British West Africa
32,121 Switzerland
15,430
Tntal all cities for week
British South Africa
953,286 Spain
10,000
Other countries
21 Austria
13,250
•Estimated.
Other countries
7,559
£1,007,931
£3,462,551
The United Kingdom imports and exports of gold for the month of November last are appended:
Imports.
Germany
£34
Netherlands
France
Switzerland
Spain
1,000,000
Austria
West Africa
86,208
Argentina, Uruguay & Paraguay
20,000
Other countries in South America
2,527.171
Union of South Africa (including South-West Africa
Territory)
3.511.509
Rhodesia
86.955
British India
Straits Settlements
Australia
Other countries
Exports.
£193,189
20,700
8,154,138
126.091
204,000
87,440
77,375
127,208
1,103,633
3,206
6,783
£8,465,924
£8,869,716
Per
Cent,
1931.
1930.
$5,160,677,679
384,614,314
401,000,000
331,000.000
88,080,486
101,100,000
121,791,000
Will no longer
*130,000,000
138,568,127
•100,0013,000
66,900,901
28,227,914
$6,657,000,000
531,517,261
529,000.000
417.000,000
104,054,705
139,900,000
159,323,000
report clearings
145,539,947
164.700,893
126,160,944
85,936,725
46,894,597
-22.5
-27.7
-24.2
-20.6
-15.4
-28.8
-23.6
57,051,960,421
815,013,780
$9,107,028,072
1,021,405,830
-22.6
-20.2
$7,866,974,201 $10,128,433,902
1,149,573,095
1,573,394,840
-22.4
+36.9
39.440.369.041 511.278.006,997
-16.3
-30.7
-15.9
-20.7
-22.3
-39.8
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 had 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 Dec. 27. For
that week there is a decrease of 21.4%, the aggregate of
clearings for the whole country being $7,456,214,628,
against $9,488,177,448 in the same week of 1929. Outside
of this city there is a decrease of 23.0%, while the bank clearings at this centre record a loss of 20.5%. We group the cities
78
now according to the Federal Reserve Districts in which they
are located, and from this it appears that in the New York
Reserve District, including this city, the totals show a
shrinkage of 20.5%, in the Boston Reserve District of 22.8%,
and in the Philadelphia Reserve District of 39.8%. In the
Cleveland Reserve District the totals register a loss of
13.1% in the Richmond Reserve District of 15.0%, and in
the Atlanta Reserve District of 21.7%. In the Chicago
Reserve District there is a loss of 33.9% in the St. Louis
Reserve District of 28.0%, and in the Minneapolis Reserve
District of 19.9%. The Kansas City Reserve District has a
decrease of 15.8%, the Dallas Reserve District of 40.6%, and
the San Francisco Reserve District of 34.3%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
Week Ended Dec. 27.
1929.
1930.
Inc.or
Dee.
S
557,248,504
6,996,072,136
508,552,574
354,997,258
156,615,191
172,097,510
881,811,245
199,876,323
103,515,446
166,861,4E5
65,883,325
326,187,928
Total
126 cities
Outside N. Y. City
9,488,177,448 -21.4 10,066,156,552 10,494,748,970
3,570,688,469 -23.0 3,854,040,615 3.654,151,510
7,456,214,628
2,749,954,041
31 eines
283 203 3
449.8614.946 -366
$
479,923,923
7,356,685.273
589,645,275
395,879,825
155,127,075
167,609,643
995,015,068
214.096,080
112,971,471
180,293,558
78,011,099
340,898,272
402.511318
392.995.578
We now add our detailed statement, showing last week's
figures for each city separately,for the four years:
Week Ended Dec. 26.
Clearings ra1930.
Inc. or
Dec.
1928.
+0.6
-8.4
-23.9
-43.8
-59.1
-55.9
-2.4
-8.6
-15.5
-(1.0
-28.6
-18.7
567,808
3,043,928
431,000,000
1,162,677
1,046,700
916,265
4,633,647
2,967,559
14,833,605
6,470,718
12,675,800
692,216
524,469
2,861,748
504,000.000
1,826,675
1,190.038
1,596,537
4,746,138
2,765,885
17,624,844
6,388,869
13,174,200
548,601
428,944.908 -22.8
479,923,923
557,248,504
1929.
First Federal Reserve Dist rict-Boston
Maine- Bangor_
471.349
463,716
2,643,854
Portland
2,884,066
Mass.-Boston_
294,092,910 386,197,410
Fall River..
750,815
1,116,219
Lowell
412,132
1,006.994
New Bedford_ _
614,730
1,393,713
Springfield _ 3,578,994
3,665,694
Worcester
2,372,697
2,594,793
Conn.-Hartford
10,408,589
12,311,591
New Haven_._
8,242,844
6,640,435
R.I.-Providence
9,209,900
12,708,500
N.EL-Manches.
458,071
556,570
Total(12 cities)
331,256,885
Second Feder al Reserve D istrict-New
N. Y.-Albany
4,404,758
4,549,854
Binghamton...
847,814
800,167
35,486,924
46,594,382
Buffalo
882,747
584,704
Elmira
828,589
949,185
Jamestown_
New York__
4,706,260,587 5,917,488,979
8,794,764
11,636,310
Rochester
4,970,613
4,312,296
Syracuse
4,290,512
4,071,467
Conn.-Stamford
532,320
N. .1.-Montclair
609,025
Newark
32,637,157
38.009,447
31,255,488
44,830,294
Northern N. J..
1927.
York
--3.2
4,644,272
5,045,878
+5.9
994,422
1,156,560
--23.9
46,884,241
47,778,504
+51.0
694,008
955,887
--12.7
1,061,055
1,153,851
--20.5 7,212,113,947 6,840,587,460
--24.4
11,997,090
12,180.036
--13.2
5,055,438
5,587.120
9-15.3
3,996,452
12,885,521
--12.6
787,128
689,965
--14.1
26,285,014
31,455,876
--30.3
41,164,458
37,933,228
Total(11 cities) 4,830,533,956 6,075,094,427 -20.5 7,358,685,273 6,996,072,136
Third Federal Reserve Dist rict-Philad elphla
Pa.- Altoona__ _
1,048,727
1,221,965 -15.2
Bethlehem _ _ _ _
3,914,796
3,248,873 +20.5
911,711 -17.8
749,496
Cheater
1,372,379
1,190.894 +14.3
Lancaster
412,000,000 584,000,000 -29.5
Phlladelphia__
2,418,283
Reading
2,996,570 -29.4
3,574,059
Scranton
4,412,988 -19.0
2,366,634
2,934,080 -19.4
Wllkes-Barre_ _
York
1,591,113
1,685,995 -5.6
3,580,000
N.J.-Trenton.._
4,354,834 -17.8
589,645,275
508,552,574
Fourth Feder al Reserve D istrict-Clev eland
Ohlo-Akron_ _
3,589,000
3,998,000 -11.5
Canton
3,006,085
3,874.780
22.4
49,136,976
59,219,168 -28.0
Cincinnati_ _ _
95,567,474 120,928,764
31.0
Cleveland
11,128,100
15,354,000 -37.6
Columbus
1,348,128
1,166,197
24.5
Mansfield
3,451,270
4,781,069 -27.8
Youngstown__
Pa.-Pittsburgh - 159,386,680 166,152.456 -13.1
6,314,000
3,606,067
68.232,821
124,136,942
14,843,200
1,582,834
5,672,803
171,471,158
5,326,000
3,127,555
64,262,000
111,046,667
15,227,900
1,413,760
4,782,762
149,810,611
354,997,258
970,144
4,451,945
42,734,000
1,712,628
82,658,985
22,599,373
958,977
5,666,264
36,919,718
2,043,289
88,942,100
22,084,846
148,023,572 -15.0
155,127,075
156.615.104
-44.2
-22.6
-14.7
-29.3
-42.3
-18.1
31.3
-36.6
-11.6
+4.4
-19.2
-20.5
2,463,794
20,334,913
52,514,097
2,046,856
1,482.385
14,540,138
2,602.000
20,996,953
1,770,439
2,109,512
420,979
46,927,577
2,500,000
19,431,867
45,106,587
1,527,209
1,580,034
14,982,566
2,941,000
23,083,617
1,518,133
1,282,173
387,514
49,751,331
151,886,369 -21.7
167,609,643
172,097,510
Total(6 cities)_
125,877,248
Sixth Federal Reserve Dist rict-Atlant
Tenn.-Knoxville
2,609,000
*1,500,000
18,548,496
Nashville
14,355,346
44,311,251
Ga.-Atlanta___
38,273,433
1,992,193
Augusta
1,408,026
Macon
1,890.040
1,092,991
Fla.-Jack'nville.
11,065,231
13,500,000
Miami
2,180,000
•1,500,000
Ala.-Birming'm.
13,173,656
20,779,653
Mobile
1,432,329
1,619,832
Miss.-Jackson_ _
1,438,000
1,377,000
Vicksbrug
136,747
169,286
La.-NewOrleans
34,123,667
42,909,568
Total(12 dries)
119,499,426
886,841,245
5,136,721
131,300,000
36,875,015
411,572
25,287,509
13,660,908
304,581
1,119,774
3,831,943
128,300,000
31,789,798
357,276
20,968,984
13,102,666
388,337
1,137,317
214,098,080
199,876,323
Ninth FederaI Reserve Dis trict-Minn eapoli 5,620,540
5,787,916
8,107,035 -5.2
Minn.-Duluth_ _
76,508,427 -32.4
72.721,558
59,425,146
Minneapolis_. _
20,899,116 -16.9
27,740,632
17,374,430
St. Paul
1,589,783
1,597,977
,1,725.020 -7.4
No. Dak.-Farg D
963,184 -8.2
1,041,725
S. D.-Aberdeen_
894,265
499,414 +9.6
629,233
547,371
Mont.-Billings.
3,545,718 -22.6
3,628,000
2,744,743
Helena
6,139,085
63,944,842
27,574,194
1,577,048
1,100,851
506,426
2,676,000
Total(8 cities) _
140,604,517
196,384,083 -28.4
112,971,471
103,515,446
Tenth FederaI Reserve DM trict-Kans sac City288,471 -3.0
278,678
279,718
Neb.-Fremont_ 425,018 -26.4
481,272
359,509
Hastings
_
3,396,291
2,326,825
2,847,771 -18.3
Lincoln
35.070,964
33,565,528
34,665,952 -3.2
Omaha
3,484,615
3,210,290
3,192,588 +1.5
Hans -Topeka,._
7,865,681
5,451,654
6,739,000 -19.1
Wichita
95,162,691 117,871,336 -29.4 121,413,871
Mo.-Kans, Cit 7
5,201,253 -20.8
5,924,617
4,122,541
St. Joseph_ _ .
1,073,253
1,092,770 -33.7
845,371
Colo.-Col.Spgs.
1,304,316
1,134,364
1,509.802 -24.9
Pueblo
334,304
414,732
3,849,581
33.039,510
3,159,564
7,065,312
111,398,168
5,466,315
1,120,835
1,013,164
Total(7cities).
Total(10 cities 1
88,371,848
146,458,491
110,247,914 -19.9
173,833,961 -15.8
180,293,558
166,861,485
+16.5
-39.0
-45.4
-58.4
-56.5
1,500,382
51.537,390
13,233,162
6,821,000
4.919,165
1,201,733
43,899,491
11,214,105
5,287,000
4,281,000
82,937,597 -40.6
Eleventh Fed :.. cal District- DallasTex.-Austin _ _ .
1,181,926
1,005,757
Dallas
34,920,765
57,213,078
Fort Worth_ _ .
6,952,959
12,722,632
.
Galveston
2,913,000
7,000,000
3,278,217
La -Shreveport
4,996,112
Total(5 cities)
49,246,867
Twelfth Fede at Reserve D istrict-San
29,201,397
36,147,924
Wash.-Seattle,_
8,514,000
Spokane
10,793,000
•
850,460
1,442,607
Yakima
Ore.-Portland _ •
26,213,513
31,731,026
Utah-S.L. City
16,142,353
19,921,526
Calif.-Fresno__ •
1,887,867
3,204,042
Long Beach_ _
5,721,503
6,896,743
12,227,183
14,895,846
Oakland
4,124,082
4,581,372
Pasadena
4,718.873
5,120,026
Sacramento..
4,313,022
5,924,262
San Diego_ _ _ _
San Francisco
130,612,997 183,588,628
2,078,617
2,589,879
San Jose
1,685,016
1,500,000
Santa Barbara_
1,567,660
1,568,854
Santa Monica_
1,361,000
2,008,500
Stockton
Total(17 cities)
251,119,543
78,011,099
85,883,329
Franci sec,
-19.2
41,506,616
-41.1
11,599,000
-41.1
1,249,994
-17.4
31,001,035
-19.0
19,087,084
-41.1
3,151,445
-17.0
7,253,729
-18.8
18,132,397
6.030,148
-15.9
-9.0
4,820,711
-27.2
4,976,935
-28.8 184,839,446
2,384.868
-19.7
1,421,06'
+12.3
-0.1
1,599,805
-32.2
1,844,000
38.281,896
11,224,000
1,108,349
30,458,735
21,140,348
3,176,034
6,021,611
17,680,225
5,485,977
5,122,017
3,746,742
175,375,000
2,427,638
1,498,012
1,626,842
1,864,500
340,898.272
326,187,926
331,914,235 -34.3
Grand total (126
cities)
7,456,214,628 9,488,177,448 -21.4 10068158 562 10494748970
Outside N.
2,749,954,041 3,570,688,469 -23.0 3,854,042,615 3,654,161,510
Week Ended Dec. 24.
Clearings at1930.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
M oose Jaw
Brantford
FOrt William..
New Westminster
Medicine Hat_
Peterborough,._ _
Sherbrooke
Kitchener
Windsor
Prince Albert_ __ _
Moncton
Kingston
Chatham
Sarnia
Total(31 cities)
.4a
395,819,825
326,431,782
1927.
995,015,068
,i.
375,656,365 -13.1
Fifth Federal Reserve Dist act-Richm ond922,143 -14.4
900,309
W.Va.-Hunt'g'n
3,436,183
4,115,000 -6.6
Va.-Norfolk__ _ _
39,674,000 -21.5
31,182,000
Richmond _
1,973,566 -27.5
1,434.100
S.C.-Charleston
90,490,229 -14.2
89,099,187
Md.-Baltimore _
20,848,634 -4.9
19,825,469
D.C.-Washing'n
Total(8 cities)_
1928.
806,296,107 -33.9
1929.
MOOCIM.00N.C
CO Mt.
..-0MONCIOOMCO
t..t..0
.
1..
,,,
MOCW ,
14 000t
,
MCMM ,
.......MONMODO,
C.M
VC,TMMON,
,V,W=0,1com..=,.m,loomr,...r:
606,957,910 -39.8
432,615,487
Inc. or
Dec.
Eighth Feder a I Reserve Die triet-St. Lo uis3,074,937
4,269,248 -27.8
Ind.-Evansvill
99,400,000 125,900,000 -21.1
Mo.-St. Louis_ _
18,602,751
29,658,841 -37.3
KY.-Louisville _
321,945
472,552 -31.9
Owensboro__ _
11,811,173
19,960,308 -40.8
Tenn.- Memphis
6,744,137
Ark.-Little Roc k
14,285,598 -52.6
138,629
Ill.- Jacksonville
638,821 -78.3
510,945
1,198,715 -57.4
Quincy
W= M,.
1,245,177
15,845,848
984,828
1,577,107
468,000,000
3.678,941
4,864,332
4,051,660
1,508,503
6,796,178
1929.
$
$
$
%
$
Seventh Feder al Reserve D istrict-Chi cagoMich.-Adrian _
184,252
194,229 -16.3
203,620
192,833
Ann Arbor_ _ _ _
536,110
554,477 -3.3
759,833
818,241
Detroit
119,475,400 170,084,643 -29.8 207,511,783 146,152,589
4,330,241
4,482,549 -3.4
Grand Rapid _
7,753,051
6,458,197
Lansing
1,794,868
2,224,333 -19.3
2,552,857
1,855,945
2,345,068
3,297,366 -29.9
Incl.-Ft Wayne
3,557,905
3,201,447
14,030,000
20,218,000 -30.6
Indianapolis_ _ _
20,574,000
18,494,000
South Bend_ _ _
1,727,962
3,252,337 -48.9
3.165.800
2,153,010
3,883,891
Terre Haute_ _ _
4,600,147 -15.6
5,176.601
4,611,810
19,857,204
Wis.-Milwauk e
26,469,466 -25.0
27,418,074
35,768,244
2,514,356
2,538,789 -2.0
Iowa-Ced. Rat>.
2,422,101
2,252,630
Des Moines_ _
5,504,679
8,105,755 -30.1
7,728,461
8,078,065
2,914,060
5,161,332 -43.5
5,618,947
Sioux City_ _ _.
5,096,859
_
555,696
1,169,470 -52.5
1,156,838
Waterloo _
935,948
1,210,902
1,287,423 -18.0
1,414,778
1,192,779
11L-Bloomington
425,383,255 541,950,883 -21.5 647,008,195 638,981,587
Chicago
871,869
981,897 -11.4
1,085,967
Decatur
947,595
2,830,733
4,308,156
4,277,533 -33.8
Peoria
3,710,397
2,387,518
3,061,175 -33.1
3,173,440
2,760,616
Rockford_
__
1,861,314
2,384,253 -32.8
2,424,661
2,178,432
Springfield ._ _ _
ori.4.4c4O6,66W4,
-..-WdiriricirZo6Ouicpc
wpcert.u,,
,
,
...MCAMM...M.MONM.NNmNV.M
MOMNOMODO40,
0000.10eMeMWWOCCON000,,COMCC-04,
1,234,940
3,726,803
1,063,318
1,472,434
563,000,000
3,738,325
5.187,988
3,673,571
1.796,292
4,751,604
Total(10 cities)
1930.
Total(20 eine) 614,198,578
$
428,944,908
8,075,094,427
606,957,910
375,658,365
148,023,572
151,886,369
806,296,107
196,384,083
110,247,914
173,833,961
82,937,597
331,914,235
%
-22.8
-20.5
--30.8
-13.1
-15.0
-21.7
-33.9
-28.4
-19.9
-15.8
-40.6
-34.3
Week Ended December 26.
Clearings at-
1927.
1929.
Federal Reserve Diets.
$
331,256,885
let Boston... _ .12 cities
4,830,533,956
2nd New York_11 "
432,615,487
8rd Philade''ia_10 "
326,431,782
4th Clevelead__ 8 "
5th Richmond . 6 "
125,877,248
119,499,426
6th Atlanta__ __12 "
7th Chicago ___20 "
614,198,578
8th St. Louis__ 8 "
140,604,517
9th Minneapolis 7 "
88,371,848
10th KansasCity 12 "
146,458.491
6 "
11th Dallas
49,246,867
12th San Fran 17 "
251,119,543
Canada
(VOL. 132.
FINANCIAL CHRONICLE
233,203,326
$
161,285,013
130,680,082
59,100,030
21,947,448
7,703,289
7,244,482
3,516,515
6,804,573
13,345,563
2,653,491
2,470,875
3,113,408
6,108,720
5,500,000
567,960
773,048
2,825,095
1,300,557
1,463,670
1,161,187
1,090,300
470,897
1,200,000
900,252
1,492,252
5,175,624
450,000
1,113,741
800,000
877,237
700,000
Inc. or
Dec.
1928.
1927.
%
-53.8
-29.7
-45.4
-31.3
-17.5
-27.8
-37.2
-42.2
-34.2
-24.7
-27.5
-8.9
-26.2
-28.6
-24.7
-43.8
-36.2
-36.8
-29.5
-44.0
-40.8
-45.4
-26.5
-26.9
-21.8
-49.4
-27.6
-38.2
-8.8
-26.6
-9.1
$
116,656,426
134,196,913
55,715,161
18,681,511
7,405,755
6,468,673
3,187,147
5,252,680
13,262,017
2,716,969
2,288,076
2,977,275
6,760,583
5,585,972
681,135
897,758
2,626,370
1,391,455
1,246,538
967,187
760,461
628,553
1,120,822
927,232
1,234,362
4,813.182
472,986
934,232
788,855
835,461
723,071
5
120,952,234
122,408,827
63,365,534
17,517,931
7,070,270
6,599,111
3,301,322
5,030,517
9,677,417
2,324,806
1,981,979
3,001,421
5,903,403
5,051,485
631,851
500,603
2,443,866
1,249,118
1,393,041
904,915
624.556
435,604
937,840
777.403
1,225,917
4,877,822
418,131
725,086
370,823
754,356
538,309
449,668,946 -37.1
402,211,318
392,995,578
a No longer reports weekly clearings.
•Estimated
31931.]
FINANCIAL CHRONICLE
J.
79
Dec. Dec. Dec. Dec. Jan. Jan.
THE CURB EXCHANGE.
31.
1.
2.
27.
29.
30.
Per Cent of Par
Prices for Curb securities sagged in desultory trading in Cleaner& (I0)
80
88
Holt- 88
Roll- 88
62
day 61
day 61
62
the early part of the week but with the closing of the old Hatuburg-Amerlcan Lines (Banat:, 47)
100
100
101
100
Hamburg Electric Co.(101
year and the opening of the new a better market was in 11 eydeu Chemical(5)
42
41
42
75
ii
Harpener Beiybau (6)
evidence and moderate gains were recorded. Principal Hotelbetzlett (12)
94
94
96
96
123
123
125
124
G. Farben Indus.(Dye Trust)(14)
changes were in the utility issue. Amer. & Foreign Power 1.
109
__
100
108
Kali Climate (7)
67
68
es
67
warrants after a loss of over a point to 133A recovered to 17. Karstadt (12)
62
61
61
GI
Mannesmann Tubes (7)
5
Amer. Gas & Elec. corn sold down some five points to 77/s,
62
62
62
62
North German Lloyd (8)
55
55
56
so
Phoenix Bergbau (641)
then ran up to 102%, closing to-day at 94. Commonwealth Polyithonwerke
144
143
140
140
(20)
128
127
131
128
Rhein-We-4f. Elektr. (R.W.E.) (10)
Edison on few transactions advanced from 219i to 2233.,. Saelmenwert
78
78
78
76
Licht U. Kraft (7'v)
142
144
144
142
Duke Power gained 12 points to 125 in the later trading. Siemens & Halske (14)
101
102
100
103
Leonhard nets (10)
/
5
s
58
57
Electric Bond & Share common sold up from 383/i to 43
58
56
Ver. Staihwerke (United Steel works) (6)
3s. Nevada-California Electric
and finished to-day at 43/
advanced from 106 to 1147
/
8. Northern States Power com- Tornircercialand WCiscenatteonsBcurs
mon weakened from 125 to 122%, but recovered to 132.
Oils show few changes e importance. South Penn Oil deNational Banks.-The following information regarding
clined from 193
% to 16%, but recovered to 183
4. Standard
3 to 37U and Standard Oil National banks is from the office of the Comptroller of the
Oil (Indiana) sold up from 33%
(Ohio) common from 433A to 48. Vacuum Oil weakened Currency, Treasury Department:
APPLICATION TO ORGANIZE RECEIVED
from 5338 to 493, but recovered finally to 56. Gulf Oil
WITH TITLE REQUESTED.
Capilaf.
I Pa. advanced from 623
4 to 66%. Among industrials, Dec. 26-Phillips National Bank of Helena, Ark
$100,000
Aluminum Co. common dropped from 150 to 142, and reCorrespondent:J. G.Burke,Solomon Bldg., Helena, Ark.
covered finally to 1M%. Deere & Co. common weakened
APPLICATION TO ORGANIZE APPROVED.
from 333. to 30%, then sold up to 42. Great Atlantic & Dec. 27-Northwestern National Bank of Madison, So. Dak__ _ 50,000
Correspondent: Frank C. Smith, Madison, So. Dak.
Pacific Tea common jumped from 1583i to 1743
4 and
CHARTERS ISSUED.
finished to-day at 167%.
50,000
Dec. 22-The First National Bank in Manistique, Mich
President: Virgil I. Hixson. Cashier: W. C. Drevdahl.
A complete record of Curb Exchange transactions for the
Dec. 27-Lafayette National Bank & Trust Co.of Luxemburg,Mo. 50,000
President: John P. Meyer. Cashier: T. W. Felsch.
week will be found on page 108.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Bonds (Par Value).
Week Ended
Jan. 2
Stocks
(Number of
Shares).
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
467,300
879,600
1,117,200
579,300
Total
3,488,000
Rights.
'orators
Domestic. Government.
1,000 $1,766,000
2,900 3,390,000
3,400 3,983,000
2,200 2,851,000
HOLIDAY
3,100 2,520,000
444.600
Total.
5189.000 $1,955,000
624.000 4.014,000
1,463.000 5,446,000
300,000 3,151,000
267,000
2.787,000
12,600 514.510,000 52,843,000 $17,353,000
PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
received by cable each day of the past week have been
s follows:
Dec. 27 Dec. 29 Dec. 30 Dec. 31 Jan. 1
1930.
1930.
1930.
1930.
1931.
Francs. Francs. Francs. Francs. Francs.
ank of France
17.800 17.900 18,000
ammo Nationale de Credit_
1,195
1,200
1,200
ammo de Paris et Pays Sas_
2,140
2,150
2,160
anque de Union Paristenne
1.272
1.251
1,250
anad Ian Pueitio
1,010
1,010
1,020
anal de Suez
16,300 16,450 16,400
10 Distr. d'Electrieltle
2,120
2,100
2,030
ie Generale d'ElectricItie
2,520
2,510
2,530
le GIs Trans-Atlantique
500
500
490
ltroen 13
548
563
547
mptoir Nationale(PEsoompta
1,640
1.630
1,630
ty, Inc
610
600
610
urrieres
1,142
1,160
1,165
redit Commerciale de France
1,134
1,135
1,140
Wit Lyonnais
2,480
2,520
2,490
aux Lyonnais
2.450
2,450 2,380
nergle ElectrIque du Nord-855
870
855
nergle Electrique du Littoral._
1,060
1,070
1,060
ord of France
Itoh185
187
191
Rollcli Line
499
498
485
day
day
ales Lafayette
132
130
uhlrnann
633
622
Air Liquids
1:i66 1.100 1,090
yon (P. L. M.)
1,546
1,515
1,548
ord By
2,150
2.130
2,130
deans By
1,390
1,390
1,370
athe Capital
151
154
132
echiney
1,930
1,900
tea 3%
ics:56
85.40
85.30
entre 5% 1920
133.80 133.40 134.10
ntes 4% 1917
101.70 101.70 101.80
antes 5% 1915
101.00 101.10 101.20
ntes 6% 1920
100.80 101.10 101.20
yal Dutch
2,870
2,890
2,890
lot Cobh), C.& C
3,150
3,285
3,255
chnelder & Cie
1,580
1,675
1,625
lets Lyonnais
2,000
2,010
1.990
chile NIarseillaise
835
933
920
Dice Artificial Silk, pref
142
156
154
01011 d'Electricitie
1,010
1,010
060
agona-Lita
300
305
2110
Jan. 2
1931.
Francs.
17,600
2:i56
1:656
_
2:5i6
540
1,620
600
2:456
2,330
190
478
127
620
1,070
2:i66
1:1196
85.70
134.30
101.90
101.60
101.60
2,010
-656
PRICES ON BERLIN STOCK EXCHANGE.
Closing quotations of representative stocks on the Berlin
tock Exchange as received by cable each day of the past
eek have been as follows:
1111- Deutsche Credit(Adca)(8)
erne Hendels Ges.(12)
unners-und-privat Bank (11)
armstadter U. Nationalbank (12)
eutsche Bank u. Disconto Oes.(10)
resdner Bank (10)
eichsbank (12)
Igermeine Kunst:Ude Utile(Aku)(18)
11g. Elektr. Geo.(A.E.G.)(9)
eutsche Ton- und Steinzeugwerke (11)
rd Motor Co.. Berlin (10)
elsonkirchen Bergwerk (8)
Dec. Dec. Dec. Dec. Jan.
27.
29.
30.
31.
1.
Per Cent of Par
97
97
98
119
118
118
111
109
109
148
143
/45
110
108
109
110
109
109
228
227
228
42
43
44
91
91
92
68
68
69
15934 15734 /5934
81
81
81
Jan.
2.
98
118
110
144
110
110
228
43
91
68
15934
81
CHANGE OF TITLE.
Dec. 23-The American-First National Bank of Findlay. Ohio,to
"The First National Bank & Trust Co. of Findlay."
VOLUNTARY LIQUIDATIONS.
Dec. 22-The First National Bank of Seymour, Iowa
50.000
Effective Dec. 17 1930.
Liquidating Agent: H.T.Long, care of liquidating bank.
Absorbed by The National Bank of Seymour, Iowa,
No. 13495.
Dec. 27-The Central National Bank & Trust Co. of Tulsa, Okla _1,000,000
Effective Nov. 1 1930.
Liquidating Agents: J. E. Crosbie, C. A. Steele and
J. E. Wade, all of Tulsa, Okla. Absorbed by The
Exchange National Bank of Tulsa, Okla., No. 9658.
Dec. 27-Tennessee-Hermitage National Bank of Nashville, Tenn. 300,000
Effective Dec. 23 1930.
Liquidating Agents:E. A.Lindsey, F.P.Provost, Chas.
H. Hillman, Thos. B. Dozier and L. W. Hall, care of
the liquidating bank. Absorbed by Commerce Union
Bank of Nashville, Tenn.
CONSOLIDATIONS.
Dec. 22-The Columbus National Bank, Columbus, Miss
100,000
First National Bank in Columbus, Miss
100,000
Consolidated today under Act of Nov. 7 1918, under
charter of The Columbus National Bank, No. 10738,
and under corporate title of"First-Columbus National
Bank," with capital stock of $150,000.
Dec. 26-The Boston National Bank, Boston, Mass
625,000
Continental National Bank of Boston, Mass
500,000
Consolidated today under Act of Nov. 7 1918, under
charter of The Boston National Bank, No. 11903,
and under corporate title of "Boston-Continental
National Bank," with capital stock of 161,000,000.
The consolidated bank has one branch located in the City
of Boston, which was a branch of The Boston National Bank
and which was in lawful operation on Feb. 25 1927. Two
branches of The Boston National Bank which were authorized
since Feb.251927, were reauthorized for the consolidated bank.
BRANCHES AUTHORIZED UNDER THE ACT OF FEB. 25 1927'
Dec. 22-The First National Bank & Trust Co. of Montclair, N. J.
Location of Branch-In the neighborhood of the intersection of
Bloomfield Avenue and Church Street, Montclair.
Dec. 23-The Second National Bank of Cincinnati, Ohio.
Location of Branch-S. W. corner of Rockdale & Burnet Aves.,
Cincinnati.
Dec. 26-Boston-Continental National Bank, Boston, Mass.
Location of Branch-60 Devonshire Street, Boston.
Auction Sales.-Among other securities, the following,
not actually deatt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo. on Wednesday of this week:
By Adrian H. Muller & Son, New York:
Shares. Stocks.
$ per Ns.
300 Cornstalk Products Co., Com _ _510 lot
6 Wendover Holding Corp
$5 lot
3,000 United Jewelers, inc., com.,
no par
$50 lot
25 General Realty & Utility,01_51,275 lot
665 Van Blerck Motors, Inc., corn.,
no par
575 lot
500 Viking Gasoline, no par_3155 lot
500 Unity Gold Mines, par 55_551 lot
500 World Bestos Corp., corn., no
par
$75 lot
50 World Bestos Corp., pref____$300 lot
500 Universal Gypsum Co., com.,
no par
$12 lot
104 Spreckels Sugar, corn., no par_S41 lot
32 Educational Pictures Co., corn.,
no par
$64 lot
100 Barnett Leather Co., Inc., pref. 10
2.000 Billings Gasoline, common,
par $1
Si lot
500 Billings Gasoline. pref.. par $1_52 lot
500 Western States Oil Corp., par
$20 lot
510
90 Elco Petroleum Co.. par $25-56 lot
20 Trading Co., pref.; 4 common.
no par
520 lot
Deed for Royalty Grant in Nowata
515 lot
County, Okla
Deed for Royalty Grant in Mont$30 lot
gomery County, Kansas
125 Caracas Sugar Co., par 350_830 lot
160 Guardian Investment Trust.,
$250 lot
common
Shares. Stocks,
$ Per 35.
149 Manati Sugar Co., com___5149 lot
250 Connecticut Utilities Corp
$100 lot
100 Connecticut Trod. Corp., com..810 lot
150 Royalties Management Corp.,
$3001.0
common
1,24834 Amer. Cuptor Corp.. Com.,
$86 lot
no par; 61 preferred
1,000 59th St. & Filth Ave.. Corp.,
pref.: 1,000 com., no par.S2.25 Per unit
10 Clarence Saunders Stores, Inc.,
$111 lot
7% cumul. pref. A
100 Albert Pick & Co., pref. with
15
warrants
25 Iron Cap Copper Co., com___$31 let
100 Paramac Porcupine Tilines, Ltd.54 lot
$39 lot
2.000 San Toy Mining Co
100 Cady Lumber Corp., pref.
36 lot
temporary certificates
100 Cady Lumber Corp., common
$1 lot
temporary certificate, no par
11
500 Knox Hat Co
0,000 McGreevy Steel Co., par
10c
$12 lot
5 Roman Meal Co.
Si lot
50 Gopher 011 Co., par $10
$3 kit
100 Duluth-Toroda Co., par $1---$3 lot
1,000 Equoatorial Oil Co
51,000 tel
50 Tischenor Antiseptic Co___-$500 lot
552 Burnham Bros. Brick Co., pref.;
3,205 common, no par
$100 lot
167 National Reserve Corp. of Del.,
no par; 1307% pref
4501.s8
Shares. Stocks.
$ Per share.
10 Oveland Rubber Co., corn., par
$20; 130 Old Colony. Inc., pref.,
Par $10; 14 Old Colony. Inc.,
common, no par; 25 Dunn Pen
Co.. Inc., common, no par; 60
Dunn Pen Co., Inc., 8% pref.,
$19 lot
par $10
205 Chelsea Exchange Corp., class
$300 lot
A pref., par $30
351 Chelsea Exchange Corp. class
5500 lot
B common, no par
50 Inter-Continental Inv. Corp.,
$750 lot
6% cumul. preferred
100 Inter-Continental Inv. Corp.,
common non-vol. trust, no par.$30 lot
300 New Jersey Bankers See. Co.,
$500 lot
common, no par
1,000 Marvin Radio Tube Co..
$75 lot
common, no par
250 Chelsea Bank & Trust Co..
931
common, par $25
388 United Feldspar Corp., pref.;
$1,000 lot
647 common
10 Brick Row Book Shop., Inc..
$50 lot
7% cum. pref
40 Wade & Butcher Corp., pref_541 lot
1,450 Antilles Cigar Corp., no
$1000101
par
200 Southern Fire Insurance Co. of
10
New York, par $10
$ per share.
Shares. Stocks.
600 Southern Holding & Securities
$27 lot
Corp.. no par
1,000 Internat. Printing Ink, ware.$50 lot
20 Bela Blau, common, no par...531 lot
$50 lot
20 Bela Blau. preferred
$20 lot
90 Tekram Corp., no par
33 Almanac Theatre Corp., no par_38 lot
33 Almanac Theatre Corp., pref_537 lot
28,900 Red Bank 011 Co., corn.,
$2.50 share
no par
100 Pyramid Silk Co., Inc., Pref.:
830 lot
100 common, no par
10 Blake-Clarke Co., common; 30
$10 lot
Blake-Clarke Co., prof
200 Durium Products, 32 pref..__ 5
5
300 Hall Heating Co.. Inc
Promissory note of Compagnie
Generale de Mines en Bloivie,
dated Nov.3 1930, for 853,820.8375 lot
1031
200 Knox Hat Co
44 La Salle Petroleum Corp., pref.
with 1235 class A, 88 class B__$20 lot
Per Cent.
Bonds.
$3.500 Saint Mary Parish, La.,SubDrainage Dist. No. 1 of Avoca
Drainage Dist. 5% bonds, dated
Aug. 15 1911, and Aug. 15 1914,
$175 lot
certificates of deposit
$1,000 Utilities Service, deb. 6355,
$175 lot
1938 A certif. of deposit
By R. L. Day & Co., Boston:
$ per Sh.
Shares. Stocks.
25 Federal Nat. Bank. par $20__-- 95
68
50 First Nat. Bank. par $20
95
106 Federal Nat. Bank, par $20
10 Atlantic Nat. Bank, par $25..... 72
23 Nat. Shawmut Bank, Boston
5731
(cash delivery) par $25
35-3635
20 Associated Textile Coe
10 Cornell Mills (easel delivery)____ 3
100 United Merchants & Mfrs.,
Inc., pref., (cash dellvery); 100
common, voting trust certifs $500 lot
300 Royal Worcester Corset Co.,
6
common (cash delivery)
100 Old Colony Silk Mills Corp.
2
(cash delivery)
100 Royal Worcester Corset Co.,
common voting trust certificates
5
(cash delivery)
10 Carleton Co., Inc.(cash delivery)S2 lot
33 Lancaster Mills, corn. (cash
delivery); 10 New England Southern Corp., pref. (cash delivery).$5 lot
175 Boston Whippet Corp. (cash
$635 lot
Wdelivery)
5 Baush Machine Tool Co., corn.
234
(cash delivery)
10 Northern Texas Elec., pref.(cash
delivery); 50 Congo!. Petroleum
Corp., B, par $10; $1,000 Consol.
Petroleum Corp., 75, Jan. 1934,
coupon 1926 and subs. coupons
$11 lot
OD
13 Rheabat Corp., pref. (cash
delivery); 12 Rheabat Co., com_$1 lot
50 The Belamose Corp., 8% pref.
(cash delivery)
800 Internat. Paper & Power Co.,
common class C (cash delivery). 2
200 United Investment Assurance
Trust, Founders shares corn.;
10 Sayre Fisher Brick Co., pref.
(cash delivery); 10 common (cash
$15 lot
delivery)
95
15 Boston Wharf Co
Per Sit.
Shares. Stocks.
120 Public Indemnity Co. (cash
$125 lot
delivery) par $5
330 Rockland & Rockport Lime Co.,
pref.(cash delivery); 852nd pref.
(cash delivery); 135 corn. (cash
355 lot
delivery)
300 Monroe Stores, Inc., pref.(cash
delivery), par $10; 150 common
$4 lot
(cash delivery)
208 United Founders Corp., corn.
631
(cash delivery)
60 Montgomery Ward di Co.. Inc.
1535
(cash delivery)
100 Groton & Knight Mfg. Co.,
common (cash delivery)
231
48 Vasco Products, Inc., 8% pref.
pref. A (cash delivery) par $10...$5 lot
100 Wickwire Spencer Steel Co..
corn. tr. etis. (cash delivery)..$l31 lot
500 Stevens Walden, Inc., class A
(cash delivery) par $25; 200 class
$100 lot
B (cash delivery)
50 Kerr Lake Mines, Ltd. (cash
$2 lot
delivery) par $4
480
I Boston Insurance Co
Per Cent.
Bonds.
$2,000 Bowdoin Square Garage, 65
80 & int.
July 1940
$2,000 Brown Co., 5358, April
85 & int.
1946
ELMO Brown Co., 5358, March
85 dr int.
1950
$10,000 Aldred Invest. Corp., 4315,
Jan. 1968 (cash delivery)-40% & int.
One-sixth beneficial int. in 9.000
shares Waco Aircraft Co., stock
underlying and subject to declaration of trust dated June 28 1929
53.000 lot
(cash delivery)
$5,000 interest in a note of Harry S.
Kelsey for $250,000 bearing int.
at 8% dated Nov. 10 1925 to the
order of Edwin .1. Dreyfus (cash
$10 lot
delivery)
By Wise, Hobbs & Arnold, Boston:
$ per share. Shares. Stocks.
$ per share.
Shares. Stocks.
25 Schletter & Zander, Inc., con12 Federal Nat. Bank, par 320_ _ _ 95
231
Vertible pref., par $50
68 31
50 First Nat. Bank. par $20
52 Johnson Educator Biscuit Co.,
133/ Federal Nat.Bank,trust Ctrs.,
95
$6 lot
class B
par $20
200 Johnson Educator Biscuit Co.,
20 National Fabric& Finishing Co.,
3
34
class A
7% preferred
17
68 Atlantic Public Utilities, Cl. A_ 35c.
18 United Elastic Corp
4
10 Parker Young Co., pref
Associated Textile Cos. as follows:
30 Revere Copper dr Brass, Inc.,
12 at 35; 5 at 35;5 at 35;5 at 35; 5
15
class A
at 3634.
20
2 Revere Copper dr Dram, Inc.,
20 United Elastic Corp
7
7% preferred
30
25 Merrimack Mtg. Co., corn
$2,000 Chicago Harvard & Geneva
75 Worcester Consol. St. Ky.. 1st
25
1931:
March
55.
RR.
Lake
58025e.
beret.. Par
Texas Electric Ky., 2nd pref.;
10 Worcester Consol. St. Ky., 1st
34 lot
23 1-10 Okanogan Pow.& Irrigalell pref., par $80
$10 lot
tion Co., corn, demand note
5 Denver Tramway Co., pref
$551.20 Okanogan Pow. Se Irriga10 Mexican Northern Ky. Co.,
$1.10 lot
tion Co., dated Aug. 10 1923,
Woomrnon
515 lot
Interest 8%
210 Sawyer Fiske dr Spencer Secur.
$ 50 lot 72 Caribbean Sugar Co., pref.; 304
Corp.. pref
$50 lot
common
1 Investment Trust Co. of Amer.
$1 lot 1,100 Potrero Co., corn.; 44 pref_51 lot
preferred
62 Universal Tide Power Co., par
71 Eastern Mfg. Co., pref. par $50_ 16
1
$1; 50 Santa Fe Gold & Copper
50 Graton & Knight Co., corn
$7 lot
65
Mining Co., par lOcents
100 Amer. Glue Co.. common
_300.-60c.
Perrine Quality Products Corp.,
coca_
100
Corp.,
El.
dr
100 Atl. G.
corn.; 10 John West Thread Co.,
160 units Amer. Insurancestocks
50
class B;6 Richmond Lace Works,
Corp
Incorp.; 20 Checker Taxi Co.,
200 Tezultlan Copper Mining &
1131 lot
corn. el. A, par $10; 5 Butler
Smelting Co
Cutter
Mills; 32 Lancaster Mills, corn.;
Hair
Gaiety
200 U-Can
$1 lot
5 Richard Borden Mfg. Co..
Corp., par $10
corn.; 10 Ipswich Mills. corn.;
250 Consol. Chain Stores Corp.,
$100 lot
$41 lot
18 Lincoln Mfg. Co
preferred
1 Associated Theatres, Inc.. pref.;
300 Georgia Casualty Co.. par $5._ 80
Waltham
O'Hara
10
80
common;
2
$25
Par
Co.,
Ins.
dr
Bond.
50 Mass.
Co., class A; 5 Sharp Mfg. Co..
11 Taylor-Wharton Iron dz Steel
$5 lot
pref
854
Co., 7% preferred
Repeating Arms Co.,
Winchester
5
3
$5._
100 Excess Insurance Co., par
el. A, pref; 5 Ohio Varnish Co..
100 Amer. Depart. Stores Corp.,
$1 lot
Pref. class B
6
let oonv. pref. class A
631 Demand note for 57,150 dated June
88 Shawmut Bank Invest. Trust
I 1929 int. 7% signed by F. M.
50 Arcadian Consol. Mining Co.,
$10 lot
Bartlett
$6 lot
par $25
50 Georgia Casualty Co., par $5_ _$40 lot $31,000 note of General Slate Co..
1926-lot.
15
6%;
Nov.
due
Lime
Rockport
50 Rockland &
590 4-10 General Slate Co., corn.;
$40 lot
Corp., 1st pref
$10 lot
750 Monson Trust
100 Southern Surety Co., par 32.50_ 235
United Zinc dr Chemical Co..
12
&
Storage
50 Quincy Market Cold
$1 lot
common; 12 preferred
I7-1731
Wholesale Co., corn
dz
40 J. R. Whipple Corp., 1st pref__50 lot 25 Tezultlan Copper Mining
Mining
Rilla
500
Co.:
Smelting
15 J. R. Whipple Corp., common._ 90e.
Co. of Colo., par $1; 550 Great
100 Franklin Mining Co., ass. No.
3331101
Lakes Copper Co., par 35
$1 lot
5 paid. par $25
51 lot Notts of the Cary Lumber Co., as
5 University Investment Trust
follows: $40,000 dated Jan. 16
499 Bankstoeks Corp. of Maryland,
1928; $5.000 dated April 4 1928;
$2.75 lot
common class 13
$13,000 dated July 2 1928: $7,000
44 Southern Cities Utilities Co.,
1
dated Dec. 22 1923; 56.000 dated
7% preferred
Feb. 18 1929; 10 Cary Lumber
99 The Ross Stores, Inc., 1st pref $9 lot
83,950 lot
46 Atlantic Gas dr Electric Corp..
Co
elms A
131
[VOL. 132.
FINANCIAL CHRONICLE
80
Per Cent.
Per Cent.
Bonds.
Bonds.
$5,000 Florida East Coast Ky. Co.,
$10,000 Amer. Seating Corp., 6s,
5s, Sept. 1974
20
50 & int.
July 1936
$16,000 Punta Alegre Sugar 7s, 1937
$5,000 Imperial Russian Govt.,
5% flat
(certificates of deposit)
535s. 1929 (certifs. of deposit).350 lot
$25,000 Wickwire Spencer Steel
$600 Eastern Mass St. Ky., ser. B.
Corp. class A 78, 1930 (certifi2735 & int.
Is, due Jan. 1 1948
7% flat
cates of deposit)
$5,000 Amer. Beet Sugar Co., 6.s.
35 & int.
Feb. 1935
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
$ per Sit.
15 Philadelphia Nat. Bank, par $20 95
1 Citizens National Bank, Jenkin100
town, Pa
$2 lot
10 Union Bank & Trust Co
37 lot
21 Union Bank & Trust Co
$12 lot
37 Union Bank & Trust Co
50 United Strength Bank Sc Trust
32 lot
Co., par $10
10 Olney Bank & Trust Co., par $50 166
10 Tradesmens Nat. Bk. & Tr. Co_280
10 Adelphia Bk. & Tr. Co., par 310 5
5 Commercial National Bank &
18
Trust Co., par $10
40 Corn Exchange National Bank
89
& Trust Co., par $20
200 Bank of Philadelphia & Trust
35
Co., par $10
5
GO Bankers Trust Co.. par 550
5
200 Bankers Trust Co., par $50_ _
1,000 Bankers Trust Co., par $50._ 5
83 Bankers Trust Co., par $50___$100 lot
3
150 Plaza Trust Co.. par $10
50 Real Estate Land Title & Trust
31
Co., par $10
Pa. Co. for Ins. on Lives, &c., as
follows: 30 at 6735; 10 at 6614;
5 at 6634; 10 at 6635; 50 at 66;
175 at 66.
15 Broad St. Trust Co.. par $50_. 42
300 Aldine Trust Co., par $10_ _ _ _$50 lot
250 Aldine Trust Co., par $10___$50 lot
2,010 Aldine Trust Co.. par 510_5100 lot
200 Aldine Trust Co.. par $10_ _ _330 lot
553
10 Provident Trust Co
$5 lot
10 Snyder Music Co
150 Colombia Emerald Dev. Corp..35 lot
50 Fla. Certified Brokers, Inc., pref.$2 lot
Bankers Securities Corp., pref., as
follows: 120 at 15: 237 at 15;
158 at 15; 50 at 15; 150 at 15.
122 Bankers Securities Corp., corn_ 50
Bankers Securities Corp., corn.
v. t. c., as follows: 115 at 2535;
117 at 25; 46 at 25; 25 at 25:
25 at 25.
100 Phila. Nat. Ins. Co., par $10_ 19
Shares. Stocks.
$ Per Sh.
100 Independence Fire Insurance
1134
Co., par $10
200 Terre Haute Indianapolis dr
Eastern Traction Co., pref
$4 lot
22 West Jersey dz Seashore RR.
Co., special guaranteed stock__ 6031
10 John B. Stetson Co., corn.,
50
no par
150 Sharpless Solvents Corp., pref..
(with 160 shares common)
34
100 Broad & Walnut Corp
35
100 Sehletter & Zander. Inc., 335%
cum, cony. preference
$90 lot
46 Crystal Oil Ref. Corp., pref.;
$500 lot
70 common
279 Riser, Graham & Riley, 7%
cumulative preferred
Si
100 Public Utilities Consolidated
2
Corp., 7% preferred
160 James Butler Grocery Co., p1_510 lot
186.6 Standard Fruit & SS. Co.,
550 let
pref.; 373.2 common
1235
10 National Bank of Obey
Per Cent.
Bonds4,000 marks City of Hamburg,
Germany, 435s, 1919 (with in$5 let
terest coupons)
310.000 Rittenhouse Square Corp.
20-year Inc. Os, Jan. 1 1946_ _ 53(
$20,000 Sanford, Fla., certificate
11
of deposit, due Jan. 1 1951
$10,000 Broad 6: Walnut Corp.(Ritz
Carlton Hotel), 10-yr. 635s, 1937 1
31,000 Sewanee Fuel Se Iron Co.
1
1st mtge. 6.s. Jan. 1 1948
$5,000 Maratime Ky., Coal & Power
5
Co. 1st mtge. 6s, 1934
53.300 Drainage District No. 7.
Poinsette County. Ark., Aug. 1
$70 lot
1949, ctf, of deposit
$7,000 Advance Bag & Paper Co.
40
lot 6s, 1952
54,000 Lehigh & New England Termina! Warehouse Co. 7s, 1943_320 lot
53,000 Moose Smelting & Refining
$1 lot
Co. 1st 65, 1931
By A. J. Wright & Co., Buffalo:
$ per Sit.
Shares. Stocks.
350 Civic Planning Co., Inc__ _ _$2.25 lot
600 Transportation Indemnity Co.,
$7sh.
par 310
40 Perrin Curtin Lumber Corp., B_StO lot
10 Perrin Curtin Lumber Corp., A_32 lot
50 Riding Club Realty Co., Inc...325 lot
40 Interboro. Consol. Corp., pref_35 lot
300 Interborough Consol. Corp.,
common, no par
52 lot
10 United Hotels Co. of Amer., pref.
with 5 shares, corn. (no par)._ _$20 lot
20 N. Y. United Hotels. Inc., pref.
with 5 shares corn. (no par)._.$230 lot
Shares. Stocks.
5 Per Sit.
50 Southern Sotres Corp., 7% pref.
50 Southern Stores Corp., 7% Pref.,
with 50 shs. cl. 13 corn. (no par).51 lot
Per Cent
Bonds.
$10,000 Cleve. Southwestern Ry. &
Light Co., 30-yr. gen. & cons.
mtge., series A Is, March 11954.
with Sept. 1 1929 coupon and
$300 for lot
subsequent attched
$5,000 Pittsburgh Hotels Corp., 15year deb. sink. fund. 635s, Mar.
11943. Sept. 1930 and subsequent
$2 lot
coupons attached
By Weilepp-Bruton & Co., Baltimore, Md., on Monday,
Dec. 29 1930:
$perSh.
Shares. Stocks.
50 Akme Flue, pref.; 100 co!
$1 lot
23 Amer. Motors Corp., cl. B corn ;
$2 lot
40 8% deb. stock
$105 lot
2.000 1300t, Inc
10 Balt. Acceptance Corp., pref. 5
Bait. Acceptance Corp., corn.; 34
Nat'l Mtge. Co., pref., no par...$1 lot
20 Balt. Acceptance Corp., pref.; 10
$5 lot
common
15() Buffalo Gayety Theatre, com.$27 lot
485 Daniel Miller Co.,corn. no par_ 500.
459 Daniel Miller Co.,corn., no par_50c.
50 Fort Lauderdale (Fla.) Gas Co..
$100 lot
pref
10 Franklin Motor Car Co., pref.;
10 Franklin Motor Car Co., com.$2 lot
20 Foltis Fisher. corn., no par:
300 Talapoosa Co., par El; 25
Industrial Stores Corp., corn A_.$4 lot
1,500 Greater Fairmount Invest.,
corn.. par $5; 2,000 deb., pref..
$10 lot
par $5
24 Georgia & Fla. RR.,stock trust,
corn., no par; 28 stock trust pref.;
8 prof.: 12 corn.; 5500 non-mtge.
t2 lot
deb. 6s, 1951
4,202 The Gwynwood Apt. Co.,ser.
5100 lot
A pref.. par 31
51.50 lot
100 Hare & Chase, corn
500 Lorraine Petroleum, corn.; 100
$30 lot
Yarns Corp. of America
18 West Virginia Land Co., Ine___31 lot
$ per St.
Shares. Stocks.
$8 lot
365 Lorraine Petroleum. pref
10 units Mason Tire & Rubber Corp.
(units of 1 pref. & 2 corn.); 1
Mason Tire & Rub. Corp.; 70-100
Mason Tire & Rub. Corp., pref.;
40-100 Mason Tire & Rub. Corp.,
$25 lot
corn., no par
5335 units Mason Tire & Rubber
83 per unit
Co., pref
$3 lot
5 Madison Development Co
389 Mtge. Security Corp. of Amer.,
315 lot
eom.: 194 2nd pref
250 Mtge. Security Corp. of Amer.,
corn.: 5,000 National Mtge. &
$75 lot
Investment, corn
70 National Mortgage Co., pref.:
105 Nat'l Mortgage Co., corn.:
60 Baltimore Acceptance Corp.,
Prof.: 25 Baltimore Acceptance
$175 lot
Corp., corn
75 Non-Explosive Products (The
Arresto Co.), class A, no par._ 1
20 Pace Holding Corp.; 100 Federal
$3 lot
Hotel Co
100 Seaboard Mortgage Co., cons_ _35 lot
3 Youngs System, Inc., corn.; 9
$9 lot
pref
200 Yukon Consol. Gold Corp.,
$1 lot
Ltd
Per Cent.
Bonds35,000 Cherokee Co. let 8s. 1938,
516 lot flat
ctf. of deposit
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Railroads (Steam).
Boston Revere Beach & Gem
Lehigh & Hudson River (quer)
Mill Creek & Mine Hill Nay. & RR
Mill Creek dr Mine Hill Nay. dz RR
Paterson & Hudson River
Extra
Mehra. Fredericksburg & Potomac.Common and dividend obligations,,_
6% common non-voting
Stoney Brook RR
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
*30c. Jan. 31 *Holders of rec. Jan. 15
Dec. 31 *Holders of rec. Dec. 23
"2
*81.25 Jan. 8 *Holders of rec. Jan. 7
*51.25 July 9 *Holders of rec. July 8
*31.75 Jan. 2 'Holders of rec. Dee. 26
*25e. Jan. 2 'Holders of rec. Dec. 26
*4
*3
*3
Dec. 31 *Holders of rec. Dee. 20
Dec. 31 'Holders of rec. Dee. 20
Jan. .5 *Holders of rec. Dec. 30
Public Utilities.
Associated Gas & Electric Co $4 pref. (quer.) (No. 1) 51 or 1-70th
Feb. 2 Holders of rec. Dec. 30
share $5 preferred
*131 Feb. 2 *Holders of rec. Doc. 30
Broad River Power, pref. (quer.)
JAN. 3 1931.]
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Imbuing.
Public Utilities troticIudecb
Chesapeake & Pot. Telep,, Pref. (guar.) •th Jan. 15 *Holders of rec. Dec. 31
Chester & Philadelphia It;
• 81.125 Jan. 15 *Holders of rec. Jan. 8
Dixie Gas & Utilities, Pref.(guar.)
•1M Jan. 2 *Holders of rec. Dee. 29
Elec. Power & Light Corp.,com.(guar) 25c. Feb. 2 Holders of rec. Jan. 10
Allot. ctfs. (full paid) (corn. stock)___ *12Mc Feb. 2 *Holders of rec. Jan. 10
Second Preferred A (guar.)
•$1.75 Feb. 2 *Holders of rec. Jan. 10
Feather River Power, Pref. A (guar.)
•IK Jan. 2
Gardner Electric Light Co.. corn
*4
Jan. 15 *Holders of rec. Dec. 31
Preferred
•234 Jan. 1
Great Western Pow.(Calf.).7% Pt.(99) ✓1 5,i Jan. 1 *HOlders of rec. Dec. 5
6% Preferred (guar.)
"1M Jan. 1 *Holders of rec. Dec. 5
Green&CoatesSts., Phila.Pass.Ry.
41.50 Jan. 7 *Holders of rec. Dec. 28
Harrisburg Gas, pref. (guar.)
.01M Jan. 15 *Holders of rec. Dec. 31
Hartford Electric Light (guar.)
*68Me Feb. 1 *Holders of rec. Jan. 15
Home Tel. & Tel.. 7% pref
411.75 Jan. 2 *Holders of rec. Dec. 21
Interstate Utilities, corn.(guar.)
Jan. 15 "Holders of rec. Dec. 30
*22
Preferred (guar.)
•1M Jan. 1 *Holders of rec. Dec. 20
Iowa Public Service, 87 1st pref. (guar.) *81.7 Jan. 1 *Holders of rec. Dec. 15
$6 first preferred (guar.)
"81.50 Jan. 1 *Holders of rec. Dec. 15
$7 second preferred (guar.)
•51.75 Jan. 1 *Holders of rec. Dec. 15
$6.50 second preferred (guar.)
• 51.625 Jan. 1 *Holders of rec. Dec. 16
Jamaica Public Service(quan)
•250. Jan. 2 *Holders of rec. Dec. 15
Joplin Water Works. 6% pref. (quar.)
•1),1 Jan. 15 *Holders of rec. Jan. 2
Kentucky State Telep., pref. (guar.).
*51.75 Jan. 1 *Holders of rec. Dec. 25
Lincoln Telep. Secur., class A (guar.)
*50c. Jan. 10 *Holders of rec. Dec. 31
Class B (glum)
•25e. Jan. 10 *Holders of rec. Dec. 31
Maine Gas Co., common (guar.)
*50c. Jan. 15 *Holders of rec. Dec. 23
Common (extra)
*50e. Jan. 15 *Holders of rec. Dec. 23
Preferred (guar.)
*51.50 Jan. 15 *Holders of rec. Dec. 23
Minnesota Nor. Power,7% Pref.(guar.) •1x Jan. 2 *Holders of rec. Dec. 15
6% preferred (guar.)
•1
Jan. 2 *Holders of rec. Dec. 15
Missouri Gas& Elec.Sere., pr lien(qu.)_
11( Jan. 15 Holders of rec. Dec. 31
Missouri R1v.-Sloux City ridge.,
111 Jan. 15 Holders of rec. Dec. 31
Pf.
Montana Power, common (guar.)
*25e. Jan. 2 *Holders of rec. Dec. 13
Preferred (guar.)
•1
Feb. 2 *Holders of rec. Jan. 13
Nat.Public Service,COM.B.(special)*60e. Jan. 15 *Holders of rec. Dec. 31
New Bedford Gas& Edison Light
(guar.) •75e. Jan. 15 *Holders of rec. Dec. 26
New Hampshire Power. pref. (quar.).
*2
Jan. 1 *Holders of rec. Dec. 15
Pacific Public Service, class A
(quar.).- *32Me Feb. 2 *Holders of rec. Jan. 10
Penna. Power Co.,$6.60 Pr.(mthly.)
55c. Jan. 2 Holders of rec. Dec. 20
$6.60 preferred (monthly)
L55c. Feb. 12 Holders of rec. Jan. 20
$6.60 preferred (monthly)
55c. Mar. 2 Holders of rec. Feb. 20
$6 preferred (guar.)
$1.50 Mar. 2 Holders of rec. Feb. 20
Peoples Gas Light & Coke(guar.)
2
Jan. 17 Holders of rec. Jan. 3
Portland (Me.) Gas Light (guar.)
Dec. 31 *Holders of rec. Dec. 23
*$2
San Antonio Public Serv.,8%
Dec. 31 *Holders of rec. Dec. 20
Pref.(410 *2
7% preferred (guar.)
Dee. 31 *Holders of rec. Dec. 20
San Diego Consol. Gas & Elec.. tif. (gu.)
Jan. 15 Holders of rec. Dec. 30
Savannah Elec.& Power, 1st pref.D (111) *I% Jan. 2 *Holders of rec. Dec. 10
Seaboard Public Service, corn. (special) _ "40c. Dee. 29 *Holders of roe. Dec. 26
Southern Berkshire Power& Elee-Divid end de ferred.
Southern California Gas Co.,Pref.(qu.)_ *37Mo Jan. 15 *Holders of rec. Dec. 31
Preferred A (guar.)
'
374c Jan. 15 *Holders of rec. Dec. 31
Southern N.E.Telep.(guar.)
*2
Jan. 15 *Holders of rec. Dec. 31
Telluride Power Co.(guar.)
*1Mc. Jan. 20 *Holders of rec. Dec. 31
Preferred (guar.)
•1M Jan. 20 *Holders of rec. Dec. 31
Toledo Edison 7% pref. (monthly)
58 1-3c Feb. 2 *Holders of rec. Jan. 150
6% preferred (monthly)
50c. Feb. 2 *Holders of rec. Jan.150'
5% preferred (monthly)
412-3c Feb. 2 *Holders of rec. Jan. 15a
Tri-State Tel. & Tel. (guar.)
.1M Jan. 1 "Holders of rec. Dec. 15
United Telep. Co.(Del.), 2d pref.(qu.)- *81.75 Feb. 1 *Holders of rec. Jan. 20
Washington Gas & Elec., pref.(guar.)
*IM Jan. 1 *Holders of rec. Dec. 15
Western Power, Lt. & Telco., cl. A 1111.) •50c. Feb. 1 *Holders of rec. Jan. 15
West. United Gas& Elec.,63% Pf.(
*1%
Jan. 2 *Holders of rec. Dec. 19
(qu.)
6% Preferred (quar.)
*1% Jan. 2 *Holders of rec. Dec. 19
York Rys., common (guar.)
•51.50 Jan. 15 *Holders of roe. Jan. 5
Common (extra)
Jan. 15 *Holders of rec. Jan. 5
"83
Preferred (guar.)
•62M0 Jan. 31 *Holders of rec. Jan. 20
Joint Stock Land Banks.
Atlantic(Raleigh, N.C.).-Dividend om !Med.
Miscellaneous.
Adams(J. D.) Mfg.,common(guar.). •60c. Feb. 1 *Holders of rec. Jan. 15
Amalgamated Elec. Corp., Ltd., PL(q.) 75c. Jan. 15 Holders of rec. Jan. 5
American Can,corn.(guar.)
*51 Feb. 16 *Holders of rec. Feb. 2
American Dairies, Inc., pref.(quar.)
,. •151 Jan. 2 *Holders of rec. Dec. 15
American Factors. Ltd. (monthly)
•15c. Jan. 10 *Holders of rec. Dec. 31
Amer. Founders Corp., 1st pref. A ((111.) 87Sic. Feb. 2 Holders of rec. Jan. 3
7% first preferred, series B (quar.)
87340. Feb. 2 Holders of rec. Jan. 3
6% first preferred, series D (guar.).__
73c. Feb. 2 Holders of rec. Jan. 3
Amer. Investment Co.(Wisc.)Prior pref. and pref. B-Dividends om ltted.
American Phenix Corp., general stock
50c. Jan. 10 Holders of rec. Dec. 31
Amer.Title & Guar.(N. Y.), new (qu.)
•15e. Jan. 1 *Holders of rec. Dec. 20
Amer. Vitrified Products, corn,-Divide nd omi tted.
Preferred (quar.)
Feb.
Amoskeag Co., preferred
*$2.25 Jan. 3 *Holders of rec. Dec. 20
Andre Citroen Corp.Am.dep.rcts. B bear.shs.,26 88-100fr =CB Jan. 2 *Holders of rec. Jan. 14
Animal Trap Co. of America (quar.)..
•25o. Jan. 2 *Holders of rec. Dec. 27
Archer-Daniels-Midland Co., corn.(gu.) •50o. Feb. 1 *Holders of rec. Jan. 21
•1% Feb. 1 *Holders of roe. Jan. 21
Preferred (guar.)
Associated Sec. Invest., corn.(qu.)
*15c. Jan. 6 *Holders of rec. Dec. 22
Atlas Acceptance Corp., prof. WO
'13-4 Jan. 1 *Holders of rec. Dec. 20
•10.4 Jan. 2 *Holders of rec.
Atlas Thrift Plan, pref. (guar.)
Dec. 27
Automobile Banking,coin.(extra)
*50e. Jan. 10 *Holders of roe. Dec. 20
Baker (J. T.) Chem., coin.(guar.)
*7Sic. Dec. 31 *Holders of rec. Dec. 19
First and second preferred (gear.)
.01M Dec. 31 *Holders of rec. Dec. 19
Baldwin Co.,6% pref.(old) (guar.)._
•IM Jan. 15 "Holders of rec. Dec. 31
Bancroft (Jos.) & Sons, pref. (quar.)_
IM Jan. 31 Holders of rec. Jan.
Beaux-Arts Apt.(N. Y.), 1st pref.(qu.) •$1.50 Feb. 2 *Holders of rec. Jan. 15
10
Benefield Co., pref.(guar.)
'15( Jan. 2 "Holders of rec. Dec. 26
Blrtman Electric Co.,common Mari_ _ •25c Feb. 2 *Holders of rec. Jan.
.15
Preferred (guar.)
•$1.75 Feb. 2 *Holders of rec. Jan. 15
Bon Aml Co., class A (guar.)
$1
Jan. 31 *Holders of rec. Jan. 14
*50c. Jan. 17 *Holders of rec. Jan. 14
Clam B (quar.)
Class B (extra)
*50c. Jan. 17 *Holders of rec. Jan. 14
British Columbia Pulp & Paper WO
Feb. 2 *Holders
Browning Crane Co.,pref.((War.) -- *1 3-4 Jan. 2 *Holders of roe. Jan. 15
of rec. Dee. 20
Burdine's, Inc., pref.-Dividend passed
Burroughs Adding Mach., cont.(extra)_ *50c. Jan. 31 *Holders
of
rec. Jan. 8
•1yi Dec. 31 *Holders
Business Systems, Ltd.(guar.)
of rec. Dec. 31
Extra
•1
Dec. 31
Canadian Foreign Invest., pref.-Divide nd del erred. *Holders of rec. Dee. 31
Canadian Wineries (guar.)
*12Mc Jan. 15 *Holders of rec. Dec. 31
Capital Administration Co.,Ltd., pref.- Divide nd passed
Carpel Corp.(guar.)
.
37Mc Jan. I *Holders of rec. Dec. 22
Extra
•12Me Jan. 1 *Holders of rec. Dec. 22
Casco NIerca ntlle Tr.(Portland, Me.)_
Jan. 1 *Holders of rec. Dec. 31
Case Lockwood & Bramerd
Jan. 1 *Holders of rec. Dec. 19
Extra
Jan. 1 *Holders of rec. Dec. 19
Century Shares Trust, panic. shares_ _ _ $1
Feb. 1 Holders of rec. Jan. 2
Chicago Daily News, pref.(guar.)
*21.75 Jan. 1 *Holders of rec. Dec. 20
*I% Jan. 15
Cincinnati Milling Mach., pref.(410
*Holders of rec. Dec. 31
Cleveland Graphite & Bronze (quar.)_
*25c. Jan. 2 *Holders of rec. Dec. 24
Cleveland Securities, prior pref
20c. Jan. 10 Jan. I to Jan. 22
*
Collyer Insulated Wire
25c. Jan. 1 *Holders of rec. Dec. 24
Coated.Invests., pf.(qu.)(No.1)
*75c. Feb. 1 'Holders of rec. Jan. 15
4
Consolidated Investors Plan, pref
Jan. 2 Holders of rec. Dec. 20
Consolidated Stores, Inc., class A (guar.) *10c. Jan. 1 *Holders of rec. Dec. 15
Consolidated Trust Shares
*67e. Dec. 31
Corporation Securities, pref.(guar.).r75e. Feb. 2 Holders of rec. Jan. 10
Corporation Trust Share,
'35c. Dec. 3 *Holders of rec. Dec. 23
07e. Dec. 3 *Holders of rec. Dec. 23
Extra
Courtaulds,Ltd.
.
25,4 Jan.
Amer.dep.rcts. pref. reg
*Holders of rec. Dec. 22
*$3.50 Feb. 2 *Holders of rec. Jan. 24
Crowell Publishing, Preferred
*21.50 Jan. 15 "Holders of rec. Dec. 31
Curtiss-Wright Export Corp., pr.(qu.)
Dairy Corp. Canada, Ltd., pref.(qu.)._ "13,4 Jan. 2 *Holders of rec. Dec. 15
81.
FINANCIAL CHRONICLE
Name of Company.
When
Per
Cent. Payable
Boots Closed.
Days Inclusirs.
Miscellaneous (Continued).
De Haviland Aircraft, Ltd.
Jan. 9 *Holders of rec. Doc. 30
$5
Amer. deposit rem ord. new
•350 Jan. 2
Depositors' Bank Shares "B-1"
*15c. Jan. 2 *Holders of rec. Dec. 15
Devonian 011 (gear.)
'Mc. Jan. 1 'Holders of rec. Dec. 26
Eagle Lock Co.(guar.)
Eagle Picher Lead Co.. pref.(guar.).- '13-4 Jan. 15 *Holders of roe. Dec. 31
Jan. 1 *Holders of rec. Dec. 24
Eastern Bakeries, Ltd., pref.(quar.)
25e. Feb. 2 Holders of rec. Jan. 15
Eastern Dairies. Ltd.,corn.(qu.)
•134 Jan. 15 *Holders of rec. Dec. 31
Preferred (guar.)
Eastern Theatres(Canada) pref
334 Jan. 31 Holders of ero. Dec. 31
*331 Jan. 1 "Holders of rec. Dec. 20
Edwards(Wm.)Co., 7% preferred
.0131 Jan. 1 *Holders of roc. Dec. 20
6% preferred (guar.)
*14.25 cDec. 3 1•Holders of rec. Dec. 26
Equity Trust Shares in America
Feb. 2 'Holders of roe. Jan. 15
$1
Eureka Pipe Line (guar.)
*60c Feb. 1 *Holders of rec. Jan. 21
Fair (The)corn.(attar.)
*134 Feb. 1 *Holders of rec. Jan. 21
Preferred (gear.)
-be Apr. 1 *Holders of rec. Mar. 16
*623
Faultless Rubber Co..COMMOD NOW
Federal Cooperative Finance, pref.(go.) 173-1c Jan. 1 Holders of rec. Dec. 10
•173-1c Jan. 1 *Holders of rec. Dec. 31
Federal Discount Corp.(guar.)
Federal Electric Co., $7 pref. (quar.) .*51.75 Feb. 1 *Holders of rec. Jan. 15
•51.50 Feb. 1 'Holders of rec. Jan..15
$6 preferred (guar.)
Federated Business Publications, 1st PI. -Dlvi dead o Knitted.
25c. Jan. 15 Holders of rec. Jan. 5
Federated Metals (guar.)
•1M Dec. 31 *Holders of roe. Dec. 19
Fiberloid Corp., pref.(quar.)
*81.25 Dec. 3 *Holders of rec. Dec. 15
Fidelity Union Stock & Bond Co
•334 Jan. 2 *Holders of roe. Dec. 20
Fink (A.)& Sons, Inc., prior pref
First Invest.& Sec.(Cincinnati)(quar.). .
50c. Jan. 2 *Holders of roe. Dec. 20
•373-bc Jan. 1 *Holders of rec. Dec. 31
Food machinery Corp.,corn.(guar.)
50c. Jan. 1 *Holders of roe. Jan. 10
6 % preferred (monthly)
"50c. Feb. 1 *Holders of IOC. Feb. 10
634% preferred (monthly)
*50e. Mar.15 *Holders of rec. Mar. 10
634% preferred (monthly)
*50e. Apr. 15 *Holders of rec. Apr. 10
634% preferred (monthly)
634% preferred (monthly)
*50c. May 15 *Holders of rec. May 10
*50c. June 15 *Holders of rec. June 10
634% preferred (monthly)
634% preferred (monthly)
*50c July 15 "Holders of rec. July 10
*50c Aug 15 *Holders of rec. Aug. 10
% preferred (monthly)
634% preferred (monthly)
*50c Sept.15 *Holders of rec. Sept.10
Foster & Kleiser Co.,pref.(guar.)
•IM Jan. 2 *Holders of rec. Dec. 29
Freeman Dairy Co., pref.(guar.)
"1.54 Jan. 1 *Holders of rec. Dec. 15
Fundamental Trust SharesSeries A (cumulative type)(No. 1)__ _
19c Doe. 31 Holders of coup. No. 1
Series 11 (disbursement type)(No. 1)_ 40.4c Dec. 31 Holders of coup. No. 1
Garner Royalties, class A (monthly)___ _ •123-bc Dee. 31 *Holders of rec. Dec. 20
General Equipment Corp.(guar.)
.40c Jan. 1 *Holders of rec. Dec. 26
General Tire & Rubber,corn.(extra)
"51 Jan. 1 *Holders of rec. Dec. 20
German Amer.Bldg.& Loan Corp
*53 Jan. 2 'Holders of rec. Dec. 20
Gibraltar Finance Corp. corn. A (quar.)- 411 Jan. 1 *Holders of rec. Dec. 26
Preferred A (guar.)
-be Jan. 1 *Holders of rec. Dec. 26
*173
Gilmore 011(guar.)
*30c Jan. 31 *Holders of rec. Jan. 15
Goderich Elevator (Canada)(quar.)-35c Jan. 1 Holders of rec. Dec. 15
Guardian Bank Shs. Inv. Tr.. pref. WO '183-4c Jan. 1 *Holders of rec. Dec. 17
Guardian Inv. Tr.. cony. pref.(guar.) _ •37,Me Jan. 1 *Holders of rec. Dec. 17
Greening (B.) Wire Co., pref.(guar.)._'
134 Jan. 1 'Holders of rec. Dec. 16
Guardian Pub. Util. Inv. Tr., pref. MO •25c Jan. 1 "Holders of rec. Dec. 17
Guardian Part.Shares Inv. Tr.. Pt.(gu.) •311.1c Jan. 1 *Holders of rec. Dec. 17
Hamilton Cottons Co., Ltd., pref.(qu.)50c Jan. 2 Holders of rec. Dec. 15
Hamilton Loan Society(Pa.)(quar.)
*20c Jan. 15 *Holders of rec. Dec. 31
Extra
lo73-4c Jan. 15 *Holders of rec. Dec. 31
Hammond Clock (quar.)(No.1)
*50c Jan. 15 "Holders of rec. Jan. 10
Hartford Times(quar.)
"75c Feb. 15 *Holders of roe. }el). 1
Hatfield-Campbell Creek Coal. pt.(qu.) *2
Jan. 2 "Holders of rec. Dec. 20
Hathaway Bakeries. Inc., class B
25c Jan. 15 Holders of rec. Jan. 2
Houghton Elev. & Mach., pref.(qu.) . "1M Jan. 1 *Holders of rec. Dec. 20
Havana Lithograph,common
•81 Dec. 31 'Holders of rec. Dee. 26
•134 Jan. 15 *Holders of rec. Dec. 31
Preferred (guar.)
Heller(W.E.)& Co.,common (guar.).
*10c. Dec. 31
*4334c Dec. 31
Preferred (quar.)
Hercules Powder. pref. (guar.)
IM Feb. 14 Holders of rec. Feb. 3
Herring-Hall-Marvin Safe. common-Di vidend omItte
Hershey Chocolate Corp., corn. (quar.)_ *$1.25 Feb. 15 *Holders of rec. Jan. 26
Convertible preferred (quar.)
411 Feb. 15 *Holders of rec. Jan. 25
Convertible preferred (extra)
*51. Feb. 15 "Holders of rec. Jan. 25
Hill, Joiner & Co., Inc.. preferred
'53 Jan. I "Holders of rec. Dec. 31
Imperial Royalties. pref. A (monthly)
•18c. Dec. 30 *Holders of rec. Dec. 26
Preferred (monthly)
*1 Mc. Dec. 30 *Holders of rec. Dec. 26
Industrial Co.(guar.)
*50c Jan. 15 *Holders of rec. Dec. 31
Industrial Credit Service
•10c Jan. 10 *Holders of MC. Dec. 31
Insurance Invest. Corp., pref.(extra)_
*I0c Jan. 15
Insurance Secur. Co., Inc.(N.0.) (qu.) 173-bc Jan. 15 Holders of rec. Dec. 31
Daterallied Investment Corp., class A
35c Jan. 15 Holders of rec. Jan. 10
International Coal,common
Jan. 2 Holders of rec. Dec. 22
1
Jan. 2 Holders of rec. Dec. 22
4
Preferred
International Paints. Ltd., pref.(guar.)_ *563-bc Jan. 15 *Holders of rec. Dec. 31
Interstate Bond & Mortgage-Dividend omit ed
Investment Co. of America11(
*154 Jan. 1 'Holders of rec. Dec. 20
Preferred, A & B (quar.)
Investors Mtge.& Guar.,corn.(quar.)._ *373-b Dec. 31 *Holders of rec. Dec. 31
Common (extra)
*25c Dec. 31 *Holders of rtx. Dec. 31
Preferred (guar.)
•134 Dec. 31 *Holders of rec. Dec. 31
Investors Mutual Corp., class A-DIvld end o miffed
Investors Royalty, new-Dividend omit ted
Preferred (guar.)
•50c. Dec. 30 *Holders of rec. Dec. 20
Jamieson Coal & Coke (guar.)
•75c. Dec. 23 *Holders of rec. Dec. 22
Janss Invest., $6 class A (guar.)
*Holders of rec. Dec. 20
*51.50 Jan.
Joint Investors, Inc., pref. A & B-Divi dend o mitred
Jones (J. Edward) Royalty Trust A
$7.89 Dec. 26 *Holders of rec. Nov.20
Series B
* $13.67 Dec. 26 *Holders of roe. Nov.20
Kayser (Julius) & Co., corn.(quar.)---- •62
Feb. 1 *Holders of rec. Jan. 15
Kroehler Mfg. Co., corn.(guar.)
•25c. Dec. 31
*1,,i Dec. 31
Preferred (quer.)
Land & Building Investing, pref
33-b Jan. 15 Holders of rec. Dec. 31
Lautaro Nitrate Co.. Ltd.-Dividend de ferred/
Lefcourt Realty, COM.(guar.)
40e. Feb. 16 Holders of rec. Feb. 5
Preference (quar.)
75c. Jan. 15 Holders of rec. Jan. 5
M.& T. Securities (gear.)
*25c Dec. 31 *Holders of rec. Dec./20
Major Corporation
"27c Dec. 31
Extra
• 8.885e Dec. 31
Marathon Razor Blade, Inc.(monthly). *314c Jan. 15 'Holders of rec. Jan. 1
Monthly
*3M c Feb. 15 *Holders of rec. Feb. 1
Monthly
•3M c Mar. 15 *Holders of rec. Mar. 1
Monthly
*3 Mc Apr. 15 'Holders of rec. Apr. 1
Monthly
*33-bo May 15 *Holders of rec. May 1
Monthly
*3340 June 15 *Holders of rec. June 1
Monthly
Il33-bc July 15 *Holders of rec. July 1
.334e Aug. 15 *Holders of rec. Aug. 1
Monthly
•33io Sept.15 *Holders of rec. Sept. 1
Monthly
Monthly
'
033-bo Oct. 15 *Holders of rec. Oct. 1
•3Mc Nov.15 "Holders of rec. Nov. 1
Monthly
•35‘c Dec. 15 *Holders of roe. Deal 1
Monthly
Masbeek Hardware, 1st pref. (guar.)... •114 Jan. 15 *Holders of rec. Dec. 31
Second preferred (quar.)
•134 Jan. 15 *Holders of rec. Dec. 31
McCord Manufacturing, pref. and pref. A-N action taken.
Mengel Co., corn -Dividend action def erred
*51.2 Jan. 15 *Holders of roe. Dec./31
Mercantile Guaranty Corp., common
Jan. 15 'Holders of rec. Dec. 31
*4
8% preferred
.3
Jan. 15 *Holders of rec. Dec. 31
6% preferred
Feb. 2 *Holders of rec. Jan. 21
•$1
Merchants Rettig., corn. (extra)
*I.M Feb. 2 "Holders of rec. Jan. 21
Preferred (quar.)
Jan. 2 *Holders of rec. Dec. 20
414
Metal & Thermit, corn. (extra)
Mickelberrys Food Products, corn. (qu.) .1254 Feb. 16 *Holders of rec. Feb. 2
Common (payable in com.stock)---- .1213 May 15 *Holders of rec. May 1
•1234 Aug. 15 "Holders of rec. Aug. 1
Common (payable in corn. stock)_
Common (payable in corn. stock)_ _ _ _ •1234 Nov.16 "Holders of rec. Nov. 2
(guar.).$1.75 Jan. 1 Holders of rec. Dec. 26
pref.
Milgrim (H.)St Bro.. $7
•25e. Jan. 1 'Holders of rec. Dec. 26
Minor, Inc.(gear.)
•25c. Jan. 1 *Holders of rec. Jan. 1
Mississippi Glass (guar.)
Mississippi Val. Mil. Investment Co.
*$1.50 Feb. 2 *Holders of rec. Jan. 15
$6 prior lien preferred (gar.)
*15c. Jan. 1 *Holders of rec. Dec. 31
Mobile National Co
'33-4 Jan. 1 'Holders of rec. Dec. 22
Mollohon Mfg.. preferred
[VOL. 132.
FINANCIAL CHRONICLE
82
Per
When
Cent. Payable
Name of Company.
Books Closed.
Days 'admire.
Miscellaneous (Concluded).
Jan. 15 *Holders of rec. Jan. 2
Moloney Electric Co., class A (quar.)_
*$1.
Jan. 1 Holders of rec. Dec. 22
Monarch Laundries, Inc., pref.(quar,)__
Morris Plan Co.(Savannah)
Dec. 31 *Holders of rec. Dec. 19
*$3
Municipal Telep.& lite., 7% pref. (qu.) *43310 Jan. 1 *Holders of rec. Dec. 25
Class A series K certificates (quar
*2131 Jan. 1 *Holders of rec. Dec. 25
Murray-Ohio Mfg., com.-Dividend om Med.
Nash (A.) Co., Inc. (quar.)
*234 Jan. 15 *Holders of rec. Jan. 9
National Acme, common (quar.)
•20e. Feb. 1 *Holders of rec. Jan. 12
National Cash Credit Ass'n., corn. (qu.)
*5c. Jan. 2 *Holders of rec. Dec. 11
Preferred (quar.)
010150. Jan. 2'Holders of rec. Dec. 11
Preferred (extra)
*5e. Jan. 2 *Holders of rec. Dec. 11
National Erie Co., class A-Dividend om Med.
National Sewing Machine (quar.)
0.75c. Jan. 2 *Holders of rec. Dec. 26
Jan. 2 Holders of rec. Dec. 26
National Shirt Shops,8% pref.(quar.)-. 2
National Short Term Secur., cl. A (qu.)_ "1234e Feb. 2 *Holders of rec. Jan. 10
Preferred (quar.)
*1.734e Feb. 2 *Holders of rec. Jan. 10
New Departure Mfg., pref.(quar.)
*131 Jan. 1 *Holders of rec. Dec. 20
New Jersey Zince (quar.)
*50c. Feb. 10 *Holders of rec. Jan. 20
New York Dock, preferred
*234 Jan. 15 *Holders of rec. Jan. 5
Niagara Falls Smelt. & Ref., el. A (qu.) *50e. Feb. 2 *Holders of rec. Jan. 15
Class B (quar.)
*25e. Feb. 2'Holders of rec. Jan. 15
*134 Jan. 1 *Ilolders of rec. Dec. 31
North American Securities
North Amer. Securities, corn.(in stock)_ '/1 34 Feb. 1 *Holders of rec. Dec. 31
Northwest Engineering (quar.)
.50e. Feb. 1 *Holders of rec. Jan. 15
Oahu Sugar Co., Ltd.(monthly)
*10e. Jan. 15 *Holders of rec. Jan. 16
Oakland Cotton Mills, pref
*334 Jan. 1 *Holders of rec. Dec. 22
Old Line Insurance Shares
*95e. Jan. 1
Oliver United Filters, class A (guar.).- _ *50c. Feb. 2 *Holders of rec. Jan. 20
Pacific Portland Cement, pref. (quar.).._ *131 Jan. 5 *Holders of rec. Dec. 31
Park Austin & Lipscombe. pref.(puma_ *50c. Jan. 15 *Holders of rec. Jan. 2
PechineyAmerican dep. rcts. bearer shs.16 fr.._
Jan. 10 *Holders of rec. Jan. 2
Penman's. Ltd., corn. (quar.)
Feb. 16 *Holders of rec. Feb. 5
*51
Preferred (quar.)
*1.34 Feb. 2 *Holders of rec. Jan. 21
Pennsylvania Rubber, 7% pref. (quar.) *131 Dee. 31
Penn Investing, preferred
*$2 Jan. 2 *Holders of rec. Dec. 24
Perfection Petroleum, pref.(quar.)
'3731f Jan. 1 *Holders of rec. Dec. 29
Phillips-Jones Corp., pref. (quar.)
"131 Feb. 2 *Holders of rec. Jan. 20
Pittsburgh Steel, com.-Dividendomftte d.
Preferred (quar.)
In Mar. 1 Holders of rec. Feb. 7
Pittsburgh United Corp., pref.(qu.)_ _ _ - *131 Feb. 1 "Holders of rec. Jan. 12
Port Huron Sulphite & Paper (quar.)-.- *15e. Feb. 1 *Holders of rec. Jan. 15
Power dr Rail Trustees Shares
al5c Jan. 15 *Holders of rec. Dec. 31
Prudential Investors,$6 pf.(qua (No.1) *$1.50 Jan. 15 *Holders of rec. Dec. 31
Prudential Securities, common
1731c. Jan. 2 *Holders of tee. Dec. 31
Preferred
*334 Jan. 2 *Holders of rec. Dec. 31
Public Service Trust Shame,class A
.25c. Jan. 1 *Holders of rec. Dec. 27
FYrene Manufacturing,corn.(quar.)____
20c. Feb. 2 Jan. 17 to Feb. 1
Reed (C. A.) Co., class A (quar.)
*50e. Feb. 1 *Holders of rec. Jan. 21
111 Class B
•1234c Feb. 1 *Holders of rec. Jan. 21
Republic Flow Meters, common (quar.)
.5e. Jan. 2 *Holders of rec. Dec. 22
Preferred (guar.)
*2
Jan. 2 *Holders of rec. Dec. 22
Resource Finance & Mtge., pref.(qU.).- *8734c Jan. 2 *Holders of rec. Dec.129
Robinson Consol.Cone (quar.)
3734e. Jan. 1 Holders of rec. Dec. 15
Royal Typewriter, common
"$1.50 Jan. 17 *Holders of rec. Jan. 10
Preferred
*$3.50 Jan. 17 *Holders of rec. Jan. 10
Royalties & Standardsbares Ltd.
104Preferred (monthly)
*734e. Jan. 1 *Holders of rec. Dec. 25
Russell Motor Car, corn. (fluar.)
Feb. 2 Holders of rec. Dec. 31
Preferred (quar.)
134 Feb. 2 Holders of rec. Dec. 31
St. Croix Paper,corn.(quar.)
*2
Jan. 15 *Holders of rec. Dec. 22
Preferred
*3
Jan. 2 "Holders of rec. Dec. 22
Salt Creek Producers Assn.(quar.)
*50e. Feb. 2 *Holders of rec. Jan. 15
San Caries Milling(monthly)
*20c. Jan. 15 *Holders of rec. Jan. 7
San Diego Ice dr Cold Storage A (qua
*4331e Jan. 1 *Holders of rec. Dec. 26
Schramm-Johnson Drugs corn. A (qu.)_ _ .2
Jan. 1 *Holders of rec. Dec. 27
Preferred (quar.)
•131 Jan. 1 *Holders of rec. Dec. 27
Seasoned Securities(quar.)
"$1.50 Dec. 31 *Holders of rec. Dec. 30
Security Co.(N.H.) 1st pref.-Dividend °mitt eel
Security Title Bldg.. $7 pref.(guar.)--- *21.75 Jan. 1 *Holders of rec. Dec. 26
Sioux City Stock Yards, pref. Mara_ _ _ "2
Jan. 1 *Holders of rec. Dec. 30
Solvay Amer.Investment,p1.(qu.)
'134 Feb. 15 *Holders of rec. Jan. 15
Southern Franklin Process(quar.)
*25e. Dec. 24 *Holders of rec. Dec. 20
Spree°, Inc., pref.-Dividend deferred.
Springfield Safe Dep. dr Trust (quar.).__ 411 Jan. 2 *Holders of rec. Dec. 20
Stand. Royalties Wanetta, pref.(mthlY.) *1
Jan. 15 *Holders of rec. Dec. 31
Stand. Royalties, Wetumka, pf.(mthly.) *1
Jan. 15 *Holders of rec. Dec. 31
Stand. Royalties, Wewoka. pt.(mthly.)_ *1
Jan. 15 *Holders of rec. Dec. 31
*1
Stand. Royalties. Wichita, p1.
Jan. 15 *Holders of rec. Dec. 31
*131 Jan. 1 *Holders of rec. Dec. 15
Bros. Stores. pref.(quar.)
(mthly).Serc
Sterling Motor Truck, pref.-Dividend o mitted
Stern Bros.. class A (quar.)
"El Jan. 2 *Holders of rec. Dec. 20
Sturtevant(B.F.) Co.,corn.& pf.(qu.). "131 Jan. 15 "Holders of rec. Dec. 27
Sunstrand Machine Tool-Dividend omi tted.
Superheater Co.(quar.)
6234c Jan. 15 Holders of rec. Jan. 5
Swann Chem. Corp., class A & B (quar.) *15e. Jan. 1 *Holders of rec. Dec. 20
Teck Hughes Gold Mines(quay.)
*15e. Feb. 1 *Holders of rec. Jan. 17
Tip Top Tailors, pref.(quar.)
1% Jan. 1 Holders of rec. Dec. 15
Title& Mtge. Guar.(Buff.)(quar.)
*30c. Dec. 31 "Holders of rec. Dec. 18
Traders Financial Corp.(Toronto)
Preferred (quar.)
*131 Jan. 2 *Holders of rec. Dec. 15
Trusteed Amer. Bank Shares (No. 1)._ _ *30c. Jan. 1 *Holders of coup. No. 1
Jan. 2 *Holders of rec. Dec. 22
Underwriters Finance, pref.(quar.)
*2
Union Bldg.Co.(Newark)-Dividend pa seed
United Dairies, Ltd., corn
*25e. Jan. 2 *Holders of rec. Dec. 20
First preferred
*331 Jan. 2 *Holders of rec. Dec. 20
Milted Fuel Invest.. pref. (quar.)
134 Jan. 2 Holders of rec. Dec. 15
United Linen Supply, el. B (quar.)
*$1.50 Jan. 20 *Holders of rec. Jan. 1
United Merchants dr Mfrs.. pref.stock-Divide nds omitted.
U.S.& Foreign Securities Corp.
First preferred (quar.)
411.50 Feb. 2 *Holders of rec. Jan. 12
U.S. Freight-Dividend omitted.
U.S. Radiator,corn -Dividend omitted
Preferred (quar.)
*134 Jan. 15 *Holders of rec. Jan. 2
Washburn Wire (quar.)
•75e. Dec. 31 *Holciers of rec. Dec. 20
Weiner (F.) & Co., corn.(quar.)
•8734c Jan. 2'Holders of rec. Dec. 31
"$1.75 Jan. 2 *Holders of rec. Dec. 31
Preferred A & B (quar.)
Werner (F.).5t Co., corn. (quar.)
*8734c Jan. 2 *Holders of rec. Dec. 31
*131 Jan. 2 *Holders of rec. Dec. 31
Preferred A & B (quar.)
*134 Jars. 2 *Holders of rec. Dec. 29
Whittenton Mfg., pref. (quar.)
Jan. 15 *Holders of rec. Jan. 10
*4
Wichita Union Stock Yards, pref
$3.50 Feb. 15 Holders of rec. Jan. 15
Wilson Line, Inc., preferred
'Sc, Dec. 31 *Holders of rec. Dec. 22
Wisconsin Bancshares(quar.)
*5e. Dec. 31 *Holders of rec. Dec. 22
Extra
WrIstley(A.B.) Co., pref.(quar.)
•131 Jan. 2 *Holders of rec. Dec. 20
131
.)_ --
131
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week, these being given in the preceding table.
Name of Company.
Railroads (Steam).
Alabama Great Southern, preferred
Preferred (extra)
Atoh. Topeka dr Santa Fe. pref
Atlantic Coast Line RR.. corn
Common (extra)
Augusta dr Savannah
Extra
Baltimore & Ohio,common (quar.)
Preferred (quar.)
Canada Southern
Carolina Clinchneld & Ohio, corn.(qu.).
Stamped (quar.)
Central of N.J.(extra)
Chle. Indianan. dr Louisville, corn
Preferred
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
$2
Feb. 13 Holders of ree. Jan. 9
$1.50 Feb. 13 Holders of rec. Jan. 9
2 Holders of rec. Dec. ala
Feb.
234
334 Jan. 10 Holders of rec. Dec. 12a
131 Jan. 10 Holders of rec. Dec. 120
*234 Jan. 5 *Holders of rec. Dec. 15
•25c. Jan. 5 *Holders of rec. Dec. 15
134 Mar. 2 Holders of ree. Jan. 176
Mar. 2 Holders of rm. Jan. 170
1
131 Feb. 2 Holders of rec. Dec. 26a
Jan. 10 Holders of rec. Dec. 316
1
134 Jan. 10 Holders of rec. Dec. 31a
Jan. 15 Holders of rec. Dec. 31a
2
331 Jan. 10 Holders of rec. Dec. 20
Jan. 10 Holders of rec. Dec. 260
2
Nears
of Company.
Per
When
Cent. Payable.
Books Clow.
Days Inclusive.
Railroads (Steam) (Concluded).
1
Jan. 7 Holders of rec. Dec. lia
Chicago Great Western. pref
Feb. 2 Holders of rec. Jan. 150
3
Cuba RR., preferred
•$1
Jan. 6 *Holders of rec. Dec. 15
Dayton & Michigan, pref. (quar.)
Delaware Lackawanna dr Western (qua). 31.50 Jan. 20 Holders of rec. Jan. 3.1
.2
Jan. 5 *Holders of rec. Dec. 20
Detroit Hillsdale & Southwestern
*4
Jan. 15 *Holders of rec. Jan. 8
Detroit RIVET Tunnel
234 Feb. 2 Holders of roe. Dee. 296
Great Northern, preferred
234 Feb. 16 Holders of rec. reb. 20
Hudson & Manhattan RR., pref
Joliet & Chicago
134 Jan. 5 Holders of rec. Dec. 246
131 Feb. 2 Holders of rec. Dec. 31a
Kansas City Southern Hy_ corn.(qu.)__
1
Jan. 15 Holders of rec. Dec. 31a
Preferred (quar.)
$1.13 an415 Dec 13 to Jan. 15
Little Schuykill Nay. RR.& Coal
Louisville & Nashville
334 Feb. 10 Holders of rec. Jan. 156
$12.50 Feb. 2 Holders of rec. Jan. 15a
Mahoning Coal RR.,corn.(guar.)
2
Feb. 2 Dec. 27 to Jan. 28
N.Y. Central RR.(quar.)
Feb. 19 Holders of rec. Jan. 310
Norfolk & Weetern,adj. pref.(quar.)--- 1
$2
Jan. 16 Holders of rec. Dec. 316
Northern Central
Northern Pacific (gear.)
134 Feb. 2 Holders of rec. Dec. 316
43.4 Jan. 10 Dec. 20 to Jan. 11
Northern Securities Co.(quar.)
Pere Marquette, pref. dr prl. pref. (qu.) I% Feb. 2 Holders of rec. Jan. 20
*234 Jan. 10 *Holders of rec. Dec. 3E0
Philadelphia Trenton (quar.)
Pittsburgh Cinci. Chicago & St. Louis__ *234 Jan. 20 *Holders of rec. Jan. 10
Pfttsb. Ft. Wayne & ChM Pref.(quar.) 134 Jan. 6 Holders of rec. Dee. 101
Pittsburgh & Lake Erie
•52.50 Feb. 2 *Holders of rec. Dec. 28
134 Jan. 81 Holders of rec. Jan. 15.1
Pittsburgh & West Va.. corn.
$1
Feb. 12 Holders of rec. Jan. 15a
Co., corn. (quar.)
(quar.)Reding
50e Jan. 8 Holders of rec. Dec. 186
Second pref.(quer.)
131 Feb. 2 Holders of rec. Jan. 20
St. Louis-San Francisco.6% pref.(qu.)_
May 12
6% preferred ((Var.)
134 May 1 Apr. 12 to
154 Aug. 1 Holders of rec. July la
6% preferred (quar.)
134 Nov. 2 Holders of rec. Oct.0 la
6% preferred (quar.)
2 Feb. 2 Holders of rec. Jan. 26
Southern Ky.common (quar.)
2 May I Holders of rec. Apr. la
Common (quar.)
1.65 Aug. 1 Holders of rec. July la
Common (quar.)
134 Jan. 15 Holders of rec. Dec. 26a
Preferred (guar.)
234 Jan, 16 Holders of rec. Dec.20
United .14..1. UR.& Canal Ces.
Public Utilities.
51.25 Feb. 2 Holders of rec. Jan. 15
Alabama Power,$5 pref.(quar.)
American Cities Power & LightFeb. 1 *Holders of rec. Jan. 5
75e.
cash)
stk.
or
el.
It
(1-32
sh.
Class A
Feb. 1 *Holders of rec. Jan. 5
B stock)
Clam B (231% In
Am.Commonwealths Pow.,el. A&B(qu) (1) Jan. 26 Holders of rec. Dec. 31
$1.75 Feb. 2 Holders of rec. Jan. 15
First preferred series A (quar.)
51.62 Feb. 2 Holders of rec. Jan. 15
$6.50 first pref.(guar.)
$1.50 Feb. 2 Holders of rec. Jan. 15
$6 first preferred (quar.)
31.75 Feb. 2 Holders of rec. Jan. 15
Second preferred series A (gear.)
Jan. 15 Holders of rec. Dec. 150
51.
Amer.Dist. Teleg.of N.J., corn.(0111.)
134 Jan. 15 Holders of rec. Dec. 15a
7% preferred (quar.)
$1.50 Feb. 2 Holders of ref. Jan. 10
Amer. Gas & Elec., pref. (quar.)
Amer. Telephone & Telegraph (gear.).. 231 Jan. 15 Holders of rec. Dec. 20.1
Amer. Water Works & El.. corn.(qua- 75e, Feb. 2 Holders of rec. Jan. ila
Associated Gas & Elec. el. A (guar.)--- cc50e. Feb. 2 Holders of rec. Dec. 30
.f2 Jan. 15 Holders of ref. Dec. 31
Assoc. Telep. UM., corn.(quar.)
$1.50 Jan. 2 Holders of rec. Dec. 15
$6 cony. pref. sec. A (quar.)
2
Jan. 15 Holders of rec. Dec. 23
Bell Telep. of Canada (quar.)
Bell Telep. of Pa..6 % Pref.(qear.)--- 164 Jan. 15 Holden of reo. Dee. 20
•400. Jan. 15 *Holders of reo. Dec. 31a
Bridgeport Hydraulic(quar.)
Mc Jan. 15 Holders of rec. Dee. 31
British Columbia Power, class A (quar.).
Brooklyn Borough Gas, corn.(quar.)--- $1.50 Jan. 10 Holders of roe. Des. 31a
Jan. 15 Holders of rec. Dec. 31a
Bklyn.-Manhattan Tran., corn. (quar.).. 51
$1.50 Jan. 15 Holden; of rec. Dec. 316
Preferred, series A (quar.)
$1.50 Apr. 15 Holders of rec. Apr. la
Preferred,series A (quar.)
Buff. Niagara & East Pw.•$1.25 Feb. 2 *Holders of rec. Jan. 15
$5 first preferred (quar.)
154 Jan. 15 Holders of rec. Dec. 31
Calif.-Oregon Power Co.,7% p1.(qu.)
Preferred
13.4 Jan. 15 Holders of rec. Dec. 31
quar.)
0%
15e Jan. 26 Holders of rec. Dec. 31
Canada Northern Pow. Corp., corn.(qu.)
7% preferred (quar.)
134 Jan. 15 Holders of rec. Dec. 31
Light.
Natural
Gas,
Western
Canadian
•25e Mar. 2 *Holders of rec. Feb. 14
Heat & Power, preferred (extra)
*25e. June 1 *Holders of rec. May 15
Preferred (extra)
Central Hudson Cask Elec.. corn.(qu.). *20e. Feb. 1 *Ilorners of rec. Dee. 31
Central Ills. Pub. Serv.. pref.(quar.)._ .$1.50 Jan. 15 *Holders of roe. Deo. 31
Jan. 15 *Holders of reo. Dec. 31
Central & S. W.Mil., cora, tin stock),...1.6
CM. Newport & Coy. L.&Tr.,com.(qui .$1.50 Jan. 15 *Holders of rec. Dec. 31
$1.125 Jan. 15 *Holders of rec. Dec. 31
Preferred Mar.)
Cities Seri/. Pow.& Lt.$7 PI.(rethlY.)-- 58 1-3c Jan. 15 Holders of rec. Dec. 310
50e. Jan. 15 Holders of rec. Dec. 310
$15 preferred (monthly)
41 2-3e Jan. 15 Holders of rec. Dec. 31a
$5 preferred (monthly)
58 1-3c Feb. 18 Holders of rec. Jan. 31
$7 pre.errei (monthly)
50c. Feb.d16 Holders of rec. Jan. 31
$e preferred (monthly)
412-he Feb. 16 Holders of rec. Jan. 31
$5 preferred (monthly)
134 Mar, 1 Holders of rec. Feb. 16
Cleveland Elec.Iii., Pref.(quar.)
Mar. 16 Holders of rec Feb. 60
$1
Consolidated Gas of N. Y., corn.(qu.)
$1.25 Feb. '2 Holders of rec. Dec. 27a
Preferred (quar.)
Jan. 15 *Holders of ree. Dee. 31
Consolidated Traction of New Jersey... *2
ConsumersPower Co.. $5 pref•(guar.)-- $1.25 Apr. 1 Holders of rec. Mar. 14
131 Apr. 1 Holders of rec. Mar. 14
6% preferred (quar.)..
1.6.5 Apr. 1 Holders of rec. Mar.14
6.6% preferred (quar.)
134 Apr. 1 Holders of rec. Mar. 14
7% preferred (quar.)
500. Feb. 2 Holders of ree. Jan. 15
6% preferred (monthly)
500. Mar. 2 Holders of rec. Feb. 14
6% preferred (monthly)
Mc. Apr
1 Holders of rec. Mar. 14
fr% preferred (monthly)
55e. Feb. 2 Holders of rec. Jan. 15
6.6% preferred (monthly)
55e. Mar. 2 Holders of rec. Feb. 14
6.6% preferred (monthly)
65e. Apr. 1 Holders of rec. Mar. 14
6.6% preferred (monthly)
2
Jan. 15 Holders of rec. Deo. 200
Detroit Edison Co.(gear.)
Diamond State Telep.. 634% Pi.(qu.).- .154 Jan. 16 *Holders of rec. Dee, 20
13/, Jan. 15 Holders of reo. Dec. 31a
Durnitune Light,5% first pref.(quar.)
Edison Elec. ilium. (Boston) (quar.).- - $3.40 Feb. 2 Holders of rec. Jan. 10
Electric Bond & Share Co., CAM.(quar.) 1134 Jan. 15 Holders of rec. Dec. 5
$1.50 Feb. 2 Holders of rec. Jan. 8
$6 preferred (guar.)
$1.25 Feb. 2 Holders of rec. Jan, 8
$5 preferred (quar.)
$1.75 Jan. 15 Holders of rec. Jan, 20
El Paso Elec. Co., pref. A (quar.)
$1.50 Jan. 16 Holders of rec. Jan. 2.1
Preferred B (quar.)
500. Feb. 1 Holders of rec. Jan. 15a
Empire District El. Co.. pref.(mthly.)Empire Gas & Fuel Co., 8,0 pf.(retaly). 66 2-3e Feb. 1 Holders of rec. Jan. 15a
68 1-30 Feb. 1 Holders of rec. Jan. 15a
7% preferred (monthly)
541-Of Feb. 1 Holders of rec. Jan. 15a
% preferred( monthly)
6% preferred (monthly)
500. Feb. 1 Holders of rec. Jan. 15a
75c, Jan. 15 Holders of rec. Dee. 31
English Elec. Co.. class A (quar.)
Fairmount Park Isransp.(Phila.),pf.(qu) •1734 Jan. 11 *Holders of rec. Dec. 31
Federal Public Service, pref.(quer.)_
*134 Jan. 15 *Holders of rec. Dec. 31
Gas & Elec.Securities, corn.(monthly)., 500. Feb. 2 Holders of rec. Jan. 15a
Common (payable in corn.stock)
f 54 Feb. 2 Holders of rec. Jan. 15a
Preferred (monthly)
58 1-30 Feb. 2 Holders of rec. Jan. 150
Gas Securities Co.. corn,(in stock)
f50c. Feb. 2 Holders of rec. Jan. 150
Preferred (monthly)
50o. Feb. 2 Holders of rec. Jan. 15a
Germantown Pass. fly.(Phil.)(qu.)._*$ 1.3134 Jan. 6 'Holders of rec. Dee. 16
Havana Elec.& UtilIties, 181 pref.(qu,)_
134 Feb. 16 Holders of rec. Jan. 17
Cumulative preference (quar.)
21.25 Feb. 16 holders of rec. Jan. 17
Inter.Ilydro-Elec.System, el. A (qu.)
(n) Jan. 15 Holders of reo. Dec. 26a
$3.50 preferred (quar.)
8734c Jan. 15 Holders of rec. Dec. 26a
Internat. Toler). & Teleg.(guar.)
50e. Jan. 11 holders of rec. Doc. 100
International Utilities Corp.. $7 Dr. ORO $1.75 Feb. 2 Holders of rec. Jan. 16a
Class A(quer.)
8734e. Jan, 15 Holders of rec. Dec. 300
Interstate Public Service. pr.lien (qu.)_ _
134 Jan. 15 Holders of rec. Dec. 31
Kentucky Securities. pref. (quar.)
51.50.150. 15 Holders of reo. Dec. 20
Kentucky Utilities, pref. (quar.)
.500. Jan. 15 'Holders of rec. Dee. 26
Keystone Telep. of Phila., pref.(quar.).
75c. Feb. 1 Holders of rec. Jan. 23
Ian. 10 *Holders of rec. Dec. 31
Lincoln Tel. & Tel., corn. (guar.)
*2
Preferred (quay.)
*11,4 Jan, 10 sfloklas of rec. Dec. 31
.
93
31
of o
refcr
.er
ce
.bD
.2
eci
or
denr
Lincoln Telep. Sec., pref. (quar.)
•1 yr Jan. 10 To
Lone Star Gas Corp.. corn. (in corn.stk.) (V)
Louisville Gas & Elec.(KY.)7% pf.(qu.) •134 Jan. 15 *Holders of rec. Dec. 31
6% preferred (quar,)
*114 Jan. 15 'holders of rec. Dec. 31
5% preferred (guar.)
•131 Jan, 15 *Holders of rec. Dec. 31
Mass. Utilities Associates, pref.(qua . 0234c Jan. 15 Holders of rec. Dee. 30.1
Feb. 16 Holders of rec. Jan. 15
Middle West Utilities, corn. (quar.)
f2
Feb. 15 *Holders of roe. Jan. 15
Pref.
.($1.50 or 3-80ths sh. corn. stock)
Jew. 3 1931.]
Name of Corn pane.
FINANCIAL CHRONICLE
When
Per
Cent. Payable.
Books Closed.
Days Inchalve.
Same of Company.
83
per
Win
Cost. Payable.
B034I 004,66,
Days Inausies.
Public Utilities (Concluded).
Miscellaneous (Continued).
750. Jan. 15 Holders of roe. Jan. 90
Milwaukee Elec.Ry.& LI.. pf.((War.)-- 1)4 Jan. 31 Holders of rec. Jan. 204 Amer.Steel Foundries, cam.(quar.)---Mohawk & Hudson Power, 1st pref.(qu) 51.75 Feb. 2 Holders of roe. Jan. 15
624c Feb. 16 Holders of reo. Jan. 100
Anaconda Copper Mining (guar.)
25c Feb. 9 Holders of rec. Jan. 100
Monongahela Valley Water, pref. (au.) •114 Jan. 15 *Holders of reo. Jan. 1
Anaconda Wire & Cable (quar.)
280. Feb. 9 Holders of reo. Jan. 100
Montreal Lt.,Ht.&Pow.CODS.(guar.). 380. Jan. 31 Holders of ree. Deo. 31
Andes Copper Mining lgua"
Montreal Telegraph (Sitar.)
Jan. 15 Holders of rec. Dec. 31
Anglo-National Corp., clam A (guar.).- 50c. Jan. 15 Holders of me. Jan. $
2
Montreal Tramways, common (quar.)
Associated Dry Goods, corn. (guar.).- 63e. Feb. 2 Holders of rec. Jan. 10
234 Jan. 15 Holders of rec. Jan. 7
114 Mar. 2 Holders of rec. Feb. 7
Mountain State Power, pref.(quar.)
134( Jan. 20 Holders of reo. Dec. 81
First preferred (qua?.)
14i Mar. 2 Holders of rec. Feb. 7
Mountain States Tel.& Tel.(quar.)__ -- *2
Second preferred (quar.)
Jan. 15 *Holders of rec. Dee. 31
"500. Jan. 15 'Holders of roe. Doe. 31
National Elec, Power Co.. com. A (qu.) 45e. Feb. 1 Holders of rec. Jan. 150 Atlas Plywood (guar.)
)i Mar. 2 Holders of rec. Feb. 16.
National Fuel Gas (quar.)
Atlas Stores,corn.(pay.In corn,stock)
25e. Jan. 1 Holders of reo. Dec. 31
National Power & Light. ta Pref.(guar.) $1.50 Feb.
75c. Feb. 1 Holders of rec. Jan. 156
Austin. Nichols & Co., prior A (guar.)
Holders of rec. Jan. 17
Nevada-Calif. Elec., pref.(guar.)
O8740 Jan. 15 *Holders of rec. Dec. 31
Automobile Finance Corp.. prof
144 Feb. 2 Holders of tee. Dec. 30
sloe, Jan. 20 *Holders of me. Dec. 31
Newark Telephone, pref.(quar.)
Bandini Petroleum (monthly)
*134 Jan. 10 *Holders of rec. Dec. 15
New England Pub. Berv. $7 pref.(WO - $1.75 Jan. 15 Holders of roe. Dec. 31
Bankers Secur. Corp.(Plana). corn.(qu.) 75e. Jan. 15 Holders of rec. Dec 315
750, Jan. 15 Holders of rec. Dee. 354
$6 preferred (quar.)
Participating preferred (quiz.)
51.50 Jan. 15 Holders of rec. Dec. 31
*74c Jan. 10 *Holders of rec. Doe. 31
Adjustment preferred (quar.)
BansicIlla Corp., cl. A & B ((mar.)
$1.75 Jan. 15 Holders of roe. Dec. 31
56 cony. preferred (altar.)
*75c. Mar. 2 *Holders of rec. Feb. 14
Bastian Blessing Co.(quar.)
51.60 Jan. 16 Holders of rec. Dec. 31
New England Power Assn.. corn.(qu.).
750 Jan. 15 Holders of reo. Doe. 310
50e. Jan. 15 Holders of rec. Deo. 31a Bayuk Cigars, Inc., corn. (quar.)
New York Telephone Co.,614% pf.(qu.) 14 Jan. 15 Hold= of rec. Dec. 20
14 Jan. 15 Holders of rep. Doe. 31s
First preferred (guar.)
North American Edison. pref.(quar.)154 Feb. 2 Holden of rec. Jan. 15
$1.50 Mar. 2 Holders of rec. Feb. 160 Belding Corticeill, lAd., corn.(quer.).
North Amer. Light & Pow.,corn.(qu.)
f2
Feb4113 Holders of rec. dJan.200 Het blehem Steel. corn (quay )_. .... cm Feb. 16 Holders of rec. Jan. 191
Northern Indiana Public ServiceApr. 1 Holders of rec. Mar.20
Bliss (E. W.), com.(PaY. 00m.stock)- 12
7% preferred (quar.)
July 1 Holders of reo. June 20
Comm on(payable In common stock). fy
1M Jan. 14 Holders of rec. Dec. 31
6% preferred (guar.)
Oct. 1 Holders of reo. Sept. 20
Common(payable in common stock)._ f2
1% Jan. 14 Holders of rec. Dec. 31
154 Feb. 1 Holders of rec. Jan. 204
534% preferred (quar.)
Bloomingdale Bros., Inc. pref.(quar.)
144 Jan. 14 Holders of rec. Dec. 31
Northern New York Telephone(guar.)
2)4 Jan. 15 *Holders of rec. Dec. 31
Boots Pure Drug Co.. Ltd.
Northern N. Y. Utilities, Inc.. pref.(CM) 154 Feb. 1 Holders of reo. Jan. 10
Jan. 7 *Holders of reo. Dec. 18
American deposit receipts ordinary she sloe
Northern Ontario Power. corn. (quar.). 500. Jan. 26 Holders of roe. Dee. 31
Jan. 15 Holders of rec. Des. 80a
e3
Borden Company (stock dividend)
Preferred (quar.)
Brandram Henderson, Ltd.. corn,(qu.)_ *60c Feb. 2 *Holders of rec. Jan. 2
14 Jan. 26 Holders of tee. Dec. 31
Northern States Pow.(Del.).corn.A(qu)
50c. Jan. 15 Holders of rec. Dec. 20
Feb. 2 Holders of reo. Dec. 31
Brantford Cordage, 1st Pref.(quar.)
7% Preferred (quar.)
134 Jan. 20 Holders of reo. Dec. 31
Briggs Manufacturing (quar.)
371.4c Jan. 26 Holders of rec. Jan. 104
6% Preferred (guar.)
Extra
14 Jan. 20 Holders of rec. Dec. 31
123.4 Jan. 28 Holders of roe. Jan. 100
Northwestern Bell Telep., Prof.(qua?.).
(y) Jan. 19 See note(A).
British-American Tobacco,ordinary
14 Jan. 15 Holders of rec. Dec. 20
01110 Pub. Serv.7% prof.(monthly)._ 58 1-30 Feb. 2 Holders of rec. Jan. 150
(A Jan. 19 See note (T).
Ordin ary (interim)
6% preferred (monthly)
'
825.40 AK. 1 *Holders of roe. Ma?.15
500. Feb. 2 Holders of reo. Jan. 150 British Ar Foreign invest_ pref.(Sitar.)....
5% Preferred (monthly)
412-3 Feb. 2 Holders of reo. Jan. 15a British Type Investors, el. A (bl-mthly)
90 Feb. 2 Holder's of rec. Jan. 2
Pacific Gas& Elec.,corn.(quar.)
50e. Jan. 15 Holders of rec. Dee. 31a Broadway Dept. Stores. 1st pf.(guar.). 144 Feb. I Holders of rec. Jan. 17
Pacific Lighting Corp.$6 pref. (guar.).- 51.50 Jan. 15 Holders of rec. Dec. 31
50e Jan. 15 Holder's of res. Dec. 31
Brompton Pulp & Paper (qua?.)
Pacific Telep.& Teleg., prof.(quer.). -- 114 Jan. 15 Holders of rec. Dee. 31a Builders Exchange Bldg.(Baltimore)... *3
Jan. 7 *Holders of rec. Dec. 24
Philadelphia & Camden Ferry (quar.)
*7
Jan. 7 *Holders of rec. Dec. 24
Extra
*75c. Jan. 10 *Holders of rec. Dec. 19
Philadelphia Company, corn. (guar.).
Bullocks, Inc., 7% prof. (guar.)
200. Jan. 31 Holders of rec. Doc. 31
*144 Feb. 2 *Holders of rec. Jan. 11
Common (extra)
Bunker Hill & Sullivan Mining350. Jan. 31 Holders of rec. Dee. 31
Common old $50 par (guar.)
Ar Concentrating, corn.(monthly)
.
2513 Jan. 5 *Holders of rec. Dee. 24
Jan. 31 Holders of rec. Dee. 316
1
Common old $50 par (extra)
Jan. 6 *Holders of rec. Dee. 31
Preferred (qua?.)
*32
1M Jan. 31 Holders of rec. Dec. 31a
Philadelphia Electric Co., $5 pref. (qu.) $1.25 Feb. 2 Holders of rec. Jan. 10
441 Apr. 1
Burger Arm.,8% pref. (quar.)
Phila. Rapid Transit,cam.(quar.)
8% preferred (guar.)
al
Jan. 31 Holders of roe. Jan. 15a
*51 July 1
Piedmont & Northern Ry.(quar.)
8% preferred (quar.)
5134 Jan. 10 *Holders of rec. Dec. 31
*$1 Oct. 1
Power Corp.of Canada,corn.(quar.)
Burma Corp., Amer. dep receipts
50c. Feb. 20 Holders of rec. Jan. 31
Preferred (quiz.)
Div.of 2 minas plus bonus of 1 anna
Feb. 20 Holders of roe. Jan. 14
134 Jan. 15 Holders of reo. Dec. 31
Bush Terminal Co.,corn.(guar.)
Participating Preferred (quiz,)
754) Jan. 15 Holders of roe. Dec. 31
62)40 Feb. 2 Holders of rm. Jan. 26
Pub.Serv.of Col.7% Prof.(mthly.)
7% debenture stock (guar.)
144 Jan. 1 Holders of rm. Jan. 20
58 1-3e Feb. 1 Holders of rec. Jan. 150
6% Preferred (monthly)
50e Feb. 1 Holders of roe. Jan. 15a Byers (A. M.) Co.. pref.(guar.)
134 Feb. 2 Holders of rec. Jan. 19a
5% Preferred (monthly)
41 2-3o Feb. 1 Holders of rec. Jan. 15a Calaveras Cement Co.. pref.(quar.)__.- •134 Jan. 16 *Holders of rec. Deo. 31
Pub.Serv. Corp. of N .4..6% pt.(mthly) 500 Jan. 81 Holders of reo. Jan. 26 Campe Corp..63.6% preferred (quar.)
•14 Feb. 2 *Holders of rec. Jan. 15
Puget Sound Power & Light, pref.(qu.) $1.50 Jan. 15 Holders of rec. Dec. 19a Canada Bud Breweries. Ltd., corn.(qu.) .280, Jan. 15 "Holders of rec. Dec. 31
Prior preferred (qua?.)
75c. Jan. 1 Holders of reo. Jan. 2a
$1.25 Jan. 15 Holders of roe. Dee. 190 Canada Dry Ginger Ale(guar.)
Quebec Poser (guar.)
Canadian Bronze, Ltd..corn.(quar.)
62 tv c. Feb. 1 Holders of rec. Jan. 20
62(4e Jan. 15 Holders of rec. Dec. 23
Rhode Island Pub. Sen.., CIA (quar.)-- *51
134 Feb. 1 Holders of rec. Jan. 20
Preferred (quar.)
Feb. 2 *Holders of reo. Jan. 15
Canadian Car & Foundry, pref. (Spar.). .
Preferred (guar.)
44e. Jan. 10 'Holders of rec. Dec. 26
*50c Feb. 2 *Holders of rec. Jan. 15
Sedalia Water pref. (guar.)
Canadian Cottons. Ltd., pref.(quar.)
14 Jan. 5 Holders of rec. Dee. 20
el ie Jan. 15 *Holders of rec. Jan. 1
Shawinigan Water & Power(.311.)
Canadian Fairbanks Mons Co.,pf.(qu.) 154 Jan. 15 Holders of rec. Dec. 81
6240 Jan. 10 Holders of rec. Dec. 18
Southern Calif Edison,cam.(quar.)
Canadian Foundries & Forg.. M.A (quar) 3730. Jan. 15 Holder's of rec. Dec. 31
500 Feb. 15 Holders of res. Jan. 20
Orig. pref. (qua?,)
Canadian Industries,corn.(guar.)
'6230 Jan. 31 *Holders of rec. Dec. 31
50c Jan. 16 Holders of rec. Dee. 20
Preferred series C (quiz.)
Common (extra)
*51.25 Jan. 31 *Holders of rec. Dec. 31
3446o Jan. 15 Holders of roe. Dec. 20
Southern Canada Power Co., corn. (qu.) 250. Feb. 16 Holders of rec. Jan. 31
Preferred (quar.)
*14 Jan. 15 'Holders of rec. Dec. 31
Preferred (guar.)
Canadian Pow.& Paper Invest.. of.rm.) 6290, Feb. 16 Holders of rec. Jan. 20
1
Jan. 15 Holders of reo. Dec. 20
Southern Counties Gas,6% prof.(qu.).. •1
Carman & Co., Inc.. class A (quar.)
*50c. Feb. 28 *Holders of rec. Feb. 13
Jan. 15 *Holders of rec. Dec. 31
Class B (Soar.)
SouthPittsburgh Water,6% pref.(qu.) 134 Jan. 15 Holders of reo. Jan. 2
*25e. Jan. 26 'Holders of rec. Jan. 15
Chain Belt Co. (quiz.)
7% Preferred lquar.)
*6234c Feb. 15 *Holders of rm. Feb. 1
144 Jan. 15 Holders of rec. Jan 2
Standard Gas & Elec.. corn.(quar.)
'
8734e Jan. 24 Holders of rec. Doe. 31a Chapman Ice Cream (quar.)
31340 Jan. 15 *Holders of rec. Dee. 24
$7 Preferred (quar.)
15o. Feb. 2 Holders of rec. Jan. 200
51.75 Jan. 24 Holders of rec. Dec. 31a Checker Cab Mfg.(monthly)
$6 Preferred (quar.)
Monthly
180. Mar. 2 Holders of rec. Feb. 20.
$1.50 Jan. 24 Holders of ree. Deo. 310
Stand.Pow.& Light.corn.& cam.B(qu) 50o Mar. 2 Holders of rec. Feb. 11
Cherry-Burrell Corp.,corn.(guar.)
*624c Feb. 1 'Holders of rec. Jan. 15
Preferred (quar.)
*14 Feb. 1 'Holders of rec. Jan. 15
Preferred (quar.)
51.75 Feb. 2 Holders of rec. Jan. 16
Twin City Rapid Transit. Minneapolis-.
Chicago Yellow Cab (monthly)
25e. Feb. 2 Holders of rect. Jan. 204
Common (pay. In notes & scrip)
25o. Mar. 2 Holders of rec. Feb. 20
Monthly
Jan. 15 Holders of reo. Dec. 31a
2
United Gas & Elec. Co.. 5% Prof
Churchill House Corp.(annual)
*50c. Jan. 6 *Holders of rec. Dec. 15
24 Jan. 15 Holders of rec. Dec. 31
United Lt.& Pow., new corn. A &B(qu.) 25e Feb. 2 Holders of roe. Jan. 150 Cincinnati Advertising Prod.(extra).... *500. Feb. 1 *Holders of ree. Jan. 20
Old common A & B(guar.)
2Sic). Feb. 2 Holders of rec. Jan. 154
$1.25 Feb. 2 Holders of rec. Jan. 154 Cities Service common (monthly)_ _
asa
United Tel.(Kansas)corn.(qua?.)
Common (payable In common stook)
134 Feb. 2 Holders of ere. Jan. 15s
Jan. 15 *Holders of rec. Dec. 31
Preferred (guar.)
Preference B (monthly)
Sc. Feb. 2 Holders of reo. Jan. 15.
Jan. 15 *Holders of rec. Dec. 31
Western Power Corp.,7% cum. pf.(qu.)
Preference and Prof. BB (monthly)... 500. Feb. 2 Holders of roe. Jan. 15.
Jan. 9 Holders of reo. Dec. 31
Western Union Telegraph (quar.).
Jan. 15 Holders of rec. Dec. 230 City Investing Co.
West Penn Power Co.. 7% pref.(qu.)
Common (payable in common stook) r431-3 Feb. 2 Holders of roe. Jan. 2.
Feb. 2 Holders of rec. Jan. 50
6% preferred (guar.)
Feb. 2 Holders of rec. Jan. 56 Cleveland Securities. prior lien stock
*200. Jan. 10 *Holders of rec. Dee. 31
Wisconsin Gas & Elea.,7% pf. A (qu.)
Jan. 15 *Holders of rec. Dee. 31
Cleveland Tractor (qua?.)
*20c. Jan. 16 *Holders of rec. De0. 81
634% preferred B (quar.)
Coate(J. P.),Ltd.Jan. 15 *Holders of rec. Dee. 31
Am,dep,rots ord. reg.9 pence per lb.
Jan. 7'Holders of reo. Nova 21
Banks-Coca Cola Bottling (quarterly)
25o. Jan. 15 Holders of rec. Jan.
14 Jan. 5 Holders of reo. Dec. 24
Trade(quarJ
Quarterly
25e. Apr. 15 Holders of reo. AM.
West New Brighton (Staten Island)
Jan. 10 *Holders of reo. Dec. 31
Quarterly
250. July 15 Holders of rec. July $
Woodside National
3
Jan. 5 Holders of roe. Doe. 31
Quarterly
250 Oct. 15 Holders of reo. 013.1115
Commercial Bookbinding (guar.)
4354e Jan. 15 Holders of rec. Deo. 81
Trust Companies.
CommanIty Bt.Corp..clam B (quar.)'
1234c Mar. 31 *Holders of rec. Mar.2$
Bank of Sicily Trust Co.(War.)
150 Jan. 10 Holders of reo. Dec.. 316
Clams Ii ((mar.)
•1234c Dec. 31 *Holders of rec. Dee. 26
Consolidated Car Heat, corn. (qua?.).. *14 Jan. 15 *Holders of rec. Dec. 31
Fire Insurance.
Consolidated Cigar Coro coin. (guar.) $1.25 Jan. 7 Holders of rec. Dec. 154
Continental
$1.20 Jan. 10 Holders of rec. Dee. 31a Consolidated Laundries. pref.(guar.)
*114 Feb. 1 *Holders of rec. Jan. 15
Fidelity-Phenix
$1.30 Jan. 10 Holders of rec. Doe. 31a Causal. Mining & Smelt. Co.of Canada. $1.25 Jan. 15 Holders of rec. Dec. 35
Bonus
Jan. 15 Holders of roe. Dec. 35
$5
Miscellaneous.
Consol. Retail Stores, pref.(quiz.)
Jan. 3 *Holders of roe. Dee. 22
"2
Abitibi Power & Paper.6% pf.(guar.). 14 Jan. 20 Holder, of roe. Jan. 10a Consolidated
"74c Jan. 25 *Holders of rec. Jan. 15
Royalty Oil(quiz.)
Abraham dr Straus, Inc., Prof. (qtlar.)
144 Jan. 31 Holders of rec. Jan. 15a Corn Products Ilefg., corn.(qua?.)
75c. Jan. 20 Holders of rec. Jan. Sa
Addressograph Int. Corp.(quar.)
350 Jan. 10 Holders of roe. Jan. So
Common (extra)
50c. Jan. 20 Holders of rec. Jan. 54
Air Reduction Co.(quar.)
780 Jan, 15 Holders or roe. Doe. 81a
Preferred (quar.)
Jan. 15 Holders of rec. Jan. 54
13.4
Alaska Juneau Gold Min.(qu.)(No. 1)_
100 Feb. 2 Holders of ree. Jan. 10a Creamery Package Mfg.. corn.(guar.)._ *500. Jan. 10 *Holders of rec. Jan. 1
Allegheny Steel(monthly)
15o Jan. 17 Holders of roe. Dee. 81a
Preferred (guar.)
*14 Jan. 10 'Holders of rec. Jan. 1
Monthly.
15e Feb. 18 Holders of rec. Jan. 31a Credit Util. Banking. claw B(quar.)--- 374c Jan. 10 Holders of rec. Dee. 28
Alliance Realty (guar.)
780 Jan423 Holders of rec. Jan.
Cresson
Gold Min. & Mill (quar.) *lc. Jan. 10 *Holders of rec. Dec. 31
Allied Chemical& Dye,corn.(quar.)-..._ $1.50 Feb. 2 Holders of rec. Jan. 100 CrucibleCons.
Steel, common (quar.)
14 Jan. 31 Holders of reo. Jan. 154
151
Allied Kid Co., preferred (quar.)
144 Feb. 1 Holders of rec. Jan. 15
Crum & Forster, common (quar.)
24 Jan. 15 Holders of ref). Jan. 5
Alpha Portland Cement, corn. (qua?.)__
50e Jan. 24 Holders of rec. Doe. 31.0
Mar. 31 Holders of rec. Mar.21
Preferred (Uttar.)
2
American aggregates, pref. (quar.)-_ "51.75 Feb. 2 *Holders
of rec. Doe. 2"
Cuba Company. preferred
*334 Feb. 2 *Holders of reo. Jan. 15
Amer. Art Works, Inc., prof
.
Jan. 15 Holders of rec. Dec. 31
114
Cudahy
(quar.)
Packing,
corn.
15 Holders of roe. Jan. da
Jan.
$1
Amer. Asphalt Roofing, corn.(guar.).
•134 Jan. 15 *Holders of rec. Dec. 31
Curtis Publishing. corn.(monthly)
50c. Feb. 42 Holders of roe. Jan. 20
Preferred (quar.)-.
*2
Jan. 15 'Holders of rec. Dec. 31
(quiz.)
Apr.
Preferred
1 Holders of rec. Mar. 2111
$1.75
Amer. Brake Shoe & Fdy., corn.(guar.) 600 Mar. 31 Holders of rec.
50c. Jan. 15 Holders of rec. Jan. 1
Mar.20a Davenport Hosiery Mills. corn.(quiz.)
Preferred (guar.)
134 Dec. 31 Holders of rec. Dee. 23a Deep Rock Oil Corp..$7 pref.(cm.)
$1.75 Jan. 24 Holders of roe. Dec. 31
Preferred (guar.)
134 Mar.31 Holders of rec. Mar.200 Deere& Co.,new corn (pay.In new oom ) 1134 Jan 15 Holders of rec. Dee. 15
American lank & Hoe. Prot (quar.)___ 14 Jan. 15 Holders of
Denver Union Stock Yards,corn.(qu.)-- t$1
Apr. 1 *Holders of rec. Mar.20
rec. Jan. 5
Amer.Home Products(monthly)
350 Feb. 2 Holders of roe. Jan. 144 Devonsh IreInvesting Corp.,corn.
50e. Jan. 15 Holders of rec. Jan. 2
Amer.Ice Co., corn.(guar.)
75c Jan. 26 Holders of reo. Jan. 9a Dictograph Products (guar.)
250. Jan. 15 Holders of rec. Jan. 1
Preferred (guar.)
51.50 Jan. 26 Holders of roe. Jan. 9a Dome Mines, Ltd.(quiz.)
250. Jan. 20 Holders of rec. Dec. 314
Amer. Manufacturing Co.. corn.(quar.) 1
Mar. 31 Holders of rec. Mar.15
Dominguez on Fields (monthly)
•15o. Jan. 3'Holders of rec. Dec. 24
Common (quar.)
1
July 1 Holders of rec. June 15
Dominion Engineering Works. Ltd.(qu.) 111
Jan. 15 *Holders of rce. Dec. 19
Common (guar.)
1
Oct. 1 Holders of rec. Sept.15
Dominion Tar & Chemical pref.(quar.)_ 134 Feb. 1 Holders of rec. Jan. 5
Common (quar.)
1
Dec. 31 Holders of rec. Dee. 15
Dominion Textile. Pref.((War.)
lat Jan. 15 Holders of rec. Doe. 31
Preferred (qua?.)
14 Mar. 31 Holders of rec. Mar. 15
Dupont(E. I.) de Nemours de Co.
Preferred (qua?.)
134 July 1 Holders of rec. June 15
Debenture stock (qua?.)
14 Jan, 24 Holders of roe. Jan. 10a
Preferred (guar.)
14 Oct. 1 Holders of rec. Sept. 15
Eastern Util. Investing, partic. pt. (qu.) 51.75 Feb. 2 Holders of reo. Dec. 30
Preferred (guar.)
1)4 Dec. 31 Holders of rce. Doe. 15
$1.50 Mar. 2 Holders of rec. Jan. 30
$6 preferred (guar.)
American News (bi-monthly)
50e. Jan. 15 Holders of rec. Jan. ba
$7 preferred (guar.)
$1.75 Mar. 2 Holders of rec. Jan. 80
Amer. Railway Trust Shares
*40o. Jan 15 _
$5 prior preferred (quar.)
$1.25 Apr. 1 Holders of rec. Feb. 27
Amer.Rediscount Corp.. hit Pref.(qu.). 141 Jan. 7 Nolders
Eaton Axle & Spring. corn.(quiz.)
o-f-.rec.Dec.d31
400. Feb. 1 Holders of rec. Jan. 154
Second preferred (quiz.)
1
Economy Grocery Stores (guar.)
Jan. 7 Holders of rec. Doe. 31
250. Jan. 15 Holders of rec. Jan. 2
Amer. Rolling MIll,, corn.(QUAL%)
50e. Jan, 15 Holders of rec. Dee. 150 Edison Bros.Stores(guar.)
1831c Jan. 20 Holders of rec. Dec. 31
6% preferred (guar.)
'134 Jan. 15 *Holders of reo. Dec. 31
Electric Household Utilities (guar.)._
50c. Jan. 20 Holders of rec. Jan. 5
Amer. Shipbuilding, corn.(quar.)
$1.25 Feb. 1 Holders of rec. Jan. 154 Ely & Walker Dry Goods, lot Prof.
*$334 Jan. 15 *Holders of roe. Jan. 3
Preferred (quar.)
•144 Feb. 1 Holders of reo. Jan. 15
Second preferred
*$3
Jan. 16 *Holders of ree. Jan. 3
American Type Founders, Corn.(quar.)_ 2
Jan, 15 Holders of roe. Jan. 54 Fashion Co..corn
*50c:
1
134 Jan, 15 Holders of rec. Jan. 50 Federated Publications, common (quiz) *30e. Feb.
Preferred (quar.)
Jan. 31 *Holders of rec. Jan. 15
[VoL. 132.
FINANCIAL CHRONICLE
84
Name of Company.
Per
Cent
When
Payable.
Books Cloaca.
Days Inclusive.
Miscellaneous (Coniffses4).
Jan. 15 *Holders of rec. Jan. 10
Fenton United Cleaners (quar.)
*51
Jan. 15 *Holders of ree. Jan. 10
Extra
*$1
Fibreboard Products, prior pref. (quer.). *14 Feb. 1 *Holders of rec. Jan. 16
Finance Co. of Am.,Balt.eom.A&B(gu.) 20e. Jan. 15 Holders of rec. Jan. ba
Preferred ((num)
43%e Jan. 15 Holders of rec. Jan. ba
Firestone Tire & Rubber,eom.(qua.... 25e. Jan. 20 Holders of rec. Jan. 5a
Preferred (guar.)
14 Mar. 2 Holders of reo. Feb. 13a
First Nat. Corp.. Portland, Ore., class
A and B (qua?,)
*50e. Jan. lb *Holders of rec. Dec. 24
nehmen(M.H.) Co.. pref. A.ac B.(On.) $1.75 Jan. 15 Holders of rec. Jan. 2
Foreign Power Scour. Corp.. Pref.(qua. 14 Feb. 16 Holders of rec. Jan. 31
Jan. 10 *Holders of rec. Dec. 31
Foulds Milling, pref. (quar.)
*2
25o. Feb. 14 Holders of rec. Jan. 31
Foundation Co.of Canada corn.,(guar.)
Fox Film Corp., class A & B (quar.).$1
Jan. 15 Holders of rec. Dec. 310
Feb. 1 Holders of rec. Jan. 15a
Freeport Texas Co.(quar.)
$1
Furness. Withy & Co.,Ltd.•w5 Jan. 7 *Holders of rec. Dec. 9
Amer.dep.receipts
Fyr-Fyter Co.. Maas A (quar.)
*50e. Jan. 15 *Holders of rec. Dec. 31
•1% .ran. 31 %foldera of rec. Jan 20
Gardner Denver Co., pref. (quar.)
*I q Feb. 1 *Holders of ree. Jan. 20
Preferred (quar.)__ _
General Electric (Otter.)
400. Jan. 24 Holders of reo. Dec. 190
15e. Jan. 24 Holders of rec. Doe. 190
Special stock (quar.)
General Motors, $5 pref.(quar.)
51.25 Feb. 2 Holders of rec. Jan. 50
General Pub.Service,$5.50 pref.(quar.) $1.376 Feb. 2 Holders of re*. Jan. 9
$6 preferred (guar.)
81.50 Feb. 2 Holders of rec. Jan 9
General Realty az Utilities. prof. (guar.) (v) Jan. 15 Holders of rec. Dec. 200
50e. Feb. 2 Holders of rec. Jan. 15
General Stockyards Corp.,con).(quar.)Common (extra)
25e. Feb. 2 Holders of rec. Jan. 15
$8 preferred (quar.)
51.50 Feb. 2 Holders of rec. Jan. 15
*65e. Apr. 1 *Holders of rec. Mar. 20
Gibson Art Co.. common (qua?.)
Gilbert(A.C.) Co.,corn.(quar.)
•25e. Feb. 16 *Holders of rec. Feb. b
Gillet e Safety Razor,$5 of.(qua (No.1) $1.25 Feb. 2 Holders of rec. Jan. 20
1% Feb. 1 Holders of rec. Jan. 150
Gimbel Bros., pref.(quar.)
"14 Jan. 15 *Holders of ree. Dec. 31
Globe-Wernicke Co.. pref. (guar.)
Gold Dust Corp., core.(guar.)
624c Feb. 2 Holders of rec. Jan. 10a
50e. Mar. 2 Holders of rec. Feb. 16
Gorham Mfg.. common (quar.)
11% Feb. 2 Holders of ree. Jan. 12a
Gotham Silk Hosiery, pref.(qu.)
Granby Congo'. Min.Smelt & Pow.(qua
50e. Feb. 2 Holders of ree. Jan. 16a
Great Lakes Engineering Works (qua __ +25e. Feb. 2'Holders of rec. Jan. 26
Jan. 6 *Holders of rec. Dec. 31
Great Northern Finance,8% el. A (qu.)_ '2
Gruen Watch, common (quar.)
*Mc. Mar. I *Holders of rec. Feb. 20
•13.4 Feb. I 'Holders of rec. Jan. 20
Preferred (quar.)
Guenther Publishing Corp
$25 Jan. 7 Holders of rec. Dee. 6
15e. Jan. 31 Holders of rec. Jan. 10a
Hamilton Watch. corn.(no par) (mthly.)
Common 525 par
*300. Jan. 31 "Holders of rec. Jan. 10
Special
15e. Jan. 31 Holders of rec. Dec. 20a
*$1
Jan. 15 *Holders of rec. Dec. 31
Hamilton Woolen
Harbison-Walker Refrac., pref (guar.)- 14 Jan. 20 Holders of rec. Jan. 100
Hibbard,Spencer, Bartlett & Co.(mthlY) 25e. Jan. 30 Holders of rec. Jan. 23
HIlIcrest Collieriee, Ltd.. prof.(guar.)-- 1% Jan. 15 Holders of rec. Dec. 31
Holly Development(guar.)
'2%r Jan. 15 *Holders of rec. Dec. 31
Home Service Co., let dr 2d pref.(quar.) +50e. Jan. 20 *Holders of rec. Jan. 1
*25e. Jan. 10'Holders of rec. Dec. 31
Honolulu Plantation (monthly)
Horn &Harden (N.Y.)corn.(guar.).- 'e62% Feb. 2'Holders of rec. Jan. 12
90e. Jan. 15 Holders of rec. Dec. 31a
Household Finance, corn. A az B.(qua_
Participating preferred (quar.)
51 Jan. 15 Holder'; of rec. Dec. 31a
51
Jan. 15 Holders of rec. Dec. 31a
Howe Sound Co.(guar.)
.3(10. Jan. 15 'Holders of rec. Jan. 3
Minors Brick (qua.)
•30e. Apr. 15 'Holders of rec. Apr. 3
Quarterly
"300. July 15 'Holders of me. July 3
Quarterly
•30e. Oct. 15 "Holders of rec. Oct. 3
Quarterly
*25e. Jan. 15 *Holders of rec. Dee. 22
Incorporated Investors (quar.)
*10o. Jan. 15'Holders of ree. Dee. 22
Extra
Independent Pneumatic Tool(quar.)
*V
Jan. 6 *Holders of rec. Dec. 26
50e. Feb. 14 Holders of rec. Jan. 23
Indiana Pipe Line (guar.)
10e. Jan, 10 Holders of rec. Dec. 31
Industrial Credits Service
Industrial Finance Corp.C.OrnrnOn (payable in common stock)__ /2% Feb. 1 Hold,of rec. Apr. 18'30
Insull Utility Investments, corn. (quar.) fl4 Jan. 15 Holders of rec. Dec. 15
40c. Jan. 15 Holders of rec. Dec. 3I0
Insuranslaares Corp.(Del.),common A-Internat. Business Machines (guar.).- $1.50 Jan. 10 Holders of ree. Dec. 200
e5
Jan. 10 Holders of rec. Dec. 20
Stock dividend
Stook dividend (5 shares for each 100) (n Jan. 10 Holders of ree. Dec. 200
Internat. Harvester, corn. (guar.)
62%c. Jan. 15 Holders of ree. Dec. 200
St Jan. 15 Holders of rec. Dec. 280
International Match corp..oom•(oo.)
51 Jan. 15 Holders of rec. Dec. 28a
Participating preference (quar.)
International Nickel of Canada1% Fen. 2 Holders of rec. Jan. 3a
Preferred (Par 5100) (qua?.)
8%c. Feb. 2 Holders of rec. Jan. 3a
Preferred (par $5)
International Paints, Ltd., pref.()Vara- •S6%c Jan. 15 'Holders of rec. Dec. 31
1% Jan. 15 Holders of ree. Dec. 26a
Internat. Paper,7% pref.(quar.)
1% Jan. 15 Holders of rec. Dee. 260
Internet'Paper & Power, 7% prof.(qua
14 Jan. lb Holders of rec. Dec. 26
6% preferred (qua?.)
Internat, Printing Ink. pref. (guar.)... 14 Feb. 1 Holders of rec. Jan. 120
3
Jan. 15 Holders of rec. Dec. 31a
International Products Corp., pref.- International Shoe, pref.(monthly) ---- *50e. Feb. 1 'Holders of rec Jan 15
*50c Mar. 1 'Holders of ree Feb. 14
Preferred (monthly)
•50e. Apr. 1 "Holder+ of ree. Mar. 14
Preferred (monthly)
*50e. May 1 "Holders of reo. Apr. 15
Preferred (monthly)
*50o. June 1 'Holders of reo. May 15
Preferred (monthly)
International Tea Store, Ltd.•w12 Jan. 12'Holders of reo. Dec. 12
Amer. dep. rcts, for ord. reg. she
Investment Foundation, Cony. Pr. (qua 374e Jan. 15 Holders of rec. Dec. 31
12lie Feb. 2 Holders of rec. Jan. 15
Investors Trust Associates (guar.)
75e. Jan. 15 Holders of ree. Jan. 2.
Jewel Tea. tom.(guar.)
75e. Jan. 15 Holders of rec. Dec. 245
Johns-Manville Corp.. corn. (quar.)---38e. Jan. 28 Holders of roe. Jan. 10a
Kaufmann Dept. Storm corn. (guar.).Jan. 15'Holders of rec. Dee 31
Kawneer Co.(guar.)824c.or 2% stock_
15e. Jan. 15 Holders of rec. Jan. 2
Kaybee Stores. corn.(quar.)
Kelsey Hayes Wheel Corp., pref. (guar.) •14 Feb. 1 'Holders of me. Jan. 20
1 1% Jan. 15 *Holders of rec. Dee. 31
Keystone Steel & Wire, Prof.(guar.)--. ..
75e. Feb. 2 Holders of rec. Jan. I66
Keystone Watch Case, new corn.(NO. 1)
*25e.
Jan. 15 'Holders of rec. Jan. 6
Knott Corporation (guar.)
Jan. 15 'Holders of reo. Dec. 20
Laboratory Products stock dividend-- "e3
1% Feb. 1 Holders of rec. Jan. 15
Lane Bryant, Inc., pref. (guar.)
Langendorf United Bakeries, cl. A (qua. "50e. Jan. 15 *Holders of rec. Dec. 31
Jan. 10 "Holders of rec. Dec. 31
•11
Laundry Service of California
Jan. 3 Holders of ree. Dec. 20a
3
Lawyers Title & Guaranty (guar.)
250. Feb. 2 Holder* of rec. Jan. 140
Lehigh Portland Cement.eon% (guar.).75c. Jan. 5 Holders of rec. Dec. 22a
Lehman Corp.(qua?.)
Limestone Products, 7% prof. (guar.)._ *824c Apr. I "Holders of ree. Mar. 16
60e Mar. 1 Holders of rec. Feb. 140
Link Belt Co., corn.(qua?.)
Jan. 31 Holders of rec. Jan. 200
$1
Liquid Carbonic (guar.)
Feb. 2 Holders of rec. Jan. 170
2
Lord & Taylor, 2nd pref.(quar.)
650. Jan. 15 Holders of rec. Dec. 315
MacAndrews & Forbes, Coln.(guar.).14 Jan. 15 Holders of rec. Dec. 310
Preferred (guar.)
$3 Jan. 10 Holders of ree. Dec. 316
Macfadden Publications, $8 prof
1% Feb. 2 Holders of rec. Jan. 15
MacKinnon Steel. pref.(qua?.)
50c, Feb. 16 Holders of rec. Jan. 230
Macy (R. H.) & Co., common (quar.)__
Feb. 16 Holders of rec. Jan. 230
5
Common (payable in corn,stock)
15e. Jan. 15 Holders of rec. Jan. ba
Madison Square Garden Corp. (qu.)__750. Jan. 15 Holders of rec. Dec. 316
Magma Copper Co.(guar.)
+374c Jan. 15'Holders of ere. Dec. 31
Magnin (I.)& Co.(guar.)
Mansfield Theatre Co.(Toronto) prof...... 34 Jan. 30 Holders of rec. Dee. 31
*350. Jan. 15 *Holders of rec. Dee. 31
Merchant Calculating Mach., pref
34 Jan, 15 Holders of ree. Dec. 31
Marcus Loew's Theatres (Can.), pref__
Maxweld Corporation, corn.(quar.)---- eelOc. Jan. 15 Holders of rec. Jan. 1
partic.
pref.
($10
par)
(guar.).150. Jan. 15 Holders of rec. Jan. 1
6%
Mayflower Associates,stock dividend__ 'el
Jan. 15 'Holders of rec. Dec. 30
624c Feb. 2 Holders of rec. Jan. 206
mccan corp.(altar.)
McColl-Frontenac Oil, pref.(quar.)
1(4 Jan. 15 Holders of rec. Dec. 31
McCrory Stores Corp., pref.(guar.)._
14 Feb. 2 Holders of rec. Jan. 200
Merchants & Mfrs. Co.$3.50 prior pref. (guar.)(No. 1)
• 734c Jan. 15 *Holders of rec. Jan. 2
Metal Textile Corp., corn
250. Jan. 15 Holders of ree.dDee. 3I5
ParticinaUng pref.(extra)
25e. Jan. 15 Holders of rec.dDee. 31a
Mexican Petroleum, corn.(Oust)
Jan. 20 Holders of ree. Dec. Ma
3
Preferred (guar.)
Jan. 20 Holders of ree. Dec. 310
2
Mlekelberrys Food Prod., corn. (guar.) •15e. Feb. 16 *Holders of rec. Feb. 2
Minnesota Val Can . pref.(qua.)
*51.75 Feb. 1 *Holders of rec. Jan. 20
Mitchell (Robert) Co., Ltd., corn,(qua
25e. Jan. 15 Holders of rec. Dee. 31
Name of Company.
When
Per
Ceng. Payable.
Book, Closed.
Day,Inclusite.
Miscellaneous (Continued).
Mitten Bank Securities Corp., com____ 4624e Feb. 16 Holders of rec. Dee. 31
d624e Feb. 16 Holders of rm. Dee. 31
Preferred (quar.)
Mohawk Investment Trust (quar.)._
*50c. Jan. 15 *Holders of reo. Jan. 1
*20e. Jan. 12 *Holders of rec. Dec. 31
Monighan Mfg., class A (extra)
25c. Jan. lb Holders of rec. Jan. 3
Morris (Philip) & Co.. Ltd.. Inc.(guar.)
Mt. Vernon Woodberry Mills, pf.(qu.)_ *1 4 Jan. 15 •Holdere of rec. Dec. 31
•14e. Jan. 15 *Holders of rec. Dec. 31
Mountain & Gulf Oil Corp.(quar.)
70c Jan. 15 Flowers )1 ree. Dec. 190
National Biscuit, corn.(quar.)
2
Feb. 2 Holders of rec. Jan. 20
National Carbon, pref.(quar.)
75e. Jan. 15 Holders of reo. Dec. 300
National Cash Register, class A (guar.).
*um Jan. 3 *Holders of rec. Dee. 31
Class B
50c. Feb. 82 Holders of rec. Jan. 150
National Distillers Products (quar.)___
75e. Feb. 2 Holders of rec. Dec. 31
National Fireproofing, corn. (guar.)._
75c. Jan. 15 Holders of rec. Dec. 31
Preferred (quar.)
14 Jan. 31 Holders of rec. Jan. 160
National Lead. pre,. B (guar.)
•1% Jan. 15 *Holders of rec. Jan. 1
Newhall Bldg. Trust. pref. (quar.)
Jan. 15 Holders of reo. Dec. 31
51
Newrnont Mining Corp.(guar.)
•1 4 Jan. 31 *Holders of rec. Jan. 15
Newton Steel. Prof. A (quar.)
•10c. Jan. 15 *Holders of reo. Dec. 31
New Bradford 011(quar.)
60e. Feb. 1 Holders of rec. Jan. ea
N. Y. Air Brake (quar.)
3
Jan. 15 Herders of rec. Jan. 5
New York Investors, Lao., let pref
400. Jan. 15 Holders of rec. Dec. 23
New York Transit CO. (quar.)
10e. Jan. 15 Holders of rec. Dee. 24
Niagara Share Corp .com.(guar.)
74c Jan. 20 Holders of ree. Dee. 31
Nipissing Mines(quar.)
*51.50 Jan. 14 *Holders of rec. Dec. 31
Noxzema Chemical
$1.25 Jan. lb Holders of ree. Dee. 31
Ohio Brass, corn. A (qna.)
51.25 Jan. 15 Holders of ree. Dec. 31
Common B (quar.)
14 Jan. 15 Holders of reo. Dee. 31
Preferred (guar.)
824c Jan. 15 Holders of rec. Dec. 315
Otis Elevator. corn. (guar.)
1% Jan. 15 Holders of rec. Doe. 310
Preerred (qua?.)
25e. Jan. 15 Holders of reo. Dee. 31
Packard Electric, corn. (quar.)
•374e Jan. 10'Holders of reo. Dec. 31
Peck Bros. & Co., pref.(guar.)
$1.25 Jan. 15 Holders of rec. Dee. 31
Pennsylvania Salt Mfg.(guar.)
74e. Feb. 2 Holders of ree. Jan. 15
Penn Traffic
Petroleum Landowner*, Corp.(mthly.)._ '25c. Jan. 15 'Holders of rec. Dec. 31
Feb. 2 *Holden of rec. Dec. 31
Philadelphia Bourse, common (No. 1)__ *51
*51.50 Feb. 2"Holders of rec. Dec. 31
Preferred
52.50 Feb. 2 Holders of rec. Jan. lb
Phila Insulated Wire
Phoenix Financial Corp.. pref. (guar.)._ •50e. Jan. 10 "Holders of rec. Deo. 31
*20c. Jan. 20 "Holders of rec. Dec. 15
Pickwick Corp.. 8% pref. (quar.)
*1740 Jan. 5 *Holders of rec. Dec. 15
7% preferred (quar.)
*250. Jan. 25 *Holders of ree. Jan. 15
Pittsburgh Forging (quar.)
35e. Jan. 15 Holders of rec. Dec. 234
Pittsburgh Screw & Bolt (quar.)
Pittsburgh Steel Foundry, tom.(qua?.)- "25e. Jan. 15 *Holders of rec. Jan. 9
•12%e Jan. 15 *Holders of rec. Jan. 9
Common (extra)
0134 Jan. 20'Holders of tea Dec. 31
Plymouth Cordage (quar.)
Porto Rican Amer Tab., class A (qu.)__ 87%e Jan. 10 Holders of ree Dee. 200
1840.
Jan. 15 Holders of rec. Jan. 2
Premier Shares. Inc. (guar.)
Jan. 15 Holders of rec. Dee. 240
Procter & Gamble Co.,8% pref.(guar.). 2
Producing Oil Royalty. pref. (monthly). *10e. Jan. 15 'Holders of rec. Dee. 31
'51 Jan. 15 'Holders of ree. Dee. 31
Quaker Oats, corn.(guar.)
'1% Feb. 28'Holders of reo. Feb. 2
Preferred (quar.)
40e. Jan. 10 Holders of rec. Dec. 31
Republic Stamp. & Enamel.(quar.)_
75e. Jan. lb Holders of ree. Jan. 1
Republic Supply Co. (guar.)
75e. Apr. lb Holden of tee. Apr. 1
Quarterly
75e. July 15 Holders of reo. July 1
Quarterly.
750. Oct. lb Holders of tee. Oct. 1
Quarterly
Revere Copper dr Brass, pref.(guar.)... 1% Feb. 1 Holders of ree. Jan. 100
'6240 Feb. 1 'Holders of ree. Jan. lb
Roos Bros.. corn.(Otis?.)
* $1.821 Feb. 1 "Holders of rec. Jan. 15
Preferred (guar.)
$1.50 Jan. 17 Holders of rec. Jan. 10
Royal Typewriter, common
34 Jan. 17 Holders of rec. Jan. 15
Pref. (for last two quarters of 1930)..__
Royalty ('ore. of Amerlea"350. Jan. lb 'Holders of rec. Dee. 31
Participating pref. (qu.)
•150. Jan, lb *Holders of rec. Dec. 31
Participating oref.
.(extra)
65c. Feb. 1 Holders of rec. Jan.d20
Ruud Mfg.(quar.)
Mar.20
50o. Mar. 20 Mar. 10 to
St. Joseph Lead Co.(guar.)
50e. Jan. 15 Holders of rec. Dec. 31
St. Lawrence Corp.. Ltd., class A
St. Lawrence Paper Mills, pref. (qua?,). 14 Jan. 15 Holders of rec. Dec. 31
San Francisco Mines of Mexico, Ltd.Jan. 13 'Holders of rec. Dec. 1.9
Am.dep. rcts. ord. reg.((s, per share)
Savage Arms Corp., 2nd pref (guar.)._ •51.50 Feb. 16 *Holders of rec. Feb. 2
Schettler Drug, class A pref.(monthly).* 11 2-3e Jan. 15 *Holders of rec. Dee. 31
Schnebbe Fire Protection, Coin. (guar.). *1234c Jan. 15 *Holders of rec. Jan. 1
•60e. Jan. 15 *Holders of rec. Jan. 1
Class A (guar.)
"75e. Jan. 15 *Holders of rec. Jan. 1
$3 preferred (guar.)
Seaboard Utilities Shares,com.(guar.)._ 12%e Feb. 2 Holders of rec. Jan. 2
15c, Jan. 15 Holders of rec. Dec. 315
Seagrave Corp., corn.(Ouar.)
Preferred (quar.)
'1% Jan. 5 *Holders of rec. Deo. 20
'6240 Feb. 1 *Holders of re. Jan. 9
Sears, Roebuck & Co. (guar.)
Feb. 1 Holders of ree. Jan. 90
el
Stock dividends (Quar.)
el
May I Holders of rec. Apr. lia
Stock dividends (guar.)
2% Jan. 15 Holders of ree. Dec. 31
Securities Company
75e. Feb. 1 Holders of reo. Jan. 15
Seeman Bros., Inc., corn. (guar.)
12 tte Jan. 6 Holders of reo. Nov.26
Segal Lock & Hardware (guar.)
*874c Jan. 15'Holders of rec. Dec. 31
Preferred (Otter.)
250. Jan. 10 Holders of rec. Dec. 200
Shattuck (Frank G.) Co.(qua?,)
50e. Jan. 10 Holders of reo. Dee. 206
Extra
Jan. 20 *Holders of rec. Dee. 31
"2
Shearer(W.A.) Pen. pref.(guar.)
Shenandoah Corp., 6% prof. (quar.)--- (9) Feb. 1 Holders of rec. Jan. 6
SIgnode Steel Strapping, corn. (guar.)._ '12%c Jan. 15 'Holders of rec. Dec. 31
"824c Jan. 15 'Holders of rec. Dec. 31
Preferred (guar.)
25e. Jan, 15 Holders of reo Dee. lbe
Sinclair C00801. Oil Corp., tom.(qua.).
Skelly 011, preLaquara
14 Feb. 2 Holders of ree. Jan. 2a
Smith (E. I..) 011 Co
Jan. 10 "Holders of ree. Dec. 16
*SI
S. M. A. Corp., corn.(guar.)
13 Jan. 15'Holders of ree. Dec. 20
15e. Jan. 15 Holders of rec. Jan. 2
Southland Royalty (qua.)
Avoiding (A.0.1 ,s, Bros.. coin.(guar.)...
blas Jan. 15 Holders of ree Deo. 310
Spicer Mfg., pref.(guar.)
750. Jan. 15 Holders of ree. Jan. 20
atarrdaro r 'nolla l'hatcher. pref (qua
*1% WI. 15•[rowers of reo Jan. 15
Standard 011 (Ohio). pref.(guar.)
1% Jan. 15 Holders of rec. Dec. 31
Standard Wholesale Phosp. & Arid (m.) '300. Jun. 15 "Holden of roc. Dec. 31
State Street Invest. Tr.(guar.)
•75e. Jan. 15 *Holders of rec. Jan. I
Steel Co. of Canada, corn. & pref. (qu.) 4314 c Feb. 2 Holders of ree Jan. 7
Stetson (John B.) Co., common
$1.50 Jan. 16 Holders of rect. Jan. 1
El
Jan. 15 Holders of ree. Jan. 1
Preferred
M.
Jan. lb Holders of rec. Dec. 170
Stone & Webster. Inc. (quar.)
Sunray 011, corn.(pay.in stock)
•15
Jan. 15 "Holders of ree. Dec. 20
Sweets Co. of Amer.(guar.)
25o. Feb. 2 Holders of rec. Jan. lba
Swift International
51.50 Feb. 15 Holdera of rec. Jan. 15
35e. Feb. 82 Holders of ree. Jan. 150
TelautograPh Corp.. Corn.(quar.)
Telephone Bond & Share Co.Jan. lb Holders of rec. Dec. 24
Clam A (quar.) 50e. or 1-50th shr. stk.
Claes C(quar.)
51 Jan. 15 Holders of rec. Dee. 24
1% Jan. lb Holders of rec. Dee. 24
Preferred (quar.)
Participating preferred (guar.)
51 Jan. 15 Holders of rec. Dec. 24
Tennessee Products Corp.. eons. (guar.) •25e Jan. 10 *Holders of tee Dec. 31
r annroon (gear.). _
•25e Apr. 10 *Holders of rate hist Si
Tobacco Products. class A (quar.)
20e Feb. 18 Holders of reo. Jan. 230
Class A (extra)
160 Feb. 16 Holders of rec. Jan. 236
Tooke Bros., Ltd., pref. (quar.)
1% Jan. 15 Holders of rec. Dec. 31
Transamerica Corp. (guar.)
25e. Jan. 25 Heldere of rec. Jan. ba
Transue & Williams Steel Fag.(MO250. Jan. 15 Holders of rec. Dec. 315
Tr -National Trading Corp.8% of.(qu.) 134 Jan. 8 Holders of rec. Dec. 20
'Macon Steel, corn. (guar.)
30e. Jan. 15 Holders of rec. Dec. 260
Corn.(Payable In corn.stoat()
16 Mar. 10 Holders of ree. Jan. fla
Tucketts Tobacco, Ltd., Prof.(guar.).134 Jan. 15 Holders of rec. Dec. 31
Tudor City Fifth Unit Inc., pref
Jan. 15 Jan. 1 to Jan. lb
3
Tudor City Ninth Unit, Inc., pref
Jan, 15 Dec. 27 to Jan. 15
3
Twenty Wacker Drive Bldg., pref.(qua. *61.50 Jan. 15 *Holders of rec. Dee. 31
Ulen & Co., com.(quar.)
40e. Jan. 15 Holders of rec. Dec. 310
United Advertising (guar.)
"25e. Jan. 10 *Holders of rec. Jan. 9
Extra
*25e. Jan. 10 "Holders of rec. Jan. 9
United Biscuit of America (guar.)
500. Mar. 1 Holders of reo. Feb. 160
166
Preferred (guar.)
134 Feb. 1 Holders of reo Jan.
United Cigar Storm of Amer., pref.(qu.) 13-4 Feb. 1 Holders of rec. Jan. 90
Preferred (guar.)
14 May 1 Holders of rec. AM'. 100
14 Aug. 1 Holders of rec. July 106
Preferred (guar.)
Preferred (quar.)
14 Nov. 2 Holders of rec. Oct. 96
(quar.)
Jan. 5 Holders of ree. Dee. 66
Fruit
United
51
"60. Jan. 10 *Holders of rec. Jan. 5
United Milk Co.(monthly)
JAN. 3 1931.]
85
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Name of Company.
Books Closed.
Days Inclusive.
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly to the Association and the returns of these two
banks are therefore no longer shown below. The following
are the figures for the week ending Dec. 24:
Miscellaneous (Concluded)
United Ohio Utilities, prior pref. (qu.).... •131 Feb. 1 *Holders of rec. Jan. 10
United Piece Dye Works,eons.(quar.)-500. Feb. 1 Holders of rec. Jan. 150
Common (quar.)
50c. May 1 Holders of rec. Apr. 15a
Common (quar.)
50c. Aug. 1 Holders of rec. July 15a
Common (quar.)
500. Nov. 1 Holders of rec. Oct. 15a
United Shoe Machinery,coin.(quar.)_ 62(4c Jan. 5 Holders of roe. Dec. 16
Preferred (quar.)
371.4e Jan. 5 Holders of rec. Dec. 16
United Verde Extension Mining ((Mar.)50c. Jan. 31 Holders of rec. Jan. 2a
U.S.& British Int., S3 pref.(quar.)
750. Feb. 2 Holders of rec. Jan. 15
pm Class A (quar.)
12 tie Feb. 2 Holders of rec. Jan. 15
U.S.Chain & Forging, corn.(quar.)
*75c. Feb. 15
U.S.Industrial Alcohol (quar.)
$1.50 Feb. 2 Holders of rec. Jan. 15a
U. S. Lines, preferred
50c Jan. 15 Holders of rec. Dec. 31a INSTITUTIONS
NOT IN CLEARING HOUSE WITH CLOSING OF
U. B. Pipe & Foundry, eorn (qual.)
23.a Jan. 20 Holders of roe Dee. 3.0
Firm preferred (guar
BUSINESS FOR THE WEEK ENDED WEDNESDAY, DEC. 24 1930.
ane Jan. 20 Holders of me Dee 81 a
U.S.Smelt., Refg.& Mining, com.(qu.)
250 Jan. 15 Holders of rec. Dec. 31a
NATIONAL AND STATE BANKS-Average Figures.
Preferred (quar.)
87ti c Jan. 15 Holders of rec. Dec. 31er
Universal Leaf Tobacco,corn (quar.)
75c Feb. 1 Holders of rec. Jan. 22a
Universal Trust Shares(No.1)
0th. Cash lies. DeP., Dep. Other
•30e Jan. 15 'Holders of roe. Deo. 30
Loans
Extra
•34e Jan. 15 'Holders of roe. Dec. 80
Gross
Disci. and Gold. Including N. Y. and Banks and
Utilities Hydro & Rail. Shares
Bk.Notes. Elesewhere. Trust. Cos. Deposits.
10e. Feb. 2 Holders of roe. Jan. 2
Invest.
Victor Talking Mach., corn. (quar.)_.... *El
Feb. 2 'Holders of rec. Jan. 17
Vulcan Detinning. corn. (guar.)
1
$
ManhattanJan. 20 Holders of tee. Jan. 65
Preferred (altar.)
154 Jan 20 Holders of roe. Jan. So Bryant Park Bk. 2,643.000 79.100
307,400
2.081.800
67 500
Warner Co., common (quar.)
92.540 1,921.370 1,333,153 18.846.040
50c. Jan. 15 Holders of rec. Dec. 81
Grace National._ 20.469,495 4,000
West Coast Oil. pref. (quar.)
el St Jan. 5 'Holders of roe. Dec. 26
2,710.800 9,200 102.200
158,500
2,113.200
Port Morris
Western Grocers, Ltd.(Can.). Pf.(qu.). 114 Jan. 15 Holders of rec. Dec. 20
BrooklynWestern Tablet & Stationery, corn.(q11.)
618,200
652.200 7.416.600
10,502,800 27,500 240,800
50c. Feb.
Brooklyn Nat'l
Holders of rec. Jan. 20
Westinghouse Air Brake(quar.)
77,000 6,950,000
502,000
500. Jan. 3 Holders of rec. Dec. 240 People's Nat1.-- 7,000,000 10.000 230,000
Westinghouse El & MIg.,corn.& pf.(qu) 31.25 Jan. 3 Holders of rec. 1/ec. 3I6
Worthington Ball, class A (quar.)
"50c. Jan. 1 "Holders of rec. Dec. 31
Wrigley (Wm.) Jr. Co.(monthly)
25e Feb. 2 Hold,,re of rec. Jan. 200
Monthly
TRUST COMPANIES-Average Figures.
50e Mar. 2 Holders of tee Feb. 200
Monthly
25e Apr. 1 Holders of roe. Mar. 200
Wurlitter (Rudolph), pref. (guar.)
*I.M Apr. 1 'Holders of rec. Mar.20
Loans,
lies. Dep., Dry. Other
Preferred (quar.)
*1.11 July 1 'Holders of rec. June 20
Gross
Disci. and
N. Y. and Banks and
Cash.
Invest.
Elsewhere. Trust Cos. Deposits.
•From unofficial sources. t The New York Stock Exchange has ruled that
Stock will not be quoted ex-dividend on this date and not until further notice.
Manhattan$
$
$
3
$
The New York Curb Exchange Association has ruled that stock will not be quoted Bank of Europe & Tr 15.450.712
155.963
13,680,124
759.950
Ox-dividend on this date and not until further notice.
Bronx County
23.044,122
793.174 2,625.179
26.308.419
Empire
76.907.200 "4.363.200 6.928.700 2,969,500 75.290.400
a Transfer books not closed for this dividend.
Federation_ __ _
15.018.822
195.604 2,073.524
210.979 15,921.199
a Correction. • Payable in stock.
Fulton
19,121.600 *2.408.800
493.100
17,138.900
f Payable in common stock. g Payable In scrip. 8 On account of accumulated
United States
66.867,452 4,400,000 11,784,456
53,636,418
dividends. Payable in preferred stock.
Brooklynn Inter. Hydro-Electric System class A dividend Is payable in class A stock at Brooklyn
118.061.000 3,805.000 22,933,000
660.000 123.062.000
Kings County
the rate of 1-50th share, or cash at rate of 50c. a share.
27,606,096 2,392,166 4,344,519
27,683,814
Bayonne, N. J.
p British-American Tobacco final dividend is Is. 8d. and the Interim dividend
8,584,504
324,374
704,715
314,069 8,502,142
10d. Transfer received In London up to Dec.24 will be fn time to enable transferees Mechanics
to receive dividends.
g Shenandoah Corp. dividend will be paid, 1-32d. share corn,stock, unless holders
•Includes amount with Federal Reserve Bank as follows. Empire, $2,742,500:
notify company on or before Jan. 15 of their desire to take cash-75e. per share.
Finton, 32,199,100.
r Corporation Securities div. is optional, either 75c. cash or 1-40th sh corn. stock.
t Amer. Commonwealths Power class A and class B dividends are payable in
class A stock at rate of 1-40th share for each share held.
Boston Clearing House Weekly Returns.-In the
o General Realty & Utilities dividend is payable In common stock at rate of
45-1000 of a share or at option of holder, $1.50 In cash.
following we furnish a summary of all the items in the
co Less deduction for expenses of depositary.
Boston Clearing House weekly statement for a series of weeks:
p Lone Star Gas dividend is one share for each seven held.
cc Payment of Associated Gas & Electric class A dividend will be made in class A
stock-1-40th share-unless stockholder notifies company on or before Jan. 10
BOSTON CLEARING HOUSE MEMBERS.
of his desire to take cash.
ee Maxweld Corp. common dividend is 10c. per share or 2% In stock.
Week Ended Changesfrom Week Ended Week Ended
Dee. 31
Previous
Dec. 24
Dec. 17
1930.
Week.
1930.
1930.
Weekly Return of New York City Clearing House.
Beginning with Mar. 31 1928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 13 1930, page 3812-13. The figures
given below therefore now include returns from these two
new members, which together add $35,750,000 to the
capital, $37,682,500 to Surplus and Undivided Profits,
$141,824,000 to the Net Demand Deposits and $170,451,000
to the Time Deposits. We give it below in full:
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATIOL FOR THE WEEK ENDED SATURDAY, DEC. 27
1930
Clearing House
Members.
*Capital.
•Surplus and Nei Demand
Undivided
Deposits
Profits.
Average.
$
$
$
Bank of N. Y.& Tr. Co.
6,000,000
14,045,800
64.122,000
Bk.of Mainhattan Tr.Co
22,250,000 [53.928,200
264.319.000
Bk.of Amer. Nat'l Ass'n
36.775.300
41,331,600
165,091,000
National City Bank.... 110,000,000 e114,017,100 e1,022.184,000
Chem. Bk.& Trust Co-21,000,000
44,039.700
229,698.000
Guaranty Trust Co
90,000.000 207,391.300 b959.160,000
Chat.Ph.Nat.Bk.arTr.Co
16.200,000
19,62E400
159,011,000
Cent. Han. Bk.& Tr. Co
21,000,000
84,165,400
423,370.000
Corn Exch. Bank Tr.Co.
15,000.000
35.356.600
182.697.000
First National Bank_._
10,000,000 112,282.500
283.597.000
Irving Trust Co
50,000,000
85.182.900
403,770,000
Continent'l Bk.& Tr. Co.
6,000.000
11,341,100
10,094.000
Chase National Bank... 148,000,000 213.397,300
c1,443,100
Fifth Avenue Bank
500,000
3,823,800
27,276.000
Bankers Trust Co
25.000,000
87,280,600 d461.905,000
Title Guar. & Trust Co
10,000,000
24,901,900
35,225,000
Marine Midland Tr. Co_
10,000,000
11,435.600
46.473.000
Lawyers Trust Co
3,000.000
4,804,400
18,607.000
_
.
Trust
York
Co
New
12,500,000
36,081.200
180,715,000
Com'l Nat. Bk. & Tr. Co
7,000.000
9.711,800
44,722,000
Harriman Nat. Bk.& It.
2.000.000
2.566.800
29.691.000
Public Nat. Trust Co
88,250.000 514.8.58.400
37,877.000
Manufacturers Trust Co. 827,500,000 823.124,100
101,997,000
Clearing Non-Members,
City Bank Farm,Tr. Co_
Mech. Tr, Co.. Bayonne
Tntalit
10,000,000
500,000
13,698.200
905.600
3,524,00
2,915,000
Time
Deposits
Average.
$
16,117,000
51,229.000
53,532,000
205.817.000
28.058.000
113,916,000
37,873,000
72,906.000
35,780,000
29,531.000
53,416,000
437,000
205.126,000
2.195.000
68.274.000
1,758.000
4,701.000
1,859.000
46,653.000
3.925,000
6.790.000
54.081.000
101,788,050
5,221,000
688.475.300 1.269 093 non rt oni t an nnn 1 'inn nol
I
,
•
•As per official reports: National. Sept. 24 1930: State, Sept. 24 1930:
Trust
Companies, Sept. 24 1930. e As of Sept. 30 1930. 1 As of Nov. 17 1930.
g As of
Dec. 111930.
Includes deposits in foreign branches as follows: (a) $294,338,000:(b)
0146,710,000; (c) $148,178,000, (d) 3.58,248,000.
$
Capital
94.075.000
Surplus and profits
98.996.000
Loans.d Wets & invest'ts. 1,044,830.000
Individual deposits
633.147,000
Due to banks
154.937,000
Time deposits
281.150,000
United States deposits
19.782.000
Exch.for Clearing House.
22.912.000
Due from other banks_- 109.039,00
Res'vein legal deposities_
84.718,00
Cash in bank
7,799.00
Rae v e In excess In F.R.Bk
4.698.000
$
s
$
-625,000
94,700,000
94.700.000
-148.000
99,144,000
99,144.000
-4,497.000 1,049.327.000 1,057,864,000
+6.191.000 626.956.000 635.310.000
+9.157.000 145,780,000 153.992,000
-9,364,000 290,514.000 298.156,000
-1.922.000
21.704,000
10,738.000
+3.799.000
19,113,000
22.005,000
+3.0(13.000 105,976,000 104.545,006
+2,149.000
82,596,000
84,441,006
+920.000
6,879,000
6,007,006
+1.236.000
3.462.000
3.926.006
Philadelphia Banks.-Beginning with the return for the
week ended Oct. 111930, the Philadelphia Clearing House
Association began issuing its weekly statement in a new
form. The trust companies that are not members of the
Federal Reserve System are no longer shown separately
but are included with the rest. In addition the companies
recently admitted to membership in the Association are
included. One other change has been made. Instead of
showing "Reserve with Federal Reserve Bank" and "Cash
in Vault" as separate items, the two are combined under
designation "Legal Reserve and Cash."
Reserve requirements for members of the Federal Reserve
System are 10% on demand deposits and 3% on time deposits, all to be kept with the Federal Reserve Bank. "Cash
in Vaults" is not a part of legal reserve. For trust companies not members of the Federal Reserve System the
reserve required is 10% on demand deposits and includes
"Reserve with Legal Depositaries" and "Cash in Vaults."
Beginning with the return for the week ended May 14 1928,
the Philadelphia Clearing House Association discontinued showing the reserves required and whether reserves held are above or
below requirements. This practice is continued.
Week Ended
Dec. 27
1930.
5
82.534.000
Capital
269,437.000
Surplus and profits
Loans, discts. and invest. 1,476.983,000
Each, for Clearing House
32.842,000
Due from banks
101,377,000
Bank deposits
201,598,000
731.428,000
Individual deposits
402,237,000
Time deposits
Total deposits
1,335,263.000
Reserve with P.11. Bank. 126,353,00
Changesfrom
Previous
Week.
Week Ended
Dec. 20
1930.
Week Ended
Dec. 13
1930.
$
$
$
Unchanged
82,534.000
87,410.000
Unchanged
269,437.000 271,973.000
-5.773,000 1,482.756.000 1,523.783.000
-2,182,000
35,024,000
25.937,000
-14,115,000 115,492,000 123.042.000
-14.604.000 216,202,000
224,130.000
-13,738.000 745.166.000
747,071.000
-16.622,000 418.859,000 440.314,000
--44,964,000 1,380.227.000 1,411.515.050
+4,740.000 121,613,000 127.11.12 win
[VOL. 132.
FINANCIAL CHRONICLE
Weekly Return of the Federal Reserve Board.
The following Is the return Issued by the Federal Reserve Board Friday afternoon, Jan. 2 and showing the condition
of the twelve Reserve banks at the close of business on Wednesday. In the first table we present the results for the Systera
as a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding week last year.
The second table shows the resources and liabilities separately for each of the twelve banks. The Federal Reserve Agents'
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between the Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's Comment upon the returns for the
latest week appears on page 46, being the first item in our department of "Current Events and Discussions."
COMBINE!, RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANNS AT THE CLOSE or BUSINESS DEC. 31 1930.
1
26 1930.1Nes. 19 1930. Noe. 12 1930. Dec. 31 1929.
Dec. 31 1930. Dec. 24 1930.i Dec. 17 1930. Dec. 10 1930.,, Dec. 3 1930. INos.
1
S
I
s
$
s
$
s
I
RESOURCES.
1,676,911,000
1,730,439,000 1,703,400.000'1,665,310,000 1,850,870.000 1,588,506.0001,592,508,000 1.589.056.000 1.598,251,000
131310 with Federal Reserve agents
73,287,000
34,255,000
35.085.000, 35.082,000
33.453.000;, 36.833.000
35,450,000, 33,700,000
34.911,000
Geld redemption fund with U. 8. Treas.
1
1,750,205,000
Jolt] held atelusively ages. F. R. notes 1,765,350,000 1,738,850.000 1.699,010.000 1.684,323,000 1.625.330.0001,627,591.00&1.624,138,0001,632,506.000
511,243,003
417,710,010 437,581,0001 462.649,000 474,094.000 486,843,000, 474.745,000, 500,471,000 492.384,000 595,603,000
Gold eettlement fund with F. It. Board.
903.626,000
916,373,000
922.634,000i
895.309.0001
846,603,000,
797,191,000
Gold and gold certificates held by banks. 758,129,000 745,636,000
s
s
s
I
Total gold reserves
,other than gold
Reser% c.
2,941,219,000 2,922,067,000 2,958,850,000 3,005,020,000 3.007,491,000 3.024.970,0003,040.082,000 3.028.496,000
140,298,000 115,499,000: 132,2-10,000 136,457,000 137,312,000 138,832,000; 150,302,000 148,704,000
2.857,051,000
153,877,000
Total reserves
Non-reserve eaeli
Cilia diecounted:
Secured by U. 8. Govt. obligations
Other bills discounted
3,041,517,000 3.037,566,000 3.091.090,0003.141.477.000 3.144,803,000 3,163,802,000 3,191.28.4,000 3.177,260,000
59,961,000, 61,565.000; 61.210,000, 68,395,000, 68,752,000
62,779,000
59,750,000
79,932.000
76,357,000, 66,064,000
87,419,000
93.371,000
89.676,000
89,421,000 219,422,000 144,528,000
161,977,000 228,927.000 186,793.000 167.421.000, 158,556.000; 146,433,000 128.680,000, 125,593,000
3,010,928,000
81.909,000
353,559,000
278,862,000
Total bills discounted
Bill, bought in oven market
U. 3. Government aecurttles:
Boons _
Treasury notes
Certificates and bills
251,398,000
363,844,000
448,349,000
259,837,000
331,321,000
251,591,000
257.097,000 250.927,000, 233,852,600 205,037,000. 191,657.000
243,697,0001 218,937,0001 176,106,000, 178.273,000' 207.342,000
632,421,000
392.209,000
163,735,030
226,473,000
339,209,000
127,234,000
193,090,000
321,352,000
121,287,000
200,030.000
371,117,000
70,910,000, 54.803,000
239,282.000; 247.269,000
306.811.000: 300,060,000
45,742,000, 39,110,0001 38.137,000
258,151,000 257,037,000 281,730,000
291,741.000 290,626,000 281,423.000
76,817,000
215,604,000
218,166,000
Total U.S. Government securitiee
Other ;securities Des mole)
Foreign loans on gold
729,467,000
7.143,000
641,676,000
6,533.000
692.434,000
7.451,000
617.003,000} 602.192.000
6,358,000
108.000
595,634.000' 595.773,000
6.297,000
6.348,000
601.290.000
6,297.000
510,587,000
12,300,000
Total Mlle and securities fees wore)___ _ 1,351,852,000 1,356,395,000 1,282,797,000 1,117,905.000 1.078,414,000 1,011,940,000! 985,380,000 1.006,586,000 1,547,517,000
Gold held abroad
721,000
705.000
705.000
707.000,
2,652.000
702.000
703,000
703.000
704,000
Dne from foreign banka (see Note)
584.783.000 570.952,000 733,584,000 526,348,000 571.488,000 531,631.0001 613.143.000' '619.206,000 706.588,000
ilacollected items
42,148,000
18.839,000; 849./80(100
14,067.000
15.250.000
15.322,000
14.066.000
21,019.000
21,993,000
Federal Reserve notes of other banke__
57,359,000
59.702,000, 59.702.000, 59,700.000
59.704.000
59,742,000
59,783,000
59,783.000
57,843.000
Bank premises
11,275,000
24,388,0001 21.564.000, 16.043,000
19.881.000
20,780,000
20.925,000
22,525,000
22,024,000
All other resources
5,200,648,000 5,128,693,000 5,265,727.000 4.942.237,0004,9.53.737,000 4,867,447,000 4,959,012,000'4.968,122,000 5,458,4-15,000
Total resources
1,663,538,000 1,721,897,000 1.596,168,000 1,475.745,000 1,450,898,000 1,421,868.000 1.383.604,000 1.371,148,000 1,909,723,000
F. R. notes In actual circulation
Deposita:
Member banke-reserve account
Government
Foreign banlui (see mote)
Other fleposita
2,470,583,000 2,368,717,600 2,454,974,000 2,447,517,000 2,423,952,000 2,409,929.000 2.448,746,00012,490.289.000 2,355.263,000
28,852.000
24,196.000
16.402.0001 41,935.000
29,384.000, 37,137.000
2.615,000
46,1/0,000
18,819,000
5,710,000
5,419,000
5,433.0001
5,377.000
6,152.000
5,557.000
5,611,000
5,656,000
5,761,000
23,850,000
19,757,000
18,723.000. 22,879,000
20,273,000, 20,248,000
20.348,000
18,396,000
21,970,000
Total deposits
Deferred availability items
Capital paid la
Surilus
All other liabilities
Total liabilities
Ratio of gold reserves 13 deposits and
F.1k. note liabilities combined
Ratio of total reserves to deposits and
F. R. note liabilities combined
Contingent liability on blUe purchaaed
tor foreign corrosponelente
woe__
Dtstralmtton Ow SI(Auntie31-16 day bills bought in 01)t111 market_
1-15 flays Ms(Recoil tad
1-15 days U. 8. certif. of Indebtedness_
1-15 days municipal warrants
10-10 days bills bought in open market-16-30 day. bilis dls000nted
16-30 days U. d. certif. of indebtedness
16-39 daps municipal warrants
51 60 days bills bought in open market_
31 SO dsvs bills discounted
31-60 days U. 8. certif. of indebtedness_
31-50 days municipal warrants
11-90 days bill, bought in open market51-90 flalfs bills discountedIndebtedness
of
51-90 days U.S Marti'warrants
01-90 days municipal
Over 90 days bills bought In open market
Over 90 days bills discounted .
Over 40 days certif. of Indebtedness-Over so days municipal warrants
2,517,133,000 2,436,949,000 2,483,548,000 2,489.749.000 2.492,267.000 2,463,413.0002.514.195,000 2,539,661,000 2,413,675,000
561,007,000 503.448,000, 720.068,000 511.002,000 544,819.000 516,493.000 595.772,000 592.135.000 672,922,000
169,640,000 170,314,000, 170.303.000 170.302.000 170.591,000 170.468,000 170.455,000 170.404.000 170,973,000
274.636,000 276,936,000: 278,930,000 276,936.000 276.936.000; 276,938.000 276.938,000 276.936,000 276,936,000
14,216,000
17,778.000
18,050,000
18,503,000, 18,226,0001 18,269,000
18,701,000
19,149,000
11,694,000
i
5.200,648,000 5,128,693,000 5,265,727,000 .942,237.000 4,953.737,000 4.867,447,000 4,959,012,000 4,068,122,000 5,458.445,000
70.3%
70.2%
72,5%
75.7%
76.2%
77.8%
780%
77.4%
68.4%
73.7%
73.0%
75.8%
79.2%
79.8%
81.4%
81.9%
81.2%
69.6%
439,288,000
432,327,000
434,600,000
417,422,000
425.826,000
428,938,000
428,561.006
426,541,000
547,962,000
92,595.000
107,130.000
241.075.000 171,392.000
109,000.00) 73.555,000
84,859.000
167,328,000
72.765.000
65.854.000
152,715.000
61.282,000
131,427.000
78,168.000
120,509,000
31,214,000
280,459,000
503,072,000
219,272,000
175,501,000
2,425,000
135,000
68,062,000
17,659,000
29,000
47,249,000
26,966,000
24,182,000
15,000
28,129,000
19.459.000
1,132,000
11,813,000
312,602,000
614,000
S
149,905,000
355,058,000
80,720,000
22,149,000
77,280,006
27,077.000
70,984,000
24,410.000
51,091.000
23,983.000
44,203,000
21,725,000
73,765.000
41,242,000
19,799.01)0
79.765.000
43,344,000
20,462,000
103,000
45,814,000
36,331,000
194,000
40,712,000
34.937,000
23,457.000
15.000
8,218.000
23,255,000
110.000
55.973,000
30,673.000
67,414,000
30,269.000
68,277.000
28,745,000
53,802.000
30,117,000
55,766,000
29,428,000
58.358,000
29,015.000
79,766,000
47,422,000
48,742,000
84,000
12.655,000
19,530,000
38.707,000
74,000
14,062.000
19.230,00e
38,707,000
10,000
48.000
11,641.000
188,588.000
24,000
64.000
12,088.000
16.958.000
38,707.000
10.000
159.000
12.337.000
179,269.000
24,000
47,000
19,865.000
14.089.000
43,707.000
29,447,000
12,951,000
18,310,000
25,932,000
81,338.000
24.000
232,000
12,050,000
297,895,000
14,000
11,160,000
19,838,000
33,957,000
3.000
43,000
12,658,000
228,160,000
24,000
49,000
11,496,000
194,549,000
24.000
118,000
10,294.000
176,154.000
47.000
25.009
8,720,000
170,443,000
204,000
13,340,000
136,828,000
47,000
3 644,332,000
1,217,748,000
F.R.notes received from Comptroller_
F.R.notea held by F It. Agent
2,093,625,000 2,121,087.000 2,047,285,000 1,961,936,000 1,874,572,000 1,851,713,000 1,814,878.000 1.813.431,000 2,426,584,000
blued to Federal Iteserve Banks
How Secured621,009,000 625,644,000 617.054.000 571,114,0(10, 512,250.000 482,250,000 473,800.000 463,895,000 414,018,000
Ely gold and gold certificates
1
Geld redemption fund
1.048,256,01)0 1,079,756.00011,076.250.000 1.110.256,000 1,115,256,000 1,134.556.000 1,262,870,000
Geld fund-Federal Reserve Board._ 1,109.430,000 1,077,756,000
518,669,000
437,991.000 407,749.000 358,944,000 333,844,000 337,099,000 920,462,000
631,915.000
507.788,000
paper
Ho eligible
2,238.227,000 2,335,315,000 2,183,979,0002.088,861,000 1,996,255.000 1.951,450,000 1,922.900,000 1.935.350.000 2,647.380,000
Total
rrypE.-deginning with the etatemeut of Oct. 7 1925, two new items were added to order to show eepar....te y time ,1,11,1l1111 or ualemss now abroad and amounts este
the caption, "All other earning meets.- Prevloilall made up of Foreign intermediate Credit Bank debentures, was changed to
10 Ionian oorreepondents. In addition,
of the total of
and the caption, "Total earning &meta" in -Total bills and securities." The latter Item was adopted as a more aoeurate description
"Other securitiee.securities
moulted under the Provision of Benton' 13 and 14 of the Federal Reserve Act, which, it was stated, are the only items Included
and
aoeeptances
discounts.
She
therein.
RESOURCES AND LIABILITIES OF EACH OF THE 12 FEDERAL RESERVE BANKS AT CLOSE OF BUSINESS DEC. 311930
7SZEKLY STATEMENT OF
,
Two Ctrilsors (00) aretheil.
BOMA. New York. Ma. Cleveland. REAriottd Atlanta. Catcauo, St. Lone, rif ennui) Koo.C14, Dallas, 8ces Fres.
Total.
Federal Emerge Rant of$
$
$
$
$
3
$
$
3
RESOURCES.
149,917,0 420,720,0 160,000.0 185,550,0 83,150,0 129,500.0 173.000,0 74,885.0 48,325,0 62.000,0 27,220,0 215,763.0
Gold with Federal Reserve A8a041 1,730,439.0
798,0 4,529,0
802.0 1,449,0
1,593,0 2,913,0 2,375,0 2,237.0 1,097,0 1,594,0
14,032,0
,
'
34,911,0
Treas.
13.5.
with
Gold redo fund
151,409,0 434,761,0 161,593,0 188,463,0 85,525,0 132,137,0 174,097,0 76,479,0 49,127,0 63,419,0 28,018,0 220,292,0
Gold held tad east Fli• LOW 1,765,350,0 18,711,0 135,358,0 61,416,0 36,196,0 18,231,0 10,803,0 49,660,0 18,721,0 10,076.0 21,551,0 0,959,0 27,058,0
C;ctid genial fund with F.R.Board 417,740,0 31,149,0 437,003,0 15,543,0 53,812,0 9.464,0 7.907.0130,114,0 9,129,0 5,208,0 7,371,0 8.425,0 43.004,0
DM end gold etik.helei by banks_ 758,129.0
a
Total gold reserves
Re3trve other than gold
Total reserves
Nan-reserve cash
Bldg discounted:
See. by U. B. Govt. obligations
Other bills dieeounted
$
$
$
290,354,0
2.941.219,0 201,269.0 1,007,122,0 238,552.0 278.471.0 113,220.0 150,847,0 353,871,0 104,329.0 64,411,0 92,371,0 46,402.0
39,879,0 8,874,0 8,096,0 6,904.0 8,578,0 21.591,09.303,0 4,258,0 7,200,0 7.126,0 8,393,0
140,298,0 10,096,0
53,528,0 293,747,0
3,081,517,0 211,365,0 1,047,001,0 247,426,0 286,567,0 120,124,0 159,425,0 375.462,0 113,632,0 88,669,0 09,571,0 4,208,0 5.311,0
22,285,0 5,146,0 6,428,0 4,556,0 4.693,0 11,382,0 4,675,0 2,432,0 2,345,0
79.932,0 6,473,0
89,421,0
161,977,0
5,880,0
7,358,0
472,0 10,891,0
24,441,0 10,272,0 20,930,0 3,235,0
37,457,0 15,391,0 16,286,0 19.531,0 17,597,0 11,913,0
403,0 1,298,0
3,173,0 13,744,0
744,0
3,598,0
3,5711.0 15,042,0
8,411,0 12,971,0
4,342,0 15,483,0
8,575,0 31,023,0
Total bllla discounted
BIN bought In Open market
U. 8. Government securities'
Bonds
Treasury notes
Cs/titIcaten and bills
251.398,0 13.238,0
363,844,0 25,315.0
61,898,0 25,683,0 37,216,0 22.766,0 18,069,0 22,804,0 11,301,0
158,273,0 3,498,0 25,931,0 10,938.0 15.755,0 52,370.0 10.788,0
163,785,0 3.877,0
226,473,0 17.939,0
339,209,0 28,089.0
89.226,0 3,289,0 3,614,0
58.332,0 22.510,0 29,303,0
135.774,0 28,405,0 30,008,0
r Ait D
729,467.0 49.025,0
283.332,0 54.204.0 62.925.0 13,907,0
Ha Gov't sesurftles
2,010,0
4,716,0
7,181,0
5,893,0
9,590,0
4,962.0
6,339,0
523,0 30,005,0 1,202,0 5,936.0 2,063,0 11,381,0 9,759.0
4,380,0 22.538,0 15,056,0 10,185,0 11,555,0 7,807.0 22,132,0
2,974,0 36,160,0 10,125,0 11,181.0 17,993,0 12,128,0 19.191,0
7.877,0 89,603,0 26,383,0 27,302.0 31,611.0 31.316,0 51,082,0
JAN. 3 1931.]
FINANCIAL CHRONICLE
RESOURCES (Concluaed)T., eintter• (OW omitted.
Total.
$
7,143,0
3ther securities
Foreign loans on gold
Total bills and securities
Doe from foreign banks
Uncollected Items
F. 11. notes el other banks
Bank premises
All other resources
Boston.
87
New York
Paita
Ctevelana gteafsena anima ChICLIPO 4. Louie Vet/teal, Kan.City
---- - - ---- ------ ----- ----- ---- ----S
S
S
3
S
S
$
$
S
2,850,0
610,0 1,000,0
600.0 1,000,0
233,0
S
850,0
1,351,852,0 89,328,0
52.0
704,0
584,783,0 65,638,0
21,993,0
337,0
57,843,0 3,458,0
22,024,0
76,0
Dallas
San Free.
$
$
506,353,0 83,973,0 127.072,0 47,609,0 42,301,0 165,777,0 48,472,0 39,522,0 59,624,0 44,233,0 97,588,0
231,0
68,0
71,0
30,0
25,0
26,0
16,0
94.0
21,0
21,0
49.0
183,283,0 51,802,0 53,979,0 38,140,0 12,846,0 68,622,0 21,817,0 10,366.0 31,675,0 17,362,0 29,253,0
7,173,0
350,0 1,397,0 2,266,0 1,685,0 2,333,0 1,056,0
805,0 1,798,0
487,0 2,306.0
15 240 0 2.614,0 6,833,0 3,249,0 2,573,0 8,061,0 3,635,0 1,926,0 3,803,0 1.830,0 4,621,0
8,615,0
136,0
990.0
967,0 4,552,0 1,126.0 3,508,0
528,0
241,0
551,0
734,0
Total resources
5.200,648,0376.727,0 1,790,181,0 391,515,0 483,337,0 216,941,0 228,101,0 632,857,0 196,820,0 124,264,0 199,078,0 122,218,0 438,609,0
LIABILITIES.
F. Ft. notes In actual circulation_ 1,663,538,0 132,035.0 384,976,0 153,727,0
194,948,0 100,515,0 133,854,0 139,162,0 84,599,0 53,558,0 68,424,0 31,901,0 182.839,0
Deposits:
Member bank-remerve acel 2,470,583,0150,930,0 1,062,276,0 142,539,0
186.377,0 60,820,0 61,014,0 360.832,0 69,521,0 48,447,0 87,705,0 57,533,0 183,583,0
Government
18,819,0
829,0
4,113,0 1,344,0 2,240,0
444,0 1,211,0 2,590,0 1,089,0 1,280,0 1,597,0
673,0 1,409.0
Foreign bank
5,761,0
425,0
1,903,0
558,0
575,0
241,0
207,0
207,0
132,0
770,0
173,0
173,0
397,0
Other deposits
21,970,0
65,0
9,555,0
163,0 2,697,0
168,0
534,0
479,0
139.0
960,0
54,0
119,0 7,037.0
Total deposits
2,517,133,0 152,255,0 1,077,847,0 144,604,0 191,889,0 61,673,0 62,911,0 365,152.0 71,351,0 49,998,0 89,529,0 58,498,0 191,426,0
Diderred availability Items
564,007,0 59,167,0 178,877,0 49,256,0 50,765,0 36,110,0 13,130,0 66,524,0 23,934,0 9,776,0 27,711,0 17,964,0 30.793,0
Capital paid In
169,640,0 11,877,0
65,578,0 16,793,0 15,813,0 5.801,0 5,346,0 20,145,0 5.053,0 3,063,0 4,311.0 4,356,0 11.504,0
Surplus
274,636,0 21,299,0
80,575,0 27,065,0 28.971,0 12,114,0 10,857,0 39.936,0 10,562,0 7.144,0 8,702,0 8,936,0 18,475,0
All other liabilities
11,694,0
994,0
2,328.0
70,0
951,0
728,0 2,003.0 1,938,0 1,321,0
725,0
401,0
563,0
572.0
Total Ilabllitlea
5,200,648,0 376,727,0 1.790,181,0 391,515,0 483,337,0 216,941,0 228,101,0 632,857,0 196,820,0 124,264,0 199,087.0 122,218,0
438,609.0
Memoranda.
Reserve ratio (per cent)
73.7
74.3
82.9
71.6
74.1
74.1
74.5
81.0
66.3
63.0
72.9
59.2
79.2
Contingent liability on bills purcha,ed for foreign correspondls 439.288,0 32.153,0
147,736,0 42,147,0 43,450.0 18.249.0 15,612.0 58,224,0 15,642,0 9.994,0 13,035,0 13,035,0 29.981,0
FEDERAL RESERVE NOTE STATEMENT
retterel Reserve Agent alTotal.
Boston. New York. Ma. Cleveland Richmond Atlanta. Chicago. Si. Louie. Mittman. Kaa.Cily.
-- Two Ciphers (00) omitted$
$
$
$
$
$
$
It
3
3
$
Federal Reserve notes:
Issued to F.R.1sk. by 1".R.Agt_ 2,093.625,0
521,757,0 181.135.0 333.591.0 110,075,0 161,866,0 189,407,0 94,870,0 58,704.0 82,446,0
Held by Federal Reserve bank_ 430,087,0 167,190.0
35,155,0 139,781,0 27,408,0 38,643,0 9,560,0 28,012,0 50,245,0 10,271,0 5,146.0 14,022,0
In actua !circulation
1,663,538,0 132,035,0 384,976,0 153,727,0 194,948,0 100.515,0 133,854,0 139,162,0
84.599,0 53,553,0 68,424.0
Collateral held by Agt, as security
for notes Issued to bank:
Gold and gold certificates
621.009,0 35,300,0 395,729,0 38,700,0 20.550,0 5.150,0 7,500.0 30.000,0 14,085.0 11,825.0
Gold fund-F.R.Board
1,109,430,0 114,617,0
25,000,0 21.300,0 165,000,0 78,000,0 122,400,0 143,000,0 60,800,0 36,500,0 62,000.0
Eligible paper
507,788,0 35.889,0 146.054,0 22,444,0 55,346,0 32,077,0 32,483,0 70,281,0
20,427,0 10,554,0 26,794.0
Total collateral
2.238.227.0 135.306.0 566.783.0 182.444.0 240.896.0 115.227.0 162.383 6 243
281 0 05 312 n 58879.0 88.794.0
Dallas. San Franz
3
$
38,510.0 251.074.0
6,609,0 65,235,0
31,901,0 185,839,0
17.170,0 45,000,0
10,050,0 170,763,0
11,609,0 43.830,0
33.829,0 259,593,0
Weekly Return for the Member Banks of the Federal Reserve System.
Following is the weekly statement issued by the Federal Reserve Board,
giving the principal items of the resources
and liabilities of the reporting member banks from which weekly
returns are obtained. These figures are always a week
behind those for the Reserve banks themselves. Definitions of the different
ment of Dec. 14 1917, published in the "Chronicle" of Dec. 29 1917, page items in the statement were given in the state4126. The comment of the Reserve Board upon
the figures for the latest week appears in our department of "Current Events
ceding which we also give the figures of New York and Chicago reporting and Discussions," on page 47, immediately premember banks for a week later.
Beginning with the statement of Jan. 9 1929, the loan figures
exclude
"Acceptances of other banks anti bills of exchange or drafts sold wnh endorsement, and include all real estate mortgages and mortgage
loans
endortement were included with loans, and some of the banks included held by the bank. Previously acceptances of other banks and bills sold with
mortgages In Investments. Loans secured by U.S. Government obligations are
no longer shown separately, only the total of loans
on securities being given. Furthermore, borrowing at
divided to show the amount secured by U. S. obligations
Federal Reserve is not any more suband these secured by commercial paper, only a lump the
ing banks is now omitted; in its place the number
total being given. The number of reportof cities included
The figures have also been revised to exclude a bank in the San (then 101) was for a time given, but beginning Oct. 9 1929 even this has been omitted.
Francisco district with loans and investments of
merged with a non-member bank. The figures are now given
$135,000.000 on Jan. 2 which recently
in round millions instead of in thousands.
PRINCIPAL RESOURCES AND LIABILITIES OW ALL REPORTING
MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT
AS AT CLOSE OP
BUSINESS DEC. 24 1930 (In million, of dollars).
Frileral Reserve District-
Total.
Boston, New York
Phila.
Cleveland. Richmond Atlanta
Chicago. St. Lottis.1.1flaneap, Ase.('Uy
Loans and investmente--total---
$
22,985
3
1,435
$
9,263
3
1,318
$
2,227
644
601
$
3,350
Lcmns-total
16,200
1,093
6,581
881
1,482
461
451
7,779
8,421
440
658
3,756
2,826
463
422
720
762
173
288
136
315
6,785
387
2,681
431
746
183
3,156
3,629
153
234
1,352
1,329
143
291
348
397
74
109
1,772
318
97
18
848
118
82
25
136
30
13,603
7,1211
202
857
520
19
6,398
1,756
41
750
356
16
1,407
3.203
80
120
158
1,154
250
8
89
$
$
$
$
Dallas. San Fran,
S
645
364
650
449
S
1.987
2.466
480
233
408
329
1.326
1,193
1.272
198
282
78
155
107
301
95
234
420
906
151
884
166
131
242
120
660
69
82
415
469
32
133
67
64
98
144
69
51
336
324
34
17
39
11
265
39
45
9
25
6
55
11
33
7
103
26
1,062
992
21
329
241
12
299
230
20
1,855
1.284
32
376
227
1
215
150
1
463
195
2
271
147
12
729
1,027
25
69
210
99
234
68
97
67
97
237
488
83
115
87
80
164
208
100
109
195
240
13
29
90
10
It
3
n
• Exclusive of figures for one bank in New York City. closed Dec.
11. Last report of bank showed loans anti investments
of about $190,000,000.
2
49
On securities
All other
Investments-total
Us B. Government securities
Other securities
Reserve with F. R. Bank
Cash In vault
Net demand deposits
Time deposits
Government deposit,
Due from banks
Due to bank,
Borrowings from P. R. Bonk
i
Condition of the Federal Reserve Bank of New York.
The following shows the condition of the Federal Reserve
Bank of Now York at the close of huffiness Dec.31, 1930,
in comparison with the previous week and the correspond
ing date last year:
Res memGold with Federal Reserve Agent
Gold reclean). fund with U. S. Tresoury_
Gold held exclusively agst. F. R. cotea
Gold settlement fund with ..e. R. BoardGold and gold certificates head by Wolk..
Total gold reserves
Reserves other than gold
Dec. 31 1930. Dec. 241930. Dec. 31 1929.
$
$
$
420,729,000 434,355,000 238,594,000
14,032,000
14,092,000
16,814,000
434,761.000
135,358.000
437,003.000
448,447.000
93,858,04)0
445,677,000
255,408,000
154,835,000
339,617,000
1,007,122,000
39,879,000
987.982,000
34,674,000
749,860,000
50,382,000
Total reserves
1,047,001,000 1.022,656,000
Non-reserve cash
22,285,000
16,634,000
Bills discountedSecured by U. B. Govt. obligations).24,441,000
77,292.000
Other bIlle discounted
37,457,000
64.194,000
Total bills discounted
61.898,000 141,480,000
Bills bought In open market
158,273.000
98,797,000
U. S. Government etnuntleeBonds
89,226,000
69,431,000
Treasury onto
58,332,000
34,728.000
Certificate,
'and bills
135,774,000 128,302,000
Total U.S. Government securities
283,332,000 232,551,000
Other securitivt (see nose)
2,850,000
3.450.000
Foreign loans on gold
800,242,000
12,946,000
127,012,000
44,747,000
171,759,000
191,745,000
16,997,000
131.383,000
90,826,000
Resources (0°114110mi)Gold held abroad
Due from foreign banks (See Neil)
Uncollectsd items
Federal Reserve notes of otker banks
Rank prerolsee
All other resources
Total resources
2:31,000
183,283,000
7,173,000
15.240,000
8,615,000
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
Ratio of total reserves to deposit and
Fedi Res vs Dote Dahill:les oornblned_
Contingent liability Oil bills purchased
for foreign correspondence
229,00))
218,000
156,383,000 203,188,000
6.498.000
16,815,000
15,664,000
15,664,030
7.890.000
3.283.000
1,790,181,000 1.702,238,000 1,662,216,000
Peal Reserve notes) In actual ciroulletlon_ 381,976,000
Deposits--Member bank, reserve acct._ 1,062,276,000
Government
4,113,000
Foreign bank (See No(e)
1,903,000
Other deposits
9,555,000
Total liabilities
239,206,000
7,150,000
Dec. 31 1930. Dec. 24 1930. Dec. 31 1929
399,542,000
991.317,000
10,747.000
1,930.000
8.184,000
318,971,000
985,791,000
5,851,010
1,801,000
10,927,000
1,077,847,000 1,012.178.000 1,004,370,000
178,877,000 137,663,000 187,721,000
65.578,000
66,238.000
67,301,000
80,575,000
80.091,000
80,001,000
2,328,000
6,616,000
3,852,000
1,790,181,000 1,702,238,000 1,662,216,000
71.6%
72.4%
60.5%
Total bin, and securities (See Nole)
506,353.000 476.284.000 609,860,000
147.736.000 143,513.000 166,928,000
NOTE.-Beginning with the statement of Oct. 7 1925, two new
Items were added It order to dlow separately the amount of balances held abroad and amounta
foreign correspondents. In addition, the caption "All other
due to
assets," previous y made up of Federal Intermediate Credit Bank debentures, was changed
securities," and the caption, "Total earning assets- to -Totalearning
to "Other
bills and securities:. The latter term was adopted as a reore accurate
descranion 01 tbe total of the discount
acceptauces and securities aouthred under the provision' of Stanton. 13
and 14 of the Federal Reserve Act. wbion. it was stated. are the only items included
therein.
[VOL. 132.
FINANCIAL CHRONICLE
88
Quotations for U. S. Treas. Ctfs. of Indebtedness, &c.
Vanliers' i azette.
(All prices dollars per share)
Wall Street, Friday Night, Jan. 2 1931.
Railroad and Miscellaneous Stocks.-The review of the
Stock Market is given this week on page 76.
The following are sales made at the Stock Exchange this
week of shares not represented in our detailed list on the
pages which follow:
STOCKS.
Week Ended Jan. 2.
Range for Week.
Lowest.
Highest.
Range Since Jan. 1.
Highest.
Par. Shares. 3 per share. $ per share. $ per share.$ per share.
RailroadsSept
20 80 Dec 27 85 Dec 31 7831 Dec 96
Caro Clinch & Ohio.100
Oct
Dec 105
Dec 31 92
10100 Dec 31 100
Certlfs stamped_ _100
Feb
Dec315
27
18931
Dec
1943j
30
Dec
200 194
Central RR of N J.10
Sept
Dec 27 7036 Oct 80
30 77 Dec 27 77
Cleve & PittsburghMar
Dec 70
Dec 29 38 Dec 29 33
200, 38
100
Cuba RR pref
Nov 3231 Jan
4,50(Y, 9 Dec 31 log Dec 27 9
Int Rys of Cent Am.1
Nov 733.5 May
130 47 Dec 31 47 Dec 31 36
100
Preferred
Feb
Nov 29
50 8% Jan 2 836 Jan 2 9
Certificates
Sept
Dec 27 4634 Sept 75
130 5331 Dec 30 61
2.4anhat Elev guar__100
Feb
% June 3
31 Dee 29
400
100
31 Dec 29
Market St Ry
Feb
100 2% Dec 29 231 Dec 29 236 Sept 6
Second preferred_100
36 Dec 3% Feb
X Dec 30
36 Dec 30
160
Y State Rys pref _100
Mar
Dec
6
2934
2
Jan
10
30
Dec
6
30
100
pi_
1st
Pacific Coast
Dee 14731 Sept
Dec 30 130
20 137 Dec 30137
Rensselaer & Sarat_100
Dec 6734 Mar
500 22 Dec 30 23 Dec 31 22
Rutland RR pref. _ _100
Dec 13531 Mar
60
29
Dec
30
6734
Dec
66%
310
100
South Ry M&O etfs
Dec 11031 June
10 93 Dec 31 93 Dec 31 93
Wheeling & L E pf_ _100
Indus. & Miscell.Apr
Nov 72
400 4036 Dec 30 4131 Dec 29 40
•
Allegheny Steel
36 Dec 336 Mar
Dec 27
36 Dec 30 I
• 4,100
Amalg Leather
Feb
12
Dec
2631
27
14%
Dec
27
Dec
661 1431
100
Preferred
Dec
Am Agrie Chem etfs.100 2,500' I% Dec 29 2 Jan 2 136 Dec 23.5 Nov
900 173.5 Jan 2 19 Jan 2 17% Dec 23%
100
Pref certtfs
Mar
Dec 45
330 8 Dec 29 10% Dec 30 8
Amer Beet Sugar p1.100
Mar
300 82 Dec 29 83 Dec 29 7516 Jan 101
Amer Chain pref..100
Oct
22
15%
Dec
31
20
Dec
30
Dec
17
_•
1,400
American Colortype_
Dec 87% Jan
500 75 Dec 27 75 Dec 27 75
American Ice pref. _100
Dec 11536 Apr
200 93 Dec 29 93 Dec 29 93
Anchor Cap Corp pref.*
Apr
Dec 20 10031 Sept 110
Dec 29 102
100 102
Arch Daniels Mid p1100
Feb
Oct 100
Dec 3(Y 80
Dec 30 81
50 81
Artioorn Corp Prof. _100
Feb 9531 Apr
300 90 Dec 29 9136 Dec 29 85
Asso Dry Oda 1st tit 100
300 8131 Dec 30 82 Dec 29 81% Dec 10036 Apr
Second preferred _100
May
Dec 30
Dec 30 15
Dec 30 20
60 20
Austin Nichols pr A...•
Oct
_100
1011731 Dec 31 11731 Dec 31 113% Jan 120
Brown Shoe pref._
Dec 30 1931 Dec 29 1731 Dec 84% Apr
100 19
•
Celotex Corp
Sept
Dec 12
8,400 331 Dec 30 4% Jan 2 3
Certificates
Certain-Teed Products
200 834 Dec 29 836 Dec 29 631 Dec 4536 Mar
First preferred_ _ _100
Dec 13531 Aug
Dec 30 105 Dec 30 100
10105
Cob Fuel & Iron pi _100
400 2031 Dec 31 2331 Dec 31 2031 Dec 2631 Sept
Comm Cred pref (7) _25
Sept
Dec 31 7735 Jan 95
Dec 31 86
10 86
let Prof ex-warr...100
May
Jan 115
2010131 Dec 29 10134 Dec 29 99
Comm Inv tr of (7).100
Dec 9374 May
40 53 Dec 29 65 Dec 31 53
COMO I Cigar pf (7).100
Apr
Nov 77
110 55 Dec 30 55 Dec 30 53
Prior Prof x-warr_ _ _
Oct
100 32 Jan 2 32 Jan 2 3031 Dec 35
Crown Cork & Seal pf.•
Jan
y, Dec 27 1 Dee 31 31 Dec 120236 Mar
Cuban Dominion Sug_* 30,300
Dec
96
31
Dec
30100
Dec
97
130
(7)
pf
_100
Sons
Cushm's
Aug
20 831 Dec 30 831 Dec 30 831 Oct 14
Del3eers Cons Mines_ __
400 1531 Jan 2 1631 Jan 2
Diamond Match new..
300 2434 Jan 2 2431 Jan 2
Preferred
Sept
Feb 106
Dec 30 99 Dec 30 97
20 99
Duplan Silk prof...100
Oct 5734 Feb
50 23 Dec 31 23 Dee 31 23
Durham H04M ills p1100
Jan
14
Dec
2
31
Dec
231
27
2 Dec
5
Elk Horn Cord pref_50
34 Dec 334 Jan
36 Dec 29
36 Dec 29
100
Emers Brant'g'm cl B_•
Nov 2031 Mar
150 734 Dec 31 734 Dec 31 6
Emp Capwell Corp...'
Mar
170 14 Dec 29 1536 Jan 2 1231 Dec 80
Fashion Pk Assoc pref..
Dec 2531 Sept
Dec 27 10
Federal Screw Wks.100 1,500 10 Dec 30 11
Mar
99
Dec
76
30
Dec
30
100
_100
76
76
Dec
pi_
Franklin Simon
Feb
si
s
Dec86
360 62 Dec 30 6531 Dec 29 60
Fuller Co 24 prof
Jan
Dec125
Jan 2 97
90 97 Dec 30 98
Gen Baking pref
Apr
111
Dec
63
29
Dec
65
29
63
Dec
140
Gen Gas & El pf A(7).•
Apr
Dec 122
60 75 Dec 29 75 Dec 29 75
•
Preferred A(8)
Dec 9036 May
535 73 Dec 29 73 Dec 29 65
Gen Printing Ink pfd _•
Dec 4231 Mar
Dec 30 19
Dec 30 21
•
470 19
Common
Sept
6010431 Jan 2 107 Dee 29 10031 Jan 115
Gen Ry Signal pfd _100
Dec 7031 Nov
31
5631
Dec
29
Dec
5831
pf'
1,300
6931
cony
Gillette Sul Raz
Apr
20 40 Dec 271 40 Dec 27 3831 Dec 89
Greene Cananea Cop100
Mar
Dec 27
Dec 30 12 Dec 27 11
20 II
Guantaruima Sug pf 100
Feb
Dec
61
3634
29
Dec
3931
30'
Dec
120; 39
Hawaiian Pineapple_ 20
July
2013331 Dec 2913331 Dec 29 12331 Jan 138
Helme(G W) pref_100
Jan
85
Dec
50
3
Dec
55
301
Dec
65
•
100
Powder
Hercules
Houston Oil new _25 17,800 736 Dec 30' 831 Jan 2 634 Dec 1131 Oct
Dec 8731 Mar
70 2031 Dec 29 2236 Dec 30 18
Indian Motocycle pf 100
431 Dec
Indian Refining Ws_ -.1 28,000 336 Dec 27 4 Jan 2 334 Dec 70
Sept
Dec
500 25 Dec 30 25 Dec 30 25
Int Comb Eng pi ctfs..J
110 7036 Dec 30 8536 Dec 27 7035 Dec 11231 Feb
Intermit Silver pref.lOOI
Mar
8236
Dec
59
30
Dec
68
30
Dec
10 68
Inter Dept St pref.._1
K C Pow & LtNov
116
Jan
108
29
Dec
Dec
40
2911431
11331
•
B
series
1st pref
July
3
31 Dec 29 36 Dec 271 31 Dec 936
4,000
Kolster Radio ctfs
July
Kresge Dept Stores_ __• 1,050 4% Dec 30 6% Jan 2 4% D
Jan
62
Dec
3236
31
Dec
31
Dec
3231
3231
100
Preferred
Dec 30 10431 Dec 115 June
40 106 Dec 30106
Kresge(S 5)Co pf_ _100
Apr
Dec 35
10 25 Dec 27 25 Dec 27 25
Kuppenheimer & Co_ _5
Dec 2331 Oct
600 1631 Jan 2 17 Dec 30 17
Lane Bryant
Sept
400 135 Dec 3013531 Dec 30 12731 Dec 146
Liggett&MyersCopf 100
Mar
126
Dec
118
20
Dec
118
29
Dee
118
70
lstp1100
Loose WilesBis
May
99
Dec
7631
291
Dec
300 8731 Dec 30 8731
Lorillard Co pref._ _100
Apr
100 6931 Dec 30 6931 Dec 30 6931 Dec 87
McLellan Stores p1.100
Dec 2631 May
100 2331 Dec 27 2331 Dec 27 23
Metro Goldw Pict pf_27
Jan
.109
6010031 Dec 3010531 Jan 2 10036 Dec 110
Milw El Ry & Lt pf.
Jan
Dec 30 1336 Dec 82
Nat Bellas Hess pf. 100 1,600 1331 Dec 29 17
Jan
90
Dec
60
30
Dec
62
160 60 Dec 31
Nat Dept Stores p1.100
July
10731 Dec 3110731 Dec 3010631 Aug 116
Nat Supply pref...100
Apr
Dec 54
• 2,200 20 Dec 30 2131 Dec 31 20
Nelsner Bros
Jan 2 1531 Dec 1731 Dec
• 2,600 16 Dec 27 18
Newport Co(The)
Mar
85
Dec
30
29
Dec
27
3831
Dec
38
200
so
Class A
Feb 331 June
300 231 Dec 29 236 Dec 29, 2
Nunnally Co
Nov 85 June
Dec 31 65
100 6831 Dec 30 69
Omnibus Corp pref.lii
Apr
56
Dec
22
27
Dec
2231
27
Dec
22
400
Opp'helm Collins& Co•
May
Dec 72
Dec 30 50
100 45 Jan 2 55
•
Outlet Co
Dec 6031 Apr
2131
2
Jan
2331
30
Dec
2131
800
Stores-.
Peoples Drug
Dec
11.800 934 Dec 27 1031 Jan 2 831 Dec 1031 Mar
Peoples Gas Chicago
Dec 1231
4
Penne Coal & Coke. 50 1,100 43.5 Dec 29 431 Dec 29 70
July
Dec 88
31
Dec
70
31
Dec
70
10
Phoenix Hosiery p1_100
Apr
Dec 82
300 60 Dec 31 60 Dec 31 .56
Pierce-Arrow Co pf.100
1531 Jan
2,300 231 Dec 27 234 Dec 30 254 Dec 45
Pitts Terminal Coal.10
, Jan
Dec
20
29
Dec
20
29
Dec
10 20
109
Preferred
Dec 1931 ,Oct
400 1136 Dec 27 1131 Dec 29 11
25
Pitts United
Oct
120 9131 Dec 30 9336 Dec 31 9131 Dec 103
1
Preferred
Produc & Refiners Corp
Mar
29 1131 Dec 40
Dec
29
1231
Dec
1131
110
50
Preferred
31 Aug 156 June
36 Dec 271
31 Dec 27
Punta Alegre Bug etfs 50 2,50
Dec 9931 June
42
100
.3501 42 Dec 29 43 Dec 27, 12
Skelly 011 pref
Dec 5631 Mar
30'
Dec
12
30
Dec
12
Sloss-Sheff St &
3001
Mar
Dec 82
2831
30
Dec
400 2831 Dec 30 2931
100
Preferred
Jan
Aug 121
Dec 29 013
120 103 Dec 31 106
So Port Rico Sug p1.100
Jan 73% Apr
25
311
Dec
40
31
Dec
40
Stanley Cool America_
Feb
11
Oct
t3(
236 Dec 27 234 Dec 271
10
I
United Dyewood
Apr
100 1231 Dec 27 1231 Dec 27 1231 Dec 7931
Vadsco Sales Prof...100
Jan
22
600 1431 Dec 30 15 Dec 27 634 Nov
•
Van Raalte
34
Jan
Sept
Dec 30 12
Dec 31 21
Va Iron Coal & Coke100
200 21
May
70
Jan
5I31
30
Dec
60
30
60
Dec
30i
100
pi
Webst Eisenlohr
•No par value.
Maturity.
June 15
June 15
Sept.15
Dec. 15
11131....
1931._
1931._
1931_
Int.
Rate.
Int.
Rale.
Bid.
Asked
231%
IX%
2ii'7.
15491
100yo
109zu
100",,
10042
1001,82 Sept.15 1931-32 31491
100.11 Mar. 15 1031-32 831%
1001.o Dee. 15 1930-32 33691
s,
100,
Maturity.
Bid.
Asked,
100.2,, 10011,,
1001% 100u,,
101nsi 1011.si
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.Below we furnish a daily record of the transactions in Liberty Loan and Treasury certificates on the New York
Stock Exchange. The transactions in registered bonds are
given in a footnote at the end of the tabulation.
Daily Record of U. S. Bond Prices. Dec. 27 Dec. 29 Dec. 30 Dec... 31 Jan. 1. Jan. 2.
101 10al
High 101... 101",, 101,18, 101"as
First Liberty Loan
101...
531% bonds of 1928-47- Low- 101..i, 101..o 101..o 1011.11
10125,1
101"32
,
101,,
.01",,
101"n
Close
(First 334 )
151
10
55
12
5
Total sales in $1,000 units__
Converted 4% bonds of(High
wiLo
_
_
_
1932-47 (First 4s)
Close
____
___ ____
____
____
Total sales in 81.000 units_ _ _
.., 102no
102"32
{High 102../, 102..3. 102,
Converted 434% bonds
.o 102.,o
102.*.
of 1933-47 (First 4315) Low- 102..” 102... 102,
102,882
Close 102..3: 102"82 102"n 102"n
19
40
46
34
3
Total sales in $1.000 units__
102
____
____
---- --Second converted 4318.(High
____
102
____
____
____
1.0w(First(
bonds of 1932-47
102
Second 4.4s)
5
____
____
____
--__
Total sales in Si ON units. _ _
HOLT
103...
103..o
0o
103..o
103.
1031.,,
High
Fourth Liberty Loan
103‘.., DAY 1031,o
431% bonds of 1933-38_ Low- 1031.” 1031.rs 103i.n
103":,
Close 103"32 1031.” 10311,1 103"o
(Fourth 4 WI al
218
314
619
41.)
320
Total sales in 31,000 units...
112..,
(High 112.31 112.3, 112..1 112.11
Treasury
1121,2
112.,2
on
11
I
112
112.81
Low_
I
436s, 1947-52
112,81
112',,
112
(Close 112,n 112
41
4
43
81
41
Total sales in $1.000 units...
108.,2
---108
107..n
108
.'High
108.8s
108
.--107"32
Low_ 108
4s, 1944-1954
108..,
---108
107"n
Close 108
6
____
125
188
25
Total sales in $1,000 units.-10601St
---.
High 1062as 105n8s 105",,
10610
---105.10
105no
106
1.ow_
331e, 1946-1956
____
106"ss
Close 106,a, 105,182 1058,as
46
___
100
50
21
Total sales in $1,000 units_ __
1021.o
---____ 102.4o 102..n
High
1021.ss
---____ 1021.o 102,°o
Low_
336s, 1943-1947
102111,
------ 1021.r, 102...,
Close
__
15
1
15
---Total sales in 81,000 units- 10210,t
____ 1023,1
____
____
.
'High
102To
336s, 1940-1943
102..
____ 1021,,
____
____
'Close
.
..
Note.-The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
103"ss to 103"8
112..o to 112.4
1071.8 to 107..,
3 4th 41411
2 Trees 431s
15 Tress 45
Foreign Exchange.To-day's (Friday's) actual rates for sterling exchange were 4.85144
4.859-16 for checks and 4.8536 04.85 11-16 for cables. Commercial on
banks. sight, 4.35 3-16@4.8536: sixty days, 4.83 X 04.83 7-16: ninety days,
4.82 5-16@4.82 9-16; and documents for payment, 4.52%@4.S3 7-16.
Cotton for payment, 4.85, and grain for payment, 4.85.
To-day's (Friday's) actual rates for Paris bankers' francs were 3.9214
guilders were 40.2334@40.26
103.92 9-16 for short. Amsterdam bankers'
for short.
Exchange for Paris on London, 123.71: week's range. 123.71 francs
high and 123.60 francs low.
The week's range for exchange rates follows:
Cables.
Checks.
Sterling, Actual4.853-4
4.85 23-32
High for the week
4.85 17-32
4.85 7-32
Low for the week
Paris Bankers' FrancsHigh for the neck
Low for the week
Germany Bankers' MarksHigh for the week
Low for the week
Amsterdam Bankers' GuildersHigh for the week
Low for the week
3.93 1-16
3.9214
3.9334
3.9214
23.8214
23.80
23.83
23.8116
40.2914
40.2314
40.3014
40.2514
ENGLISH FINANCIAL MARKET-PER CABLE.
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as follows tilt past week:
Fri..
Thurs.,
Wed.,
Tues.,
Mon.,
Jan, 2.
Jes. 1.
Dec. 27. Dec. 29. Dec. 30. Dec. 31.
1414
14 7-16
1431
1431
Silver, p. oz..d. 1431
85s. 136d •
Gold, p.fine oz. 85s. Md. 855. 1364. 85s. 136d. 85s. 1 54d.
5774
579-16
5731
5731
5731
Consols, 2345-10354
10234
10336
10231
---British Is
10134
10131
101
101
British 4368
French Rentes
85.70
85.30
85.90
85.70
(In Paris)..fr.
French War La
101.60
101.20
101.10
(in Paris).fr.
101.10
The price of silver in New York on the same days as been:
Silver in N. Y., per oz. (eta.):
315.4
Foreign
313.4
3031
31%
3131
The Curb Exchange.-The review of the Curb Exchange is
given this week on page 79.
A complete record of Curb Exchange transactions for the
week will be found on page 108.
Report of Stock Sales New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page On.
For sales during the week of stocks not recorded here. see preceding page
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Dec. 27.
Monday 1
Dee, 29.
Tuesday
Dec. 30.
Wednesday
Dec. 31.
Thursday
Jan. 1.
Friday
Jan. 2.
,./1 alf1,111.
Sales
for
the
Week
STOCKS
NEW YORK STOCK
EXCHANGE.
I per share $ per share I $ per share $ per share , $ per share $ per share Shares
Railroads
Par
17634 178
175 17812 17538 182141 17812 18018
178% 18334 14,654 Atch Topeka & Santa Fe__100
10414 10114 103,8 105
10413 10412 2102 102
10213 10212 1,300 Preferred
100
*9714 9834 96
9714 9514 105
2,950 Atlantic Coast Line RR
105 105
10014 100,4
100
6514 66
63
67
6534 7113 6918 7012
100
6818 718 40.100 Baltimore & Oldo
*7014 7214 *7038 7214 7238 7218 *7218 7214
400 Preferred
100
72'4 7338
5158 5212 5018 5212 5134 51
"54
571
*5312 5713 1,600 Bangor & Aroostook
50
*107 108
108 108
10712 10712 "10712 108
*10712 108
301 Preferred
100
1345
65
55
*50
60
55
55
67
75
"55
800 Boston& Maine
100
8
8
8
8
*8
10
300 Brooklyn & Queens Tr_No par
*8
10
*8
10
*517 56% *5178 55
*517 56
•5178 56%
*518 568
Preferred
No par
58% 6178 608 8414 6014 61% z60% 6112
6012 6138 21,740 Bklyn-Nfanh Tran v t o No par
85
8518 8712 8712 *8412 90 "844 89
6001 Preferred v t o
*8418 91
No par
3
*5 4 6
612 6% 1,500,Brunswick Term & Ry See_ 100
- 534
558 6'8 "6,4 638
3712 377
3758 39
3814 3912 39
39
40% 28,600hCanadlan Pacific, new
25
3938
3713 3818 3734 39
3914 4214 4018 4138
3912 4114 37.270,Chesapeake de Ohio new
25
58
%
12
58
38
34
78 114 5,8001Chicago & Alton
100
34
1
*14
34
*14
12
78 3,200 Preferred
34
100
58
38
38
18
•---- 18 *____ 18 •____ 18 *____ 18
•____ 18
Chic & East Illinois 1lR___10
•
25 *__ 25 *____ 25 •____ 25
•____ 25
Preferred
100
538 558
512 534
638 634
613 612 4.500 Chicago Great Western_ _100
58 631
1612 1638 1618 1678 1613 2018 18% 1912
8,000 Preferred
1913 20
100
514 6
57
5
512
514 618 29,000 Chicago Milw St Paul & Pao__
5
514 58
91
93 1038
912
912 1034 40,900 Preferred new
814 913
918 1038
31
3218 2812 3114 2878 33
33
32
3514 21,242 Chteago & North Weatern_100
35
*101 103 *101 103
*95 103
101 101
100: Preferred
"90 103
100
46
47
46
4638 46
4714 4934 9,900 Chicago Rook Isl & Pactflo_100
49
484 4834
*93
95
93
93
1392
95
95
95
•92
200 7% preferred
*93
100
*83
89
83
83
8118 82 .82
86
.83
500 8% preferred
87
100
41
41
*36
41
•35
4013 4018
4178 4018 4018
300 Colorado & Southern
MO
*5734 70
*573 70
*5014 70
100 First preferred
6538 6.538 *5014 70
100
•____ 67 •____ 67 •____ 67 *____ 67
•____ 67
Second preferred
100
33
3314 3314 3313 30
Consol
RR of Cuba pref
341 1 3412 6,300
32
34
32
100
13112 132
13018 131
•13612 137
2,900 Delaware & Hudson
131 135
13612 1361
100
77
78
7413 764 76
821 1 82
280
8212 5,900 Delaware Lack & Western..100
8234
*2734 32
*2734 32
2712 2812
28
2912 2712 2834
800 Deny dr Rio Or West pre1,100
2478 25
2438 25
2518 28
28
2914 18,000 Erie
278 2838
100
34
31
3314 34
3,900 First preferred
3934 41
33,2 3534 36
38
100
*3114 34
31
3114 *3112 36
*34
42
40
*35
1,600 Second preferred
100
5734 5834 754
5614 53
5812 6114 11,000 Great Northern preferred 100
5638 57
58 8
Stock
*17
19
1912 10
191:. *17
17
1934
1812 20% 1,300 Gulf Mobile& Northern
100
62
65
6112 62
64
70
6414 "62
6634 7018 1.200 Preferred
100
37
37
3534 36
36
37
3558 38 Exchange
3734 38% 3,700 Hudson& Manhattan
100
67
6812 67
684 68
69% 69
6958 7312 9,542 Illinois Central
7212
100
360
66
*60
66
Closed
*60
60
66
760
60
24 RR See stock certificates__ _
60
26
28,8 2618 2838 26
2638
268 25
2618 264 10,500 Interboro Rapid Tran v t a_100
.37
3834 35
37
34
35 z3412 3412 New Year's 35
2,100 Kansas City Southern
100
37
5314 5314 *51
5312 .52
*51
53
53
200 Preferred
53
53
100
*51.1
52
5112 52
54
51
533 5334
Day.
54
•50
900 Lehigh Valley
50
8414 85
84
88
88
89
87
86
9018 104
2,200 Louisville& Nashville
100
3512 363
34% 3814 3412 3538 *3412 3514
34
3538 19,600 Manhat Eley modified guar100
*14
15
14
14
14
14
.1312 15
*1212 15
303 Market St Ity prior prof _ _100
*14
12
*14
12
*14
200 Minneapolis & St Louis...10i
*14
'8
1
38
38
*5
10
*5
10
814 814
858 838
834 834 1.600 Minn St Paul & S S Marle_100
*40
45
*41
45
*41
42
45
42
45
*41
200 Leased lines
100
1614 1614 1618 1614 1614 1812 188 1978
20
2012 21.200 Mo-Ran-Texas RR____No par
65
6638 68
6614 6512 69
70
70
3,700 Preferred
70
100
70
2678 27
2714 273
28
3158 3013 3138
3012 3118 4,900 Missouri Pacific
100
87
87
8412 87
87
8514 87
89
3,300 Preferred
8612 90
100
•76
_ _ *78
__ *78
_"78
_-- ____ _ _ Morris & Essex
5
*76•70
80
-*70 -7970 -70
"40 -79
.40 -79
40 Nash Chatt & St Louis__ __100
38
3
13
38
38
38
*14
*14
12 1.000 Nat Rys of Mexico 2d pref_100
1
110.3 1121 108,3 11112 110 11612 11413 1173
113 1178 56,480 New York Central
100
*7312 74
73
7312 7314 74
7314 7314
*74
8212
900:N Y Chic & St Louis Co_ _100
76
77
757 757
75
751 *7512 80
*7612 8612
6001 Preferred
100
*155 157
155 155
160 171
170 170
165 165
50
60IN Y & Harlem
7053 71
6918 71,8 6918 773
7518 77
75
80
11.300IN Y NH & Hartford
100
108 10838 108 10838 108,4 10934 110 110
•109 110
3,5001 Preferred
4% 41
418 412
51
414 5
53
513 538
3,0001 N Y Ontario & Western ___I00
101
11
*1
112
1
1
*1
llx
1
1
600 N Y Railways pref __ __No par
*14
1
*14
12
14
II
*14
12
24
14
190 N Y State Itys
100
*512 67o
5% 512
6% 78
6
6
*514 7 I 1,500 Norfolk Southern
100
193 193
19614 19614 196 198
19614 20014
.198 205
2,200 Norfolk & Western
100
*90
95
*90
05
*90
95
*90
96
90
9018
110 Preferred
100
47
4778 4414 477
4534 4812 74612 477k
4714 5014 15,300 Northern Pacific)
100
*2
512 •2
512
518 3% •2
512
"2
512
300 Pacific Coast
100
5512 5614 547 56
547 5734 5614 5758
557 5812 61,900 Pennsylvania
50
*512 612
512 512
412 412 *5
10
•5
712
300 Peoria & Eastern
100
8412 8112 8334 8334 7612 804
*75
87
"77
100
95
400 Pere Marquette
•____ 9113 *____ 9112 •____ 9112 *76
9112
---- 9112
Prior preferred
100
80 *____ 80 *____ 75 •____ 75
•____ 75
Preferred
100
*42
52
4978 497
4878 5134 52
•52
52
5512 1,500 pittapurgh & West Virginia 100
*7438 7712 74
75
7438 8013 80
80
79
8078 2,200 Reading
50
4614 4614 *46
47 .16
47
*46
47
*46
47
100 Fleet preferred
50
*41
4713 *41
4712 *41
4712 *4213 4713
4713
"41
Second preferred
50
4218 4212 3934 40
4012 43
41
41
43
43
4.075 St Louis-San Francleco__100
6638 66% 6614 6634 63,8 66
*6312 60
z6378 63% 1,980 First preferred
100
•2014 21
18
18
1712 2013 "18
23
23
2414 2,200 St Louis Southwestern__ _100
40
40
40
40
40
40 .40
49
.40
49
500 Preferred
100
12
58
12
58
12
13
12
84 24,490 Seaboard Air Line
38
38
100
12
78
38
38
34
78
1
1
1
1
6,700 Preferred
100
89
894 8914 001s 8834 9318 033 9334
923
4
96
17,533
Southern
Pacific
100
Co
4638 49
4612 5038 4634 51
40
5034
74734 49
21,500 Southern Itallway
100
76
7612 7612 76
76
76 •____ 85
85
*
800 Preferred
100
*83
*83 109
99
*85
99
88
88
•85
99
100 Texas & Pactfie
100
*47
512
5
5
•514 6
6
6
"6
613
200,Third Avenue_
100
812 91. 9
*938 10
914 *9
914
*914 10
600 Twtn City Rapid Tratisit 1130
*4114 4738 •4114 473
; *4114 45
4434 4434
45
45
20
Preferred
100
174 17831 175 182
17712 180
180 18314
17934 190
7.410 Union Pacific
100
86
86,8 86
8614 8614 85
86
85
84
84
700
Preferred
100
1312 1312 14
1414 1414
1712
17
16
•17
18
2,800 Wabash
100
40.2 4012 4112 421 .4112 43
40
*39
*41
44
2,600 Preferred A
100
1134 1212 12
1314
•12
143
; 1313 14
1314
1414
10,900
Western
Maryland
100
*1212 16
*1312 1534 *1312 158
*1134 16
"13
16
Second preferred
100
*712 912
77
712 s%
77
*812 97
1,400 Western Pacific
•912 10
100
23
2312 23
*2213 25
2314 2614 2614
"23
2612 1,100 Preferred
100
Range for Year 1930.
On oasis of 100-sh4re lots.
Lowest.
Highest.
LOWS!
Highest.
-$ per share
5 per share $ per share per shays
168 Dec 17 24212 Mar 29 19518 Mar 29852 Aug
100 Dec 18 10834Sept 29
99 May 10478 Dec
9514 Dee 30 17512Mar 18 161 Nov 20912 July
55% Dec 16 122% Mar 31 10514 Nov 14518 Sept
7014 Dec 19 8458July 25
75 June 81 Deo
50,8 Dec 29 8412 Mar 29
Oct 90% Sept
55
10612 Dec 16 11614June 4 y10314 Oct 115 Sept
44 Dec 16 112 Feb 8
85 Apr 145 July
15 Dec
618 Dec 11 15781day 22
7 Nov
53 May 3 6612May 29
44 Nov 65 Sept
5513 DC'23 7838 Mar 18
Oct 81, Feb
40
83 Dec 17 9834Sept 25
7612 Nov 92% Feb
514 N., II 3358 Apr 23
4% Oct 44% Jan
3514 Dee 17 5214May 14
3238 Dee 17 5133Sept 9
38 Dec 10 10 Apr 2
Nov
163g Feb
14 Dec 23 1038 Apr 11
3% Nov 2534 Feb
1414 Jan 7 28 Mar 26
15 Dec 43 Feb
29 Sept 25 527* Mar 26
3634 Dec 66% Fen
434 Dec 15 1714 Mar 31
2378 Feb
7 Nov
12 Dec 15 52101aY 16
171,Nov 63% Jan
414 Dec 17 2632 Feb 7
16 Nov 4472 Aug
734 Her 17 46% Feb 10
2812 Nov 6852 Sept
2812 Dec 29 8972 Feb 8
75 Nov 10812 Aug
101 Dee 30 14034June 3 134 Apr 145 Feb
4514 Dec 17 125% Feb 14 101 Nov 14312 Sept
92 Dec 17 11038Mar 2C 100 Nov 109 Oct
81 Dee 15 108 Feb 7
9473 Nov 10314 Nov
4018 Dee 31 95 Feb 12
8614 Dec 135 July
6538 Dec 30 80 June 11
6512 Oct80 Jan
60 ..11.1y II 75 Apr 22
84 Apr 7213 Mar
30 Dec 30 62 Apr IC
45 Nov 7038 Jan
13018 Dec 29 181 Feb E 14113 Oct226 July
6912 Dee 15 153 Feb E 12014 June 16934 Sept
25,8 Dec 18 80 Mar 22
49
Oct7734 Feb
22% Dec 8 6334 Feb 14
4112 Nov 9312 Sept
27 Dec 16 678* Feb 11
5513 Nov 6614 July
26 Dee 17 6212 Feb 14
52 Nov 637a July
51 Dec 10 102 Mar 24
8514 Nov 128% July
1012 Nov 11
4612 Feb 11
18 Nov 59 Feb
5538 Nov II 98% Mar If
70 Nov 103
Jan
347s Dec 17 531 Mar 21
34% May 583* Jan
654 Dec 22 1365 Apr 2: 116 Nov15312 July
58 Dec 19 77 May 1:
70 Nov8012 Feb
2038 Jan 3 39'c Mar 11
15 Oct5838 Feb
34 Dec 30 8538Mar 21
60 Oct10878 July
53 Dec 19 70 Apr II
83 Nov 7012 Jan
40 Nov 12 84% Mar 3
65 Nov 10214 Feb
84 Dec 29 13812 Apr , 110
Oct 15434 Sept
24 June 281 4212Sept 2'
24
Oct 5712 Jan
13 Dec 171 2512 Feb 1:
1412 Nov 3912 Jan
14 Oct 16
38 Jan
2% Apr 1
114 Nov
814 Dec 30 35 Feb '
35 May 611,Sept
41 Nov 10 5913 Feb 2
51 Dec 66
Jan
147 Dec 17 6638 Apr 1,
2718 Nov 6534 July
60 Dec 17 1083s Mar T
9378 Nov 10712 Apr
2038 Dec 17 9812 Mar I
46 Nov 101% July
79 Dec 17 14512Mar I
105 Nov 149
Oct
75 Dec 17 87 Oct 1
7532 Oct 8653 Jan
70 Dec 17 132 Mar 2: 173 Nov 240 Aug
14 Dec 18
112July 21
1
Oct
338 Jan
10518 Dee 17 19234 Feb 1, 160 Nov 25612 Aug
73 Dee 29 144 Feb 11
110 Nov 19232 Aug
75 Dec 30 11034May I.
100 May 110 Dec
152 Dec 23 324 Feb :
155
Oct 379
Jan
67% Dee 17 12818Mar 2'
8072 IRO 13212 Oct
106,2 Dec 17 13512Mar 2
11458 Jan 13444 Aug
334 Dec 17 1714 Mar 3
8 Nov 32 Feb
97 Feb
1 oct 16
418 Jan 1
112 Dec
% Aug 27
212 Feb ,
Oct.14% Mar
1
4% Dec 11 3312 Feb 1
1412 Dec 4812 Feb
18112 Dec 171 265 Feb I8 191
Jan 290 Sept
83 Feb 31 9212 Oct 14
82 No
8714 May
42% Dec 171 97 Feb 21
75% No
118% July
312 Dec 26 1978 Apr 9
4% Dec 43 Feb
53 Dec 17 8658 Mar 3
7212 Ma 110 Aug
413 Dec 3
24125lar 3
17 Dec 35 July
7612 Dee 31 16411 Apr 10 140 Nov 260 Aug
90 Dec 3 101 May I7
94 Nov 101 Mar
9112 0-r 9 99 Apr 15
90 Nov 97 Jan
48,2 Dec 161 12134 Feb 1 1
9() Nov 14834 JR111
73 Dec17 1411g Feb
10113 May 14731 Sept
4418 Mar 11 53 Feb 2
41% Apr 50 Sept
46 Dec 13 57 Feb
43% May 60% Sept
3934 Der 29 1187s Mar 27 101 Nov 13334 Aug
6212 Dec 17 101 Apr 2
87 Nov 9612 Feb
1712 Dec 30 7634May 16
1534 Feb
50 Nov
35 Dee 16 94',July 24
Oct 94 Apt
84
% Dee 15 1218 Feb 1 5
918 Dee 2134 Mar
13 Dec 27 28 Feb
1614 June 4132 Oct
88 Dec 17 127 Feb 1 7
)
1
105 Nov 15713 Sept
4612 Dee 29 1363* Jan 1 31 109 Nov 111212 Sept
76 Dec 21 101 Mar:0
93 June 100 Dee
85 Dec IS 145 Apr i 4 115 Nov 181 May
612 Nov
39 Feb
4 Dec 23 1512 Marl0
2014 Dec 58% Jan
718 Om 25 3112 Jan:9
75 Dec 100 Jan
4434 Dec 31 79 Feb
200 Nov 29732 Aug
16612 Dec 17 24234 Marl
80 Nov 8513 Sept
8214 Jan 17 88381/ePt 20
40 Nov 81% Jan
114 Dec 17 6738 Apr 1
39 Dec 16 8914 Apr 8
82 Nov 10472 Jan
10
Oct 54 Feb
10 Dec 17 36 Mar 29
14% Nov 5312 Feb
1114 Dec 16 38 Mar 28
Oct 41% Mar
712 Dee 29 3012 Marl9
15
23 Dec 20 531 Marl9
3712 Nov 6734 July
Industrial BC Miscellaneous
•9
10
8 Dec 27 4218 Apr 9
1,000 Abitibi Power & Paper _No par
41
41
1,000 Preferred
100 36 Nov 17 8612 Apr 8
2812 2812 1,020 Abraham dc Straus____No par 21 Dec 29 66 Apr 2 1
•
102
100 102 Nov24 11012 Aug 25
Preferred
1618 1738 30,614 Adams Ewen
No par 1413 Dec 17 3732 Marl
"8013 8313
130 Preferred
100 80,8 Dec 29 94 Sept 1
"23
No par 21 Oct 20 32 Mar 2
25
100 Adams Millie
*2314 25
300 Addressograph Int Corp No par 21 Dee 30 34114June 1 3
314 312 10.900 Advance Rumely
213 Dec 30 23,4 Jan 2 4
100
•12
14
2.300 Preferred
100 10 Dec 20 4114 Jan 2
•Bld and asked prim; uo sales on this day. c 60% stock dividend paid. z Ex-dividend. y Ex-rights. a Ex-dividend and ex-r(ght..
8
37,2
*2018
•____
15
8213
*2214
25
212
*912
8
818
3712 39
3478 21
102 •____
1512 1478
8213 80%
*2214
25
25
*24
212
278
14
1018
8
8
39
39
23
21
102 •_-_
1538
1518
82,8 80,8
*2214
23
24
26
2,8
212
101 1
10%
8
•938 938
4038
3914 *39
25
25
25
102 •__-- 102
1638 16,8 1678
80% 8278 827
23
23
23
244 *23
2412
212
212 24
11
11
11
PER SHARE
Range for Precious
Year 1929.
-1
3414
89
43
10012
20
84
19
Dec 57% Aug
Nov 88% Jan
Dec 15912 Jan
Nov 11213 Oct
Nov
34 Nov
Nov 96
IAD
Nov 35% jag)
7
Oct lG47 May
119 IlaY
la octl
New York Stock Record-Continued-Page 2
90
For sales during the week of stocks not recorded here, see second page preceding.
HIGH AND LOW SALE PRICES-PER SHARE. NOT PER CENT
Saturday
Dec. 27.
Monday
Dec. 29.
Tuesday
Dec. 30.
Wednesday
Dec. 31.
Thursday
Jan. 1.
Friday
Jan. 2.
Sales
for
the
Week
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range for Year 1930.
On oasis of 100-share tots.
Lowest.
Highest.
share $ per share
$ per share $ per share $ per share $ per share $ per share $ per share Shares Indus. &Misceil.(Con.) Par 3 Per
14 Dee 16
138Mar 28
1
38 2,500 Ahumada Lead
*14
*14
38
14
14
14
14
38
'8
No par 8712 Dec 17 15618June 2
9518 10138 21.200 Air Reduction 1ne
9912
94
9512 9412 9634 96,4 9938 597
64
Dec
29
36
Mar 24
ApplianceNo
par
Elea
2,600
Air-Way
63
4
*612
6,2 612
7
758
638 7
614 634
212 Jan 9
14
38 3,920 Ajax Rubber Inc
14 Dec 11
No par
14
38
14
38
14
33
14
38
coune 18
Jan 7
918
__10
Juneau
Gold
Min_
19,100
Alaska
712
7
672 7,4
678 678
638 718
612 678
8 Dec 16 1511 Feb 17
No par
500 A P W Paper Co
7
•6
*612 7
s612 7
638 638
612 612
584 Dee 16 354 Mar 31
No par
784 814 64,888'Allegheny Corp
734 8,
8
612 812
634 7
638 658
5,125' Prof A with $30 warr____100 3614 Dee 30 10712 Feb 11
3934 42
40
38
3978 40
3818 3834 3614 42
39'14 4012 1,275! Pref A witb 340 warr____100 3712 Dec 30 9934 Apr 11
40
40
*35
40
3834 3834 3712 41
I Prof A without warr_ _ _ _100 8474 Oct 7 9614 Feb 24
44
*38
*3812 42
41
*36
*35
40
*35
39
17018 17714 45.350'Allied Chemical & Dye-No Par 17014 Dec 17 343 Apr 17
17412 18234
17678 178
17658 17913 180 184
100 12034 Dec 15 12614 Apr 1
500: Preferred
*120 121
12034 12034
*121 12112 121 121,4 *121 122
327s 3412 9,050I4Ills-Chalmers Mfg_ _ _ _No par 3114 Dec 17 68 Mar 11
3351,
32
3378 33
33
3312 32
33
par 11,2 Dee 17 4214 Mar 27
No
Cement
3,100:51pha
Portland
*15
18
16
15
15
1413 1518 1414 1534 515
1612 Dec 17 81IsJune 8
No pat
1712 18,z 7.600A merada corp
1712 18
18
1734 18
1738 1734 17
158 Dec 29 1088Mar 81
Chem_
_100
Amer
Agricultural
1,000
13
4
2
158
134 134
158
*114 172
113
134
100 174 Dec 29 8958 Aug 16
1.300; Preferred
19
19
18
18
1712 1734 1758 175s 1734 18
10 454Nov 11 9788Mar 27
3,110'Amerioan Bank Note
*5312 60
5312 55
56
53
5312 5512 53
53
' Preferred
so 6014 Nov 11 664 Jan 31
*6114 6314
*6114 6314 *6114 63,4 *6114 6314 *6114 6314
218 Dec 17 12 Jan 16
400 American Beet Sugar-No Par
*214 318
212 212 *214 234
253 212 *214 312
Amer Bosch Magneto -No Par 1514 Dec 17 547s Feb 14
30
Dee 30 5458Mar 20
-5:1
IiI;
par
AmBrakeShoe
&
Fdy_No
"3:100
"3113
131
-5572 3O4 -55 4 1634 -545118 July 17 128 Feb 13
8100
Preferred
*119 1241
'
*119 12014 *119 120,
4 119 12438 *119 12418
Oct 31 2134 Apr 25
81s 878 8,200 Amer Brown Boyer!El_No par
814
818
812
778 814
8
734 9
100 38 Oct 31 84 Sept 18
10 Pnsferred
47
47
*8614 4712 *4614 50
*4614 50
*4614 48
25 10458 Dec 17 15613 Apr 16
10814 11378 245,800 Amet lean Can
110 11234
10812 10934 1077s 11034 10878 113
100 14014 Jan 27 15072 Oct 2
300 Pre:erred
147 147
10146 14812 14714 148 •147 14812 147 148
2818 8.525 American Car & Fdy_ _No par 2416 Dec 30 8211 Feb 6
27
2712
2418 2.512 25
2518 2512 2414 25
100 70 Dee 29 116 Jan 4
1.903 Preferred
*7112 78
70
7112 7114 7114
70
70,4 7112 70
3212 1,900 American Chain
No par 27 Dee 17 6978 Apr 10
*30
30
2978 30
30
30
3012 30
30
No par 35 Dee 17 5114 Apr 3
3814 3914 2,786 American Chicle
3718 3714 3812 3914 3912
38
3812 37
9 Nov 19 33 Jan 16
918 978 15.300 Am Comm'l Alcoltol
No par
9
938
914 10
9
912
9
9,4
8 Nov 11 3078Mar 31
Tiling_No
par
Encaustic
11
11
700
Amer
10
10
10
1078 1018 1018 *10
11
19
20
2,040 Amer European Eleo's No par 17 Dec 30 591sMar 31
1712 1814 18,2
1858 1858 18
1812 17
2678 3014 72,270 Amer & For'n Power_ No Par 25 Dec 17 1014 Apr 16
2612 27
2578 2714 2638 2758 2712 2918
400 Preferred
No par 84 Dec 30 11112 Apr 29
*82
90
85
8634 85
88
88
080
8712 84
1,000 26 preferred
No pat 6312 Dec 17 10034,June 11
69
69
*6512 67
6612 6612 •66
6734 6514 67
No par 73 Dee 33 101 May 17
900 $6 preferred
*74
75
73
73
73
73
75
74
75
511 Dec 15 3358 Mar 19
10
818 4,000 Am Hawaiian El S Co
7
7
7
7
6
534 6
558 6
14 Dee 17
7 Apr 10
178 178 4.300 American Hide & Leather_100
118 112
158
118
1524
158
*158 312
812 Dec 30 3478 Apr 11
100
Preferred
12
12
1,400
14
•1218
812 938
*10
1212
9
10,4
4778 4811 3.700 Amer Home Products__No par 4613 Dec 17 6934 Mar 20
4712 4712 4718 4758 4712 4734 4771, 4814
2412 Dec 26 4178 Mar 27
No pa
27
2712 20.600 American Ice
2412 2434 25
2534 2478 2514 2,473 27
16 Dee 17 5588 Apr 2
1834 2053 32,800 Amer Internal Corp_ No pa
1812 1914 1878 1934
1734 1858 1738 19
12 Dec 23
4 Apr 2
.58
a
34
52
12
12
885 Amer La Franoe & Foara1te_10
34
52
34
34
*6
7 Dee 30 35 Feb 14
812 1,210 Preferred
100
.5
812
812
7
7
812 S_
105
Jan 6
1814
Dec
30
American
Locomotive_No
pa
203
8
2118
12,950
21
20
1934 2018 19
1934 1814 1934
100 6814 Dec 23 1181211ar 1
950 Preferred
7118
*70
70
70
71
7012 7012 70
7012 71
294 Dec 17 45 Sept 6
32
4.400 Amer Mach & Fdy new _No pa
31
3112 3112 3114 3114 3114 3234 3012 31
3 Dec 15 1412July 3
312 312
314
378
378 54 4.000 Amer Mach & Metals_ _No pa
318 378
318 312
134 Dec 15 5112 Feb 7
1734 18
4,050 Amer Metal Co Ltd___No pa
17
1778
1512 17
16
16
16
17
100 80 Dec 29 116 Feb 18
400 Preferred (8%)
*75
90
80
80
•75
80
*85
90
80
85
20 Dec 27 95 Mar 27
250 Amer Nat Gas pref___ _No pa
2478 25
23
2484 2434 23
20
20
25
25
3618 Dre 16 11933 Apr 1
42,100 Am Power & LIght____No pa
49
45
4312 50
43
3814 39
3912 4033 40
Dec 17 107 Mar 24
90
1.100
Preferred
No
pa
9478 9512
94
94
92
9478 *91
92
92
92
744 Dee 30 877s Sept 19
No pa
400 Preferred A
•7418 82
7612
7412 7412 .74
75
75
75
75
7414 Dee 29 894Sept 27
No pa
800 Pref A stamped
8014
•78
Stock
7514 7514
*7534 8014 7434 7534 7434 75
15 Dec 29 3914 Apr 7
1512 1612 63,690 Am Rad & Stand San'y_No pa
1513 1534 1614
1534 1614 15
1573 15
518 Dec 17 37 Mar 25
612 612 Exchange
714
714 1,250 American Republics_ _No pas
614 612
638 658
6321 638
De6 27 10078 Feb 17
28
Rolling
Mill
25
4
19.086
American
30
313
30
28
2912 2839 2914 2834 30
3034
5212Juue 18 6788 Apr 28
3,100 American Safety Roxor_No pa
58
57
55
5512 5638 55
56
561s 5614 5812 Closed
5 Dec 4 2612 Feb 18
612 612
•612 712
300 Amer Seating•t a
No pa
7
*6
7
7
6
6
838May 6
12 Deo 10
12
12 New Year's
12
52
12
52
34 4,200 Amer Ship & Comm_ _ _No par
34
kt
35 Dec 18 5412June 5
1,660 Amer Shipbuilding new _No pa
*41
42
38
42
3953 3938 3912 3912 3734 38
3712 Dee 29 794 Apr 2
4012 4213 46,645 Amer Smelting & Refg_No pa
Day.
42
3738 3838 3712 3834 38.2 4138 41
100 131 Dec 15' 141 Apr 8
Preferred
*115 13014
115 130
"117 130 *110 13014 *110 130
4_ _ _ _ 934
100 9318 Dee 31 10338 Aug 14
100 6% cum 26 Wel
9378 9378
9478 *____ 9412
10Snuf 25 3578 Dec 29 4378 Jan 27
37
38
3,050 isAmericanreferred
3614
*36
3634 3578 3612 36
3638 36
100.8 Jan 3 112 Sept 18
*102 104
*10112 104 *102 104 *102 104 *102 104
2 Dec 30 2212Mar 7
212 284 3,500 Amer Solvents& Chem _No par
234 234
2
238
214 212
212 212
534 oci 23 3314 Mar 5
No par
714 714 3,300 Preferred
*7
8
612 7
*7
10
614 714
52514 2574 5.450 Amer Steel Foundriee_No par 2312 Dec 17 5214 Mar 20
2478 2478 2418 2478 2438 2434 2511, 2578
50 Preferred
100 110 Dec 17 118 Feb 25
*110 11078
"110 11014 11014 11014 11018 11018 110 110
No pas 3613 Dec 26 5512 Apr 16
*37
39
1.550 American Stores
38
371s 37
3714 3714 37
3714 37
100 3914 Dec 27 6978 Mar 26
45
5.000 Amer Sugar Refining
*41
4034 4114 4134
40
3914 40
40,
8 40
100 95 Nov 10 110 Apr 24
96
400 Preferred
96
96
96
•9314 98
98
98
*98 102
5 Nov 10 2634 Feb 10
Tobacco_No
par
1
4,600Am
Sumatra
812
812
85
8
612
738 833
714 7 4
71s 714
*15
1634
90 Amer Teleg & Cable Co__ _100 15 Dec 29 2712 Feb 8
15
15
15
*15
17
15
1514 15
1703
8 Dec 17 27414 Apr 17
&
Teleg
100
181
78.779
Amer
Telep
17614
17414 1777s 17758 179
17334 17538 17314 176
'
3
American Tobacco cam
-50 197 Jan 8 26414May 23
25 984 Dec 16 127 Sept 10
la- 1-0.
6 - --3-566 New w 1
ia" 10414 10413 105'z
10134 1-62- 10139 103
50 197 Jan 8 26912May 23
Common class B
25 9914 Dec 16 13078 Sept 10
HA 168371 -2-8:925 class a new w 1
10239 104
103 1-64-78 103 106 - 10514 10714
*124 12539
200 Preferred
100 120 Feb 3 129 Sept 25
*12412 12518 12512 1251g *125 12612 •124 12512
*95 102 I 1,100 American Type Founders_ _100 95 Nov 17 14114 Apr 1
95 "95 105
95
99
99
100 100
100 10312 Nov 7 11484July 24
106 106
80 Preferred
*10514 10512 *10514 10512 105 10512 10578 10578
55
5934 27.800 Am Water Wks & Else-No Par 4758 Dec 17 1244 Apr 23
5311 5134 55,4 5418 60
51
5118 52
98 Nov 25 10813 Oct 6
100 tat preferred
*100 105 I
*100 10538 *100 10558 100 100 *100 105
54 Nov 11 2014 Feb 17
678 7
100
2,900 American Woolen
634 678
61s 733
612 612
6,8 633
21
2114 8,500 Preferred
100 1558 Nov 11 4412 Feb 18
19
1914 1814 19,8 1814 2212 2118 23
188 Dec 29
9 May 29
*138 178 2,100 Am Writing Paper etfe_No par
134
134
138
158
138 112
112 112
*1112 15
700 Preferred eertificates
100 1018 Dec 23 4484 Feb 27
1112 1112
13
13
17
•11
17 .11
358 Dec 17 1773 Feb 8
412 412 3.500 Amer Zinc Lead & Braelt__25
478 478
438 412
414 438
414 414
*28
30
1.300 Preferred
25 2634 Dec 29 7978 Jan 20
2712 2712
*2812 30
2712 2734 2634 28
2934 32 235,113 anaemia& Copper Mining_50 25 Dec 17 814 Apr 2
2934 3034
2878 30
2712 2858 28
29
19 Dec 27 5314 Feb 6
2,200
Cable
No
par
*22
24
Wire
&
Anaconda
22
2112
201s
2114
19
2012 2012 2012
par 24 Dec 29 514 Apr 21
27
27
3,700 Anchor cap
2458 2514 2658
•2572 2678 24
2512 24
1058 Dec 17 3714 Apr 2
1518 3.600 Andes Copper MiningA:o
N par
14
1234 1312 1334 1334
1238 1258 13
12
*1518 1512 6,350 Archer Daniels Midl'cl_No par 1318 Dec 17 2914 Apr 5
1318 1358 1312 1378 1358 1412 1438 1558
1,100 Armour & Co (Del) prat _100 60 Deo 30 8278June 5
*6214 65
61
6014 60
6312 6114 611z 00
62
818 Mar 26
234 Nov 11
314 378 25.300 Armour of Illinois class A_ __25
234 27s
3
232 3
314
234 3
438 Mar 28
112 Nov 10
25
2
2
15,400, Class B
138 178
178
134 178
178
134 2
100 2514 Nov 10 85 June 4
33
3512 6,400, Preferred
33
32
34
31
3434 3434 3212 34
312
Dec
16
133
4 Apr 21
Constable
Corp_No
par
4
5,200
Arnold
35
8
35s 334
338 334
358 358
358 378
434 Dec 17 2018 Apr 28
No par
"512 534 1,000 Artioom Corp
5
534
5
5
534
*5
534 *5
20
Nov
3
4618
Mar 10
Apparel
Ind
_No
vat'
24
1,100
Associated
*2213
2112
24
23
237
8
23
23
2312
1323
2
a5
r 19 Dee 17 5012 Apr 15
No par
26
212 26
3314
2 12,050 Assoc Dry Goods
2018 2178 2134 2278
1934 2038 2018 21
30 Dec 22 51 June 2
2612
Associated 011
*24
30 •____ 30 "2612 30
*24
30
No par 33 Dee 26 803s Jan 30
400 Atl0& W I B S Line
3578 36
*33
38
34
34
*3212 36
*33
35
100 48 Dec 23 654 Feb 26
I Preferred
53
*50
53
63 •50
*50
*50
53
52
*50
Refining
Atlantic
25 164 Dec 17 5188 Apr 7
41,959
1
2018
18
167
11
177
8
1712
18
4
1712
1714 1778 17
Powder
par 42 Dec 16 10484 Mar 21
4712
*4513
45
*42
45
42
*42
43
42
42
8001Atia5
10, Preferred
No 100 97 Nov 10 106 Mar 22
98
*97
98
98
98
*97
*97
98
"97
98
No par
734 Dee 31 37 May 15
878 84 4,1001Atla5 Stores Corp
812
734 734
778
9
838 834
9
No par
100'Atlas Tack
21s Oct 10
812Mar 5
4
•3
4
*3
4
*3
3
*3
4
3
57,400 Auburn Automobile_ No par 604 Nov 5 26334 Apr 1
10214 112
9218 96
9512 10012 9912 10412 10614 11212
Nichols
par
Dec
Austin
No
15
8
8
7 May 14
*13
4
2
2
4
.13
*134 2
*134 2
*134 2
1,600 Autccalee Corp
No par
78 Dec 30 104 Mar 3
1
1
72 1
*34 1
*114
112
1
138
12 Dec 30 25 Mar 4
700 Preferred
*118 413
12 112
1
1
258 258
2
218
Sal Rasor A_No par 37 Jan 2 8184July 31
---- -- -- -- ___ AutoatrapCorp
---- -No par
3l
218 Dee 15
978 Apr 15
3
314 29:300 Aviation
3
27
278 318
3
278 3
20,120
Baldwin
Loco
Works_No par 1938June 17 88 Feb 18
203
4
223
s
2114
2218
2012 21
2018 2114 2012 2112
100 84 Dec 27 116 Jan 21
8812 8812
460 Preferred
8834 8834
89
84
8612 85
8712 88
40 Bamberger(L)& Co pref_100 103 Dec 29 1104 Feb 4
*103 105
9
*10212 106
103 105 *10310412'103
9,8 49 105
10
1,490 Barker Brothers
No par
10
8 Nov 28 2034Mar 5
953
*9
10
8111 918
130 Preferred
100 58 Dec 30 91 Mar 31
*58
70
70
*59
5812 *58
70
59
58
59
1114 121s 27,250 Barnadall Corp class A
25
858 Dec 17 84 Mar 28
1012 1138 1038 1138 1038 1138 1034 1114
130 Bayuk Cigare Ina
No par 23 Nov 7 68 Feb 4
*2414 30
25
25
3012 .2414 30
*25
3012 •26
10 First preferred
100 89 Dec 9 101 July 24
8712 8712
*8712 91
*8712 91
*8712 91
*8712 91
Creamery
Beatrice
6612
1,700
65
50 62 Dec 16 92 Apr 14
64
65
6478
*64
6378 6418 63
65
Preferred
*106 108
100 10114 Mar 20 10914Sept 22
*105 108 *105 108 *105 108 *105 107,4
4,095 Beech-Nut Packing Co_--_20 4884 Nov 10 704 Jan 28
•5014 53
*4812 4934 4812 4812 48,4 4834 *49
50
64 Jan 17
218 Dee 31
214 214 9,600 Belding Hem'way C0 Nopar
212 212
212 278
214 278,
218 2,8
300 Belgian Nat Rye part pref___
•7612 78
7814 Dec 13 854 Mar 19
*7612 77,8 7718 7718 77
7718 *77
7712
y Ex-rights3
•Bid and asked prices; no sales on this days
z Ex-divldendi
PER SH ARE
Range for Previous
Year 1929.
Lowest.
Highest,
per share
8 per share
Is Dec
478 Feb
77 Nov 22388 Oct
181s Dec 4873May
1 Dec 1114 Jan
414 Nov
1014 Jan
5 Oct 25 Jan
17 Nov 5615 Sept
90 Nov
1185* July
197 Nov
11812 Nov
3518 Nov
23 Nov
1712 Oct
4 Oct
18 Nov
65 Nov
57 July
54 Dec
27 Nov
404 Nov
113 Nov
44 Oct
4934 Jan
86 Nov
1331s Nov
75 Nov
1104 Oct
85458 Aug
125 Apr
754 Sept
23 Nov
4258 Jan
2353 Jan
7384 Jan
157 Oct
6584 June
204 Jan
7611 Sept
63 Feb
1261s Mar
3434 June
104 June
18412 Aug
145 Dec
1064 Jan
120
Jan
27 Nov
20 Oct
1814 Nov
23 Nov
50 Oct
10112 Nov
8614 Oct
94 Dec
1713 Dec
312 Dec
234 Nov
40 Nov
29 Oct
2914 Nov
213 Oct
274 Nov
90 Nov
1114 Nov
Sept
55 May
4734 Feb
9812 Sept
13914 Sept
10811 Feb
103 Feb
100 Feb
42 Apr
10 Jan
524 Aug
85/
1
4 Jan
534 Aug
9684 Sent
878 Jan
75 Feb
186 July
120 Dec
108 Nov
58 Nov
6414 Nov
9214 Oct
70 May
7278 Nov
28 Oct
124 Nov
60 Nov
44 Nov
17 Dec
38 Oct
Feb
136 Feb
984 Jan
17534 Sept
105 Feb
80 Feb
844 Feb
554 Sept
8414 Jan
14458 Sept
74/
1
4 Jan
6112 Mar
7 Feb
_-
63 Nov 18053 BepS
12318 Nov 188 Jan
88
98
Oct 49
Nov 112
3558 Oct
110 June
40 Oct
56 Nov
99 Nov
18 Nov
17 Jan
1931a Jan
160 Mar
160
Kt;
Jan
797k Feb
114 Mar
85 Apr
9414 Jan
111 Feb
60 Jan
8278 Feb
81014 Sept
2321s Oat
Oct 235
Oct
11458 Nov 1214 -Jet)
115 Nov 181 Sept
103 Nov 112 Apr
50 Nov 199 Sept
97 Jan 104 Jan
54 Oct 2778 Jan
154 Nov 5888 Jan
4 Nov 184 July
28 Nov 46 Mar
7 Nov 4914 Mar
4934 Nov 1114 Mar
674 Dec 140 Mar
46 Dec 8934 Sept
25 Oct 80 Oct
30 Oct 684 Mar
184 Nov 4912 Mar
75 Oct 95 Jan
51s Oct 1811 Jan
214 Nov
1014 Jan
57 Nov 86
JAY
614 Dec 4078 Jar.
1658 Nov 80 FeL
84 Nov 5884 June
25 Nov 7034 Jan
3412 Dec 4714 Apr
831s Feb 8612 Oct
4584 Feb 8278 Sept
80 Oct7778 July
67 Nov 140 Sept
90 Nov 1064 Jan
6
120
Nov -His jai;
Oct 514 Sept
4 Dec 8513 Aug
13 Dec 4578 Aug
84 Nov 50 Jan
5412 Dec 20 Aug
15 Oct668s Aug
1094 Nov 125 Apr
934 Nov 1104 Feb
16 Dec 8384 Jan
Jan
70 Nov 97
20 Oct4912 May
55 Nov 11834 Jan
Oct10684 Jan
95
69 Dec 131
Oct
100 Dec 10
:
16
7 Aug
45 Nov 101
Jan
44 Dec
75 Nov
341s Jan
New York Stock Record-Continued-Page 3
91
For sales during the ()conk of storks not recorded here, nee third page preceding.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Sales
for
the
Week
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range for Year 1930.
On basis of 100-share tots.
PER SHARE
Range for Previous
Year 1929.
Saturday
Friday
Monday
Tuesday 1Wednesday Thursday
Lowest.
Highest.
Lowest.
Highest.
Dec.
Jan. 2.
Jan. I.
Dec. 29.
Dec. 31.
Dec. 30.
_ 27.
0 Per share $ per share $ per share $ Per share $ per share $ per share Shares Indus.& Miscell.(Con.) Par I per share $ per share $ per share S per *hors
25 Nov 1041* July
1514 16
No par 141 Nov 10 5738 Apr 7
1678 1812 39,922 Bendix Aviation
1538 16
1512 168 1612 178
25 Nov 12312 Sept
3114 32
No par 30as Dec17 5614 Apr 25
7,500 Best & Co
33
34
3114 3214 3118 34181 333* 3373
7814 Nov 104% Aug
4734 485
4912 528 150,350,Bethlehem Steel Corp____100 473 Dec 29 11014 Apr I
4738 4834 4814 4912 50
5234
100 11234 Dec 17 134 Mar 22 118%May 128 Sept
115 11518 115 115
4501 Preferred(7%)
*11412 11514
11434 11434 115 115
23
2418 1,000 Blaw-Knox Co
23
No par 23 ()et 23 411 Apr 24
24
*23
24
2314 24
24
23
221* -Dec 614 -Ain'
•1612 20
30,Bloomingdale Beothers_No par 1612 Dec 23 2974 Apr 24
*1612 20
*1612 20
1634 1634 *1612 20
Jan
100 95 Dec 18 104 Oct 10 100 Oct 111
200 Preferred
*90
96
*90
96.
*90 100
96
95% 95 8 *90
Jon
7014 Dec 118
100 74 Feb 7 90 Apr 7
*6812 75
1Blumenthal & Co pref
*7212 85
*7212 85
*7212 85
.7212 85
1863
4
Max
Nov
Apr
4
Nov
37
69
7
153
12
par
2018 2018 2018 2012 2038 22
_No
Bohn
Aluminum
&
Br_
5,100
204 22%
22
2238
Oct 8911 Jon
70
No par 5911 Oct 24 78 Apr 5
*54
100,Bon And class A
61
*55
6012
*54
61
*54
60
60
61
3 Dec 1158 Jan
5 Mar 26
1 Oct 31
No par
*114
112
500;Booth Fisheries
138 138
112 112
114
114 *114
113
18 Dee 634 Jan
51
514 Deo 10 8314 Jan 8
100
7
7
6,300 1st preferred
10
514
•6
538 512 *6
10
53 Oct 10012 July
25 601s Jan 8 9038May 29
6612 68
28,0001Borden Co
6814 70
6734 69
6614 6912 668 693*
26 Nov 143% May
10 15 Nov 10 5012Mar 27
1812 19
204 22% 21,400.Borg-Warner Corp
1812 1914 1878 2078 204 2112
6 Mar 27
214 Dec 15% Feb
14 Dec 15
114
114
114
1,800 Botany Cons Mills class A 50
114
•118 3
118
114
118 114
812 Nov 8318 Jan
1658 1714
1678 1712 1714 1718 1714 173*
1718 1814 46,600 Briggs Manufacturing_No par 1218 Oct 10 2538July 23
1w Dec 4312 July
17
3512
Apr
4
1514
Nov
10
par
153* 153* 1614 1614 16
No
Stratton
Briggs
&
400
*1512 20
*1512 16
16
14 Nov 7374 Jan
13* Dee 26 2214May 19
*2
2
2
2343,100,11rockway Mot Truck No par
238
2
17
1%
18 2
7114 Dec 145 Jar
*1318 1312 13
100 13 Dee 15 85 Apr 24
1314 13
190 Preferred 7%
*13
28
1314 *13
28
1 Dec 16 17814Mar 8
99 Nov 24812 Aug
10114 10114 10034 10112 10038 10234 10314 10314
103 10512 2,800113rooklyn Union Gaa___No par 98,
Oct 5118 Sept
*3512 36
341
No par 3384 Nov 11 42 Feb 18
*3512 36
100.Brown Shoe Co
35
*35
35
3512 *3512 36
10
1018 10
161* Nov 5514 Jan
1018 10
1018 1018 2,500.11runs-Ba1ke-Collendar_No par 10 Dec 15 3058Mat 31
10
10
10
Oct 4234 Jar
Dec17
1318 1314 1212 1314 13
14
817sMar
24
1118
10
Co
5,900,Buayrus-Erie
1314 1412 1412
14% 1512
2312 2312 2278 2314 2258 2312 2418 2612
2612 Oct 50 Pet
10 21' Dec17 48 Mar 25
2612 5,300 Preferred
*26
011034 115 *11034 115
100 107% Jan 3 117 &DU1 10734 Dec 117 Am
10 Preferred (7)
11034 11034.111034 115
•11034 115
81 Dec 2278 Oct
4
4
3 Dec 30 1634 Apr 15
4
4
No par
7,950'Budd (E 0) Mfg
3
5
314 4
378
4
9
1468 Feb 6
6% Oct 31
9
744 Dec 1212 Dec
9
No par
9
2,900 Budd Wheel
9
9
8% 9
834 9
1058 1038 1018 1034 1058 11
211* Nov 84 Dec
8Is Dec17 43 Mar 81
No par
1114 1158 10,000 Bulova Wand)
107 1112
97 Dee 17 74 Apr 2
1112 1112 *1112 1158 1114 1212 12
25 Nov 548 5013
No par
1134 1312 3,000 Bullard Co
1214
Jar
*3234 36
2512 Dec 15 11018 Apr 2
88 Nov 127
35
300 Burns Bros new olA oom No pa
38
35
•34
*34
35
35
36
Jac
*4
5
85
3
Dec
12
412 43* *4
2238500e 39
Apr
2
No
par
New
Naas
B
oom_
600
418
*5
10
4
418
*7418 84
100 7134 Dec 16 100 Feb 19
20, Preferred
88 Nov 10514 Jar
84
*74
84
*75
*75
84
77
77
2014 21
2014 21
29 Oct 8298* .Jai
2418 15,200Burroughs Add Maolo_No par 1838 Dec17 517sMar 1
23
2112 2238 2274 2418
•23
2334 2312 2312 2312 2418 24
3114 Nov 894 Fel
2,068113ush Terminal
No par 2112 Dec17 4812Mar 5
*2212 24
2434
10118 10118 *101 105
9118 Nov 1101* Mal
100 97 Nov 11 110 Mar lb
100! Debenture
10034 10034
102 10434 *101 105
10814 10814 10814 10814 *10814 109 *10814 109
100 108 Oct 21 118 Apr 7 10544 Nov 11812 Fel
201Bush Term Bldg' pref
*10814 109
45 Dec 121* Sal
78
78
*1
118
*78 114
7,1
78
514 Jan 6
•1
114 1,100;Butte 5, Superior Mining _1
% Deo 24
112 112
13*
2 Oct91 Jai
414 Feb 20
114 Dec 15
6
900,Butte Copper & Zino
134 134
112
134 124 *111 181
•1378 16
Sal
1412 1434 15
1718 Dec 41
100 10 Nov 14 293a Feb 24
1434 1434 1.300 Butterick Co
1512 16
16
3678 37
3758 408 19,800 Byers & Co(AM)
50 Nov 19274 Sal
No par 3318 Dee 16 11234 Apr 28
36
3778 3712 39
3812 4014
•- _ 103 *_ _ 103 •____ 103 •____ 103
Preferred
100 106 Dec 9 114 Jan 25 105 Apr1211* Sal
*____ 103
42Tz 43
No par 4114 Dec 31 7712Mar 5
43
6,5001California Packing
43
43
44
6104 Oct84% Aul
4112 42
4114 4212
.58
44
4 Jai
21* Feb 3
34 Dec 201
10
600iCallahtua Zino-Lead
1 Oct
*38
*58
34
18
34
34
58
34
3314 3314 33% 34
2.900:Calumet & Arizona Mining_20 2858 Dec 16 8974 Jan 9
3712 38
33% 3414 3458 35
784 Nov 1361* Atm
87 10,0001 Calumet & Hecda
8
734 Dee 29 8338 Jae 7
25
734 8
814
25 Oct8178 Ma
8
8
814
7% 814
*1014 11
1134 1212 2.400 Campbell W & C Fdry_No par 10 Nov 8 30 Mar 25
1012 1114 1112 1258 1138 1138
19 Dec 4911 Au!
32
3134 3212 3114 3312 34
32
z3334 3412 11,000 - Canada Dry Ginger Ale No par 3012 Dec17 71534Mar 10
45 Oct 9834 Jul;
35
17
17
No par 1618 Dec 30 8414 Mar 18
1734 1734 1,700 Cannon Mills
17
27 Dec ON Sep
1712 1618 17
17
17
814 814
712 Dec 29 2834 Apr 4
7% 8
17 Nov 654 Oc
1.890:Capital Adminia el A No par
818 838
*814 9
838 834
*2913 3014 3014 3014 30
39 Nov 8978 00
50 2912 Deo 26 42 Mar 19
200; Preferred A
•3012 32
30
*3012 3112
8313 8534 8414 8734 87
8614 9458 116.9501Case Thresh Machine otfs_100 83% Dee 2 3825i Apr 23 130 Nov 467 Sep
89
90
9213
*11414 116 *11414 117
401 Preferred certifleates___100 113 Dec 30 182 Mar 25 118 Nov 1234 Be
•___ 113
113 11414 *____ 113
2538 2578 2478. 253* 2414 26
604 Deo 61 Do
2678 2812 12,500;Caterp8l1ar Traotor____No par 22 Dec17 795 Apr 28
2511 27
*2
112 Dec 11 1374 Jan 11
3
814 Dee 4214 Fel
100,Cavannagh-Dobbs InO_No par
312
21
*2
218 *2
3
*2
3%
24
24
*24
100 24 Dec 9 75 Jan 18
25
53 Dec 1051* Ma
530 Preferred
25
24
24
25
2414 *24
1112 1112 11
918 Dec17 20% Oct 25
*1134 124 1,600 Celanese Corp of Am__No par
13
13
11
1034 11
5
No par
5
81 Oct Ms -Fel
3 Dec 16 80 Mar 10
478 47
Stock
512 578
512 534 3,100,Celotex Corp
48 512
01912 22
31
19
Oct488* Ja,
700-Central Aguirre Asso_No par 18 Dec 17 3012May 31
20
19
20
18
1914 *1912 22
3 Oct 201* Sal
814Mar 27
214 Dee 31
25g 23* *213 334
300 Century Ribbon Mills_No per
*258 24
214 212 Exchange
*258 384
57
57
5014 Dee 82 Ja:
100 51 Feb 27 6978July 16
5614 5634 *5614 57
150 Preferred
5814
*5112 57
54
2238 23
2212 2358 2212 2312 23
521* Nov120 Ma
24
18.9001Cerro de Paseo Copper_No par 21 Dee 15 6534 Jan 6
23
25
Closed
2
2 Dec 17 15% Feb 6
2
2
2
2
1078 Dec 32 Jul
238
214 214 4,100-Certain-Teed Produota_No par
2
2
*3514 3534 3514 3558 33
No par 3278 Dec 31 49 Feb 4
89% Dee 6258 Jtv
2,203,City lee & Fuel
3113 3278 36 New Year's •3234 351
*80
81
100 79 Oct 23 9858 Feb 11
80
96 Sept 1051., Ja
390 Preferred
80 I
80
80
80
808 80
80
*1858 19
,Sep
No par 1438 Dec17677s Mar 27
Day.
1718 1814 1714 17% 1712 1834
18 Oct 801
183* 2014 10,3001Cheoker Cab
3813 3812 38
No par 3214 Dec 17 8312Mar 29
41381 23,2501Chesapeake Corti
41341
4218 Nov 112 Jul
40
3914 3S34 4112 40
*934 10
Ms
37
Nov
10
ChleagoPneumat
Tool_No
pa
*912 932
Mar 31
2178 Oct 474 Set
1014 1014' 1,200
9
10
10
10141
1 Nov 11 5574Mar 14
2418 2414 24
No par 22,
2414 2134 2434 2324 2324
2334 23341 1,500 Preferred
47 Nov 61 Set
*2012 23
20,2 2012 *2012 23
Ja
No par 1634 Feb 1 82 Mar 20
230 Meade Yellow Cab
2278 23
2178 Oct 88
*2012 23 I
; 1113 1112 1012 1112 11
10 1012 Dec 29 8212 Apr 10
2,400 Chickasha Cotton 011
11
25 Dec 50 Ja
•104 11
1018 104
. 23
2414 227 2314 2334 2418 2414 2514
No par 227 Dec 29 675s5une 6
4412 Nov 7578 Set
2512 2634 8,100 Childs Co
1534 158 15
No par 1418 Dec 16 43 Apr II
157
Ja
1518 16
28 Nov 135
1618 1658
1578 18 120,150 Chrysler Corp
I
318
211 Dec17 1314 Apr 25
278 318
No pa
234 3
714 Oct 27 Fe
278 3%1,
318 34. 5,400 City Stores new
F 16
1612 16
1512 Dee 30 4418 Apr 21
No pa
•16
__1
16
25 Nov 61% Of
900 Clark Eoul,,.,1.:nt
15.2 16
161% 16541
J1 23
23
23
23
2312 2312 2312 2312'
*25 -27
344 Dec 7234 Ja
1.000 Cluett Peabody & Co No par 21 Dee 11 60 Apr 5
1 *94 100
100 9114 Jan 2 105 Apr 8
*94
1 Preferred
1198
9913
9912'
196
9814 *96
0814 '
90% Dec 119 Ja
113758 139
1373 141
No pa 13314 Jan 8 1913sJune 4 101 Nov 15411 Au
13818 1423* 142 146 1
14218 14978 22,350.Coca Cola Co
50% 5034 50% 5012 5014 5014 50,
4812 Jan 8 63 Mar 21
No pa
5013 5012 1,700 ClassA
.14114 Oct 50 Fe
4 5058
4734 48
47
44 Dec17 6474May 2
46
47
4712 49 1 1,6001Colgate-Palmolive-Peet No pa
4714 *47
4712
15101 10414 *101 10414 *101 10414 *101 10414
8% preferred
100 97 Mar 18 104 Dee 11
*101 104141
1218 1218 12
1434
1234 13
1214 12
No par 12 Oct 18 3534 Feb 18
14
1412' 9,100 Collins & Alkman
10 Nov 7214 Me
•__- 75 •____ 70
73
73 •___- 78
73 Jan 3 92 May 24
•___ - 78 1
100 Preferred non-voting___10
85 Dec103% Fe
912 912 8,0001Colonial Beacon 011Co_No pa
912 934
934 934
912 972 *912 10
84 Dec15 2038 Apr 28
213g 2112 2012 21
21%225
, 5,800,Colorado Fuel & Iron
2034 2178 2112 22
100 1834 Dec 15 77 Apr 8
2758 Nov 781 151
7114 7314 7114 7278 7112 7612 7634 7812
7312 79 1 13,3001Columblan Carbon vie No par 6518 Dee 17 199 Mar 11 105 Nov 344 04
3212 33
3178 3234 32
343 3518
34
3312 3658 58,2431Columbia Gas & Eleo__No par 3058 Dec17 87 Apr 10 --_, _-- ---- --.
1110134 10212 10134 10114 101 10112 10114 10114
10078 10114. 1,400 Preferred
100 99 Nov 11 110 Apr 11
9918 Nov 109 Jul
77
814 812
778 814
734 73
7% 858
2 Jo
8121 71,9901Columbla Graphophone
714 Dec l3 87% Apr 28
1014 Nov 88,
1
17
18
1612 1712 1634 1712 1734 20
18% 20 1 13,960.Commercial Credit___No par 1512 Dec 17 4034 Apr 1
18 Nov 6238 Ja
3112 3113 3134 3214 3212 33
34
34
34
3478 1,7001 Class A
50 3012 Dec 12 4434 Apr 1
28 Nov 1511* Sei
•22
23
2412 2411
2012 23
21
21
.22
251
7001 Preferred 13
25 2012 Dee 18 28 Apr 29
201* Nov 28 Jul
*80
83
83
*80
83
83
83
83
*80
89
601 lat preferred(64%)____100 76% Jan 18 9512Sept 11
70 Oct 10558 Ja
24
24
23
24
2318 2414 24
2712
25
26% 8,610Com Invest Trust
No par 2134 Dec17 55 Mar 6
2818 Nov 79 0.
1
8424 8213 843
1182
43
83
83 *83
83
83
8 4
300. Cony preferred
No par 80 June 18 87 Mar 28
*3
31
3
*3
312
314
212 3
*212 312 1,2001 Warrants stamped
212 Dec17
6 Oct 6
144 15
1434 153* 14% 16
1458 151
1518 1618 39,500:Comm Solvents
No par 14 Dec17 38 Apr 11
204 Oct 53 0,
77
77
734 8
S's
734 8
812 132.808;CommonwIth & Bou'rn No par
8
814
712 Dec17 2014 Apr 7
10
Oct 2434 0,
9038 0038 8713 90'2 8934 9113 9118 0118
9113 937 1 4,300i 38 preferred seriee_ _No par 8612 Dec 17 10434June 6
32
32
*30
3112 32
37
*32
37
•33
37
No par 3112 Dec 30 57 Mar 27
500 Conde Nast Publica
U Nov 93 is
64 67
634 6%
558 678
634 7
678
714, 14,700 Congolemn-Nairn Ina_ _No par
558 Dec 30 1934 Mar 24
11
Oct 8534 .
15
21
21
22/4 223
2038 21
21
21
*2214 2378'
800 Congress Cigar
No par 1814 A*1 It 29 5874 Mar 11
43 Nov 9258 F(
•25
25
26
2512 25 .25112614 261
*22% 23781 2,058 Consolidated Cigar
40 Oct 9814 Je
No par 2438 Dec17 59% Mar 17
57
58
56
56
53
55
55
55
55
JE
610, Prior preferred
55 1
100 53 Dec 30 80 Mar 25
63 Nov 98
78 858
812 9
818 9
914 91
95s 1058. 8.000,Cocusol Film Indus
10 Oct 2534 Sel
778 Dec 27 273sMar 11
No par
1212 1312 135 14
1513 1454 157
14
1534 16 1 9.300 Preferred
151s Oct 8014 Al
No par 1212 Dec 26 2814 Jan 10
8014 8112 80
82
8014 83s 821284
8218 8614 112,400 Copse! Gas (N In
8014 Nov 1831, Sel
Nopar 7814 Dec17 13674 Apr 26
10214 10214 10214 103
10214 10234 10218 1021
102 10214, 2.300 Preferred
9312 Nov 10012 D.
No par 9911 Jan 28 10512Sept 26
14
14
14
14
14
38
14
38
83s .11
114 Dec
% Dec 16
par
2
Jan
27
No
5,100
3
8.
1
Consolidated
Textile_
14
73
718 714
718 73*
7
7
71
7
718' 4,425 Container Corp A vot No par
12 May 2312 JO
518 Dec17 2212 Feb 24
2% 218
218 278
214 218
214 27g
1118 24
234 2381 3,050 Clain B voting
314 Nov
20
812
Feb
2
Dec
16
No
par
1714 1712 163 177
17
1734 1712 1812
1734 1912 12,400 Continental Bak'd el A_No par 1634 Dec 29 5218 Feb 17
2514 Oct 90 Ju
214
2
2
2
2
2% 21
214
214
44 Oct 1514 Ju
2581 9,3001 Class B
2 Dee 26
7 Feb 17
Ns par
647g 62
64
85
65
on 833 647
79.2 Nov 100 Jul
*6512 68 1 1,900' Preferred
100 62 Dec 30 9474 Feb 17
4618 471
46
462
4614 4734 4712 4838
40,s Oct 92 Se!
47
495s 18,500 Continental Can Inc_ __No par 434Deo 17 7131 Mar 81
9% 101
1018 11
1012 1058
1038 11
2034 Nov 8314 D.
934 Dec 16 873 Apr 21
1012 104 4,900 Cont'l Diamond Flbre_No par
4112 4418 z41
4012 4114 405 421
42
41114 Nov 11014 Be!
41
4334 10,1871Coutinental Ins
10 3714 Dec17 775sMar 31
23
27g
234 3
258 274
23
3
. ..1(
618 Dec 285
19
Feb
814
3
318 10,020,Continental Motors--No par
5
212Nov
838 9'2
8
814 858
8
812
858
18 Nov 875 Al
734 Dec17 8012 Apr 24
No par
914 1014 68,470 Continental 011
93
858 958
812 10
834
812 9
264 Dec 4574 D.
812 Dec 27 4074 Apr 1
812 914, 59,8741Continental Shares
par
No
7114 7234 723* 77% 77
70
71
783
70 Nov 12634 0
7812 8012 213 300 Com Products Refining____25 65 Dec17 111% Apr 23
' 1
150 150
148% 14858
14912 14978 *14612 150
148 1483*
100 140 Feb 10 15114 Oct 16 137 Nov 14434
110- Preferred
712 734
718
734
713 9%
91
97
18 Dec 831, 5/
714 Dee29 33 Feb 3
9'8 10
No par
12,2551toty Inc
26
2612 2512 2618 2812 30
*2612 28
24 Nov 81 No
287g 29
No par 2511 Jan 6 3538Mar 20
2,200 -Cream of Wheat
*1514 16
*1518 16
*1514 16
*1518 16
16 Dec 67 A!
9 Jan 22 2914 Mar 5
•1514 16Crex Carpet
100
314 4
312 358
328 41
358 334
15 Dec 125 F1
412 5
3,700!Crceley Radio Corp___No par 314 Dec 29 22 Jan 2
3134 3234 3112 3258 3214 33'2
*31
32
337 34
8714 Nov 79 Al
1,7001 Crown Cork ot Seal____No Par 31 Dec 16 5953 Apr 7
7
*412 48 *438 4% *413 4
*412 43
*413 434
17
Oct 2534 .11
434 Dec 17 1812 Feb 19
No par
Crown Zellerbaoh
5412 56
59
61
551 5514 5614 59
71 Nov 13158 At
5638 5812 8,000ICruelble Steel of Ameriea_100 5018 Dec 13 935sMar 25
10212 10212 10212 103 *10212 1044 10434 1043
100 10112 Dm318 117 Mar 13 103 Nov 11658 Fo
10434 10434
Preferred
50;
21g 212 `2% 3
212 234
278 278
5 Nov 2412 Ji
218 Dec 30 1912May 29
No par
*212 412 1,600 Cuba Co
1
1
114
1
118
1
1
1
7 Mar 3
1 Oct 2
118
114 2,400.Cuba Cane Products-No par
2
2%
2
3
2
218
212 3
9 Feb 4
678 -Dec 17 51
2 Dec 2
•2% 3% 12.200;Cuban-Amerieen Sugar_-__10
•25
2612 25
__ 21
25
20
20
100 20 Dec 31 8558 Feb 11
56 Dec 95 .11
•
*2213 2412
200; Preferred
40
40
4014 4012 4012
40
4013 40
RV& 1,
441.1ma
_ _ _AO 3814June 25 48 Jan 2, 86 Nem
41
411. 1 WM'rndrallo 4,
•Blei and asked prices; no sales on this day, z Ex-dividend. v Ex-dividend and ex-rights,
r 31,
92
New York Stock Record-Continued-Page 4
For sales during the week of stocks not recorded here, see fourth page precedinC•
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT
Saturday
Dec. 27.
Monday
Dec. 29.
Tuesday
Dec. 30.
Wednesday
Dec. 31.
Thursday
Jan. 1.
Friday
Jan. 2.
Sales
for
the
Week
STOCKS
NEW YORK STOCK
EXCHANGE.
Shares Indus. &Mace!.(Con.) Par
3,000 Curtis Publishing Co_-No par
400 Preferred
No par
47,438 Curtiss-Wright
No par
100
11,700 Class A
2,700 Cutler-Hammer Mfg___No par
9,000 Davison Chemical
No par
300 Debenham Securities
58
400 Deere & Co pref new
20
1,300 Detroit Edison
100
1,800 Devoe & Reynolds A_ _No par
Diamond Match Ms. of dep__
7,200 Dome Mines Ltd
No par
1,100 Dominion Stores
No par
16,300 Drug Inc
No par
1,800 Dunhill International-No par
100 Duplan Silk
No par
500 Duquesne Light let pref--100
100 Eastern Rolling Mill_ No par
21,890 Eastman Kodak Co
No par
1601 6% cum pref
100
8,650 Eaton Axle & Spring-No par
20
61,900 El du Pont de Nem
700, 8% non-vol deb
100
314
312
1,200 Eittngon Schild
No par
100
*35
3512
300 Preferred 611%
No par
504 55 33,500 Electric Autollte
100 Preferred
100
*10612 110
2,600 Electric Boat
No par
23* 3
3814 42,
8 70,203 Electric Power & 1.4_ _ _No par
7251 Preferred
No par
*99 101
2,0001 Preferred (6)
No par
*85 87
2,920 Eleo Storage Battery No par
50% 51
*3,
12
*38
1
*38
1
•12
1
'Elk Horn Coal Corp---No Par
*33
1
e% 112
34
*1
112 1.400 Emerson-Brant el A_ -No par
1
34
58
*34 112
*371 39
37
1,300 Endloott-Johnson Corp_ _60
37
37
37
3718 3678 37
37
100
*11014 11414
100 Preferred
114 114 *10912 11412 *11014 118
*112 118
200 Engineers Public,Sevy__No par
*42
44
4313 4312
*4312 44
4312 4312 *42 44
100, Preferred $5
81
No par
*8038 85 *7918 85
81
*79% 85 *8033 85
3001 Preferred (55)
No par
90
8938 8912 *80 894
*80 8938
*80 90 *80
325
600 Equitable Office Bldg No par
3212 *32
3112 314 *3138 3212 *32
321* 3234
*10
1112 2.600 Eureka Vacuum Clean-No par
8
8
8
813
814 812 *812 10
413
4
4
418
5
4
418
418 418 2,200 Evans Auto Loading
418 418
24
1,240 Exchange Buffet Corp_No par
23
*2158 2253 *2158 2238 215 2238 2234 233s
25
*1
Fairbanks Co
134
*1
134 *1
134 *1
134 "1
134
37
230 Preferred
100
4
*4
5
*4
5
*4
5
334 4
2212 2212 4,360 Fairbanks Morse
No par
2114 2114 1912 2014 2012 203* 2213 2212
30 Preferred
100
10312 10312 *104 109%
*104. 1098
*105 1097 104 104
•318
5
418
*2% 312
2% 212
278
418
813 Fashion Park Assoo---No par
48
*40
52
*40
Federal Light & Traci
15
51
52 *40 60
52
*40
*40
10 Preferred
No par
90 *88
*88
90
88
88
.75
90
1188 90
2,200,Federal Motor Truck No pa
*638 7
6
638
6
61s
6
6
6% 7
22
224 2.900 Fedi Water Serv A_-_ _No par
2018 2112 2012 2178 2173 2214
2012 22
16
16
*16
18% 36,279 Federated Dept Stores_No par
15
16
1212 1212 1234 14
4,566 Fidel Phen Fire Ins N Y____10
44
4614 47
4434 45
46
4412 464 *45
4573
*634 2
7
No par
40 Fifth Ave Due
8
*673 8
*6,
68 678
*673 8
Filene's Sons
*1614
20
No par
*16
20
20
20
*1614
20
3116
*164
320 Preferred
100
Stock
•8858 89
9012 89 90
89 89
9012 9012 90
17% 1712 1,050 Firestone Tire & Rubber_ _10
17% 17% 1712 1712 1734 177
1734 1734
3,450 Preferred
100
58
5853 Exchange
58
5818 5812 5814 5812 58,8 5818 58
424 4,300 First Na•Ional Storee_No par
4118 4014 4114 40% 4114
41
40% 4058 40
Closed
No par
53
34 26.000 Fisk Rubber
114
12
52
12
%
12
34
34
1,880i let preferred
2
2
100
112 158
158 134
112 158
112 112
212
550' 1st ',ref convertible
2%
2
2
*2
234 New Year's
100
28 258
3312 *33
3412 33 34 *32
36
1,350Florsnelin Shoe clue A_No par
33
•33
35
I Preferred 6%
99 *94
99
*94
Day.
*95
99
100
*94
99 *94
99
No par
1214 1212 1214 13 *13
14
14
1.500 Follansbee Bros
13
13
1312
3812 40
40
4014 4214 4213 4312
4112 4534 15,500 Foster-Wheeler
No par
39
.5
512 1.600 Foundation Co
4
4
N. ,,,ar
4% 414
334 4
334 412
15.200 Fourth Nat Invest w w_No par
21% 2218 2012 2112 2013 22
2113 2238
2214 25
2614 2714 27
No par
2638 27
2818 z271 28
25% 2712 63,745 Fox Film clan A
277g 2814 2738 2879 29
No par
2713 28
2913
2812 3012 10,700 Freeport Texas Co_
250 Fuller Co prior prof _ _ _No par
3175 80
75
75 *75
80
.75
80
*75 80
*3
313
*318 37
2,000 Gabriel Co (The) ol A_No par
3
3
3
318
318 31s
No par
5318 5534 5038 53
5012 5112
*5012 514 1,190 Gamewell Co
521/ 53
5
•114 113 1.400 Gardner Motor
113 114
114 153 .314 112
311% 114
45, 434
47
458 47
434 434
478 518 3,300 Gen Amer Investors- __No par
5
100
80 80 *78
*78
8034
600 Preferred
8034
7912 7912 8034 81
5318 55
5312 55
56
60
573* 6038 21.450 Gen Amer Tank Car-No par
535 55
2212 2338 225* 24
100
2314 2212 23
2414 2438 6,425 General Asphalt
23
51g 7
612 7
*6
734 7.100 General Bronze
No par
612 678
64 6%
718 1,550 General Cable
6% 678
612
7
612 7
7
7
7
No Dar
147 147
1314 14
1312 15
*1412 22
15
15
2.400 Class A
No par
43
48
100
3818 42
44
46
46
47
820 7% cum pref
37
37
33
*33
34
3.100 General Cigar Ino
No par
3234 3234 3114 3234 3214 33
3312
415 423* 421g 4414 4358 4414
4113 421i
42% 452 209,551) General Electric
No par
114 1134 3,400 Special
10
*1112 1158 1153 1134 115* 114 1134 1134
4734 50 1 45.300 General Foods
4654 4712 464 478 4713 4812 471 4934
No par
413 414
378 418
41/1 434 23.000 Gen'l Gas & Elea A_ _ _No par
418 414
45* 43*
52
53
52
53
54
68
1.300 Cony pref ser A
57
57
*50
55
No par
*3012 3134 2,100 Gen Hal Edison Elea Corp2978 3114 30
3014 2934 30
2834 29
457 464 4,630 General MUls
4412 4512 4512 4614
46
4614 45
46
No par
9612 97
*9612 9712
500 Preferred
9712 9712 97 97
100
*97
98
337 343* 3418 3434 341s 351s 3514 3534
3514 373* 205,475 General Motors Corp
10
95
94 94
9612 2,900 $5 preferred
9414 9453
9334 94
No par
94
94
22
2212 2113 22
2178 22
1,500 Gen Outdoor Adv A___No par
2212 2212
227 24
678
678
678
7% 3.000 Common
No par
658 6%
614
712
61* 65s
15
16
1478
8,100 Gen Public Service_ _ No par
13
1412 13
1378 14
1314 14
7212 7334 9,000 Gen It; Signal
72
71
No par
7413 71
7338
6714 6834 68
514 514 24,585 Gen Realty & Utilitiee_No par
312 412
418 42
4% 538
558 534
54
4,350 28 preferred
54
No par
5378 52
54
49
5012 5034 5112 50
3938 41
40
40
408 5,500 General Refractories_No par
397 4112 3912 4078 39
Gen Steel Cant $6 prof No par
"70 8912
8912 *7312 8913 *7312 8932 *731 8912
*74
64 612 67,132 GenTheatres Equip newNo par
513 658
1318 612
els
634
6
658
2118 23 62,682 Gillette Safety Razor_ _No par
2078 22
2138 2258
1918 1938 21
18
No par
4% 47
3,738 Gimbel Bros
412 01
412
412
414 434
434 04
100
388 385s 1,100 Preferred
39
395
4258 4258 405* 428 313958 41
75
No par
858 858 12,321 Glidden Co
84
8
77s 812
812
818 818
*6712 65
170 Prior preferred
100
69
7314 6712 6712
*7314 747 *7314 747
35
No par
4
413 5.625 Gebel (Adolf)
373 418
312 378
4
334 4
3114 324 39,350 Gold Dust Corp v t a--No par
3012 311g 3018 3138 3034 3214 3158 3214
No par
1558 16 1 21,400 Goodrich Co(B F)
157 1614 1514 1614 1538 1618 1512 1614
6314 2,300 Preferred
100
67
,62
64 6412 63 6412 62 6412 *62
4358 4638 32,600 Goodyear Tire& Rub- _No par
4814 4514 4712
4513 4714 4513 4634 46
400 1st preferred
No par
82
82
82
8212 *80
82
*82
83
82
82
*413 514 9,000 Gotham Silk Hoe
No par
4
4
373 414
4
414
334 378
220 Preferred
100
12 5012
5014 5014 *50 5550
55
5012 5012 *50
No par
4
. *418 434 1,400 Gould Coupler A
4
45* 453
414 414
4
'418
313
334
312 334
333
314 334
38 43 11,400 Graham-Paige Motors_No par
338
433
100 Certificates
No par
*4
*312
412
*312
412
312 312 *313 412
1512 1624 6,300 Granby Cons M Sm & Pr..100
15
1512 1458 1534 1512 161, 1514 1614
5.700 Grand Silver Storee
_No par
20
20
211g 20
1834 1953 18
1834 19
2058
No par
1133 1111 3,000 Grand Union Co
104 1058 1014 1014 1018 1012 104 1112
No par
1,3501 Preferred
*3714 40
38
36
36
36% 3734 38
4135
36
No par
4,200 Granite City Steel
20
20
18
1914 197 20
19
19
1814 19
No par
2534 2713 4,300 Grant(WV)
27% 271g 2638 2714 2638 27
27% 274
5,500 Gt Nor Iron Ore Prop_No par
1912 20
1812 19
19
Ws
1912
19
19
19
754 734 18,200 Great Western Sugar--No par
818
814 838
7
7
712
753 758
490 Preferred
100
85% 86%
8518 87
85 86
85 85
8518 85%
No par
278 318 24,500 Grigeby-Grunow
3
3%
278 3
Ds 3
258 2%
35
%
14
14
14
14
35
38
*14
38 1,000 Guantanamo Sugar___No par
No par
1818 1834 2.800 Gulf States Steel
17
1712 15
15
15% 1612 17
17
Preferred
100
$ per share $ per share $ per share 8 per share
90
*8812 90
87
85 87
86
87
*114 117
114Ia 11418 11412 11412 114 114
214 23
2% 238
2% 23
214 234
355 372
312
378
314
378
358 4
40
37
38
3614 3714 37 37% 37
1473
12
12
1112 13% 1213 1278 13
16
*9
10
10
912 10
*913 14
*2038 205
2058 2038 2058 203* 2034 2034
16212 16212 16314 165 *16214 169 169 18212
13
1212 1112 1134 *12
101 2 13
12
'
3190 220 *200 220 *170 210 .172 210
873 918 z878 8%
8% 88
834 8%
143 1438 14
14
1334 1334 1418 1418
63
5934 6012 59
604 5912 6212 62
5
5
5
5
5
*5
512
5
*14
147 *14
1473 1434 1434 *14
14%
10112 10112 *10112 10312 *10112 10312 Z10112 101'2
*6
7
*8
7
614 614 *614 612
1438 14634 143 147
14273 14712 14634 1497*
*12834 13034 *12834 13034 *12834 130 1287* 128%
13
1312 1318 1412 1234 1334 1314 14
8813 8614 8812
8414 8534 8412 8612 85
*11812 _-- 120 12112 *11813 12034 *11812 120
313
312
334 • 378
*312 412
3% 37
3512
35
35 *35
35
*35
3512 35
5353
4934 504 5034 5234 52
4812 50
*10612 110 *10612 110 *10612 110 110 110
214 234
214 234 *258 3
238 212
3612 38
3678 3878 3833 4014
3714 33
9914 9938 99
9912 100 100
*9914 101
86
8514 8134 86
86
85
8538 86
51
5012 5014 5038 50
5014 5038 50
$
per share $ Per share
9114 9218
*11312 114
258 278
38 418
*38
42
14
16
*9
16
@FedFRASER