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MmrrcUtic Volume 138 ilfirtanci,u1 I lirtliitrit ) New York, Saturday, January 6 1934. Number 3576 The Financial Situation 'THE two messages delivered to Congress the present week by President Roosevelt—the regular annual message being read by him in person and the second, or budget message, being transmitted to Congress in the ordinary way—deserve to be considered in conjunction. Only in that way can a true picture be obtained of the situation of the country as a result of the President's policy and program of experimentation. The regular message is a collection of fine phrases and of high resolves, and it is really an official outlining of the whole recovery policy. In the budget measure the stern facts as to the cost of the undertaking are disclosed, and they are found to be hard facts indeed. In this latter -respect figures are presented which are appalling by reason of their magnitude. They leave Mr. Roosevelt as the author of the policy undeterred and with confidence in the merits of his proposition unshaken. The President is an optimist, and he sees things only in a rosy light. It never occurs to him that there is a possibility that he may be mistaken or that the favor of the gods may not be abiding with him, or that the concentrated wisdom of the ages may not have descended upon him. He has the utmost confidence in himself and never hesitates but remains resolute in his purpose. At the same time one is impressed with the sincerity of his convictions even when one is unable to agree with him. However, it is impossible to escape the significance and wide bearing of the burdens resting upon the country as revealed in the budget message. They are startling in the extreme, but no one can fail to admire the candor with which the President speaks. He makes no secret of what confronts him and the country in that respect. The President is unafraid, and he says: "In order to make clear to the Congress what our borrowing problem is for the next six months, permit me to remind you that we shall have to borrow approximately $6,000,000,000 of new money, and in addition $4,000,000,000 to meet maturities of a like amount." Ten billion dollars will be needed all in the short space of six months! It is not surprising that the Government bond market on Thursday should have weakened as the result of this statement. However, to a man of heroic mold this is simply an incentive to new endeavor. He is more determined to press on than before. He takes pains to emphasize over and over the unfortunate condition of the national finances with the immediate needs. "Let me put it another way," he says, and proceeds as follows: "The excess of expenditures over receipts during this fiscal year (ending June 30 1934) amounts to over $7,000,000,000. My estimates for the coming fiscal year show an excess of expenditures over receipts of $2,000,000,000. We should plan to have a definitely balanced budget for the third year of recovery, and from that time on seek a continuing reduction of the national debt." At another point he says: "Therefore, the total debt, if increased by the sum of $2,000,000,000 during the fiscal year 1934-35, would amount to approximately $31,834,000,000 on June 30 1935." Even he, however, cannot close his eyes to the fact that such a state of things cannot continue indefinitely, and accordingly he is moved to say: "It is my belief that so far as we can make estimates with our present knowledge, the Government should seek to hold the total debt within this amount. Furthermore, the Government during the balance of this calendar year should plan to bring its 1936 expenditures, including recovery and relief, within the revenues expected in the fiscal year 1936." The President permits himself to remark, furthermore, that "This excess of expenditures over revenues, amounting to over $9,000,000,000, has been rendered necessary to bring the country to a sound condition after the unexampled crisis which we encountered last spring. It is a large amount, but the immeasurable benefits justify the cost." E ARE now prepared to search for the "immeasurable benefits" which the President seeks as justification for such huge expenditures and such gigantic growth in the national debt. The President has undertaken to set them up in his annual message, and here his logic is often lame, and the arguments he advances in support of his reasoning and conclusions unconvincing. The vein of argument all the way through is that we have entered upon a new era and that our first consideration must be greater regard for "humanity." This it is not difficult to see from what the President says, and the experience of the last nine months, means the elevation of two main classes of the population, namely, first of all labor (and especially union labor), and in the second instance the agricultural population. In the final analysis, therefore, the proposition is that in the "new deal" the aim is that these two divisions of "humanity" must be allowed to benefit at the expense of the rest of the population. But what would be the result, granting that labor and agriculture should be especially advantaged? We would be simply under the domination of these favored classes, and what this would mean has been repeatedly made evident W 2 Financial Chronicle in recent months. Union labor would be completely in the saddle, and its demands would grow more and more imperious. More and more concessions would have to be made to it, until the country would pass in complete subjection to it. Our last state would be worse than our first. Mr. Roosevelt does not go as far as his Secretary of Agriculture, Mr. Wallace, and hint at doing away with all profits. However, with union labor placed on the pedestal to which it aspires, there would be no escape from yielding to all its demands, and then we would have a power within the State more powerful than the State itself. We have indeed been drifting into such a state of tutelage in recent years, as the politicians of both parties have yielded more and more to the demands of labor. But do the people of this country want to bind themselves irrevocably into the inescapable clutches of union labor? The President, in respect to profits, in his annual message, is moved to say: "Industry is organizing itself with a greater understanding that reasonable profits can be earned while at the same time protection can be assured to guarantee to labor adequate pay and proper conditions of work." But labor has been making it plain, over and over again, that profits are no concern of labor leaders. They want larger and still larger wage scales, and are indifferent as to what will happen so long as they can get increased pay. And they will ever be demanding increased pay since otherwise they cannot maintain their hold upon their followers. The President is to be commended for his vigorous denouncement of the desperately wicked things that were done, particularly in the banking world during the period when speculation was running riot. Absolutely nothing can be said in justification of such things. On that point the President remarks: "We have been shocked by many notorious examples of injuries done our citizens by persons or groups who have been living off their neighbors by the use bf methods either unethical or criminal. Practices have been brought to light which have shocked those who believed that we were, in the past generation, raising the ethical standards of business. They call for stringent preventive or regulatory measures." There can be no question that the President is right when he seeks to prevent anything of the kind for the future. But here a flaw is to be noted which should not escape notice, because it is made the basis of so many things which the legislator is constantly holding up to view. We refer to the remark "of injuries done our citizens by persons or groups who have been living off their neighbors by the use of methods either unethical or criminal." "Living off" is the main thesis for the argument that the laboring classes have been deprived of their share of the profits of industry—that labor has not been getting its proper share of the profits of business, and that capital has been waxing fat at the expense of labor. Therefore, it seems proper to point out that in that sense there has been no "living off." Where illegitimate gains have been acquired by criminal or unethical practices it has not been in ordinary business operations, but by men of means who have engaged in promotions or speculative operations that had no reference whatever to the allotment of profits as between labor and capital. Moreover, these men have nearly always been the victims of their own mistaken judgment. They put their money at stake and they suffered just as the Jan. 6 1934 ignorant outsider. It is a commonplace that in the resulting collapse they suffered no less severely than others. Moreover, many of these men are now so severely crippled that not a few of them have lost everything. The main claim for the new era is that it mean:. larger Government control for the benefit of the workers, and in the end perhaps entire control. The loss of business initiative by the private individual follows. But it is a notorious fact that Government has never been a success in business—has not fune honed as well as the private individual. Roosevelt remarks that "We have created a permanent feature of our modernized industrial structure, and it will continue under the supervision, but not the arbitrary dictation of Government itself." Anything of that kind is an idle dream, notwithstanding that the Washington authorities now, through their codes of fair dealing, are injecting themselves into every detail of everyday business. In the end this can only result in favoritism. Those engaged in business will depend entirely upon the favoritism of the Government officials that may be placed in charge. That is a state of things that is abhorrent to every individual who loves freedom and regards it as his right to the extent that it does not encroach upon the rights of others. pROTEST is called for against the rules and regulations governing fair banking practices in New York City embodied in the code of fair competition which has been submitted to the National Recovery Administration. No doubt the banks have been granting free service for some things for which a legitimate charge should and could be made. But in the provisions of the code which has now been drawn up the banks are going to the other extreme and imposing charges which not only will prove extremely vexatious, but will prove a burden so heavy that it is tantamount to complete denial of banking facilities to small depositors, and may even drive many small dealers completely out of business. The New York "Times," in its issue of last Friday, undertook to enumerate some of the charges proposed, saying that they include service charges on checking accounts involving, in the case of Manhattan banks, a base fee of two dollars a month on accounts of $500 or less, minus an allowance of five cents a month for each $25 of balance kept, and in addition a charge of 2/ 1 2c. for each check drawn or deposit made over a quota of two items per $25 of balance. In calculating quotas, we are told, deposit slips count as one transaction, and each of the entries on the slip as other transactions. On accounts above $500 but under $10,000, charges are levied for them in excess of the quota, but no base charge is made. On larger accounts cost analysis must be made monthly, and fees levied to cover costs. In Bronx, Kings, Queens and Richmond counties the service charge on checking accounts is two dollars a month for accounts with a balance of less than $200 plus a eliding scale of charges from four cents an item down on all items passed through the account in excess of $25 monthly. On balances of more than $200, but less than $10,000, 15 free transactions are to be allowed on the first $200 of balance and five free items a month on each additional $100, items in excess of this amount being charged for at the sliding scale. For cashing checks drawn on other banks, each bank would_ charge 10e. for every check Volume 138 Financial Chronicle of less than $100, and 25c. for each check over $100 except where the maker of the check is a depositor of the bank. Analysis of accounts must be made periodically and must include (1) the earnings of the average balances maintained after the deduction of uncollected items and required reserves. The earnings rate should be the average earnings rate of the bank for the period involved; (2) the cost of all services rendered in connection with the account by each department or division of those subject to these rules, including any subsidiary or affiliate, provided, however, that any service performed for a fee shall not be included in such analysis. Another of the miscellaneous rules is the decision to ban interest payments of Christmas clubs and similar funds. This, it is believed, would quickly eliminate the carrying of such funds by the commercial banks. In business quarters, we are told, the comment is that the new schedule of fees will make the use of moderate sized checking accounts extremely expensive. Those who maintain small balances in branches or in neighborhood banks, it was predicted, would do business with currency to a greater extent than before. While higher charges in a few instances may be justified, such wholesale advances, if put into effect, would have to be extremely deplored, and it is strange that they should be seriously proposed. The banks are not any too popular, and the revelations in the Congressional investigations have made the public extremely critical as to any action taken that serves to add to the cost of any service rendered by the institutions. Besides, by the Banking Act of 1933 the banks have been relieved completely of the payment of any interest on demand deposits, even those of large size, the banks being expressly forbidden from allowing any interest on such deposits. Why it should now be proposed to impose a service charge on every petty service rendered—to treat every detail as an item of expense and to limit the items, as in the case of telephone calls, passes comprehension. It is argued that under the present system, where virtually no special charges are made, the result is to stimulate competition to such an extent that the banks have simply become loaded down with unprofitable services and accounts, but here the banks have the remedy in their own hands. If the accounts are unprofitable, then the banks can refrain from running after them, thus avoiding the loss involved. To change the whole system, and now impose service charges so heavy that the smaller business men can no longer avail of banking privileges because of the great expense entertained would appear to be the height of folly. 3 note issues following last week's contraction of about $13,000,000 in the two classes of note issues. The addition to the holdings of acceptances has been, roughly, $10,000,000, the amount of these acceptances having risen during the week from $111,083,000 to $121,062,000. Through aid extended in this way, member banks were enabled to reduce their borrowings at the Reserve institutions, as is evident from the fact that the discount holdings of the 12 Reserve banks fell during the week from $110,552,000 to $106,119,000. Holdings of United States Government securities have again remained substantially unchanged, the amount this week being reported at $2,431,910,000 as against $2,432,179,000 last week. The result altogether is that the volume of Reserve credit, as measured by the total of the bill and security holdings, has been increased some $5,000,000, the amount for this week being $2,660,584,000 as against $2,655,308,000 last week. Through the extension of a further Reserve credit in the way indicated, the member banks found it possible not only to diminish their borrowing at the Reserve institutions, •but to greatly add to their reserve account at the Federal Reserve banks, this item the present week standing at $2,709,919,000 as against $2;675,153,000. As a result, total deposits (in which reserve deposits are overwhelmingly the largest item) rose from $2,829,160,000 to $2,877,872,000. The larger deposits required larger cash reserves, but the decrease in Reserve note issues involved a reduction in cash reserves. Gold reserves were substantially unchanged at $3,568,911,000 as against $3,568,786,000. Accordingly, the Reserve ratio was somewhat reduced, the statement showing that the ratio of total gold reserves and other cash to deposit and Federal Reserve note liabilities combined stands this week at 63.8% as against 63.9% last week. IVIDEND resumptions or increases by corporate entities have been unusually numerous the present week. Union Bag & Paper Corp. declared a dividend of $1 a share on its capital stock; this is the first payment since July 15 1924, on which date a quarterly distribution of $1.50 a share was made on the old capital stock of $100 par value. The Phillips Petroleum Corp. declared a dividend of 25c. a share on common, being the first distribution on this stock since Jan. 2 1931. Lee Rubber & Tire Corp. resumed dividends on its capital stock by the declaration of 20c. a share, payable Feb. 1 1934; the last quarterly dividend on this issue was 50c. a share, paid on Sept. 1 1923. The Curtis Publishing Co. of Philadelphia declared a dividend of 50c. a share on account of arrears on the $7 cumul. pref. HE distinctive feature of the Federal Reserve stock; regular quarterly distributions of $1.75 a condition statements the present week is that share had been made on this if861.1e up to and includthere is a further contraction in the note issues of ing Jan. 2 1933, but none since. The Briggs Manuthe Federal Reserve banks, evidently as the result facturing Co. declared a cash dividend of 25c. a of return of holiday money from circulation, and share on common; quarterly distributions of like that the Federal Reserve authorities have acquired amount were made on this issue on Jan. 25 and a large additional amount of acceptances in the open April 25 1932, but none since. The Alaska Juneau market. Hence the Reserve System has enlarged its Gold Mining Co. declared an extra dividend of 15c. volume of Reserve credit outstanding. The amount a share, in addition to the usual quarterly dividend of Federal Reserve notes the present week is reported of 15c. a share on common; like amounts were paid at $3,071,762,000 as against $3,080,948,000 last week, on Nov. 1 1933. The Melville Shoe Corp. increased while at the same time the amount of Federal Re- the quarterly dividend on common from 30c. a share serve bank notes in circulation has fallen from $210,- to 40c. a share. The United Verde Extension Mining 298,000 to $208,014,000. This means that there was Co.increased the quarterly dividend on capital from a contraction of $11,000,000 in the two classes of 10c. a share to 25c. a share. The Marlin-Rockwell T D 4 Financial Chronicle Corp. increased the quarterly dividend on common from 25c. a share to 35c. a share. The Westinghouse Electric & Manufacturing Co. declared a quarterly dividend of 873/ 2c. a share on the cumul. part. pref. stock. was noted above that in December the decline from the preceding year was 54.2%. HE New York stock market followed an irregular course the present week with the tendency towards lower levels most of the time. On Tuesday, after the Monday holiday, the trend was moderately higher with a, brisk rise in the case of a few specialties like Chrysler, General Motors, Allied Chemical and a few others. The address of President Roosevelt to Congress was looked forward to with considerable interest. On Wednesday,President Roosevelt's message and Governor Lehman's declaration favoring local government and public utility reforms had little influence on speculation, but Governor Lehman's reiteration of his recommendations in favor of "legislation permitting any municipality to construct or acquire a public utility plant and sell its service to its inhabitants and any surplus to residents outside of its territorial limits" had a depressing effect. On Thursday, the President's budget message to Congress and the announcement of his statement that the Government would have to borrow approximately $6,000,000,000 of new money in addition to $4,000,000,000 to retire maturing obligations, or $10,000,000,000 altogether, all during the next six months, weakened market prices of U. S. Government securities and high-grade corporation issues, and this had more or less of a depressing effect on the entire list. In the afternoon, however, there was a brisk rise in the gold stocks with U. S. Smelting & Refining showing a gain of 4/. This had a strengthening effect, particularly on the gold stocks. Yesterday, the course of stocks was more or less irregular. Domestic corporation bonds showed considerable strength until the easing off in prices on Thurdsay by reason of the downward course of U. S. Government issues, though low-priced speculative bonds manifested considerable strength all week. The course of the foreign exchanges and the price of the American dollar did not exert much influence on the stock market at any time and as a matter of fact exchange movements on the whole were within relatively small range. The same is true of the commodity markets, more especially grain and cotton. Trade statistics were of the same character as in other recent periods: The American Iron & Steel Institute on Tuesday reported that the steel mills of the country were engaged at 29.3% of capacity as against 31.6% the previous week which was a smaller falling off than had been expected. For the week ending last Saturday (Dec. 30) train loading of revenue freight on the first 16 major railroads of the United States was reported at 196,053 cars against 178,687 cars in the corresponding week of the previous season,showing an increase of 17,366 cars over the previous year. For the same week the production of electricity by the electric light and power industry was reported at 1,539,002,000 kwh. against 1,414,710,000 kwh. in the corresponding week of the preceding year, being an increase of 8.8% as against 6.6% in the week preceding and 5.2% the week before. As indicating the coures of the commodity markets, the May option for wheat in Chicago closed / 8c. the close on yesterday at 84%c. as against 835 Friday of last week. May corn closed yesterday at 51%c. against 50%c. the close the previous Friday. May oats at Chicago closed yesterday at 37c. against 36/ 1 2c. the close on Friday of last week. May rye and T USINESS failures in the United States in December, instead of being at the high point for any month as far back at least as May, were close to the low point. The records for Dun & Bradstreets show a total of 1,132 commercial defaults in that month, involving a total of liabilities of $27,200,432. This compares with 1,237 similar reverses in November, for a total of $25,353,376 of indebtedness and 2,469 insolvencies in December 1932, for $64,188,643. The reduction in the number of defaults as compared with the previous year was 1,337, equivalent to a decline of 54.2%, while the amount involved last month was considerably less than one-half of that reported for December 1932. Some additional large failures swelled the amount of liabilities slightly above that for November and September of 1933. It is necessary to go back practically 10 years for as favorable a showing for December as that indicated for the closing month of 1933. The record of business failures for the whole of last year was in many respects a very remarkable one. At the opening of the year general business and financial conditions were so involved and of such an adverse character that a more disturbed situation could not well be imagined. Defaults in the last three months of 1932 had been very numerous, and for a heavy total of indebtedness. This condition continued in the early months of 1933, and insolvencies at that time were nearly as heavy as in the first two months of 1932, when the record was at the highwater mark. There was a considerable decline for March, both in the number of defaults and in the amount of liabilities, which in some part undoubtedly reflected the suspension of ordinary business and financial practices put in force then. There was some further slight reduction during the second quarter of 1933, more especially in the number of failures. The marked change for the better, however, occurred in the last half of the year. Attention has been directed to the ordinary progress of events as to business failures in the course of the year. Under normal conditions perhaps 30% of insolvencies occur in the first three months of the year, followed by 20% in the second and third quarters, possibly a little higher in the second three months and 25 or 27.5% in the final quarters. Liabilities by the three months' periods are somewhat less uniform in the matter of the ratios to the total, but in a general way much the same rule applies. In 1933 there were 35.8% of the total number of failures for the year In the first three months, notwithstanding the reduction in March. In the second and third quarters, respectively, 26.9% and 19.7%, and in the fourth quarter of the year 17.6%. Liabilities in the fourth quarter of 1933 were down to 16.7% of the total for the year. For the year 1933 the total number of business defaults in the United States was 20,307, with total indebtedness of $502,830,584. The corresponding figures for 1932 were 31,822 as to the number and $928,312,517 for liabilities. The reduction last year from the preceding year was 11,515 as to the number, or 36.2%, and $425,481,983 for the amount. It B Jan. 6 1934 Volume 138 Financial Chronicle 5 at Chicago ended yesterday at 573/ 4c. against 56%c. Columbian- Carbon at 583 4 against 611 / 2; Reynolds the close on Friday of last week, while May barley Tobacco class B at 43 against 433A; Lorillard at 163' at Chicago closed yesterday at 52c. against 52c. the against 16%; Liggett & Myers class B at 763/ against 1 close on the previous Friday. The spot price for 773', and Yellow Truck & Coach at 43% against 4%. cotton here in New York yesterday was 10.55c. as Stocks allied to or connected with the alcohol or compared with 10.10c. on Friday of last week. The brewing group are irregularly changed. Owens Glass spot price for rubber yesterday was 9.00c. against closed yesterday at 793/ against 81 on Friday of last 9.00c. the previous Friday. Domestic copper was week; United States Industrial Alcohol at 543t quoted yesterday at 81/ 4c. against 81/ic. the previous against 51; Canada Dry at 2434 against 25; National Friday. Silver moved slightly higher. In London Distillers at 245 % against 245 %; Crown Cork & Seal the price yesterday was 19% pence per ounce as at 2934 against 31; Liquid Carbonic at 273/i against against 19 1/16 pence on Friday of last week. The 2934, and Mengel & Co. at 73 3 4 against 7%. New York quotation yesterday was 4434c. as against The steel shares are only slightly changed. United 44%c. the previous Friday. In the matter of the States Steel closed yesterday at 461A against 473/i on foreign exchanges, cable transfers on London yester- Friday of last week; United States Steel pref. at 89 day closed at $5.10% as against $5.07% the close against 883'; Bethlehem Steel at 353/i against 363 %, the previous Friday, while cable transfers on Paris and Vanadium at 21 against 2234. In the auto group, closed yesterday at 6.14c. against 6.081/2c. the close Auburn Auto closed yesterday at 51 against 54 on on Friday of last week. Call loans on the New York Friday of last week; General Motors at 343/ against Stock Exchange continued unchanged at 1% per 35; Chrysler at 5534 against 54%; Nash Motors at annum throughout the entire week. % against 243/ 235 2; Packard Motors at 4 against 33 4; Trading has been very light all through the week. Hupp Motors at 434 against 4, and Hudson Motor On the New York Stock Exchange the sales at the Car at 133 against 148 %. In the rubber group, half-day session on Saturday last were 751,613 shares; Goodyear Tire & Rubber closed yesterday at 333 4 Monday was New Year's Day and a holiday; on against 3534 on Friday of last week; B. F. Goodrich Tuesday the sales were 1,267,020 shares; on Wednes- at 123 1 , and United States Rubber at 4 against 13% day 1,383,120 shares; on Thursday 1,188,310 shares, 15 against 155 %. and on Friday 1,054,980 shares. On the New York The railroad shares are also only slightly changed. Curb Exchange the sales last Saturday were 201,735 Pennsylvania RR. closed yesterday at 29% against shares; on Tuesday 208,370 shares; on Wednesday 293 4 on Friday of last week; Atchison Topeka & 209,370 shares; on Thursday 201,555 shares, and on Santa Fe at 5432 against 553/2; Atlantic Coast Line Friday 166,645 shares. at 393/ against 41; Chicago Rock Island & Pacific As compared with Friday of last week prices are at 33/i against 2%; New York Central at 313 4 against not greatly changed except in the case of the public 33; Baltimore & Ohio at 22% against 23; New Haven utilities which are in some instances sharply lower. at 143 % against 15; Union Pacific at 110% against 111; General Electric closed yesterday at 18% against 19 Missouri Pacific at 3% bid, against 3%; Southern on Friday of last week; North American at 135 4 against 19%; Missouri-Kansas-Texas % Pacific at 183 against 153'; Standard Gas & Elec. at 7 against 73t; at 8 against 8%; Southern Ry. at 2434 against 25; Consolidated Gas of N. Y. at 3634 against 38%; Chesapeake & Ohio at 393/ against 4034; Northern Brooklyn Union Gas at 61 bid against 6434; Pacific Pacific at 21% 1 against 223', and Great Northern at Gas & Elec. at 16 against 153/2; Columbia Gas & Elec. 18% against 19%.' at 113 4 against 123/ 2; Electric Power & Light at 43 4 The oil stocks have displayed no special feature. against 43 4;Public Service of N. J. at 35 against 36; Standard Oil of N. J. closed yesterday at 44% against J. I. Case Threshing Machine at 65% against 683/ 2; 4532 on Friday of last week; Standard Oil of Calif. 3 against 4034; Atlantic Refining at 283/2 International Harvester at 3834 against 393 4; Sears, at 39% Roebuck & Co. at 4134 against 413 4; Montgomery against 28 8. In the copper group, Anaconda Copper Ward & Co. at 213 4 against 2234; Woolworth at closed yesterday at 14 against 14 on Friday of last 425 % against 413/2; Western Union Telegraph at 543/b week; Kennecott Copper at 193 % against 20; American against 53%; Safeway Stores at 44 against 4534; Smelting & Refining at 423/ 8 against 43%; Phelps, American Tel. & Tel. at 109 against 110; American Dodge at 1634 against 163'; Cerro de Pasco Copper 3 against 98; Commercial Solvents at at 33% against 34%, 5 and Calumet & Hecla at 43/8 Can at 94% 3 30% against 313/s; Shattuck & Co. at 734 against against 4%. 6%, and Corn Products at 733/i against 74. RICE movements on stock exchanges in the leadAllied Chemical & Dye closed yesterday at 146 ing European financial centers were generally against 1473' on Friday of last week; Associated Dry 2;E. I. du Pont de Nemours favorable to holders in this first week of the year. Goods at 113/ against 113/ at 92 against 93%; National Cash Register A at 1734 Trading was resumed Tuesday at London, Paris and % against 214 against 18; International Nickel at 213 3 ; Berlin, as the New Year's Day holiday is observed 3 against 30%; Johns- in Europe as it is here. Trading was not particuTimkin Roller Bearing at 29% 3 against 59%; Coca-Cola at 96 larly active on any exchange, but quotations adManville at 57% against 943/2; Gillette Safety Razor at 9 against 9; vanced briskly on the London Stock Exchange and %;Texas the Berlin Boerse. The Paris Bourse followed a National Dairy Products at 13% against 123 Gulf Sulphur at 39% against 403/8; Freeport-Texas at more uncertain trend, owing to the downward tend44 against 44%; United Gas Improvement at 143 % ency of trade in France and the unbalanced national against 1534; National Biscuit at 4734 against 4532; budget. British business indices remain quite favor4 against 75%; Eastman able and year-end predictions of further gains were Continental Can at 753 Kodak at 80 against 80; Gold Dust Corp. at 173/ i general. Prime Minister Ramsay MacDonald, in a Brands at 203 against against 17 8; Standard 214 3 ; New Year's message to the British people, expressed % 4 against 18; confidence that prosperity was returning. The BritParamount Publix Corp. ctfs. at 13 Westinghouse Elec. & Mfg. at 3634 against 3732; ish Ministry of Labor issued statistics Monday show- P 6 Financial Chronicle lug that the number of unemployed declined in December by 55,938, to a total of 2,224,079. British Exchequer returns, covering the first nine months of the fiscal year,indicate that a budget surplus will be shown for the year. These solid evidences of British recovery from the depression by orthodox means cheered the London Stock market immensely. The Berlin Boerse was similarly stimulated by indications of industrial recovery in the Reich. So far as Europe is concerned the chief element of uncertainty is now seen across the ocean. There is profound apprehension in all markets regarding the currency experiment of the United States Government and the amazing budgetary program disclosed in Washington on Thursday. Trading on the London Stock Exchange was restimed, Tuesday, on an optimistic note. Securities of almost every nature were in active demand. British funds advanced fractionally on the favorable revenue reports, while industrial securities improved on the decrease of unemployment and the numerous favorable predictions for the new year. The foreign list was stimulated by a demand for German bonds which followed the indications of determined action by the British Government in defense of bondholders. Other issues in the international list were slightly harder. After a firm opening, Wednesday, slight irregularity developed at London on profittaking. British funds remained in good demand throughout, and further fractions were added to the -quotations. In the industria . 1 list net gains outnumbered the losses at the close, notwithstanding the profit-taking. The international group was quiet and substantially unchanged. In Thursday's market there was some uncertainty in various sections, but the general tone remained firm. Braid' funds resumed their advance, but industrial issues were subjected to a good deal of liquidation owing to the approaching end of the fortnightly account. German bonds again advanced in the foreign section, despite declines in other issues. Further advances developed in most sections of the list yesterday. British funds and industrial stocks showed gains, but international issues were uncertain. The Paris Bourse was very quiet in the opening session of the year, Tuesday, but the tone was firm. Small gains were shown in most French stocks and bonds, but rentes dropped slightly owing to arrangements for a new loan by the Treasury. Opening of books on the 10,000,000,000-franc loan for five, ten and fifteen years, at the option of buyers, with a coupon of 5%, depressed the outstanding loans. In Wednesday's session there was a more pronounced decline in rents, and other securities also were affected by the prevalent pessimism. Gold mining stocks proved the only exception to this tendency, as such issues advanced sharply. Dealings on Thursday were dominated by activities in connection with the new loan of the Treasury. Rentes were sold freely by investors who preferred the new issue, and outstanding obligations were again marked down. Most stocks listed on , the Bourse also were slightly lower. The tendency was reversed yesterday, and most issues improved. The Berlin Boerse was confident and fairly active in the first session of the week and the year. Stocks and bonds alike moved forward, but a little selling toward the close forced quotations down a bit from best levels. Net gains were general, however, with some equities up as much as 4 to 5 points. The firm Jan. 6 1934 tone was resumed in Wednesday's trading, with sharp gains in shares of I. G. Farbenindustrie and the Reichsbank furnishing the stimulus for the rest of the market. Fixed-interest securities moved ahead with the rest of the market. The advance was continued, Thursday, at an unflagging pace. The movement approached the proportions of a boom in some parts of the equities market, while bonds likewise continued their gains. The favorable tendency was attributed to the expectations of widespread business improvement in the Reich this year. Small losses were recorded on the Boerse yesterday. in natural reaction from the gains of previous sessions. IPLOMATIC representations have been made by both the United States and British Governments against the further curtailment of interest transfers on long-term external German bonds dur ing the first six months of this year. This movement was inaugurated by the London Government last week, and it is possible that it will gain in scope, as Holland, Sweden and other interested countries have been kept fully informed by the British Foreign Office of the exact character of the representations. Dr. Hjalmar Schacht, President of the Reichsbank. announced the German plan for interest transfers on Dec. 18. Holders of German bonds in England and the United States felt deeply resentful over the treatment meted out, and due cognizance of the matter was taken in Government circles. As against transfers for the latter half of last year amounting to 50% in foreign currency and 50% in scrip redeemable at half its face value in foreign currency, the Reichsbank ruled that transfers for the first half of this year would consist of 30% in foreign currency and 70% in scrip redeemable at half its face value. In effect, the transfers permitted by the Reichsbank resulted in payments of 75% of interest due in the final six months of 1933, whereas only 65% would reach the bondholders under the plan for the current period. United States Ambassador William E. Dodd was instructed on Tuesday to protest against the unilateral decision of the German authorities to reduce transfers on loans, other than the Dawes and Young plan issues. An announcement by the State Department in Washington indicated that Ambassador Dodd was instructed to associate himself with the representations already made by Great Britain. "Also, Ambassador Dodd will ask the German Gov. ernment for detailed information as to the amount of funds made available during the last two years for the repurchase of German securities issued in the United States," it was said. Washington dispatches stated that the United States Government is taking the position that if and when loan contracts must be modified to the detriment of the creditors, this should be done only after discussion with and agreement by the creditors. In the view of the American Government, failure to observe this principle tends to undermine the credit of the debtor and makes difficult the maintenance of international credit operations on which the financing of international commerce depends. Special arrangements by Germany with Holland and Switzerland, whereby investors in those countries received full debt service last year. were held a discrimination against American investors. It was also questioned whether German repurchases of external bonds do not in some in D Volume 138 Financial Chronicle stances exceed amortization requirements, and thus amount to a diversion of funds due investors. In the British protest to the German Foreign Office, reported in London dispatches of Dec. 29, two specific grounds for complaint were noted. It was held, first, that preferential treatment accorded Dutch and Swiss investors is unfair to British holders of German bonds, and second, that the unilateral announcement of reduced debt service was undertaken without proper consultation with the bondholders. It was intimated in London reports that lack of a proper response by German authorities might result in the establishment of a clearing house in London through which money due German exporters in payment for goods sold in Great Britain would have to pass. From such sums a percentage would be deducted to compensate the holders of German bonds for reduced interest payments. Sir Eric Phipps, British Ambassador to Berlin, was said on Thursday to have communicated verbally to German authorities the intention of the London authorities to establish this clearing house. It was pointed out that British imports from the Reich exceed exports to that country, and the plan therefore would be quite feasible. American imports from Germany, on the other hand, are considerably under exports to the Reich, and the plan was not considered practicable for this country. Concern was expressed in Berlin over the rising tide of protest against the German transfer restrictions, but no official comments were made. Dr. Schacht made public, Tuesday,figures regarding the German balance sheet which he had supplied previously to representatives of bondholders in justification of the German action. The statement reflected a German export surplus for the first 11 months of 1933 of 618,000,000 marks, as against the surplus of 1,013,000,000 marks in the same period of 1932. The favorable invisible balance for last year was estimated at 250,000,000 marks. Total debt service, after taking into consideration the depreciation of creditor currencies, is 1,213,000,000 marks yearly. Making due allowances for exchange differences, Dr. Schacht computed that Germany lacked 11,000,000 marks monthly of the foreign exchange needed to maintain debt service in foreign currencies unimpaired. In a Berlin report to the New York "Times" it was noted that the British threat of establishing a clearing house and sequestrating some exchange may well prove effective, since the favorable treatment of Dutch and Swiss bondholders followed similar threats by those countries to Germany. ISARMAMENT negotiations were continued in several European capitals this week, but a definitely favorable turn in these conversations still appears to be lacking. Direct discussions between Germany and France were resumed, despite frequent French assertions that all disarmament negotiations must be conducted in the League of Nations forum at Geneva. Perhaps equally significant was an exchange of views at Rome between Premier Benito Mussolini and the British Foreign Secretary, Sir John Simon. Foreign Minister Joseph Paul-Boneour, of France, issued a statement in Paris, last Saturday, in which he disclosed that a memorandum has been prepared in reply to recent demands by the German Chancellor, Adolf Hitler, for a short-term army of 300,000 men and some defensive equipment. "We sincerely hope that the communication which D 7 Ambassador Francois-Poncet will present to the Chancellor is of a kind to persuade the German Government that the road is wide open to a general and equitable reduction of armaments," the French Minister said. "It is on the extent of the collaboration between France and Germany along these lines that the chance for a new start in the work at Geneva depends." M. Francois-Poncet transmitted the French communication to Chancellor Hitler last Monday, but no inkling of its contents has so far been made available. Berlin reports, however, indicated the prevalence of "general optimism" on this matter. Premier Mussolini and Foreign Secretary Sir John Simon conferred at length on the European disarmament impasse at Rome, Wednesday and Thursday. It was reported in advance of the meetings by the well-informed Associated Press correspondent at Rome that the Italian leader would take the attitude that extreme care must be used to avoid "exasperating" Germany and thus precipitating an armaments race. An official statement issued after the first conference, Wednesday, indicated merely that the two statesmen had engaged in a "cordial colloquy." It was indicated informally but authoritatively, however, that Signor Mussolini suggested a revision of arms figures calculated to strike a balance among national armaments. The revision would take the form of German rearmament, and the • whole question, instead of being one of disarmament, would become one of rearmament. This reported attitude represents a right about face by the Italian Premier, who has argued heretofore for a wholesale slash in armaments. The problem of the General Disarmament Conference, which is scheduled to reconvene soon, was discussed Thursday. Signor Mussolini took the position, an Associated Press dispatch said, that it is useless to hold formal sessions of the Conference until the Franco-German differences are adjusted. Possible changes in the structure of the League of Nations also are said to have been discussed by Premier Mussolini and Foreign Secretary Sir John Simon. --•-HOROUGH and enlightening surveys of both the internal affairs and the foreign relations of the Russian Soviet Union, just issued in Moscow, provide a well-rounded picture of the present position of the immense territory ruled by the Communist Government recently recognized by the Administration in Washington. Russian relations with other countries were reviewed with the utmost frankness and in great detail at a meeting of the Soviet Central Executive Committee, Dec. 28 and 29, at which Viacheslav M. Molotoff, Chairman of the Council of People's Commissars, presided. Foreign Commissar Maxim Litvinoff, who spoke Dec. 29, emphasized the anxious desire of the Russian Government for peace with all other countries. He made it plain, however, that a clash with Japan is considered all but inevitable in Russia, and also indicated the anxiety felt in Moscow regarding relations with Germany. Russian internal affairs were discussed Dec. 30, in a report issued by the State Planning Commission on the progress and prospects of the second Five-Year Plan. In this survey, to be placed before a Communist party congress in Moscow late this month, it was indicated that a truly prodigious industrial development is contemplated for Russia in the five years from the end of 1932 to T 8 Financial Chronicle the end of 1937, with the emphasis increasingly upon the production of consumers' goods. M.Molotoff, whose position corresponds to that of Premier in other European countries, pointed out in a speech before the Central Executive Committee that the internal situation has been much improved during the past year, owing to the heavy increase in grain collections. The livestock supply of the country is depleted, he admitted, but in two or three years it will again be built up. "We have overcome our major difficulties and now are determined to do our utmost to make life brighter and better for our people," M. Molotoff said. Referring to foreign affairs, M. Molotoff spoke with great satisfaction about the recognition extended by the United States Government. He expressed confidence that the people of both countries approved the action because they know it will aid the cause of peace. So far as Russia is concerned, Japan and Germany represent two danger points, M. Molotoff said, as certain circles in both countries are indulging in provocative activities. The League of Nations, he added, appears to be an embarrassment to the "enemies of peace," as shown by the resignations of Japan and Germany. "We have no intrinsic respect for the League," M. Molotoff remarked,"but insofar as it is a check upon or impediment to war danger, we cannot fail to appreciate its services." Foreign Commissar Litvinoff, in his more detailed review of Soviet affairs with other countries, ex, preseed great satisfaction regarding the results of his recent visit to Washington, which terminated in the establishment of normal relations. "Inasmuch as she herself is deeply interested in the preservation of peace, America has become by contact with our Union one of the most powerful factors for peace and is co-operating with us to that end," M. Litvinoff said. "That is how we look at our relations with America, and my conversations with President Roosevelt convinced us both of the absolute possibility of the closest relations and co-operation for peace by our two countries." The world in general, he declared, is now emerging from a so-called pacifist era into a period of action which shows little sign of pacifism. "Everyone knows that one country—perhaps other countries—wants a revision of treaties and territorial boundaries, and, seemingly, is preparing to attain such revision by methods of violence," M. Litvinoff remarked. "There is another country that is actually using methods of violence to achieve expansion at the expense of a weaker neighbor. Both of them have tried, although unsuccessfully, to disguise their aims under a plea of a struggle against Communism, or a battle for civilization." Of Russian relations with most countries, the Russian Foreign Minister spoke optimistically, but in the latter part of his address he made further specific references to the two danger points. Between Germany and Japan there is a certain community of views and of military organization, the Russian diplomatist held. Chancellor Hitler, of Germany, has declared his hostility to Communism while some of his official subordinates not only are making unbridled attacks upon Russia, but are conducting anti-Soviet intrigues in the Baltic States and in the Ukraine, he charged. Although friendly statements had been received from Germany, his Government was forced to judge the Reich by its actions and not by its words, he said. "Japan," M. fan. 6 1934 Litvinoff continued, "is now the darkest thundercloud on the international horizon. He described the Japanese occupation of Manchuria as not only an infraction of recent international pacts, but also of the Treaty of Washington and the earlier peace of Portsmouth. Japanese assertions of Manchukuoan independence are hardly worthy of attention, the Foreign Commissar declared, and he held Japan, and Japan alone, responsible for damages inflicted upon the Chinese Eastern Railway and upon Soviet nationals in Manchuria. Some groups in Japan are speaking openly of a seizure of the Soviet maritime provinces and the whole of the Far Eastern region, M. Litvinoff pointed out. "We will not let them take one inch of Soviet soil," he added. "In the East and West alike we will defend ourselves not only by our Red army but by the Red peoples of this great Union. Under the direction of our Red Communist party and its inspirer and leader, Stalin, we shall show the world we are capable of the same victories in war as we have already won in peace." Internally, the Soviet officials contemplate a 240% increase in annual industrial production during the period of the second five-year plan. The basic figures covering the second plan call for a gain, in price terms, from 43,000,000,000 rubles to 103,000,000,000 rubles. In the final year, more than half of the total production will be of so-called consumers' goods. "Staggering facts emerge from the mass of statistics," said Walter Duranty, in a dispatch to the New York "Times." "The annual production of coal, oil, pig iron, machines and the production of means of production are to be more than doubled. Steel, copper, chemicals, and the output of automobiles, tractors, combines and other agricultural machinery, freight cars and locomotives are to be trebled or more. Electric power is to increase by 180%. Agricultural production is to be doubled, and the grain crop raised to 110,000,000 metric tons, chiefly by improving quality." The plan provides also for vast increases in the number of workers and employees engaged in industry, and a corresponding improvement in the number of students at schools. No estimates of foreign trade were included, presumably because this aspect of Russian economy will be the subject of a special report. Much attention was given, however, to transportation, which is a weak point in Russia. A complete reorganization of the railroad system along American lines is called for in the plan, with new construction totaling 11,000 kilometers. ' -4-- OLITICAL machinations in Rumania resulted in the assassination, last Saturday, of Premier Ion G. Duca, leader of the Liberal party in that country, by a member of a powerful Fascist organization known as the Iron Guard. The Premier was shot at the Sinaia railroad station as he awaited a train to carry him back to Bucharest, after a conference with Bing Carol. The assassin, Radu Constantinescu, at first denied all connection with any political party, but it appeared on close questioning that he is a member of the Rumanian Iron Guard, an organization which is modeled along Nazi lines, with highly anti-Semitic tendencies. The Bucharest correspondent of the New York "Times" discussed the murder with the assassin soon after it was committed. "The former student revealed himself frankly as a whole-hearted devotee of the doctrines of Hitlerism, and said that he had no regret for Financial Chronicle Volume 138 having destroyed the 'friend of the Jews,'" the correspondent reported. The assassination occasioned an upheaval in Rumanian politics, and it is evident that complete calm can be restored only after a time. Several rapid Cabinet changes already have followed the murder. The Rumanian Iron Guard numbers among its members many prominent persons in that country, Bucharest dispatches indicate. Known members of the organization were ordered arrested last Sunday, and approximately 1,400 leaders were taken into custody by the authorities. Among them is General Zizi Cantacuzenu, who sent a letter to the murdered Premier early last month threatening to "shoot him down on sight like a dog," owing to the issuance of orders for the dissolution of the Iron Guard. Notwithstanding this threat and many others received by the Premier, no special precautions were taken for his protection. Martial law was proclaimed in the country after the assassination in order to prevent disorders. The body of the murdered Premier was taken to Bucharest last Sunday, and as the train drew up to the station a brother-in-law of the Premier attempted to avenge his death by shooting the assassin, but the bullets missed the murderer. Foreign Minister Nicolas Titulescu, generally regarded as the most astute politician in Rumania, approved the original order dissolving the Iron Guard, but he left the country before it was published and remained in seclusion in Switzerland. Political developments in Rumania this week have centered around M. Titulescu. King Carol instructed Constantine Angelescu, also of the Liberal party, to form a Cabinet last Sunday, but M. Titulescu refused to join the Government on the ground that he would not associate himself with a regime that took no precautions against the assassination of Premier Duca, despite the numerous threats he received. The Angelescu Cabinet resigned on Wednesday, and King Carol thereupon instructed George Tatarescu, also a Liberal, to form a regime, and this the new Premier quickly accomplished, with the aim of carrying out the program of his slain predecessor. - RESIDENT RAMON GRAIT SAN MARTIN placed the political machinery of Cuba in motion, Tuesday, for the immediate reorganization of parties, the election of a Constituent Assembly on April 22, and his own relinquishment of office on May 20. The President issued a statement to the press in which he indicated that he will not in any event remain in office after May 20, and that he will not accept a candidacy to any office. "My decision to retire to private life and practice my profession of medicine is unalterable," he declared. A decree signed earlier the same day provided for the reorganization of political parties in Cuba, the President stated, while a further decree is soon to be signed providing for female suffrage and the compulsory registration of all citizens over 20 years of age as voters. The Constituent Assembly to be elected April 22 would probably be in session for six months, drawing up a new Constitution for the Republic, it was indicated. At its first meeting on May 20 the President plans to turn over to the Assembly all the reins of Government. The Assembly, under this plan, would form a new Provisional Government to function until regular elections can be held under the new Constitution. Although Presi- P 9 dent Grau San Martin's resignation has been sought for some weeks by opponents of the present regime, the announcement Tuesday did not occasion much optimism in such circles. One month, it was claimed, is not sufficient time for proper organization of political parties. No official comment was available in Washington on the proposal, but it was stated informally that the question of recognition did not seem to be affected by the plans. OLIVIA and Paraguay observed a tense and uncertain truce all this week in their warfare over the Gran Chaco territory, but the armistice ends to-night and arrangements for its extension have not yet been reported. The truce, originally arranged by the Pan-American Conference at Montevideo, was due to expire Dec. 31, but an extension of a week finally was acceded to by the reluctant Paraguayans on the plea that peace negotiations had been delayed a week by the tardy arrival of envoys from Asuncion. After the Pan-American Conference adjourned all negotiations rested in the hands of the League of Nations Commission, which heretofore has achieved nothing more than futile gestures. The proceedings of the Commission, as reported in Montevideo dispatches to the New York "Times," do not appear to contain much promise of a permanent peace, or even of an extension of the armistice. "It now appears," one report said,"that the League of Nations Commission weakened the stand of the Pan-American Conference on the Chaco and persuaded the delegates to hand over the problem definitely to the League.'Fears that adjournment of the Conference would weaken the peace negotiations seem to be confirmed by the fact that two days after the adjournment removed the moral force of the united opinion of all the American nations, Paraguay flatly refused to extend the armistice." It was the delay in arrival of Paraguayan representatives that occasioned the further truce, it was pointed out. The peace negotiations were transferred last Monday to Buenos Aires, the official explanation being that it is easier to communicate with Asuncion and La Paz from the Argentine capital. The correspondent of the New York "Times" indicates, however, that they were really moved to another capital to prevent any connection with the Pan-American Conference and to assure that the credit for a settlement, if there is one, will be given to the League Commission. This incident appears to be a perfect illustration of that desire for personal prestige which, according to President Roosevelt, attended the birth of the League and handicapped it from its infancy. B HE Bank of England statement for the week ended Jan. 3 shows a loss of £43,052 in bullion but as this was attended by a contraction of £9,907,000 in circulation, reserves rose £9,864,000. Gold holdings now aggregate £191,643,676 as compared with £120,566,933 a year ago. Public deposits fell off £5,420,000 while other deposits'rose £26,477,972. The latter consists of bankers' accounts which increased £26,511,649 and other accounts which decreased £33,677. The proportion of reserve to liability rose to 38.44% from 37.33% a week ago, a year ago it was 18.22%. Loans on Government securities increased £1,845,000 and those on other securities £9,407,480. Of the latter amount £8,804,488 was to discounts and advances and £602,992 to T 10 Financial Chronicle securities. The rate of discount is unchanged at 2%. Below we show the different items with comparisons for five years: BANK OF ENGLAND'S COMPARATIVE STATEMENT. 1934. Jan. 3. 1933. Jan. 4. 1932. Jan. 6. 1931. Jan. 7. 1930. Jan. 8. £ £ £ £ £ Circulation a 382,074,000 362,599,116 362,859.093 363,504,599 362,921,772 Public despots 16,735,000 12.516,299 15,680,723 13,206,470 17,210,657 Other deposits 164,238.445 168,355,389 120,327,670 102,167,891 111,275.367 Bankers'accounts_ 127.727.487 134,120,092 81,823,788 68,874,566 75,701,298 Other accounts_ _ _ 36.510,958 34,235,297 38,b03,282 33,293,325 35,574,069 Govt.securities 89,881,692 102,081,824 64,890,906 53,081,247 69,885,855 Other securities 39,558,008 63,852,465 55,688,457 37,270,156 30,366,704 Dlsct. & advances 25.560,169 45,990,482 19,898,960 14,357,675 15,081,971 Securities 13,997,839 17,861,983 35.789,497 22,912,481 15,284,733 Res' ve notes & coin. 69,569,000 32,987,817 33,465,312 43,053,315 46,293,097 Coin and bullion 191,643,676 120,566,933 121,324,630 146,557,914 149,214,869 Propor.of res.to Ilab. 38.44% 18.22% 24.6% 37.31% 36.02% Bank rate 2% 2% 6% 3% 5% a On Nov. 29 1928 the fiduciary currency was amalgamated with Bank of England note issues adding at that time £234,199,000 to the amount of Bank of England notes outstanding. HE Bank of Bulgaria reduced its discount rate T on Wednesday, Jan. 3 from 8% to 7%, the former rate having been in effect since May 25 1932 when it was reduced from 93/27o. The Bank of Lithuania on Jan. 2 reduced its rate from 7% to 6%, the 7% rate having been established on May 5 1932. Present rates at the leading centers are shown in the table which follows: DISCOUNT RATES OF FOREIGN CENTRAL BANKS. Country. Rate is Effed Data Jan.5 Established, Austria-Belgium-Bulgaria... Chile Colombia_ Cseolioaloyak's-Danzig__ Denmark.. . England.... Estonia-. Finland__ France__ Germany_ Greece Holland._ PreMous Rate. 5 334 7 434 4 Mar,23 1933 Jan. 13 1982 Jan. 3 1934 Aug. 231982 July 18 1933 6 234 8 534 5 334 4 234 2 534 434 234 4 7 2W Jan. 25 1933 July 12 1932 Nov 29 1933 June 30 1932 Jan. 29 1932 Dec. 20 1933 Oct. 9 1931 Sept.31 1932 Oct. 13 1933 Sent.18 1933 434 5 3 234 634 5 1 5 734 3 Country. Rate in Effect Date Jan.5 Established. HE Reichsbank's statement for the last quarter T of December shows a decrease in gold and bullion of 5,410,000 marks. The total of gold is now 386,182,000 marks in comparison with 806,223,000 marks a year ago and 983,111,000 marks two years ago. An increase appears in the following items: Reserve in foreign currency of 2,517,000 marks, in bills of exchange and checks of 288,935,000 marks, in advances of 123,405,000 marks, in investments of 10,327,000 marks, in other assets of 34,098,000 marks, in other daily maturing obligations of 190,809,000 marks and in other liabilities of 4,575,000 marks. An increase in note circulation of 193,545,000 marks raises the total of the item to 3,645,016,000 marks. Circulation last year aggregated 3,560,459,000 marks and the previous year, 4,775,776,000 marks. Silver and other coin and notes on other German banks record decreases of 59,058,000 marks and 5,885,000 marks, respectively. The proportion of gold and foreign currency to note circulation is now at 10.9% as compared with 25.8% last year. Below we furnish a comparison of the different items for three years: REICHSBANK'S COMPARATIVE STATEMENT. PreMous Rate. 434 Oct. 17 1932 5 Hungary- __ India 334 Feb. 16 1933 4 Ireland__ June 30 1932 834 3 Italy Dec. 11 1933 334 3 Japan 3.65 July 3 1933 4.38 434 Aug. 16 1933 5 Java Lithuania_ Jan. 2 1934 7 6 Norway_ 1334 May 23 1933 4 Poland-- 5 Oct. 25 1933 6 Portugal.-- 534 Dec. 8 1933 8 Rumania -- 6 Apr. 7 1933 6 South Africa 4 Feb. 21 1933 7 Spain 6 Oct. 22 1932 534 Sweden____ 234 Dec. 1 1933 8 Switzerland 2 Jan. 22 1931 W Jan. 6 1934 Changes for Week. Dec. 30 1933. Dec. 311932. Dec. 311931. AssetsReich.rmarks. Reichsmark:. ' Reichsmarks. Reichsmarks. Gold and bullion -5,410,000 386.182,000i 806.223,000 983,111,000 Of which depos. abroad No change. 48,972,000 43,577,000 111,916,000 Reserve in foreign sun_ +2,517,000 9,427,000 113,837,000 172.298,000 Bills of exch.and checks +288,935,000 3,225,695,000 2,806.088,000 4,241,914,000 Silver and other coin _ -59.058,000 171,836,000 177,124,000 81,515,1,00 Notes on 0th. Ger. bks. -5,885,000 3,798,400 3,104,000 2,068,000 Advances +123,405,000 183,279,000 176,063,000 244,633,000 Investments +10,327,000 581,098,000 397,529,000 160,682,000 Other assets -34,098,000 559,099,000 933,638,000 981.409,000 LiabilitiesNotes In circulation__ _ -193,545,000 3,645,016,000 3,560,459,000 4,775,776,000 Other daily matunoblig. +190,839,000 639,833,000 539,856,000 754,870.000 Other liabilities +4,575.000 212,414,000 745,865,000 850.497,000 Propor.of gold & foreign curr, to note circurn. -0.61.. 10.9% 25.g% 24.2% In London open market discounts for short bills on Friday were 1 1-16%, as against 1 3-16@13/ 2% ATES for money in the New York market were on Friday of last week and 1 1-16% for three months' unchanged this week from previous levels. The bills, as against 1 Xi% on Friday of last week. Money pronounced ease which has become customary under on call in London yesterday was 4 5 %. At Paris the the official policy was in continued evidence, while open market rate remains at 23.4.% and in Switzerbusiness in departments all of the market was of a land at 13/2%. routine nature. Call loans on the New York Stock HE Bank of France statement for the week ended Exchange were 1% for all transactions, whether reDec. 29 reveals a gain in gold holdings of 152,- newals or new loans. In the outside or street market 719,195 francs. The Bank's gold now stands at call loans were reported transacted at concessions 77,098,002,120 francs in comparison with 83,016,- from the official level every day, the rates for such 505,715 francs a year ago and 68,863,039,681 francs trades varying between % 3 and %%. Time loans two years ago. French commercial bills discounted were quiet and unchanged. Both the usual comand advances against securities show increases of pilations of brokers' loan totals were made available, 895,000,000 francs and 4,000,000 francs while credit and sizable increases in the totals were reflected. balances abroad and creditor current accounts The report of the New York Stock Exchange for the record decreases of 18,000,000 francs and 858,000,000 full month of December showed an increase of francs, respectively. A large increase appears in $55,902,985 in that period. The Federal Reserve note circulation, namely 2,051,000,000 francs. The Bank of New York report for the week to Wednesday total of circulation is now 82,614,947,370 francs as night showed an increase of $36,000,000. compared with 85,027,538,980 francs last year and 85,724,954,190 francs the previous year. The proEALING in detail with call loan rates on the portion of gold on hand to sight liabilities stands this Stock Exchange from day to day, 1% reweek at 79.39%, a year ago it was 77.29%. Below mained the ruling quotation all through the week we furnish a comparison of the various items for for both new loans and renewals. The market for three years: time money continued without noteworthy move-' BANK OF FRANCE'S COMPARATIVE STATEMENT. ment this week. The only transaction being one of Changes 90 day maturity at 1%. Rates are nominal at 11J for Week. Dec. 29 1933. Dec. 30 1932. Dec. 311931. 134% for 70 and 90 days and 114@13/2% for four, Francs. Francs. Francs. Francs. +152,719.195 77.098,002.120 83,016,505.715 68.863.039,681 Gold holdings -18,000,000 Credit bale. abroad_ five 16,830,024 2,938,312,967 12,354,219.771 and six months. The market for commercial a French commercial hills dicsounted _ +895,006.000 4,739.515,212 3,437,666,286 7.388,787.427 paper has been moderately active this week, the deNo change. 1,142,137,400 1,545,224,240 8,756,771,296 b Bills bought abr'd +4.000,030 2,922,838,657 2,515,490,853 2.729.921.132 Adv.agt. secure- -- mand having been fair and the supply of paper Note circulation_ _ _ _ +2.051,000.00082,614,947.370 85.627.538.980 85,724,954,190 Credit current accts. -858,000,000 15.736.082,879 22,382.980.571 28,081.463.737 ample to meet all requirements. Rates are 13.i% for Proportion of gold on hand to sight extra choice names running from four to six months 7e) 3n 4.0 10.? 77.2007, Ii0.151.1. and 13/2% for names less known. a Includes bills purchased In France. b Includes bills discounted abroad. R T D el Financial Chronicle Volume 138 11 HE market for prime bankers' acceptances has shown little activity this week, most of the trading during the early part of the week centering around 30 and 60-day maturities, though there was some demand for 90-day acceptances on Thursday and Friday. Rates are unchanged. Quotations of the American Acceptance Council for bills up to and including 90 days are /% bid and M% asked; for four months, 4 3 % bid and %% asked; for five and six months, 1% bid and 7 A% asked. The bill buying rate of the New York Reserve Bank is 1A% for bills running from 1 to 90 days, and proportionately higher for longer maturities. The Federal Reserve bank's holdings of acceptances increased during the week from $111,083,000 to $121,062,000. Their holdings of acceptances for foreign correspondents, also increased somewhat from $3,710,000 to $3,809,000. Open market rates for acceptances are as follows: T This statement may be taken to indicate that stabilization of neither the dollar nor of sterling, is on the horizon. It may be recalled that only a few we -elg ago thelnewspapers reported that plans for stabilizationiwerejbeing discussed byvthe American,‘British, and French authorities. These assertions on the part of the press were denied at the time in all official quarters. f In Wednesday's market, which was at a completejstandstill all morning,Tsterling and Ithe chief European units all rose smartly following the delivery of the message. On Thursday a similar manifestation took place, after the President's message on the budget. Sterling was down as low as $5.08 in New York in the forenoon, but rose early in the afternoon to $5.16. Sterling is easier with respect to French francs, or gold, than at any time in several months, as indicated by the London check rate on Paris. The fluctuations of sterling and the leading Continental currencies in terms of the dollar occurred SPOT DELIVERY. with extreme rapidity whenever any sign of activity -180 Days- -150 Days- -120 Days Bid. Asked. Asked. Bid. Bed. Asked. appeared. It was a feature, especially at times on Prime eligible bills 1 H 1 Wednesday and Thursday, to see sterling vary as -90Days- -60Days- -30Days-Asked. Bid. Bid. Bid. Asked. Asked. much as 3 cents in the fraction of a minute. The Prime eligible bills M 34 14 34 M 34 range this week has been between $5.073 4 and $5.18 FOR DELIVERY WITHIN THIRTY DAYS. Eligible member banks 1% bid bankers' for sight bills, compared with a range of Eligible non-member banks 1% bid between $5.073 and $5.153 4 last week. The range cable transfers has been between $5.08 and $5.18% 1 HERE have been no changes this week in the for compared with a range of between $5.073/ and rediscount rates of the Federal Reserve banks. The following is the schedule of rates now in effect for $5.154 a week ago. The following tables give the London check rate on the various classes of paper at the different Reserve from day to day, the mean gold quotation for Paris banks: DISCOUNT RATES OF FEDERAL RESERVE BANKS. the United States dollar in Paris, the London open market gold price, and the price paid for gold by Rate in Federal Reserve Bank. Effect on Date Previous United States (Reconstruction Finance Corporathe Jan. 5. Established. Rate. tion): Boston 24 Nov. 2 1933 3 T New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louts Minneapolis Kansas City Dallas Ran Francisco 2 24 2% 34 3% 2% 3 34 34 34 24 Oct. 20 1933 Nov. 16 1933 Oct. 21 1933 Jan. 25 1932 Nov. 14 1931 Oct. 21 1933 June 8 1933 Sept. 12 1930 Oct. 23 1931 Jan. 28 1932 Nov. 3 1933 24 3 3 4 3 3 34 4 3 4 3 TERLING exchange and the entire foreign exchange situation present no new features of importance. On Saturday last the markets were more active than at any time in many months, reflecting final year-end transfers and settlements. On Monday, New Year's day, all markets were closed. On Tuesday exchange transactions everywhere were at a minimum as bankers throughout the world awaited the import of the President's message, which was delivered at noon on Wednesday. It was the general expectation that the message would give some indication of the President's monetary plans. When, however, nothing of importance was disclosed respecting these plans and their bearing on foreign exchange, the dollar dropped sharply and an active demand appeared in many markets for sterling, French francs, guilders, and Swiss francs. The context of the President's message will be found on another page. One statement was revealing, showing as it does that attempts have been made to bring about some form of agreement with leading nations as to stabilization of currency. The President said: "Careful investigation and constant study prove that in the matter of foreign exchange rates certain of our sister nations find themselves so handicapped by internal and other conditions that they feel unable at this time to enter into stabilization discussions based on permanent and world-wide objectives." S MEAN LONDON CHECK RATE ON PARIS. Saturday Dec. 30 83.25 'Wednesday Jan. 3 (Holiday) Thursday Jan.4 Monday Jan. 1 Tuesday Jan. 2 83.02 Friday Jan. 5 82.70 82.82 83.22 MEAN GOLD QUOTATION U. S. DOLLAR IN PARIS. Saturday Dec. 30 63.1 'Wednesday Jan. 3 62.9 (Holiday) Thursday Jan. 4 Monday Jan. 1 63.4 Tuesday Jan. 2 63.3 Friday Jan. 5 63.7 LONDON OPEN MARKET GOLD PRICE. 126s. d. 'Wednesday Jan 3 Saturday Dec. 30 Monday Jan. 1 (Holiday) Thursday Jan. 4 Tuesday Jan 2 127s. Jan. 5 Friday 1278. 6d. 127s. 6d. 127s. 6d. PRICE PAID FOR GOLD BY UNITED STATES(RECONSTRUCTION FINANCE CORPORATION). Saturday Dec. 30 34.06 1Wednesday Jan. 3 34.06 Monday Jan. 1 (Holiday) Thursday Jan. 4 34.06 Tuesday Jan. 2 34.06 Friday Jan. 5 34.06 The Reconstruction Finance Corporation's price for gold has continued at $34.06 per fine ounce since Dec. 18. Since the Government began buying gold it would seem that approximately $24,800,000 of domestic gold has been purchased. The Government's purchases in European markets appear to have totaled $50,000,000. Much disappointment is voiced in London and other European centers because the American policies are not more clearly defined. European bankers report that there are vast sums of money in all the leading centers which cannot be employed at satisfactory yields and which would instantly seek the American security markets on any sign that the American monetary problems are being solved. Under normal conditions the first week in January is a transitional period in foreign exchange, but from the middle of January until toward the end of August all seasonal factors favor sterling and the European currencies. Whether this will be the case now, in view of the universal restrictions imposed on foreign trade and foreign exchange, would be difficult to predict. 12 Financial Chronicle Money continues in abundance in the London open market and at present the money rates do not reflect this condition, as they are maintained at present levels through the concerted efforts of the London banks to support the bill market. Call 1%. Two-months' money is in supply at M% to Y bills are 1 1-16%; three-months' bills, 1 1-16% to 13/8%; four-months' bills, 1 1-16% to 13/8%, and six-months' bills, 1H% to 1 3-16%. On Saturday last £580,000 in bar gold was available in the open market and taken for an unknown destination at a premium of 53'd. On Tuesday £565,000 bar gold was taken for an unknown destination at a premium of 53/2d. On Wednesday £405,000 was taken for an unknown destination. On Thursday £515,000 bar gold was taken for an unknown destination at a premium of 7d. On Friday £510,000 bar gold was taken for an unknown destination at premium of 43'd. The Bank of England statement for the week ended Jan. 3 shows a decrease in gold holdings of £43,052, the total standing at £191,643,676, which compares with £120,566,933 a year ago and with the minimum of £150,000,000 recommended by the Cunliffe Committee. At the Port of New York the gold movement for the week ended Jan. 3, as reported by the Federal Reserve Bank of New York, consisted of exports of $199,000 to France. There were no gold imports and no change occurred in gold earmarked for foreign account. In tabular form, the gold movement at the Port of New York for the week ended Jan. 3, as reported by the Federal Reserve Bank of New York, was as follows: GOLD MOVEMENT AT NEW YORK DEC. 28—JAN. 3,INCLUSIVE Exports. Imports. 8199,000 to France. None. Net Change in Gold Earmarked for Foreign Account. None. Export* of Gold Recovered from Natural Deposits. None. The above figures are for the week ended Wednesday evening. On Thursday and Friday there were no imports or exports of the metal or change in gold earmarked for foreign account. There have been no reports during the week of gold having been received at any of the Pacific ports. Canadian exchange continues to fluctuate within narrow limits, ranging from a slight discount to occasionally a slight premium. On Saturday last to a 1 Montreal funds were at from a discount of 4% 1 %. On Tuesday Montreal funds were premium of 4 at a premium ranging from 1-16% to %. On Wednesday the range was from a discount of H% to a premium of %%. On Thursday Montreal funds _ were at a premium of %. On Friday the quotation was H% discount. Referring to day-to-day rates, sterling exchange on Saturday last was active and firm. Bankers' sight was $5.12@$5.153/ 2; cable transfers, $5.123© New Year's day, markets Monday, On 4. $5.161 were closed. On Tuesday the pound was firm but 2@$5.18 trading was inactive. The range was $5.143/ for bankers' sight and $5.14%@$5.183 for cable transfers. On Wednesday the foreign currencies were dull as the President's message was everywhere awaited. The range was $5.103@$5.16 for bankers' sight and $5.11%@$5.163' for cable transfers. On Thursday sterling was steady. The range was 4for bankers' sight and $5.08@$5.16 $5.07%@$5.153 On Friday sterling was easier; transfers. cable for the range was $5.09@$5.12% for bankers' sight Jan. 6 1934 and!$5.093@$5.13 for cable transfers. Closing quotations on Friday were $5.10Wi. for demand and % for cable transfers. Commercial sight bills $5.103 finished at $5.10; 60-day bills at $5.10; 90-day bills at $5.10; documents for payment (60 days) at $5.10, and seven-day grain bills at $5.103/. Cotton and grain for payment closed at $5.10. XCHANGE on the Continental currencies is firm E as represented in terms of the depreciated dollar. The French position is more satisfactory than at any time in many months as money stability has for so long been stressed in Paris. Now reports from the French centers are of the most optimistic nature and the conviction prevails that France and the other gold currencies of Europe will be Sable to maintain their standard despite any courses which may be pursued here, in London, or elsewhere. There is no longer any evidence of hoarding in France. The Bank of France statement for Dec. 29 is more satisfactory than any other since September. Total gold holdings stand at 77,098,002,120 francs, a gain of 152,719,195 francs as compared with the previous week, when the low point on the move of 76,945,282,925 francs was reported. This is the first gain which the Bank has been able to show since the beginning of September. During the long continued drain on its gold stock the bank lost approximately 5,332,000,000 francs. Despite the increase in gold holdings the Bank's ratio dropped 0.19 to 79.39%. This was due largely to year-end increase in circulation, which will doubtless be made up in early forthcoming statements. A year ago the ratio stood at 77.29%. Legal requirement is 35%. German marks have been exceptionally firm for several weeks, due, it is believed, entirely to the transmission to Germany of the proceeds of the sale of German dollar bonds in New York. In the news items on other pages will be found several statements relating to the standstill agreement and to the protests of the United States Department of State against the reduction in the transfer of interest payments due Americans. It will be recalled that in the middle of the year Germany ceased to transfer funds to pay interest on her external bonds (except for the "Dawes" and "Young" loans). The explanation was that there were great difficulties in exchange remittances. Until 1933 the Reichsbank had maintained its reserves of gold and foreign gold currencies because of its merchandise export surplus, but these exports decreased rapidly during 1933, being approximately 25% under 1932 and 50% below those of 1931. The surplus of imports was approximately $683,000,000 in 1931; dropped to $250,000,000 in 1932, and fell further in 1933. The Reichsbank's gold reserves were reduced $151,000,000 in the first half of 1933. Under these circumstances, the Berlin authorities experienced little difficulty in securing the consent of creditors to the "standstill" agreements and even to the later provisos which called for payment of only 30% of the interest on the bonds in cash and the rest in scrip of uncertain value. However, the fact that Holland and Switzerland were able to bring about a modification of these agreements in favor of their nationals has aroused the interest of the British and American Governments to seek equal rights in this respect with those enjoyed by creditors in other countries. The situation has been aggravated in the past few months by the known fact that the German Government Volume 138 Financial Chronicle 13 has been buying up its dollar bonds in New York. 12.91 for bankers' sight bills and at 12.92 for cable A few days ago the New York "Times" pointed out transfers, against 12.78 and 12.79. in an editorial the fact that the operation was highly XCHANGE on the South American countries is 2s, for instance, lucrative. "The City of Berlin 63/ The foreign exchange exceptionally dull. Exchange ended the year on the New York Stock continues under countries all these of operations redemption at 3432. A bond whose contracted nomivalue was $1,000 could thus be bought in dollars governmental regulations. Quotations are all have Argentina in for $345. But that was not all, because the dollars nal. The political disturbances more little A rates. exchange required to buy the bond could themselves be pur- had no influence on Two chased with German marks at a discount of 37%. freedom is permitted in Argentina exchange. the York, New in peso paper the for quoted Our gold policy had made that possible. Deduction rates are or "unofficial" the and 33-333. round rate official of 37% from the market's dollar price of the $1,000 delays However around 24-233.. rate, market free bond would make the cost of repurchasing it by the or obstructions may arise in foreign debt payments, Germans something less than $218." Argentine financial authorities are strong for the the of Exchange on Lithuania and on Bulgaria are of "pay in full." policy but minor importance in the New York market, paper pesos closed on Friday nominally Argentine view in time interest attaches to these units at this sight bills, against 33.20 on Friday bankers' for 34 at its reduced Lithuania of the fact that the Bank of against 333. rate of rediscount during the week from 7% to 6%. of last week; cable transfers at 3438, 4 for 83 quoted The 7% rate had been in effect since May 5 1932, Brazilian milreis are nominally against transfers, cable for and 83/2 when it was reduced from 73/2%. The Bulgarian bankers'sight bills quoted nominally is 81% exchange Chilean 4. and 83 bank reduced its rate during the week from 8% to 7%. against 22.75, at nominal is Peru 9%. The London check rate on Paris closed on Friday 9%, against at 83.25, against 83.46 on Friday of last week. 22.68. In New York sight bills on the French center finished XCHANGE on the Far Eastern countries preon Friday at 6.133/2, against 6.08 on Friday of last sents no new features of importance. The week; cable transfers at 6.14, against 6.083/2, and are inclined to some degree of firmness commercial sight bills at 6.13, against 6.07%. Chinese units slightly improved tone of the silver Antwerp belgas finished at 21.79 for bankers' sight owing to the are under the strictest of bills and at 21.80 for cable transfers, against 21.59 market. Japanese yen regulations. The Indian exchange and 21.60. Final quotations for Berlin marks were governmental with sterling to which it fluctuates 37.29 for bankers' sight bills and 37.30 for cable rupee of course rate. fixed a at law by transfers, in comparison with 37.09 and 37.10. is attached checks yesterday were yen for quotations Closing Italian lire closed at 8.23 for bankers' sight bills and of last week. Hong Friday on 30.70 against 30%, at 8.24 for cable transfers, against 8.15 and 8.16. 3 ® against 37% 9-16, 38 at @ closed Kong 383/2 Austrian schillings closed at 17.65, against 17.55; %@ 3438, against 343/i exchange on Czechoslovakia at 4.663/2, against 37 13-16; Shanghai at 343 503/2; Singapore at against , 2 503/ at Manila 3434; 4.63; on Bucharest at 0.94, against 0.93; on Poland %, against 383 383/2, at Bombay 59%; against 6034, at 17.65, against 17.53, and on Finland at 2.303/2, . 3 38/ against , 2 383/ at Calcutta and against 2.283/2. Greek exchange closed at 0.88 for EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE bankers' sight bills and at 0.883/ for cable transfers, FOREIGN BANKS TO TREASURY UNDER TARIFF ACT OF 1922. DEC. 30 1933 TO JAN. 5 1934. INCLUSIVE. against 0.873/2 and 0.88. •-•-• Noon Buying Rate for Cable Transfers in New York. Value in United States Money. Country and Monetary the during neutral Unit countries the on XCHANGE 1. Jan. 2. Jan. 3. Jan. 4. Jan. 5. Jan. Dec.30. war is strongly under the influences governing 8 $ 8 8 $ $ EUROPE.178300 .179200 .177200 .177900 .178250 Austria,schilling the dollar, the pound and the French franc. The Belgium, .219990 .220366 .219118 .218546 .219769 beige .013433 .013533 .013033 .013600 013766 ley Scandinavian units are featureless and fluctuate more Bulgaria. .047150 .047237 .046781 .046850 Czechoslovakia, kron .047050 .230000 .229900 .228027 .228672 230183 krone Denmark. or less nominally in sympathy with sterling to which England, pound 5.148666 5.148428 5.115357 5.118333 5.151750 sterling these currencies are allied. Holland guilders and Finland. markka .022950 .022920 .022683 .022833 .022920 .062018 .062217 .061769 .061610 .061991 franc Swiss francs are exceptionally firm as these currencies France, .377492 .378350 .375418 .374100 Germany, reichamark .376923 .008971 .008962 .008870 .008910 .008900 drachma are in high favor with floating capital seeking security Greece, .635518 .636572 .632753 .633175 .135057 Holland. guilder .280166 .280833 .276625 .279166 .27s000 pengo .083150 .033353 .082710 .082795 as a first object. There is believed to be a large ac- Hungary. 083016 Italy. lira .258708 .258620 .256772 .257181 .258950 Norway, krone.. .180666 .179900 .177900 .178500 .178500 cumulation of idle funds in both Holland and Switzer- Poland, ably .047391 .047412 .047087 .047225 .047031 Portugal. escudo .009862 .009900 .009775 .009700 the States in United employment 009590 seek Rumania,leu land that would .130316 .130557 .129735 .129546 .129950 Spain, peseta .265616 .265572 .263475 .263972 krona were monetary questions here more fully resolved. Sweden .3061E0 .307053 .304775 .304192 Switzerland, franc_ .306058 EGLI.022000 .021820 .021840 .021900 DAY .021760 dinar Spanish pesetas are dull and steady, moving in Yugoslavia, ASIAChinasympathy with the French franc. .342500 .342916 .338750 .342500 Cbefoo (yuan) dor .339791 .342500 .342916 .338750 .342500 Hankow(yuan) dol' .339791 Bankers' sight on Amsterdam finished on Friday .343437 .343750 .339843 .342812 Shanghai(yuan)dor .340158 .342500 .342916 .338750 .342500 .339791 dot' (yuan) Tientaln at 62.84, against 62.39 on Friday of last week; .380000 .380937 .376875 .380000 Hongkong dollar... .374062 .386812 .387190 .383000 .384375 .386300 India. rupee cable transfers at 62.85, against 62.40, and com- Japan, yen .310000 .309685 .307350 .308187 .308250 .602500 .600000 .593750 .598125 (ELS.) dol'r_ .597500 mercial sight bills at 62.75, against 62.30. Swiss Singapore AUSTRALASIA4.108750 4.108333 4.086666 4.096250 4.115000 Australia, pound 4.120000 4.119166 4.098333 4.105000 Zealand, pound_ 4.126666 francs closed at 30.34 for checks and at 30.35 for New AFRICA5.088125 5.085000 5.055625 5.053333 Africa, pound._ 5.091875 cable transfers, against 30.06 and 30.07. Copen- South NORTH AMER.1.000781 1.000677 .999583 .998072 1.000052 dollar hagen checks finished at 22.81 and cable transfers Canada. 999550 .999800 .999550 .999550 .999550 Cuba, peso .277487 .277500 .278200 .278200 peso (silver). .277500 on Mexico, Checks at 22.82, against 22.69 and 22.70. .998625 .997125 .995156 .997750 Newfoundland. dollar .998500 AMER.SOUTH at 26.35, transfers cable Sweden closed at 26.34 and .337133* .337275* .338433* .333775 .335900• Argentina, peso .086062* .086687* .086603* .086387* .086346* mlirela against 26.19 and 26.20; while checks on Norway Brazil. .094875* .094050* 093950* 093750* .093750* Mlle. peso .752250* .757266* .759166* .752166* .754000' Uruguay, peso at 25.70, transfers cable and finished at 25.69 .640600* .640600* ,4136900. .640600* 640600* Colombia, peso •Nominal rates;firm rates not available. against 25.51 and 25.52. Spanish pesetas closed at E E E 14 Financial Chronicle HE following table indicates the amount of gold bullion in the principal European banks as of Jan. 4 1934, together with comparisons as of the corresponding dates in the previous four years: T Banks of— 1934. i England__ _ 191,643,676 France a- __ 616,784,017 Germany b 16,860,500 Spain 90,451.000 Italy 76,595,000 Netherl'nds 76,711,000 Nat. Belg 77,947,000 Switzland _ 67.518,000 Sweden 14,426,000 Denmark.. 7,397,000 Norway _ _. 6,573.000 1933. £ 120,566,933 664,132,046 38,289,400 90,336,000 63,0^8,000 86,053,000 74,180,000 88,962.000 11,443,000 7,399,000 8,015.000 1932. 1931. =am 1930. £ 121,324,630 550,904,317 42,867,750 89,879.000 60,848,000 74,880,000 72,946,000 61,042,000 11,433,000 8,015.000 6,559,000 £ 146,557,914 429,895,667 99,679,000 97,563,000 57,275,000 35,513.000 38,292,000 25,609,000 13,381,000 9,560,000 8,135.000 £ 149,214,869 339,469,003 106,702,200 102,638,000 56,120,000 37.289,000 32,750,000 23,799,000 13,592,000 9,581,000 8,148,000 Total week 1,242,906,193 1,252,384,379 1,100,698,697 Prey. week 1.241.854.741 1.252.903.723 1_098.411.415 961.460,581 961_217_242 879,303,072 868.394.508 a These are the gold holdings of the Bank of France as reported in the new form of statement. b Gold holdings of the Bank of Germany are exclusive of gold held nbroad, the amount of which the present year is £2,448,600. The Roosevelt Policies at Home and Abroad. The message which President Roosevelt read to Congress on Wednesday was a disappointment to those who had expected either a detailed report of the progress of the "new deal" or requests for further legislation. The message was entirely one of generalities. It summarized in general terms what had been attempted or actually accomplished under the recovery program, referred briefly and generally to finance, agriculture and unemployment relief, and touched lightly upon foreign relations. Whether the President, in adopting this unusual course and giving to his review a tone of satisfaction and hope, had in mind to break somewhat the impact upon Congress and the public of the budget message which followed on Thursday, or whether he deemed it politic to reserve his specific recommendations for a series of later messages such as he sent to Congress during its first session, are questions which the listening audience was left to answer for itself. President Roosevelt's general statements, however, were not platitudes. They showed not only complete and even serene confidence in the propriety and soundness of what the Administration has done during the past ten months, but a firm determination to go on along the same lines and make the recovery program permanent. In a sentence which has no precedent, as far as we recall, in its implied invitation to the courts to side with the Administration, he declared that "to consolidate what we are doing, to make our economic and social structure capable of dealing with modern life is the joint task of the Legislative, the Judicial and the Executive branches of the national Government." Industrial and agricultural reorganization, naturally, received the most notice. The belief was expressed that "thus far the experiment of seeking a balance between production and consumption" through the Agricultural Adjustment Act "is succeeding and has made progress entirely in line with reasonable expectations toward the restoration of farm prices to parity." The Tennessee Valley Authority was referred to as an agency through which the Administration was seeking, by means of "carefully planned flood control, power development and land use policies," the "elimination of waste, the removal of poor lands from agriculture and the encouragement of small local industries"; and similar undertakings, it was indicated, were in hand "in other great watersheds." No mention, naturally, was made of the unwarranted and destructive competition in rates and services for electric power fan. 6 1934 which the Tennessee Valley Authority has inaugurated at Government expense. "Stringent preventive or regulatory measures" were called for, the President continued, to deal with unethical business practices which have been brought to light and "shocked those who believe that we were in the past generations raising the ethical standards of business." The reference, he said, was to "those individuals who have evaded the spirit and purpose of our tax laws," "those high officials of banks or corporations who have grown rich at the expense of their stockholders or the public," and "those reckless speculators with their own or other people's money whose operations have injured the values of the farmers' crops and the savings of the poor." In another category he placed "crimes of organized banditry, cold-blooded shooting, lynching and kidnapping" as offenses which called not only for immediate suppression but also for "an aroused public opinion." In an address at the dinner of the Woodrow Wilson Poundation at Washington, on Dec. 28, President Roosevelt had for the first time spoken at length regarding his foreign policy, and what was said on that occasion may properly be regarded as supplementing in advance the message to Congress. The statement about foreign issues in the message was brief. The President was "unfortunately" not able, he said, to present "a picture of complete optimism regarding world affairs." The Pan-American Congress at Montevideo was characterized as "an outstanding success," but "in other parts of the world. . . . fear of immediate or future aggression and with this the spending of vast sums on armament, and the continued building up of defensive trade barriers, prevent any great progress in peace or trade agreements." He had made it clear, he told the Congress, "that the United States cannot take part in political arrangements in Europe, but that we stand ready to co-operate at any time in practical measures on a world basis looking to immediate reduction of armaments and the lowering of the barriers against commerce." A later statement regarding foreign debts was promised. The speech of Dec. 28 went much farther. It not only reiterated the assurances which Secretary Hull had given at Montevideo regarding non-intervention by the United States in Latin American countries, but stressed the point that when "the failure of orderly processes" of government in this hemisphere affects other nations, "it becomes the joint concern of a whole continent in which we are all neighbors." Referring to the appeal of President Wilson to the peoples for approval of his peace program, President Roosevelt declared that "the blame for the danger to world peace lies not in the world population but in the political leaders of that population." It was a safe guess that 90% of the population of the world "are to-day content with the territorial limits of their respective nations and are willing, further, to reduce their armed forces to-morrow if every other nation in the world will agree to do the same thing." "Political profit, personal prestige, national aggrandizement attended the birth of the League of Nations and handicapped it from its infancy by seeking their own profit and their own safety first," but the League is nevertheleFs "a prop in the world peace structure," and while the United States is not a member and does not contemplate membership, Volume 138 Financial Chronicle "we are giving co-operation to the League in every matter which is not primarily political and in every matter which obviously represents the views and the good of the peoples of the world as distinguished from the views and the good of political leaders, of privileged classes or or imperialistic aims." Following these comments, President Roosevelt then outlined the course which, he said, he had suggested to "every nation." The first point was an agreement to "eliminate over a short period of years, and by progressive steps, every weapon of offense in its possession," and to create no more such weapons. The proposal was not to exclude the right to fortify national boundaries against invasion, and was to be accompanied by international inspection of armaments. The second point was "a simple declaration that no nation will permit any of its armed forces to cross its own borders into the territory of another nation." The agreement which he propc-sed would not, he said, be of any value unless "every nation without exception" joined in it, but if the great majority of the nations adhered it would, he said, be "a comparatively easy matter to determine which nations in this enlightened time are willing to go on record as belonging to the small minority of mankind which still believes in the use of the sword for invasion of and attack upon their neighbors." He had not offered his proposal, President Roosevelt said, until he had assured himself, "after a hard-headed, practical survey," that the objection which he had in mind had the support of the overwhelming majority of people in this country as well as abroad. Two of the closing sentences of the annual message should not be passed over without notice. After expressing his appreciation of "the fine . relationship" between the President and Congress "during these months of hard and incessant work," Mr. Roosevelt added that "out of these friendly contacts we are,fortunately, building a strong and permanent tie between the legislative and executive branches of the Government. The letter of the Constitution wisely declared a separation, but the impulse of common purpose declares a union." If Mr. Roosevelt meant nothing more by these words than an expression of hope that the Executive and Congress might be found in accord during the present session, he said only what was to have been expected, but if the suggestion looks to a further subordination of Congress to the President's wishes or demands, it challenged one of the greatest safeguards of the Constitution against unwise or hasty legislation. The next few months should show in which sense the remark was intended, and the attitude of the President toward such criticism of his program as the Congress may offer. As we have remarked in our article on The Financial Situation, the annual message is a startling document. It makes clear, beyond anything that President Roosevelt has yet said, the revolutionary changes which are proposed for American industry and business, and the determination of the Administration to push its program until the revolution has been accomplished, and thereafter to keep business and industry under close Government supervision. Unless Congress calls a halt "recovery" is to go on, no matter how great the cost. It is a sobering prospect that the President holds out. 15 Banks Properly Serving Communities Are Deserving of Fair Treatment by Their Patrons and the Public. . Undoubtedly the code of the bankers so far as it relates to checks and the handling of checking accounts will be revised so as more nearly to meet the views of the great mass of people who are depositors. As provided in the temporary code as presented last week the depositors would have a double burden, being charged a fee upon making a deposit and also charged for checks paid although the Government already levies a tax upon cancelled checks. It would be rather discouraging to persons who strive to be thrifty to charge them for the privilege of making a deposit and imposing another charge when they wish to withdraw any portion of their balance on deposit, especially when no interest is allowed upon demand deposits. This innovation was so broad and unexpected that the bankers' ears must have tingled while sharp criticisms were being exchanged among depositors who may be said to include almost every man worth while and a great many women, many of whom had become very bitter after their sad experiences in 1931. Just how great is the service rendered by the banks could only be realized if it were abolished altogether. Depositors who do not comprehend the expenses which a depository bank incurs to maintain deposit and collection departments have very little idea of the cost of handling checks. Receiving and paying tellers must be maintained. Bookkeeping, correspondence, postage, telephone and telegraph messages and express charges are some of the items which pile up the costs of operation and for every individual employed to carry out these many details there are employed men and women to whom must be paid salaries and wages. The larger banks maintain transit departments which utilize a night force to handle incoming and outgoing checks which need to pass through the Clearing House the following day. Banks cannot keep the full amount of deposits available for loans as a large portion of cash is required to meet current demands over the counter and thus cannot be loaned so as to add to the bank's income. Every large city has its Clearing House Association through which checks pass and at which daily balances are struck between all the member banks as a basis of daily settlement among the institutions themselves. This is a costly operation, the expense of which is borne by the local member banks, all of which is greatly to the advantage of depositors. If banks were to deny to their depositors altogether the privileges which most of them have long enjoyed without expense to themselves there would be commercial chaos. So extensively do members of every community depend upon the local banks for assistance in the collection of checks and drafts that commercial affairs of every town now having a bank would be paralyzed were this service to be abolished or made so costly to depositors that they could not assume the expense. Some compromise which will be just to the banks and fair to their depositors is consequently quite sure to be provided. Banks are the connecting link which make the savings and surplus funds of institutions and thrifty 16 Financial Chronicle workers available for the conduct of miscellaneous business concerns and industries. Receipts of a bank come in a multitude of small deposits and the deposits go out chiefly in large amounts to borrowers who must have ready cash to meet payrolls and bills for materials purchased. Elimination of either the depositors or borrowers would prevent a bank from performing its useful functions for a community. Banks are sometimes referred to as credit mills. To carry out the simile depositors are the producers, bankers are the industrialists who manufacture credit and judge of its quality, while the business men who borrow from the banks are the consumers of the product, namely credit. If any one of the essential three links is broken trouble afflicts all interests making up the chain which for the good of each community and the welfare of the whole country should be kept operating without interruption. In case of dislocation the difficulties ensuing would not be merely local as each section of the country is dependent in some respects upon supplies obtained from many others. Relations between banks and depositors constitute but one feature of the banking code. There are provisions as to borrowers and all manner of trusts but it is chiefly with the functions of deposits and loans that the general public is vitally concerned. Speaking for his fellow Commissioners the Chairman of a State Public Service Commission once remarked: "It is our duty to see that burdens are not heaped so heavily upon a utility corporation that it cannot function. Revenue is the life blood of a utility and if this vital element is not supplied in sufficient quantity to the company it will not be able to perform its full duty to the community which it has undertaken to serve." The same principle may be aptly applied to commercial and savings banks and trust companies. So much misery and hardship were caused by the collapse of mismanaged banks that possibly better bankers feel they are entitled to concessions for keeping their institutions afloat. Jan. 6 1934 such times. We are learning to be more tolerant, patient and adjustable to changing regulations and requirements. Co-operation has been the order of the day, frequently yielding to the opinion of leadership contrary to one's judgment. To win out we must have faith in the common sense and fair play of our people as a whole, the vast majority of whom respect civil and property rights and will maintain our fundamental principles and ideals. These principles will never be hastily abandoned in order to imitate the revolutionary experiments of other nations differing radically from us in tradition and racial traits. The Course of the Bond Market. Bond prices eased off on Thursday and Friday, after having made good progress earlier in the week. Last week's rally was continued into this week, in a post-holiday rise, but met with resistance upon the convening of Congress, particularly upon the President's budget message. The budget contemplates an increase in the public debt of $7,309,000,000 for the fiscal year and of $1,986,000,000 for the next fiscal year. Six billion dollars of new money will have to be borrowed by the Treasury in the 'next six months. The revelation of these figures caused a fall in Government bond prices, as much as a half-point in some issues, followed by a rally, allegedly due to Government support. Government; were again moderately weak on Friday. High grade corporation prices were affected adversely only to a very small extent. Lower grade and speculative bonds, on the other hand, were stronger. The dollar, which averaged 63.83 cents last week, was a little lower, at 63.23 cents for the average of four days this week. It showed a tendency to weaken upon prospects of huge Government expenditures, but rallied thereafter. Short-term interest rates were virtually unchanged. Money in circulation again declined, as is usual at this season. The Reconstruction Finance Corporation buying rate for gold was unchanged. Railroad bonds as a group lost some of the price advances of the previous week, as a result of budgetary developments rather than adverse developments within the railroad situation. The sagging tendency of the stock market was probably also a factor especially in the low and medium priced groups. Atchison Topeka & Santa Fe gen. 4s, 1995, 5 and Pennsylvania.43/28, 1960, 3 to 93%, declined from 94% from 105 to 103; Norfolk & Western 4s, 1996, were unchanged at 9934, and Union Pacific 4s, 1947, at 100. Severe declines occurred for Chicago Indianapolis & Louisville 5s and 6s, 1966, because of the default of interest. Other issues lost a point or two: New York Central 414s, 2013, from 63 to 61; Louisiana & Arkansas, 5s, 1969, from 53 to 513%, and Chicago Milwaukee St. Paul & Pacific 5s, 1975, from 39 to 38. Utility bonds made a fairly good showing in the past few days, despite Governor Lehman's utility program and the President's budget message. Such weakness as appeased was William A. Law, Former President American Bankers' halting and showed no evidence of strong selling. HighAssociation, While Viewing Corner Definitely grade issues made no noticeable progress, but, on the other Turned, Regards Road Ahead Neither Straight Nor hand, no pronounced declines; lower grade issues tended to Smooth-Faith in Common Sense and Fair Play advance rather than recede, and closed the week with little of People Needed. "We have definitely turned the corner in an economic net change. Ohio Edison 5s, 1960, were up 2 to 694 for sense, but the road ahead of us is neither straight nor the week; Interstate Power 5s, 1957, down M to 42; Con4,and Standard smooth," in the opinion of William A. Law, President of the tinental Gas & Electric 5s, 1958, up % to 363 Penn Mutual Life Insurance Co. and former President of the Power & Light 6s, 1957, down M to 30. Industrial bonds scored further gains this week on a American Bankers' Association. "Debtors everywthere," says Mr. Law, "are engaged in a mighty struggle to extricate moderate volume of trading. In the steel group, National themselves from their difficulties. Washington Is still the Steel 5s, 1956, gained 3 points to 9334 and Illinois Steel 454s, storm center. With a national budget convincingly balanced, 1940, were up 1 to 104. The tire and rubber issues conthe announcement of a sound monetary policy and the return tinued firm to strong, with Goodrich 634s, 1947, scoring of a spirit of economy in Federal expenditures, favorable the broadest advance, 234 points to 96. Among oil bonds, progress will be tremendously stimulated. The cheerful Standard of New Jersey, Shell Union and Texas issues renews from Great Britain is heartening and will exert a bene- corded fractional gains. Movie issues held previous gains. ficial influence generally." Mr. Law also has the following In other fields, National Dairy 53%s, 1948, recovered further by gaining 4 points to 8234, while United Drug 5s, 1953, to say: were up 6 to 6334. Merchandisin;issues also showed a good As 1933 ends many of us are endeavoring to analyze the complex business turn, with advances reported for Abraham & Straus 534s, and financial situation. Unquestionably much has been accomplished during the year. Unemployment has decreased and the volume of trade, both foreign 1943; Kresge Foundation 6s, 1936, and J. J. Newberry 64s, and domestic, is noticeably greater due to a measurable recovery of con1940, the last making a 1933-34 high at 9134. fidence and increased purchasing power. What the cost of recovery shall be Strength in German bonds was the outstanding feature of only the future can tell, and it will not be reckoned in dollars alone. Difficult as conditions have been, we have lived through much worse this week's foreign bond market. South Americans, paralways the nation has triumphant, stronger situations and finally emerged ticularly Argentines, were somewhat weak and fractionally and more closely knit together. Our recovery from the trials of the Civil lower. Strength was shown in Finnish bonds, and Austrian War and Reconstruction period started from a base far below what we are experiencing to-day, and after sacrifices far more harrowing than those Government issues advanced noticeably. A slight upward of to-day. movement was seen in Japanese bonds. Periods of depression and recovery are usually marked by sharp differences Moody's computed bond prices and bond yield averages of opinion as to methods to be employed. Partisan criticism and opposition as well RS noisy advocacy of unsound measures may always be expected at are given in the tables below: MOODY'S BOND YIELD AVERAGES.t (Based on Individual Closing Prices.) MOODY'S BOND PRICES.• (Based on Average Yields.) All 120 Domestic, Aaa. Aa. Jan. 5 4 3 2 84.97 84.85 85.10 85.10 105.37 105.54 105.54 105.37 Dec. 3033 29 28 27 26 25 23 22 21 20 19 18 16 15 14 13 12 11 9 8 7 6 5 4 2 84.72 84.22 83.60 82.87 82.87 105.20 105.03 105.03 104.51 104.68 83.23 83.23 82.99 83.11 83.23 83.60 83.85 83.97 84.22 84.10 84.10 83.97 83.60 83.60 83.48 82.99 82.50 82.02 81.66 81.54 104.51 104.33 104.33 104.16 104.33 104.33 104.51 104.51 104.51 104.51 104.16 104.16 104.16 104.16 104.33 103.82 103.48 103.15 102.98 102.47 93.26 93.11 93.55 93.55 Stock 93.11 92.97 92.25 92.10 92.10 Stock 91.96 91.96 91.96 91.96 92.10 92.53 92.68 92.82 92.97 92.88 92.68 92.68 92.39 92.39 92.25 91.81 91.25 91.11 90.97 90.69 80.37 80.26 83.48 85.48 88.77 87.56 88.10 86.64 86.25 86.25 89.59 89.04 89.S8 00 69 91.25 91.39 01.67 91.07 90 97 91.67 90.41 88.90 87.96 86.77 86.64 85.87 85.10 84.10 82.74 79.68 77.11 74.67 101.97 89.31 102.14 89.17 103.99 91.67 105.89 94.43 106.78 95.63 107.49 97.16 107.49 97.62 106.78 96.39 106.25 95.93 105.54 95.33 107.67 98.25 107.31 97.47 l07._4 98.25 107.67 99 04 107.85 100.00 107.85 100.33 107.67 100.00 107.14 99.52 106.96 99.36 106.98 99.04 106.25 97.62 105.72 96.54 105.54 95.33 105.20 93.85 104.16 94.43 103.82 93.99 103.99 93.26 103.32 92.25 102.30 90.55 99.36 87.30 99.68 85.35 97.78 83.35 Stock 100.00 85.87 99.84 85.10 09.52 84.48 101.64 87.83 102.30 89.17 Stock 99.04 85.48 102.98 89.31 104.51 90.83 105.89 92.68 105.37 92.53 105.54 92.39 105.03 91.81 105.54 92.25 104.85 00.69 108.03 100.33 97.47 82.99 103.99 89.72 85.61 71.38 1934 Daily Averages. WeeklyNov. 24 17 10 3 Oct. 27 20 13 6 Sept. 29 22 15 8 1 Aug. 25 18 11 4 July 28 21 14 7 June 30 23 16 9 2 May 26 19 12 5 Apr. 28 21 14 13 7 1 ar. 24 17 10 3 Feb. 24 17 10 3 Jan. 27 20 13 6 High 1933 Low 1933 High 1932 Low 1932 Year A goJan.5 1933 Two Years AgoJan. 5 1932 17 Financial Chronicle Volume 138 75.61 74.46 74.77 77.88 79.11 74.67 78.77 81.30 83.23 82.38 83.11 82.99 83.85 81.66 92.39 74.15 82.62 57.57 120 Domestics by Rca ngs. 80.84 104.33 AR 05 02 10 89.86 7021 A. Boa. 120 Domestics by Groups RR. P. U. Indus. 82.02 66.64 85.74 81.90 66.64 85.87 81.78 66.90 86.25 81.90 67.07 86.12 Excha flee Clo sed 81.54 66.55 85.74 80.84 65.96 85.23 80.14 65.12 84.72 79.22 64.23 84.35 79.56 63.82 83.85 Excha nge Clo sed 80.03 64.55 83.48 79.91 64.80 83.48 79.91 64.06 83.11 79.01 64.55 83.11 79.91 64.88 82.99 80.03 65.37 83.35 80.14 65.79 83.72 80.49 65.87 83.85 80.84 66.04 84.35 80.84 66.04 83.97 80.72 66.21 83.85 80.49 66.13 83.72 80.03 65.62 83.23 80.14 65.62 82.99 80.26 65.12 82.74 79.91 64.47 82.02 79.22 64.31 81.18 78.77 63.35 80.72 78.55 62.87 80.03 78.99 62.56 79.68 74.25 74.46 74.57 74.88 97.00 96.54 96.54 96.59 74.46 73.95 72.95 71.77 71.96 96.08 95.78 95.33 95.18 95.33 72.75 73.05 72.75 73.15 73.55 73.85 74.15 74.36 74.46 74.67 74.77 74.67 74.15 74.15 73.95 73.35 73.05 72.45 72.06 72.16 95.63 95.48 95.33 95.33 95.48 95.78 95.78 95.78 95.78 95.63 95.63 05.63 95.63 95.93 95.93 95.93 95.93 94.18 95.48 95.18 61.34 77.66 61.19 77.22 64.71 80.37 66.04 83.35 67.33 85 45 67.42 87.30 68.31 88.10 66.73 86.64 66.47 86.38 66.73 86.38 71.09 90.27 70.90 89.59 72.26 91.11 73.05 91.81 74.15 91.96 74.36 92.25 75.19 92.25 75.71 92.25 74.67 91.96 76.67 92.39 75.40 90.97 73.35 88.90 72.06 87.17 70.43 85.61 70.15 86.12 68.94 85.61 68.04 84.47 66.98 83.35 65.62 81.66 62.56 78.55 58.32 74.36 55.73 71.38 age Clo sed 54.80 71.09 53.28 70.62 53.88 71.38 57.24 73.65 58.52 74.57 age Clo sed 54.18 69.59 57.98 73.15 60.60 75.50 62.48 77.77 61.34 76.25 62.95 76.25 63.11 75.09 75.71 64.31 61.56 71.96 77.66 93.28 53.16 69.59 67.86 78.99 37.94 47.58 71.29 71.67 74.98 77.11 78.55 78.66 79.34 77.11 77.00 76.67 80.72 80.37 81.30 82.50 83.97 84.22 85.23 85.48 84.72 85.87 84.72 83.85 83.23 82.50 81.90 81.18 80.84 80.14 79.11 75.92 74.05 72.06 95.03 94.58 97.31 07.78 98.25 98.25 98.41 97.99 97.31 97.31 99.04 98.41 98.57 98 73 98.73 98.73 98.41 97.94 97.10 97.31 95.93 94.73 94.14 02.68 92.22 01.11 90.27 89.31 87.69 84.82 83.35 81.30 74.67 73.25 73.35 78.10 80.49 81.90 79.91 80.14 82.14 82.74 76.35 80.60 83.85 85.99 85.99 87.56 88.23 89.17 88.23 89.31 70.05 87.69 65.71 78.44 83.11 84.97 86.25 85.48 86.38 86.64 87.50 86.38 99.04 78.44 85.61 62.09 60.97 70.71 87.30 86.12 40 50 63 42 70.00 65 71 77.88 77.77 81.30 83.48 85.35 86.38 86.64 84.72 84.00 84.97 87.69 86.91 87.83 88.63 88.77 88.77 89.17 89.17 88.23 88.23 86.91 85.35 84.60 83.60 83.48 82.87 81.78 80.72 79.34 76.67 74.46 72.16 Excha 73.95 72.65 72.85 75.82 77.33 Excha 72.06 76.25 79.45 81.54 80.49 81.18 81.07 81.90 79.34 89.31 71.87 78.55 54.43 78.10 6732 AN 1934 120 Daily DomesAverages. tic. Jan. 5__ 4_ 3__ 2._ 1_ Dec.3033 29.... 28._ 27.._ 26._ 25_ 23__ 22__ 21__ 20_ 19__ 18_ 16__ 15__ 14._ 13_ 12__ 11__ 9._ 8_ 7_ 6__ 5_ 4._ 2__ I_ WeeklyNov.24__ 17_ 10__ 3... Oct. 27__ 20__ 13._ 6_ Sept.29_ 22__ 15__ 8__ 1.._ Aug. 25_ _ 18_ 11_ 4_ _ July 28__ 21-_ 14_. 7_ June 30__ 23__ 16_ 9__ 2_ May 26_ 19__ 12_ 5._ Apr. 28__ 21__ 14_.. 13.. 7._ L. Nlar.24_ _ 17__ 19.. 3.. Feb. 24.. 17__ 10__ 3._ Jan. 27.. 20__ 13__ 6__ Low 1933 High 1933 Low 1932 High 1932 Yr. AgoJan. 5 '33 2 Yrs.Ago Jan. 5 '32 120 Domestics by Ratings. A. Aaa. Aa. 5.80 5.81 5.79 5.79 4.43 4.42 4.42 4.43 5.19 5.20 5.17 5.17 5.82 5.86 5.91 5.97 5.97 4.44 4.45 4.45 4.48 4.47 5.94 5.94 5.96 5.95 5.94 5.91 5.89 5.88 5.86 5.87 5.87 5.88 5.91 5.91 5.92 5.96 6.00 6.04 6.07 6.08 4.48 4.49 4.49 4.50 4.49 4.49 4.48 4.48 4.48 4.48 4.50 4.50 4.50 4.50 4.49 4.52 4.54 4.56 4.57 4.60 5.20 5.21 5.26 5.27 5.27 Stock 5.28 5.28 5.28 5.28 5.27 5.24 5.23 5.22 5.21 5.23 5.23 5.23 5.25 5.25 5.26 5.29 5.33 5.34 5.35 5.37 6.18 6.10 5.92 5.76 5.66 5.60 5.56 5.67 5.70 5.70 5.45 5.49 5.43 5.37 5.33 5.31' 5.30 5.30 5.35 5.30 5.39 5.50 5.57 5.66 5.67 5.73 5.79 5.87 5.98 6.24 6.47 6.70 4.63 4.62 4.51 4.40 4.35 4.31 4.31 4.35 4.38 4.42 4.30 4.32 4.33 4.30 4.29 4.29 4.30 4.33 4.34 4.34 4.38 4.41 4.42 4.44 4.50 4.52 4.51 4.55 4.61 4.79 4.77 4.89 5.47 5.48 5.30 5.11 5.03 4.93 4.90 4.98 5.01 5.05 4.86 4.91 4.86 4.81 4.75 4.73 4.75 4.78 4.79 4.81 4.90 4.97 5.05 5.15 5.11 5.14 5.19 5.26 5.38 6.62 5.77 5.93 6.61 6.72 6.69 6.40 6.29 4.75 4.76 4.78 4.65 4.61 5.73 5.79 5.76 5.58 5.48 6.70 6.32 6.10 5.94 6 81 5.95 5.96 5.89 6.07 5.25 6.75 5.99 8.74 4.81 4.57 4.48 4.40 4 43 4.42 4.45 4.42 4.46 4.28 4.91 4.51 5.75 5.76 5.47 5.36 5.23 5 24 5.25 5.29 5.26 5.37 4.73 5.96 5.44 7.03 6.40 6.41 6.10 5.92 5.77 5.69 5.67 5.82 5.83 5.80 5.59 5.65 5.58 5.52 5.51 5.51 5.48 5.48 5.55 5.55 5.65 5.77 5.83 5.91 5.92 5.97 6.06 6.15 6.27 6.51 6.72 6.95 Stock 6.77 6.90 6.88 6.59 6.45 Stock 6.96 6.55 6.26 6.08 6 17 6.11 6.12 6 03 6.27 5.47 6.98 6.34 9.23 6.14 4.49 5.43 6.38 7.30 5.27 6.37 Baa. 120 Domestics by GrOUP8. RR. 4.94 4.97 4.97 4.97 8.55 8.61 8.60 8.65 5.00 5.02 5.05 5.06 5.05 8.60 8.72 8.73 8.73 8.72 5.03 5.04 5.05 5.05 5.04 5.02 5.02 5.02 5.02 5.03 5.03 5.03 5.03 5.01 5.01 5.01 5.01 5.06 5.04 5.06 8.74 8.76 8.77 8.78 8.78 8.77 8.81 8.82 8.84 8.92 8.88 8.84 8.83 8.86 8.89 8.89 8.93 8.97 8.94 8.98 7.04 6.42 8.21 7.00 6.46 8.23 6.67 6.18 7.78 6.47 5.93 7.62 6.34 5.76 7.47 6.33 5.62 7.46 6.27 5.56 7.36 6.47 5.67 7.54 6.48 5.69 7.57 6.51 5.69 7.54 6.15 5.40 7.06 6.18 5.45 7.08 6.10 5.34 6.94 6.00 5.29 6.86 5.88 6.75. 5.28 5.86 5.26 6.73 5.78 5.26 6.65 5.76 5.26 6.60 5.82 5.28 6.70 5.73 5.25 6.51 5.82 5.35 6.63 4.89 5.50 6.83 5.94 5.63 6.96 6.00 5.75 7.13 5.06 5.71 7.16 6.11 5.75 7.29 6.14 5.84 7.39 6.20 5.93 7.51 6.29 6.07 7.67 6.58 6.34 8.05 6.76 6.73 8.63 6.96 7.03 9.02 Excha age Clo sed 6.70 7.06 9.17 6.84 7.11 9.42 6.83 7.03 9.32 6.38 6.80 8.79 6.17 6.71 8.60 Excha age Clo sed 6.54 7.22 9.27 6.16 6.85 8.68 5.89 6.62 8.31 5 72 6.41 8.06 5.72 6 55 8 21 5.60 6.55 8.00 5.55 6.66 7.98 5.48 6.60 7.83 5.55 6.97 8.18 5.47 5.19 6.42 7.17 7.22 9.44 5.59 6.30 7.41 7.66 12.96 10.49 5.07 5.10 4.92 4.89 4.86 4.86 4.85 4.88 4.92 4.92 4.81 4.85 4.84 4.83 4.83 4.83 4 85 4.88 4.83 4.92 5.01 5.09 5.13 5.23 5.28 5.34 5.40 5.47 6.59 5.81 5.93 6.10 9.02 9.24 9.13 9.03 9.05 9.40 9.13 9.22 9.39 9.62 9.36 9.34 9.27 9.09 9.10 9 09 9.03 8.91 8.84 8.89 9.32 9.65 9.51 9.68 9.78 9.62 9.66 10.08 10.07 9.89 10.26 10.58 6.05 6.22 6.20 6.03 5.98 10.83 11.02 10.80 10.76 10.73 6.35 5.95 5.80 5 70 5.76 5.69 5.67 5.60 5.69 4.81 6.35 5.75 8.11 11.19 11.05 10.40 10.05 10.20 9.88 9.85 9.62 9.98 8.63 11.19 9.8e 15.82 6.74 5.74 7.55 6.04 6.72 5.73 7.55 6.05 6.71 5.70 7.52 6.06 6.68 5.71 7.50 6.05 Stock Excha ange CI osed 6.72 5.74 7.58 6.08 6.77 5.78 7.63 6.14 6.87 5.82 7.73 6.20 6.99 5.85 7.84 6.28 6.97 5.89 7.89 6.25 Excha nge Clo sed 6.89 5.92 7.80 6.21 6.86 5.92 7.77 6.22 6.89 5.95 7.86 6.22 6.85 7.80 6.22 5.95 5.81 5.96 7.76 6.22 6.78 5.93 7.70 6.21 6.75 5.90 7.65 6.20 6.73 5.89 7.64 6.17 6.72 5.85 7.62 6.14 6.70 5.88 7.62 6.14 6.69 5.89 7.60 6.15 6.70 5.90 7.61 6.17 6.75 5.94 7.67 6.21 6.75 5.96 7.67 6.20 6.77 5.98 7.73 6.19 6.83 6.04 7.81 6.22 6.86 6.11 7.83 6.28 6.92 6.15 7.95 6.32 6.96 6.21 8.01 6.34 6.95 6.24 8.05 6.30 7.47 40 ForP. U. lads.,. elens. 8.26 7.10 5.62 5.71 10.11 10.09 7.94 6.30 7.66 15.0) either Notes.-• Those prices are computed from average yield on the basis of one "ideal" bond (4(% Coupon. maturing In 31 years) and do not purport to show the average level or time average movement of actual price quotations. They merely serve to Illustrate In a more comprehensive way the relative levels and the relative movement of yield averages, the latter being the truer picture of tile bond market. t The latest complete list of bonds used In computing these indexes was published In the "Chronicle" of Sept. 9 1933. page 1820. For Moody's index of bond prices by months back to 1928. see the "Chronicle" of Feb. 6. 1932. page 007 Annual Message of President Roosevelt to Congress-"New Deal" Permanent Feature of Our Modernized Industrial Structure Sees Great Strides Made Toward Objectives of NIRANotes Authority to Purchase Gold and Silver-As to Currency Stabilization, Says Certain Nations Feel Unable to Enter Discussions at This Time-Declares Evasion of Tax Laws and Abuses by Bank or Corporation Officials Call for Stringent Measures-Industrial Progress Dependent upon Agriculture-Message the First to Be Presented with the Change in Date of Convening of Congress in January---Broadcasting of Message. Addressing the opening of the first regular session of the Seventy-third Congress, on Jan. 3, President Franklin D. Roosevelt made no recommendations, but surveyed the readjustment measures 'which had been put into force since he assumed office last March. Incidentally the new session gains distinction by reason of the fact that it is the first to convene Jan. 3, instead of the first Monday in December, which had heretofore been the date for the convening of the regular session. Legislation under which the change was authorized was enacted at the last session of Congress, which, as was stated at the time in these columns (March 11 1933, page 1655) marked the end of the "lameduck" session. In an Associated Press paragraph from Washington, Jan. 3, published in the New York "Herald Tribune," it was observed: To-day was the second time in the history of the nation that Congress has held an opening session in January. The other time was Jan. 4 1790, when George Washington was President, and Congress met in New York City. Presenting his message in person, President Roosevelt appeared before a joint session of Congress. He spoke from the rostrum of the House chamber, where was delivered in 1917 18 Financial Chronicle the war message of President Woodrow Wilson. "Civilization," it was stated by President Roosevelt, "cannot go back; civilization must not stand still. We have undertaken new methods. It is our task to perfect, to improve, to alter when necessary, but in all cases to go forward." The President declared that "we'ha -re made great strides towards the objectives of the National Industrial Recovery Act, for not only have several millions of our unemployed been restored to work, but industry is organizing itself with a greater understanding that reasonable profits can be earned while at the same time protection can be assured to guarantee to labor adequate pay and proper conditions of work. Child labor is abolished. Uniform standards of hours and wages apply to-day to 95% of industrial employment within the field of the National Industrial Recovery Act." He further said,"though the machinery, hurriedly devised, may need readjustment from time to time, nevertheless I think you will agree with me that we have created a permanent feature of our modernized industrial structure and that it will continue under the supervision but not the arbitrary dictation of Government itself." Alluding to the action of the recent move toward gold and silver purchases, the President asserted that it was with "the two-fold purpose of strengthening the whole financial structure and of arriving eventually at a medium of exchange which will have over the years less variable purchasing and debt-paying power for our people than that of the past," that "I have used the authority granted me to purchase all American-produced gold and silver and to buy additional gold in the world markets." He went on to say: Careful investigation and constant study prove that in the matter of foreign exchange rates, certain of our sister nations find themselves so handicapped by internal and other conditions that they feel unable at this time to enter into stabilization discussions based on permanent and world-wide objectives. Turning to the banking situation, the President said that "the overwhelming majority of the banks, both National and State, which reopened last spring are in sound condition and have been brought within the protection of Federal insurance. In the case of those banks which were not permitted to reopen, nearly $600,000,000 of frozen deposits are being restored to the depositors through the assistance of the National Government." The President made the statement that "actual experience with the operation of the Agricultural Adjustment Act leads to my belief that thus far the experiment of seeking a balance between production and consumption is succeeding and has made progress entirely in line with reasonable expectations towards the restoration of farm prices to parity." Speaking of "those individuals who have evaded the spirit and purpose of our tax laws, of those high officials of banks or corporations which have grown rich at the expense of their stockholders or the public, of those reckless speculators with their own or other people's money whose operations have injured the values of the farmers' crops and the savings of the poor," the President asserted that these actions "call for stringent preventive or regulatory measures." Referring, too, to "crimes of organized banditry, cold-blooded shooting, lynching and kidnapping," which "have threatened our security," he said: These violations of ethics and these violations of law call on the strong arm of the Government for their immediate suppression; they call also on the country for an aroused public opinion. While not mentioning specifically any of the Administration's relief programs, the President took occasion to state that "I shall continue to regard it as my duty to use whatever means may be necessary to supplement State, local and private agencies for the relief of suffering caused by unemployment." Mention was made by the President of the war debts, as to which he said he will report later. The recent Pan-American Conference prompted the statement by the President that: We have. I hone, made it clear to our neighbors that we seek with them future avoidance of territorial expansion and of interference by one nation in the internal affairs of another. He added: Furthermore, all of us are seeking the restoration of commerce in ways which will preclude the building up of large favorable trade balances by any one nation at the expense of trade debits on the part of other nations. In other parts of the world, however, fear of immediate or future aggression and with this the spending of vast sums on armament, and the continued building up of defensive trade barriers, prevent any great progress in peace or trade agreements. / have made it clear that the United States cannot take part in political arrangements in Europe but that we stand ready to co-operate at any time in practicable measures on a world basis looking to immediate reduction of armaments and the lowering of the barriers against commerce. It was noted in Associated Press dispatches from Washington, Jan. 3, that President Roosevelt waived the formality Jan. 6 1934 of personal notification of the convening of Congress and told leaders over the telephone he would be ready to deliver his annual message "in a few minutes." The dispatches further noted: Both houses set up the usual joint committee to notify the President that Congress was ready to receive any communications he might want to deliver. Instead of the silk-hatted committee riding down Pennsylvania Avenue to the White House, however, Senator Robinson, the Democratic leader, called the President on the telephone and delivered the message. Senator Robinson said afterward the President "laughed and said he would be ready in a few minutes." From the Washington account, Jan. 3, to the New York "Times" we quote: It took only 22 minutes to deliver the message. It was unusual for such addresses in that it made practically no request for legislation. The President stated at the outset that he had not come before Congress with recommendations for any detailed items. . . . Colorful Scene for President. The setting for the President's appearance before Congress was as colorful as could be remembered by the oldest members or attaches. The Chamber was packed to capacity with Senators, Representatives, members of the Cabinet and families and secretaries of members. Every foot of space in the galleries was filled, with people sitting on the steps. At each door long lines tried to get a glimpse of the proceedings. Mrs. Roosevelt sat in the Executive gallery with her daughter and grandchildren. The premium on gallery space was illustrated by the case of 50 diplomats who tried to find room in an enclosure of 16 seats. The galleries broke the rules of the House now and again in joining with members of the joint session in applause of the President's remarks. The loudest acclaim from both groups was when the President, in announcing that he would have something to say on inter-allied debts later recalled that Finland had paid her obligations. • The atmosphere was in marked contrast to the ceremonies when President Roosevelt took over the reins of the Government on March 4. A spirit of hopefulness seemed to pervade the entire gathering, galleries as well as floor. Republicans joined frequently in the noisy commendation of the President's remarks, and on more than one occasion a rebel yell was heard from the Democratic side. Garner and Rainey Preside. Vice-President Garner and Speaker Rainey presided jointly at the session, the latter handling the gavel as the host. The two bodies and their guests had assembled before the President arrived. The Vice-President and Senate were announced at 1:29 p. Tn., and Joseph Sinnott, House doorkeeper, showed the members to their seats. Vice-President Garner and Speaker Rainey appointed a joint committee of Senators Robinson, MeNary and Fletcher and Representatives Byrne, Doughton and Snell to accompany Mr. Roosevelt to the rostrum. Ile had been waiting for several minutes in the Speaker's rooms, across the hall. As the committee filed out. the Cabinet was announced, and Mr. Sinnott led into the Chamber Secretaries Morgenthau, Dern, Ickes, Wallace and Perkins; Attorney-General Cummings, Postmaster-General Farley, and Acting Secretaries Phillips, of State, Roosevelt, of the Navy, and Dickinson, of Commerce. Announced by Mr. Sinnott, the President entered from the Speaker's door on the arm of his son, James Roosevelt. Ile was preceded by the committee and followed by his faithful bodyguard, Augustus A. Gennerich, and his Assistant Secretaries, Stephen T. Early and Marvin H. McIntyre. A burst of cheering from the Democratic side heralded the entrance of Mr. Roosevelt. The cheering continued for more than two minutes, giving the President time to negotiate the ramp to the rostrum and to adjust his manuscript. As he gained the rostrum, huge kleig lights that had been suspended from the ceiling were switched on and motion picture camera men at vantage points in galleries recorded the scene. The President raised his hand to silence the cheering. Members and the occupants of the galleries resumed their seats, and in a clear, strong voice the President began the message which from the outset voiced an appeal for a continuation of the close union between the Executive and Legislative branches in working out the salvation of the nation. The message, as the President read it soon after noon, after having completed work upon it at 1:30 o'clock this morning, divided into three parts; first, a report on the progress of recovery; second, a 'brief statement of the status of foreign affairs, and, finally, a statement of definite imams in the recovery picture. Radio 'broadcasting of the speeches and developments incident to the opening of the regular session of the Seventythird Congress assumed new proportions on Jan. 3, said a Washington dispatch on that date to the New York "Herald Tribune," in which it was also stated: Not only was the address of President Roosevelt sent out by the National Broadcasting Co. and the Columbia Broadcasting System over a world-wide network, marking the first time that the voice of a President has been heard by radio reading an annual message to Congress, but, for nearly three hours the combined networks of the N. B. C. brought the proceedings of the House and the joint session to the public. Short-wave stations carried the speech of the President to Europe and South America. The proceedings of the House included the entire session. Before the House met, and in the recess, Speaker Henry T. Rainey, Postmaster-General James A. Farley and several members of the House and Senate spoke briefly. Toward the end of his address, the President said: We have plowed the furrow and planted the good seed; the hard beginning is over. If we would reap the full harvest we must cultivate the soil where this good seed is spouting and the plant is reaching up to mature growth. The President's annual message follows in full: To the Congress: I come before you at the opening of the regular session of the Seventythird Congress, not to make requests for special or detailed items of legislation; I come, rather, to counsel with you, who, like myself, have been selected to carry out a mandate of the whole people, in order that without partisanship you and I may co-operate to continue the restoration of our national well-being, and, equally important, to build on the ruins of the past a new structure designed better to meet the present problems of modern civilization. 19 Financial Chronicle Volume 138 Such a structure includes not only the relations of industry and agriculture and finance to each other, but also the effect which all of these three have on our individual citizens and on the whole people as a nation. Now that we are definitely in the process of recovery, lines have been rightly drawn between those to whom this recovery means a return to old methods—and the number of these people is small—and those for whom recovery means a reform of many old methods, a permanent readjustment of many of our ways of thinking and therefore of many of our social and economic arrangements. Civilization cannot go back; civilization must not stand still. We have undertaken new methods. It is our task to perfect, to improve, to alter when necessary, but in all cases to go forward. To consolidate what we are doing, to make our economic and social structure capable of dealing with modern life is the joint task of the Legislative, the Judicial, and the Executive branches of the National Government. Without regard to party, the overwhelming majority of our people seek a greater opportunity for humanity to prosper and find happiness. They recognize that human welfare has not increased and does not increase through mere materialism and luxury, but that it does progress through integrity, unselfishness, responsibility and justice. In the past few months, as a result of our action, we have demanded of many citizens that they surrender certain licenses to do as they pleased in their business relationships: but we have asked this in exchange for the protection which the State can give against exploitation by their fellow men or by combinations of their fellow men. I congratulate this Congress upon the courage, the earnestness and the efficiency with which you met the crisis at the special session. It was your fine understanding of the national problem that furnished the example which the country has so splendidly followed. I venture to say that the task confronting the First Congress of 1789 was no greater than your own. I shall not attempt to set forth either the many phases of the crisis which we experienced last March, nor the many measures which you and I undertook during the special session that we might initiate recovery and reform. It is sufficient that I should speak in broad terms of the results of our common counsel. The credit of the Government has been fortified by drastic reduction in the cost of its permanent agencies through the Economy Act. it tion or two, return many times the money spent on it; more important, will eliminate the use of inefficient tools, conserve and increase natural better resources, prevent waste, and enable millions of our people to take advantage of the opportunities which God has given our country. I cannot, unfortunately, present to you a picture of complete optimism regarding world affairs. Gold Purchases and Currency Stabilization. Tax Evasion. With the two-fold purpose of strengthening the whole financial structure and of arriving eventually at a medium of exchange which will have over the years less variable purchasing and debt-paying power for our people than that of the past, I have used the authority granted me to purchase all American-produced gold and silver and to buy additional gold in the world markets. Careful investigation and constant study prove that in the matter of foreign exchange rates, certain of our sister nations find themselves so handicapped by internal and other conditions that they feel unable at this time to enter into stabilization discussions based on permanent and world-wide objectives. • The overwhelming majority of the banks, both National and State, which reopened last spring, are in sound condition and have been brought within the protection of Federal Insurance. In the case of those banks which were not permitted to reopen, nearly 600 million dollars of frozen deposits are being restored to the depositors through the assistance of the National Government. In the first category—a field which does not involve violations of the letter of our laws—practices have been brought to light which have shocked those who believe that we were in the past generation raising the ethical standards of business. They call for stringent preventive or regulatory measures. I am speaking of those individuals who have evaded the spirit and purpose of our tax laws, of those high officials of banks or corporations who have grown rich at the expense of their stoclaholders or the public, of those reckless speculators with their own or other people's money whose operations have injured the values of the farmers' crops and the savings of the poor. Progress Under N1RA. We have made great strides towards the objectives of the NIRA. for not only have several millions of cur unemployed been restored to work, but industry is organizing itself with a greater understanding that reasonable profits can be earned while at the same time protection can be assured to guarantee to labor adequate pay and proper conditions of work. Child labor is abolished. Uniform standards of hours and wages apply to-day to 95% of industrial employment within the field of the NIRA. We seek the definite end of preventing combinations in furtherance of monopoly and in restraint of trade, while at the same time we seek to prevent ruinous rivalries within industrial groups which in many cases resemble the gang wars of the underworld and in which the real victim in every case is the public itself. Under the authority of this Congress, we have brought the component parts of each industry together around a common table, just as we have brought problems affecting labor to a common meeting ground. Though the machinery, hurriedly devised, may need re-adjustment from time to time, nevertheless I think you will agree with me that we have created a permanent feature of our modernized industrial structure and that it will continue under the supervision but not the arbitrary dictation of government itself. You recognized last spring that the most serious part of the debt burden affected those who stood in danger of losing their farms and their homes. I am glad to tell you that refinancing in both of these cases is proceeding with good success and in all probability within the financial limits set by the Congress. Agriculture. But agriculture had suffered from more than its debts. Actual experience with the operation of the Agricultural Adjustment Act leads to my belief that thus far the experiment of seeking a balance between production and consumption is succeeding and has made progress entirely in line with reasonable expectations towards the restoration of farm prices to parity. I continue in my conviction that industrial progress and prosperity can only be attained by bringing the purchasing power of that portion of our population which in one form or another is dependent upon agriculture up to a . every section of the level which will restore a proper balance between country and every form of work. Flood Control, Power Development, Etc. In this field, through carefully planned flood control, power development and land use policies, in the Tennessee Valley and in other great watersheds, we are seeking the elimination of waste, the removal of poor lands from agriculture and the encouragement of small local industries, thus furthering this principle of a better balanced national life. We recognize the great ultimate coat of the application of this rounded policy to every part of the Union. To-day we are creating heavy obligations to start the work and because of the great unemployment needs of the moment. I look forward, however, to the time in the not distant future, when annual appropriations, wholly covered by current revenue, will enable the work to proceed with a national plan. Such a national plan will, in a genera- Trade Barriers. The delegation representing the United States has worked in close cooperation with the other American republics assembled at Montevideo to make that conference an outstanding success. We have, I hope, made it clear to our neighbors that we seek with them future avoidance of territorial expansion and of interference by one nation in the internal affairs of another. Furthermore, all of us are seeking the restoration of commerce in ways which will preclude the building up of large favorable trade balances by any one nation at the expense of trade debits on the part of other nations. In other parts of the world, however, fear of immediate or future aggression and with this the spending of vaste sums on armament, and the continued building up of defensive tra3e barriers, prevent any great progress in peace or trade agreements. I have made it clear that the United States cannot take psrt in political arrangements in Europe but that we stand ready to co-operate at any time in practicable measures on a world basis looking to immediate reduction of armaments and the lowering of the barriers against commerce. War Debts. I expect to report to you later in regard to debts owed the government and people of this country by the governments and peoples of other countries. Several nations, acknowledging the debt, have paid in small part; other nations have failed to pay. One nation—Finland—has paid the installments due this country in full. Returning to home problems, we have been shocked by many notorious examples of injuries done our citizens by persons or groups who have been living off their neighbors by the use of methods either unethical or Crime. In the other category, crimes of organized banditry, cold-blooded shooting, lynching and kidnapping have threatened our security. These violations of ethics and these violations of law call on the strong arm of government for their immediate suppression; they call also on the country for an aroused public opinion. The adoption of the 21st Amendment should give material aid to the elimination of those new forms of crime which came from illegal traffic in liquor. I shall continue to regard it as my duty to use whatever means may be riecessary to supplement State, local and private agencies for the relief of suffering caused by unemployment. With respect to this question, I have recognized the dangers inherent in the direct giving of relief and have sought the means to provide not mere relief, but the opportunity for useful and remunerative work. We shall, in the process of recovery, seek to move as rapidly as possible from direct relief to publicly supported work and from that to the rapid restoration of private employment. Readjustment. It is to the eternal credit of the American people that this tremendous readjustment of our national life is being accomplished peacefully, without serious dislocation, with only a minimum of injustice and with a great, willing spirit of co-operation throughout the country. Disorder is not an American habit. Self help and self control are the essence of the American tradition—not of necessity the form of that tradition, but its spirit. The program itself comes from the American people. It is an integrated program, national in scope. Viewed in the large, it is designed to save from destruction and to keep for the future the genuinely important values created by modern society. The vicious and wasteful parts of that society we could not save if we wished ; they have chosen the way of self-destruction. We would save useful mechanical invention, machine production, industrial efficiency, modern means of communication, broad education. We would save and encourage the slowly growing impulse among consumers to enter the industrial market place equipped with sufficient organization to insist upon fair prices and honest sales. But the unnecessary expansion of industrial plants, the waste of natural resources, the exploitation of the consumers of natural monopolies, the accumulation of stagnant surpluses, child labor, and the ruthless exploitation of all labor, the encouragement of speculation with other people's money, these were consumed in the fires that they themselves kindled: we must make sure that as we reconstruct our life there be no soil in which such weeds can grow again. We have ploughed the furrow and planted the good seed; the hard beginning is over. If we would reap the full harvest we must cultivate the soil where this good seed is sprouting and the plant is reaching up to mature growth. A final personal word. I know that each of you will appreciate that am speaking no mere politeness when I assure you of how mach I value the fine relationship that we have shared during these months of hard and incessant work. Out of these friendly contacts we are, fortunately, building a strong and permanent tie between the legislative and executive branches of the governrnent. The letter of the Constitution wisely declared a separation, but the impulse of common purpose declares a union. In this spirit we join once more in serving the American people. FRANKLIN D. ROOSEVELT. The White House, January 3 1934. 20 Financial Chronicle Jan. 6 1934 Budget Message of President Roosevelt—Excess of Expenditures Over Receipts in Fiscal Years 1934 and 1935 Over Nine Billion Dollars—Excess Current Year More Than Seven Billions— Borrowings of 10 Billion Dollars Within Next Six Months Proposed, of Which Four Billion Will Represent Refinancing. The United States Government expects to record a deficit of $7,309,068,211 for the fiscal year ending June 30 1934, with another deficit approximating $2,000,000,000 anticipated in the following fiscal year, according to estimates in the annual budget message submitted by President Roosevelt to Congress on Jan. 4. Both figures represent approximately the totals of scheduled emergency recovery expenditures in the two years. The President indicated in his message that these deficits would be met by Government borrowing and not by new taxes, and said that the Government will undertake about 10 billion dollars of new financing within the next six months. Of this amount, Mr. Roosevelt said, 4 billion dollars will represent refunding operations and 6 billion dollars will be now financing. As a result of borrowing to meet the emergency expenditures, the public debt was estimated at $29,847,000,000 as of June 30 1934 and $31,847,000,000 on Juno 30 1935. Both figures would represent now high records. The previous peak was set in 1919 with a total debt of $26,596,701,648. With reference to the debt estimates, the President expressed his belief "that so far as we can make estimates within our present knowledge the Government should seek to hold the total debt within this amount. Furthermore, the Government, during the balance of this calendar year, should plan its 1936 expenditures, including recovery and relief, within the revenues expected in the fiscal year 1936." The President estimated total expenditures for the current fiscal year at $9,403,066,967, with additional commitments, for which he will later ask, fixed at $1,166,000,000. Total receipts for this fiscal year were estimated at $3,259,938,756. The total of so-called ordinary appropriations for the fiscal year was $3,045,520,267, and these expenditures are expected to be approixmately balanced by revenue receipts. It was generally conceded in official circles in Washington that the President's estimates of the deficit for the 1934 fiscal year might prove too high on the theory that the Government could not spend as quickly as the budget message contemplates. The estimate of receipts took no account of additional revenue to be derived from the expected increase in liquor taxes nor from other tax measures which might fortify the existing income tax laws by preventing evasions. The receipts also contained no provision for any payments on foreign debts owed to the United States. The budget message also contained an estimate of sharp gains in business during the next two years, based on the Federal Reserve index of industrial production, which fixes the 1923-25 average as 100. President Roosevelt said that compared with a figure of 67 in 1933, he estimated that the index would advance to 81 for the fiscal year 1934 and to 98 for the 1935 fiscal year. The index for 1932 was 70, while in 1931 it was 87, in 1930 it was 110 and in 1929 fiscal year was 118. The President also promised in his message to issue Executive Orders giving the Budget Bureau and the General Accounting office the same control over emergency expenditures that it now exercises over ordinary expenditures. The following is President Roosevelt's budget message: To the Congress of the United States: I transmit herewith the Budget for the year ending June 30 1935. It contains also estimates of receipts and expenditures for the current year ending June 30 1934, and includes statements of the financial operations or status of all Governmental agencies, including the Reconstruction Finance Corporation. The estimates herein given and included in the Budget have to do with general and special funds—the Government's moneys. They do not relate to trust and contributed funds, which are not Government moneys, except where expressly referred to as such. GENERAL FINANCIAL POSITION. In my annual message to the Congress I have already summarized the problems presented by the deflationary forces of the depression, the paralyzed condition which affected the banking system, business, agriculture. transportation, and, indeed, the whole orderly continuation of the Nation's social and economic system. I have outlined the steps taken since last March for the resumption of normal activities and the restoration of the credit of the Government. Of necessity these many measures have caused spending by the Government far in excess of the income of the Government. The results of expenditures already made show themselves in concrete form in better prices for farm commodities, in renewed business activity, In increased employment, in reopening of and restored confidence in banks, and in well-organized relief. THE CURRENT FISCAL YEAR (Ending June 30 1934) Exclusive of debt retirement of $488,171.500 for this year, Budget estimates of expenditures, including operating expenses of the regular Government establishments and also all expenditures which may be broadly classed as caused by the necessity for recovery from the depression will amount this year (ending June 30 1934) to $9,403,006.967. This total falls in broad terms into the following classifications: Expendituresfor Fiscal Year Ending June 101934. General: Departmental $2,899,116,200 Legislative 17,718,500 Independent establishments 616,857,067 Less public debt retirements Total, general $3,533,691,767 488,171,500 $3,045,520,267 Emergency: Public Works Administration Agricultural Adjustment Administration Farm Credit Administration Emergency Conservation Work Reconstruction Finance Corporation Tennessee Valley Authority Federal Land Banks Federal Deposit Insurance Corporation National Industrial Recovery Administration Total emergency 51,677,190,800 103,250,000 40,000,000 341,705,600 3,969,740,300 19.000,000 52,350,000 150,000,000 4,250,000 86,357,486.700 Total, general and emergency, less public debt retirements $9,403,006,967 AS against these expenditures, which have either been appropriated for or for which appropriations are asked, the estimated receipts for this fiscal year (ending June 30 1934) are $3,259.938.756. On this basis, Including, however, certain additional expenditures for 1934 which are not included In the Budget estimates but which I believe to be necessary and amounting to $1,166,000.000 as shown in a subsequent table herein, the excess of expenditures over receipts will be $7,309,068,211. Interest charges on the borrowings in excess of Budget estimates will slightly increase this figure. On the basis of these estimates, the public debt, in the strict sense of the term, at the expiration of this fiscal year will therefore amount to approximately $29,847,000,000, or an increase as shown above of $7,309,068,211. However, as against this increase in the total debt figure, It is right to point out that the various Governmental agencies have loans outstanding with a book value of $3,558,516,189 against which collateral or assets have been pledged. In order to make clear to the Congress what our borrowing problem is for the next six months, permit me to remind you that we shall have to borrow approximately six billion dollars of new money and, in addition, four billion dollars to meet maturities of a like amount. THE FISCAL YEAR 1935. (Ending June 30 1935). The Budget estimates of expenditures, exclusive of debt retirement 0 $525,763,800 and exclusive also of such sum as may be necessary for new and extraordinary recovery purposes, for the fiscal year ending June 30 1935 amount to $3.960,798,700. Again summarizing the main headings of these expenditures, they fall nto the following items: Expenditures for Fiscal Year Ending June 30 1935. General: $3,202,074,900 Departmental 18,734,500 Legislative 542,466,600 Independent establishments Less public-debt retirements Total, general Emergency: Public Works Administration Agricultural Adjustment Administration Emergency conservation work Reconstruction Finance Corporation Tennessee Valley Authority Federal land banks Total, emergency $3,763,276,000 525,763.800 $3.237,512,200 $1,089,883,100 5,000,000 65.190,000 *480,436.600 31.000,000 12,650,000 $723,286,500 Total, general & emergency,less public-debt retirements $3,960,798,700 * Excess of credits—deduct. It will be noted that many of these items such as public works fall under appropriations made in 1933, the actual expenditures not taking place until after June 30 1934. The above figures do not include additional loans by the Reconstruction Finance Corporation. If its loaning authority is extended beyond June 30 1934, it is contemplated that any additional loans by it would thereafter be taken from the new and additional recovery fund hereinafter referred to. The estimates of receipts for the next fiscal year (ending Juno 30 1935) exclusive of foreign-debt payments, of increased liquor taxes and of increased revenue flowing from amendments to the existing revenue law, amount to $3,974,665.479. Therefore, exclusive of debt retirement, these Budget estimates for the next fiscal year show a small surplus of $13,866,779. But it must be borne in mind that this surplus does not include any additional expenditures for extraordinary recovery purposes. It is clear that the necessity for relief and recovery will still be with us during the year 1934-35. Additional relief funds will be necessary. Further needs of the country prohibit the abrupt termination of the recovery program. No person can on this date definitely predict the total amount that will be needed, nor the itemizing of such an amount. It is my best judgment at this time that a total appropriation of not to exceed 2 billion dollars will, with the expenditures still to be made next year out of existing appropriations, be sufficient. I shall therefore ask the Congress for appropriations approximating that amount. This amount is not included in the Budget estimates. If appropriated and expended, therefore, it will change the small estimated surplus of 13 million dollars into a debt increase of nearly 2 billion dollars. It is only fair, of course, to say that such a debt increase would be partially offset by loans made against collateral and assets pledged. Therefore, the total debt, if increased by the sum of 2 billion dollars during the fiscal year 1935. would amount to approximately 831.834.000,000 on June 30 1935. It is my belief that so far as we can make estimates with our present knowledge, the Government should seek to hold the total debt within this amount. Furthermore, the Government during the balance of this calendar year should plan to bring its 1936 expenditures, including recovery and relief, within the revenues expected in the fiscal year 1936. Let me put it another way: The excess of expenditures over receipts during this fiscal year amounts to over 7 billion dollars. My estimates for the coming fiscal year show an excess of expenditures over receipts of 2 billion dollars. We should plan to have a definitely balanced Budget for the third year of recovery and from that time on seek a continuing reduction of the National debt. This excess of expenditures over revenues amounting to over 9 billion dollars during 2 fiscal years has been rendered necessary to bring the country to a sound condition after the unexampled crisis which we encountered last spring. It is a large amount, but the immeasurable benefits justify the cost. The following table shows expenditures and receipts for the fiscal years 1934 and 1935 as contained in the Budget, plus the additional expenditures which will be made out of additional authorizations and appropriations here recommended. It shows, also, the estimated increase in the public debt and the book value of assets held as security against loans: 1934. 1935. 2-Year Period 1934-35. $3,259,938,756 13,974,665,479 17,234,604,235 Receipts a lao Expenditures (excl. of debt retirement): 2,530,720,267 2,486,768,200 5,017,488,467 General Agricultural Adjustment Ad750,744,000 1,265,544,000 514,800,000 ministration 723,286,500 7,080,773,200 6,357,486,700 Emergency b 19.403,006,967 13,960,798,700 $13,363,805,667 Additional expenditures from additional appropriations_ Total expenditures Increase in debt c Estimated book value of assets hold no ROOliritv Cnr innna 1,166,000,000 2,000.000,000 3,166,000.000 110.569,006,967 $5,960.798.700 $16,529,805,667 $7,309,068,211 11,986,133.221 19,295,201,432 5.461.969_273 a These estimates of receipts are predicated on Federal Reserve Board average index of industrial production of 81 for fiscal year 1934 and of 98 for the fiscal year 1935: b These include net expenditures after deducting Reconstruction Finance Corporation repayments in 1935 of $480,436,600. c This figure does not include contingent liabilities such as Reconstruction Finance Corporation debentures issued to banks and other institutions. 1929 1930 1931 1932 1933 1934 1935 Calendar Year Average. Fiscal Year Average. 119 96 81 64 576 585 118 110 87 70 67 z81 598 x Partially estimated. z Estimated. APPROPRIATIONS. The Budget estimates of appropriations for 1935. exclusive of Agricultural Adjustment Administration benefit payments and refunds of processing taxes, but inclusive of all other appropriations for regular departments and independent establishments including interest on the debt and debt retirement are $2,980,293,833.60. When compared with Budget estimates of appropriations transmitted in the Budget for 1934 they show a reduction of $684,913,167. A tabular comparative summary of receipts, estimates, appropriations, and expenditures, classified according to general and emergency items and listed by departments and under other general heads, appears in Budget Statement No. 1, table B. TAXES. The estimates of receipts take no account of the additional revenue which may be obtained from an increase in liquor taxes and from the proposed changes in the income-tax law. Since neither of these tax measures has come before Congress as yet, no accurate estimate can be made of their yield. However, if as proposed by the Committee of Ways and Means, the tax on distilled spirits is increased from $1.10 a gallon to 162 a gallon, and the rates of tax on winos are also increased, the estimated revenue would be Increased by approximately $50,000,000, assuming that consumption is not affected by additional gallonage taxes imposed by the States. Considerable additional revenue can also be secured from administrative changes in the income-tax law, which may amount to as much as $150,000,000 for a full year. The estimates for the Post Office Department are predicated upon a continuation of the 3-cent postal rate for non-local mail. It is highly Important that this rate be continued. I recommend its continuance. ECONOMY LEGISLATION. The estimates of appropriations submitted in the Budget are predicated on the continuation of certain economy legislative provisions which I ask to be enacted and which are appended hereto. The most important is that having to do with reduction of compensation of Federal employees. It is eminently fair that, the cost of living having fallen as compared with 1928, the employees of the Government sustain some reduction in compensation. This is not inconsistent with our policy of advocating an increase in wages in industry. For wages there had fallen far beyond any reduction contemplated for Federal employees and in most grades are even now substantially below compensation paid Federal employees under the maximum reduction of 15%. Among the legislative provisions appended hereto is one prohibiting automatic Increases in compensation except in the Army, Navy and Marine Corps. The personnel of these three services are engaged in a life service to their country. Some, by reason of the pay freezes, have sustained reduction in compensation of more than 25%. They are, therefore, in a They different category from those in other governmental agencies should, In 1935, be released from the restrictions on automatic increases in compensation. CONTROL. Up to now there has been no co-ordinated control over emergency expenditures. To-day, by Executive order, I have imposed that necessary control In the Bureau of the Budget. Heretofore, emergency expenditures have not been subject to audit by the Comptroller General of the General Accounting Office. To-day I am, 21 Financial Chronicle Volume 138 by Executive order, reposing in him the authority to conduct such an audit and to continue to audit each such expenditure. Hereafter, therefore, Just as in the departmental expenditures, there will be, in emergency expenditures,ta pro-Budget and a post audit. By reason of the fact that the Bureau of the Budget has had no control in the past over the various expenditures, obligations, and allotments made by the emergency organizations, the task of preparing the present Budget has been the most difficult one since the Budget and Accounting Act went into effect in 1921. These difficulties, in future years, will be substantially minimized by the control which I have established. It is evident to me, as I am sure it is evident to you, that powerful forces for recovery exist. It is by laying a foundation of confidence in the present and faith in the future that the upturn which we have so far seen will become cumulative. The cornerstone of this foundation is the good credit of the Government. It is, therefore, not strange nor is it academic that this credit has a profound effect upon the confidence so necessary to permit the new recovery to develop into maturity. If we maintain the course I have outlined, we can confidently look forward to cumulative beneficial forces represented by increased volume of business, more general profit, greater employment, a diminution of relief expenditures, larger governmental receipts and repayments, and greater human happiness. FRANKLIN D. ROOSEVELT. JANUARY 3 1934. RECAPITULATION Bureau or Subdivision. Appropriations 1934. Authorized Obligations 1934. Budget Estimate, 1935, Including Restoration of One-Third of Legislatire Reduction in Compen- sation. $ $ Annual appropriations: 16,839,920.00 16,839,920.00 Legislative establishment_ _ . lb. Executive offlcoand badependent establishments, WV. ^--.--", except Veterans' Admin3,322,804,286.00 3,322,804,286.00 istration 561,893,120.00 Veterans' Administration_ 602,838,000.00 94,585.965.00 Department of Agriculture.- 200.209.091.00 42,900,000.00 A 43,269,939.00 Farm Credit Administrat'n 36,911,575.00 A 29.183,737.00 Department of Commerce 35,703,818.00 50,479,271.67 Department of the Interior.._ 34,210,799.00 41.231,835.00 Department of Justice 11,583,497.00 14,177.365.00 Department of Labor 308.669.562.00 291,978,597.00 Navy Department 713,033,378.00 639,430,029.00 Post Office Department 11,094,276.00 12,248,719.00 Department of State 0243,483,219.00 227.461,359.00 Treasury Department 349,523,278.00 269,726,900.00 War Department 5,700,000.00 85,700,000.00 District of Columbia Total annual 800.00 800.00 2,039,443.60 450,695.00 287.729.914.00 838,280,600.00 16,000.00 20,000.00 11,320,560.00 11,401,337.00 4,000.00 4,000.00 1,503,833.00 1,854,446.00 165,000.00 165,000.00 11,000.00 11,000.00 13,381,222.00 14,799,000.00 8,735.150.00 7,487,740.00 488,171,100.00 525,763,850.00 742,000,000.00 824,349,000.00 1,311,785,310.00 1,555,680,180.00 2,223,985,710.00 Trust and contributed funds: Legislative establishment_ Independent establishments, except Veterans' Administration Veterans' Administration_ Department of Agriculture_ _ Department of Commerce . Department of the Interior Department of Justice Navy Department Department of State War Department District of Columbia Total trust and contributed funds 20.357.171.00 553,210,091.00 57,388.062.00 2,389,666.00 32.282,406.00 31,209,456.00 31,165,804.00 14,044,145.00 286.332,392.00 676.849,240.00 11,011,098.00 150.527.869.00 282,432,059.00 5,700,000.00 5,961,049.499.67 5,595,466,242.00 2,172,330,551.60 Permanent appropriations: L.,111 800.00 Legislative establishment Independent establishments except Veterans' Adminis2,039,443.00 tration 48,626,571.00 Department of Agriculture_ _ 16,000.00 Department of Commerce _ 12,534.800.00 Department of the Interior- 4,000.00 Department of Labor 803,098.00 Navy Department 165,000.00 Post Office Department_. 11,000.00 Department of State 19,660,817.60 Treasury Department 8,853,460.00 War Department Retirement of the public debt d534,070,321.00 e725,000,000.00 Interest on the public debt Total permanent $ 17,431,092.60 70,000.00 V,70,000.00 62,000.00 531,000.00 70,890,000.00 1,676,545.00 1,000.00 5,704,840.00 194,500.00 20,006.00 3,607,000 00 27,373,334.00 531,000.00 68,490,000.00 1,516,141.00 1,000.00 4,841.636.00 D 100.000.00 _RW094,500.00 ilr ' 20,000.00 2,398,602.00 27,373,334.00 15,000.00 68,040,000.00 2,000,000.00 1,000.00 4,182,490.00 785,000.00 194,500.00 20,000.00 3,068,750.00 30,121,013.94 110,868,219.00 106,236,213.00 108.489,753.94 800,000.00 1 7,383,703,028.67 7,257,382,635.00 4,504,806,015.54 Grand total Deduct Postal Service payable *a —570.000,000.00 —570,000,600.00 —585,000,000.00 from postal revenues Grand total payable from 6 813 703,028.67 6,687.382,635.00 3,919,806,015.54 the Treasury a Does not include $265,000,000 for subscription to stock and payments to Federal Land banks. b Federal contributions. c Exclusive of 1855,379,811 advanced by the Secretary of the Treasury under Sec. 12 of the Act of May 12 1933. d The revised estimate Ls $488,171,500. e The revised estimate is $742,000,000. Size of Budget as Revealed in President's Message Staggers Wall Street—Federal Securities Drop Sharply, Then Rally on Official Support. President Roosevelt's budget message calling for $6,000,000,000 of new financing by the Government in the next six months in addition to $4,000,000,000, of refinancing and forecasting a total Government debt of S31,834,000,000 by June 30 1935, staggered the financial community on Jan. 4, it was noted in the New York "Times" of the following day, which went on to say: Government securities sold off sharply, but later rallied on support from official sources: the dollar, which had been strong in the morning, sank swiftly in foreign exchange: common stocks and the general bond list turned ragged and uncertain, but the commodity markets in general construed the news of further huge contemplated Government expenditures as bullish on staple prices. Among bankers there was bewilderment. One of the principal sources of uncertainty was the inability of most finnaciers to understand how the Government could dispense the large amounts called for in the periods specified. Especially among those whose financial experience has called for the disbursing of large sums, emphasis was placed upon the physical difficulties of spending the amounts contemplated in the budget. 22 Financial Chronicle Financing Held Possible. There was little doubt that the Government could actually raise the new financing called for, but it was generally felt that the process would Involve far-reaching adjustments upon the Government bond market and the general banking situation. It might call for further large purchases of Government securities by the Federal Reserve banks, many experts thought. In this connection there was speculation upon the possibility of Government recapture of the Federal Reserve System's "profits" on its gold holdings to help finance the contemplated outlay. In some quarters there was a disposition to doubt the accuracy of the published summaries of the Budget message and to believe that closer examination of the details would reveal offsets to the large borrowings and disbursements outlined by the President. Other bankers consoled themselves with the thought that the President had put forward the blackest (from thair point of view) picture of the Government's financial situation that he could paint for purposes of policy, and that the actual work of assembling the necessary legislation would reveal a brighter prospect. Many bankers found comfort in the concluding passages of the message, which revealed that control over emergency expenditures had been placed In the hands of the Bureau of the Budget. Others suggested that Congress, confronted with so staggering a program, would recoil in the direction of economy. There was rather general surprise that the reaction of the Government securities market and the foreign exchange market to the news had not been more extreme. Course of Dollar Reversed. The dollar had been strong against all foreign currencies during the morning, reflecting in part a seasonal transfer to this centre from abroad of funds which had been withdrawn just prior to the year's end for windowdressing purposes, and in part the widespread opinion that the President, in his message to Congress on Wednesday, had revealed a more conservative attitude toward dollar devaluation. Sterling had dropped to $5.07 Vc. against $5.12 the previous day. As soon as the details of the Budget measure began to appear, however, sterling soared. Within a few minutes it had rallied to $5.16, and all other foreign exchanges were similarly advancing against the dollar. This first advance was quickly turned, but the rise of the foreign currencies was resumed later in the day and closing quotations were close to the best prices of the day. In terms of the French franc, the dollar fell from a high of 63.98% of parity to 62.68% of parity, and closed at 62.73% of parity, down .34 cent net. The franc finished at 6.245 cents, up 33 points; guilders at 63.90 cents, up 28 points; Swiss francs at 30.80 cents, up 9 points, and the Canadian dollar at 18 points above premium, up 45 points. The belief that the Government could succeed in raising the $6,000,000,000 of new money called for in the next six months was based partly on the availability of large purchases by the Federal Reserve System, if needed, and partly on the opinion that the commercial banks of the country, which always absorb the bulk of Government security offerings, had little choice in the matter but to subscribe to new Government financing. Excess Bank Reserves Heavy. For more than a year the banks of the country have been concentrating their investments upon the Government securities market because of their desire for liquidity and because of the scarcity of safe commercial loans and investments. At the present time the leading banks in New York City hold Government securities to the extent of more than one-third of their total deposits, and in the case of many banks the proportion runs much higher. Under these circumstances, and apart from any motives of patriotism, there is no disposition on the part of the banks to refuse to subscribe to new Government issues, thereby opening up the possibility of a decline in the prices of the e:cisting issues that they hold. But beyond this factor, there is the circumstance that the banks have nothing to lose and everything to gain in buying more Government securities. The member banks of the Federal Reserve System have at the present time upward of $850,000,000 of excess reserves, which, under the system of deposit credits used by banks In buying Government securities, could theoretically finance the purchase of $8,500,000,000 of new Government securities. In subscribing to new Government issues the banks do not pay cash; they merely credit the Treasury with a deposit on their books equal to the amount of their subscriptions. These deposits require no reserves. As the Treasury withdraws the money and spends it, however, the deposits created by the banks in subscribing to the new issues become transferred to private individuals and corporations, and must then be secured by the usual reserve balances. It was remarked that banks had already shown a tendency to depart further and further from the practice of employing the bulk of their funds In commercial enterprises, and that this tendency might be greatly advanced if an additional $6,000,000,000 of Government securities or the major part of this amount came into the commercial banks in the next six months. Jan. 6 1934 London Amazed by United States Budget Deficit— "Prosperity by Extravagance" Remarks Newspaper in Contrasting British Methods. From London Jan. 4 the New York "Times" reported the following: The staggering proportions of the deficit indicated in President Roosevelt's Budget message, twice the size of the whole expenditure of the British Treasury, was breath-taking to most of the London newspapers. That is probably why the London "Times" withholds its comment on a matter considered here to be of far greater importance than the President's message of yesterday to Congress. Under the heading, "Prosperity by Extravagance," the Liberal "News-Chronicle" points out that Britain attempted to end her crisis by balancing the budget, but that President Roosevelt is trying to do the same thing by deliberately unbalancing the United States budget. "America, in its war on the depression," the "News Chronicle" says. "is spending on a war-time scale. Let us hope she avoids the financial aftermath of such extravagance." "The Imagination Boggles." Lord Rothermere's "Daily Mail" says: "The imagination boggles at the extent of the deficit now contemplated. Beside it, our own prospective deficit of 1931-32, wiped out by the National Government's emergency budget, is as a mere trickle to Niagara, though It must be remembered that an unbalanced budget would have been a far more serious matter for a country like Britain." Referring to President Roosevelt's plan for a balanced budget for the third year of recovery effort, the "Daily Mail" remarks that the "President will be at the end of his term in the third year of recovery." "If he is re-elected for a second term," the newspaper continues, "it will be his task to begin paying for it." The Conservative "Daily Telegraph" says the whole recovery program is "a gallant defiance of orthodoxy." "Obviously, the situation is one of immense gravity, but there is nothing new in that," the newspaper continues. "President Roosevelt is leading the Nation in a desperate fight for economic self-preservation, and this is merely the translation into the terms of Governmentfinance of an emergency of which all are ConsCi0118 and which all are facing with unshaken courage. The situation is in no way comparable with anything in our own experience. "It will be noted in America that the recovery deficit of $9,000.000,000 is approximately the same sum by which the debt was reduced during the ten good years following the World War." sm. "War-Like Daring." Lord Beaverbrook's "Daily Express" says: "President Roosevelt goes to war against the slump with warlike daring and wartime finance. His budget is in the Armageddon of 1918 class: it reminds you of Russia's five-year plan with its 'war propaganda of farm fronts,' and 'steel production offensives': even of 'the third decisive year of the plan.' If President Roosevelt can harness the individual initiative and organizing genius lacking in Russia to that Slav conception he may get a long way forward." The Conservative "Morning Post," saying that President Roosevelt "proposes to spend money on a scale only equaled in Britain during the later and more extravagant days of the war," suggests that he is taking considerable risks, since he is "mortgaging the future on the hope of recovery, and if he fails the country will be saddled in the end with a vast burden of debt for nothing." "It is devoutly hoped that for America's sake, in addition to Britain's, the history which he is so boldly making will be fraught with no untoward consequences," the newspaper concludes. Recalls a Fabulous State. The "Financial News" observes that "the only thing we can recall which can compare with this was in the contents of a mock prospectus compiled for a festive occasion by a well-known banking house for a loan to the State of Impecuniosite, whose sole import was cash and whose sole export was bonds." The "Financial Times," under the heading "An Astronomical Deficit," says: "The Soviet may feel somewhat jealous of Roosevelt this morning for having infringed on its copyright. The United States now has a clearer idea of what it is expected to do and endure. It is adventuring under Roosevelt on a 'three-year plan' largely financed by a Government expenditure of a vastness without precedent, nor does there seem any strong political ground from which he can be attacked. "The reception given by Americans to his scheme confirms the earlier impression that he is accepted as a prophet of a new order. What that order is to be and Roosevelt's resultant place in history will be more readily calculable a couple of years hence. He has embarked truly on a very great experiment." Indications of Business Activity THE STATE OF TRADE—COMMERCIAL EPITOME. Friday Night, Jan. 5 1934. Business activity holds remarkably steady. Retail trade continues strong and wholesale markets are more active. Steel output and carloadings showed a sharp seasonal decrease but electric power output and bank clearings continue to show moderate increases. Retail sales have been nearly on a par with last week. The usual seasonal falling off was evident in only a few districts. Prices were steady. There was a good demand for heavy wearing apparel, overshoes, seasonal automotive accessories and hardware and there was a good sale of electical supplies and household furnishings. In the wholesale market there was a good demand for wearing apparel as well as staple lines. Dry goods orders were heavier. So were those in the cotton goods gray cloth division. Hardware was in good demand. Total sales of many of the hardware retailers in December were the largest since 1930. Canned goods were being shipped in fair-sized quantities. The weekly food indices show a rise for the week. Declines in corn, barley, butter, eggs and hogs were more than offset by advances in wheat, rye, oats, hams, bellies, lard, coffee, potatoes, cattle, sheep and lambs. Commodity prices continued their upward trend reflecting improved speculative sentiment and favorable reports concerning December business and 1934 prospects. Metals and building materials showed moderate recessions. Food markets were stronger owing to the recently cold weather which retarded the movement of many commodities. Raw cotton quotations showed a rise of 22 to 26 points for the week reflecting some improvement in the statistical position and indications that the Government loan plan is meeting with some success. Grain prices were firmer with a broader outside demand influenced by bullish news from Washington. Coffee futures were active and higher on buying based on better conditions in Brazil and reported crop damage in Colombia owing to heavy rains. Butter also advanced with receipts small and demand spotty and mostly speculative. Volume 138 23 Financial Chronicle Eggs showed strength. Flour continued quiet and fluctua- showed increases over the 1932 period. Comparative statistions were governed by the movement of wheat prices. tics follow: AND RECEIVED FROM CONNECTIONS. • Lambs and sheep at Chicago were higher. Receipts of live- REVENUE FREIGHT LOADED (Number of Cars). to stock at the principal markets were much smaller owing Re,c'd from Comitaions. Loaded on Lints. cold weather. Hides were stronger and packer hides rose Weeks Ended. Dec. 30 Dec. 24 Dec. 31 Dec. 30 Dec. 23 Dec. 31 3/2-43. on a better demand. Cotton goods were more active 1933. 1933. 1932. 1933. 1933. 1932. and firmer. Wool remained firm. 13,393 16,881 12,875 3,272 3,714 2,531 By Fe Santa & Topeka Atch. it as rapidly as -end The thermometer rose over the week 15,373 18,505 15,211 4,645 5,397 3,930 Chesapeake & Ohio By Chic. Burlington & Quincy RR 11,763 14,037 9,859 4,351 5,129 3,787 had fallen the previous week. Warmer weather prevailed Chic. Milw. St. Paul & Pacific By 13.332 15,510 11,895 4,420 5,193 4,218 of part good a and country the throughout _ _ Ry_ Western 10,116 12,115 8.851 6,374 7,668 5,665 week North & Chicago the during 768 1,549 1,838 1,686 1,178 1,265 Gulf Coast Lines & subsidiaries Canada. On Monday a cloudburst in the vicinity of Los International Great Northern RR 1,879 2,165 1,310 1,253 1,577 1,268 3,565 4,251 3,549 2,002 2,358 1.460 Lines Angeles brought death and destruction into southern Missouri-Kansas-Texas 10,513 12,226 10,116 5,197 6,172 4,492 Missouri Pacific RR 32,811 36,880 28,601 40.730 51,659 37.896 Central Lines California; 40 persons lost their lives and numerous others New York New York Chic..4 St. Louis Ry_ 3,092 3,391 2,650 6,017 7.640 5,381 12.302 14,489 11,309 2.470 2,712 2,164 were reported lost. The heavy rains caused floods, bringing Norfolk & Western By 44,715 51,546 40,994 24,153 29,006 22.317 Pennsylvania RR. System great property and crop damage, at least 24 bridges, includ- Pere 3,382 4,047 3,806 Marquette Ry 14,281 17,584 12,169 Pacific Lines ing railroad structures, were washed out. Heavy rains fell Southern 3,987 4,631 3,806 5,185 6.764 4,824 Wabash Ry in many parts of the country during the week and in New 230,096 178,687 111,247 138,254 100,701 196,053 Total York the warmer weather and rains melted practically all of x Not available. the ice and snow. On Thursday many persons were injured TOTAL LOADINGS AND RECEIPTS FROM CONNECTIONS. and a number of homes razed by two tornadoes which hit (Number of Cars.) waterfront, Pensacola, Fla. Outside of the damage to the Dec. 30 1933. Dec. 23 1933. Dec. 311932. Ended. Weeks however, no damage was reported from the inland. Last 19.001 22,392 22,535 System Central Illinois to damage great week's severe cold snap did not cause any 8,649 11,290 10,154 St. Louis-San Francisco By winter crops as was expected. To-day it was 32 to 41 27.650 33.682 32.689 Total degrees here and raining. The forecast was cloudy and Loading of revenue freight for the week ended on Dec. 23 warmer. Overnight at Boston it was 22 to 32 degrees, Railway Association Baltimore, 36 to 38; Pittsburgh, 38 to 46; Portland, Me., 1933 totaled 527,067 cars, the American of 27,765 cars decrease a was This 29. Dec. on announced 18 to 20; Chicago, 38 to 42; Cincinnati, 42 to 50; Cleveland, this year, but was an increase 36 to 46; Detroit, 32 to 42; Charleston, 52 to 54; Milwaukee, below the preceding week, week in 1932, also an increase of 34 to 38; Dallas, 38 to 46; Savannah,50 to 54; Kansas City, of 32,557 above the same week in 1931, when corresponding the above cars 86,168 Mo.,32 to 34; Springfield, Mo., 32 to 40; St. Louis, 38 to of the Christmas inclusion the to owing reduced were loadings Salt 46; to Lake 26 Denver, 36; to 32 Oklahoma 48; City, follow: Details holiday. City, 30 to 42; Los Angeles, 56 to 76; San Francisco, 52 to Miscellaneous freight loading for the week of Dec. 23 totaled 182.528 66; Seattle, 46 to 54; Montreal, 2 to 10, and Winnipeg, cars, a decrease of 9.436 cars below the preceding week, but 43.997 cars 2 to 16. above the corresponding week in 1932 and 37,315 cars above the correWorld at Large Has Improved Its Position Over a Year Ago According to Alfred P. Sloan, Jr. of General Motors Corp. In a new year's statement, Alfred P. Sloan, Jr., President of the General Motors Corp. states that "irrespective of how we may react individually to the various economic proposals of the year, dramatic as they have been and full of possibilities in their influence on our future, to my mind one fact rises above the mass of conjecture, theories and experiments that we have before us. That fact is the world at large has materially improved its position, and has been improving it for over a year." Mr. Sloan contends that "we are better off on practically all counts than we were a year ago." "Naturally," he says, "this improvement could not, in such a short interval of time, be reflected throughout our entire economic structure. That would be expecting too much. But we must appreciate that such a trend, having definitely manifested itself, is bound to gain momentum as time passes. We can manage our affairs so as to accelerate or retard this movement but in the long run it is bound to assert itself." Mr. Sloan further says: I referred to the proposals of the year and their influence. in an economic sense, on our future. I have a very strong conviction that all such proposals should be intensively examined, without prejudice and with an open mind; that industry should co-operate with Government, having the objective of perpetuating those things that give promise of improving our social order and of eliminating those things that do not appear to give such a promise. Experimentation can be conducted blindly or with an open mind. In the same way reliance upon past experience can be blind or open minded. We are living in a era characterized by swift movements-social as well as economic. We must strive to keep both an open mind and an open heart. If all do so, I am sure that we will preserve in a wholesome sense the initiative, courage and aggressiveness of the individual. After all, it is these qualities that have made this country what it is, with a standard of living that is the envy of all other peoples of the world. These qualities are not to be blindly exalted but intelligently nourished. Looking forward into next year, no one can possibly be so wise as to predict with certainty the trend of business activity. There are many important influences that may be arbitrarily used-the economic consequences of which will have an all important bearing. So far as I an concerned, in view of existing circumstances, that is as it should be. Further I am satisfied that what is done will be actuated by the most sincere desire to promote the common good and that with it all American democracy will find abundant courage to deal with those proposals which will not stand the acid test of analysis and experience. Revenue Freight Car Loadings Maintain Gains Over Same Period a Year Previous. The first 16 major railroads to report for the week ended Dec. 30 1933 (which included the Christmas holiday), loaded 196,053 cars during that period, compared with 230,096 cars in the preceding week and 178,687 cars in the week ended Dec. 31 1932. With the exception of the Gulf Coast Lines and the Pere Marquette Ry., aElof these carriers sponding week in 1931. Loading of merchandise less than carload lot freight totaled 155,179 cars, a decrease of 4,234 cars below the preceding week, but 889 cars above the corresponding week last year, and 4,738 cars above the same week two years ago. Grain and grain products loading for the week totaled 24.423 cars, a decrease of 5.387 cars below the preceding week, and 945 cars below the corresponding week last year, but 3,909 cars above the same week in 1931. In the Western districts alone, grain and grain products loading for the week ended Dec. 23 totaled 15,526 cars, a decrease of 661 cars below the same week last year. Forest products loading totaled 17,877 cars, a decrease of 2,010 cars below the preceding week but 5,221 cars above the same week in 1932. and 4,187 cars above the same week in 1931. Ore loading amounted to 3,736 cars, an increase of 367 cars above the preceding week, 1,833 cars above the corresponding week in 1932 and 131 cars above the same week in 1931. Coal loading amounted to 121,65Q,cars, a decrease of 3.618 cars below the preceding week. and 19,250 cars below the corresponding week in 1932. but an increase of 32,006 cars above the same week in 1931. Coke loading amounted to 6,743 cars, a decrease of 908 cars below the preceding week. but 113 cars above the same week last year, and 2.382 cars above the same week two years ago. Live stock loading amounted to 14,931 cars, a decrease of 2,539 cars below the preceding week, but 699 cars above the same week last year, and 1,500 cars above the same week two years ago. In the Western districts alone, loading of live stock for the week ended Dec. 23 totaled 11,267 cars, an increase of 388 cars compared with the same week last year. All districts reported increases for the week of Dec. 23, compared with the corresponding week in 1932 except the Pocahontas. which showed a small reduction. All districts reported increases compared with the corresponding week in 1931. Loading of revenue freight in 1933 compared with the two previous years follows: Four weeks in January Four weeks in February Four weeks in March Five weeks in April Four weeks in May Four weeks in June Five weeks in July Four weeks in August Five weeks in September Four weeks in October Four weeks in November Week ended Dec. 2 Week ended Dec. 9 Week ended Dec. 16 Week ended Dec. 23 Total 1931. 1933. 1932. 1,910,496 1,957,981 1,841,202 2,504,745 2,127,841 2,264,379 3,108,813 2,502,714 3,204,551 2,605,642 2,366,097 495.425 537,603 554,832 .527,067 2,266.771 2,243,221 2,280,837 2,774,134 2,08%1,088 1,966,488 2,420,985 2,064,798 2,867,370 2,534,048 2,189,930 547,095 520,607 515,769 494,510 2.873.211 2,834,119 2.936,928 3,757,863 2,958,784 2,991,950 3,692,382 2,990.507 3,685,983 3,035,450 2.619,309 636,366 613,621 581,170 440,899 28.510.288 27.774.651 36.648.522 In the following table we undertake to show also the loadings for the separate roads and systems for the week ended Dec. 23. During this period a total of 93 roads showed increases over the corresponding week last year, the most important of which were the Pennsylvania System, the Baltimore & Ohio RR., the New York Central RR., the Atchison Topeka & Santa Fe Ry., the Union Pacific System, the Chicago Milwaukee St. Paul & Pacific Railway, the Chicago Burlington & Quincy Railroad, the Missouri Pacific Railroad, the Southern Pacific Co. (Pacific Lines), the Chicago & North Western Ry., the Reading Co. and the Erie RR. 24 Financial Chronicle Jan. 6 1934 REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED DEC. 23. Total Revenue Freight Loaded. Railroads. 1933. 1932. 1933. 1,200 2,637 5.937 507 2,177 8,730 412 210 4,623 9,269 1,951 2,292 11.027 930 209 4.218 8,399 1,750 1,815 9,987 827 25,923 23,744 21,600 30.302 27,205 Group BDelaware & Hudson . Delaware Lackawanna & West Erie Lehigh & Hudson River Lehigh & New England Lehigh Valley Montour New York Central . New York Ontario ev Western _ Pittsburgh & Shawmut Pittsburgh Shawmut dr Northe a 6,102 8,444 11.755 147 1,270 8,140 1,543 17,610 1.998 447 374 6,180 8,284 10.787 126 1.670 8,096 1,615 16,492 2,184 466 299 3.788 6.612 8,700 92 1,102 5.475 1.104 14,208 1,396 368 320 6.078 5,317 11,909 1,645 945 5,965 24 24,984 2.108 30 207 5,253 4,470 11,627 1,672 756 5,805 17 22,879 1.867 31 193 . 57,830 56,199 43,255 59,212 54,570 365 1,331 7,172 15 178 190 1,014 2,322 4,759 3,306 3,078 3,881 2,719 951 4,425 2.699 449 1,303 6,189 28 154 171 944 2,287 4.653 3,200 3,103 3,391 2,280 870 3,922 1.791 41,556 38.405 34,735 54,902 54,711 Grand total Eastern District_ . 125,309 118,348 99,590 144,416 136.486 24,513 1,039 280 5,405 5 359 211 857 51,546 11.789 5,535 98 3,062 1.036 22.590 666 211 5,586 2 277 281 880 47,856 11,698 3.030 89 2.757 963 20,690 1,042 144 4,959 44 273 162 819 46,746 9,698 4,484 45 2,117 c 11.407 1,179 5 10,067 50 15 18 2,578 29,006 14,118 916 11,009 670 5 9,171 55 19 7 2,657 27,348 12.831 702 4,764 1,453 3,328 1,435 105,715 96,886 91,223 75.576 69,237 I 1,271 2.746 7,023 522 2,321 9,388 473 I I I I _ Total Total Group C Ann Arbor Chicago Ind. de Louisville..... Cleve. CM. Chic. dr St. Louis_ Central Indiana Detroit & Mackinac Detroit & Toledo Shore Line. Detroit Toledo & Ironton Grand Trunk Western Michigan Central Monongahela New York Chicago dr St. Lo Pere Marquette Pittsburgh & Lake Erie Pittsburgh & West Virginia... Wabash Wheeling ,k Lake Erie • Total Allegheny District. Baltimore & Ohio • Bessemer & Lake Erie • Buffalo Creek dr Gauley Central RR. of New Jersey_._ Cornwall Cumberland & Pennsylvania_ Ligonier Valley Long Island Pennsylvania System Reading Co Union (Pittsburgh) West Virginia Northern Western Maryland c Penn-Read Seashore Lines._ Total Pocahontas District. Chesapeake & Ohio Norfolk & Western Norfolk & Portsmouth Belt Lin Virginian Total Southern District. Group AAtlantic Coast Line Clinchfleid Charleston dc Western Carolina Durham & Southern Gainesville & Midland Norfolk Southern Piedmont & Northern Richmond Frederick. & Potom. Seaboard Air Line Southern System Winston-Salem Southbound 846 903 1,368 1,494 9,759 10,742 28 59 77 79 2,515 2,761 976 • 1.027 5.934 5,688 8,126 8,325 162 113 7.640 7,044 4,018 4.663 3,832 3,939 686 432 6.764 6,067 2,033 1,513 18,505 14.489 715 3.273 19,511 15,121 548 3,253 12,488 11,184 517 2,453 5,397 2,712 1,106 384 5,295 2,753 846 487 36,982 38,433 26.642 9,599 9,381 7,776 1,034 271 170 41 1,165 405 263 6,776 16,221 118 6,174 1,055 285 121 44 1.205 416 254 5,548 16.286 134 6.108 541 276 134 51 1,121 347 285 5,245 14,712 126 3,948 1,120 692 199 57 995 674 2,450 3.104 9,546 518 3,413 1,184 637 221 52 844 632 2,374 2,700 9,276 465 Total Revenue Freight Loaded. Railroads. 1932. v. owwv,,,ow.ogovv.owm 1931. .1, 14 COM0e0W1 ./.02,00MN.4 Eastern District. Group ABangor & Aroostook Boston dr Albany Boston dr Maine Central Vermont Maine Central New York N. H. & Hartford_ Rutland Total Loade Received from Connections. Total Leads Received from Connections. 1933. 1932. 1931. 1933. 197 641 580 2,936 197 783 587 343 1,204 15,970 14,520 104 144 1,6091 2,143 ' 169 527 502 2,546 159 757 559 238 979 17,325 15,736 111 99 1,504 1,985 197 490 517 2,315 216 894 568 235 1,107 13,793 11,556 83 95 1,511 1,822 154 595 897 1,934 193 488 997 326 590 6,955 3,192 339 177 1.090 1,750 -3:17 7 -566 -864 720 42,260 43,543 35,727 20,201 17,822 Grand total Southern District.. 76,500 75,065 64,673 43,504 39,620 Northwestern District. Belt Sty. of Chicago Chicago dr North Western Chicago Great Western Milw, St. Paul & Pacific. Chic. St. Paul Minn.& Omaha. Duluth Missabe & Northern... Duluth South Shore & Atlantic Elgin Joliet dc Eastern Ft. Dodge Des M. dr Southern. Great Northern Green Bay & Western Minneapolis dr St. Louis Minn. St. Paul & S. S. Marie Northern Pacific Spokane Portland & Seattle 591 12,115 2,181 15,510 3,289 529 482 3.791 233 6,627 456 1,538 3,707 7,316 826 443 10.985 1,958 15,023 2,877 361 420 2,309 201 6,822 439 1,489 3,806 7,730 599 574 9,876 1,820 13,001 2,399 337 334 2,918 205 5,535 337 1,279 3,338 6,557 578 1,362 7,668 1,962 5,193 2,023 131 338 3,756 109 1,565 300 1,225 1,571 1,599 884 861 6,994 1,974 5,755 1,865 57 347 3,874 124 1,179 298 1.207 1,322 1,430 710 59,191 55.462 49,088 29.686 27.997 16,881 2,277 167 14.037 9,681 2,862 1,476 3,010 299 1,115 411 138 12,104 320 348 12,582 512 1,370 15,733 2,451 210 12,142 9,417 2,626 957 3,118 305 816 300 102 9.274 224 242 10,154 1.104 827 16,124 2.474 96 11,638 0,700 1,951 1,156 2,648 293 1,509 309 65 9,025 190 162 10,070 789 1,009 3,714 1,428 29 5,129 5.318 1,499 826 1,650 7 853 258 55 2,796 306 762 5,394 10 1,109 3,166 1,352 29 4,743 5.027 1,639 616 1,432 2 831 212 49 2,628 214 589 4.949 79,590 70,011 69.208 31,143 28.606 114 116 207 1,838 89 113 166 2,077 123 87 226 a1,928 2,779 362 162 1,265 2,499 333 70 696 Group BAlabama Tenn. & Northern__ Atlanta Birmingham & Coast__ Atl.& W.P.-West. RR.of Ala Central of Georgia Columbus & Greenville Florida East Coast Georgia Georgia & Florida Gulf Mobile & Northern Illinois Central System Louisville dr Nashville Macon Dublin & Savannah Mississippi Central Mobile & Ohio Nashville Chatt. dr St. Louls d New Orleans-Great Northern_ Tennessee Central Total Total Central Western District. Atch. Top.& Santa Fe System_ Alton Bingham de Garfield Chicago Burlington & Quincy Chicago Rock Island dr Pacific. Chicago & Eastern Illinois Colorado & Southern Denver & Rio Grande Western_ Denver & Salt Lake Fort Worth dr Denver City Northwestern Pacific Peoria & l'ekin Union Southern Pacific (Pacific) St. Joseph & Grand Island Toledo Peoria dr Western Union Pacific System Utah Western Pacific Total Southwestern District. I Alton de Southern Burlington-Itock Island Fort Smith & Western Gulf Coast Linea b Houston & Brum International-Great Northern.. Kansas Oklahoma & Gulf Kansas City Southern LouIsiana & Arkansas Litchfield & Madison Midland Valley Missouri & North Arkansas..._ Missouri-Kansas-Texas Lines Missouri Pacific Natchez de Southern Quanah Acme & Pacific St. LoulaSn Francisco St. Louis Southwestern b San Antonio Uvalde dr Gulf._ Southern Pacific in Texas & La_ Texas & Pacific Terminal 12R. Assn. of St, Louis Weatherford ls,lin.Wells & N.W. 6661 1:iia 1932. 123 490 706 1,641 157 381 975 251 543 8.514 2,490 276 165 946 1,444 9 1.119 2;i66 1:566 198 1.445 1,048 421 519 78 4.251 12,226 45 135 8,820 1,738 241 1,211 785 365 655 46 3,893 11,459 39 89 6,527 1,721 244 1,211 1,076 244 698 36 3,988 11,516 31 98 6.308 1.987 5:466 4;666 4;955 1:iii 3,136 1,286 18 3,581 1,253 13 1:555. 3,705 1,205 26 2,799 1,809 33 2.232 1,822 39 1:iii 1:665 671 1,134 554 734 168 228 2,408 6.172 731 1,102 478 390 115 210 1,779 5,449 12 01 2,232 979 112 2,823 1.266 21,708 23,303 28.946 31.522 Total 34.240 40,305 40,476 43,780 28,802 23,841 a Estimated. b Included in Gulf Coast Lines. c Pennsylvania-Reading Seashore Lines include the new consolidated lines of the West Jersey & Seashore RR., formerly part of Pennaylvanla RR.,and Atlantic City RR., fo marl) , Part of Reading Co.; 1931 figures included in Pennsylvania System and Reading Co. d Included in Gulf Mobile & Northern RR. * Previous week's figures. Total Federal Reserve Board's Summary of Business Conditions in the United States-Reports Little Change in Volume of Industrial Production During November and First Half of December-Factory Employment and Payrolls Lower. "Total volume of industrial production, after declining further during October, showed little change during November and the first half of December," states the Federal Reserve Board in its summary of business conditions in the United States. The Board says that "tho amount of construction undertaken continued to increase, reflecting an expansion of public works." In its summary, the Board further said: Production and Employment. Output of basic commodities, as measured by the Federal Reserve Board's seasonally adjusted Index, was 73 for November, on the basis of the 19231925 average as 100. compared with 77 for October. This total for the month reflects the maintenance during November. with allowance for usual seasonal changes, of the level reached at the end of October after a continuous decline during the preceding three months. Activity at steel mills, after declining from 44% of capacity in the early part of October to 25% in the early part of November, subsequently increased' to a rate of 34% In the third week of December. Output of automobiles, which was curtailed sharply in November In preparation for new models, also increased somewhat in the early part of December. Consumption of cotton by domes- tic mills was In somewhat smaller volume in November than In the preceding month and activity at woolen mills decreased. At shoo factories production showed a decline larger than is usual at this season. Volume of factory employment and payrolls declined from the middle of October to the middle of November by somewhat more than the usual seasonal amount. The board's seasonally adjusted Index of factory employment for November was 72, as compared with 74 In October and 57 at the low point in March. Value of construction contracts awarded, as reported by the F. W. Dodge Corp., showed a further substantial increase In November. This increase, at a season when construction contracts usually decline, reflects a growth in the volume of public works. Distribution. Shipments of commodities by rail decreased In November as compared with October by an amount somewhat smaller than Is usual at this season. Sales of merchandise at department stores declined, contrary to seasonal tendency, while sales by variety stores showed little change. Wholesale Prices. Wholesale commodity prices, as measured by the weekly Index of the Bureau of Labor Statistics, advanced from 70.9% of the 1926 average In the first week of November to 71.7% In the third week and then dedined to 70.9% in the week ended Dec. 9. These movements reflected chiefly changes In the prices of farm products and foods. Prices of hogs declined considerably after the middle of November, owing partly to seasonal factors. Foreign Exchange. The value of the dollar in the foreign exchange market advanced from a low point of 59% of its gold parity on Nov. 16 to about 64% for the period from Nov. 27 to Dec. 20. Financial Chronicle Volume 138 Bank Credit. Between Nov. 15 and Dec. 20 there was the usual seasonal increase. about $195,000,000, in the demand for currency by the public. This currency demand was met largely through the purchase of $100,000,000 of acceptances by the Federal Reserve Banks and the issuance of additional bank notes by the National banks. Reserve balances of member banks showed little change for the period and continued to beat a level of about $800,000,000 above legal requirements. Total loans and investments of reporting member banks in leading cities declined by $160,000,000 between Nov. 15 and Dec. 13, reflecting chiefly sales of acceptances to the Reserve Banks and a reduction in holdings of investments other than United States Government securities. Loans on securities, chiefly to brokers in New York City, increased by $40,000,000. while all other loans, which include holdings of acceptances, declined by • $125,000,000. Short-term money rates advanced slightly during the period. Indexes of Business Activity of Federal Reserve Bank of New York. The New York Federal Reserve Bank, in presenting in its Jan. 1 "Monthly Review" its monthly indexes of business activity, reports that "some slight increase from November to December in the general level of trade and business activity was indicated by the available data." Continuing, the Bank says: The railroad movement of merchandise and miscellaneous freight receded by less than the usual seasonal amount, and this Bank's seasonally adjusted index covering this type of freight traffic showed a moderate upward tendency during the first half of December, after holding steady during the previous three months. The holiday trade of department stores in the New York Metropolitan area made a more favorable comparison with 1932 than did November business, but sales in December 1932 were relatively poor. General business activity appears to have remained fairly stable during November. This Bank's indexes of railroad freight traffic showed little change from October to November. but a moderate downward tendency was indicated by the various indexes of retail trade. Department store sales Increased by considerably less than the usual seasonal proportions, although reports of sales in the agricultural districts of the country were more favorable than in the urban and industrial sections. Sales of chain stores and mail-order houses showed no marked change other than seasonal. (Adjusted for seasonal variations, for usual year to year growth, and Where necessary for price changes.) 1933. 1932. Nov, Sept. Oct. Nov. Primary Dtstrialaton— Car loadings. merchandise and mIscellaneous___ Car loadings, other Exports Imports Waterways traffic Wholesale trade 54 53 43 58 42 75 55 60 51 63 55 82? 56 56 565 659 48 76r 56 57 53p 609 Distribution to Consumer— Department store sales, 2nd District Chain grocery sales Other chain store sales Mall order house sales Advertising Gasoline consumption Passenger automobile registrations r 72 64 70 62 54 78 24? 66 55 78 61 .57 72 55r 73 53 70 64 58 71 51r 67 51 70 63 54 42 67 39 .53 82 63 101 30 79 49 59 47 78 56 113 72 76 58 24 70 43 575 46 77 66 90 72 76 56 29 69 44 .55p 43p 72 51 75 73 74 59 42 69 130 General price levels 177 Composite Index of wages' 132 Cost of living* Revised. • 1913 average=100. V Preliminary. r 133 177 135 1339 1775 136 1339 1789 136 General Business Activity— Bank debits, outside of New York City Bank debits, New York City Velocity of bank deposits, outside of N. Y. City _ Velocity of bank deposits, Now York City Shares sold on N. Y. Stock Exchange Life insurance paid for Employment in the United States Business failures _ Building contracts Now corporations formed in N. Y. State Real estate transfers 78 National City Bank of New York Finds Reports from Trade and Industry in Closing Month of Year Best Since Early Summer—Awards of Building Contracts Greater—Sentiment for First Quarter Hopeful. "Reports from trade and industry during the closing month of 1933 have been the best since early summer," says the National City Bank of New York, in its "Monthly Letter" dated Jan. 2. The Bank notes that "awards of building contracts in all classifications have been greater than in November, the daily average increase in the first half of the month having been 40%." "Compared with a year ago," says the Bank, "the increase was 200%. The autobomile manufacturers have increased production on new models. November sales were more than double a year ago, dealers' stocks are very low, and this industry will give steadily increasing support to general business in the next three months." The Bank continues: Other measures of general business activity, including freight car loadings and electric power production, have made a better showing than is normally expected In December. Rising totals of car loadings were reported in the first half of the month, an unusual occurrence this late in the year. All this is evidence that a halting point has been reached In the decline in business which has been under way since July. The improvement has come precisely where it is needed to give balance to the industrial situation, since it is in the heavy industries that most of the unemployment is concentrated. Moreover, the reports of Christmas retail trade have surpassed expectations, and are extremely heartening to some of the industries which have been curtailing since summer for want of a better consumer demand. Department store sales have made their best showing since August. The gain in dollar sales during the first half of December, compared with 1932, was 18%, 25 according to a survey by the National Retail Dry Goods Association, and other reports indicate that during the second half of the month the increase may have been larger. Figures for the mail order houses and general merchandise chains are not generally available beyond November, but in that month sales were in some cases 25% larger than last year, and the December reports are favorable. These gains, to be sure, are accounted for in considerable degree by higher prices. But the figures are impressive by contrast with the three months preceding. when the gain in dollars was nominal and the volume of goods moved was obviously much below the corresponding 1932 levels. Sentiment for First Quarter Hopeful. Business sentiment has been encouraged by these reports. Despite existing confusion and uncertainty, merchants and manufacturers in nearly all lines see reason to look forward hopefully to the early months of 1934. Since midsummer the surplus of goods put on the market during the short-lived boom has been reduced, and as the necessary adjustments of supply and demand are completed in each industry each may be expected to show improvement, such as has already occurred in steel. Along with this natural recovery, the stimulating effects of the Government expenditures in the construction industries, and through the Civil Works Administration and other daannels, will be experienced in increasing degree as spring approaches. These are two influences for better business in the coming quarter. It is a notable feature of the situation, looking back over the past six months, that neither the controversies set going by the economic policies of the Government, nor the declines in trade and industry since July, have materially weakened the general belief that business is on the road out of the depression. The economic policies are now in the experience of business men, and are in certain respects the objects of criticism by economists and business leaders. The continued inability of industry to obtain capital through new security offerings, which interferes with the planning of new enterprises and with replacement undertakings that would require new financing, is an obvious handicap upon expansion. But even among those who feel uncertainty in these particulars, the belief that the long-time trend is upward has sustained confidence. The fall recession was accepted as inevitable. Recognizing the special influences that caused the upswing last spring and summer to go too fast and far, and led to an excess of speculative buying, business men viewed the reaction as a natural corrective rather than as a cause for fresh pessimism. Their hopeful attitude has been fortified by the December reports. Wage and Price Relationships. In examining the progress of business during 1933, the most important point of inquiry is whether relationships within the economic system have been brought into better balance, or whether, on the contrary, the gains in trade and production have been due to a stimulus of artificial character, whose effects will last no longer than the stimulus lasts. A state of equilibrium in economic relationships is essential if prosperity is to be restored, and this is equally true whether the economic system is, at one extreme, an entirely voluntary organization operating under free economic forces or, at the other, wholly under governmental control. There is no disagreement as to the necessity of restoring the equilibrium, but only as to what readjustments are required and the methods of effecting them. Outstanding among the changes in economic relationships in 1933 are two: a part—unfortunately a small part—of the unemployed have been put back to work, at higher wage scales; and prices have been raised. The advances in wage rates, together with shortened hours, have of course increased manufacturing costs and prices of finished goods, thus raising the cost of living. This rise, which has been 8.8% since the low point, according to the National Industrial Conference Board, has almost exactly offset the increased money wages received by continuously employed industrial workers. Hence these workers have not had their purchasing power increased. However, there has been an increase in the purchasing power of the whole body of industrial labor, by reason of the greater employment. The number of workers employed in November was 30% larger than in March or a year ago, according to the Labor Department, and payrolls in the manufacturing industries were up 50%. In the case of the higher-paid white collar workers, professional people, and others who have had no increase of money wages or income, their money now buys less than a year ago, and therefore they have lost purchasing power. The rise in prices at first advanced the purchasing power of the farmer very rapidly. Prices on the farm rose by nearly 60% from the monthly average of February to that of July, while over the same period prices of the things the farmers buy increased only 7%. Since July farm prices have declined. On Dec. 16 they were about 40% over February, while prices of things bought had continued to advance, and were 18% higher. According to official estimates, the farmers' gross income has increased this year about 24%, including about $300,000,000 received from the Government under the agricultural adjustment program. On balance, therefore, farmers have gained substantially, but the ratio of farm prices to prices of goods bought is only 58% of the pre-war average which the adjustment program hopes to attain. Retail prices rose rapidly during the summer, and more slowly during the fall. On Dec. 1 department store prices were 26.8% higher than in May, and 21.2% above a year ago, according to the Fairchild index. The rise In food prices has been somewhat less. These figures show that the terms upon which the various groups of the population exchange their goods, services and labor, have been altered in favor of some groups and against others. In some cases the changes have plainly been in the direction of a fairer balance, in others to the contrary. On the whole, the situation is far from clear. The question still persists whether the rise in retail prices, and the further advances that are to be expected, can be paid by consumers. The answer will have to be found in the state of retail trade, which during the fall months was unsatisfactory, and under the Christmas influence showed the improvement cited, and thus as yet supplies no very conclusive data. First Drop in Employment in Manufacturing Industry in,Eight!Months Reported During November by National Industrial;Conference Board—Hours and Payrolls Also Below Previous Month—Show Increases as Compared with Year Ago. Reversing an eight-months' trend of successive monthly increases, employment inTmanufacturing decreased 5% in November, according to the regular monthly survey of the National Industrial Conference Board announced Dec. 31. As a result of a 6.1% decrease in the length of the work week, the survey said, total:man-hours declined 10.7%, and pay- Financial Chronicle 26 roll disbursements fell off 9.8%. In comparison with November 1932, however, employment was 26.6% higher, total man-hours were 17.9% more, and weekly payroll disbursements were 39.1% larger. The survey continued: Average hourly earnings continued to increase, but the gain of one half cent, from 54.0 cents to 54.5 cents, was not enough to overcome the drop from 36.2 to 34.0 in hours worked, with the result that average weekly earnings fell from $19.46 to $18.51. Since the decline in the cost of living, 0.3%, was virtually negligible, real weekly earnings shrank 4.5% in the month. In seven of the 25 industries covered by the Conference Board an increase In employment occurred-in agricultural implements, electrical manufacturing, paper and pulp, book and job printing, news and magazine printing, machines and machine tools, and hardware and small parts. In three industries, agricultural implements, book and job printing, and meat packing, increases in average number of hours worked per week and in man-hours were recorded. Man-hours increased in electrical Manufacturing and machines and machine tools, in which there was larger employment with stationary hours. The increase in employment in paper and pulp, news and magazine printing, and hardware and small parts did not bring about an increase of man-hours, Since larger employment was neutralized by shorter hours. While average hourly earnings increased in general, a downward trend was reported in four industries, namely, meat packing, book and job printing,furniture, and wool. In ths first two of these, increases in hours worked overcame the reduction in hourly earnings, with the result that average weekly earnings rose. Increases in average weekly earnings were noted in six other industries, as follows: agricultural implements, chemical, electrical manufacturing, paint and varnish, silk, and machines and machine tools. Moody's Daily Index of Staple Commodity Prices in Gradual Rise. For the second week in succession prime commodity prices have shown firmness. Moody's Daily Index of Staple Commodity Prices advanced to 127.5 from 124.7, registering small gains on all five trading days of the week. Nine of the 15 commodities included in the Index showed net advances; namely, in the order of their importance, hogs, hides,cotton, corn, wheat,sugar,cocoa,coffee and silk. Lead and silver declined, the latter only slightly, while rubber, steel scrap, copper and wool tops were unchanged. The movement of the Index number during the week, with comparisons, is as follows: Thurs., Dec. 29 Sat., Dec. 30 Mon.. Jan. 1 Tues., Jan. 3 Wed.. Jan. 3 Thurs., Jan. 4 Fri., Jan.I 5 124.7 125.0 Hol. 126.0 126.4 127.0 127.5 2 Weeks ago, Dec. 22 Month ago, Dee.5 Year ago. Jan. 5 19321High-Sept. 6 1Low -Dec. 31 1933 High-July 18 Low -Feb. 4 The rise was due to higher prices for farm and food products, in response to somewhat more optimistic sentiment regarding 1934. Despite an unchanged Reconstruction Finance Corporation gold price, the United States dollar dropped on Dec. 30, reflecting apparently year-end operations of the Bank of France. The "Annalist" price index on a gold basis accordingly shared only in part the rise of the index measured in United States dollars, rising to 64.5 from 64.1; the drop in the dollar, however, apparently lacked other than merely passing significance. THE "ANNALIST" WEEKLY INDEX OF WHOLESALE COMMODITY PRICES. (Unadjusted for Seasonal Variation. 1913=100.) 85,7 101.5 *117.6 143.1 105.3 112.0 98.5 84.8 102.4 R45 Farm products Food products Textile products Fuels Metals Building materials Chemicals Miscellaneous All commodities a All enrnmnditlea nn anhi haala Dec. 26 1933. Jan, 3 1933. 63.5 92.5 67.9 118.4 94.7 106.6 95.2 71.9 83.8 84.3 98.3 x118.1 143.1 105.5 111.9 98.5 84.8 101.2 64.1 •Preliminary. x Revised. z Based on exchange quotations for France. Switzer land, Holland and Belgium. DAILY SPOT PRICES, Moody's Index. Colton. When. Corn, Hogs. U. S. Basis. Cold Basis. Dec. 26 Dec. 27 Dec. 28 Dec. 29 Dec. 30 10.15 10.30 10.35 10.30 Closed 1.00% 1.03% 1.024 1.0034 1.02 .624 .6334 .633j .6134 .63 3.35 3.31 3.24 3.26 __ 124.2 124.7 124.8 124.7 125.0 78.6 80.1 80.4 80.2 78.8 /SI CA . I 1111/ . / I, /2, • •2.2C . ton n . •111 A • Cotton-Middling upland. New York. Wheat-No.2 red, new, c.i.f., domestic, New York. Corn-No. 2 ye low, New York. Hogs-Day's average, Chicago. Moody's index-Daily index of 15 staple commodities. Dec. 31 1931=100; March 1 1933=80. Further Decrease of 0.6 of 1% Noted in Weekly Wholesale Commodity Price Index of United States Department of Labor for Week Ended Dec. 23. Marked reductions in the market prices of farm products and manufactured foods caused wholesale commodity prices to continue their recent downward movement during the The decrease in the wholesale index number which amounted to 0.6 of 1% placed it at 70.4% of the 1926 average for the week ended Dec. 23, as compared with 70.8 for the week ended Dec. 16. Tho index for the latest week was the lowest that has been reached since the week ended Oct. 21 and was bearly 2% tinder the high point of the year which was reached during the week of Nov. 18, when the index registered 71.7. Present wholesale prices are 1434% above the level for the corresponding week of a year ago, when the index stood at 62.5 and 18% above the low of the year, when the index was 59.6 for the week ended March 4. The manufactured foods group showed the greatest decline by dropping more than 2% in average prices during the week. Butter and cheese continued for the fourth consecutive week a downward movement in prices and decreased nearly 5% on the average. Declining prices were also registered for flour, oranges, lemons, cured beef, ham, fresh pork, lard, raw sugar and smoked fish. Market prices of farm products dropped 2% on the average. Although barley continued to show advancing prices, the subgroup of grains declined nearly 5%. Steers and hogs again showed reductions in prices. Eggs showed the greatest decrease of any single item. Average prices for cotton, wool and potatoes registered slightly advancing prices in certain cities. The miscellaneous group also showed a decline over the week. Minor fluctuations in textile products resulted in no change in the index for the group. Minor advances in average prices for building materials offset weakening prices in paints and paint materials resulting in no change for the building materials group. The chemicals and drugs group also showed no change in the general average of prices. Slightly advancing prices in women's shoes more than equalized declining hide prices and caused the hides and leather products group to move up 34 of 1%. Strengthening prices of California refinery gasoline, Oklahoma fuel oil and coke influenced the index of the fuel and lighting group and caused a slight advance. The housefurnishing group and the metals and metal products group showed fractional advances. The index number of the Bureau of Labor Statistics is composed of 784 separate price series weighted according to their relative importance in the country's markets and is based on average prices for the year 1926 as 100.0. The accompanying statement shows the index numbers of the major groups of commodities for one year ago, for the low and high points of 1933 and for the past two weeks: INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF DEC.24 1932, MARCH 4, NOV. 18, DEC. 16 AND 23 1933. Week Ending. Dec. 24 Mar. 4 Nov. 18 Dec. 16 1933. 1933. 1933. 1932. so Rise Reported in "Annalist" Weekly Index of Wholesale Commodity Prices for Week of Jan. 2-Increase Effected by Higher Prices for Farm and Food Products. In a quiet holiday week the "Annalist" Weekly Index of Wholesale Commodity Prices advanced 1.2 points to 102.4 on Tuesday, Jan. 2, from 101.2 Dec. 26. In noting this, • the "Annalist" said: Jan. 2 1934. week of Dec. 23, according to an announcement made Dec. 28 by Isador Lubin, Commissioner of Labor Statistics of the U. S. Department of Labor. Of the 10 major groups of commodities covered by the Bureau,4 showed a strengthening in prices and 3,no change. Continuing, the announcement said: 133. 124. 103. 79. 148. 78. Jan. 6 1934 Farm products Foods Hides & leather products Textile products Fuel & lighting materials Metals & metal products Building materials Chemicals dc drugs Housefurnishing goods Miscellaneous All commodities Dec. 23 1933. 44.3 58.4 69.1 52.8 69.5 79.3 70.9 72.3 73.5 63.2 40.6 53.4 67.6 50.6 64.4 77.4 70.1 71.3 72.7 59.6 58.7 65.4 88.5 75.8 74.5 83.5 84.7 73.5 82.1 65.4 55.9 63.0 88.6 76.0 74.2 83.1 85.3 73.4 81.7 65.6 54.8 61.6 89.2 76.0 74.4 83.2 85.3 73.4 81.9 65.5 62.5 59.6 71.7 70.8 70.4 Building Costs Show Steady Rise According to Dow Service Reports-Average Advance During the Past Year Reported as 30%-Influence of NRA Codes. Increase in the costs of building materials and labor represents a rise of 30% over tile prevailing prices of Jan. 1 1933, points out Myron L. Matthews in the current Dow Service Daily Building Reports. This means, he explains, that a home costing $4,500 to build one year ago would cost $5,850 to-day. In the New York "Times" of Jan. 1 Mr. Matthews is further quoted as follows: "Usually price increases are due to demand," states Mr. Matthews. "In the present instance, though residential construction has increased in volume, the higher prices for material, equipment and appliances are due not so much to demand as to the effect of NRA codes. The immediate future holds in store the completion of industry codification, and more particularly the building construction industry, and meanwhile as codes already effective prove their prophesied benefits, creating greater mass purchasing power, and the accompanying demand for residential space rolls up, building costs will continue to advance. Cost of construction work of public character is nearer its 1926 index than private construction. This is due to the higher wages paid on public work. It is interesting to note in this connection that bids recently submitted for the Thirty-third Street New York Post Office Annex superstructure are more than half a million dollars higher than the bids first submitted on Feb. 28 1933. At that time the D. M. W. Contracting Co. submitted a low bid of $3,649,000 for a five-story building and $3,439,000 for an alternate three• story building. On Oct. 1 1993, when revised bids were submitted, the George F. Driscoll Co. was low with a bid of $4,248.800 for the five-story and $3,969,900 for the three-story building. On Dec. 27, with revised bids, the Driscoll Co. was low with $4,293,790 for the five-story building and Junes Stewart & Co., Inc., low tor the alternate three-story building with a bid of $3,997,000. The difference between these final bids and the original ones show that the five-story building superstructure will coat $644,790 more to-day and the three-story building superstructure $588,000 more. "Labor conditions of the latter part of 1932 and the first half of 1933 still prevail substantially, except as noted on public building construction, where the condition approaches normal. A tightening on private construction should occur during the first half of 1934, and when it materializes it will throw costs approximately back to their 1929 level. "Generally, building ccsts are now about back to the levels current in July 1932. "As examples of erratic building costs, take a six-story semi-fireproof New York City apartment house costing 56c, per cubic foot in 1926. By March 1932 it had dropped to 36c. In August 1932 it was quoted at 32c. ; in Financial Chronicle Volume 138 May 1933 at 28c., and by October 1933 it was back to 33c. Two and onehalf frame Westchester group-construction dwellings starting with 27c. in March 1932, fluctuated to 26c., 25c. and back to 26c. for the periods above Indicated; while the same type of dwelling, except in Long Island, and with stucco exterior starting with 31c, wandered to 30c., 28c. and 29c. for the periods stated. Costa for hotels of the New Yorker type quoted at 78c. in March 1932, dipped to 75c., 72c. and back to 77c." Electric Production Up 8.8% in Last Week of Largest Percentage Gain Over Same Period 1933a Year Previous Since Week of Oct. 7 Last. According to the Edison Electric Institute, the production of electricity by the electric light and power industry of the United States for the week ended Dec. 30 1933, which included the Christmas holiday, amounted to 1,539,002,000 kw.h., a gain of 8.8% over the same period in 1932 when output totaled 1,414,710,000 kw.h. The current figure also compares with 1,656,616,000 kw.h. produced during the week ended Dec. 23 1933, 1,644,018,000 kw.h. in the week ended Dec. 16 1933 and 1,619,157,000 kw.h. in the week ended Dec. 9 1933. Of the seven geographical areas reporting, all except the Southern States region, showed gains for the week ended Dec. 30 1933 as compared with the corresponding period in 1932. As compared with the percentage changes for the week ended Dec. 23 1933 as against the same week in 1932, the Southern States region was the only one that did not show an improvement. The Institute's statement follows: PER CENT CHANGES. Major Geographic Divisions. Week Ended Week Ended Week Ended Week Ended Dec. 30 1933. Dec. 23 1933. Dec. 16 1933. Dec. 9 1933. New England Middle Atlantic Central Industrial_ __ _ Southern States Pacific Coast West Central Rocky Mountain +8.7 +6.2 +14.3 -3.7 +8.6 +4.3 +19.5 +6.7 +0.1 +9.6 +1.5 +2.7 +3.1 +16.0 +7.1 +4.1 +8.2 -0.9 +1.0 +2.4 +14.6 +6.4 +6.2 +8.8 +0.5 +3.2 +0.8 - +21.0 Total United States_ +8.8 +6.6 +5.2 -4-8.8 Arranged in tabular form, the output in kilowatt hours of the light and power companies of recent weeks and by months since and including January 1930, is as follows: Week of- 1933. Week of- 1932. Week of- 1931. 1933 Over 1932. May 8 1,435.707,000 May 7 1,429,032.000 May 9 1,637,296,000 0.5% May 13 1,468.035,000 May 14 1,436,928,000 May 16 1,654,303.000 2.2% May 20 1,483090.000 May 21 1,435,731.000 May 23 1,644,783,000 3.3% May 27 1,493,923,000 May 28 1.425,151,000 May 30 1,601,833.000 4.8% June 3 1.461,488,000 June 4 1,381,452,000 June 6 1,593,662,000 5.8% June 10 1,541,713,000 June 11 1,435,471,000 June 13 1,621,451,000 7.4% June 17 1.578,101.000 June 18 1,441,532,000 June 20 1.609,931,000 9.5% June 24 1,598,136,000 June 25 1,440,541,000 June 27 1,634,935,000 10.9% July 1 1,655.843,000 July 2 1,456,961 000 July 4 1,607.238,000 13.7% July 8 1.538,500,000 July 9 1.341.730.000 July 11 1,603.713,000 14.7% July 15 1,648,339,000 July 16 1,415,704,000 July 18 1,644.638,000 16.4% July 22 1,654,424,000 July 23 1,433,990,000 July 25 1,650,545.000 15.4% July 29 1.661,504,000 July 30 1.440,386,000 Aug. 1 1,644,089,000 15.4% Aug. 5 1,650,013,000 Aug. 6 1,426,986,000 Aug. 8 1,642,858.000 15.6% Aug. 12 1,627.339,000 Aug. 13 1,415,122,000 Aug. 15 1.629,011,000 15.0% Aug. 19 1,650.205,000 Aug. 20 1.431.910,000 Aug. 22 1,643,229,000 15.2% Aug. 26 1,630,394.000 Aug. 27 1,436.440,000 Aug. 29 1,637,533,000 13.5% Sept. 2 1,637.317,000 Sept. 3 1,464.700,000 Sept. 5 1,685.623.000 11.8% Sept. 9 1,582,742,000 Sept.10 x1,423,977,000 Sept. 12 1,582,267,000 11.1% Sept.16 1,663,212,000 Sept.17 1,476,442,000 Sept. 19 1,662,660,000 12.7% Sept.23 1.638,757,000 Sept.24 1,490,863,000 Sept.26 1,660,204,000 9.9% Sept.30 1,652,811.000 Oct. 1 1.499,459,000 Oct. 3 1,645,587,000 10.2% Oct. 7 1,646,136,000 Oct. 8 1,506.219,000 Oct. 10 1,653,369.000 9.3% Oct. 14 1,618,948,000 Oct. 15 1,507,503.000 Oct. 17 1.656,051,000 7.4% Oct. 21 1,618.795.000 Oct. 22 1,528,145,000 Oct. 24 1,646,531,000 5.9% Oct. 28 1,621,702.000 Oct. 29 1.533,028,000 Oct. 31 1.651.792.000 5.8% Nov. 4 1,583,412.000 Nov. 5 1,525,410,000 Nov. 7 1.628.147,000 3.8% Nov. 11 1,616,875,000 Nov. 12 1,520,730,000 Nov. 14 1,623,151,000 6.3% Nov. 18 1,617.249,000 Nov. 19 1,531,584,000 Nov. 21 1.655,051.000 5.6% Nov.25 1,607,546,000 Nov.26 71,475,268,000 Nov.28 1.599.900.000 1 5.9% Dec. 2 71,553,744,000 Dec. 3 1,510.337,000 Dec. 5 1,671,466.000 j Dec. 9 1,619,157,000 Dec. 10 1,518,922.000 Dec. 12 1,671,717.000 6.6% Dec. 16 1.644.018,000 Dec. 17 1,563,384.000 Dec. 19 1,675.653,000 5.2% Dec. 23 1.656.616,000 Dec. 24 1,554,473,000 Dec. 26 1,564.652.000 6.6% Dec. 30 1.539.002.000 Dec. 31 1.414.710.000Jan. 2 1.523.1152.000 R FM. I Corrected figure. y Includes Thanksgiving Day. DATA FOR RECENT MONTHS. AfonIA of- 1933. 1932. January --- 6.480,897,000 7.011.736,000 February --- 5.835,263,000 6,494.091,000 March 6,182,281.000 6,771,684,000 6,024,855.000 6.294,302,000 April May 6,532,686,000 6.219,554,000 6.809.440,000 6,130,077.000 June 7,058,600,000 6.112,175,000 July 7,218.678,000 6,310.667,000 August September._ 6,931,652.000 6,317.733,000 October -- 7,094,412,000 6.633.865.000 November..6,507,804.000 6.638.424,000 December- 1931. 7.435.782.000 6,678.915.000 7.370.087.000 7,184.514,600 7.180,210,000 7.070.729.000 7,286.876.000 7,168,086,000 7,099,421.000 7,331,380,000 6,971.644.000 7.288.025,000 1930. 1933 Under 1932. 8.021.749.000 7.6% 7,066,788,000 10.1% 7,580,335,000 8.7% 7,416,191.000 4.3% 7.494.807.000 55.0% 7,239,697,000 al1.1% 7,363,730,000 215.5% 7,391.196.000 a14.4% 7,337,106.000 a9.7% 7,718,787,000 a6.9% 7,270,112,000 7.566.601,000 77.442.112,000 86,063.969.000 89.487.099.000 Total ---a Increase over 1932. Note.-The monthly figures shown above are based on reports covering approximately 92% of the electric light and power industry and the weekly figures are based on about 70%. Wholesale Commodity Prices Advanced During Week Ended Dec. 30, According to Index of National Fertilizer Association. Wholesale commodity prices advanced appreciably during the week ended Dec. 30, according to the index of the National Fertilizer Association. When computed for the latest week this index showed a gain of six points. During 27 each of the preceding two weeks the index declined. The latest index number, 68.4, is one point lower than it was a month ago, but is more than 100 points higher than it was at this time last year. (The three-year average 1926-1928 equals 100.) Under date of Jan. 2 the Association further said as follows: During the latest week four groups advanced, one declined and nine showed no change. The advancing groups were foods, grains, feeds and livestock, textiles, and fats and oils. Fats and oils, which had previously declined rather drastically, showed the largest gain of any group during the latest week. Grains, feeds and livestock prices also advanced materially. Miscellaneous commodities declined principally because of lower prices for hides. Thirty-two commodities, the largest number in many weeks, advanced during the latest week, while 11 commodities showed lower prices. A week ago there were 22 advances and 35 declines. Two weeks ago there were 23 advances and 33 declines. Important commodities that advanced during the latest week were cotton, silk, lard, butter, cottonseed oil. eggs, flour, corn, oats, wheat, choice cattle, hogs, lambs, silver, coffee and rubber. The declining commodities included linseed oil, raw sugar, rye, zinc, apples, woolen yarns and hides. Grains and eggs advanced sharply, while most of the other price changes were conikAratively small. WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY PRICES (1926-1928=100). Per Cent Each Group Bears to the Total Index. 23.2 16.0 12.8 10.1 8.5 6.7 6.6 8.2 4.0 3.8 1.0 .4 .4 .3 Group. Latest Week Dec. 30 1933. Preceding Weak. Month Ago. Year Ago. Foods Fuel Grains, feeds and ilvestoc.k.._ Textiles Miscellaneous commodities Automobiles Building Materials Metals House-furnishing goods Fats and oils Chemicals and drugs Fertiltzer materials Mixed fertilizer Agricultural implements _...... 69.7 68.4 48.8 66.8 67.1 84.9 79.0 79.2 85.2 42.3 88.2 65.6 72.8 90.8 69.1 68.4 46.4 66.1 67.4 84.9 79.0 79.2 85.2 38.6 88.2 65.6 72.8 90.8 70.6 68.0 47.5 66.1 67.5 84.9 78.6 78.6 85.4 46.7 88.2 65.6 70.9 90.8 58.7 58.6 34.4 42.9 60.6 86.6 70.6 67.6 77.4 46.0 87.3 61.7 67.9 91.8 418.4 417.8 88 41 AR 1 100.0 All arming combined Building Activity in United States During November According to United States Department of LaborCost of New Residential and New Non-Residential Building Increased and Decreased Respectively. Reports received by the Bureau of Labor Statistics of the U. S. Department of Labor from the 760 cities having a population of 10,000 or over show that there was a decrease of 31.6% in the number of buildings and a decrease of 8.8% in the value of buildings for which permits were issued during November as compared with October in the cities covered. These permit figures cover building construction only and do not include other types of construction, such as road building, river and harbor work, reclamation projects, &c. Permits reported on cover three types of building construction-residential, non-residential, and repairs to existing structures. In announcing this, the Department of Labor further noted: There was an increase of 22.2% in the number of new residential buildings and an increase of 66.3% in the estimated cost of these buildings. This increase was confined largely to New York City where permits were issued for apartment buildings costing nearly $8,000,000. The number of new non-residential buildings for which permits were issued dacreased 34.3%,while the cost of these buildings decreased 21.6%• Additions, alterations and repairs decreased 31.6% in number and 39.3% in estimated cost. As the Bureau's figures for 1932 were collected only from cities having population of 25,000 or over, comparisons for November 1933 with the corresponding month of the previous year are limited to 342 cities having a population of 25,000 or over. According to reports received from these cities there was a decrease, over the 12 months, of 18.4% in the number but an increase of 13.4% in the estimated cost of new residential buildings for which permits were issued. During this same period new non-residential buildings decreased 19.5% in number and 53.7% in estimated cost, while the number of additions, alterations and repairs decreased 0.7 of 1%, and the cost of the repairs increased 19.8%. Total building projects decreased 6.3% in number and 16.3% in estimated cost. The new dwellings for which permits were issued in November 1933 were to provide 3,633 family-dwelling units, an increase of 138% as compared with November 1932. More than 2,600 of these dwelling units are to be erected in New York City. Permits were issued during November for the following important building projects: In Springfield, Mass., for a school building to cost nearly 8400,000; in New York City for apartment houses to cost nearly $8,000,000; In Rockville Center, N. J., for a church to cost $205.000. Contracts were awarded by the Federal Government for a post office in Cambridge, Mass., to cost $366,000 and for a Federal office building in San Francisco to cost over $2,500,000. TABLE 1-ESTIMATED COST OF NEW BUILDINGS IN 760 IDENTICAL CITIES, AS SHOWN BY PERMITS ISSUED IN OCTOBER AND NOVEMBER 1933, BY GEOGRAPHIC DIVISIONS. New Residential Buildings. Geographic Division. Cities Estimated Cost. Oct. 1933. Nov. 1933. Families Provided for in New Dwellings. OM. 1933. Nov. 1933. New England 107 Middle Atlantic 173 East North Central_ 171 West North Central 68 South Atlantic 79 South Central 79 Mountain and Pacific. 83 $1,652,645 2,351,790 919,547 598,965 827,710 433,511 1,493,959 81,071.300 9,576,425 514,700 410,442 726,394 343.300 1,126,204 305 515 202 180 259 234 429 204 2,804 102 136 183 196 332 Total Percent of change $8,278,127 $13,768,765 +66.3 2.124 3.957 +86.3 780 Financial Chronicle 28 Geographic Division. Cities New England Middle Atlantic East North Central_ West North Central_ _ South Atlantic South Central Mountain and Pacific_ 107 173 171 68 79 79 83 Total Percent of change_ _ 760 New Non-residential Buildings. Estimated Cost. Oct. 1933. Nov. 1933. $1,803,836 4,115,861 2,341,424 1,400,260 2,071,330 1,622,087 3,588,380 $1,872,530 2,491.826 911,659 499,421 968,543 2,390,036 4,144,048 Total Construction (including alterations and repairs), Estimated Cost. Oct. 1933. $5,109,005 11,152,587 4,661.192 2,600,648 4,695,343 2,969,531 7,324,569 Nov. 1933. 53,981,520 14,750,504 2,523,161 1.251,479 2,611,776 3,412,294 6,584,047 $16,943,178 $13,278,063 $58,512,875 $55,114,781 -8.8 -21.6 TABLE 2-NUMBER AND INDICATED EXPENDITURES FOR TOTAL BUILDING OPERATIONS IN 122 LEADING CITIES OF THE UNITED STATES. City and State. No. of Expend Bldgs. tures. 48 Akron, Ohio 81 Albany, N.Y 12 Allentown, Pa 26 Altoona, Pa 124 Atlanta, Ga 646 Baltimore, Md 11 Bayonne, N. J Berkeley, Calif 55 138 Binghamton, N. Y Birmingham, Ala 60 390 Boston, Mass 33 Bridgeport, Conn 87 Buffalo, N.Y Cambridge, Mass_ _ _ 31 29 Camden, N. J 20 Canton, Ohio 21 Charlotte. N.C 134 Chattanooga,1enn__ 179 Chicago, III 233 Cincinnati, Ohio_ _ __ 146 Cleveland,Ohio Columbus, Ohio_ _ _ _ 60 Dallas, Tex 193 45 Dayton,Ohio Denver, Colo 227 61 Des Moines, Iowa__ Detroit, Mich 282 Duluth, Minn 36 23 East St. Louis, III_., Elizabeth, N. J 34 21 El Paso, Tex 19 Erie, Pa 46 Evansville, Ind Fall River, Mass__ _ _ 26 Flint, Mich 73 Fort Wayne, Ind_ 25 Fort Worth, Tex 62 Gary,Ind 6 38 Glendale, Calif Grand Rapids, Mich_ 52 Harrisburg, Pa 17 Hartford, Conn 119 Houston, Tex 123 Huntington, W.Va_ _ 9 Indianapolis, Ind__ 108 349 Jacksonville, Fla____ Jersey City,.N. J _ _ _ .. 43 Kansas City, Kan__ 20 47 Kansas City, Mo____ 29 Knoxville. Tenn_ _ _ _ Lakewood, Ohio,,...24 Lansing. Mich 15 Lawrence, Mass_ _ _ _ 26 Lincoln, Nob 69 Little Rock, Ark_ _ _ 66 Long Beach, Calif.__ 261 Los Angeles, Calif.__ 1,175 Louisville, Ky 46 Lowell, Mass 27 Lynn, Mass 28 Manchester, N.H___ 46 534,975 151,434 14,225 4,566 50,054 586,093 7,940 64,990 52,171 29,955 871,691 35,660 108,620 395,175 26,140 3,847 15,122 18,760 294,473 410,310 161,000 33,950 114,632 43,033 133,253 52,325 257,589 17,331 48,495 42,000 38,603 10,788 9,654 18,452 60,046 6,785 37,169 9,130 24,782 25,430 23,010 112.086 128,703 42,665 43.469 64,098 217,280 28,390 74,300 17,460 20,495 5,965 15,295 19,777 8,944 205,670 805,710 61,775 15,425 9,625 24.154 City and State. No. of Expend Bldgs. lures. 146 $241,967 Memphis. Tenn 100,934 209 Miami, Fla 87,940 Milwaukee, Wis____ 91 128 138,87Q Minneapolis, Minn__ 68 17,697 Nashville,Tenn 57 252,190 Newark, N.J 38 30,950 New Bedford, Mass_ 34,100 45 New Haven, Conn.._ 51 65.922 New Orleans, La,..... New York City. N. Y 2,314 10,804,758 54,484 Niagara Falls, N. Y_ 52 43 36,635 Norfolk, Va 139 150,132 Oakland, Calif 55 311,000 Oklahoma City,Okla. 44 44,170 Omaha, Neb 235 46,048 Pasadena, Calif 61 28,156 Paterson, N. J 19 16,983 Pawtucket, R. I 45 89,570 Peoria, Ill 197 535,382 Philadelphia, Pa_.._ _ 92 71,290 Pittsburgh, Pa 214 Portland,Ore 124.730 232 98,950 Providence, R. I____ 58 17,326 Quincy, Mass 80,420 Richmond, Va 88 Rochester, N. Y 63 86,036 18 1,900 Rockford. Ill 36,811 Sacramento, Calif.__ 96 8,935 Saginaw, Mich 22 8 11,907 St. Joseph, Mo 345,178 St. Louis, Mo 234 88,474 45 St. Paul, Minn 37,226 47 Salt Lake City, Utah. San Antonio, Tex___ 107 1,025,143 126 59,630 San Diego, Calif_ _ _ _ 248 3.535,068 San Francisco, Calif_ 211,021 36 Schenectady, N. Y__ 22 26,275 Scranton, Pa 195 110,000 Seattle, Wash 115 434,921 Shreveport, La 14,925 14 Sioux City, Iowa__ 11,290 Somerville, Mass,,... 18 8,675 42 South Bend, Ind____ 122 152,056 Spokane, Wash Springfield, Mass 31 402,600 65,450 Syracuse, N. Y 31 27,420 Tacoma, Wash 28 130 21,790 Tampa, Fla 47 12,310 Toledo, Ohio 22,045 Trenton, N. J 32 ThIsa, Okla 42 14,935 63,300 Utica, N. Y 6 738,204 Washington,D.C 312 22,100 Waterbury, Conn__ 20 12,791 34 Wichita, Kan 12,795 Wilkes-Barre,Pa 27 35,367 Wilmington, Del_ _ _ 31 19,164 Winston-Salem, N.C 51 58 123,207 Worcester. Mass____ 162,750 Yonkers, N.Y 35 14,625 Youngstown. Ohio 39 Industrial Production in Canada and Great Britain at Higher Level Than in United States According to Royal Bank of Canada. According to the "Monthly Letter" of The Royal Bank of Canada industrial production at the present time is at a higher level in Canada and Great Britain than in the United States, although the recent change in trend in the United States may bring us up to the same or a higher level. It is plainly evident, says the Royal Bank, that the course of the depression has been much less severe in Great Britain than in the other two countries, and it is interesting to note that in 1926 during the general strike industrial activity in Great Britain did not fall quite so low proportionately as in the United States and Canada last March. The letter further says: In Great Britain, Canada and the United States industrial activity is between 77 and 90% as large as it was in the years which were selected as normal by the statisticians of these countries. The upward trend is now well established. It is quite clear that the upward movement did not gain headway in Canada until much later than in the United States, but that from 1926 to 1929 the expansion in Canada was much more rapid and that it reached a far higher peak than it did in the other two countries. In 1929 and early In 1930 the decline was correspondingly abrupt. Throughout the remainder of the downward trend the rate of decline was about the same in the two countries, but the volume of business in Canada remained relatively larger than in the United States until the end of 1932. This differential In favor of Canada must be attributed to the departure from gold. Prices remained at a slightly higher level in Canada during this interval and the volume of business was correspondingly better. There is close correspondence between the volume of industrial activity in the two countries, but ordinarily there is a slightly greater fluctuation in business in Canada than in that in the United States. In recent months, however, Canada made a slower and somewhat more consistent recovery, with the result that although the Improvement during the summer was not quite so rapid as in the United States, there was no such marked reaction as that which occurred In the latter country during the early winter months, and the proportionate volume of business is now better in Canada than In the United States. Jan. 6 1934 Although the objection may be raised that industrial activity is not of as great importance to the total economy of Canada as it is to the United States, yet the comparison is of interest. It is only fair to add, however. that the situation in agriculture in Canada is far better than it is in the United States and the same may be said of lumbering. Larger Than Seasonal Decline Noted in General Industrial Activity in New England During November from October-Still Remains Considerably Higher Than in November 1932. "During November," states the Federal Reserve Bank of Boston, "the level of general industrial activity in New England declined from October by more than the usual seasonal amount." The Bank adds that "this decrease was moderate, however, with the aggregate industrial activity in November remaining considerably higher than in the corresponding month of 1932." In its "Monthly Review" dated Jan. 1, the Bank further reports: Department store sales reported by 54 establishments in 28 New England communitiesiwere 1% smaller in November than in the same month a year ago, and.for the first 11 months of 1933 were about 9% less than in the corresponding period of 1932. Little change took place in the seasonally adjusted indexes to textile activity between October and November. The amount of raw cotton consumed by New England mills in October was approximately 83,400 bales, and in November was 83,200 bales, as compared with 72,500 and 67,900 bales in the same months in 1932. The volume of raw wool consumed in New England mills declined between October and November, although there is usually a small seasonal increase between these months. In both October and November, 1933, however, the amount of raw wool consumed was greater than in the corresponding months of the preceding year. In November a seasonally adjusted index of the volume (square feet) of residential building contracts awarded in this district stood at 25.7% of the 1923-24-25 average, as compared with 29.6% in October. In November 1932, however, this index was 19.5%. A similar index of the volume of commercial and industrial building in New England was 17.2% in both October and November 1933. as compared with 11.7% in November 1932. During November the total value of new building contracts awarded in New England was nearly 4% higher than the October value, and exceeded that for November 1932. by more than 80%. The increase was due principally to the public works awards. According to the Massachusetts Department of Labor and Industries, the number of persons employed in representative Massachusetts manufacturing establishments during November was 4.7% less than the number in October. Aggregate payrolls in these establishments declined 6.3% between October and November, and average weekly earnings per person employed declined 1.7%. A part of these declines was attributable to customary seasonal changes. A decrease occurred in the number of boots and shoes produced in New England during November,as compared with October, and the volume in November 1933, was practically the same:as in November 1932. The reduction in the output of boots and shoes in this district was reflected in the Massachusetts employment figures, in which the largest percentage decrease in employment was reported for the shoe industry. Business Conditions in Cleveland Federal Reserve District-Downward Trend of October Continued During November-Operations in Tire and Rubber Industry Decreased More Than Seasonal. According to the Dec. 30 "Monthly Business Review" of the Federal Reserve Bank of Cleveland, "the year 1933 probably can be classified as one of the most unusual on record from the standpoint of developments in fields of industry, trade and finance. Variations in the rate of industrial production, in employment, financial conditions and public sentiment were very pronounced in the period. Many new elements have entered the general picture, still, as the year closes, there is litttle doubt but that much progress has been made, notwithstanding the fact that many problems remain to be solved." In reviewing conditions in the Cleveland District during November the "Review" states: The downward trend in business In this section evident in October and early November continued in the Closing week of the latter month, the falling off in most lines being more than seasonal. Employment, however, held up quite well; in November, at manufacturing plants in Ohio it was down 1.6% from October, In contrast with a five-year average decline of '1.7%. Compared with a year ago, employment in Ohio was up 27%• Civil Works Administration projects took thousands of men from relief rolls and put them to work in this district and elsewhere in early December. This was soon reflected in retail circles and the gains in sales at department stores in the first part of December from a year ago were somewhat larger, both in dollar volume and In number of sales, than in November. when dollar sales at Fourth District stores were up 7.5% from November. 1932; the gain from 1932 was less than the increase in prices in the period. The sharp decline in automobile production in November, preliminary to model changeovers, adversely affected operations at many plants in this District. Compared with a year ago, however, gains were shown in most every field and though operations were down quite sharply from the high levels of the year touched in the summer months, a largo part of the Improvement had not been surrendered. Employment has been provided to many through a reduction in the number of hours worked and payrolls were somewhat larger than a year ago. Steel ingot production in November was still 59% above last year and in the 11-month period output was 80% greater than in the same interval of 1932. In the first three weeks of December a distinctly contrary-toseasonal increase in steel production developed and operations at Most Fourth District plants advanced quite sharply. Shipments on contracts expiring Jan. 1, at which time prices on many stool grades advance, as well as increased demand from the construction and other Industries, were responsible for the expansion. Coal shipments from Lake Erie ports in November were 2.6% smaller than in November 1932, but coal production was up 3.8% in the same period after declining in October; for the year to date both output and shipments were up quite sharply from last year. Volume 138 Financial Chronicle November tire production was down more than seasonally from October. but rubber consumption by the industry was up about 25% from a year ago. Building contracts awarded in the Fourth District in November were up more than seasonally from October and exceeded November last year by 21.7%. The gain was confined almost entirely to the public works field. Agricultural conditions,so far as crops are concerned, were less favorable in this District in 1933 than in 1932. but as a result of price increases and direct grants to farmers for acreage reductions, estimated farm income for the year was considerably above the low level of 1932. As to wholesale and retail trade conditions in the Fourth District, the "Review" notes: Retail. Retail sales at reporting department stores in principal cities of the Fourth District in November had a 7.5% larger dollar value than in Nevember 1932. The gain from October was somewhat less than seasonal, however, and the adjusted index dropped from 65.7% of the 1923-1925 average to 63.9. Although retail prices at department stores, according to"Fakchild's," showed a very moderate increase In November, the gain from a year ago was about 21% in the entire country-somewhat greater than the increase in dollar sales recorded at stores in this District. In the first 11 months sales were 2% less than in the same period of 1932. the sizeable reductions experienced in the early months of 1933 being partly offset by gains recorded in the latter part of the year. In the first part of December, reports from department stores showed increased buying, largely seasonal, and the comparison of dollar sales with a year ago was somewhat more favorable than was revealed by the November reports. Sales in the basement departments of stores reporting these figures showed a larger gain in November from a year ago than was recorded in total sales, and the percentage of all basement to total sales increased. The dollar value of stocks at reporting department stores increased slightly lees than seasonally in November, the adjusted index being 62.4% of the 1923-1925 monthly average, compared with 64.6% on Oct. 31. The increase from a year ago, however, was 13% and while the monthly stock turnover rate in November was less than In the same month last year, the ratio of total sales to average stocks for the year to date was somewhat larger than in 1932. The ratio of credit to total sales was the same in November as a year ago, but there was a slight increase in instalment buying which offset the decline in regular credit sales. Collections in November amounted to 33.5% of the accounts receivable on Oct. 31. This was a slight improvement from October and the corresponding month of 1932. Sales at reporting furniture stores in November were 8% above a year ago and for the first 11 months a gain of 12.7% was recorded. Wearing apparel sales in November, both at women's wearing apparel shops and in those departments of reporting stores were smaller than a year ago. In the former the reduction was 5% in November and 13.3% in the first 11 months. November chain grocery store sales, per individual unit operated, were 13.7% larger than in November 1932, and chain drug sales were down 1.3% in the same period. In the first 11 months grocery sales increased 2.8%, while chain drug sales were down over 10%. Wholesale. All reporting lines of wholesale trade showed a reduction in sales from October to November, but the falling off was somewhat less than was reported at this season of preceding years. Grocery sales were 6.6% larger than a year ago; dry goods sales were up 15.6%; hardware 26.8% and drugs 3.8%. For the year to date an increase in sales was recorded at reporting dry goods and hardware firms, but a slight reduction occurred in grocery sales, and drug sales were down about 10%. The "Review" had the following to say as to the tire and rubber industry in the Cleveland Reserve District: Operations in the rubber and tire industry in November, judging by various indicators, were at a lower rate than in October, and the decline was somewhat more than seasonal. Reports of increased production in early December have been received, but output of local plants was somewhat above sales in the period. This is not unusual at this season of the Year-stocks being built up in preparation for the spring season when shipments usually exceed production. Both shipments and output in November and December were much ahead of the same period of 1932. In November, crude rubber consumption in the United States was 29,162 tons, compared with 31,906 tons in October and 23,231 tons in November 1932. On a daily average, seasonally adjusted base, rubber takings by the industry were off slightly in the last month. Consumption also was about 13,000 tons less than imports in November,the latter havihg increased quite sharply in recent months. At 42,448 long tons, they were over 15,000 tons ahead of November 1932. For the year to date imports were practically the same as in 1932, but they were slightly exceeded by rubber consumption in the period so that stocks on hand ,which still amount to 400,000 tons, were down about 8,000 tons from December 1932 . World rubber stocks on Nov. 1 were somewhat larger than a year ago at that time. Employment at 15 Ohio rubber plants in November was down 1.9% from October, a decline which was a little greater than the five-year average October-November falling off. Compared with a year ago, the number employed was up 36%, and for the 11 month period employment averaged 11% better than in the corresponding interval of 1932. Actual tire production in October (the latest figure available from the Rubber Manufacturers' Association which represents 80% of the industry), was 14% below September, but 33% ahead of a year ago. In the first 10 months of 1933 tire production was 9.1% above the same period of 1932. Output of both tires and tubes, after allowing for seasonal variations,ranged from record low levels in March to the highest point since early 1929 in the summer months of the year. With production somewhat in excess of Immediate requirements in that period, output was curtailed quite sharply in the fall months, but manufacturers' inventories on Nov. 1 Were still 23% above a year ago when stocks were unusually small. Inventories were not regarded by manufacturers as being excessive for this season of the year. Branches of the rubber industry other than tire production increased' operating rates and shipments quite sharply in 1933 compared with the preceding year, but stocks of rubber footwear on Nov. I were over 50% larger than a year ago. Moderate Improvement Reported in Trade and Industry by Federal Reserve Bank of St. Louis-Wholesale and Retail Trade Above Year Ago. The Dec. 30 "Monthly Review" (compiled Dec. 23) of the St. Louis Federal Reserve Bank reports that "trade and industry in the Eighth (St. Louis) District during the past 30 days developed moderate improvement as contrasted 29 with the similar period immediately preceding and continued in substantially larger volume than a year ago." We further quote from the "Review" as follows: In many manufacturing lines less than the usual seasonal recession took place, and in some instances was entirely absent. Wholesale trade declined in somewhat less than the usual seasonal amount from October to November. and in all lines investigated by this bank measurable increases were recorded over November last year and in a majority of instances, over the same month in 1931. As was the case during the preceding month, retail distribution was adversely affected by the unusually high temperatures prevailing during laste November and the first half of December. While November retail sales were in larger volume than a year ago, the increase in dollar value was not commensurate with the advance in commodity prices during the interval. Holiday trade was backward in getting under way, but has quickened perceptibly since the last week of November. Country retailers, particularly in the South, report buying on a considerably larger scale than a year and two years earlier, with a wider variety of merchandise being taken. In the cotton and rice areas purchasing power is the highest in a number of years, due to the advance in prices of these products, and increased employmnet generally is reflected in feer buying of all classes of merchandise. Employment increased moderately from October to November, and the improvement has been carried further since the first of December, due In part to large numbers employed on Civil Works Administration projects and in seasonal occupations. Production of bituminous coal in fields of the District in November increased slightly over the Preceding month. but was in smaller volume than in November 1932. Harvesting and housing of late crops was accomplished under unusually favorable conditions nad latest returns tend to confirm earlier official estimates of production. Prices of the principal products, except tobacco. are sharply higher than levels obtaining a year and two years earlier. In the agricultural communities sentiment is more optimistic than has been the case in a number of years, and farmers are formulating their programs for next season with more confidence than was thought possible a few months ago. An exception to the improved prices is in the case of dairy and poultry products and livestock. Cattle and hog prices continue at the low levels of recent months, and in numerous instances, below cost of production. The movement of cotton has been in considerable volume, and producers are using the proceeds of their crops and money received from the Government in its curtailment campaign to liquidate their indebtedness. The burley tobacco markets opened during the third week of December, but due to dissatisfaction with prices, sales were temporarily suspended, and rejections of offers have been universally large. As reflected in sales of department stores in the principal cities of the District, the volume of retail trade in November was 2.1% larger than in October, and 4.6% larger than in November 1932; cumulative total for the first 11 months of this year was 6.9% less than for the comparable Period in 1932. Combined sales of all wholesaling and jobbing firms reporting to this Bank were 18% smaller in November than in October, but 17% greater than in November 1932; for the 11 months this year the total was 14.5% greater than for the same time in 1932. The dollar value of permits issued for new construction in the five largest cities of the District in November was 35% less than in October and 149% larger than in November 1932; the cumulative total for the first 11 months was 88% greater than for the same period last year. Contracts let for new construction in the Eighth District in November were 7.9% less than in October and 4.9% more than in November 1932; for the first 11 months the total was 11.3% less than for the same period last year. Debits to checking accounts in November were smaller by 8.2% than in October, but showed a gain of 13% over the November 1932 total; cumulative total for the first 11 months this year was 13% greater than for the comparable period in 1932. According to officials of railroads operating in this District,freight traffic declined in slightly less than the usual seasonal volume in November and early December, and continued well above the corresponding period a year ago. The mild winter to date has tended to hold down the movement of coal and coke. Some betterment was noted in loadings of merchandise and miscellaneous freight, and the movement of forest products contirues substantially greater than a year and two years earlier. For the country as a whole, loadings of revenue freight for the first 48 weeks this Year, or to Dec. 2, totaled 26,890,886 cars, against 26,243,765 cars for the corresponding period in 1932, and 35,012,832 cars in 1931. The St. Louis Terminal Railway Association ,which handles interchanges for 28 connecting lines, interchanged 64,684 loads in November, which compares with 74.417 loads in October and 60,399 loads in November 1932. During the first nine days of December the interchange amounted to 17.179 loads, against 19.954 loads during the corresponding period in November, and 17,389 loads during the first nine days of December 1932. Passenger traffic of the reporting roads decreased 5.5% in November, as compared with the same month in 1932. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in November was 98.400 tons, against 97.407 tons in October and 112,969 tons in November 1932. Reports relative to collections during the past 30 days reflected a continuance of the gradual improvement which has been in progress during the past three months. Almost universally, collections on new accounts are described as good to excellent, and there has been a considerable volume of payments on debts oflonger standing. The latter fact is true particularly in the South, where farmers are using the proceeds of their crops and money received from the Government for acreage reduction in defraying their obligations. Wholesalers In the large centers of distribution report mainly satisfactory returns, with numerous customers taking advantage of cash discounts. Retailers in the principal cities report continued decrease in the ratio of cash purchases to charge accounts. Industrial Situation in Illinois Reviewed by Industries During November by Illinois Department of Labor -Both Employment and Payrolls Below October. "Declines of 2.6% in employment and 3.7% in payrolls from October to November were disclosed by reports from 1,755 Illinois manufacturing and non-manufacturing establishments." In noting this on Dec. 16, Paul R. Kerschbaum, Acting Chief of the Division of Statistics and Research of the Illinois Department of Labor, stated that "these reporting firms employed 340,231 wage earners in November and paid out a total of $6,993,196 weekly in wages." Mr. Kerschbaum further reviewed the industrial situation in Illinois by industries as follows: Eleven hundred and five reporting manufacturing establishments showed losses of 3.9% in employment and 6.3% in payrolls from October to November. and 650 establishments In the trade, services, public utility, coal min- 30 Financial Chronicle ing, and building and contracting groups of industries reported decreases of 0.3 of 1% in employment and 0.2 of I% in payrolls during the same period. The total actual man-hours worked in November, as reported by 1,153 establishments. decreased 4.4% from October; 814 reporting manufacturing plants decreased actual man-hours 7.3%; and 339 non-manufacturing firms increased total man-hours 0.5 of 1%. The average hours worked per week per employee in all establishments reporting such figures declined from 36.6 in October to 35.8 in November, or 2.2%. In the manufacturing establishments reporting man-hours data the average weekly hours worked per week, per employee, declined from 35.6 in October to 34.2 in November, or 3.9%; in the non-manufacturing industries the average was 38.8 hours for both October and November. The November decline of 2.6% in employment for all reporting industries combined was the second decline reported since March. 1933, and followed a small decline of 0.3 of 1% reported last month. The decline in payrolls of 3.7% for all reporting establishments was the first decline reported since March, 1933. Comparisons with the seasonal movement as disclosed by reports to the Illinois Department of Labor from 1922 to 1932. both inclusive, indicated that although declines in employment and payrolls for all industries combined is to be expected in November, the declines reported in November 1933 were much sharper than the 11-year average of 0.1 of 1% in employment and 1.0% in payrolls. The seasonal losses in manufacturing establishments for the same 11-year period of 1.1% in employment and 3.2% in payrolls were likewise exceeded by the declines reported in November 1933. Subsequent to Nov. 18 but prior to Dec. 11933. 62,098 persons actually worked on Civil Works projects in Illinois, according to a report from the Illinois Civil Works Administration. The placement of these 62.098 workers must, therefore, be considered in connection with the relatively sharp decline in employment and payrolls reported by 1,755 establishments during November. It must be noted, also, that employment in establishments reporting to the Illinois Department of Labor relates for the most part to the weekly payroll period nearest the 15th of the month. Despite the November decline in employment and payrolls, indexes for November 1933 disclosed that for all reporting industries combined, employment was 17.5% and payrolls were 22.9% above the levels of November 1932. The gains in manufacturing industries were somewhat sharper, employment in November 1933 being 23.7% above that for November 1932 and payrolls 35.7% higher than those for last November. In the non-manufacturing industries, both employment and total wage payments for November, 1933; were 7.5% above the level established in November 1932. For all reporting industries male workers were less adversely affected by employment and payroll declines than were female wage earners. The employment of males in all industries combined declined 2.1%, while that of females declined 4.9%; the total wage payments to males declined 2.7% and that to females dropped 8.0%. In the manufacturing industries during November the number of male workers declined 3.0%. while the number of females employed declined 6.8%; payrolls for males declined 4.8% and those for females declined 10.8%. Each of the 14 main groups of industries, except clothing and millinery. and coal mining, reported levels of both employment and payrolls higher than those of November 1932. In the clothing and millinery group payrolls in November 1933 exceeded those for last November, but employment was slightly below November 1932; in the coal mining industry employment was above but payrolls below the level of last November. During November, 8 of the 9 main manufacturing groups, namely, stone, clay and glass, metals, machinery and conveyances, wood products, furs and leather goods, chemicals, oils and paints, textiles, clothing and millinery, and food, beverages and tobacco, decreased both employment and total wage payments from the October level. The printing and paper goods group was the only manufacturing group to show an increase over October in both employment and payrolls. The November declines of 2.8% in employment and 7.6% in payrolls reported by establishments in the stone, clay and glass group were somewhat larger than the declines usually reported In November. Miscellanethe ous stone and minerals, and brick, tile and pottery were responsible for and employment loss, while these industries, together with lime, cement plaster establishments, accounted for the payrolls decline. Reporting establishments in the glass industry showed increases in both employment and payrolls. During November, 7 of the 13 industries composing the metals group contributed to the decline of 3.3% in employment, and 7 shares in the 5.0% and the decline in payrolls reported for the group. The iron and steel, both the autos and accessories industries were important contributors to employment and payrolls losses. disclosed Declines of 5.4% in employment and 7.0% in payrolls were group. during November by reporting establishments in the wood products these All industries except pianos and musical instruments contributed to losses. and payThe leather goods industries, reporting declines in employment employment rolls, were responsible for the November declines of 6.3% in The group. and 14.5% in payrolls shown by the furs and leather goods seasonal movefurs and fur goods industries, in accordance with the usual ment, reported both employment and payrolls gains. During November all industries in the chemicals, oils and paints group contributed to the employment and payrolls declines of f.1% and 3.1%. mainrespectively, except the miscellaneous chemicals industry, which wage paytained the same level of employment although reducing total ments. Every reporting industry contributed to the November losses of 3.5% of indusin employment and 11.8% in payrolls shown by the textiles group loss usually tries. The decline in payrolls was considerably larger than the the employreported in this group for the October-November period, while reductions ment decline was contrary to the usual seasonal change. The In the knit goods industries were particularly sharp. Payrolls in the cotton and woolen goods industries also declined sharply. Each of the seven industries within the clothing and millinery group emcontributed to the payrolls decline of 23.8% and four also decreased ployment in November. These declines were larger than the declines decline usually reported for this period. The payroll loss was the largest and reported for any of the main industrial groups. The important men's and women's clothing industries contributed to both the employment plant also payrolls losses. A strike in a large overalls anel work clothes contributed heavily to both the employment amitiSayrolls declines. emDuring November the food, beverages and'tobacco group decreased and vegetable ployment 6.2% and reduced wage payments 5.7%. Fruit 'reduced employcanning establishments for the second consecutive month curtailed employment and payrolls sharply. The confectionery group and payrolls ment 17.1% and paid out 25.7% less in wages Employment 2.9% and 2.0%. in the meat packing and slaughtering industry declined respectively. the only major The printing and paper goods group of industries was during manufacturing group to expand either employment or payrolls were establishments November. Job printing and edition book binding Ian. 6 1934 largely responsible for the gains of 1.4% in employment and 0.3 of 1% in payrolls reported by this group. Gains for the group approximated the usual seasonal advance. Of the five main groups of non-manufacturing industries, the trades and public utilities groups increased both employment and payrolls; the building and contracting group increased total wage payments but reduced employment; the coal mining industry increased employment while reducing payrolls; and the services group curtailed sharply both the number of persons employed and the amount paid to them in wages. Aggregate gains of 5.2% in employment and 3.4% in payrolls in November were reported by establishments in the wholesale and retail trades group. Sharp gains in mail order houses and more moderate advances in wholesale grocery establishments, in both employment and payrolls, were reported. During November the public utilities group expanded employment 1.1% and paid out 0.6 of 1% more in wages. Street and electric railways and railway car repair shops added workers to the payrolls and expanded more in wage payments. Water, gas, light and power and telephone establishments decreased both employment and payrolls. The decrease in employment in the building and contracting group of 4.5% was caused largely by a decrease in road construction, while the increase in payrolls for the group, of 24.3%, was caused by a sharp advance In wage payments in the building construction group. Construction work on breweries and on Citizens' Conservation Corps barracks was largely responsible for gains of 26.7% in employment and 68.6% in payrolls in the building construction industry. Employment in the coal mines of the State advanced 3.7% but payrolls declined 4.0% during November. Coal mine activity is usually sharply accelerated during November. Compared to November 1932 employment in the coal mines, according to indexes, was 2.2% above and payrolls were 4.7% below the level established in November 1932. The services group of industries decreased employment 15.2% and payrolls 20.4% in November. Hotels and restaurants reduced the number of persons employed 16.6% and the amount paid in wages 22.0%. The closing of A Century of Progress Exposition probably accounted for these sharp reductions. Thirty wage rate increases were reported during November. These rate increases affected 5,129 persons, or 1.5% of the total number employed In the 1,755 reporting establishments. The increases in wage rates ranged from 3.1% to 33 1-3%. Four firms reported decreases in wage rates, affecting 85 workers. Weekly earnings for November for both sexes combined averaged $20.55 for all reporting industries; $22.39 for males and $13.78 for females. For the manufacturing industries, weekly earnings averaged $18.61; $20.62 for males and $12.63 for females. Average weekly earnings in the non-manufacturing industries for both sexes combined were $23.82; $26.57 for males, and $15.27 for females. Review of Building Activity in Illinois During November and First 11 Months of 1933 by Illinois Department of Labor. Paul R. Kerschbaum, Acting Chief of the Division of Statistics and Research of the Illinois Department of Labor, in reviewing the building activity in Illinois, stated that "during November 1933, building and public officials in 65 Illinois cities reported the issuance of building permits for an aggregate of 674 projects, estimated to cost $801,744. These figures," Mr. Kerschbaum added, "disclose a decline from October permit figures of 32.0% in the number of projects, and a loss of 39.8% in the total estimated expenditure." Under date of Dec. 10, he further said: sharper The downward movement from October to November was much than the average for this period. The 12-year record of the Illinois Department of Labor shows the average decline for the October-November Period to be approximately 10%. Compared to November 1932, the total estimated expenditure for November 1933, disclosed a gain of 14.4%. Building reports submitted seldom include State and Federal building projects since permits are not usually required for such structures During November each of the three major building classifications showed a loss in estimated expenditure from October. The aggregate estimated expenditure for all new building reported by 65 Illinois cities declined from $808.668 in October to $320,726 in November, or 60.3%. Within this classification, new residential building declined from $213,035 in October to $114,000 in November,or 46.5%.and new non-residential building dropped from $595.633 in October to $206.726 in November, or 65.3%. The total estimated expenditure for addition, alteration, repair, and installation projects declined more moderately from $522.274s in October to $481.018 in November, or 7.9%. During November 1933, permits were Issued for a total of only 19 new housekeeping dwellings in the 65 reporting cities, compared with a total of 40 new housekeeping dwellings planned in October. In Chicago, during November, permits were issued for 5 new housekeeping dwellings, planned to provide for 5 families; in the Chicago suburban cities permits were issued for 8 such structures, providing for 8 families; and in all other reporting cities 6 buildings, providing for 6 families, were planned. The decline in the aggregate estimated expenditure for all cities of the State, from October to November, was contributed by Chicago and the Chicago suburban cities in which declines of35.8% and 69.9%,respectively. occurred. The total estimated expenditure for the 30 reporting cities total outside the Chicago metropolitan area advanced 0.8 of 1% over the for October 1933. Comparisons disclosed that the estimated cost of permit the in that and 53.5% was buildings in Chicago during November 1933, municipalities outside the Chicago metropolitan area, was 24.9% above the totals for November 1932. In the 34 reporting cities outside or Chicago, but within the Chicago metropolitan area, the total estimated expenditure for November 1933. was 42.0% below the total for last November. In Chicago, the October-November decline of 35.8% in total, estimated seasonality would expenditure was considerably larger than factors of major building warrant.b Declines were recorded in each of the three from 1161,800 in Octoclassifications. New residential building declined declined building non-residential new ber to $40,000 in November,or 35.3%; from $206.402 to 6123,530, or 40.2%; and additions, alterations, repairs, The and installations declined from $311,062 to $208,351. or 33.0%. by permits index of the total estimated building expenditures, authorized for above that moderately Issued in Chicago during November 1933, was classification November 1932. New residential building was the only November which failed to show an increase in estimated expenditure over 2.1 for all 1932. The indexes of Chicago building in November 1933, were a Revised. November b The index ofseasonal variation for total Chicago building for Is 95.7, and for October, 102.4. Volume 138 building, 0.5 for new residential building, 1.3 for new non-residential building, and 24.3 for additions, alterations, repairs, and installations (monthly average 1929=100). Although in the group of 34 Chicago suburban cities each of the major building classifications showed declines in November 1933, the sharp drop in the estimated expenditure for new non-residential building,from $294,575 in October to $26,920 in November, or 90.9%, was outstanding. In this same group of cities the estimated expenditure for new residential building declined from $91,100 in October to $57,000 in November, or 37.4%. and that for additions, alterations, repairs, and installations declined from $78,356 to $55,954,or 28.6%. Only 8 cities in this group showed gains over October in the total estimated expenditure, while 13 reported gelds over November 1932. In the 30 reporting municipalities, outside the metropolitan area the increase in the proposed expenditure for additions, alterations, repairs, and installations more than offset the declines reported in the new-building classifications. The estimated cost of addition, alteration, repair,and installation projects increased from $132,856a in October to $216.713 in November. or 63.1%. During the same period new residential building declined from $60,135 to $17,000, or 71.7%, and new non-residential building declined from $94,656 to $56,276, or 40.5%. Thirteen of the 30 cities comprising this group showed an increase over October 1933, while the same number reported estimated expenditures above those for November 1932. Ofthe total estimated expenditure authorized by permits issued in November by the 65 cities reporting to the Illinois DepartmentofLabor,46.4% was to be expended for Chicago projects, 17.4% for projects in the Chicago suburban area, and 36.2% in the 30 reporting cities outside the Chicago metropolitan area. Addition, alteration, repair, and installation projects continue to account for an unusually large proportion of the total authorized expenditures. In November 60.0% of the total estimated expenditure was to be spent on such projects, while only 14.2% and 25.8%, respectively, was to be expended on new residential and new non-residential buildings. During the first 11 months of 1933 the total estimated expenditure for the 65 reporting cities was 13.5% below the cumulative total for the first 11 months of 1932. Since May 1933, however, monthly expenditure totals have been higher than those for the corresponding month in 1932 with the exception of July. In Chicago the estimated expenditue increased from $6,001,918 for the first 11 months of 1932 to $6,212,796 for the same period in 1933, or 3.5%. For these same comparative periods, the estimated cost of building projects in the 34 Chicago suburban cities declined from $3,693,444a to $2,573,467, or 30.3%, and in the cities outside the Chicago metropolitan area the estimated expenditure declined from 34,820,000a to $:3,773,880, or 21.7%. An analysis by building classification disclosed that the total estimated expenditure for new residential building declined from $4,015,418a for the first 11 months of 1932 to $2,008,705, or 50.0%. while during the same comparative period new non-residential building declined from $5,504,613a to $5,053,751, or 8.2%. This same comparison for additions, alterations, repairs, and installations, however, disclosed an advance from $4,995,331a to $5,497,687, or 10.1%. Twenty-four of the 65 reporting cities-13 in the Chicago suburban area and 11 outside this area—reported authorized expenditures for the first 11 months of 1933 in excess of those reported for the same period in 1932. a Revised. , b The index ofseasonal variation for total Chicago building for November is 95.7, and for October, 102.4 Review of Business in California During 1933 by Wells Fargo Bank & Union Trust Co. of San Francisco— Course Varied Somewhat from Rest of United States Due to End of Prohibition and Increased Dollar Price for Gold. "During 1933 the course of business in California varied somewhat from that of the rest of the United States, because of extra impetus given to the $350,000,000 grape and wine industry by the repeal of the Eighteenth Amendment and to gold mining by the increased dollar-price for the metal," says the Wells Fargo Bank & Union Trust Co. of San Francisco In a year-end statement. After 14 years of restriction, during which production averaged 6,000,000 gallons a year, the bank points out, the California wine industry this year took on new life and produced 30,000,000 gallons of wine, or about twothirds the average output of a pre-prohibition year. The number of wineries in operation jumped from 150 last year to 325 currently, or about half the pre-prohibition number. The average winery to-day, however, has nearly 50% greater capacity than the old ones. The bank further says: Gold milling is benefiting by the steady demand for its product and the recent 60% increase in its dollar-price. California, the largest gold producer in the United States, last year accounted for $11,700,000 output, or 26% more than that of 1929. Many of its larger mines have been operating since 1849. Following the March banking holiday, commercial and industrial activity in the State spurted upward for four months—in California, as elsewhere, a delayed springtime upswing carried forward by speculative enthusiasm through the usual midsummer doldrums. From July through October the business curve tended gradually downward, to about the levels of early 1932, then turned up again in November. Of the more comprehensive measures of business activity, bank debits in California, reflecting a higher price level for commodities and for stock market transactions, rose to levels which in October and November exceeded those of the same months last year by about 4%. Department store trade in five of their eight months since March exceeded that of the same months last year, but on Dec. 1, because of earlier decreases, was still 7.5% behind that of January-November 1932. Inventories recently have shown a decided tendency to increase, and collections are reported to be better than they were last spring. Wholesale trade generally shows a considerably greater degree of improvement than that registered by retail trade. Distribution, as measured by freight movement, has for several months been in somewhat greater volum than that of a year ago. Intereoastal shipping from and to the State has recently expanded to the highest activity in two years, while general cargo shipments Eastbound have increased moderately, the largest increases were evident in petroleum and lumber, although lately shipments of the latter have sharply contracted. In agriculture, several important grains and other field crops registered increases in both size of crops and prices. Hops, which last year were a $1,100,000 crop, and this year show a 40% increase in output, expanded 31 Financial Chronicle sharply in market value with the legalization of beer. Fruit crops in California generally were late in coming to market, but prices received for them by growers were in most cases better than those of a year ago. This year's near-record citrus crop brought growers an estimated total of $68,509,735 (the lowest return since the war), oranges, lemons and grapefruit having a "delivered" value of $106,321,676. Canned and dried fruit inventories are reported to be well cleaned up and in the beet shape in recent years. Averaging of Profits by Large Chain Store Systems Cited as Advantage Over Smaller Chains and Independent Retailers by Federal Trade Commission— Loss in One Locality Can Be Offset by Profit in Another. Large chain store systems operating over a wide territory have one inherent advantage over smaller chains or independent retailers with respect to price competition, the Federal Trade Commission reports in its latest volume on chain store systems as made public Oct. 19. "The source of this advantage lies in the fact that such an organization is able to average the profit results obtained from its stores in the numerous localities where it operates," says the Commission. An announcement issued with regard to the Commission's report added: If the store or stores of a large chain in a particular locality are faced with severe price cutting and are operating at a loss, such loss, the Commission reports, may be offset by profits earned in its stores in other localities where competitive conditions are less severe. For this reason, the large chain usually can hold out longer on the defensive side of a protracted local price war, or, if it takes the offensive, can inflict greater injury upon its competitors with less harm to itself. In its report, which is entitled "Chain Store Price Policies," the Commission also brings out that some chains require each store to produce individually the minimum rate of gross profit that is established for the chain as a whole. Such a policy, says the Commission, insofar as it is adhered to, places a limit on the local price cutting activities of a chain system's stores and thus denies the chain the competitive advantage which results from its power to draw upon the profits of some of its stores for the funds with which to wage a drastic price war in highly competitive localities. By far the greater number of chains, however, indicate in their statements on price policy that they meet local competitive conditions as they arise. "We meet and beat it, and this applies to all kinds of competitors and all lines of merchandise carried," said an official of a candy chain, who was interviewed. Some chains profess to follow, but not to initiate, price cuts. Each of two chains engaged in a competitive conflict may charge that the other is the aggressor. Drastic competitive methods are illustrated by an official of a variety chain who says, "Rather than simply cut prices to meet competition we prefer to shoot specials into the town until the competitor gives up his warfare." The most Important protection from the effects of direct price competition, as revealed by statements of chain store system officials interviewed, is the development of their own private brands. Also, in meeting competition, several chains say that at times they seek the co-operation of manufacturers to force competitors to cease undesirable price cutting. Full text of the Commission's letter of submittal to the Senate summarizing the report on price policies is as follows: FEDERAL TRADE COMMISSION. Washington, D. C. Oct. 19 1933. To the Senate of the United States: This study of chain-store price policies was undertaken in pursuance of Senate Resolution 224 (70th Congress, first session) and especially that part of the resolution which directed the Federal Trade Commission to inquire into and report to the Senate the advantages or disadvantages of chain-store distribution. Among the advantages possessed by chain-store organizations is the possibility of varying the prices charged in different localities in order to take full advantage of local conditions. Such variations in the prices charged by different stores of a chain may, of course, be carried beyond the point of merely constituting an advantage to the chain-store system and become an unfair method of competition in commerce. The legal aspect of chain store price policies, however, is not treated in the present report. Because chain stores are presumed to represent the application of largescale methods of operation to the business of retailing, inquiry is directed in this report to the question of how far the chains have reduced the bnportant functions of marking up and pricing their merchandise to a systematic basis. Inquiry also is made into the degree of centralized control over prices exercised by the headquarters of chain organizations, the extent of and reasons for variation in prices between the stores of a chain, and into the competitive phases of chain-store price policy. The Bases of Chain-Store Prices. When asked to state whether it is the policy to price their merchandise according to some rules or standards, or whether the pricing of goods is left to the discretion of certain officials, 511 of the 991 chains replying state either that no rule is followed or that it is left to the discretion of the pricing officials. The 480 chains that claim to set their prices according to some rule or standard, however, operate approximately 70% of the total number of stores. Some of these, in descriptions and discussions of their methods by the officials, reveal systematic and carefully worked out policies of marking up and pricing their merchandise. But among the 480 chains there are 68 which state simply that their prices are determined by competition, and 76 which claim to use a rule but fail to state the character of the rule employed. One chain official states, "In a broad way, it may be said that pricing depends upon what the traffic will bear. What the traffic will bear depends upon a number of factors: What consumers will pay, what it costa to put the merchandise in the stores, and what competition will allow." Pricing at a set average mark-up over cost is the rule most frequently reported by the chains. Next in order is the rule that prices are set by competition, which in turn is followed by the policy of selling at fixed retail prices determined in advance of the purchase of the goods, as exemplified in five-and-ten-cent-store chains. The latter policy is not confined, however, to the policy of selling at a limited number of fixed retail prices, but includes any policy of buying goods to sell at predetermined retail 32 Financial Chronicle Jan. 6 1934 prices. When a set mark-up is employed, the cost of the goods is treated as the basic figure and retail prices are set so as to provide the desired profit. When, on the other hand, fixed retail prices are the starting point, the purchase prices paid for the goods must be low enough to yield the chain Its profit. The difference between the two methods is a difference in emphasis; the former presumably stimulates the chains to reduce their operating expenses as a means of increasing net profit, while the latter tends rather to emphasize reduced purchase cost as the source of increased profit. Chains may follow a rule of pricing at a certain average mark-up over the cost of the goods; but because of their policy of featuring specials or leaders, they cannot get an adequate mark-up on such goods and must make up the difference on other merchandise. Discussion of pricing methods by a number of chain officials interviewed illustrates with considerable detail the various ways in which the losses or absence of profit on staples and leaders are offset by the higher margins obtained on other goods, and in this respect the present report supplements the report on chain-store leaders and loss leaders. One chain official criticizes the consuming public for demanding excessive price reductions on some classes of goods while paying without complaint more than a reasonable price for other classes. Sixty-two percent of the reporting chains have no rule against pricing goods below net purchase cost, and 74% of them have no rule against pricing goods below net purchase cost plus cost of doing business. Chainstore officials discussing such rules show that those chains that have them frequently permit exceptions, while those that do not have them say it would be impossible to live up to them. the control of mark-up nor the control of selling prices is exclusively vested in central headquarters. When store managers are given more or less control of selling prices, variability is bound to occur. Even when prices are supposed to be strictly controlled from central headquarters, the selling prices of the stores may vary owing to the delay or failure of some managers to follow mark-up or mark-down instructions issued from central headquarters, or because of negligence, dishonesty or unauthorized actions on the part of store managers or other employees. Decentralization and difficulty of supervision both tend to cause price variations among the stores of a chain. Differences in costs of goods and differences in the costs of transportation frequently cause non-uniformity of prices in intercity chains and especially in the case of intersectional chains. Also where the stores of a chain in different cities buy some merchandise locally, differences in the cost of the goods tend to result in non-uniform selling prices for such goods. Again, differences in overhead and in costs of operation such as rent, salaries, taxes and other local expenses may cause prices of stores situated in different geographic sections, in different cities of a section, or even in different parts of the same city to vary. The prices of a chain may vary, too, because of the volume of business transacted, the amount of credit and service extended, the local business conditions encountered and sometimes simply because the chain can get more from the class of people served in one locality than it can get elsewhere But competition is the most frequently reported single reason for price variation, including variations due to the lowering of prices in certain stores of a chain for the purpose of meeting or underselling local competitors or for the purpose, as they call it. of "stimulating business." Control of Pricing Operations. About two-thirds of the 1.500 reporting chains state that they retain exclusive control of selling prices and also of mark-up in central headquarters, the range being from about 20% of the department store chains to 100% of the hat and cap chains. About one-seventh of the chains give exclusive control ofselling prices and of mark-up to their store managers while one-fifth of them divided control of these matters among central headquarters, sub-headquarters, warehouses and store managers. The foregoing proportions must be considered with qualifications for the reason that although two-thirds of the chains claim in their schedule answers that prices are exclusively controlled by headquarters, interviews with a number of chain officials show that complete retention of price control in the headquarters organization is rather the exception than the rule among the chains interviewed. Even where the formal policy of the chain is to exercise a centralized control of prices, district supervisors and store managers are in fact permitted to set or adjust prices for a variety of special reasons. The discovery and prevention of unauthorized deviation by store managers or clerks from the prices at which they are supposed to sell is an important feature of the control policy of chain stores. Methods of discovery employed by them for this purpose include the use of outside detective agencies, the use of shoppers and spotters under the direction of the chains themselves, supervision by their district or field officials, and the checking of store inventories by superintendents and auditors. Some chains say that they use no secret methods of detection, but rely upon the character of the men employed, upon the payment of high salaries, or upon a greater degree of responsibility in their store managers to reduce the risk of loss incident to unauthorized pricing by store managers or clerks. The Competitive Policies of Chain Stores. A considerable number of chains state that competition determines the rule or standard which they employ as a basis of pricing their merchandise. While such policies may reflect how chain officials feel about it rather than the actual basis of chain-store pricing, they probably do serve to indicate the extent to which chain stores have made prices and price competition a central feature of their merchandising policies. Over 36% of all the reasons cited by chains for price variations among their stores was attributed by them to the necessity of meeting competition. Some of the chains interviewed with regard to price policy express a broad and unqualified purpose of meeting all competition, as illustrated by an official of a candy chain, who says on this point: "We meet and beat it, and this applies to all kinds of competitors and all lines of merchandise carried." Other chains state definitely that they do not meet certain types of competition. Several chains claim to place some limitation as to the kind of competitors whose prices they will meet, confining such efforts to chains in the same line of business as their own and at the same time generally conciliating price-cutting of independents and ignoring special sales or sporadic price cuts. Chains also make some distinction as to the kinds and classes of commodities which are most subject to competition or on which they make most effort to meet all competitive prices. Some chains profess to follow, but never to initiate, price cuts, although, as shown by one instance of price cutting described in the report, each of two chains engaged in a competitive conflict may claim that the other is the aggressor. More drastic methods of meeting competition by the use of specials or loss leaders are illustrated by an official of one variety chain, who says: "Rather than simply cutting prices to meet competition. far prefer f.,, to shoot specials into the town until the competitor gives up his warfare," The most important protection from the effects of direct price competition, as revealed by statements of chains interviewed, is the development of their own private brands. Also, in meeting competition, several chains state that at times they seek the co-operation of manufacturers to force competitors to cease undesirable price cutting. This may take the form of getting lower prices on merchandise from the manufacturers, obtaining special kinds of merchandise for the occasion, or it may take the form of a threat by the chain to buy elsewhere, if the price cutting on the manufacturer's goods is not stopped. Extent of Price Variability. Although 70% of the 1,673 reporting chains claim that their selling prices are identical in all their stores, the great majority of chain stores and sales reported are on a non-uniform price basis. The 502 chains which report the selling prices of their stores as not being identical account for about two-thirds of all stores and seven-tenths of all sales reported. This Is due to the fact that the larger chains show a greater tendency toward price variation than the smaller, and to the fact that approximately threefifths of all stores and sales reported belong to grocery and meat, dollarlimit variety and department store chains, which lines are to a much large extent characterized by price variability than any of the other 23 lines of chain business studied. Price variability is influenced not only by kind of business and by size of chain, but also by the geographic extent of the chains. For example, larger proportions of city chains of specified sizes report uniform prices than is true of chains operating in one State, or geographic division, or in two or more divisions. About one-quarter of all chains reporting variations in selling prices state that their prices vary between different sections of the country, while a trifle over three-quarters report their prices as varying between different cities in the same section,'and only three-tenths state that their prices vary within the same city. It was possible to check the returns of about a score of chains against data gathered in the Commission's field study of chain and independent store prices. This check-up showed that at least seven chains operating almost 20,000 stores (or more than 30% of all stores reported) failed to report intra-city price variations in answering the schedule question, although they are in actual fact characterized by such variations. In addition. about a score of other chains, which reported in their schedule replies that there is no variation whatever among the selling prices of their stores, were interviewed on price policy by agents of the Commission, and in every one of these the officials stated that prices vary between their stores. Had It been possible to check the schedule returns on price variations of not merely a few dozen chains but of all the 1,673 chains reporting, it doubtless would have been shown even more clearly that the price policies claimed by chains are one thing while the policies actually pursued are quite another, and that the facts with respect to variations in their selling prices are still another thing. The price and margin data gathered by the Commission shows that 10.4% of the price quotations obtained from the stores of food chains in three large cities varied from the quotations furnished by chain headquarters. These variations were divided almost equally between store prices above and below headquarters prices. More than three-fourths of the total variations were within two cents of the headquarters figures, and almost one-half of them varied by more than 10% or more from the headquarters figures. Slightly over 1% of all quotations obtained in the chain stores varied by 20% or more from the quotations obtained at headquarters Reasons for Variations in Selling Prices. A variety of reasons are advanced in explanation of the variations in selling prices among the stores of a chain. The kind of organization adopted by the chain may be fundamental in the question of price variability. Chains whose stores are located in different geographic sections of the country often decentralize their organizations into a number of district units each of which controls the prices of its stores, and price variations among the stores of the chain are thus inevitable. Again, even though a chain is neither spread over several geographic sections nor organized by districts, its prices may not be centrally controlled at headquarters. In approximately one-third of all chains reporting, as already noted, neither Local Aspect of Chain Store Competition. Large chains operating over a wide territory have one inherent advantage over smaller chains or independent retailers with respect to price competition. The source of this advantage lies in the fact that such an organization is able to average the profit results obtained from its stores in the numerous localities where it operates. If its store or stores in a particular locality are faced with severe price cutting and are operating at a loss, such loss may be offset by profits earned in its stores in other localities where competitive conditions are less severe. For this reason the large chain can generally hold out longer on the defensive side of a protracted local price war, or, if it takes the offensive, can inflict greater injury upon its competitors with less harm to itself. While a large chain, because of its widespread operations, will generally encounter competitive difficulties more often than any one independent, no one of these localized encounters, nor perhaps all of them put together, will affect so large a proportion of the chain's business as that of each of the independent competitors. Some chains require each store to produce individually the minimum rate of gross profit that is established for the chain as a whole. In so far as such a policy is adhered to by a chain, it places a limit upon the local price-cutting activities of its stores and thus denies itself the competitive advantage which results from the power of a chain to draw upon the profits of some of its stores for the funds with which to wage a drastic price war In highly competitive localities. By far the greater number of chains, however, indicate in their statements on price policy that they meet local competitive conditions as they arise. Few of the chains that were interviewed in the field keep competitive price changes strictly within the control of headquarters officials, but many of them place limitations upon the discretion of subordinate officials in meeting competitive situations. The wide discretion granted by chains to store managers and to other district officials, for the purpose of meeting local competitive conditions, places in the hands of these local employees a competitive weapon of great power, due to the working of the averaging process referred to. Such discretion is frequently referred to by the chains in connection with perishable, seasonal, and slow-moving merchandise. The competitive advantage of chains over single-store competitors, arising from the fact that chains do business in many localities, is most aggressively pursued on those occasions when chains cut their prices locally below the prices of their competitors in that locality, while maintaining prices in their other stores. Discussion of this question by officials of leading chain organizations indicates that it is a quite usual practice among them to cut prices locally not only to meet, but to go below, the prices of their competitors. A few chains say that this is against their rules, but exceptions to the rule appear even among these few. Others refer to such undercutting of competitors' prices as a matter of course, while a few of them illustrate the effective use that may be made of this powerful competitive device. In addition to these competitive price cuts, it is apparent that the pricing of specials and the reduction of prices to stimulate the volume of business of a particular store also lead the chains to sell at dif- Volume 138 Financial Chronicle ferent prices in different communities. Whether or not price reductions made for the latter purposes result in prices lower than those of competitors is a matter with which the chain-store executives interviewed do not seem to be particularly concerned. And in this connection it is interesting to note that, although perhaps aware of their existence, chain-store officials in discussing their price policies make little or no mention of State or Federal laws against price discrimination as influencing or limiting such policies. By the Commission. CHARLES H. MARCH, Chairman. New Business of Lumber Mills Lowest of Year. New business at the lumber mills during the week ended Dec.23 1933 was the lowest of the year, even dropping below the holiday week ended Jan. 7 1933, and production was down to May levels according to telegraphic reports to the National Lumber Manufacturers Association from regional associations covering the operations of leading hardwood and softwood mills. The decline is largely seasonal and will doubtless prevail for two or theer weeks longer. The reports were made by 1,169 American mills whose production was 138,931,000 feet; shipments, 129,886,000 feet; orders, 87,180,000 feet. Reports of 22 British Columbia mills during the week ended Dec. 23 were: Production, 11,970,000 feet; shipments, 12,523,000 feet; orders, 9,550,000 feet. The Association, in its statement, further adds: All regions except Northern Pine where the cut is seasonally very low, showed orders below output,total softwood orders being 34% below production, hardwood orders, 48% below. Douglas fir and redwood were the only softwood regions reporting orders below those of the corresponding week of 1932. Softwood mills reported orders 11% below those of last year; production 30% above that of a year ago and shipments 23% above last year's shipments. The hardwood report was incomplete for identical mills. For the 51 weeks of 1933 to date, production was 29% above that of similar period of 1932; shipments were 15% greater in the same comparison and orders 19% greater. Unfilled orders at softwood mills on Dec. 23 were the equivalent of 14 days' average production of reporting mills, compared with 18 days a month ago and 14 days' a year ago. Forest products carloadings during the week ended Dec. 16 of 19,887 cars were 465 cars below the preceding week; 8,026 cars above the same week of 1932 and 1,736 cars above similar week of 1931. Lumber orders reported for the week ended Dec. 23 1933, by 755 softwood mills totaled 70,796,000 feet. or 34% below the production of the same mills. Shipments as reported for the'same week were 104.980,000 feet,cor 2% below production. Production was 107,543,000 feet. Reports from 431 hardwood mills give new business as 16,384,000 feet. or 48% below production. Shipments as reported for the same week were 24,906,000 feet, or 21% below production. Production was 31,388,000 feet. Unfilled Orders and Stocks. Reports from 687 softwood mills on Dec. 23 1933, give unfilled orders of 431,540,000 feet and 678,mills report gross stocks of 2,660,567,000 feet. The 315 identical softwood mills report unfilled orders as 347,579,000 feet on Dec. 23 1933, or the equivalent of 14 days' average production, as compared with 342,665,000 feet, or the equivalent of 14 days' average production on similar date a year ago. Identical Mill Reports. Last week's production of 359 identical softwood mills was 96,080,000 feet, and a year ago it was 74,922,000 feet; shipments were respectively 96,684,000 feet and 78,691,000; and orders received 66,907,000 feet and 75,418,000 feet. (The identical hardwood mill report is incomplete.) SOFTWOOD REPORTS. West Coast Movement. The West Coast Lumbermen's Association reported from Seattle that for 510 mills in Washington and Oregon and 22 in British Columbia rePorting, shipments were 1% above production, and orders 38% below production and 38% below shipments. New business taken during the week amounted to 44,383,000 feet,(previous week 42,153,000 at 497 mills); shipments 72,134,000 feet. (previous week 74.594.000); and production 71,723,000 feet, (previous week 91,103,000). Orders on hand at the end of the week at 488 mills were 290,658.000 feet. The 172 identical mills reported an increase in production of 14%, and in new business a decrease of 29%, as compared with the same week a year ago. Southern Pine. The Southern Pine Association reported from New Orleans that for 121 mills reporting, shipments were 17% below production, and orders 31 below production and 17% below shipments. New business taken during the week amounted to 16,091,000 feet, (Previous week 17,624,000 at 126 mills); shipments 19,443,000 feet (previous week 20,186,000); and production 23,367.000 feet (previous week 26.167,000). Production was 40% and orders 27% of capacity, compared with 43% snd 29% for the previous week. Orders on hand at the end of the week at 81 mills weer 44,159,000 feet. The 84 identical mills reported an increase in production of 28%. and In new business a gain of 33%, as compared with the same week a year ago. Western Pine. The Western Pine Association reported from Portland, Ore., that for 93 mills reporting, shipments were 2% below production, and orders 26% below production and 24% below shipments. New business taken during the week amounted to 13,681,000 feet (previous week 23,965,000 at 156 mills); shipments 18,066,000 feet (previous week 33.783.000), and production 18,443,000 feet (Previous week 30,875,000). Orders on hand at the end of the week at 75 mills were 54,250,000 feet. The 74 identical mills reported an increase in production of 112%, and in new business an increase of 6%. as compared with the same week a year ago. Northern Pine. The Northern Pine Manufacturers of Minneapolis, Minn., reported Production from 18 American mills as 316,000 feet, shipments 1.279,000 feet and new business 3,403,000 feet. Seven identical mills reported new business 199% greater than for the same week last year. California Redwood. The California Redwood Association of San Francisco reported production from 18 mills as 4,695,000 feet; shipments. 5,848.000 feet. and new business 2.390,000 feet. Production of 15 mills was 41% of normal production. Ten identical mills reported production 27% greater and new business 25% less than for the same week last year. 33 Northern Hemlock. The Northern Hemlock and Hardwood Manufacturers Association, of Oshkosh, Wis., reported softwood production from 17 mills as 969,000 feet; shipment, 733.000, and orders 398,000 feet. Orders were 5% of capacity compared with 6% the previous week. The 12 identical mills reported an increase of 221% in production and an increase of 47% in new business, compared with the same week a year ago. HARDWOOD REPORTS. The Hardwood Manufacturers Institute, of Memphis. Tenn., reported production from 414 mills as 29,976.000 feet; shipments, 23,893,000 and new business 15,733.000. The Northern Hemlock and Hardwood Manufacturers Association, of Oshkosh, Wis., reported hardwood production from 17 mills as 1.412.000 feet; shipments, 1,013,000, and orders 651,000 feet. Orders were 11% of capacity, compared with 8% the previous week. The 12 identical mills reported an increase of 71% in orders, compared with the same week last year. Secretary of Agriculture Wallace Approves Amendment to Wheat Agreement Covering Exports of Wheat From Pacific Northwest. It was announced on Dec. 19 that Secretary of Agriculture Henry A. Wallace has approved a minor amendment to the marketing agreement covering the export'ng of surplus wheat from the Pacific Northwest. The amendment, which is effective at once, serves only to clarify the accounting procedure on charges for cleaning smutty wheat turned over by the North Pacific Emergency Export Association to mills, on orders for flour. The change in the agreement, it is stated, was made at the request of the exporting Association in order to facilitate accounting for (of) the charges for cleaning such wheat. London Wheat Conference Postponed from Jan.22 to 29. On Dec.29 Associated Press, advices from London,stated: The session of the International Wheat Advisory Council to propose wheat recovery measures, including a world-wide minimum price scale, to-day was postponed from Jan. 22 to Jan. 29. John Van A. MacMurray, United States Minister to Estonia, Latvia and Lithuania, who is to preside, wired acceptance of the postponement from Riga. The change was made to accommodate delegates from 21 participating nations. The Commissions Committee, which will report on measures to increase consumption, likewise postponed a session scheduled to be held in Paris, Jan. 8 until Jan. 15. Russian Soviet Grain Crop Total Shows Large Gain— Harvest Indicated at 3,300,000,000 Bushels, Rise of 725,000,000 Over 1932. Associated Press advices from Moscow, Dec. 28, said: The total Soviet grain harvest this year was officially indicated to-day at 3,300,000,000 bushels, an increase over 1932 of 725,000,000 bushels. This indication, the first estimate to be regarded as official this year, was given by Abel S. Enukkize, Secretary of the Central Executive Committee of the Soviet Union,in an article in the newspaper Izvestia. From London on the same date Associated Press accounts said: Members of the International Wheat Commission, commenting to-day on a report from Moscow that the new Russian grain crop would greatly exceed the 1932 harvest, said efforts to rehabilitate wheat prices would be made more difficult by the large Soviet crop. Commission members said the Russian wheat crop would be considerably larger than those of 1932 or 1931 and pointed out that Russia had not issued separate official reports for wheat and other grains since 1930. but had given only the total for all cereals. Russian quarters here said to-night that latest estimates showed roughly a 25% increase in wheat and a 20% increase in other grains. This is less than the Russians claimed in September when they refused \N a wheat export quota of 37,000,000 bushels as offered by the Wheat Com, mission: ecretary Wallace Finds Improvement in Agriculture in Last Six Months—Annual Report to President Estimates Total 1933 Income from Farm Output and Government Aid at $6,400,000,000 vs. $5,143,000,000 in 1932—Favors "Controlled" Inflation Combined with Planned Production. Partly because of measures taken by the Federal Government to improve the economic situation, agricultural conditions have shown a rise throughout the Nation as a whole during the last six months, according to Secretary of Agriculture Wallace in his annual report to the President made public yesterday (Dec. 15). Mr. Wallace estimated that gross farm income from 1933 production will approximate $6,100,000,000, based on figures available in October covering marketings and prices. Payments to farmers for restrictions in production will increase this total to about $6,400,000,000, as compared with $5,143,000,000 received in 1932, the report stated. The rise in farm commodity prices from mid-March to mid-October was placed at 47%, but Mr. Wallace added that the gain in the exchange value of farm products only amounted to 22% because prices paid by farmers also advanced considerably. A Department of Agricultude press release gave the following additional details of the annual report: This improvement Secretary Wallace attributes mainly to National policy and action. It cannot be maintained, he says, unless farmers 34 Financial Chronicle under Federal guidance continue to plan their production. Agriculture entered the year with tremendous surpluses and with a curtailed market at home and abroad. The necessity of beginning farm recovery with production adjustments, the report declares, was overwhelming. Sections of the report devoted to various commodities tell what the Agricultural Adjustment Administration has accomplished. Secretary Wallace would supplement the emergency adjustment program with two additional supports: First, action calculated to expand foreign purchasing power in definite tangible ways, through tariff adjustments and otherwise; and second, through gradual reduction and control of the size of the farm plant as a whole. He recommends a long-time land utilization program, which would eliminate the lean rather than the fat acres. Secretary Wallace declares the Nation faces a choice between two lines of policy. Either it must modify the tariff policy so as to permit a larger quantity and value of imports to enter the country, or it must accept a considerable and permanent loss of its foreign markets. Either we must modify our tariff policy and perhaps also our policy with regard to international debts and foreign lending, or we must put our internal economy on substantially a nationalist basis, he asserts. It will probably be necessary in any event, the Secretary declares, to count on some permanent reduction in the export demand for agricultural products. How large the necessary reduction will be depends greatly, he says, on our tariff policy. Emergency adjustments of farm production to the present demand, he maintains, do not mean renouncing foreign trade. Recognition of agriculture's need for foreign trade, the report asserts, is quite consistent with a determination not to offer our foreign customers vastly more than they can possibly take. Discussing the relationship of National Recovery Administration policies to agricultural recovery Secretary Wallace notes that industrial codes had results that disappointed farmers at first. "The raising of wages and the shortening of hours in industrial employment." the Secretary says. "delays correction of the disparity between farm and non-farm prices, but this should be only temporary. Industries that have increased their costs through higher wages and shorter hours will soon be adjusted to the new level of costs. The prices of their goods will be adjusted to it similarly, and should advance less rapidly or become stabilized. Agricultural prices on the other hand should continue to advance with adjustments in farm production and increases in consumer buying power." Secretary Wallace declares, however, that the whole advance in nonagricultural prices cannot be attributed to the intended and legitimate influence of industrial codes under the National Industrial Recovery Act. "There has been some tendency for manufacturers and business groups to pyramid increased costs in consumers' prices. Many commodities are selling to-day at prices much higher than would be necessary to meet the expense involved in raising wages and shortening hours. It is an essential part of the NRA program that consumer buying power shall increase more than consumers' prices. Agriculture will suffer in proportion as this fails to come about. Recovery requires a balanced and approximately simultaneous gain in wage payments, consumer buying power, and farm prices." After discussing the necessity of a long-time land program to replace emergency production control the Secretary emphasizes the need of matching progress in production-science with progress in distribution-science. Efforts to balance production with demand and to prevent useless farm expansion suggests to many farmers, the report says, that agriculture has a quarrel with science; for science increases the farmers' productivity and thus tends to increase the burden of the surplus. Secretary Wallace declares on the contrary that the quarrel is not with science but only with the incompleteness of its victories so far. Gains in technical efficiency if not supported by scientific economic adjustments, cause trouble. However, the remedy. Secretary Wallace declares, is not to put a brake on science but to open new channels into which economic energy may profitably flow. "It is essentially a problem of distribution," the report says. "We have surpluses, in industry as well as In agriculture,largely because the laws that govern the distribution of income cause a polarization of wealth and poverty, a piling up of purchasing power at one end of the social scale. In consequence a majority of the people spend all their money before they \ have satisfied their wants, while a minority satisfy their wants long before they have spent their money. There results an unemployed block of purchasing power which tends to be transformed into capital and to go back into production instead of entering the market for consumable goods. This makes the surplus situation worse. "Potentially, the purchasing power existing at any time equals the supply of goods; but it does not necessarily enter the market for those goods. To make it do so, it must be joined to need or desire. When purchasing power gravitates away from need or desire, it lies idle or runs to waste in speculation and bad investment. How much more socially Intelligent it would be to redistribute purchasing power in such a way as to put it effectively to work. Unemployed purchasing power means unemployed labor and unemployed labor means human want in the midst of plenty. This is the most challenging paradox of modern times." The report recounts action taken up to the middle of October by the Agricultural Adjustment Administration to regulate the production of cotton, wheat, tobacco and corn and hogs. It reports the efforts made to regulate the dairy industry through marketing agreements, and to develop fruit and vegetable agreements. It condemns uncontrolled speculation, particularly in grain and cotton, as Incompatible with efforts to control production. The report contains sections on farm income from 1933 production and on the relation between the Government's monetary policy and the agricultural situation. Secretary Wallace declares monetary policy is not in itself the complete answer to the farm problem. He endorses controlled inflation as a means of promoting social justice through a fairer distribution of National income, but reminds farmers that depreciation of the dollar acts unequally on different agricultural products and of itself does nothing to correct maladjustments in production. "Currency policies." the report says,"may stimulate our exports temporarily, but should not lead us to think that a worldwide demand exists for our surpluses, unless sufficient changes have been made in our tariffs to build up sufficiently increased foreign purchasing power." In sections of the report devoted to scientific investigations in the Department of Agriculture the Secretary draws attention to a method recently discovered of avoiding losses by the kidney worm, the most widespread and destructive swine pest in the South. He reports further progress in the eradication of bovine tuberculosis; recounts numerous important achievements of the plant breeders; indicates dairy research results that fit In with the present crop reduction program; tells what is being accomplished at ten regional stations for the study of soil erosion; describes National forest policy as influenced by emergency conservation work and the allotment of more than $60,000,000 for land acquisition and National forest improvement; reports insect infestations of 1933; shows the bearing of home economics studies on family living problems; briefly analyzes the proposed new Food and Drugs Act; and reports progress in game conservation and Federal-aid road construction. Jan. 6 1934 Sugar Agreement Signed by Cuba—Crop for 1933-34 Is Limited to 2,315,459 Tons, of Which 1,500,000 Is to Come to United States—Mills Threaten to Halt. Conforming to the international sugar agreement signed at Brussels during the Machado regime President Grau San Martin on Dec;30 affixed his signature to the decree setting the 1933-1934 sugar crop at 2,315,459 long tons and ordering the grinding season to start on Jan. 15. According to a wireless message from Havana Dec. 30 to the New York "Times," from which the foregoing is taken, the quota to be shipped to the United States is set at 1,500,000 tons, domestic consumption at 150,000 tons and sales to countries other than the United States at 665,459 tons. The message continued: The sugar mills receive the same quotas as for 1932-33, except for the mills grinding less than 60,000 bags last year, which will be permitted to grind up to the 60,000-bag limit. Minimum Price Is Set. The National Export Sugar Corporation, official body in control of the sugar industry in Cuba, is prohibited from selling sugar to countries other than the United States for less than $4 a bag after Jan. 30 1934. This measure aims to protect the sugar stabilization bonds issued under the Chadbourne plan for world restriction. In the new total Cuba is including 522,000 tons segregated under the Chadbourne plan, the remainder being sugar left over from the 1932-33 crop. Of segregated sugar, 263,000 tons must be sold in 1934. Great Loss Is Feared. It is apparent Cuba faces an almost total loss of her greatest market— the United States—unless the present government can obtain recognition and an import quota. The present state of practical chaos existing throughout the Island leads political observers and financial experts to believe recognition will be delayed until Cuba can form a national government supported by a majority to take the place of the minority rule now holding power through force of arms. Whether the sugar mills in Cuba, almost entirely owned or controlled by American interests, will attempt to grind in the face of present labor conditions is a question of vital importance to all classes here at the moment. Strikes are in progress at most mills. Where settlements have been effected the managements have been forced to accept th terms of the workers. Several large mills have closed down recently and announced they will not grind this year. The Cuban Government immediately seized these properties and said it would operate them. It is estimated that more than 10% of the 178 active sugar mills have made "dead-season" preparations. If many mills remain idle the effect on the accentuated rural poverty and misery might result in complete lawlessness. Vice-President Garner Lays Cuban'Plea on Sugar Before Senate. Favorable consideration of a reciprocal trade pact with Cuba, which would provide further preferential treatment of sugar, is urged in a telegram presented to the Senate on Jan. 4 by Vice-President Garner, received by him from Dr. Rafael Guas, Inclan Presidente Camara De Representatives of Cuba. This was indicated in Washington advices Jan. 4 to the New York "Journal of Commerce" from which we also quote: "The Chamber of Representatives of the Republica unanimously resolved in to-day's session to address that co-legislative body invoking the cordial relations in interests and sentiments that our peoples have maintained in order that that Chamber with the authority and prestige of its proceedings should decide upon, in the interest of Cuba, a just and equitable reciprocity in the tariff problem, especially as regards the sugar industry, the basis of national economy," the message read. The telegram, in Spanish, has reposed upon the desk of the Vice-President since July 20 last. at has been referred to the Senate Finance Committee for its information. Sugar Consumption in United States During 1933 Decreased 81,381 Tons from 1932, According to Preliminary Estimate. Residents of the United States consumed 81,381 tons less of sugar in 1933 than they did in 1932 according to the preliminary estimate of sugar consumption of B. W. Dyer and Co., sugar economists and brokers. The estimate is based on complete distribution figures for the first 11 months of 1933k and a calculated consumption for December based upon reported sales. The firm announced on Jan. 2 that the estimated consumption for the year is placed at 5,620,000 tons raw sugar value as against 5,701,381 tons in 1932. The decrease amounts to 1.427%. The Dyer estimate places the December consumption for 1933 at 355,874 tons as compared with 375,104 tons in the corresponding month] of 1932. World Cotton Crop for 1933-34 Estimated 1,900,000 Bales Higher than 1932-33 Crop, but 2,000,000 Bales Less than 1931-32. The world cotton crop is tentatively estimated by the Bureau of Agricultural Economics, United States Department of Agriculture, at 25,500,000 bales as compared with 23,600,000 bales last year. This year's estimate is 1,900,000 bales higher than last year's, but 2,000,000 bales less than estimated world production in 1931-32, and less than the Volume 138 Financial Chronicle average of the last five years. An announcement issued Dec. 29 by the Department of Agriculture further said: The increase in this year's crop was almost entirely outside the United States, the production for foreign countries being estimated at 12,323,000 bales compared with 10,598,000 bales last year. The largest increase abroad was in Egypt, for which the estimate is 1,819,000 bales compared with 1,028,000 bales last year—the increase being attributed to both larger acreage and higher yields. The Bureau reports that the apparent supply of American cotton remaining In the United States on Dec. 1 was approximately 15,900,000 bales, whereas the apparent supply on Dec. 1 last year was 17,250,000 bales. The reduction is attributed to smaller carryover at the beginning of the season and to larger disappearance—consumption plus exports—during the first four months of the season. 'Upward Trend in World Cotton Mill Activity Reported by New York Cotton Exchange—Almost Back to Pre-Depression Levels—November Consumption of 2,130,000 Bales Compares with 2,198,000 Bales in November 1929. World cotton mill activity is tending upward, according to the New York Cotton Exchange Service, and is now only slightly below the levels of four seasons ago, when the depression was just beginning. During November, the Exchange Service said, cotton mills of the world used 2,130,000 . bales of all kinds of cotton as compared with 2,128,000 bales in October, 2,049,000 bales in November last season, and 1,089,000 bales two seasons ago. The November consumption of 2,130,000 bales was about 3% below the November 1929 consumption of 2,198,000 bales. Consumption registered a very slight increase, 0.1%, from October to November this season, whereas, on an average in the past six seasons, it has declined 1.6% from October to November. Under date of Jan. 2 the Exchange Service further noted: During the first four months of the current cotton season, that is, from Aug. 1 to Nov. 30, aggregate world consumption of all growths of cotton was the largest for any corresponding period since the 1929-30 season, totaling 8,521,000 bales as against 7,875,000 bales in the corresponding portion of last season, 7,777,000 bales two seasons ago, and 8,624,000 bales in 19291930. With the exception of the United States, all of the major divisions of the world cotton spinning industry used more cotton in November this season than in November last season, and all divisions, including the United States, used more than two seasons ago and three seasons ago. In the United States, consumption of all kinds of cotton in November totaled 475,000 bales as compared with 503,000 bales in November last season, 426,000 bales two seasons ago, and 416,000 bales three seasons ago. British spinners used 252,000 bales as against 199,000 bales last season, 251,000 bales two seasons ago, and 194,000 bales three seasons ago. Spinners of the Continent consumed 678,000 bales as compared with 626,000 bales last season, 597,000 bales two seasons ago, and 659,000 bales three seasons ago. Mills elsewhere, chiefly in the Orient, Brazil, Canada and Mexico, spun 725,000 bales as against 721,000 bales last season, 715,000 bales two seasons ago, and 641,000 bales three seasons ago. During the first four months of the current season, from Aug. 1 to Nov. 30, the United States, Great Britain and the Continent used more bales of all growths of cotton than during the corresponding portion of last season, two seasons ago, and three seasons ago, while mills elsewhere used less than last season, practically the same amount as two seasons ago, and somewhat more than three seasons ago. World consumption of all growths of cotton is running so much higher this season than last season and two seasons ago that notwithstanding the fact that the supply for this season was somewhat larger than for last season and considerably larger than for two seasons ago, the end of November stock this season was smaller than a year earlier, and only slightly larger than two years earlier. The world stock of all cottons in all hands on Nov. 30, including the unpicked portions of new crops, was approximately 32,860,000 bales as compared with 33,042,000 bales at the end of November last season, and 32,704,000 bales two seasons ago. The stock at the end of November was 182,000 bales smaller than a year earlier, and 156,000 bales larger than two years earlier, while the initial supply for this season, comprising the carryover on Aug. 1 plus the production, was 41,381,000 bales as against 40,917,000 bales for last season, and 40,481,000 bales for two seasons ago, or 464,000 and 900.000 bales larger. respectively. Textiles Principally Affected by Increased BritishIndian Import Duties. A bill introduced into the Indian Legislative Assembly on Dec. 22, and provisionally effective on Dec. 23, provides for increased import duties on numerous articles, principally affecting textiles, according to a cablegram received in the United States Department of Commerce from Trade Commissioner George C. Howard. The Department further announced, on Dec. 28: The principal item affected of interest to American trade is the imposition of a duty of 75% ad valorem on all tents. Previously cotton tents of not more than nine yards in length, from non-British countries, were dutiable at 25% ad valorem and other cotton tents at 75% ad valorem, with an alter. native duty of 6% annas (approximately United States $0.16 at current exchange) per pound, if higher, on plain gray tents. Rayon Cone Price Advanced Three Cents a Pound by du Pont Rayon Co. Announcement of a Sc. a pound increase on 150-denier knitting and weaving cones was made on Dec. 29 by the viscose process department of the du Pont Rayon Co. The increase became effective as of Jan. 1 and applies to all shipments on and after March 1, Skein prices are unchanged. 35 Petroleum and Its Products—Mr. Ickes to Redraft Proposed Petroleum Stabilization Agreement Price Control Measure Deferred Until Feb. 1— Mr. Byles Holds Permanent Federal Regulation of Oil Industry Unnecessary—Output Dips Sharply —Mid-West Crude Reduced. The proposed oil agreement submitted by leading units in the petroleum industry in an effort to avoid Federal price control which has been under consideration by Harold L. Ickes, Oil Administrator, is being redrafted by Mr. Ickes, it was disclosed in Washington yesterday (Friday), following a conference between the Oil Administrator and Senator Borah, who has opposed the proposed measure since its terms were made public. Last Saturday Senator Borah, in response to a request from Mr. Ickes to state in detail his objections to the proposed pacts, declared in a letter to the Oil Administrator that the agreement was unfair to both consumer and independent oil units in that it granted absolute power to the major companies. The provision which guarantees a marketing margin of 6 cents a gallon on regular gasoline "seems to be unfair to the public and only serves to increase the profits of the big companies who are now making very large profits," he contended. It does not seem possible under the agreement to protect the consumer or save the independent oil producers from "utter destruction" he continued, holding that if the situation is such as to require price fixing, "let the prices be fixed by the Government through responsible agencies." Answering Senator Borah's criticism of the proposed agreement, Wirt Franklin, president of the Independent Petroleum Association of America, said that "he comes to the erroneous conclusion that 'the public has no voice in the operation of the agreements, no measure of governmental control or supervision is provided for.' "All familiar with the agreements, of course, recognize that this is not true because each agreement provides, 'this agreement shall not become effective until approved by the President of the United States or a Federal agency duly authorized by him and the President may withdraw such approval and terminate this agreement at any time upon finding that it is contrary to the public interest,' thus giving confidence and assurance not only to those engaged in the industry but to the consuming public that the final control of all these agreements rests with the President of the United States." Mr. Franklin stressed the fact that he did not question Senator Borah's "sincerity" in making his criticism but contended that his information came from "destructive elements within the oil industry." However, since the agreements were first turned over to the oil administration, Mr. Ickes has stressed the fact that they would be approved only after he had been convinced that they would be fair to all factors concerned, and that if it were necessary to revise them, he would do so. The announcement in Washington yesterday seems to indicate that the protests of the independent factors against the agreements' terms has borne fruit although nothing official can be learned until the revised agreements have been made public. Announcement was made in Washington Tuesday by Mr. Ickes of a month's postponement to Feb. 1 of the tentative effective date of the proposed schedule of minimum prices for the petroleum industry. This step was necessary in order to maintain the proper machinery for Federal regulation of petroleum prices, if, through some unforeseen contingency, such action is necessary. In view of the oftstated opposition of Mr. Ickes to price control, however, approval of the proposed agreements, once they have been revised to meet the oil administrator's demands, seems the logical conclusion to be drawn from the situation. While admitting that due to unsettled conditions with the industry, Federal control of production might be necessary for the time being, Axtell J. Byles, President of the American Petroleum Institute, contends that there is no reason why this should develop into Federal operation of the industry in a summary of the oil industry made public during the week. "By reason of the fugitive nature of crude oil in place, and the fact that, without restraint by government or enforcible agreement, the drilling of a discovery well usually leads to the immediate complete development and early exhaustion of a pool, I would hazard the opinion that this, in this industry, Federal regulation of crude oil production may be necessary for some time to come", he said. "Such 36 Financial Chronicle a policy need not and should not involve governmental operation of the industry. "If we produce enough crude oil to supply consumer demand for products,less enough to permit modest withdrawals from storage until they reach economic levels, it will not be possible to overproduce gasoline. Free interchange of crude and gasoline between those who are long and those who are short of these commodities will result; inventories will be liquidated, and the oil industry will be prosperous. Confidence once established in the stability of economic quotas of crude oil, willing buyers at fair prices will appear for both crude and products. The Government can, by fiat, establish a price, but no government can, by fiat, establish a value or maintain a price against a market value. "Under Government control of production," Mr. Byles concluded, "there is no danger of runaway prices for motor fuel or refined products and, should such prices threaten, the remedy is in the hands of the Government through its control of production." Operators throughout the nation were successful in reducing the daily average crude output total last week to a point below the Federal allotment, reports to the American Petroleum Institute disclosed. Daily average production dropped 150,050 barrels from the preceding week to 2,139,850 barrels, compared with the Federal allowable of 2,210,000 barrels. A sharp slash in production in Oklahoma last week was mainly responsible for production dipping under the Federal total, although a fair drop in California output was shown. Output in East Texas was up approximately 4,000 barrels during the week. The American Petroleum Institute figures do not include any estimate on "hot oil" produced. With illegal production of crude rife in the East Texas field, inclusion of this total, were it possible to compile an authoritative total, would probably have added heavily to the Texas figures. The Ohio Oil Co. yesterday (Friday) reduced the price of Illinois and Princeton grades of crude oil 10 cents a barrel to $1.13. No effects from the reduction, held in the industry as purely a local development, are expected to be felt in crude oil prices in the Southwest area. Price changes follow: Friday, Jan. 5.-The Ohio Oil Co. to-day cut Illinois and Princeton grades of crude ell 10 cents a barrel to $1.13, effective immediately. Prices of Typical Crudes per Barrel at Wells. (All gravities where A. P. I. degrees are not shown.) Bradford, Pa 82.45 Eldorado, Ark., 40 81.00 Corning. Pa 1.20 Rusk, Tex., 40 and over 1.03 Illinois 1.13 Darst Creek .87 Western Kentucky 1.13 Midland District, Mich .90 Mid-Cont., Okla.. 40 and above___ 1.08 Sunburst, Mont 1.35 Hutchinson, Tex., 40 and over _ _ 1.03 Santa Fe Springs, Calif.,40 and over 1.30 Spindietop, Tex., 40 and over 1.03 Huntington, Calif., 26 1.04 Winkler, Tex .75 Petrone, Canada 1.82 Smackover, Ark.. 24 and over .70 REFINED PRODUCTS-RETAIL GASOLINE PRICES CUT IN METROPOLITAN AREA-ADMINISTRATOR ICKES PROVIDES REGULATIONS FOR REDUCING MOTOR FUEL STOCKS. Possibility of a general reduction in tank-wagon and retail prices of gasoline along the Atlantic seaboard loomed this week as price-cutting tactics brought about a reduction of 1 cent a gallon in third-grade gasoline service station quotations throughout the metropolitan area. Unsettled conditions in the local field result from gallonage competition in which dealers have used their margins to undersell their competitors. The Sinclair Refining Co., marketing subsidiary of the Consolidated Oil Corp., started the action Wednesday with the 1-cent a gallon cut in third-grade gasoline prices, followed immediately by all major units in the local district. The Sun Oil Co., which markets only one gasoline, Friday reduced prices 1% cents a gallon in Kings, Queens, Suffolk and Nassau counties in order to maintain the usual differential over third-grade gasoline of competitors. Local factors fear that the weakness, aided by the normal seasonal dip in gasoline consumption, will spread into the regular grades of gasoline if the price-war continues unchecked. As yet, the gasoline tank car market has been unaffected by the moves but any spread of the price slashing would, of necessity, force downward revisions in bulk gasoline prices. Bulk gasoline prices, while holding unchanged, were further unsettled by the current easiness of the Baltimore market where local conditions have brought about a slight easing off in quotations. Favorable weather conditions, which would spur consumption of gasoline, seriously curtailed by the unusually severe weather prevailing here lately, would aid the Jan. 6 1934 retail price structure and, in doing that, would strengthen the tone of the bulk gas market. The favorable effects of the % cent a gallon reduction in gasoline prices due to the dropping of % cent of the 1% cent a gallon Federal tax on Jan. 1 was offset by the current uneasiness in the market although some deferred buying was reported. Fuel oils in the local market were strong, aided by heavy consumption in recent cold spells. Bunker oil prices held unchanged at $1.20 a barrel, refinery, for Grade C with reports of an early advance in this item offset by the continued easiness in the Philadelphia markets. Diesel Oil was well held at $1.95 a barrel, refinery. Kerosene prices showed no change during the week despite a firm market and slightly better trade interest, quotations holding at 53.4 to 53/i cents a gallon, tank car lots, refinery, for 41-43 water white. Harold L. Ickes, oil administrator, has approved the recommendations of the Planning and Co-ordination Committee of the oil industry providing for voluntary curtailment of gasoline production during the current month in order to bring stocks down to the maximum total of 51,500,000 barrels on Jan. 31 established by the oil administration. The curtailment program will be carried out under the direction of the regional committees of the co-ordination group. In effect, the announcement pointed out, the resolution places responsibility for allocating production to individual refiners on the regional sub-committees. The Committee's proposal provides that each refining company "shall conduct its operations so that it will comply with this order and contribute its full share to the attainment of the inventory levels stipulated for the close of January," and instructed the regional committees to take the necessary steps to carry out the order. The resolution also provided that each refining unit shall report, to the agencies to be specified by the regional groups, its contemplated production and sales of gasoline during the current month and its contemplated stocks as of Jan. 31. Refiners whose production of gasoline is in excess of the amounts set by the agency acting for the regional group shall notify the Planning and Co-ordination Committee and submit the reasons for their action, accompanied by full statistical data. At the same time, the Administrator announced his approval of an interpretation of a section of the marketing provisions of the Petroleum Code designed to prevent the evasion of credit provisions in the trade charter. The interpretation applies to Rule V of Article V and provides that all consignment shipments are to be included in the phrase "all deliveries" in the rule. Gasoline stocks as of Dec. 30 stood at 51,580,000 barrels, according to reports to the American Petroleum Institute. This represented a decline of 178,000 barrels from the previous weeks compared with increases of 956,000 and 892,000 barrels, respectively, in the two preceding weeks. An order issued by Secretary Ickes some weeks ago set 51,000,000 barrels as the allowable storage figure for Dec. 31 last. Refineries representing 92.4% of the potential capacity ran at an operating rate of 63.8% last week, compared with 66.2% in the week ended Dec. 23. The A. P. I. report disclosed. Recently the operating rate had been advancing. Price changes follow: Monday, Jan. 1.-Gasoline prices throughout the Nation dipped 34-cent a gallon as the Federal tax was reduced that amount to-day. Wednesday. Jan. 3.-The Sinclair Oil Co. reduced the price of thirdgrade gasoline 1 cent a gallon in the metropolitan area. Thursday. Jan. 4.-All major distributing factors met the 1 cent a gallon price cut in third-grade gasoline prices instituted yesterday by Sinclair Oil. Friday, Jan. 5.-The Sun Oil Co., which markets only one gasoline, reduced service station prices in the metropolitan area 1% cents a gallon in order to bring prices Into the normal differential with third-grade gasoline quotations of its competitors. New York Atlanta Baltimore Boston Buffalo Chicago Cincinnati Cleveland Denver Gasoline Service Station, Tax Included. $ 18 Detroit New Orleans $ 15 $ 18 19 18 Houston Philadelphia 1.12 193 Jacksonville 19 Ban Francisco: .18 Los Angeles: Third grade 17 .19 Third grade 185 Above 65 octane_ .1954 .16 Standard Premium 19 .2I)i .205 Premium .21 St. Louis 14 .205 Minneapolis .15 t Less taxes. .19 Kerosene. 41-43 Water White, Tank Cares F.O.B. Refinery. New York: Chicago New Orleans. ex--$.03y4 $ 0214-.0334 1-(Bayonne).-8.05X-.05)i!Los Ang.,ex_ _ .0454-.06 Tulsa .0454-.03)4 North Texas .03 Fuel Oil, F.O.B. Refinery or Terminal. N. Y. (Bayonne): California 27 plus D Gulf Coast 0 81.05 Bunker C $1.20 1.75-1.00 Chicago 18-22 D. .4254-50 Diesel 28-30 D. 1.95INew Orleans C 80 Phila. Bunker C. 1.15-1.20 Gas 011. F.O.B. Refinery or Terminal. N. Y. (Bayonne): 'Chicago: $ 01)4 28 plus GI 0..2.034-.041 32-86 G 0 $.01,4'Tulsa Volume 138 Financial Chronicle U. S. Gasoline. Motor (Above 65 Octane). Tank Car Lots, F.O.B. Refinery. $.05-.0534 Chicago N. Y.(Bayonne): N. Y. (Bayonne): Shell Eastern Pet_$.0650 New Orleans,ex_ .04-.0434 Standard Oil N. J.: .04-.0414 Arkansas Motor, U./3_ __ 3.065 New York: 05-.07 Colonial-Beacon.... 0625 California 62-83 octane__ .085 .04M-.07 ex_ Angeles, Los 0850 zTexas •Stand. 011 N. Y. .07 064-.073i .0825 Gulf ports Gulf Tide Water Oil Co. .07 .04M .0625 Tulsa Republio Oil zItichfield 011(Cal.) .07 .0514 Sinclair Refining_ .08M Pennsylvania_ _.. Warner-Quin. Co_ 07 City. Island Long • $.07. z Richfield "Golden." z "Fire Chief." Senator Borah Renews Attack on Oil Marketing Agreements—In Letter to Secretary Ickes Sets Gasoline Price Rise at $486,000,000 Since June 1— Assails "Independent" Association Headed by Wirt Franklin—Latter Says Price Rise Has Merely Lessened Industry's Losses. The pending pool and marketing agreements for the oil industry were represented as unfair to consumers and independents in a letter addressed on Dec. 28 by Senator Borah to Secretary Ickes, Administrator of the petroleum code. Mr. Borah also attacked the Independent Petroleum Association, headed by Wirt Franklin, and charged that it was a "decoy" for large oil companies. The Senator said that there was only one independent company in its membership and denied that real independents favored the agreement. He expressed confidence that the Government would revise the agreement if the actual independents were consulted and the oil situation more carefully surveyed. In a reply issued on Dec. 31, Mr. Franklin said that any increase in the cost of gasoline had gone to lessen losses within the oil industry and not to increase profits. He added that Senator Borah's information came from "destructive elements" within the industry and said he did not question the Senator's "sincerity" in making his criticisms. Previous references to the correspondence between Senator Borah and Secretary Ickes were contained in our issues of Dec. 23 (page 4436) and Dec. 30 page 4599). IThe text of the Senator's letter of Dec. 28 follows: Dec. 28 1933. The Honorable, the Secretary of the Interior, Washington. I). C. My dear Mr. Secretary: In compliance with your suggestion that I write you more in detail relative to the petroleum agreements, marketing and pool agreements, I take the liberty of submitting further views. First, my investigation leads me to state that since June 11933. the prices for gasoline alone, omitting other refined products, have increased at the rate of nearly $500.000,000 annually, to be exact, 3488,000,000, while the Costs superinduced by the code are only $125,000,000 annually. Under the marketing agreement, confining ourselves now to the question of prices, the price-fixing provisions of Sections 1 and 2 will add a further annual burden on the consumers to the extent of approximately $225,000.000 by reason of the establishment of guaranteed marketing margin of 6 cents a gallon on regular gasoline. This guarantee seems to be unfair to the public and only serves to increase the profits of the big companies, who, according to the figures available, are now making very large profits. The effect of this guaranteed margin will also eliminate from the marketing of gasoline the low-cost distributors who have heretofore been able to pass on their savings to the consumer to the mutual advantage of both parties. The marketing agreement further puts into the hands of a small group representing the big interests, the large companies, the power to control, or influence, the trend of prices at their will without regard to the public interest. It may be argued that this power will not be abused, but such argument would be in the face of all the experience of the past where Power and profits are combined, and also at war with human nature. If we are not convinced by the history of the large oil companies of this country that such power would be abused, there would be no way to convince us except through actual experience and after the public had suffered extortion. Then, there is added Section 4 of the marketing agreement which gives this small group of private interests absolute and dictatorial powers of, punishment over those who do not conform to their policies. This seems to me a perfectly indefensible provision. It gives powers which ought not to be lodged anywhere, but certainly not with those who are interested in private gain. In fact, I think this general observation is warranted that the marketing and pooling agreements combined will have the effect of establishing a complete system of price-fixing in the hands of the oil industry itself. controlled by the major companies without the intervention of any public agency. I can find nowhere in these agreements any power lodged with any public agency or with the Government restraining or controlling the large companies in dealing with the oil industry. The public has no voice in the operation of the agreements, no measure of Governmental control or supervision is provided for, the prices are to be fixed by those interested in the industry. The competitive factors are to be, so far as possible, eliminated or definitely controlled. The consuming public, under these agreements in their present form are wholly without recourse in case of justified complaint. The same may be said to be true of retailers under the agreements. They are now in competition with the Integrated companies. Their minimum profits in certain cases are fixed by the agreement and their maximum profits in other cases. It seems to me it cannot be successfully controverted that the constitutional rights of consumers and the low-cost marketers are taken away by these agreements. They are not parties to the agreement and no way is provided by which they can effectively be protected. This constitutes a fundamental objection to the agreements. If we are to have price-fixing let it be Governmental price-fixing. In this connection I wish to quote from a telegram received from the independents of the oil industry on the Pacific Coast, representing a capital investment of approximately 35,000.000. I quote: "We invite your particular attention to that section of the marketing agreement which would permit the making of special allowance of onehalf cent per gallon to those dealers who will agree to handle one gasoline to the exclusion of all others. Obviously, this would be of particular advantage to the major oil companies. It cannot help but seriously impair and could possibly in time destroy the competition of the independents." 37 Speaking particularly of the pool agreement, it supplants the monopolistic power of the marketing agreement. It definitely enables the large companies to restrict the sale of gasoline to the amount they can handle at a profit after July 1 1934. The power to buy a "surplus" over the determined amount on any date can be used to ruin consecutively all independent marketers throughout the country by applying the pool's purchasing at any Point where independent competition is strong, thus drying up the latter's supply of gasoline. The effect of such a policy on prices is clear and unmistakable. I called attention in a former letter to the "stabilization committee." This agreement creates a stabilization committee of two representatives of large integrated companies and one representative of a smaller integrated company in each marketing district. Thus the representatives of the two large integrated companies may control the marketing activities of all competitors who are signers of the agreement in any locality. The Committee has the power of veto over any signer's desire to meet competition. It also has the arbitrary discretionary power to coerce and boycott distributers, jobbers, wholesalers or retail dealers by means of suspension of supplies. This is a tremendous concentration of power in the hands of interested parties, and from the exercise of such power there is no appeal to any public agency. In conclusion. Mr. Secretary, it does not seem to me possible under this agreement to protect the consumers or to save from utter destruction the independents. It seems to me it would in effect be an approval of the combine and monopoly and then withholding all power of contol over the combine and monopoly. The agreements, as a whole, are objectionable. I repeat, if the situation is such as to require price fixing, let the prices be fixed by the Government through responsible agencies. I am sending a copy of this letter to the solicitor, Mr. Margold. With great respect. I am, Sincerely, WILLIAM E. BORAH. In his reply to Senator Borah on Dec. 31 Mr. Franklin said, in part: The Senator says that the price of gasoline since June 1 has increased at the rate of $486,000,000 annually. But he does not point out that whatever increase enjoyed so far does not amount to increase in profits but rather a lessening of the losses of those engaged in the industry. Certainly the Senator would not want to leave the impression that this represents profits the industry is enjoying. In the short time the Senator has had to observe these contracts, he comes to the erroneous conclusion that the "public has no voice in the operation of the agreements, no measure of governmental control or supervision in provided for." All familiar with the agreements, of course, recognize that this is not true because each agreement provides."this agreement shall not become effective until approved by the President of the United States or a Federal agent,' dilly authorized by him and the President may withdraw such approval and terminate this agreement at any time upon finding that it is contrary to the public interest," thus giving confidence and assurance not only to those engaged in the industry but to the consuming public that the final control of all these agreements rests with the President of the United States. Secretary Ickes Issues Order Providing Voluntary Curtailment in Gasoline Output—Seeks 51,500,000Barrel Quota by Jan. 31. Secretary Ickes,acting in his capacity as Oil Administrator, on Jan. 2, approved a recommendation by the Petroleum Planning and Co-ordination Committee providing for voluntary curtailment of gasoline production during January, under the supervision of the Committee's regional committees following the recent order that gasoline stocks as of Jan. 31 should not exceed 51,500,000 barrels. Mr. Ickes also announced that he had approved an interpretation of a section of the marketing provisions of the code "designed to prevent evasion" of its credit provisions. A Washington dispatch of Jan. 2 to the New York "Journal of Commerce" added the following details of the statemet: The plan for curtailment of gasoline production by the refineries was recommended to the Secretary by the Planning Committee in a resolution drafted in accordance with the recent order of the Administrator requiring reduction of stocks to 51,500,000 barrels on Jan. 31. It was interpreted by the Oil Administration as placing responsibility for allocating refinery production to individual refiners on regional subcommittees. It provides that each refining company "shall conduct its operations so that it will comply with this order and contribute its full share to the attainment of the inventory levels," stipulated for the close of January. Instructions are given the regional committees to carry out the order. Refining companies would be required to report to whatever agencies that may be designated by the regional refining committees their contemplated production and sales of gasoline during January and their contemplated stocks at the end of the month. Refiners to Report. Refiners whose production of gasoline exceeds the amounts designated by the agency acting for the regional committee are required to notify the Planning Committee and submit reasons for their action, along with full statistical data, it was stated. The interpretation, through which "evasions" of the credit provisions of the code are hoped to be stopped,applies to Rule 5 of Article 5 of the pact. It provides, according to the Administration, that all consignment shipments are to be included in the phrase "all deliveries" in that rule. Secretary Ickes, in taking action, declared that the Planning Committee and its marketing subcommittee had recommended the step, advising him that consignment shipments have been used to establish credit provisions of the code. Crude Oil Output Below Federal Quota—Daily Average Falls 150,050 Barrels in Week Ended Dec. 30 1933, Due in Part to Observance of Christmas Holidays— A Further Falling Off Noted in Inventories of Gas and Fuel Oil, The American Petroleum Institute estimates that the daily average gross crude oil production for the week ended Dec. 30 1933 was 2,139,850 barrels, a decrease of 70,150 barrels under the allowable figure effective Dec. 1 1933 as 38 Financial Chronicle set by Secretary of the Interior Ickes. This also compares with 2,289,900 barrels per day produced during the week ended Dec. 23 1933, a daily average of 2,275,100 barrels during the four weeks ended Dec'. 30 and an average daily output of 1,698,150 barrels during the week ended Dec. 31 1932. Inventories of gas and motor fuel stocks were off 1,373,000 barrels during the week under review, or from 119,201,000 barrels at Dec. 23 to 117,828,000 barrels at Dec. 30. In the preceding week inventories were reduced by 853,000 barrels. Further details, as reported by the American Petroleum Institute, follow: Imports of crude and refined oils at principal United States ports totaled 991.000 barrels for the week ended Dec. 30. a daily average of 141,571 barrels, compared with a daily average of 122,643 barrels over the last four weeks. Receipts of California oil at Atlantic and Gulf ports totaled 590.000 barrels for the week, a daily average of 84,285 barrels compared with a daily average of 93,464 barrels over the last four weeks. Reports received for the week ended Dec. 30 1933 from refining companies controlling 92.4% of the 3,616,900-barrel estimated daily potential refining capacity of the United States, indicate that 2,134,000 barrels of crude oil daily were run to the stills operated by those companies and that they had in storage at refineries at the end of the week, 27,937.000 barrels of gasoline and 117 828,000 barrels of gas and fuel oil. Gasoline at bulk terminals, in transit and in pipe lines amounted to 20,363,000 barrels. Cracked gasoline production by companies owning 95.1% of the potential charging capacity of all cracking units, averaged 413,000 barrels daily during the week. DAILY AVERAGE CRUDE OIL PRODUCTION. (Figures In Barrels.) Federal Actual Production. Average Agency 4 Weeks Allowable Week End. Week End. Ended Effectits Dec. 30 Dec. 23 Dec. 30 Dec. 1 1933. 1933. 1933. Oklahoma 457,000 112,000 jCalgO 9 Panhandle Texas North Texas West Central Texas West Texas East Central Texas East Texas Conroe Southwest Texas Coastal Texas (not including Conroe) Total Texas 888,000 North Louisiana Coastal Louisiana Total Louisiana Arkansas Eastern (not incl. Michigan) Michigan Wyoming Montana Colorado Total Rocky Mt.States-- New Mexico California Week Ended Dec. 23 1932. 395,450 109,850 505,800 106,350 488,150 108,050 356.900 89.850 40,400 57,450 23,950 119,600 43,2b0 406,800 55,500 40,600 40,650 57,350 23,850 120.350 42,950 402,850 55,200 43,300 41,850 57,350 23,950 120,450 43,200 402,150 55,200 42,550 44,450 47,300 24,250 156,550 50,150 23,100 52,200 103,450 104,100 104,300 108,050 891,000 890,600 891,000 506,050 26,200 42,050 25,600 45,200 25,900 45.250 29,250 33,950 69,000 68,250 70,800 71,150 63,200 33,00 94,200 29,000 32,300 89,500 27,300 32,200 95,950 29,900 28,000 6,060 2,240 32,400 92,750 29,750 29,400 6,000 2,400 92,950 17,500 29,350 6,550 2,450 29,300 6,500 2,450 29,850 5,900 2,700 32,800 36.300 37,800 38,350 38,250 38,450 41,200 42,000 446,400 42,050 477,900 42,050 481,550 27,850 472,600 450.000 Total 2.210.000 2.139,850 2,289,900 2.275,100 1,698,150 Note.-The figures indica ed above do not include any estimate of any oil which might have been surreptitiously produced. CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS; AND GAS AND FUEL OIL STOCKS, WEEK ENDED DEC. 30 1933. (Figures in Barrels of 42 Gallons) Daily Refining Capacity of Plants. District. Reporting. Potential Rate. East Coast-Appalachian__ Ind., Ili, Ky__ Okla., Kan.,Mo Inland Texas__ Texas Gulf...... Louisiana Gulf_ No. La.-Ark.. __ Rocky Mtn_ ___ California Total. % Crude Runs to Stills. •Motor Fuel % Daily OperStoats. Average. cud. , Gas and Fuel OU Storks. 582,000 582,000 100.0 478,000 82.1 14,650,000 6,602,000 150,800 139,700 92.6 74,000 53.0 2,058,000 1,097,000 436,600 425,000 97.3 269,000 63.3 7,094,000 4,303,000 462,100 379,500 82.1 189,000 49.8 5,680,000 3,680,000 274,400 165,100 60.2 72,000 43.6 1,248,000 1,729,000 537,500 527,500 98.1 440,000 83.4 4,802,000 6,121,000 162,000 162,000 100.0 125,000 77.2 1,370,000 1,7.)1,000 82,600 76,500 92.6 40,000 52.3 226,000 517,000 80,700 63,600 78.8 24,000 37.7 884,000 710,000 8/8,200 821,800 96.9 423,000 51.5 13,568,000 91,275.000 Totals week: Dec.30 1933_ 3,616,900 3,342,700 92.4 2,134,000 63.8 b51,580,000 117,828,000 Dec.23 1933_ 3.616.900 3.342.700 92.4 2.214.000 66.2 c51.758.000 119.201.000 a Below are set out vet mates of total motor fue stocks in U. S. on Bureau of Mines basis for week of Dec.30, compared with certain Dec. 1932 Bureau figures: A. P. I. estimate on B. of M. basis, week Dec. 30 1933 A. P. I. estimate on B. of M. basis, week Dec. 23 1933 U. S. B. of M. motor fuel stocks. Dec. 1 1932 51,054.000 barrels U. S. 13. of M. motor fuel stocks. Dec. 31 1932 53,805,000 barrels b Includes 27,937,000 barrels at refineries, 20,363,000 barrels at bulk terminals, In transit, and pipe lines, and 3,280,000 barrels of other fuel stocks. c Includes 27.450.000 barrels at refineries. 20,988,000 barrels at bulk terminals, In transit, and pipe lines, and 3.320,000 barrels of other motor fuel stocks. x Because of the Many changes made by companies in their method of reporting stocks to the American Petroleum Institute, It has been decided to discontinue our attempt at estimating figures on a Bureau of Mines basis until further notice. Price of Chilean Nitrate Advanced a Ton. Approximately $1 The Chilean Nitrate Sales Corp. announced on Jan. 2 a new schedule of prices for the first half of 1934 involving an advance of approximately $1 a ton on its products. Jan. 6 1934 Lead Price Reduced 15 Points to 4 Cents a Pound, New York. The price of lead was reduced 15 points on Jan. 2 by the American Smelting & Refining Co., bringing the quotation for New York delivery to 4 cents a pound. Foreign Holdings of Shares of the Steel Corporation. The United States Steel Corp. common shares held abroad at Sept. 30 totaled 280,589 shares, as compared with 280,898 shares at June 30. In the case of the preferred, the decrease was somewhat greater for the period, the amount held at June 30 being 73,397 shares and at Sept. 30,71,885 shares. The exact amount of the decreases were 309 shares of common and 1,512 shares of preferred. Holdings abroad of preferred stock have steadily decreased in recent years and the present figure is the smallest ever given out. Figures for both classes were, of course, much greater in the period at the beginning of the World War. Below we show the figures for various dates since March 31 1914: FOREIGN HOLDINGS OF SHARES OF U. S.STEEL CORPORATION S11.30 M2. 3. S.30D31 ZA.31 gi2.31.1930. Dec-311t a1De 19. 111 Common Stock. Africa Algeria Argentina Australia Austria Azores Belgium Bermuda Bolivia Brazil British India Canada Central America_ Chile China Colombia Denmark Ecuador Egypt 339 314 331 219 199 183 99 474 2,296 92 276 2,258 1 2,928 227 17 385 88 311 2,255 1 3,130 227 17 406 47 222 2,234 1 2.663 227 17 267 50 217 3.418 1 2.756 150 1 242 122 198 2.210 3 2,645 150 1 212 3,137 217 7 378 2 340 8 3 690 3-,509 48 --18 ii 64,259 456 382 331 8 34 la 1 18 -- 517.)5 56:,Vii 55;i5i 51.451 50i5O 657.d8O 553 553 528 599 493 1,376 1 2 23 290 499 562 549 366 556 456 143 40 1 1 18 18 2 28 23 23 16 31 31 1 i do =54,630 63,397 44.575 43.140 37,968 710,62I 70 70 64 -15.765 15,906 14,522 13,375 12:1557 7 64-,nit 1,531 1,507 1.197 1.037 880 2,664 100 74 73 72 57 51 90,332 02.840 53.725 43.654 42.544 342-,eia 149 265 149 24 15 _ 188 214 102 16 14 _- --714 688 656 425 343 2,1591 1,253 1,280 1.107 903 855 146 3.096 3.063 1.345 210 46 6 37 37 37 7 37 37 37 33 33 __ 56 56 56 56 56 _-73 1.127 2,043 1,425 1,035 36 30L 164 183 129 108 76 'TO 5 5 68 103 8 13 11 ---49 49 39 28 9 9 9 --------190 28 28 31 16 9 309 309 10 6 4 0 2,999 3.449 2,887 2,814 2.735 4,208 England 60:15. 415 Finland 66 France 14.435 Germany 1,316 Gibraltar Greece 193 Holland 115,421 Hungary 359 India 665 Ireland 656 Italy 1,361 Japan 3,073 Java 37 Luxembourg-. 62 56 Malta Mexico 1,133 Norway 162 Paraguay 5 Peru 92 Poland 48 Portugal 2 Rumania 28 Russia 309 Scotland 3.230 Beryls 1.477 2 Spain ,080 , Sumatra5 5 1,684 1.680 Sweden 3,649 2,878 Switzerland 65 Turkey 55 219 Uruguay ---Venezuela 131 61 Wales West Indies 5,509 a;581 No address YAM 5 1,837 2.929 65 219 ---141 2-.NO 2,225 1.362 1-,225 938 1,511 35 219 ---17 566 1,249 5 656 2.680 --, i 1,470 219 ---3 - 11 -Oil 1,672 --- 219 ---33 67.i0 :ON OH 65ei _ ------------Total 280.589 251,896 273,038 199,965 182.072 182,150 1193064 Preferred Stock Africa 125 114 114 104 104 104 58 Algeria ------------------------76 Argentina 30 30 11 Australia 60 70 70 60 60 60 484 Austria 998 979 998 1,009 528 538 2,086 Azores 120 120 120 120 120 Belgium 540 540 546 523 523 570 -s-Bit Bermuda 533 533 533 533 533 520 91 Brazil British India--81 Canada 2or.dii 21,66o 21Y.doi 21.4dd 257.868 vadd 34673 Central America.. -----------530 100 130 -146 Chile 42 42 42 42 42 32 12 China 124 144 124 124 132 136 43 Colombia 5 5 5 5 5 5 _ Denmark 217 217 217 217 217 217 "iiii Ecuador ---ii --ii --ii --ii --ii -Lid 16,058 24,306 23,217 27,032 34,135 32,132 174,906 France 8,663 8,793 8,776 8,783 9,641 10,658 36,749 Germany 984 957 947 1,017 1.016 1.091 3,962 Greece 13 13 13 13 13 13 38 Holland 11,297 10.927 10,957 9,832 10.509 10,369 29,000 Hungary 8 8 10 10 India 598 698 1,032 596 596 596 Ireland • 590 601 601 554 520 514 4,119 Italy 1,383 1,419 1,423 1.409 1,432 1.385 1,678 Japan 1 1 1 1 1 1 81 Luxembourg.- -63 63 83 63 63 63 Malta ------------------------405 Mexico 264 84 74 236 Morocco .. ---. ---7 Norway 14 14 24 14 14 12 27 Poland 34 1 1 1 3 Peru a Portugal 121) Russia 217 2N 2i 17 7 7 43 Scotland 1.414 1,421 1,416 1,493 1.508 1.442 Serbia--- ---_ 13,747 220 Spain 371 371 371 443 403 482 432 sweden 834 745 795 722 722 717 1,137 Switzerland 2,018 2,790 2,490 1,998 2.018 3,488 2,617 Turkey 103 103 103 100 100 100 100 Wales1,068 WestIndies 2,330 2,377 2.417 2,507 2.737 2.837 874 Total 71,885 79.936 78.350 80,792 93,259 94.524 309.457 Egli:nd Financial Chronicle Volume 138 The following carries the comparisons back for a long series of dates: PREFERRED. Shares. Per Ct. . Date-3.67 312.311 1,285.66 25.29 Mar.31 1914 312,832 8.67 1.274.247 25.07 June 30 1914 309.875 8.60 1,231.968 24.24 Sept.30 1914 309.457 8.59 1.193.064 23.47 Dec. 31 1914 308.005 8.55 1.130.209 22.23 Mar.31 1915 303.070 8.41 957.587 18.84 June 30 1915 8.28 297.691 826.833 16.27 Sept.30 1915 274,588 7.62 696.631 13.70 Dec. 31 1915 262,091 7.27 634,469 12.48 Mar.31 1916 236.361 6.58 625,254 12.30 June 30 1916 171.096 4.75 537.809 10.58 Sept.30 1916 156.412 4.34 502.632 9.89 Dec. 31 1916 151,757 4.21 494.338 9.72 Mar. 31 1917 3.94 142.226 481,342 9.45 June 30 1917 140.039 3.59 477,109 9.39 Sept.30 1917 140.077 3.88 484,190 9.52 Dec. 31 1917 140.198 3.90 485,705 9.56 Mar.31 1918 149.032 4.13 491.464 9.66 June 30 1918 147.845 4.10 495,009 9.73 Sept.30 1918 148,223 4.11 491.580 9.63 Dec. 31 1918 146.478 4.07 493.552 9.71 June 30 1919 149.832 4.16 465,434 9.15 Mar.31 1919 143.804 3.99 394.543 7.76 Sept.30 1919 138.566 3.84 368.895 7.26 Dec. 31 1919 127.562 3.54 348.036 6.84 Mar.31 1920 124.346 3.46 342.567 6.74 June 30 1920 118.212 3.28 323.438 6.36 Sept.30 1920 111.436 3.09 292,835 5.76 Dee 31 1920 2.96 106.781 289,444 5.69 Mar.31 1921 105.118 2.91 288.749 5.68 June 30 1921 103.447 2.87 285,070 5.60 Sept.30 1921 128.818 3.58 280,026 5.50 Dec. 31 1921 128.127 3.55 280,132 5.51 Mar.31 1922 123,844 3.43 275.096 5.41 June 30 1922 123,710 3.43 270.794 5.32 Sept.30 1922 121,308 3.36 261.768 5.15 Dec. 30 1922 119.738 3.32 239,310 4.70 Mar. 29 1923 117.631 3.27 207.041 4.07 June 30 1923 118.435 3.29 210.799 4.14 Sept.30 1923 113.155 3.10 203.109 3.99 Dec. 31 1923 3.14 112.521 201,636 3.96 Mar.31 1924 112.191 3.12 203.059 3.99 June 30 1924 111.557 3.01 201.691 3.97 Sept.30 1924 111.759 '3.19 198.010 3.89 Dec. 31 1924 111.463 3.10 195.689 3.85 Mar. 31 1925 3.10 111,800 127.335 3.50 June 30 1925 3.12 112,679 127.078 2.50 Sept.30 1925 113.843 3.16 119.414 2.35 Dec. 31 1925 112,844 3.13 122.098 2.40 Mar. 31 1926 3.10 111.908 129.020 2.53 June 30 1926 112.822 3.12 123,557 2.43 Sept.30 1926 112.562 3.14 123,090 2.52 Dec. 31 1926 113,478 3.15 120,348 2.37 Mar. 31 1927 113,432 3.15 168,018 2.36 June 30 1927 112,835 3.14 173.122 2.43 Sept.30 1927 111.262 3.08 177,452 2.49 Dec. 31 1927 3.12 112,385 187.006 2.62 mar. 31 1928 3.06 110.023 180,829 2.54 June 30 1928 3.03 109,626 175,039 2.46 Sept.30 1928 101.942 2.83 166,415 2.34 Dec. 31 1928 2.82 101,627 173.920 2.44 Mar.31 1929 96.362 2.68 183.396 2.28 July 31 1929 94.724 2.64 176.485 2.18 Sept.30 1929 94.524 2.63 182.150 2.24 Dec. 31 1929 94,399 2.62 171.947 2.00 Mar. 31 1930 95.213 2.64 1.99 June 30 1930 170,803 2.61 93.737 173,824 2.00 Sept.30 1930 93.259 2.60 182.072 2.09 Dec. 31 1930 2.62 94.617 182,804 2.10 Mar. 31 1931 2.55 91,991 190,868 2.19 June 30 1931 2.48 89.301 196.416 2.26 Sept.30 1931 80.792 2.24 199,985 2.29 Dec. 31 1931 2.22 79.941 215.908 2.48 Mar. 31 1932 77,799 2.16 222,073 2.56 June 30 1932 79.938 2.22 251.896 2.89 Sept.30 1932 78,350 2.18 273,038 3.14 Dec. 31 1932 78,970 2.19 284,418 3.27 Mar.31 1933 73.397 2.04 280,898 3.23 June 30 1933 71,885 2.00 280,589 3.22 Sept.30 1933 COMMON. Da Mar.31 1914 June 30 1914 Sept.30 1914 Dec. 31 1914 Mar.31 1915 June 30 1915 Sept.30 1915 Dec. 31 1915 Mar.31 1916 June 30 1916 Sept.30 1916 Dec. 31 1916 Mar.31 1917 June 30 1917 Sept.30 1917 Dec. 31 1917 Mar.31 1918 June 30 1918 Sept.30 1918 Dec. 31 1918 Mar.31 1919 June 30 1919 Sept.30 1919 Dec. 31 1919 Mar. 31 1920 June 30 1920 Sept.30 1920 Dec. 31 1920 Mar.31 1921 June 30 1921 Sept.30 1921 Dec. 31 1921 Mar.31 1922 June 30 1922 Sept.30 1922 Dec. 30 1922 Mar.29 1923 June 30 1923 Sept.30 1923 Dec. 31 1923 Mar.31 1924 June 30 1924 Sept.30 1924 Dec. 31 1924 Mar.31 1925 June 30 1925 Sept.30 1925 Dec. 31 1925 Mar.31 1926 June 30 1926 Sept.30 1926 Dec. 31 1926 Mar.31 1927 June 30 1927 Sept.30 1927 Dec. 31 1927 Mar.31 1928 June 30 1928 Sept.30 1928 Dec. 31 1928 Mar.31 1929 July 31 1029 Sept.30 1929 Dec. 31 1929 Mar.31 1930 June 30 1930 Sept.30 1930 Dec. 31 1930 Mar.31 1931 June 30 1931 Sept.30 1931 Dec. 31 1931 Mar. 31 1932 June 30 1932 Sept.30 1932 Dec. 31 1932 Mar.31 1933 June 30 1933 Sept.30 1933 39 The tinplate industry during the 12 months ended Oct.31 1933 consumed 48,100 tons, an increase of 11,500 tons, or 31% compared with the preceding 12 months. Consumption by the tinplate industry in the United States increased 53%. in Germany 51% and in France 41%, while the industry in the United Kingdom remained at about the same level. Quiet Week in Non-Ferrous Metals-Lead and Zinc Quotations Decline. "Metal and Mineral Markets" for Jan. 4 reports that trading in major non-ferrous metals would be of small proportions during the last week,and was more orless anticipated. Most consumers were concerned with keeping inventories down over the turn of the year. The fact that Congress had reconvened also added a little to the reserve of buyers. On any signs of an increase in general business activity the metal situation is expected to take on a healthier complexion. Copper was quotably unchanged, with the market deeply concerned about the code deliberations. Lead was reduced in price during the week, largely because of an adverse trend in the statistics for the industry. Zinc sold at slightly lower levels for much the same reason. Tin showed little net change. The advance in silver in the open market was checked by freer offerings from abroad. The weighted index number of non-ferrous metal prices for December was 67.84, against 68.10 in November. The yearly index was 59.79, against 48.26 for 1932, and 60.20 in 1931. The same publication says: Copper Inactive. Demand for copper last week was at a low level-at an absolute minimum level, so far as business of an open-market character was concerned. Lack of consumer interest in the metal was attributed largely to the proposed code provision, mentioned last week, that virtually impounds 75% of the stocks of copper held by consumers until such time as demand exceeds current output. Code discussions, it is understood, continue among the representatives of the principal interests concerned and the members of the code committee, but as yet no date has been announced for a hearing. Prognostications as to when the code will be heard range from about a week to several months hence, with the implication in several directions that the current unsettled status of the whole affair may be indefinitely prolonged. Price of the metal throughout the entire week was nominally nic., at which level both producers and custom smelters were holding pending inquiries. A firm tone abroad was the outstanding feature of last week's copper market. Buying in Europe continued at a fair rate, with prices undergoing practically no change. During the seven-day period prices ranged from 8.20c. to 8.35c., c.i.f. Canada produced 150,489 short tons of copper during 1933, according to a preliminary estimate of the Dominion Bureau of Statistics. This compares with 123,800 tons in 1932. 145,632 tons in 1931, and the high of 151,833 tons in 1930. Lead at 4c., New York. The price situation in lead underwent no change until Jan. 2, when the metal became available at 4c., New York, the new contract settling basis of the American Smelting & Refining Co., and 3.90c., St. Louis. The revised quotations show a reduction of 15 points. Buying interest was very low, even after the decline. In most quarters of the market the reduction in the price was taken to signify that some sellers were concerned about the inability of producers to establish a fair balance between current shipments and production. It now looks as if stocks of refined In the following table we also show the number of shares lead will show a larger gain for December than was thought possible a and brokers between of the Steel Corporation distributed as short time ago. Just what influence on the lead market the recent step taken by President investors as on Sept. 30 1933 and Sept. 30 1932: Roosevelt on silver would exert was a matter open to rather broad interSept. 30 '33. Ratio. Sept. 30 '32. Ratio. Commonpretation. Consumers felt that it may be more difficult to control pro1,241.577 14.27% Brokers, domestic and foreign... _ _ 1,623,951 18.66% duction of lead under the circumstances. Producers, on the other hand. 7.461,675 85.73% Investors, domestic and foreign_ 7,079,301 81.34% believe that so much is to be gained by an orderly lead market that byPreferredproduct silver will not be permitted to play a dominant role. 309,581 8.59% Brokers, domestic and foreign_ _ __ 346,624 9.62% 3,293,230 91.41% Investors, domestic and foreign... 3,256,187 90.38% Lead sold by first hands for December shipment to consumers amounted to 23,000 tons. against 32.000 tons in November. January shipment The following is of interest as it shows the holdings of lead sold to date amounted to about 17,700 tons. brokers and investors in New York State: Lead producers will meet in Washington to-day to confer on the code. Sept. 30 '33. Ratio. Sept. 30 '32. Ratio. CommonZinc Settles at 4.30c. 1,163,333 13.37% 1,530,089 17.58% Brokers 1,809,243 20.79% 1,574,384 18.10% Zinc was available in several directions yesterday at 4.30c.. St. Louis. Investors Weakness in the price structure of the metal developed on Tuesday, when Preferred244,540 7.89% 321,392 8.92% a round lot sold at this lower level. On the same day, however, several Brokers 1.444.925 40.10% 1,382,135 38.36% Investors other lots of fair tonnage sold on the basis of both 4.325c. and 4.35c.. making the quotation for the day 4.30c.®4.35c. Early in the week the market was somewhat stronger, as indicated by the quotations covering seven-day period. Resumption of operations in the Increase of Over 30% Reported in World Tin Consump- that part of the during the current calendar week will, according to Tri-State district of Months 1933 Interby 10 First tion During estimates, result in concentrate output there increasing to about 7.000 Development and Council Research national Tin tons-a factor contributing additional uncertainty to the immediate 89% of Gain Contributed by United States. outlook for zinc. Tin Statistics Good. Estimated world tin consumption for the first 10 months December tin statistics were favorable, but consumers, judging by of 1933 amounted to 108,655 tons, compared with 83,080 theThe volume of business placed, evidently believe that present values are tons for the corresponding period of 1932, an increase of high enough. The price showed little net change for the week, with 30.8%, according to figures released Jan. 2 by The Hague sterling exchange still the important factor in the market. world's visible supply of tin at the end of the year was estimated statistical office of the International Tin Research and atThe 23.812 long tons, against 26,075 tons at the end of November, and Development Council. An announcement issued in the 45.796 tons a year ago. United States deliveries for December came to 3,130 tons, against 3,350 tons in November. World deliveries totaled matter likewise said: 7,025 tons in December, against 8,163 tons in the month previous. The United States used 52,251 tons during the 10 months period, comChinese 99% tin, prompt shipment, was quoted as follows: Dec. 28. pared with 29,397 tons for the first 10 months of 1932. thus accounting 51c.; Dec. 29. 51.10c.: Dec. 30, 51.50c.; Jan. I. holiday: Jan. 2, 51.70c.: for 89.6% of the increase in world consumption. The apparent United 3, 51.50c. Jan. States consumption continued to rise in October, that month's total of 6.168 tons representing an increase of 11.1% over September. Steel Operations Fall Off During First Week of New World consumption in October, however, dropped off slightly, being estimated at 11,500 tons against 11,924 tons in September. The October Year-Steel Scrap Prices Continue to Advance. consumption was 3,678 tons greater than for October 1932. Lower consteel production has declined to 31% from 37% a Raw sumption in France and Germany contributed to the decline. week ago, states the "Iron Age" of Jan. 4. Increases are Figures for the 11 months were reported by the United Kingdom,showing 18,299 tons consumed against 17,123 tons for the corresponding period reported from only two producing centers, Cleveland and of 1932, an increase of 6.9%. November consumption amounted to 1,963 Detroit, the former's rate having risen three points to 50% tons against 1,643 tons a year ago. 40 Financial Chronicle and the latter's seven points to 57%. Operations are off seven points to 21% at Pittsburgh, six points to 34% at Chicago, two points to 29% in eastern Pennsylvania, eight points to 30% in the Valleys, two points to 41% at Buffalo and 15 points to 35% in the Wheeling area. Production in the Birmingham district is unchanged at 50% of capacity. The downward trend is reflected also by the report of the American Iron & Steel Institute, which places operating schedules at 29.3% for this week as compared with 31.6% for the previous week and 28.3% a month ago. Pig iron production in 1933, according to final figures compiled by the "Iron Age,"showed a gain of 52% over 1932, as compared with an estimated increase of 71% in steel ingot output. The pig iron total for the year was 13,208,190 tons, compared with 8,686,443 tons for 1932. December output was 1,177,484 tons against 1,085,239 tons in November. The daily rate, at 37,983 tons, showed a gain of 5% over the November average of 36,174 tons. In discussing steel operations, the "Iron Age" had the following to say: The decline in steel production is the aftermath of the heavy anticipatory specifications that were driven in during December. The greatest pressure for shipments last month was felt by wire mills, tin plate plants and bar mills. Two or three tin plate producers failed to complete shipments against contracts and have asked for extra days of grace on the grounds that their operations were delayed by unforeseen circumstances. Whatever the decision on these applications may be, the inflexibility of present contract stipulations has become a live issue. Those favoring a change argue that operating efficiency suffers when mills are forced to handle a large volume of last-minute orders. Others contend that a relaxation of rules to permit shipments to overlap into the first month of the succeeding quarter would merely postpone the contract deadline without necessarily relieving operating difficulties. The recession in specifications has been especially marked in tin plate. Some tin mills are idle and the operations of others range from 25% to a maximum of 60%. Although consumers have doubtless built up their stocks, ultimate consumption is showing further gains, since the mobilization of unemployed at CWA camps and CCC cantonments is creating an unusually heavy demand for canned goods. Another favorable influence is a further expansion of export inquiries. Railroad buying is still slow in materializing. The Erie is expected to issue an inquiry for 30.000 tons of rails some time this month, adding to the sizable pending tonnage already before the trade. Railroads, however, have until March 31 to place orders for rails and fastenings as present prices. and until June 30 to accept deliveries. Since Federal loans to carriers are interest-free for one year, borrowing roads will find it to their advantage to defer the beginning of the free period as long as possible. The leeway enjoyed by railroads in connection with rails is duplicated in the case of material for rolling stock. which Is now treated as steel for identified structures, on which producers may quote for the life of the projects. The Pennsylvania is expected to place 35,000 to 40,000 tons of plates for 7,000 cars within the next two or three weeks. The Navy Department has ordered 9,494 tons of plates, shapes and bars for the cruisers Brooklyn and Philadelphia and the gunboats Erie and Charleston. New York Shipbuilding Co. is low bidder on two tankers for the Standard-Socony Transportation Co., which will require 6,700 tons of bars, plates and shapes. The automobile outlook is still clouded by difficulties in gearing up production for new models. Output last week receded rather than increased, and the December total may not exceed 70,000 cars. Ford's schedule, undisturbed by delays, remains at 50,000 units for January and 75,000 for February. but the operating troubles of other builders are likely to limit total January output for the industry to 150,000 units. Awards of fabricated steel, at 9,350 tons, compare with 11,825 tons last week and 17.500 tons two weeks ago. New projects of 11,500 tons include 2,400 tons for a spillway bridge at Norco. La., and 2,000 tons for the Midtown tunnel, New York. Scrap, although not so buoyant as recently, has advanced at Chicago and Philadelphia raising the "Iron Age" composite from $11.08 to $11.33 a ton. The finished steel and pig iron composites are unchanged at 2.028c. a lb. and $16.90 a ton. THE "IRON AGE" COMPOSITE PRICES. Finished Steel. (Based on steel bars, beams, tank plates Jan. 2 1934. 2.0280. a Lb. 2 0280.1 wire, rails, black pipe and sheets. One week ago 2.0280.1 These products make 85% of the One month ago 1.9480. United States output. One year ago Low. High 1.8670. Apr. 18 2 036c. Oct. 3 1933 1.9260. Feb. 2 1.9770. Oct. 4 1932 1.9450. Dec. 29 2.0370. Jan. 13 1931 2.0180. Dec. 9 2.273o. Jan. 7 1930 2.2730. Oct. 29 2.3170. Apr. 2 1929 2.2170. July 17 2.286c. Dec. 11 1928 2.2120. Nov. 1 2,402e. Jan. 4 1927 Pig Iron, Based on average of beide iron at Valley Jan. 2 1934, $18.90 a Gross Ton. One week ago $16.90 furnace foundry irons at Chicago. 18.90 Philadelphia, Buffalo. Valley. and BlrOne month ago 13.56 mlngham. One year ago Low. High. $13.56 Jan. 3 $18.90 Deo. 5 1933 13.56 Deo. 6 14.81 Jan. 5 1932 14.79 Deo. 15 15.90 Jan. 6 1931 15.90 Dec. 16 18.21 Jan. 7 1930 18.21 Dec. 17 18.71 May 14 1929 17.04 July 24 18.59 Nov. 27 1928 17.54 Nov. 1 19.71 Jan. 4 1927 Mal Scrap. Based on No. 1 heavy melting steel Jan. 2 1934. $11.33 a Gross Ton. $11.08 quotations at Pittsburgh, Philadelphia. One week ago 10.00 and Chicago. One month ago One year ago 8.75 Low. High. $6.75 Jan. 3 $12.25 Aug. 8 1933 6.42 July 5 8.50 Jan. 12 1932 8.50 Deo. 29 11.33 Jan. 6 1931 11.25 Dee. 6 15.00 Feb. 18 1930 14.08 Deo. 3 17.58 Jan. 29 1929 13.08 July 2 16.50 Dec. 31 1928 13.08 Nov.22 15.25 Jan. 11 1927 In reviewing conditions in the iron and steel industry, "Steel" of Cleveland stated on Jan. 1: Jan. 6 1934 Barring suspensions for the 3-day holiday periods at Christmas and New Year. the general average of steelworks operations on working days last week showed little change from 38%. Shipments reached a peak rarely exceeded in a year's final week, even in the most prosperous times. Severe weather conditions throughout the greater portion of the country, and car shortages in many districts, complicated deliveries. But mills were forced to default on comparatively few specifications they accepted for shipment by Dec. 31. Early January will show a paucity of specifications from those lines which recently have supplied the largest tonnage, due to price advances effective Jan. 1. Manufacturing for stock is expected to make up considerable of the deficiency. In some finished products, unaffected by code regulations. notably nuts and bolts, shipments this month will be heavier than those in December. During the late December rush for material, automative speficiations were slow in coming out. December automobile production was lower than anticipated, thus throwing a considerable portion of the industry's steel requirements into January. Much of the pent-up requirements for railroads and public construction work also is expected to mature early in this quarter. While the rigid deadline on steel shipments has proved satisfactory insofar as merchandising is concerned, it is believed to be uneconomical from an operating standpoint, and several proposals already arc before the industry to alleviate this situation. The first of these is to permit 20 to 30% of the tonnage which ordinarily would fall due in the last month of a quarter to be shipped in the first month of the succeeding period. The second is to abolish quarterly contracts. and to substitute semi-annual commitments. The third, previously mentioned, is to name quarterly prices two or two and a half months ahead of the quarter to which they would apply. Public Works Administration loans aggregating 827,534,000 to six carriers approved last week, mean the financing wholly or in part of 110,000 tons of rails and commensurate fastenings, and repair work, as follows: Southern Pacific, 45,000 tons of rails and 13,000 tons of fastenings; Baltimore & Ohio, 50.000 tons of rails; Wabash, 10,000 tons of rails, and repair work; Kansas. Oklahoma & Gulf, 5,200 tons of rails and a tonnage of fastenings. Illinois Central receives $9,300,000 of the total to repair freight and passenger cars, to lay rails and rebuild two Ohio River viaducts; and Interstate of Virginia, $250,000 for miscellaneous work. New York. New Haven & Hartford has applied for a PWA loan to buy 25.000 tons of rails and 10,000 tons of fastenings. Central of Georgia has placed 3.000 tons of rails and 200 coal cars; and Delaware, Lackawanna & Western, 3,000 tons of fastenings. Structural shape awards for the final week. 13,417 tons, were only 2,000 tons below the weekly average for the year. In the New York metropolitan district, 20.000 tons are up for early purchase. California has voted $170,000,000 for a central valley water project requiring 11,000 tons of structural material. Los Angeles awarded 3,000 tons of cast pipe. For aircondltioning equipment in Washington public buildings, $1,000,000 has been allotted, this requiring a large tonnage of sheets. Connecticut has purchased 50 miles of heavy wire rope for railings. Markets for raw materials continue strong. In pig iron, heavy shipments have depleted furnace stocks, which will tend to support furnace operations in January. In scrap, prices still are rising, on more active demand. Contracting for ferroalloys is brisk, and sellers are protecting themselves against variations in the value of the dollar, and excise and special taxes. Holiday influences also are weighing more lightly than usual on the European iron and steel industry, and the outlook for early 1934 is brighter. according to "Steel's" cablegram from London. With adjustments made so far as possible for holiday suspensions, steelworks operations last week were down 2 points to 36%. Youngstown was off 1 point to 38. Cleveland 5 to 52, Pittsburgh 2 to 27. Wheeling 10 to 41. eastern Pennsylvania 1% to 24%, and Buffalo 1 to 37. Detroit was unchanged at 52, New England 72, Chicago 40, and Birmingham 52. "Steel's" iron and steel composite remains $32.42. the finished steel composite, $51.10; while the scrap index is up 20 cents to $10.70. Steel ingot production for the we ended Jan. 1 is placed at about 30% of capacity, according to the "Wall Street Journal" of Jan. 3, which further adds: This compares with 33% in the two preceding weeks. U. S. Steel Corp. is estimated at 28%, against 30% in the two previous weeks, while independents are credited with a rate of 31%, compared with 35% in the two preceding weeks. The current rate has been exceeded only once in the past four years at this season. In 1931 it was estimated at around 35% to 36%. Last year the rate was about 13% and in 1932 it was 22%. In 1930 the rate was placed at 30%. Preliminary Results of Fifth Annual Study of Unemployment in Buffalo (N. Y.) Indicates Conditions Improving. Preliminary results of the fifth annual study of unemployment in selected areas of Buffalo, N. Y., were announced Dec. 10 by Industrial Commissioner Elmer F. Andrews of New York State. These data indicate that in November 1933 282 workers per thousand were unemployed as compared with 312 per thousand in 1932. Since studies of a like nature for the same areas have been made each November beginning with 1929, comparable data are now available . for the past five years. This work is sponsored by the Buffalo Foundation in co-operation with the State Department of Labor. Students of the State Teachers' College at Buffalo and the University of Buffalo made about 10,000 house-to-house visits to enumerate the unemployed. The survey shows that in November 1933 of the 15,729 usually employed persons able and willing to work, 9,157, or 58.2%, were employed full time; 4,428, or 28.2%, were unemployed, and 2,144, or 13.6%, were employed part time. Summarizing the data for men and women able and willing to work in 1933 shows that,62.7% of men, 16.8% of women, were employed full time; 12.2% of men, 27.0% of women, were employed part time; 25.1% of men, 56.2% of women, were unable to find work. The percentage of men fully employed and on part time is approximately 75% of all males able and willing to work in contrast with only 44% of the women. Comparing the results of the five studies of November unemployment, it was found that among persons who were able and willing to work those who could not find employment constituted6.2% of men. 3.5% of women. in 1929; 17.2% 24.3% 32.6% 25.1% of of of of of of of of men. 14.6% men, 21.1% men, 25.4% men. 56.2% women, in women, in women, in women, in 1930; 1931: 1932: 1933. The employment status of men shows a considerable improvement over 1932, but among women unemployment has risen from 25.4% in 1932 to 56.2% in 1933. Of men and women able and willing to work those who were employed part time in November were7.1% 18.6% 23.2% 23.4% 12.2% 41 Financial Chronicle Volume 138 of of of of of men, 5.4% men, 12.2% men, 16.3% men, 19.0% men, 27.0% of of of of of women. in women, in women, in women, in women, in 1929: 1930: 1931; 1932; 1933. The proportion of men on part time employment is only about half that of 1932, but among women part time employment increased from 19% in 1932 to 27% in 1933, the survey said, adding: Although the percentage of unemployment among men able and willing to work has fallen 7.5% since November 1932, the proportion of idle men who have been unemployed more than 52 weeks is higher, being 68% in 1933 and 60% in 1932. About four-fifths of this group have been unemployed more than two years. It appears that the men who are being put back to work are from those groups who had been unemployed less than 52 weeks. Unemployment had lasted less than 10 weeks for 18% of the men, more than 10 but less than 52 weeks for 13.8% and 52 weeks and over for 68.2%. In issuing the survey, Commissioner Andrews also issued the following statistics: EMPLOYMENT STATUS OF ALL PERSONS ABLE AND WILLING TO WORK, BY SEX, 1933. Bituminous Coal and Anthracite Production Continued Below Last Year's Totals During the Week Ended Dec. 23 1933-Soft Coal Output Declined in Latter Period, While Anthracite Production Showed a Gain of 21.8% Over the Preceding Week. According to the United States Bureau of Mines, Department of Commerce, production of soft coal during the week ended Dec. 23 1933 was estimated at 7,180,000 net tons, compared with 7,360,000 tons in the preceding week and 7,667,000 tons in the corresponding period in 1932. Anthracite output totaled 1,319,000 tons as against 1,083,000 tons in the week ended Dec. 16 1933 and 1,452,000 tons in the week ended Dec. 24 1932. During the calendar year to Dec. 23 1933 there were produced 321,497,000 net tons of bituminous coal and 48,449,000 tons of anthracite, compared with 297,879,000 tons of bituminous coal and 48,064,000 tons of anthracite during the calendar year to Dec. 24 1932. The Bureau's statement follows: ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE COKE (NET TONS). Calendar Year to Date. Week Ended. Dec. 23 1933.c Dec. 16 1933.d Dec. 24 1932. 1933. 1932.e 1929.e Bitum Coale Weekly total_ _ 7,180,000 7,360,000 7,667,000 321,497.000 297,879,000 524.775,000 991,000 1,741,000 Daily average_ 1,197,000 1,227,000 1,278,000 1,068,000 Pa. Anth.b Weekly total__ 1,319,000 1,083,000 1,452,000 48,449,000 48.064,000 72,236,000 242,800 161,600 Daily average. 219,800 180,500 242,000 1,629,000 Beehive Coke 748,200 6,384,700 809,600 19.600 21,100 21,300 Weekly total_ _ 20,933 2,654 2,453 3,267 3,51 3.550 Daily average. a Includes lignite, coal made Into coke, local sales and colliery fuel. b Includes Sullivan County, washery and dredge coal, local sales and colliery fue . c Subject to revLsion. d Revised. e Slight adjustment made in production figure for first week in January to make accumulation comparable with 1933. ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS)a Per Cent. Number. Week Ended. Males. Females. Both Sexes. 8,899 1,729 258 415 9,157 2,144 503 692 319 212 3 87 163 69 94 2 590 855 388 306 5 Employment Status. Employed, full time Employed, part time Two-thirds but less than full time One-half butlessthan two-thirds One-third but less than one-half Less than one-third Fraction not reported Unemployed, able and willing to work Total FeMales. males. Both Sexes. 62.7 12.2 16.8 27.0 58.2 13.6 3.5 4.9 2.3 1.5 (a) 5.7 10.6 4.5 6.1 0.1 3.8 5.4 2.5 1.9 (a) 3,564 864 4,428 25.1 56.2 28.2 14,192 1,537 15,729 100.0 100.0 100.0 (a) Less than 0.1 of 1%. DURATION OF UNEMPLOYMENT OF ALL MALES ABLE AND WILLING TO WORK BUT UNABLE TO FIND JOBS, 1929-1933. Per Cent. Number. Duration of Unemployment 1932. 1933. 1932. 1931. 1930. 1929. 55 95 104 185 245 359 305 204 419 156 230 81 199 52 *2,432 *2.343 2.7 5.2 10.1 5.7 4.4 2.3 1.4 68.2 1.4 2.7 6.3 7.8 10.7 5.9 5.1 60.1 2.6 5.0 12.7 13.4 11.7 6.4 5.2 43.0 4.3 7.9 21.0 17.9 14.3 7.9 5.6 21.1 15.8 22.2 30.4 12.3 6.2 3.1 0.7 9.3 3.900 100.0 100.0 100.0 100.0 100.0 1933. Under 2 weeks 2 and under Vweeks 4 and under 10 weeks 10 and under 20 weeks 20 and under 30 weeks 30 and under 40 weeks 40 and under 52,weeks__ 52,weeks andgover Total 3,564 State. Dec. 9 1933. Dec. 17 1932. Dec: 10 1932. Dec. 19 1931. December 1923 Average.a 349,000 180,000 180,000 168,000 166,000 205,000 Alabama 83,000 77,000 66,000 88,000 45.000 52,000 Ark. and Okla 253,000 135,000 130,000 235,000 161,000 188,000 Colorado 970,000 839,000 1,104,000 999,000 953,000 1,535,000 Illinois 514,000 355.000 314,000 353,000 279,000 317.000 Indiana 121,000 77,000 79,000 92,000 67.000 73,000 Iowa 159,000 Kansas and Missouri 115,000 103,000 186,000 155,000 145,000 584.000 520.000 429.000 646,000 513,000 485,000 Ky.-Eastern 204.000 180,000 162,000 276.000 223,000 205,000 Western 37,000 49,000 35,000 33,000 34,000 36,000 Maryland 21.000 8,000 12,000 11,000 9,000 12,000 Michigan 64,000 72,000 60,000 71,000 54,000 55,000 Montana 56,000 36,000 25,000 36,000 29,000 29.000 New Mexico 27,000 45,000 54,000 61,000 52.000 58,000 North Dakota 599.000 450,000 382.000 446.000 359,000 377,000 Ohio Pennsylvania (bit.). 1,786,000 1,734,000 1,623,000 1,575.000 1,608,000 2,818,000 103,000 75,000 75,000 81,000 54,000 63.000 Tennessee 21.000 12,000 13,000 15,000 16,000 16,000 Texas 100,000 87.000 125,000 81,000 137,000 68,000 Utah 193,000 173,000 171,000 198,000 143,000 166,000 Virginia 57,000 51,000 42,000 46,000 31,000 32,000 Washington West Va.-Southern b 1,370,0001,140.000 1,483,000 1,270,000 1,288,000 1,132,000 692,000 442.000 311,000 334,000 502,000 512,000 Northern_c 173,000 93,000 110,600 102,000 100,0(.0 108,000 Wyoming 5,000 7,000 5,000 7.000 10,000 25,000 Other States Total bit. coal Pa.anthracite Total coal *Includee 1,425 persons in 1932 and 1,929 persons in 1933 who were Unemployed 104 weeks and over. Dec. 16 1933. 7,360,000 6,640,000 7,838,1.00 6,828,000 7,130,000 9,900,000 1 083,000 880,000 1,237,000 936,000 894,000 1.806.000 8,443,000 7.520,000 9,075,000 7,764,000 8,024,000 11,706,000 a Figures for 1923 and 1931 only are final. b Includes operations on the N.& W.; C.& O.; Virginian: K.& M.,and B.C.& G. c Rest of State, including Panhandle. d Average weekly rate for the entire month. Current Events and Discussions The Week with the Federal Reserve Banks. The daily average volume of Federal Reserve Bank credit outstanding during the week ended Jan. 3, as reported by the Federal Reserve banks, was $2,686,000,000, a decrease of $12,000,000 compared with the preceding week and an increase of $534,000,000 compared with the corresponding week in 1933. After noting these facts, the Federal Reserve Board proceeds as follows: On Jan. 3 total Reserve Bank credit amounted to $2,688,000,000, an Increase of $14,000,000 for the week. This increase corresponds with increases of $35,000,000 in member bank-reserve balances and $16,000,000 in part by a in unexpended capital funds, non-member deposits, &c., offset of$4.000,000 decrease of$33,000,000 in money in circulation and an increase in Treasury currency, adjusted. Bills discountethdeclined $3,000,000 at the Federal Reserve Bank of all Federal Reserve Boston, $2,000,000 at New York and $5,000.000 at banks. The System's holdings of bills bought in open market increased States GovernUnited of classes various the of holdings $10.000,000. while ment securities were practically unchanged. Beginning with the statement of May 28 1930, the text accompanying the weekly condition statement of the Federal Reserve banks was changed to show the amount of Reserve Bank credit outstanding and certain other items not included in the condition statement, such as monetary gold stocks and money in circulation. The Federal Reserve Board's ex- planation of the changes, together with the definition of the different items, was published in the May 31 1930 issue of the "Chronicle," on page 3797. The statement in full for the week ended Jan. 3, in comparison with the preceding week and with the corresponding date last year, will be found on subsequent pages, namely, pages 115 and 116. Beginning with the statement of March 15 1933, new items were included as follows: 1. "Federal Reserve bank notes in actual circulation," representing the amount of such-notes Issued under the provisions of paragraph 6 of Sec. 18 of the Federal Reserve Act as amended by the Act of March 9 1933. 2. "Redemption fund-Federal Reserve bank notes," representing the amount deposited with the Treasurer of the United States for the redemption of such notes. 3. "Special deposits-member banks," and "Special deposits-nonmember banks," representing the amount of segregated deposits received from member and non-member banks. A now section has also been added to the statement to show the amount of Federal Reserve bank notes outstanding, held by Federal Reserve banks, and in actual circulation, and the amount of collateral pledged against outstanding Federal Reserve bank notes. Changes in the amount of Reserve Bank credit outstanding and in related items during the week and the year ended Jan. 3 1934, were as follows: 42 Financial Chronicle Increase (+) or Decrease (—) Since Jan. 3 1934. Dec. 27 1933. Jan. 4 1933. $ $ $ 106,000,000 —5,000,000 —145,000,000 121,000.000 +10,000.000 +88,000,000 2,432,000,000 +581.000,000 29,000.000 +9,000,000 Bills discounted Bills bought U. S. Government securities Other Reserve bank credit TOTAL RES'VE BANK CREDIT...2,688,000,000 +14.000.000 Monetary gold stock 4,323,000,000 Treasury currency adjusted 1,993,000,000 +4,000,000 +525.000,000 —201,000.000 +94,000,000 Money in circulation 5,791,000,000 —33,000,000 Member bank reserve balances 2,710,000,000 +35,000,000 Unexpended capital fends, non-member deposit. dic 502,000,000 +16,000.000 +121,000,000 +196,000,000 +100,000,000 Returns of Member Banks in New York City and Chicago—Brokers' Loans. Beginning with the returns for June 29 1927, the Federal Reserve Board also commenced to give out the figures of the member banks in New York City, as well as those in Chicago, on Thursday,simultaneously with the figures for the Reserve banks themselves, and for the same week, instead of waiting until the following Monday, before which time the statistics covering the entire body of reporting member banks in the different cities included cannot be got ready. Below is the statement for the New York City member banks and that for the Chicago member banks for the current week, as thus issued in advance of the full statement of the member banks, which latter will not be available until the coming Monday. The New York City statement, of course, also includes the brokers' loans of reporting member banks. The grand aggregate of brokers' loans the present week shows an increase of $36,000,000, the total of these loans on Jan. 3 1934 standing at $837,000,000, as compared with $331,000,000 on July 27 1932, the low record for all time since these loans have been first compiled in 1917. Loans "for own account" increased from $671,000,000 to $709,000,000, but loans "for account of out-oftown banks" decreased from $125,000,000 to $119,000,000, while loans "for account of others" increased from $5,000,000 to $9,000,000. CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL RESERVE CITIES. New York. Jan. 3 1934. Dec. 27 1933. Jan. 4 1933. $ 6,707,000,000 6,756,C00,000 7,037,000,000 Loans and investments—total 3,414,000,000 3,386,080,000 3,433,000,000 Loans—total 1 744,000,000 1,722,000,000 1,584,000,000 1 870,000,000 1,664.000,000 1,849,000,0 On securities All other 3,293, 00.000 3.370.000.000 3,604,000,000 Investments—total 2,187,000,000 2,253,000,000 2,502.000,000 1,106.000,000 1,117.000.000 1,102,000,000 U. S. Government securities Other securities Reserve with Federal Reserve Bank_ 821.000,000 42,000,000 Cash in vault 789,000,000 1,052,000,000 46,000,000 42,000,000 Net demand deposits Time deposits Government deposits 5,319.000,000 5,257,000,000 5,733,000,000 700,000,000 693,000,000 894.000,000 335,000,000 386,000,000 133,000,000 Due from banks Due to banks 83,000,000 75,000,000 98,000,000 1 178,000,000 1,125,000,000 1,542,000,000 Borrowings from Federal Reserve Bank_ Loans on secur. to brokers & dealers: 709,000,000 For own account 119,000,000 For account of out-of-town banks 9,000,000 For account of others 671,000.000 125,000,000 5,000.000 379,000,000 12,000,000 3,000,000 837,000.000 801,000,000 394,000,000 Total On demand On time Loans and Investments—total 577,000,000 546,000,000 236,000,000 260,000,000 255,000,000 158,000,000 Chicago. 1 210,000,000 1,223,000,000 1.094,000,000 Loans—total On securities All other Investments—total 584,000,000 595,000,000 641,000,000 286,000,000 298,000,000 308.000,000 287,000,000 360;100.000 281,000,000 628,000,000 828,000,000 453,000,000 377,000.000 249,000,000 381,000,000 247,000,000 255,000,000 198,000,000 Reserve with Federal Reserve Bank__ — 340,000,000 48,000,000 Cash in vault 368,000,000 45,000,000 305,000,000 20,000,000 1,078,000.000 1,081,000,000 337,000,000 347,000,000 43.000,000 36,000,000 925,000,000 326.000,000 15.000.000 194,000,000 269,000,000 245,000,000 298,000.000 U. S. Government securities Other securities Net demand deposits Time deposits Government deposits Due from banks Due to banks 194,000,000 278.000.000 Borrowings from Federal Reserve Bank_ Complete Returns of the Member Banks of the Federal Reserve System for the Preceding Week. The Federal Reserve Board resumed on May 15 the publication of its weekly condition statement of reporting member banks in leading cities, which had been discontinued after the report issued on March 6, giving the figures for March 1. The present statement covers banks in 90 leading cities instead of 101 leading cities as formerly, and shows Jam 6 1934 figures as of Wednesday, Dec. 27, with comparisons for Dec. 20 1933 and Dec. 28 1932. As is known, the publication of the returns for the New York and Chicago member banks was never interrupted. These are given out on Thursday, simultaneously with the figures for the Reserve banks themselves, and cover the same week,instead of being held until the following Monday, before which time the statistics covering the entire body of reporting member banks in 90 cities cannot be got ready. In the following will be found the comments of the Federal Reserve Board respecting the returns of the entire body of reporting member banks of the Federal Reserve System for the week ended with close of business on Dec. 27: The Federal Reserve Board's condition statement of weekly reporting member banks in 90 leading cities on Dec.27 shows increases for the week of $186,000,000 in net demand deposits, $29,000,000 in Investments and 117.000,000 in reserve balances with Federal Reserve banks, and decreases of $15,000,000 in time deposits and $62,000,000 In Government deposits. Loans on securities increased $52,000,000 at reporting member banks in the New York district and $28,000,000 at all reporting member banks. "All other" loans declined $85,000,000. decreases being reported by practically all districts. Holdings of United States Government securities declined $21,000,000 in the New York district, 17,000,000 in the Cleveland district and $21.000,000 at all reporting member banks, and increased 116.000.000 in the Chicago district. Holdings of other securities increased :337,000,000 in the Chicago district, $13,000,000 in the New York district and $50,000,000 at all reporting banks. Borrowings of weekly reporting member banks from Federal Reserve banks aggregated $24,000,000 on Dec. 27, practically unchanged from the week before. Licensed member banks formerly Included in the condition statement of member banks in 101 leading dans, but not now Included in the weekly statement, had total loans and Investments of$955,000,000 and net demand. time and Government deposits of $980,000.000 on Dec. 27. compared with $957,000,000 and $970,000,000, respectively, on Dec. 20. A summary of the principal assets and liabilities of the reporting member banks. In 90 leading cities, that are now included in the statement, together with changes for the week and the year ended Dec. 27 1933, follows: Increase (+) or Decrease (--) Since Dec. 27 1933. Dec. 20 1933. Dec. 28 1932. $ —28,000,000 —115,000,000 Loans and investments—total___ _16,666,000,000 Loans—total On securities All other 8,402,000.000 —57,000,000 —469,000,000 3,628,000,000 4,774,000.000 +28,000,000 —85,000,000 —161,000,000 —308,000,000 8,284.000,000 +29.000,000 +354,000,000 U. S. Government securities__ __ 5,267,000,000 Other securities 2,997,000,000 —21.000.000 +50,000,000 +351,000,000 +3,000.000 1,914,000,000 258.000,000 +17,000.000 —8,000,000 —32,000,000 +52,000,000 10,868,000,000 4,339.000,000 825,000.000 +186.000.000 —15,000,000 —62,000,000 —185,000,000 —283,000,000 +486,000,000 1.197.000.000 2,699,000,000 +18,000,000 +43,000,000 —401,000,000 —428,000,000 24,000,000 +1,000,000 —11,000,000 Investments—total Reserve with F. R. banks Cash in vault Net demand deposits Time deposits Government deposits Due from banks Due to banks Borrowings from F.R.banks Inflation Doubled Cost of Civil War to United States, According to American Economic Institute— Present Labor Policy Illogical. Inflation during the Civil War added a billion dollars to its cost, according to a statement by the American Economic Institute, New York City, which sees many factors in the present monetary policy of our Government parallel to those prevailing during the Civil War. The Institute says: In 1862 the Treasury Department went off the gold standard and forced the banks to suspend payments of specie. Paper money in circulation immediately depreciated and Congress, on Feb. 25 1862, authorized the issuuance of $150,000,000 of greenbacks. This depressed the dollar further, and in July 1862, and March 1863, additional issues of $150,000,000 of greenbacks were authorized by Congress. In 1864 the greenback dollar was worth 49c., and at one time was worth only 35c. Prices of commodities rose as the dollar sank in value. The Civil War cost 12,700,000,000, and since the Government made its purchases with prices doubled because of greenback inflation, many economists agree that the unwise monetary policy during the Civil War added a billion dollars to its cost. This loss is exclusive of the unfavorable effect of unstable money on business before specie payment on greenbacks was resumed In 1879. Wages were cut in half during the inflation of the Civil War—one of the best controlled inflationary periods of all history, says the Institute, which points out that lower wages under any plan of inflation are "as sure as death and taxes." The Institute further observes: In 1862 the United States went off the gold standard and issued a total of $450,000,000 greenbacks. This depreciated the currency and caused prices to rise enormously. Wages rose also, but failed to keep up with prices, with the result that although money wages in many cases were nearly doubled, their actual purchasing power was almost half of what it was before inflation. The true measure of wages under depreciated currency conditions is not how many dollars a man receives for his work, but what their exchange value is for bread, shoes or rent. The history of inflation as seen in the assignats of France, the greenbacks of the United States, and the paper marks of Germany shows unmistakably that the real wages of workers suffer seriously from depreciated currency. This truth, however, is hard to realize by the average person. Take a man 30 or 40 years of age, for example, who all his life has regarded a dollar as a dollar. If the picture is painted that under inflation he may receive two dollars where he received only one before, he cannot stretch his imagina• Volume 138 Financial Chronicle tion to believe that various factors will make his two dollars of less actual value than one dollar was before. According to the Institute, currency inflation must soon be resorted to by President Roosevelt or his labor program will collapse. The Institute points out that during the past few months the wages of millions of workers have been raised under the NRA, at a time of sub-normal industrial activity with red ink plentiful on the ledgers of business. Prices have outstripped purchasing power, with the result that industry will be unable to bear the load of wage increases. Calling attention to the statistics of the Department of Labor that during a single month, August, the wages of 1,145,600 workers had been increased 24.3%, the Institute says that the labor program of the NRA threatens to disrupt industrial economic balance. The Institute goes on to say: Disturbance of manufacturing costs at this critical time by adding 25% to labor's share cannot be accomplished without compensating factors. There has been no great increase in the purchasing power of the great mass of nonindustrial workers, so that higher prices, resulting from increased wages, have retarded instead of stimulated business activity. The farming population, constituting more than one-third of our nation, is much worse off because of the increased prices of manufactured commodities. But inflation will be a futile and disastrous attempt to bolster up a labor policy that has already been shown to be illogical in four short months. The preconceived premise of the Administration that industry is like the jug in Grimm's fairy tales that never runs dry, has been disproved. Industry has not the ability to„pay the new costs of labor, nor has the general public the purchasing power to meet the increased prices. There is a feeling that currency inflation has little relation to the NRA program. The very opposite is true. The labor policy of the Government would collapse under its own weight. Inflation is a frantic attempt to bolster up a topheavy system. British Marketing Board Set Up as Milk Monopoly— Government to Fix Price and Control All Production. United Press advices Nov. 15 from London to the New York "Herald Tribune" said: Despite its avowed antipathy to adopting a Rooseveltian policy of State control, the British Government has launched the greatest attempt at national planning in the country's history. In co-operation with the National Farmers' Union, the Government has set up a milk marketing board to take charge of this $267,000,000-a-year industry. More than 150,000 farmers are directly involved. The board is equipped with dictatorial power to regulate, with minor exceptions, all milk sales in Britain and Wales. It is henceforth illegal for producers to sell milk without the board's approval. The project already is operating and will come into full swing Jan. 1. The plan is voluntary in so far as it was first endorsed by the votes of 96.42% of registered farmers. But as a result of that poll, the marketing board will encompass within its operations every one who owns cows and sells milk at retail. Although the board even has authority to sell milk and manufacture and sell milk-products and to take over dairies, it probably will use existing channels of distribution. The main significance of the plan is seen in the fact that registered producers will sell their products to buyers under contracts to which the marketing boards will be a party, prescribing prices and conditions and, if need be, output. The boards incidentally try to make Britain more "milk-minded," since the British still drink less than two-fifths of a pint daily, compared with the full pint, or more of the United States citizen. French Treasury Opens Books for Subscriptions to Part of Authorized 10,000,000,000-Franc Loan— No Closing Figure Specified—Funds to Retire Short-Term Obligations. Books for the initial installment of a 10,000,000,000-franc loan were opened for public subscription by the French Treasury on Jan. 3. The total amount was left blank, and it was announced on Jan. 2 that subscriptions will not be closed until Finance Minister Bonnet decides either that the public has taken as much as it wants or that the Treasury has obtained what it needs. A Paris dispatch of Jan. 2 to the New York "Times" described the proposed issue as follows: Bonds will be issued for five, ten and 15 years at 5%. The five-year paper will be reimbursed at par, while the tens and 15's will carry a premium on the redemption date. The issue price will be below par, but the figure will not be announced until to-morrow. M. Bonnet said, however, the new loan would be issued at a rate that demonstrates the Treasury has improved its credit. It is, therefore, expected that the issue price will be higher than 970 francs for a 1,000-franc bond, which was the figure of the last loan, issued on Dec. 1, also at 5%. M. Bonnet, in his speech, which was broadcast throughout France, gave a glowing account of the improved financial situation as regards the budget, Treasury and franc since Parliament passed the Financial Recovery Bill of Premier Ohautempa. He condemned inflation and promised the Government would balance the budget and keep its credit high, thus reducing interest rates and easing the burden for business. He promised that the money being borrowed would be used to consolidate the floating debt, which is estimated at about 50,000,000,000 francs. While this loan will increase the long-term indebtedness, M. Bonnet said, it will permit a reduction of the short-term Treasury bonds by an equal amount. The success of this loan, which is taken for granted here, will place the Treasury out of danger indefinitely. Recently the impoverishment of the Treasury, combined with heavy demands for the redemption of short-term Treasury bonds, formed one of the weakest spots in the French financial structure and constituted a grave danger to the franc. That danger will be removed for the present. It is reported that the Treasury also contemplates issuing a loan on the London market. London is anxious to lend the French Treasury 43 money, and it is felt here a loan in pounds can be contracted without important exchange risks and at interest rates lowerjhan have to be paid here. Chautemps Ministry in Danger of Defeat as Result of Pawnshop Crash in France Involving It Is Said More Than $30,000,000. The Cabinet of Camille Chautemps of France was reported to be in danger of defeat yesterday (Jan. 5),following the collapse of the Credit Municipal, or city pawnshop, of Bayonne, woth losses to patrons and investors it is said, estimated at 500,000,000 francs, or more than $30,000,000 at current rates of exchange. The French Parliament will meet Jan. 11, and newspaper reports from Paris said that two Radical Socialist Deputies who are members of the majority on which the Cabinet relies for support are alleged to be involved in the fradulent failure of the organization. Italy to Float Loan of 4,000,000,000 Lire at 4%—Will Retire 5% Bonds. Associated Press advices from Rome, Italy, Jan. 3, said: Bankers and Government officials completed preparations here to-day for floating a Treasury loan of 4,000,000,000 lire [approximately $320,000,0001 to retire the long-term Treasury bonds due this year. The new bonds will carry 4% interest against 5% on the bonds to be retired, and will mature in nine years. They will be offered to the public next Wednesday by a consortium headed by the Bank of Italy. French Authorities Declare Franc Is Firmly Cemented to Metallic Standard—Even Partial Balancing of the Budget Will Halt Present Drain, They Declare. France has no intention and is under no necessity of abandoning the gold standard, said a wireless message Nov.28from Paris to the New York "Times," which added: Such a statement represents the composite opinion of half a dozen high financial authorities, official and private, who were consulted by the correspondent of the New York "Times" to-day. Their statements can be summarized as follows: "The Bank of France will go on paying out gold by the billions of franca without a question, and as long as anybody wants gold and can present the necessary francs to the paying teller. We will not be surprised or concerned if by about Feb. 1 the Bank has lost 20.000,000.000 francs. The Treasury, It is true, will be in a had situation, but it can borrow abroad at all times, even though it would have to pay a high rate of interest." Only Parliament Can Change Leto. "Furthermore, the Bank of France has no authority to do anything but what it is doing now, and only the passage of a law by both houses of Parliament, and signed by the President, formally forbidding the Bank to pay out gold could bring a change in this policy. "Prophets of the franc's imminent fall seem to forget that even a gold embargo is impossible without such a law, and Parliament at present is overwhelmingly opposed to any tinkering with the franc. Even the Socialists, who are urging some form of inflation, would not dare to take the onus of the franc's collapse. "No Government would stand for a single day which advocated the abandonment of the gold standard except, in a grave national emergency, which certainly has not arrived as yet. In such an emergency, measures could be taken within a day, but that contingency is a long way off. "All this is in the expectation that the worst may happen. But suppose we took the other side. Suppose either the present or the next Government balances the budget, even to the extent of two-thirds of the deficit. The technical position of the franc is such that it would completely reverse the present trenda. Then the Gold Would Return. "The pound would drop against the franc and the British Exchange Equalization fund would stop buying francs for conversion into gold; Capital would not be sent out of the country, but would actually return in the form of gold. International speculation is long on pounds and short on francs, which would mean sales of pounds and purchases of francs when the speculators covered. Also it is worthy of notice that no futures operations are permitted in francs, and hence nothing dire is hanging over the Bank of France's head. "When foreigners start predicting the franc's fall, as Wall Street, for Instance, has been doing at least once a week since April, let them take these things into consideration. We all admit that if government after government falls and the budget cannot be balanced,it will cause the downfall of the franc, but we do not expect that; and meanwhile nothing can force France off gold." These authorities incidentally took the occasion to deny certain other rumors. It was stated that there is no question, for the present, of borrowing money in London, as has been reported in England. The Treasury soon will need money, and it is understood that London is being sounded out for terms, but the Treasury is in no hurry. The Bank of Prance, it was further declared, is not negotiating or even discussing any possibility of co-operation involving the franc either with the pound or with the dollar and the pound together. Talk that the British are "supporting the franc" causes wry smiles here, since the huge operations of the equalization fund entail a steady outflow of gold. It is understood that the fund exchanges the francs it buys almost immediately for gold. Quick Shifts in Exchange Market. These rumors, hopes and fears combined to give the exchange market a tumultuous day. The dollar first continued to demonstrate strength, closing officially at 16.67 francs against 16.32 francs yesterday. This advance, however, was based on strong reports of a possibility of stabilization emanating from America in connection with the previously unchanged Reconstruction Finance Corporation gold bid. When the news of the increase by the RFC of its gold buying price to $33.85 reached here, however, the dollar broke sharply in bank-to-bank trading, touching 16.04 francs before rallying slightly. The French took the change in the RFC gold bid as evidence that the stabilization reports were false. In bank-to-bank dealings after the Bourse closed, the dollar declined to 16.28 francs, and sterling fell to 84. 44 Financial Chronicle The pound fluctuated wildly under the British Equalization Fund's determined efforts to hold it down. The Fund intervened at the opening of the market this morning, pushing the pound down 50 centimes to 84 francs, but sterling then rose to 84.65, whereupon another onslaught by the Fund brought the official closing to 84.175 francs. Washington's new gold bid then started the pound upward again. Meanwhile, the florin and the Swiss franc weakened through the purchase of pounds here, giving rise to another crop of rumors about abandonment of the gold standard by the Netherlands and Switzerland. The florin closed_at 10.2725 francs, the lowest quotation in five months. Amidst this financial tension the new Chautemps Government is preparing its budget. The Cabinet held its first meeting this morning and fixed Saturday for the presentation of its program before the Chamber. The financial projects wlll be offered at the same time so they can be examined immediately by the Finance Commission, and discussion can begin early next week. Two Members of M. M. Warburg 8t Co. of Hamburg Die—Carl M. Melchior, Member of Banking Firm Since 1917, and Aby S. Warburg, Cousin of Max and Felix M. Warburg, Dead. Word of the death of two members of the Hamburg banking firm of M. M. Warburg & Co. was received in New York on Deo. 30. Dr. Carl Melchim , who represented Germany at practically all important post-war international conferences until the accession of Chancellor Hitler to power, died at Hamburg on Dec. 30 at the age of 62. The Jewish Telegraphic Agency also reported on Dec. 30 that Aby S. Warburg had died in Germany. Mr. Warburg was a cousin of Max and Felix M. Warburg and of the late Paul M. Warburg. He was more than 70 years old. The New York "Herald Tribune" of Dec. 31 summarized the career of Dr. Melchior as follows: Carl Joseph Melchior was born in Hamburg in October 1871. He studied at the Johanneum there and completed his education at the universities of Berlin and Bonn,from which he was graduated in law. He joined M. M Warburg & Co. in 1902 and had been a partner in the firm since 1917. at which time he came into prominence as one of the leading financiers in arranging for alleviation of the heavy burdens imposed on Germany as a result of the war. He was chairman of the German finance committee during the Spa peace negotiations and in 1919 was a member of the German delegation to the peace negotiations at Versailles. He was financial adviser to the German delegates to the London conference of 1921 and subsequently became a member of the finance committee of the League of Nations. Dr. Melchior was a deputy delegate to the reparations conference held in Paris in 1929 and was sent as an expert to the reparations conferences at The Hague in 1929 and in 1930. When the Bank of International Settlements was organized at Basel after the adoption of the Young Plan in 1930. Dr. Melchior became a member of its board, resigning at the same time from the finance committee of the League of Nations. He later was named a member of a committee on arrangements for short-term loans for Germany. In 1931 he was a member of the group of international experts, among whom was Dr. Oliver M. W. Sprague, then American adviser to the Bank of England, which devised measures to halt the flow of foreign credits out of Germany. Among the other members were James H. Gannon, Berlin representative of the Chase National Bank, and J. Henry Schroeder, of London. The Rathenau prize, awarded annually to the person regarded as having done mostfor the benefit of the German Republic, was given to Dr. Melchior in 1932. Dr. Melchior resigned last April from the directorate of the Bank for International Settlements, which was the last of his high offices to be relinquished. He had been ill for some time with heart disease and arteriosclerosis. Issue Date for German Scrip Postponed—Conversion Bank Expects to File Final Answers by Jan. 15. Ralph T. Crane, of Brown Brothers Harriman & Co., announced on Jan. 2 that the German Conversion Bank had as yet been unable to complete the answers to the final questions submitted by the Federal Trade Commission incident to the registration of the scrip of the Conversion Bank to be issued as part payment for German coupons. Accordingly, Mr. Crane said, the Conversion Bank had filed an amendment to the tentative registration statement now on file, postponing the date for the proposed issue of the scrip from Jan.4 1934,to Jan.24 1934. In the same announcement Mr. Crane stated that it was expected that the Conversion Bank would get in the answers to the final questions by about Jan. 15 1934, and that it was hoped the Federal Trade Commission would, upon the filing of these answers, permit the scrip to be issued a few days thereafter. United States Protests Against Cut by Germany in Transfer Interest on Foreign Debts. Protest has been made by the United States Government, through its Ambassador, William E. Dodd, against the decision of Dr. Schacht, of the Reichsbank, (announced Dec. 18) to reduce, during the next six months, interest payments on German foreign loans—other than the Dawes and Young issues. As to the action of this Government a dispatch Jan. 2 from Washington to the New York "Times" said: It is objectedithatjthenteichsbank's action was one-sided, that it has differentiated.between different classes of creditors in return for trade advantages andlthat German securities depreciated by the German Govern- Jan. 6 1934 ment's own action have been repurchased at low prices with German funds that would otherwise have been available for the American bondholders. Seeks Details on Repurchases. Ambassador Dodd has been instructed to ask the German Government for detailed information about the amount of funds made available in the last two years for the repurchase of such securities. As a result of the step it announced two weeks ago the German Government has reduced the interest payable on the 7% bonds to 4.55% and that on the 6% bonds to 3.90%. This was done by cutting the transfer interest payments on the long and medium term debts to 30% and making the balance of 70% payable in scrip redeemable at half its value. The amount of American money involved, although up-to-date figures are not available here, is believed to be in the neighborhood of $1,750,000,000. The American Government takes the attitude that if and when loan contracts must be modified to the detriment of the creditor this should be done only after discussion with and agreement by the creditor. Failure to observe this principle, it is contended, not only damages the credit of the debtor but challenges the whole structure of International credit on which financing commerce largely depends. Despite emphatic protests by the creditors' committee, the Reichsbank, it is pointed out here, has maintained the attitude that payment in marks satisfies debts payable by contract in foreign currency. It has also ignored Gerthe complaint of the creditors that there have been no developments in of many's economic life sufficient to warrant any change to the detriment the creditors during the next half year. Trade Arrangements Opposed. larger quotas It is also complained that in return for agreements to take specially advanof German goods the German Government has concluded tageous arrangements with its Dutch and Swiss creditors. made Notice has also been taken in official circles of the announcement Berlin would on Dec. 26 that the Housing Realty Improvement Co. of repurchase of invite tenders through an American investment house for the that its 7% bonds at a price of $450 per $1,000 bond,subject to the condition sale at least $500,000 of the principal amount of the bonds be tendered for on or before Jan. 20. of It us understood that the use of German funds for the repurchase call securities above the legal amortization schedule or before the regular German Govdate at prices depreciated mainly because of the action of the Departernment in halting or reducing their service is viewed by the State bondAmerican the due properly ment as a diversion of foreign exchange holders. In private finance it is considered unethical for the officials of a stock and then company to push down the prices of its stock by cutting dividends than that to take advantage of the situation to repurchase it at a lower figure for which it was sold to the public. In this case the situation is complicated by the fact that German bonds for lack of which can be repurchased only with that same foreign currency the German Government protests its inability to pay interest and amortization on them. Stating that the protest was presented to the Foreign Office on Jan. 3, Berlin advices that day to the "Times" added: In the absence of Foreign Minister von Neurath it was received by Dr. Gerhard Koepke, the Under-Secretary who is most concerned with the was profinancial and economic sides of German foreign policy. A reply mised in a few days. As seen here, the protest stresses the arbitrariness of the German proceeding in violating the principle of negotiation between debtor and creditor by tolling the creditor how much he is going to get instead of discussing the matter with him. At this stage Germany is invited to reveal more fully the facts that have supposedly brought about her arbitrary action. Reason for Form of Note. For this form that the note has taken there is an excellent reason. If not the United States thinks Germany should pay more and she should agree, how is it to compel her? Economic reprisals are out of the question because the Americans sell Germany more than she sells them. difBritain, which is also protesting but with rather more vigor, is in a ferent position. She buys more from Germany than she sells to her. A be would to England, British tariff against German goods, while profitable immensely injurious to Germany in her present economic straits. of Switzerland, which has just exacted from Germany a prolongation the agreement under which she pays her Swiss obligations in full, is in a concession. a similar position. So is Holland, which is daily expecting similar This yielding to other creditors at the American expense is a feature of the American creditors' protest. But except to insure a firmer American front at the forthcoming conference between Dr. flijalmar Schacht, President of the Reichsbank, and the standstill committee on short-term indebtedness, it is difficult here to see what force other than moral force can be ranged behind the American protest. To any threat of tariff reprisals Dr. Schacht can reply that any diminution of German exports by discriminatory tariffs can only result in a decrease of the German resources from which the debts owed to Americans are paid. The Reichsbank's decision to reduce the German bond interest was referred to in these columns Dec. 23, page 4444, and Dec. 30, page 4607. Russia Gold Pledge to Germany Denied—Berlin Embassy Says Commercial Exchange is Adequate to Cover Russian Obligations. From the New York "Times" we take the following from Berlin, Jan. 3: Soviet A report that the Soviet Union's production of gold has been pledged to the Reichsbank as coverage for German industrial credits was designated to-day as "bosh" by an official of the Soviet Embassy here. The Soviet Government made sporadic shipments of gold to Germany last year, it was said, but only when Its commercial bills could not be paid in foreign exchange. By the terms of a credit agreement entered into with Germany a year ago, the Russian Government pledged enough of its gold and timber production to guarantee the German credits. This arrangement however, will not apply to 1934, it was declared, as the Soviet Union was in a position to meet Its commercial debts through regular banking channels and is complete master of its gold production; nor has it made application for a renewal of the German credits for 1934. The Russian debt to Germany now amounts to about 500,000,000 marks. Of this total she is allowed to pay 300,000.000 in Reichsmarks, although the deliveries were made on a basis of dollars and sterling. The slump in these two currencies precipitated a controversy between the Soviet Government Volume 138 Financial Chronicle and German private firms, the latter demanding revalorization of foreign currencies on a gold basis. This the Russians declined to do and the German claim was not pushed. A proposal said to have been made by a group of American banks to liquidate Russia's indebtedness to Germany with blocked marks foundered on the Opposition of the Reichsbank, it is reported. The Soviet Embassy official asserted no new orders were being placed by Russia in Germany at present. G. T. Emmet of New York Appointed Minister to Netherlands—Former Law Partner of President Roosevelt. President Roosevelt on Dec. 30 appointed Grenville T. Emmet of New York to be Minister to the Netherlands. Mr. Emmet is a former law partner of the President and is his close personal friend. The New York "Times" of Dec. 31 summarized his career, in part, as follows: Grenville T. Emmet, a great-grandnephew of the Irish patriot, Robert Emmet, has been mentioned since last spring in connection with appointments in the diplomatic service. His family has long been prominent in the State, and his great-grandfather, Thomas Addis Emmet, brother of Robert Emmet, held the post of State Attorney-General. Thomas Addis Emmet, who is buried in St. Paul's Churchyard, canoe here as an exile in 1806, after the execution of his brother. Grenville Emmet was born at New Rochelle, N. Y., on Aug. 2 1877, a son of Richard Stockton Emmet, and was educated at St. Paul's School and at Harvard, from which he graduated in 1898. He served in the SpanishAmerican War with the Sixty-ninth Regiment. He is senior partner of the law firm of Emmet, Marvin & Martin, 48 Wall Street, a continuation of the firm started by his father as Emmet & Robinson. President Roosevelt became a partner in the firm in 1921, after his unsuccessful campaign for the Vice-Presidency, and the firm was then known as Emmet, Marvin & Roosevelt. Reduction in Capital of Swiss Banks. Advices as follows were contained in the London "Financial News" of Nov. 22: Considerable surprise was caused at Zurich yesterday by the announcement that the Banque Populaire Suisse (Schweizerische Volksbank) Is compelled to write off losses of more than 100,000.000 Swiss francs. This will be done,says Reuter, by reducing the capital from 186.000,000 f. by half, and drawing on reserves, said to amount to 42,000,000 f., for the remainder. Government to Subscribe. The7Federal Government will then subscribe 100.000,000 f. of fresh capital, of which 25% will be paid up. It is stated that all deposits ar fully covered, and that there will be no loss for anyone except the shareholders. The present position of the bank is attributed to imprudent credit operations in foreign countries since the war. In 1931 rumors were current about the bank, and in September of that year a run on deposits took place. This was successfully stemmed, but an embarrassing shrinkage of deposits was inevitable. Two Other Banks to Cut Capital. Two other Swiss banks, the Banque Commerciale de Basle (Basler Handelsbank) and the Union des Banques Suisses (Schwetzerische Bankgesellsc.haft) are reducing their capital. The reductions are to be effected by the purchase and cancellation of shares. The position of both these banks is sound. and the reduction is being made because general shrinkage of banking business has rendered apart of the capital superfluous. An item regarding the Banque Commerciale de Basle appeared in our issue of Nov. 25, page 3758. Norwegian Bearer Bonds—Order-in-Council Regulating Purchases from Abroad. From the London "Financial News of Nov. 22 we take the following from Oslo Nov. 21: An Order-in-Council has been published by the Norwegian Government deciding that bearer bonds in foreign exchange issued by Norwegian debtors temporarily must not be imported to Norway from abroad without permission from the Ministry of Finance. The Ministry of Finance adds that, owing to the fluctuating dollar rate. the purchase from abroad of such bonds by Norwegian citizens has adopted unreasonable proportions. It is essential that these purchases may be regulated and kept within normal and sound limits. Vatican Imposes Import Tariffs for First Time in • History. From the Vatican City, Dec. 29, Associated Press advices were reported as follows: Import tariffs were established for the first time in the history of the Church State by a decree of the Governing Council, published to-day. Effective Jan. 1, it sets in force a moderate schedule of duties applicable to practically all imports. The schedule does not compare, however, with the heavier Italian duties,from which Vatican City imports are exempt. The move is a part of the Pope's campaign to reduce expenses and increase the State's revenue. It was also announced that Vatican City residents would have to pay for electricity, hitherto furnished them without cost, and that the price of tobacco would be increased by 5%. Silk-producing Industry of Italy Declining Steadily— Silk Exports During-First Six Months Amounted to 181,278,000 Lire as Compared with 401,000,000 Lire in Entire Year 1932 and 1,377,900,000 Lire in Year 1930. The progressive decline in the past few years of Italy's silkproducing industry is revealed in a report from Vice-Consul Paul D. Thompson, Milan, made public by the U. S. Commerce Department. An announcement issued Nov. 21 by the Commerce Department said that the report showed that 45 in 1930 silk exports,amounting to 1,377,900,000 lire, accounted for 11.36% of Italy's total export trade. The announcement continued: In 1932 silk shipments had fallen to 401,000.000 lire, representing only 5.87% of the country's export trade. During the first six months of the current year, Italian silk shipments abroad were valued at 181,278,000 lire and represented 5.83% of aggregate exports. is Curtailed consumption of silk in Italy's chief foreign markets, combined with steadily Increasing competition from the Orient, is the basis for the present unfavorable position of the country's silk industry,the report states. Any substantial improvement, it points out, must await the resumption of normal conditions in the American market. Silk consumption in the United States, the report shows, has drastically declined in 1933 compared with other years. During the month of September total silk deliveries to American mills amounted to only 31,000 bales, approximately half the figure for the same month of last year. Because of the low exchange value of the yen, Japanese silk producers are able to offer silk at prices far below those asked for the Italian product which are quoted in lire. Notwithstanding the low costs of their last cocoon crop,it is believed in the Italian silk trade, that present Japanese quotations are below the level of production costs. (Current value of lira, approximately 8 cents, U. S. currency.) Initial Quarterly Interest Payment Due Jan. 1 on 7% 10-year Bonds of Russia Met. Announcement is made that interest coupons covering the initial quarterly interest payment due Jan. 1 on the 10,000,000 gold rouble 7% 10-year bonds of the Union of Soviet Socialist Republics may be presented for payment at the Chase National Bank, New York, United States Paying Agent for the Union of Soviet Socialist Republics. Payment is being made in American currency based on the value of the gold rouble at the rate of exchange prevailing Jan. 2 1934, said an announcement issued in the matter, which added: The official rouble rate in United States currency as cabled to the Soviet American Securities Corp. here from the State Bank of the Union of Soviet Socialist Republics establishes the rate at which interest is paid at $5.62 per 100 gold rouble bond. Inasmuch as interest payments are computed on a gold basis, coupons presented hereafter will be redeemed at the exchange rate prevailing on day of presentation. The initial annual interest payment on the Union of Soviet Socialists Republics' issue of 10% bonds, the first Soviet gold bonds ever offered in this country, was made on Dec. 1 last at the rate of $8.07 per 100 gold rouble bond. Initial distribution of the 7% bonds which were issued for the purpose of furthering the general economic development of the Soviet Government in accordance with the program of the second five-year plan began in July 1933 at which time the dollar had suffered depreciation in terms of foreign currencies. Purchasers in that month, who bought a 100-gold rouble bond at approximately $72 will actually be receiving, upon presentation of their coupons, a return of 7.85% in view of the dollar's further depreciation since July. At to-day's rate of exchange, based on the value of the gold rouble, the bonds are selling at $81.57. Payment of principal, when due, is likewise based on a fixed quantity of gold, payable in American currency at prevailing rate of exchange. The bonds are issued at par, 100 gold roubles and accrued interest. Each gold rouble contains 0.774234 grams of pure gold. Bonds are dated Oct. 1 and mature Oct. 1 1943. They are provided for in the 1933 financial program of the Soviet Government. Beginning at the first redemption date. Oct. 1 1939. 20% of the entire issue will be drawn by lot each Oct. 1 until maturity. A unique feature of this issue is an agreement by the State Bank of the Union of Soviet Socialist Republics to repurchase the bonds at par (100 gold roubles) and accrued interest any time after one year from date of purchase. The date after which the State Bank will repurchase them is stamped on each certificate at time of original purchase. This issue is being distributed by the Soviet American Securities Corp. of New York, of which Miles M. Sherover, who has just returned from a visit to Moscow, is the head. The same organization disposed of the entire allotment of the 10% bond issue in this country. Coupon Due on 5% Gold Bonds of Chinese Republic to Be Paid Jan, 15 1934. Announcement has been made that the coupon due on the 5% gold bonds of 1925 of the Chinese Republic is payable on or after Jan. 15 1934, at the rate of $1.25 each, at the offices of the Banca Commerciale Italiana Agency, New York, 62-64 William St. Elections for Cuban Assembly Called for April 22 President Grau San Martin to Retire from Office Month Later—Assembly to Be Given Power for Six Months—Many Political Prisoners Freed. The election of a Constituent Assembly for Cuba will be held on April 22, it was announced on Jan. 2 by President Ramon Grau San Martin, who added that he would not continue as President after May 22, when the new Assembly will meet. He said that he would not be a candidate for any office, but would return to private life and the practice of medicine. This announcement was the principal feature of political news from Havana during recent weeks, aside from the liberation on Dec. 25 of more than 300 civilian prisoners captured at the battle of Atares early in November. These men were freed after they had threatened to go on a hunger strike. In addition, 32 of the 404 army officers, imprisoned at the battle of the Hotel Nacional on Oct. 2, were also liberated at Christmas. Financial Chronicle 46 A Havana dispatch of Jan. 2 to the New York "Times" described the election announcement as follows: The President said a decree he had just signed provides for the reorganization of political parties in January. At the same time Dr. Grau San Martin indicated a decree would be signed soon granting the vote to women and ordering the obligatory registration of every citizen, male and female, over 20 years of age as a voter. The President plans to transfer the Government to the Assembly at its first meeting, and it would then establish a provisional Government to act until general elections can be held. The Assembly would be in session for 180 days, drawing up a new Constitution for Cuba. Time Is Called Too Short. Oppositionists here say one month is far too short a time to organize political parties, particularly while the island is in its present disturbed condition. Some of the most powerful political figures of Cuba are living as exiles in the United States. Former President Mario G. Menocal, chief of the old Conservative party, is in Miami, as is Dr. Martinez Saenz, of the ABC revolutionary organization. Dr. Mariano Gomez, head of the Marianistas, left hurriedly and secretly this afternoon by plane for New York. The only opposition leader of prominence now in Cuba is Colonel Carlos Mendieta, head of the Nationalist party, now badly disorganized. The new Government organ, "La Luz," carried an eight-column streamer headline to-night concerning the discovery of plans for a rebellion against the present Government. No source of the information was given but the story indicated the Government had obtained word of the plans through the secret service. The plans are said to have included expeditions from Miami and Santo Domingo as well as the aerial bombing of the Presidential palace, Camp Columbia, Cabanas fortress and other military strongholds. General Menocal, in Miami, was indicated as the leader of the movement. New Outbreak Is Expected. The Cuban public is convinced it is only a matter of time until the next attempt to oust the Grau San Martin Administration, and the Government has been preparing for the struggle since the outbreak on Nov. 8. Colonel Fulgencio Batista, chief of staff, asserts the Cuban armed •forces, which numbered 12,500 during the Machado regime, have been built up to a strength of 18,000. Shipments of war material for the Government arrive continually. United States Sup eme Court Dismisses Action Brought Against International Committee of Bankers of Mexico in Behalf of Owners of Defaulted Bonds— Mexican Government Declined to Submiz Action to Jurisdiction of New York Court. New York Supreme Court Justice Alfred Frankenthaler ruled on Dec. 27 that the principles of international law required the dismissal of the suit brought by Silas Ezra of Chicago in behalf of himself and other owners of defaulted Mexican bonds to collect more than $6,900,000 held here by the International Committee of Bankers on Mexico, of which Thomas W. Lamont is Chairman. The suit asked also an injunction restraining the Committee from acceding to the demands of the Mexican Government and returning the money to that country. The foregoing is from the New York "Times" of Dec. 28 which went on to say: The Committee is depository for 5509.000.000 of the bonds of a total of 5517,426,499. of which one-fifth was sold in this country. Mr. Ezra's suit was brought in behalf of holders of bonds of the secured debt of $148,000,000 and was based on a contention that the Committee should account, and the money held by the Committee should be distributed among the secured bondholders. The decision is expected to end the litigation here over the fund, which will now be the subject of negotiations between the Lamont committee and the Mexican Government. The plea to Justice Frankenthaler for dismissal was based on an affidavit by Fernando Gonzales Rea, Mexican Ambassador to Washington, under instructions from Dr. Jose Puig Casauranc, Minister of Foreign Relations, and Marte E. Gomez, Acting Secretary of the Treasury. Statement by Ambassador. The Ambassador made the following statement: "My Government has advised that, since, under international law and usage it cannot, with due regard to its National dignity, submit itself or any of its National property to the jurisdiction of the municipal courts of a friendly sovereign sister State, it therefore desires that, as the Ambassador of my country to the United States of America, through the appropriate channels and in accordance with the applicable usages and practice. I make known to the American authorities, executive and judicial, that Mexico respectfully declines to submit to the jurisdiction of the courts of New York State and has authorized me to do all things necessary and proper in order to establish my Government's position in the premises." The Ambassador stated that he had authorized Jerome S. Hess and his law firm, Hardin, Hess Sz Eder,"for and in behalf of my Government and of the embassy of which I am in charge, to take all steps and legal measures that may be necessary and appropriate to protect the interests of my Government and to make known its position in respect to the matters hereinbefore set forth. "Necessary Party." Justice Frankenthaler s opinion referred to the Mexican Government's refusal to submit to the jurisdiction of the court and its contention that "it is a necessary party without whose presence the subject matter of the action may not be passed upon by the court." Justice Frankenthaler said that it was unnecessary to discuss the subject at length in view of a previous decision by Supreme Court Justice Lydon dismissing an action by the international committee for permission to account to the bondholders and a ruling by the Appellate Division in an action by a bondholder for the appointment of receivers of the fund. The courts held in both cases that the Mexican Government was a necessary party and could not be made a party without its consent. Colombian Bondholders to Co-operate with Administration. The Bondholders' Committee for Republic of Colombia dollar bonds, of which Richard Washburn Child is Chairman and Douglas Bradford, 120 Wall St., Secretary, an- Jan. 6 1934 nounces that it has "tendered to the National Administration full co-operation with such instrumentalities as it chooses to designate for bondholders' protection," and urges the continuance of deposit of bonds in order that full advantage may be taken of favorable developments as they occur. It is imperative, it is pointed out, that bondholders mobilize to block any further disregard of their rights on the part of authorities in Colombia. The statement also says: This committee was organized in November 1932. It was the first committee to approach the Colombian situation in behalf of the bondholders. and it is the only committee to represent the holders of the bonds of all the different issues involved. This is essential because the principal problems are common to all of the issues, and only concerted action and a a united front can be productive of beneficial results for the holders of any of the bonds. Substantial progress has been made by the committee in arranging for the holders of all of these bonds to organize and deposit their bonds with suitable depositaries so that joint action can be taken in their behalf. Bonds have been so deposited from 45 of our States, from coast to coast, and from all over Canada. from Vancouver to Nova Scotia. Uruguay Fixes Interest on Foreign Debt for 1934 at not Less Than 3M7o. Jose Richling, Charge d'Affaires of the Uruguayan Government at Washington, announced in New York on Dec. 24 that he had received cabled advices from the Minister of Finance saying that the government had decided that its foreign debt should receive payment of interest for 1934 at a rate not lower than 33/%. The foregoing is from the New York "Times" of Dec. 25 which also stated: This ruling follows the decree of July 3, last, in which the Uruguayan Government ruled it would no longer pay interest on its foreign debt in at par of terms of gold, but would set aside Uruguayan pesos in Montevideo exchange. Subsequently, foreign holders of the republic's bonds were faced with the problem of transferring the exchange thus credited in view of the fluctuations in the exchange quotations. The Uruguayan Government's dollar bonds affected are 56,860,000 8a. due on Aug. 1 1946; $27,694,500 6s, due on May 11960, and $17,144,500 Els, due on May 1 1964. The sinking funds on these bonds were suspended been by governmental ruling early in 1932. The 6% loans which have being active on the New York Stock Exchange in recent weeks are now higher. slightly quoted at 30 cents on the dollar. The 8s are quoted Because of adverse trade and business conditions in Uruguay the peso 3 % has fluctuated widely. At present the rate is 74 cents, compared with parity of 51.0342. A year ago the rate stood at 47 cents a gold peso in terms of the dollar. UruThe other chief foreign creditor of Uruguay is England. Various guayan sterling issues are listed on the London Stock Exchange. President Roosevelt Denies Request That United States Financial Administrators Be Withdrawn from Haiti—Replies to President Vincent That Satisfactory Refunding Arrangements Must First Be Evolved—Says This Nation Would Aid Such a Plan. President Roosevelt, in answer to a plea by President Stenio Vincent of Haiti, has stated that unescapable treaty obligations prevent the immediate withdrawal of the United States financial administration from Haiti unless a refunding arrangement can be concluded which will be satisfictory to the holders of $12,600,000 of Haitian bonds. The President, in his communication, said that it would be welcome to the United States if such an arrangement could be worked out at an early date, with the agreement of the bondholders, which would result in the withdrawal of United States assistance in controlling Haitian finances. He added that this nation would be glad to lend its good offices in any way which would not involve it in further responsibilities in Haiti. A Washington dispatch of Dec. 2 to the New York "Times," from which the above is taken, continued in part: In addition to a letter which President Vincent wrote to Mr. Roosevelt, on Nov. 16, asking removal of the financial administration. the Haitian delegation while en route to the Montevideo conference made a similar request of Secretary Hull, who was on the same ship. It was suggested that the withdrawal be made before the conference began. Forwarding the Haitian petition to Washington, Mr. Hull took the position outlined in Mr. Roosevelt's letter to Mr. Vincent. In this letter to the Haitian President, Mr. Roosevelt enclosed a copy of a recent letter by Acting Secretary of State Phillips to Harry F. Ward, Chairman of the American Civil Liberties Union, maintaining the same attitude. President Roosevelt's letter . . . expressed admiration for the way in which Haiti has carried out her financial obligations and has promised to continue. But the communication declared the United States was under an unescapable obligation to carry out the 1915 treaty, 1919 protocol and the agreement of Aug. 7 1933. Except for this obligation, upon which the bondholders are entitled to insist, said Mr. Roosevelt, the United States would be only too glad to discontinue its financial administration in Haiti immediately. The President further pointed out that the obligation was not to any bank or particular creditor, but to the bondholders who relied upon the good faith of both Governments to carry out the provisions of existing agreements. The letter stated that at the present rate of amortization the bonds would be retired about 1944 and the financial clauses of the August 1933 agreement would then cease. Under the 1919 protocol Haiti was authorized to float a $40,000,000 bond issue, of which $23,660,000 was issued. Of the latter there is now outstanding about $12,655,782. The $40,000,000 was designed to clear up the financial affairs of Haiti, which a Senate Committee found had at the time of American intervention totally exhausted its credit at home and abroad. Volume 138 Financial Chronicle Holds Control Necessary. It was evident, Mr. Phillips wrote Mr. Ward, that "in view of Haiti's financial situation no loan could be floated on any reasonable terms unless financial control should be established to continue for the life of the loan." President Vincent's letter to President Roosevelt praised Norman Armour, the United States Minister, and declared Haiti's intent to carry out the agreement, but remarked that it infringed on Haitian sovereignty. "Is this disparagement of a member of the great Pan-American family, after all, really necessary?" he asked. Congratulating President Roosevelt on his Latin American policy, H. Vincent said a "most favorable impression" had been made upon Haiti and all Latin America by the United States's conclusion that "the situation in Cuba is a Cuban problem the solution of which should only be found by means of Cuban methods." In closing, M. Vincent expressed the hope that the United States "will be able to renounce a useless financial control in Haiti by a spontaneous act which would be the most eloquent affirmation of a common will toward friendship, better understanding, inter-American economic co-operation and collaboration of the well-being, respectively, of the nations of the three Americas." Says Haitians Benefited. Mr. Phillips's letter to Mr. Ward, an exhaustive study of the American position, said at one part: "You are, of course, in error in supposing that the indebtedness of Haiti Is to the National City Bank. As a matter of fact, it is to private investors who were induced to invest because of the obligations of the United States with respect to Haitian affairs expressed in treaty provisions with Haiti and who would never have invested in the absence of such obligations. "Furthermore, from the facts which have been stated herein above, it should seem evident to any fair-minded observer that the assistance rendered by this Government to the Government of Haiti in the matter of financial administration under existing agreements between the two Governments has been primarily in the interest and to the benefit of not any particular group of creditors of the Haitian State but of the Haitian people themselves." According to Mr. Phillips, it is the policy of both Governments to termirate the financial administration "at the earliest possible date consistent with existing obligations." The correspondence does not, it is stated, concern the American Marines in Haiti, which now number about 800, in addition to some 150 who are officers of the Guardia Nacional. There were originally many more marines, but they have been withdrawn. • The text of President Roosevelt's letter to President Yin,cent of Haiti was issued on Dec. 5 by the State Department, and was given as follows in Washington advices to the New York" Herald Tribune": Nov. 29 1933. His Excellency Stenio Vincent, President of the Republic of Haiti, Port au Prince. Dear Mr. President: I beg to acknowledge receipt of your letter dated Nov. 16 1933, relating to the financial arrangement embodied in the agreement of Aug. 7 1933, between our two countries. Permit me at the outset to express my warm admiration for the manner in which the Haitian Government has loyally honored its financial obligations. It was, as Secretary Hull stated on Aug. 8 1933, in large measure due to the efficient administration of your Excellency's Government that it was found possible to arrive at an agreement so favorable to Haiti in its terms. I am glad to read in your letter what has been so clearly implied in the actions of your Government, namely, that Haiti intends to continue to fulfil loyally its obligations in this field. So far as the United States Government is concerned, I may say that in my judgment this Government is under an unescapable obligation to carry out the treaty of 1915 and the protocol of 1919, and in the agreement of Aug. 7 1933 it has made appropriate provision to that end. Except for this obligation, upon which the bondholders are entitled to insist, my Government would be only too glad to discontinue at once its connection with financial administration in Haiti. You, of course, appreciate, Mr. President, that this is an obligation not to any bank or particular creditor, but to the holders of the bonds who have relied upon the good faith of your Government and my Government to carry out the provisions of existing agreements. As you know, at the present rate of amortization the bonds will be retired about 1944, and the financial administration under the agreement of Aug. 7 1933 will of course cease at that time. It would, however, be most welcome from the point of view of the United States Government if a arrangement could be worked out by Haiti at an earlier date, refunding with agreement of the bondholders, which would result in the withdrawal by this Government from its part in the administration of Haitian finances. Under Article XXVI of the agreement of Aug. 7 last, Haiti, with the approval of the United States, reserved the right to retire the bonds before their due date provided she could make an arrangement for this purpose satisfactory to the holders of the bonds. The United States Government would be glad to lend its good offices in the matter in any way which would not involve it In any further responsibilities in Haiti. You may be interested to know that recently I have received letters from organizations injhis country on the subject of the agreement of Aug. 7 1933. I am inclosing, as I believe you will desire to read it, a copy of a letter written in reply to one such communication by the Acting Secretary of State. 1 concur in the views therein set forth. With the expression of my cordial personal regard and best wishes, Your sincere friend, FRANKLIN D. ROOSEVELT. Inc'mire: Copy of letter addressed to American Civil Liberties Union. Haiti Now Hispaniola on Official U. S. Maps. The following, Associated Press, from Washington, Nov. 23, appeared in the New York "Herald Tribune": Hispaniola is making its appearance on official United States maps and in publications as the name of the Island heretofore designated at Haiti. The change is being made in accordance with a decision of the United States Geographic Board which gives back to the Island the name bestowed on it by Christopher Columbus when he discovered it on Dec. 6 1492. Earlier that year Columbus on the same voyage discovered the New World, landing on San Salvador Island, one of the Bahamas. Hispaniola, second largest Island In area and population in the West Indies, comprises the republics of Haiti and Santo Domingo and for years has been known as the Island of Haiti. 47 Richard Whitney, President of New York Stock Exchange, Says Feeling Among Business Men is That Worst is Behind Us—Confidence That with Patience and Courage Problems Ahead Will Be Solved. In indicating that "the feeling is general among business men to-day that the worst is now behind us," Richard Whitney, President of the New York Stock Exchange,had the following to say regarding 1933 and the economics revival: In a study of industrial production during 1927-1933 in the United Kingdom, France, Germany. Japan, Italy, Belgium, Canada and this country. Leonard Ayres some months ago declared that the bottom of the world depression came in the summer of 1932. and that in all these countries there had subsequently occurred a gradual and partial yet very marked recovery. I do not wish to pose as any prophet, but I think the feeling is general among business men to-day that the worst is now behind us, and that 1933 will go down in history as the year when the flow tide of returning prosperity was first unquestionably perceptible. Undoubtedly grave problems still lie ahead, yet in contrast to public psychology a year ago there is now a feeling of confidence that with patience and courage all admit of ultimate solution. The world in recent years has been experiencing the full consequences of the dislocation of customary trade and industrial relationships, and of the enormous piling up of debts, produced by the World War. In this country we were remarkably slow in feeling these inevitable economic forces. Indeed, after the brief depression of 1919-1921 there occurred a period of prosperity which, although based largely upon credit expansion, had an astonishingly deceptive appearance of stability. The finances of foreign governments were gradually put in order. Commodity prices as a whole remained remarkably stable. Industrial production and the consuming power of the public increased beyond anything the world had ever seen. Few living persons were at the time able to foresee that unprecedented chain of disastrous developments which were destined to Plunge all countries in the world into a depression of unequalled magnitude and intensity. Someone has remarked that different countries suffer in depressions in direct proportion to their previous wealth and standards of living. In the United States our recent economic trials have undoubtedly been all the greater because of the heights of our previous prosperity. Indeed, this fact was clearly brought out in Mr. Ayres' study, which shows the rate of recession in industrial activity as being more severe in this than in the other countries. Another peculiarity of the recovery in this country since the summer of 1932 was its interruption in the early months of this year owing to our banking troubles. In part this accounted for the particularly vigorous rally in business which occurred in the late spring and early summer. The speed and extent of economic revival after depressions have varied greatly in the past. Recovery is not subject to mathematical formula. It results from a re-establishment of economic equilibrium and balance between many different factors, which sometimes lie outside the boundaries of the country and which often are not readily subject to artificial methods of remedy. It is also true that after a great depression, what one sees is not simply a restoration of conditions as they were on the eve of the disaster, but a new set of conditions expressive of changes permanently wrought by the depression itself. It is a well-known fact that much of our most salutary legislation—such, for example, as the Federal Reserve Act—was born of depression, and that it was in the years of calamity rather than in those of prosperity that the soundest business practices were adopted. From this standpoint, depressions have frequently been of creative and productive value to continued progress in economic affairs. Throughout the years of both boom and depression, the security markets as a whole have quite faithfully reflected current economic conditions and such future conditions as were generally anticipated by the public. At first the enormous earnings of successful corporations inevitably led to a great rise in share prices. Subsequently, the unprecedented shrinkage in earning power resulted in a sustained decline in prices. This tremendous reversal in earning power and industrial activity, the security markets reflected in the price of shares—they did not cause it. Unfortunately, many people have not always perceived this fact and have been inclined to attribute the increasing severity of the depression to falling security prices. rather than to realize that declining prices were simply telling uncomfortable truths about the actual economic and business situation. As the activity and rising prices in the market last spring clearly showed. security markets are just as quick to reflect favorable as unfavorable business conditions. But the favorable conditions must be in evidence or anticipated. Security prices cannot go up during periods when earnings are shrinking, and when the outlook for business is not encouraging. Prices will and do go up when earnings increase or as a result of returning confidence in the prospects shown for industry and business. One might as well expect a thermometer to rise when a blizzard is commencing. By the same token, one cannot conveniently avoid blizzards by smashing the thermometer or putting a match under it. Amendments to Rules of New York Stock Exchange Adopted—Employment of `Customers' Man' to be for Period of Not Less Than Three Months—Ruling for Delivery of Securities Changed. At a regular meeting of the Governing Committee of the New York Stock Exchange, held Dec. 27, the following amendments to the "Rules" of the Exchange, pertaining to 'customers' man' and delivery of securities, were adopted: Insert between the first and second sentences of Sec. 9 of Chapter XVI a new sentence reading—"The renewal of any such contract may be for a period of not less than three months."—said paragraph, when so amended, to read as follows: No member of the Exchange or firm registered thereon shall employ any "customers' man," except pursuant to the provisions of a written contract of employment which shall provide for a term of employment of at least six months' duration and at salary at least equal to the minimum fixed from time to time by the Committee on Quotations and Commissions. The renewal of any such contract may be for a period of not lets than three months. Prompt notice shall be given to said Committee on Quotations and Commissions of any modification or termination of any such contract and the reason therefor. Amended Chapter III to read as follows: "CHAPTER III. Delivery of Securities. Sec. 1. Deliveries of securities on a full business day (except as provided in Sec. 3 hereof) shall be due before 2.15 P. m., unless Stock Clearing Corporation shall extend the time within which securities deliverable through It may be delivered, in which event the time within which other securities may be delivered shall thereby be similarly extended. Financial Chronicle 48 Sec. 2. If securities due on any particular day are not delivered within the time specified in Sec. 1 hereof, the contract may be closed as provided In Chapter IV hereof. In the absence of any notice or agreement, the contract shall continue without interest until the following full business day; but in every case of non-delivery of securities, the party in default shall be liable for any damages which may accrue thereby. All claims for such damages shall be made promptly. Sec. 3. Deliveries against transactions made for 'Cash' at or before 2.00 p. in. on a full business day shall be due before 2.15 p. m. Deliveries against transactions made for 'Cash' at or before 11.15 a. m. on a half holiday shall be due before 11.30 a. m. Deliveries against transactions made for 'Cash' after 2.00 p. in. on a full business day or after 11.15 a. in. on a half-holiday shall be due within thirty minutes after the time of the sale. Sec. 4. In all deliveries of securities, the party delivering shall have the right to require the purchase money to be paid upon delivery. If delivery is made by transfer, payment may be required at time and place of transfer, provided however, that payment on deliveries through Stock Clearing Corporation shall be made in conformity with its By-laws and Rules. Sec. 5. The buyer shall accept any portion of a lot of securities contracted for or due on a security balance if tendered in lots of one trading unit or multiples thereof, and may buy in the undelivered portion as provided in Chapter IV hereof; but on sales made 'Seller's Option' or 'Delayed Delivery.' the buyer shall not be required, within the time specified in the option, to accept a portion of a lot of securities contracted for. Sec. 8. Each delivery of securities subject to tax on transfer or sale, must be accompanied by a sales ticket stamped in accordance with the regulations of the United States and/or the State of New York, as required by law; except that in the case of securities cleared by or deliverable through Stock Clearing Corporation, sales tickets so stamped shall be delivered in accordance with its By-laws and Rules. Sec. 7. Parties receiving securities shall not deduct from the purchase price any damages claimed for non-delivery, except by the consent of the party delivering the same. Sec. 8. Notice for the return of loans of money or non-cleared securities, as defined in the By-laws and Rules of Stock Clearing Corporation, must be given before 12.15 p. m. of the day on which the return is to be made. Notice for the return of loans of cleared securities, as defined in the Bylaws and Rules of Stock Clearing Corporation, must be given before 3.45 p. in. of the second full business day preceding the day on which the return is to be made, except that notice, which under this rule would be given on the day preceding a half-holiday, may be given before 12.45 p. in. on such half-holiday. All such notices shall be considered as in full force until delivery is made. Sec. 9. All contracts falling due on holidays and half-holidays shall mature on the succeeding full business day, unless otherwise specified. Loans of money made on the day preceding a holiday or half-holiday shall mature on the succeeding full business day, unless otherwise specified. Loans of securities shall be deliverable on the second full business day following the day of the loan, unless otherwise specified." M. A. Noble, of Noble & Corwin, Re-Elected President of New York Security Dealers Association at Annual Meeting—Others Elected. Mark A. Noble, of Noble & Corwin, was re-elected President of the New York Security Dealers Association at the annual meeting of the Association held Jan.3. James Curry, Jr., of Laird, Bissell & Meeds, was elected to membership on the Board of Governors to succeed R. F. Gladwin, who is no longer a member of the Association. Other members of the Board of Governors elected to serve for three years are: Frank Y. Cannon, of Charles E. Doyle & Co. Harry D. McMillan, of L. A. Norton & Co. Mark A. Noble. Richard 0. Rice, of J. K. Rice & Co. In addition to Mr. Noble, all of the retiring officers were re-elected to serve for the ensuing year, namely: Frank Y. Cannon, Vice-President. Clinton Gilbert, Vice-President. Harry D. McMillan, Treasurer. Oliver J. Troster, Secretary. Outstanding Brokers' Loans on New York Stock Exchange Up $55,902,985 During December—Third Consecutive Increase Brings Total on Dec. 30 to $845,132,524, as Compared with $789,229,539 on Nov. 30. For the third consecutive month outstanding brokers' loans on the New York Stock Exchange increased during December; the total on Dec. 30 being $845,132,524, as compared with $789,229,539 on Nov. 30. This represents an increase of $55,902,985 which compares with an advance of $13,047,506 from Oct. 31 to Nov. 30. The total on the former date amounted to $776,182,033. Demand loans during December amounted to $597,953,524 while time loans were $247,179,000. During November demand loans were reported at $544,317,539 and time loans $244,912,000. The Exchange made public the Dec.30 figures as follows on Jan. 3: Total net loans by New York Stock Exchange members on collateral, contracted for and carried in New York as of the close of business Dec. 30 1933, aggregated $845,132,524. The detailed tabulation follows: Demand Loans. Time Loans. (1) Net borrowings on collateral from New York $528,876,318 banks or trust companies (2) Net borrowings on collateral from private bankers, brokers, foreign bank agencies or others in the City 69,077,206 of New York Total $597,953,524. $247,004,000 175,000 $247,179,000 Combined total of time and demand loans 8845,132,524. The scope of the above compilation is exactly the same as in the loan report issued by the Exchange a month ago. Jan. 6 1934 Below we give a compilation of the figures since January 1931: 1931— Jan. 31 Feb. 28 Mar. 31 Apr. 30 May 29 June 30 July 31 Aug. 31 Sept.30 Oct. 31 Nov.30 Dec. 31 1932— Jan. 30 Feb. 29 Mar. 31 Apr. 31) May 31 June 30 July 30 Aug. 31 Sept.30 Oct. 31 Nov. 30 Dec. 31 1933— Jan. 31 Feb. 28 Mar. 31 Apr, 29 May 31 June 30 July 31 Aug. 31 Sept.30 Oct. 31 Nov.30 Dec. 30 Demand Loans. Time Loans. $ 1,365,582,515 1,505,251,689 1,629,863,494 1,389,163,124 1,173,508,350 1,102,285,060 1,041,142,201 1,069,280,033 802,153,879 615,515,068 599,919,108 502,329,542 $ 354,762,803 334,504,369 278,947,000 261,965,000 261,175,300 289,039,862 302,950,553 284,787,325 242,254,000 180,753,700 130,232,800 84,830,271 Total Loans. $ 1,720,345,318 1,839,756,058 1,908,810.494 1,651,128,124 1,434,683,650 1,391,324,922 1,344,092,754 1,354,067,350 1,044,407,879 796,268,768 730.151,908 587,159,818 452,706,542 482,043,758 496,577,059 341,003,662 246,937,972 189,343,845 189,754,643 263,516,020 269,793,583 201,817,599 213,737,258 226,452,358 59,311,400 42,620,000 38,526,000 38,013,000 53,459,250 54,230,450 51,845,300 68,183,300 110,008,000 122,884,600 123,875,300 120,352,300 512,017,942 524,663,758 533,103,059 379,015,662 300,397,222 243,574,295 241,599,943 331,699,320 379,801,583 324,702,199 337,612,558 346,804,658 255,285,758 222,501,556 207,601,081 207,385,202 398,148,452 582,691,556 679,514,938 634,158,695 624,450,531 514,827,033 544,317,539 597,953,524 104,055,300 137,455,500 103,360,500 115,106,986 130,360,986 197,694,564 236,728,996 283,056,579 272,145,000 261,355,000 244,912.000 247,179,000 359,341,058 359,957,058 310,961,581 322,492,188 528,509,438 780,386,120 916,243,934 917,215,274 896,595,531 776,182,033 789,229,539 845,132,524 In our issue of April 8, page 2336, we gave the monthly figures back to January 1926. Candidates for Governors and Nominating Committees of Commodity Exchange, Inc., Named. The annual election of Governors and nominating corcimittees to represent the several membership groups of Commodity Exchange, Inc., New York, to serve for the various terms, will be held Jan. 16. The candidates presented by the Nominating Committee to represent the respective groups are listed below: Hide Leo Arnstein Milton R. Katzenberg Armand Schmoll. Jr Edward L.McKendrew Fraser M.Moffat Governors. Metal— Term. 1 Year Addison B. Hall 2 years Ivan Ranier 2 years Benno Elkan 3 years Irving J. L011111 3 years Martin H. Wehncke Rubber— Marcus Rothschild Robert Badenhop Charles Slaughter Charles T. Wilson William E. Bruyn Term. 1 year 2 Years 2 years 3 years 3 years C011iMiSe011 House— Harold L. Bache John L. Julian Floyd Y. Keeler .1. Chester Cuppia Jerome Lewine Non-trade— Term. 1 Year Frank W.Lovett 2 Years Kuo C.Li 2 years I. Henry Hirsch 3 years 3 years Silk— Charles Muller Paul A. Salembier Douglas Walker Paolino Gerli Frederic D. Huntington Term. 1 year 2 years 2 years 3 years 3 years Term. 1 year 2 years 2 years 3 years 3 years Term. 1 year 2 years 3 years James Brown of New York Chamber of Commerce Sees Real Progress in 1933 Despite Influences Regarded as Retarding Recovery—Year One of "Great Experimentation"—Sound Currency Based on Gold Needed to Restore Confidence—Modification of Federal Securitie3 Act Urged. "The year 1933, I believe," says James Brown, President of the Chamber of Commerce of the State of New York,"will go down in history as the year of great experimentation, when time-honored standards of government were radically departed from and industry bowed to Government dictation In the struggle to free itself from the remaining shackles of depression and to forge ahead to a new prosperity." In a year-end survey, made available Jan. 2, Mr. Brown observes that "looking back to a year ago, we have much to be thankful for as we enter 1934. We have made real progress, despite the influences and conditions which many of us felt were retarding recovery. When the balance for 1933 is struck, however, we find that while some of the things we hoped for have not come to pass, neither have some of the things we most feared materialized." He continues: Among the items I would list as evidence of progress and cause for thankfulness in America are: That the nation as a whole is looking forward to the future with more hope. That there is evidence of returning prosperity in other parts of the world. That industry in many lines here has shown marked improvement. That child and sweatshop labor has been virtually wiped out. That several more million people are employed now than were a year ago. That wages in several underpaid industries have been increased. That capital and labor are appreciating more fully the difficulties of their respective problems. That national prohibition is ended and that the nation now has an opportunity by moderation, temperance and legitimate dealings to rid itself of the bootlegger and his criminal cohorts. Mr. Brown likewise says: Is The faith of the majority of our people in our President is undoubted and a splendid tribute to his sincerity, courage and ability. The United Volume 138 Financial Chronicle States, in common with other nations, has been a very sick patient, however, and we should not expect miracles in its recovery from depression. Many things yet remain to be done before the period of convalescence is ended. Chief among these, in my opinion, is the restoration of confidence in our currency. Sound currency of a fixed value based on gold is necessary to restore confidence, and until confidence is restored there can be no permanent recovery. It is to be hoped, too, that Congress, remembering that our partial recovery is still in a formative stage, will be guided by the voice of reason and the experience of the nation in the past and let sanity and conservatism prevail in its deliberations. It has been the constant aim of the Chamber of Commerce throughout 1933 to take leadership in supporting the policies of national, State and municipal government which it believed to be in the best interest of the public and to oppose with all its power and influence what it felt was actually harmful or potentially dangerous to the welfare of the nation, State or municipality. No action of the Chamber has attracted more attention or received greater approval from industrial leaders and men prominent in other walks of life than its leadership in the crusade against inflation and an early return to a gold standard. The special meeting held by the Chamber on Nov. 3 rallied nation-wide support to the banner of "gold standard and recovery." Throughout the year the Chamber fought waste and extravagance in the administration of Federal, State and municipal government. •It was one of the first to call attention to the menace in the growth of the pension system and to demand reform. It fought for adjustment of veterans' pensions in keeping with the lower cost of living, and the elimination from the pension rolls of veterans not injured in war service. The evils of an uncontrolled pension system have been strikingly demonstrated in New York City since the election which brought about a stampede of high-salaried office-holders to retire on substantial pensions before the organization to whom they owed their positions was shorn of its power. The Chamber continued to oppose the St. Lawrence waterway project and to urge the defeat of the treaty with Canada. The report on the proposed canalization of the St. Lawrence, prepared for the Chamber by William H. Coverdale, and investigation by committees of the Chamber disclosed facts which helped to solidify the growing opposition to the Government invest. tag upwards of $300,000,000 of the taxpayers' money in an enterprise oi admitted great value to Canada, but of very dubious worth to the United States. The Chamber supported a low tax on alcoholic beverages to eliminate bootleggers; the enactment of laws to curb racketeering, and a modification of the Federal Securities Act to relieve officers and directors of corporations of liability for acts in good faith. It opposed further reduction in the strength of the Army and Navy; it fought proposed laws to establish a mortgage moratorium, and also legislation which would have compelled employers to create unemployment reserve founds, and came out against a State sales tax. Yearly Figures of New York Clearing House Association —George W. Davison Elected President—Alex. H. Ardrey Named as Secretary—P. H.Johnston, Chairman, Clearing House Committee—Total Transactions This Year $178,487,962,367, Compared with $205,840,923,153 Last Year. At this week's annual meeting of the New York Clearing House Association (Oct. 3) George W. Davison, Chairman of the Central Hanover Bank & Trust Co., was elected President of the Association. During the past year, Mr. Davison had held the post of Chairman of the Clearing House Committee, and in that capacity he is succeeded by Percy H. Johnston, President of the Chemical Bank & Trust Co. As President of the Association, Mr. Davison succeeds Mortimer M. Buckner (Chairman of the Board of Trustees of the New York Trust Co.) who served as head of the Association for two years. The Association has a new Secretary in Alex. Ardrey, (Vice-President of the Bankers Trust Co.) who replaces as Secretary, Benjamin Strong Jr. Clarence E. Bacon has been re-elected Manager of the Association, and Edward L. Beck has again been named as Assistant Manager. Charles A. Hanna continues as Examiner. The Clearing HouseCommittee consists of the following: Percy H. Johnston, Chairman, President, Chemical Bank & Trust Co. William 0. Potter, President, Guaranty Trust Co. Albert A. Tilney, Chairman of Board. Bankers Trust Co. F. Abbot Goodhue, President, Bank of the Manhattan Co. Winthrop W. Aldrich, Chairman of Governing Board & President, Chase National Bank. The chairmen of the various other committees are: Conference Committee: Chairman, Lewis E. Pierson, Chairman of the Irving Trust Co. Nominating Committee: Chairman, Samuel A. Weldon, Vice-President, First National Bank. Committee on Admissions: Chairman, Joseph S. Maxwell. Vice-President. New York Trust Co. Arbitration Committee: Chairman, John McHugh, Chairman of Executive Committee of the Chase National Bank. The report shows that the Clearing House transactions for the year ending Sept. 30 1933, totaled $178,487,962,357, comparing with $205,840,923,153 the previous year. The total transactions since the organization of the Clearing House, 80 years ago, amount to $7,791,861,186,247. Extracts from the Manager's annual report for the year ending Sept. 30 1933 follow: The Clearing House transactions for the year have been as follows: Exchanges 8154,571,822.373.41 Balances 23,916.139,983.74 Total transactions 3178.487.962,357.15 The average daily transactions: Exchanges $510,138,027.63 Balances 78,931.155.06 Total 6589,069,182.69 49 Total transactions since organization of Clearing House (80 years): 87,160,102.741,930.63 Exchanges 631,758.444.316.71 Balances $7.791,861,186,247.34 T tal Largest exchanges on any one day during the year 31.044,985.487.92 (June 16 1933) Largest balances on any one day during the year 150.213.192.89 (Jan.4 1933) t transactions on any one day during the year LatEne 16 1933) 1,191.912.685.51 Smallest exchanges on any one day during the year 193,420.693.76 (Apr11 15 1933) Smallest balances on any one day during the year 43.783,602.40 (April 25 1933) Smallest transactions on any one day during the year 247,917.773.70 (April 15 1933) Largest day's transactions on record Oct. 31 1929: 63.853.040,114.48 Exchanges 378,201,061.08 Balances 64,231,241.175.56 Total transactions 83.853,040,114.48 Largest exchanges. Oct.31 1929 432,909.546.73 Largest balances, Oct.30 1929 Transactions of the Federal Reserve Bank of New York: 81,750.925,423.11 Debit exchanges 16,859,698,109.75 Credit exchanges 15,108.772,686.64 Credit balances The Association is now composed of five National banks,two State banks and 12 trust companies. The Federal Reserve Bank of New York. and the Clearing House City Collection Department also make exchanges at the Clearing House, making 21 institutions clearing direct. There are three banks and trust companies in the city and vicinity, not members of the Association, that make their exchanges through banks that are members, in accordance with constitutional provisions. There are 425 branches of members whose items are cleared through the exchanges, making a total of 449 banks,trust companies and branches using the facilities of the Clearing House. Percy H. Johnston, who was elected Chairman of the Clearing House Committee of the New York Clearing House Association at this week's meeting of that body, has been identified with New York banking since 1917, and has been President of the Chemical Bank & Trust Co. since 1920. His banking career began in the town of Lebanon, Ky., where he was born. Entering the Marion National Bank of Lebanon as a clerk in 1897, he became, at the age of 26, a national bank examiner. Four years later Mr. Johnston was made one of the four national bank examiners at large. After serving two years in that capacity, he was elected a Vice-President of the Citizens National Bank of Louisville, Ky., becoming First Vice-President of that institution the following year. Mr.Johnston remained in that position until coming to New York as Vice-President of the Chemical Bank & Trust Co. in 1917, succeeding to the Presidency in 1920. It is stated that Mr. Johnston is, in point of service, the senior President of the New York Clearing House banks. Public Hearing on Proposed Bank Code Set for Feb. 15 —General Johnson PostponesiScheclule of Service Charges as Not Having Formally Been Approved by Him—Bankers Express Satisfaction at Scrutiny of Program. General Hugh S. Johnson, Recovery Administrator, informed the New York City Banking Code Committee on Dec. 29 that the so-called "standard" rules of fair practices, proposing a series of service emerges onlbank customers using small accounts, could not become effective until specifically approved "by myself in•person." The proposed schedule of charges was described in detail in our issue of Dec. 30, page 4620. Members of the Code Committee of the American Bankers Association conferred with General Johnson this week and the Administrator announced at a press conference yesterday (Jan. 5) that a public hearing on the proposed service charges would be held Feb. 15, and that pending the hearing the time for placing service charge schedules in effect was extended indefinitely. In his original statement issued on Dec. 29 General Johnson said: It should be distinctly understood that the fair trade practice rules now being formulated by banking and Clearing House associations throughout the country, in pursuance of the provisions of the Bankers' Code of Fair Competition, have not yet been approved by the Administrator and are not in effect until they are so approved. Each local or State association, under the code, may submit such rules, but in every case the proposed rules will be subjected by the Administrator to careful scrutiny in the public interest. The statement that any such standard rules have been approved by the Administrator was absolutely unauthorized. They have not even been submitted to the Administrator. .1111 General Johnson also sent a telegram on Dec. 29 to Frank W. Simonds, Secretary or - Banking Code Committee in New York City, which read as follows: The statement in your standard rules that they have been approved by the National Recovery Administrator, effective Jan. 1 1934, is not correct. I have never even seen these rules until I saw them in this morning's New York papers. These will be suspended indefinitely and immediately until specifically approved by myself in person. The time for filing acceptable rules to govern fair trade practices is hereby extended 30 days. You will please immediately inform all interested parties, including everyone to whom you have sent these standard rules, to prevent those rules from going into effect in any region, 10 The Bankers' NRA Committee for Greater New York issued the following statement Dec. 29: 50 Financial Chronicle Inquiries received by the Bankers' NRA Committee for Greater New York indicate that there has been a misconception of the intent and effect of some of the provisions of the banking regulations published in this morning's papers. A careful study of the regulations will show that the vast majority of them have been general practice among the banks in Greater New York for some years and make little or no change in the relation of the average depositor with his bank. The banking regulations as published were largely the codifying of practices already in use and are largely representative of the charges now In effect in most of the banks of Greater New York. In compliance with the blanket code signed by all banks last August. wages below the minimum were increased, more people were employed, hours shortened and banking operating costs thereby increased. These regulations were adopted for the sake of uniformity and fair practice and were required by Section 8 of the bankers' code of fair competition approved Oct. 3, which states services rendered by banks shall be compensated for either by adequate balances carried or by a scale of charges; and only those depositors whose balances have been inadequate in relation to their activity and whose business has therefore been handled by the banks at a loss, are affected by the regulations. The Bankers' NRA Committee for Greater New York issued another statement on Dec. 30 explaining the position taken by New York bankers. This read as follows: The Bankers' NRA Committee for Greater New York welcomes the statement by General Johnson that the proposed rules for all sections, Including New York, will be subjected in every case by the Administrator to a careful scrutiny, and they are glad to note the extension of 30 days which they understand from press reports has been ordered in the effective date of the rules now filed. The New York bankers, as well as bankers throughout the country, In working out rules and regulations, have been proceeding as they understood it under the principles laid down in the Bankers' Code of Fair Competition approved by the NRA and signed by the President of the United States effective Oct. 16 1933. Furthermore, it was understood in arriving at these rules and regulations, which are required to be filed before Jan. 1,that they were operating under the principles of a master code furnished to all local committees, and which they were told had been approved by the NRA Administration and under the terms of which the local codes were to be set up. If the committee has been incorrectly informed, then when informed as to what course shall be pursued, New York bankers will gladly co-operate. At his press conference yesterday (Jan. 5) General Johnson said he would not prescribe any rules as to whether the bankers should bring in new proposals for the public hearing on Feb. 15 or whether they could present the same schedule of charges which the Code Authority had previously sought to establish without his consent. He was quoted as saying that the bankers could bring in "anything they want to" and that representatives of the banks themselves and of the public would have full opportunity to present their objections. George S. Silzer Forms Committee to Sue Chase National Bank and Affiliate—Samuel Untermyer Retained as Counsel for Stockholders' Group. Legal contests against the Chase National Bank and the Chase Securities Co. are planned by a protective committee being formed by stockholders under the leadership of George S. Silzer, former Governor of New Jersey, according to an announcement by Mr. Silzer on Jan. 1. Samuel Untermyer, who has agreed to become counsel for the new committee, said no suits had yet been entered. He added that the membership of James M. Beck was assured "among a large number of other important stockholders." The primary purpose of the committee was described as to represent stockholders in court litigation against the companies and their officers and directors. A statement issued by Mr. Silzer's office in Newark on Jan. 1 read as follows: The primary Purpose of this committee will be to enforce action in the courts against the companies and their officers and directors. The nature of these actions will be threefold: 1. To rescind the transactions and the issues of bank stock resulting from the purchase by the Chase Bank and other banks on the ground that the stockholders of the vendor banks were misled by misrepresentations and fraud. 2. Other suits against the bank and the securities company will be to recover into the treasury of the bank, from the officers and directors and others, moneys claimed to have been fraudulently or otherwise converted, extracted or invested contrary to law. 3. Suits against officers and directors of the securities company. This class of actions will bring up for consideration in the courts the legality of these "bank affiliates" and the right of the banks to invest their depositors' money in speculative securities in which the banks were themselves forbidden to invest. A demand has been made for a stock list and every bona fide stockholder—but only those who have owned and held their stock for one year and none who have purchased for the purpose of participating in this or other litigation—will be permitted to join. Announcement of the full personnel of the committee and of invitations to deposit will be made In due course. Attention is called to the varying character of litigations that will be undertaken by the committee on behalf of the respective depositors, dependent upon the remedies of the several stockholders, and that settlement may be effected by the committee on varying terms, dependent upon the nature of their respective claims, but in no case where the remedy invoked is not for the benefit of the corporation will settlement be made without the approval of the depositing stockholders of that class. All these conditions are to be more fully outlined in the advertised invitation to depositors and especially in the deposit agreement. The sum that will be assessed against each depositor under the agreement that may be charged by the committee out of each share of stock, for the expenses of litigation, will be limited to El per share. Each stock- Jan. 6 1934 holder will, in addition, be liable, in the event of settlement of or recovery on his claim, for a reasonable charge payable out of the recovery, subject to the approval of the committee. • Text of New York Law Empowering Bank Superintendent to Borrow on Assets of Closed Banks. A bill empowering the State Banking Superintendent to borrow on the assets of closed banks in New York State for the protection of depositors was enacted into law during the present year's session of the New York Legislature. Under the legislation the Superintendent is authorized to use the money so borrowed to facilitate liquidations for reopening of the closed banks and prevent deposits from being "frozen"for a long period. The text of the law follows: CHAPTER 94 AN ACT to amend the Banking Law to authorize the Superintendent of Banks, as liquidator in charge of the affairs of a closed banking corporation or private banker, to borrow on and pledge the assets of such corporation or private banker. Became a law March 24 1933, with the approval of the Governor. Passed. three-fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact asfollows: Section 1. Article 2 of Chapter 369 of the Laws of 1914, entitled "An Act in relation to banking corporations, and individuals, partnerships. of unincorporated associations and corporations under the supervision the Banking Department,constituting Chapter 2ofthe Consolidated Laws," as amended by Chapter 608, Section 16, of the Laws of 1930, and Chapter 399, Section 1, of the Laws of 1932, is hereby further amended by adding thereto a new section following Section 69, to be Section 69-a, to read as follows: county Section 69a. Upon an order of the Supreme Court in and for the In which the principal office ofsuch corporation or private banker is located, acknowlexecute, the Superintendent is authorized to borr6w money and to edge and deliver notes or other evidences of indebtedness therefor and to secure the repayment of the same by the mortgage, pledge, assignment. transfer in trust, or hypothecation of any or all of the property, whether real, personal or mixed, of such corporation or private banker. Money may be so borrowed for any one or more of the following purposes: (a) Facilitating liquidation; (b) Protecting or preserving the assets in his possession; (c) Declaring and paying dividends to depositors and other creditors: (d) Providing for the expenses of administration and liquidation; (e) Aiding in the reopening or reorganization of such corporation or of the business of such private bankers; of such (f) Aiding in the merger or consolidation of any one or more corporations; or private (5) Aiding in the sale of ail of the assets of any such corporation banker. The Superintendent with the aforesaid order of the Supreme Court shall have power to take any and all other action necessary and proper to consummate any such loans and to provide for the repayment thereof. The application for an order of the Supreme Court pursuant to this section shall be made upon an order to show cause which shall provide that notice thereof be given to the depositors, creditors and stockholders of such corporation or the depositors and creditors of such private banker by publication once in each week for two consecutive weeks in a newspaper of general circulation in the county in which is located the principal office of such corporation or private banker. Such order to show cause shall also be served upon such corporation or private banker in such manner as the Court in such order to show cause may direct. The hearing upon such application shall be held not less than ten days after the first publication of such notice. The Superintendent of Banks shall be under no obligation personally or in his official capacity to repay any loan made pursuant to this section. The obligation for the repayment of any such loan shall be solely the obligation of the corporation or private banker receiving the benefit ofsuch loan. Section 2. This Act shall take effect immediately. Text of Law Permitting Savings and Loan Associations in New York State to Become Members of Federal Home Loan Bank. We are giving herewith the text of the law, passed by the New York State Legislature at its recent session, and signed March 13 by Governor Lehman, making it possible for savings and loan associations to become members of the Federal Home Loan Bank: CHAPTER 54. AN ACT to amend the banking law, in relation to permitting savings and loan associations to become members of a Federal Home Loan Bank. Became a law March 13 1933, with the approval of the Governor. Passed, throe fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact as follows: Section 1. Section 378 of chapter 369 of the laws of 1914, entitled "An Act in relation to banking corporations, and individuals, partnerships, unincorporated associations and corporations under the supervision of the Banking Department, constituting chapter 2 of the consolidated laws," as last amended by chapter 34 of the laws of 1923. is hereby amended by adding thereto a new subdivision, to be subdivision 5-a, to read as follows: 5-a. To purchase and hold, for the purpose of becoming a member of a Federal Home Loan Bank,so much ofthe capital stock thereofas will qualify It for membership in such Federal Homo Loan Bank, pursuant to an Act of Congress. approved July 22 1932, entitled the "Federal Home Loan Dank Act," and any amendments thereof or supplements thereto that raspy hereafter be enacted; to become a member ofsuch Federal Home Loan Valk;to purchase and hold stock ofsuch bank in addition to such amount as may be required to qualify as a member;to purchase and hold the bonds, debentures or other securities of such bank; to borrow from such bank on the note of the association or on such other evidence of indebtedness of the association as may be required by such bank,for such period of time and upon such terms and conditions as may be granted road prescribed by such bank and approved by resolution of the board of directors of any such association, adopted by the affirmative vote of a majority of such board taken by ayes and nays and recorded in the minutes of such board; to Volume 138 Financial Chronicle Pledge, assign or transfer bonds and mortgages and other securities owned by such association, together with the shares, if any, and any other personal property pledged or held as collateral therefor; to comply with any condition of such membership or such credit and to have and exercise all powers, rights and privileges conferred upon any such member or borrower by the Federal Home Loan Bank Act as now existent or hereafter amended or supplemented. Sec. 2. Subdivision 4 of section 384 of such chapter, as last amended by chapter 256 of the laws of 1928, is hereby amended by adding at the end thereof a new paragraph, to be paragraph f, to read as follows: (f) In bonds, debentures or other obligations of a Federal Home Loan Bank, created pursuant to the Federal Home Loan Bank Act, approved July 22 1932. Sec. 3. Section 384 of such chapter is hereby amended by adding thereto a new subdivision, to be subdivision 5, to read as follows: 5. In the capital stock of a Federal Home Loan Bank in such amount as may be required to comply with any condition of membership therein or credit therefrom. Sec. 4. Subdivision 2 of section 388 of such chapter, as last amended by chapter 357 of the laws of 1922, is hereby amended to read as follows: 2. The aggregate of the money borrowed by it and the prior or underlying mortgages, liens or incumbrances upon the real estate upon which it holds mortgages or to which it has taken title, does not exceed 20% of its accumulated capital, or $2,000, if its accumulated capital does not exceed $10,000. This restriction shall not apply to money obtained from the Land Bank of the State of New York through the issue of bonds on its account and secured by the assignment of bonds and mortgages or other securities by such association, nor to money borrowed from a Federal Home Loan Bank for a period longer than one year. Whenever any such association shall have pledged and assigned to the Land Bank of the State of New York, in accordance with the provisions of sections 426 of this chapter bonds and mortgages having a present value, after all offsets and credits that would be allowed in case of their payment, of 50% or more of the aggregate present value, ascertained in like manner, of all the bonds and mortgages owned by such association, the power of such association to borrow money shall thereafter cease until the present value of the bonds and mortgages so pledged and assigned, as so ascertained, shall be less than 50% of the aggregate present value of all of its bonds and mortgages as so ascertained, and whenever the present value of the bonds and mortgages so pledged and assigned, as so ascertained, shall be less than 50% of the aggregate present value of all its bonds and mortgages, as so ascertained, but shall equal or exceed 25% ofsuch aggregate present value of all its bonds and mortgages, such association shall not thereafter have power to borrow any sum of money, if, as the result of such borrowing, the aggregate of the money borrowed by it and the prior or underlying mortgages, liens or incumbrances upon the real estate upon which it holds mortgages or to which it has taken title, exclusive of money obtained from such land bank, will exceed 10% of its accumulated capital. Any such association, however, may accept from its members advance payments of dues upon its installment shares and advance payments of interest and premium upon its loans; but such payments shall not be accepted in advance for a longer period than one year, nor shall the interest paid upon such advance payments exceed the rate of 6% per annum. Sec. 5. This Act shall take effect immediately. Text of Law Authorizing Banks and Trust Companies in New York State to Issue Capital Notes or Debentures. A law authorizing the issuance by banks, trust companies and industrial banking companies of capital notes or debentures upon authorization of the State Superintendent of Banks, was enacted into law as follows by the New York Legislature: CHAPTER 230. AN ACT to amend the banking law, in relation to the power of banks, trust companies and industrial banking companies to issue capital notes or debentures upon authorization therefor by the Superintendent of Banks. Became a law April 18 1933, with the approval of the Governor. Passed, three-fifths being present. The People of the State of New York, represented in Senate and Assembly: Section 1. Section 106 of Chapter 369 of the laws of 1914, entitled "An Act in relation to banking corporations, and individuals. partnerships, unincorporated associations and corporations under the supervision of the banking department, constituting Chapter 2 of the consolidated laws," subdivision 5 thereof having been last amended by Chapter 236 of the laws of 1932 and subdivision 8 thereof having been added by Chapter 159 of the laws of 1919 and amended by Chapter 331 of the laws of 1926, is hereby amended by adding thereto a new subdivision, to be subdivision 9, to read as follows: 9. To issue by its board of directors capital notes or debentures when so specifically authorized by the Superintendent of Banks. Section 2. Section 185 of such chapter is hereby amended by adding thereto a new subdivision, to be subdivision 13. to read as follows: 13. To issue by its board of directors capital notes or debentures when so specifically authorized by the Superintendent of Banks. Section 3. Section 292 of such chapter, as added by Chapter 490 of the laws of 1931, is hereby amended by adding thereto a new subdivision, to be subdivision 8, to read as follows: 8. To issue by its board of directors capital notes or debentures when so specifically authorized by the Superintendent of Banks. Section 4. This Act shall take effect immediately. Text of New York Law Providing for Course of Procedure for Resumption of Bank or Trust Company of Which Bank Superintendent Has Taken Possession. One of the laws passed early this year by the New York State Legislature embodied new regulations for the resumption of business by a bank or trust company of which the State Superintendent of Banks had taken possession. The text of this law follows: CHAPTER 21. AN ACT to amend the banking law, in reference to the resumption of business by a bank or trust company of which the Superintendent has taken possession pursuant to section 57 of the banking law. Became a law Feb. 21 1933, with the approval of the Governor. Passed, three-fifths being present' 51 The People of the State of New York, represented in Senate and Assembly, do enact as follows: Section 1. Section 61 of chapter 369 of the laws of 1914, entitled "An act in relation to banking corporations, and individuals, partnerships, unincorporated associations and corporations under the supervision of the banking department, constituting chapter 2 of the consolidated laws." as amended by chapter 399 of the laws of 1932, is hereby amended to read as follows: Section 61. Superintendent may permit resumption of business. I. The Superintendent may, in his discretion and upon such conditions as may be approved by him, surrender possession for the purpose of permitting such corporation or banker to resume business; but the Superintendent shall not authorize any reduction of capital stock or capital as one of the terms.of such resumption. 2. In the case of a bank or trust company, the Superintendent may, in his discretion, if he deems it in the interest of the depositors and others interested in its affairs, surrender possession and permit it to be reopened and to resume its relationships and the conduct of its business upon such terms and conditions as may be agreed upon between him and its board of directors, subject to the following: (o) Without the Superintendent's written permission previously obtained, such bank or trust company may not pay to any depositor at the time it so reopens more than such depositor's proportion of 80% of the value, as determined by the Superintendent, ofsuch of its assets as he may determine to be sound and may list for the purpose of permitting it to make such payments; (b) The proportion of the accounts representing deposits subject to withdrawal upon such reopening and accounts representing deposits made after such reopening shall be entitled to payment in full, together with interest thereon,if any,prior to any payment of or on account of the remaining proportion of deposits at the time of such reopening, except that payments of or on account of such remaining proportion of deposits, with interest thereon as hereinafter provided, may be made at any time, with the approval of the Superintendent, as follows: Whenever the Superintendent shall determine that the excess of sound assets of such bank or trust company over the deposits then subject to withdrawal, including both deposits subject to withdrawal at the time of such reopening and deposits made subsequently thereto shall be greater than the excess of sound assets as determined by him and listed as aforesaid over deposits subject to withdrawal at the time of such reopening, the amount of the increase may be paid pro rata to the owners of the accounts representing such remaining proportion of deposits, first on account of principal thereof and after the payment of such principal in full then on account of the interest thereon; (c) Such bank or trust company shall immediately issue to its depositors non-negotiable transferable certificates, in form satisfactory to the Superintendent, representing the proportion of their accounts not subject to withdrawal at the time of such reopening, and such certificates shall bear interest at the rate of not more than 3% per annum; (d) No dividend shall be paid on the stock ofsuch bank or trust company while any of said tertificates are outstanding unless, with the previous written consent of the Superintendent to the payment thereof as aforesaid, it shall set aside and maintain a sum sufficient for the payment of all such outstanding certificates, shall publish once a week for two calendar weeks in a newspaper in the county in which it has its principal place of business a notice to the effect that it will pay all such certificates upon due presentation for payment, and shall pay all such certificates which may be so presented: (e) Within 60 days after a bank or trust company has resumed business as provided in this subdivision of this section, there shall be called in accordance with its by-laws or as the Superintendent may direct a meeting of its stockholders and holders of such certificates, who shall elect directors who shall succeed the former directors. The board of directors so elected shall elect officers who shall succeed the former officers. Former directors and officers shall be eligible at such elections. Each registered holder of such certificates shall be entitled to vote as though the unpaid principal amount of such certificates represented stock of the same par value; (f) When any bank or trust company resumes business as provided in this subdivision of this section, the authorized capital stock thereof shall be deemed from time to time to exceed its outstanding stock by an amount equal to the book value of the then outstanding certificates issued to depositors as provided in such subdivision, as such value is shown by the last preceding official examination of the Superintendent, and such additional authorized capital stock shall be available for issuance to the holders of said certificates as follows: The holders of said certificates shall have the option, at any time, upon the surrender thereof, duly endorsed, to such bank or trust company to receive therefor stock of such bank or trust company at the book value thereof as shown by the last preceding official examination of the Superintendent, but for fractions of shares such bank or trust company may issue non-voting, non-dividend bearing scrip certificates exchangeable, when combined with other similar scrip certificates, for stock certificates or other similar scrip certificates, on such terms and conditions as the Superintendent may approve. The Superintendent shall make and file in his office a certificate, in such form as he may determine, of every such change of authorized capital stock of such bank or trust company and he shall file a certified copy or duplicate original thereof in the office of the clerk of the county wherein the bank or trust company is located. (g) If and when such certificates are paid in full, principal and interest, or are exchanged for stock,or if and when the Superintendent may determine that the condition of such bank or trust compan) is such that it may safely continue its business in the ordinary course, he may, in his discretion and upon such conditions as may be approved by him, permit it to continue business as though he had never taken possession thereof; (h) Nothing in this subdivision of this seation shall be deemed to interfere with the power of the Superintendent to retake possession of the business and property of such bank or trust company and liquidate the same as elsewhere provided for in this chapter, but the rights of depositors as to priorities in payment hereinabove provided for in this subdivision of this section shall not be affected thereby. Section 2. This act shall take effect immediately. Text of New York State Sales Tax Law Affecting All Commoditie* Except Food Which Became Effective May 1. The following is the complete text of the 1% retail sales tax law passed by the State Legislature at its recent session and signed by Governor Lehman on April 19(V.136, p.3010) which went into effect on May 1, imposing a tax of 1% until June 30 1934 upon the receipts from the sale of all tangible personal property, except food, motor vehicle fuel and public utility services: 52 Financial Chronicle CHAPTER 281. AN ACT to amend the tax law, by imposing a license tax upon receipts from the sale of tangible personal property at retail during the period commencing May first, nineteen hundred thirty-three, and ending June thirtieth, nineteen hundred thirty-four,for the privilege of selling such property at retail in this State, and making an appropriation for the department of taxation and finance Became a law April 19 1933, with the approval of the Governor. Passed, on message of necessity, three-fifths being present The People of the State of New York, represented in Senate and Assembly, do enact as follows: Section 1. Chapter 62 of the laws of 1909, entitled "An Act in relation to taxation, constituting Chapter 60 of the Consolidated Laws," is hereby amended by adding thereto a new article, to follow article 16, to be numbered 17, and to read as follows: ARTICLE 17. Tax on Retail Sales of Tangible Personal Property. Sec. 390. Definitions. Sec. 391. Imposition of tax. Sec. 392. Exemptions, Sec. 393. Records to be kept by persons selling tangible personal property at retail. Sec. 394. Returns. Sec. 395. Payment of tax. Sec. 396. Licenses; suspension and restoration thereof. Sec. 397. Determination of tax by the Tax Commission. Sec. 398. Proceedings to recover tax. Sec. 399. Notices and limitation of time. Sec. 400. Penalties. Sec. 401. Refunds. Sec. 402. General powers of the Tax Commission. Sec. 403. Returns to be secret. Sec. 404. Disposition of revenues. Sec. 390. Definitions. When used in this article: (a) The word "person" includes an individual, copartnership, society, association, joint stock company, corporation and any combination of individuals; (b) The term "receipts" means the total amount of the sale price of tangible personal property sold at retail in this State, valued in money, whether received in money or otherwise, including all receipts, cash, credits and property of any kind or nature, and also any amount for which credit is allowed by the seller to the purchaser, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service cost, interest or discount paid, or any other expense whatsoever, from the sale of tangible personal property at retail in this State, except receipts from the sale for human consumption of the food products hereinafter in Schedule A specified, receipts from the sale of motor fuels upon which a tax is imposed pursuant to Article 12-a of this Chapter, receipts from the sale of gas, steam and water when delivered tt consumers through mains and pipes, receipts from the sale of electricity, receipts from sales by or to the State, municipalities and any other political subdivisions thereof and receipts upon which this State is. by virtue of the provisions of the Constitution of the United States or otherwise, without power to impose a tax. SCHEDULE A. Cereals and cereal products; Milk and milk products; Meat and meat products; Fish and fish products; Eggs, and egg products; Vegetables and vegetable products; Fruits, spices and salt; Sugar and sugar products, other than candy and confectionery; Coffee and coffee substitutes; tea; cocoa and cocoa products, other than candy and confectionery. The foregoing shall not include spirituous or malt liquors; soft drinks; and sodas and beverages such as are ordinarily dispensed at bars and soda fountains or in connection therewith, other than coffee, tea and cocoa; (c) The word "sale" means any transfer, exchange or barter, conditional or otherwise,in any manner or by any means whatsoever for a consideration; (d) The term "tangible personal property" means corporeal personal property; (e) A retail sale or sale at retail means a sale to a consumer or to any person for any purpose other than for resale in the form of tangible personal property. Sec. 391. Imposition of Tax. For the privilege ofselling tangible personal property at retail in this State during the period commencing May 1. 1933, and ending June 30, 1934, every person shall pay a tax of one per centum upon the receipts therefrom. The burden of proving that a sale of tangible personal property was not a sale at retail shall be upon the person who made it, unless such person shall have taken from the purchaser a certificate signed by and bearing the name and address of the purchaser to the effect that the property was purchased for resale. For the purpose of the proper administration of this article and to prevent evasion of the tax hereby imposed it shall be presumed that all receipts are subject to the tax until the contrary is established. The tax shall be paid at the time and in the manner hereinafter provided and shall be in addition to any and all other taxes. In any case where tangible personal property is sold at retail under a contract made prior to May 1, 1933, which specifies and fixes the sale price and such sale is taxable under this article, the seller may add the tax imposed by this article to the sale price and collect it from the vendee. No person engaged in the business of selling tangible personal property at retail shall advertise or hold out to the public, in any manner directly or indirectly, that the tax imposed by this article is not considered as an element in the price to the consumer. The Tax Commission may provide by regulation that receipts from sales on the instalment plan under conditional contracts of sale may be reported as of the dates when the payments become due, in which event such receipts shall become subject to the tax at such times and not at the time the contract of sale was entered into. It shall provide by regulation for the exclusion from receipts of amounts representing sales where the contract of sale has been cancelled and/or the goods returned or, in case the tax has been paid upon such receipts, for a credit of the amount of the tax against future tax liability of the seller. Sec. 392. Exemptions. If a person has receipts of less than $1,250 for any quarter year period for which a return is required to be made,the same shall be exempt from the tax imposed by this article. If a person has receipts of more than $1,250 and less than 52,500 for any quarter year period for which a return is required to be made, the amount of the exemption shall be determined by deducting from the sum of $1,250 the difference between the amount of such receipts and the sum of $1,250, except in no such case shall the tax be less than $1.50. If a person has receipts exceeding $2,500 for any quarter year period for which a return is required to be made, Ian. 6 1934 no portion thereof shall be exempt from the tax imposed by this article. In case the period of return is less than a quarter year, the exemption herein provided shall be prorated. Sec. 393. Records to be kept by persons selling tangible personal property at retail. Every person selling tangible personal property at retail in this State shall keep such records of receipts and in such form as the Tax Commission may by regulation require. Such records shall be offered for inspection and examination at any time upon demand by the Tax Commission or its duly authorized agent or employee and shall be preserved for a period of three years, except that the Tax Commission may consent to their destruction within that period or may require that they be kept longer. Sec. 394. Returns, Every person selling tangible personal property at retail in this State shall file with the Tax Commission a return of his receipts for the two months ending June 30, and for the three months ending Sept. 30 and Dec. 311933, and for the three months ending March 31 and June 30 1934, except that if a person keeps his books and records on the basis of a fiscal year other than the calendar year, or for other sufficient reason, the Tax Commission may permit returns to be made by quarter year periods of his fiscal years so as to include all receipts during the period from May 1 1933 to June 30 1934, inclusive; provided, however, that the Tax Commission if it deems it necessary in order to insure the payment of the tax Imposed by this article may require returns of receipts to be made for other than quarter year periods. Returns shall be filed within 30 days from the expiration of the period covered thereby, except that the Tax Commission, if it deems it necessary to insure the payment of the tax, may require that they be sooner filed. The forms of returns shall be prescribed by the Tax Commission and shall contain such information as it may deem necessary for the proper administration of this article. Unless demanded by the Tax Commission, no person need file a return if his receipts for any quarter year period shall not exceed 51,250. • Sec. 395. Payment of tax. At the time of filing a return of receipts each person shall pay to the Tax Commission the tax imposed by this article for the period covered by such return. All tax for the period for which a return is required to be filed shall be due and payable on the date limited for the filing of the return for such period, without regard to whether a return is filed or whether the return which is filed correctly shows the amount of tax due. If any person shall make sales of tangible personal property at retail while his license is suspended, the tax prescribed by this article shall nevertheless be imposed and payable with respect to such sales, but the payment of such tax shall not effect relief from any of the penalties prescribed by this article for selling while a license is suspended. The Tax Commission may require any person subject to the tax imposed by this article to file with it a bond,issued by a surety company authorized to transact business in this State and approved by the Superintendent of Insurance as to solvency and responsibility, in such amount as the Tax Commission may fix, to secure the payment of any tax and/or penalties due or which may become due from such person. In lieu of such bond, securities approved by the Tax Commission, in such amount as it may prescribe, may be deposited with it, which securities shall be kept in the Joint custody of the Comptroller and the Commissioner of Taxation and Finance and may be sold by the Tax Commission at public or private sale. without notice to the depositor thereof, if It becomes necessary so to do in order to recover any tax and/or penalties due. Upon any such sale. the surplus, if any, above the amounts due under this article shall be returned to the person who deposited the securities. See. 396. Licenses; suspension and restoration thereof. Every person who makes a sale of tangible personal property at retail in this State shall be deemed to have procured from the Tax Commission a license so to do. The license to sell tangible personal property at retail provided for in this article shall be in addition to any and all other licenses which may be required by law. A license shall be suspended in case a return or corrected return is not filed as in this article provided or in case any tax shown by any return, or penalty thereon, is not paid when due or in case the tax under any assessment made by the Tax Commission, or penalty thereon, shall not be paid within 30 days from the giving of notice of such assessment, unless proceedings instituted to contest the tax are pending, or the Tax Commission shall have granted an extension of time for the filing of the return or the payment of the tax, but any such extension shall not have the effect of changing the due date of the tax. The filing of delinquent returns and/or the payment of delinquent taxes and penalties and/or the filing of the required bond or the deposit of securities as provided in Section 395 of this article shall have the effect of restoring the license. The license to sell tangible personal property at retail in this State of any person failing to file a bond or deposit securities when required by the Tax Commission Pursuant to the provisions of the preceding section shall be suspended until the bond is filed or deposit made. The Tax Commission shall have power to suspend the license of any person who shall violate or fail to comply with any provision of this article or any rule or regulation adopted by it pursuant to this article and shall also have power to restore licenses after such suspension. Sec. 397. Determination of tax by the Tax Commission. If a return required by this article is not filed, or if a return when filed is Incorrect or Insufficient and the maker fails to file a corrected or sufficient return within 20 days after the same is required by notice from the Tax Commission, such Commission shall determine the amount of tax due from such information as it may be able to obtain and, if necessary, may estimate the tax on the basis of external indices, such as number of employees of the person concerned, rentals paid by him, his stock on hand /and for other factors. The Tax Commission shall give notice of such determination to the person liable for the tax. Such determination shall finally and irrevocably fix the tax unless the person against whom it is assessed shall within 30 days after the giving of notice ofsuch determination apply to the Tax Commission for a hearing or unless the Tax Commission of its own motion shall reduce the same. At such hearing evidence may be offered to support such determination or to prove that it is incorrect. After such hearing the Tax Commission shall give notice of its decision to the person liable for the tax. The decision of the Tax Commission may be reviewed by certiorari if application is made therefor within 30 days after the giving of notice thereof. Whenever under this article an order of certiorari is permitted it shall not be granted unless the amount of any tax sought to be reviewed, with penalties thereon, if any, shall be first deposited with the Tax Commission and an undertaking filed with the Tax Commission,in such amount and with such sureties as a justice of the supreme court shall approve, to the effect that if such order be dismissed or the tax confirmed the applicant for the writ will pay all costs and charges which may accrue in the prosecution of the certiorari proceeding, or, at the option of the applicant, such undertaking may be in a sum sufficient to cover the tax, penalties, costa and charges aforesaid, in which event the applicant shall not be required to pay such tax and penalties as a condition precedent to the granting of such order. Sec. 398. Proceedings to recover tax. Whenever any person shall fail to pay any tax and /for penalty imposed by this article as in this article provided. the Attorney-General shall, upon the request of the Tax Commission, bring an action to enforce payment of the same. The proceeds of a judgment obtained in such action shall be paid to the Tax Commission. Volume 138 Financial Chronicle As an additional or alternate remedy, the Tax Commission may issue a warrant under its official seal, directed to the sheriff of any county, commanding him to levy upon and sell the real and personal property of the person from whom the tax is due, which may be found within his county, for the payment of the amount thereof, with any penalties, and the cost of executing the warrant, and to return such warrant to the Tax Commission and to pay to it the money collected by virtue thereof within 60 days after the receipt of such warrant. The sheriff shall within five days after the receipt of the warrant file with the clerk of his county a copy thereof, and thereupon such clerk shall enter in the judgment docket the name of the person mentioned in the warrant and the amount of the tax and penalties for which the warrant is issued and the date when such copy is filed. Thereupon the amount of such warrant so docketed shall become a lien upon the title to and interest in real property and chattels real of the person against whom the warrant is issued in the same manner as a judgment duly docketed in the office of such clerk. The sheriff shall then proceed upon the warrant in the same manner, and with like effect, as that provided by law in respect to executions issued against property upon judgments of a court of record, and for his services in executing the warrant he shall be entitled to the same fees, which he may collect in the same manner. In the discretion of the Tax Commission a warrant of like terms, force and effect may be issued and directed to any officer or employee of the Department of Taxation and Finance, and in the execution thereof such officer or employee shall have all the powers conferred by law upon sheriffs, but he shall be entitled to no fee or compensation in excess of the actual expenses paid in the performance of such duty. If a warrant be returned not satisfied in full, the Tax Commission shall have the same remedies to enforce the claim for taxes as if the people of the State had recovered judgment for the amount of the tax. Sec.399. Notices and limitation of time. Any notice authorized or required under the provisions of this article may be given by mailing the same to the person for whom it is intended in a post-paid envelope addressed to such person at the address given in the last return filed by him pursuant to the provisions of this article or if no return has been filed then to such address as may be obtainable. The mailing of such notice shall be presumptive evidence of the receipt of the same by the person to whom addressed. Any period of time which is determined according to the provisions of this article by the giving of notice shall commence to run from the date of mailing of such notice. The provisions of the civil practice Act relative to the limitation of time for the enforcement of a civil remedy shall not apply to any proceeding or action taken to levy, appraise, assess, determine or enforce the collection of any tax or penalty provided by this article. Sec. 400. Penalties. Any person failing to file a return or corrected return or to pay any tax within the time required by this article shall be subject to a penalty of five per centum of the amount of tax due, plus one per centum of such tax for each month of delay or fraction thereof, excepting the first month after such return was required to be filed or such tax became due; but the Tax Commission, if satisfied that the delay was excusable, may remit all or any part of such penalty. Such penalty shall be paid to the Tax Commission and disposed of in the same manner as other receipts under this article. Unpaid penalties may be enforced in the same manner as the tax imposed by this article. Any person who shall sell tangible personal property at retail in this State after his license shall have been suspended, and the officers of any corporation which shall so sell, shall be guilty of a misdemeanor, and punishment for which shall be a fine of not more than $1,000 or imprisonment for not more than one year, or both such fine and imprisonment. Any person and any officer of a corporation filing or causing to be filed any return, certificate, affidavit or statement required or authorized by this article which is wilfully false shall be guilty of a felony. The certificate of the Tax Commission to the effect that a tax has not been paid, that a return has not been filed, or that information has not been supplied pursuant to the provisions of this article shall be prima facie evidence thereof. Sec. 401. Refunds. If within one year from the payment of any tax or penalty the payer thereof shall make application for a refund thereof and the Tax Commission or the court shall determine that such tax or penalty, or any portion thereof, was erroneously or illegally collected, the Tax Commission, with the approval of the Comptroller, shall refund the amount so determined, without interest, out of funds collected under this article in the custody of the Comptroller. For like cause and within the same period a refund may be so made on the initiative of the Tax Commission. However, no refund shall be made of a tax or penalty paid pursuant to a determination of the Tax Commission as provided in Section 397 of this article unless the Tax Commission, after a hearing as in said section provided or of its own motion, shall have reduced the tax or penalty or it shall have been established in a certiorari proceeding that such determination was erroneous or illegal, in which event a refund shall be made as above provided upon the termination of such proceeding. An application for a refund made as herein provided shall be deemed an application for a revision of any tax or penalty complained of and the Tax Commission may receive additional evidence with respect thereto. After making its determination the Tax Commission shall give notice thereof to the person interested and he shall be entitled to a certiorari order to review such determination. provided application therefor is made within 30 days after the giving of such notice. Sec. 402. General powers of the Tax Commission. The powers conferred upon the Tax Commission by Sections 171 and 171-b of this Chapter shall, so far as applicable, be exercisable with respect to the provisions of this article. Sec. 403. Returns to be secret. 1. Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the Tax Commission, any tax commissioner, officer or employee of the Department of Taxation and Finance to divulge or make known in any manner the receipts or any other information relating to the business of a taxpayer contained in any return required under this article. The officers charged with the custody of such returns shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the State or the Tax Commission in an action or proceeding under the provisions of this chapter, or on behalf of any party to any action or proceeding under the provisions of this article when the returns or facts shown thereby are directly involved in such action or proceeding, in either of which events the court may require the production of, and may admit in evidence, so much of said returns or of the facts shown thereby, as are pertinent to the action or proceeding and no more. Nothing herein shall be construed to prohibit the delivery to a taxpayer or his duly authorized representative of a certified copy of any return filed in connection with his tax nor to prohibit the publication of statistics so classified as to prevent the identification of particular returns and the items thereof, or the inspection by the Attorney-General or other legal representatives of the State of the return of any taxpayer who shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding has been instituted for the collection of a tax or 53 penalty. Returns shall be preserved for three years and thereafter until the Tax Commission orders them to be destroyed. 2. Any offense against subdivision 1 of this Section shall be punished by a fine not exceeding $1,000 or by imprisonment not exceeding one year. or both, at the discretion of the court, and if the offender be an officer or employee of the State he shall be dismissed from office and be incapable of holding any public office in this State for a period offive years thereafter. Sec. 404. Disposition of revenues. All taxes and other moneys received by the Tax Commission under this article shall be deposited with such responsible banks, banking houses or trust companies as may be designated by the Comptroller, and to the credit of the Comptroller who shall require adequate security from all such depositories. The Comptroller shall on or before the tenth day of each month pay to the Commissioner of Taxation and Finance the balance of such taxes remaining in his hands at the close of business on the last day of the previous month. All taxes and other moneys collected under this article when paid into the Treasury of the State shall become a part of the general fund of the State. Sec. 2. The sum of $400,000, or so much thereof as may be necessarY, is hereby appropriated to the Department of Taxation and Finance for its expenses, including personal service and maintenance, in carrying out the provisions of this Act, payable from the State Treasury, on audit and warrant of the Comptroller, on certification, as provided for in Section 12-a of the State finance law. Sec. 3. This Act shall take effect immediately. State of New York, Iss: Department of State. I have compared the preceding with the original law on file in this office. and do hereby certify that the same is a correct transcript therefrom and of the whole of said original law. EDWARD J. FLYNN. Secretary of State. Federal Reserve Board Acts to Abolish Use of Federal Reserve Transfer Drafts. The following circular was issued under date of Dec. 29 by the Federal Reserve Bank of New York: FEDERAL RESERVE BANK OF NEW YORK. Circular No. 1325, Dec. 29 1933. Reference to Circulars No.67,dated May 31, 1917, and No. 115, dated Aug. 22 1918. USE OF FEDERAL RESERVE TRANSFER DRAFTS ABOLISHED EFFECTIVE JAN. 1 1934. To all Member Banks in the Second Federal Reserve District: The Federal Reserve Board has advised us that the use of Federal Reserve Transfer drafts will be abolished, effective Jan. 1 1934. The use of Federal Reserve Exchange drafts will be continued with no change in form or procedure. Further information respecting the use of Federal Reserve Exchange drafts will be furnished by this Bank upon request. GEORGE L. HARRISON, Governor. $100,990,000 in Bids Accepted to Offering of $100,000,000 or Thereabouts of 91-Day Treasury Bills Dated Jan. 3 1934—Correction. Of tenders totaling $384,619,000 received to the offering of $100,000,000 or thereabouts of 91-day Treasury bills dated Jan. 3 1934, and maturing April 4 1934, $100,990,000 were accepted, instead of $100,000,990, as erroneously reported in our issue of Dec. 30, page 4622. New Offering of 91-Day Treasury Bills to Amount of $100,000,000 or Thereabouts—To Be Dated Jan. 10 1934. Announcement of a new offering of $100,000,000 or thereabouts of 91-day Treasury bills was made on Jan. 3, by Henry Morgenthau, Jr., Secretary of the Treasury. The bills will be dated Jan. 10 and will mature April 11 1934. On the maturity date the face amount will be payable without interest. The bills will be sold on a discount basis to the highest bidders and will be issued in bearer form only, and in amounts or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders to the offering, which will be used in part to redeem an issue of $75,020,000 maturing On Jan. 10, will be received at the Federal Reserve Banks,or the branches thereof, up to 2 p. m., Eastern Standard time, Monday, Jan. 8. No tenders will be received at the Treasury Department, Washington. Secretary Morgenthau's announcement follows in part: No tender for an amount less than $1,000 will be considered. Each tender must be in multiples of $1,000. The price offered must be expressed on the basis of 100, with not more than three decimal places, e. g., 99.125. Fractions must not be used. Tenders will be accepted without cash deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a deposit of 10% of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour for receipt of tenders on Jan. 8 1934. all tenders received at the Federal Reserve Banks or branches thereof, up to the closing hour, will be opened and public announcement of the acceptable prices will follow as soon as possible thereafter, probably on the following morning. The Secretary of the Treasury expressly reserves the right to reject any or all tenders or parrs of tenders, and to allot less than the amount applied for, and his action in any such respect shall be final. Those submitting tenders will be advised of the acceptance or rejection thereof. Payment at the price offered for Treasury bills allotted must be made at the Federal Reserve Banks in cash or other immediately available funds on Jan. 10 1934. The Treasury bills will be exempt, as to principal and interest, and any gain from the sale or other disposition thereof will also be exempt, from all taxation, except estate and inheritance taxes. No loss from the sale or other disposition of the Treasury bills shall be allowed as a deduction, 54 Financial Chronicle or otherwise recognized, for the purposes of any tax now or hereafter imposed by the United States or any of its possessions. Ian. 6 1934 for recording and getting them to the Government printing office were swamped. Associated Press accounts Jan. 3 from Washington continued: Henry Morgenthau Jr. Takes Oath as Secretary of Treasury, Following Formal Resignation of William There were upward of 200 bills and resolutions submitted, ranging from H. Woodin—No Change in Treasury Policy Conlegislation to authorize a hi-metallic currency to proposed tripling of tariffs templated. on goods from countries behind in their war-debt payments. Henry Morgenthau Jr., Acting Secretary of the Treasury, Another flood of proposals was looked for to-morrow. At the special was sworn in as Secretary on Jan. 1, following the resig- session last Spring more than 6,000 were introduced. The Seventy-second nation of William H. Woodin because of protracted illness. Congress saw more than 14,000, but in some previous Congresses the total was above 30,000. Only a fraction of the legislative offerings ever become This marked the first major change in the Roosevelt Cabinet, laws. Among the first day's bills was one by Representative McKeown to but it had been generally anticipated ever since Mr. Mora mortgage holder who has refused to accept bonds of the Home genthau assumed charge of the Treasury on Nov. 15 upon prevent Owners' Loan Corporation or Farm Loan bonds for his mortgage from Mr. Woodin's departure from Washington to Arizona in demanding payment or taking possession of the property. Chairman Dickstein of the Immigration Committee, proposed a special order to obtain treatment for a throat ailment. Correto investigate Nazi activities in the United States, and asked spondence made public at the White House showed that the acommittee $25,000 appropriation. formal resignation of Mr. Woodin was submitted to the President Roosevelt's annual message to Congress, dePresident on Dec. 13 and was accepted Dec.20 to be effective livered at the opening session, is given elsewhere in these Dec. 31. Mr. Morgenthau took the oath of office in Mr. columns, as is also his budget message, presented to Congress Roosevelt's presence. on Jan. 4. Routine work marked the first day's session, The correspondence between the President and Mr. which was brought under way at noon. To quote from a Woodin contained cordial terms similar to those used in the Washington account Jan. 3 to the New York "Times": letters exchanged when the Secretary first submitted his The House referred to a committee the election contest between Mrs. resignation several weeks ago. At that time the President Bolivar E. Kemp and J. Y. Sanders, Jr., of Louisiana, and adjourned at persuaded him to take an indefinite leave of absence instead. 2:40 p. m., until noon to-morrow. The Senate swore in new members and adjourned at 2:10 until noon toMr. Morgenthau said that there would be no change in morrow. the Treasury policy under his administration. He also The Ways and Means Committee introduced a liquor taxation bill. The House Appropriations Committee worked on routine annual supply announced that Earle Bailie of New York, now his special assistant, who came to the Treasury from J. & W. Seligman bills. The Senate Banking and Currency Committee resumed its investiga& Co., would not be his Under-Secretary, and added that tion of the Detroit banking situation. Mr. Bailie had arranged to serve in Washington only a From the same source we quote the following from Washshort time, perhaps not more than two months longer. ington, Jan 4: Mr. Woodin's letter of resignation reads as follows: President Roosevelt transmitted his annual budget message to Congress. Tucson, Ariz., Dec. 13 1933. Dear Governor: It is with great regret that I am compelled to tender you my resignation as Secretary of the Treasury, to take effect at your convenience any time before Jan. 1. The state of my health will not permit me to remain in this position. I cannot express what a wrench it is to me to leave your official family and you must know how proud and happy I have been to have served you. With great admiration and affection, Faithfully yours, To the President, W. H. WOODIN. The White House. President Roosevelt replied: The White House, Washington, D. C., Dec. 20 1933. Dear Will: That you feel you must definitely leave the Treasury post by the end of the year is, of course, a great sorrow to me; but I am even more saddened by the thought that the throat is still giving trouble. I know, however, that it is of the highest importance that you shelve all official cares, and that with your fine courage and constitution you will soon get wholly well. Remember that when that day comes you are wanted and needed in the service of the country. Your calm, practical and courageous action in the difficult days of last Spring and Summer will always be remembered. All of us miss you greatly and all of us send you our devoted regards. Henry Morgenthau Jr. will go in on Jan. 1, and I am happy in the thought that you so strongly approve the choice. Take care of yourself. Faithfully and affectionately yours, FRANKLIN D. ROOSEVELT. Hon. William H. Woodin, Tucson, Ariz. In a formal statement issued at Tucson, Ariz., on Jan. 1 Mr. Woodin expressed his pleasure at having served "under the greatest leader of modern times." He predicted a "great success" for Mr. Morgenthau as Secretary. Mr. Woodin said: With the exception of my illness. I've had a wonderful time since March 4. I have had the honor of serving under the greatest leader of modern times, and I regretfully retire from the Cabinet filled with admiration, respect and affection for him. I would like to express my warmest congratulations to Henry Morgenthau and my strong belief that he will make a great success as Secretary of the Treasury. Everyone has been very kind to me,and I more than appreciate it. There Is no nation on earth that can meet and conquer a crisis as cheerfully and effectively as the people of our own dear country. In a telegram received by Mr. Morgenthau on Jan. 2 Mr. Woodin said: My great affection and congratulations, my dear Henry. That you'll make a great success is the sincerest wish of William H. Woodin. Mr. Woodin's earlier letter of resignation, tendered because of his illness, was given in our islue of Nov. 18,page 3591. Opening of Seventy-Third Congress, Regular Session— Upward of 200 Bills and Resolutions Presented in House—On First Day New Members of Congress Take Oath of Office—President Roosevelt Reported as Seeking Short Session. With the opening on Jan. 3 of the first and only regular session of the Seventy-third Congress, it was stated that so many new bills were introduced in the House that facilities and to-night gave his annual reception in honor of the Judiciary. The Senate met at noon, heard the budget message, discussed recess appointments and adjourned at 1:15 p. m. until noon Monday. The House met at noon. debated the Liquor Tax Bill, heard the budget message and adjourned at 5:15 p. m. until noon to-morrow. The Senate Banking and Currency Committee continued its investigation of the Detroit banking collapse. Indicating that 13 new members were slated to take the oath of office in their respective chambers at the outset of the Seventy-third Congress, Associated Press adviees Jan 3, said: The new Senators to be are: Carl A. Hatch of New Mexico, Democrat; Joseph O'Mahoney of Wyoming, Democrat; Ernest W. Gibson of Vermont, Republican. The new Representatives-elect: A. H. Carmichael, Democrat, Alabama; Mrs. Isabella S. Greenway, Democrat, Arizona; David Terry, Democrat, Arkansas; Paul Brown, Democrat, Georgia; Mrs. John D. Clarke, Republican, New York; Oliver W.Frey, Democrat,Pennsylvania; Clark W.Thompson, Democrat, Texas; Andrew Edmiston, Jr., Democrat, West Virginia. Mrs. Bolivar E. Kemp, Democrat, and J. Y. Sanders, Jr., Democrat, both will present themselves from the South Louisiana District. On Jan. 4 President Roosevelt sent to the Senate the nominations of more than 100 Government officials named to office during the recess of Congress, including Henry Morgenthau, Jr., of New York to be Secretary of the Treasury. The list as given in Associated Press advices to the New York "Evening Post", included: The three new Assistant Secretaries of State—R. Walton Moore of Virginia, Francis B. Sayre of Massachusetts and Sumner Welles of Maryland. Two Ambassadors—Hal H. Sevier of Texas to Chile and William Christian Bullitt of Pennsylvania to the Soviet Republic. Two new Federal Trade Commissioners—James M. Landis of Massachusetts and George C. Mathews of Wisconsin. Ministers Nominated. The following Ministers were formally nominated: Sheldon Whitehouse of New York to Colombia. Matthew E. IIanna of Ohio to Guatemala. Edward Albright of Tennessee to Finland, George H. Earle 3d of Pennsylvania to Austria, Arthur Bliss Lane of New York to Nicaragua. Charles EL Wilson of Maine to Jugoslavia, Leo It. Sack of Pennsylvania to Costa Rica, Fay A. Des Portes of South Carolina to Bolivia, Meredith Nicholson of Indiana to Paraguay, Post Wheeler of Washington to Albania. Antonio C. Gonzalez of New York to Panama. John Van A. MacMurray of Maryland to Estonia, Latvia and Lithuania, James Marion Baker of South Carolina to Siam, Frederick A. Sterling of Texas to Bulgaria, Bert Fish of Florida to Egypt, W. W. McDowell of Montana to the Irish Free State, William H. Hornibrook of Utah to Persia and Grenville R. Emmet of New York to The Netherlands. Incident to the opening of Congress the "Times" reported the following from Washington Jan 3: The nation through the radio not only heard President Roosevelt address Congress to-day, but also listened to Congressional leaders give their views on the condition of the Union and discuss the prospects for legislation. Before the President went on the air the combined networks of the two national broadcasting systems carried the speeches of Speaker Rainey, Representative Joseph W. Byrne, majority House leader; Representative B. II. Snell. Republican House leader; Senator Joseph T. Robinson, Demoerotic Senate leader; Senators Harrison, Capper, Copeland, Reedland LaFollette, and Postmaster General Farley. For nearly three hours not only the speeches delivered before the session. but the entire proceedings of Congress, including the President's speech, were broadcast. The National Broadcasting Co. sent the speeches to Europe and South America over short waves. Representative Snell promised that his party would co-operate with the administration in legislation aimed to benefit the country, but would. Volume 138 Financial Chronicle oppose extravagances and contend against the breaking down of constitutional forms of government. Snell for "Honest Money." The Republicans in the House, he added, would stand against Congress abdicating its right to legislate, and for maintenance of the integrity of our currency system and insistence that the Government "shall redeem its debts in honest money," as well as support a balanced budget "that is honestly presented." Byrns Pledges Party Aid, Representative Byrns, outlining the attitude of the Democrats in the House, said that the President would have the same loyal support as in the special session last spring and that his recommendations to improve economic conditions would be approved by Congress. He predicted that the session would be a short but busy one, with the House taking up liquor taxation at the outset. Says NRA Will Stand. Senator Robinson indicated that legislation would be considered with more deliberateness than in the special session, but he did not foresee the administration's recommendations being rejected. • According to Associated Press advices from Washington Jan 5, President Roosevelt informed Senator Lewis of Illinois, the Democratic whip, that he expected Congress to adjourn by the middle of May at the latest. The accounts stated: They conferred at luncheon. "The President impressed on me," said Senator Lewis on leaving, "the object he has of the Senators giving as much time as they can to quick consideration of the new measures put before Congress. "He made it clear that, while he would not hinder full debate, he hopes that no more time will be taken on speeches than necessary to clarify the measures. "The President hopes that Congress can finish the present session and get away by the middle of May at the latest. For myself, I think I see us here until July. "I must say that it appears to me that the President feels that the nation suspects or fears Congress when it begins to do unnecessary talking. The whole text was diligence and an early conclusion by Congress. He has faith they all feel as he does." Convening of Congress in January— "Lame Duck" Session Ended. The following is from Associated Press advices from Washington Jan. 3: Here are some things that make the session of Congress beginning to-day different from any other in the history of the country: It is the first and last regular session of the Seventy-third Congress. All others have had two sessions, but the lame duck constitutional amendment dropped one during the change. Future Congresses will have two regular sessions. It convenes on Jan. 3. All previous sessions since 1820 began the first Monday in December. Its members lose two months' pay by the lame duck amendment, ending their terms next Jan. 3 instead of next March 4. Governor Lehman Again Urges Strict Utility Regulation. In his message to the Legislature (delivered Jan. 3) Governor Lehman was insistent that this present session must witness the enactment of legislation looking to a more rigid "regulation and control of the great public utility companies in this State" and he made evident his displeasure with the Legislature for its former inattention to the "major and vital portion of these recommendations," a portion of his address which was received with great interest in the financial district. Mr. Lehman again advocated the authorization of municipal ownership, the strengthening of the Public Service Commission, the charging of regulatory expenses against the companies, and other proposals which have been rejected at previous sessions. He observed that the "many abuses in the operation of public utilities companies persist" and that "these can be and should be corrected at once." The Governor presented the nine-point program mentioned below embracing the chief measures which he wants the Legislature to pass at this session and he pointed out that he confidently expects this proposed legislation will receive approval at their hands: 1. Legislation permitting any municipality to construct or acquire a public utility plant and sell its service to its inhabitants and any surplus to residents outside of its territorial limits. This bill should also provide that one or more municipalities may combine in the formation of a public utility district. It should be not mandatory but purely permissive legislation, to become operative only after the whole project, including all the details of the financing, construction and operation, shall have been submitted to the residents of the municipality for their approval. 2. A bill clarifying and extending the powers of the (Public Service] Commission so that it can order temporary decreases in rates. 3. Legislation authorizing the Commission to assess against a public utility such portion of the expenses of the Commission as is reasonably attributable to an investigation, valuation or revaluation of that public utility, provided, however, that the amount so charged in any calendar year shall not exceed a certain percentage of the gross operating revenues derived by such corporation from intra-State service. 4. Legislation authorizing the Commission to charge public utility companies foes for the filing of applications, recording of tariffs, rate schedules, and other documents. 5. A measure providing that the amount of charges made by holding companies against operating companies be limited to the actual cost of the service rendered; and authorizing the Commission to strike out of the operating expenses of a company all unjustifiable charges imposed upon it by its holding company. 55 6. Legislation prohibiting the payment of moneys by operating utilities to various corporations in a holding company chain for the latter's securities and services, without the prior approval of the Commission. 7. An Act preventing a company from charging to its operating expenses the cost of marketing securities of a holding company. 8. Legislation decreasing the amount of stock of another company which a holding company may have without specific approval of the Commission. 9. Legislation clarifying the law so as explicitly to place all gas transmission lines under the jurisdiction of the Commission. Certain very important aspects of the powers of the Public Service Commission are now being challenged in court. No final decisions have yet been rendered. The decisions may necessitate other legislation in order to preserve the strength of the Commission. In a later message I may transmit to you additional recommendations concerning the powers of the Commission and its regulation of public utilities. The Governor also recommended that provisions be made so that municipalities can obtain power from the St. Lawrence development. Court Dismisses $2,300,000 Suit Against Andrew Mellon and Ogden Mills--Rules Margarine Test Case Disqualifies Acts While Former Treasury Heads Were in Office. Holding that former public officials are immune from suit for acts performed while in office, the District of Columbia Supreme Court on Jan. 2 dismissed a suit involving Andrew W. Mellon and Ogden L. Mills, former Secretaries of the Treasury. The action had been brought by manufacturers of vegetable margarine to collect $2,300,000 from Mr. Mellon and Mr. Mills on the ground that the margarine makers had been damaged to that extent by a Treasury order in 1928 that margarine made from vegetable oils was subject to a tax of 10 cents a pound collected on animal-fat margarine, and by subsequent efforts of the Treasury Dement to collect the tax. Counsel for the defendants said they expected the decision to be appealed. Associated Press advices from Washington on Jan. 2 noted the ruling of the court as follows: "The question in this case is whether defendants are liable to plaintiff for losses alleged to have been suffered by it by reason of the assessment against plaintiff of a tax on its products and the attempt to collect that tax," said Justice Jesse C. Adkins in his opinion. "On this point defendants contend that a public officer is privileged from suit for damages by an individual injured by acts done by an officer in the performance of his official duties requiring the exercise of judgment and discretion. "After careful study, I am convinced that the defendants are privileged from suit by plaintiff under the facts in this case. "All of the acts of the defendants. Mellon and Mills, complained of in the case were acts requiring the exercise of judgment and discretion. They are privileged from suit at the hands of plaintiff for damages allegefl to have been caused by the actions of the several commissioners (of internal revenue) or by the acts alleged to have been done by Messrs. Mellon and Mills themselves, even if they and the several commissioners, or any of them, acted maliciously, arbitrarily, capriciously and in excess of their jurisdiction." In July 1931 an act subjecting vegetable margarine to the tax became effective. The companies did not complain of the tax collection after that time. Six months later, however, the Supreme Court ruled that the old margarine tax, effective since 1886, was not applicable to vegetable margarines, thus reversing the Treasury ruling. To-day's decision was on a suit brought by the Standard Nut Margarine Co., a Florida concern. Other companies with suits pending are the Baltimore Butterine Co., Edwardsville Creamery Co., Kansas Nut Margarine Co., Dixie Margarine Co., John P. Olson, Ideal Food Products Co., and Lone Star Foods, Inc. Tax By State of Kentucky on Oleomargarine Held Invalid By United States Supreme Court—Chief Justice Hughes Says Order Leaves Way Open to Permit Members of State Tax Commission to Apply for Further Decree. The U.S. Supreme Court ruled on Dec.4 that the decision of a three-judge Federal Court holding invalid the Kentucky tax of 10 cents a pound on oleomargarine shall stand unless a different interpretation is placed upon the levy in the future by the State courts. From Associated Press advices Dec.4 from Washington to the Louisville "Courier-Journal" we quote: The case was brought by the Kentucky Tax Commission to enforce the levy against the Field Packing Co. of Owensboro, Ky. Chief Justice Hughes announced the action of the Court. He pointed out that the lower Court had held the statute invalid under the State's Constitution after finding that it prohibited the sale of oleomargarine. "Upon the facts found," the order stated. "the decision appears to be supported by principles laid down by the Court of Appeals of Kentucky, but, so far as the application of the State Constitution is concerned, the ultimate determination of the validity of the statute necessarily rests with that Court. "Further, the change in circumstances may create a situation different from that to which the opinion below was addressed. "In order to prevent the possibility that the decree may operate injuriously in the future, the decree will be modified by providing that the members of the State Tax Commission, or that Commission, may apply at any time to the Court below by bill or otherwise, as they may be advised, for a further order or decree, in case it shall appear that the statute has been sustained by the State Court as valid under the State Constitution, or that by reason of a change in circumstances the statute may be regarded as imposing a valid tax." Regarding the Supreme Court's decision on the Kentucky tax we quote the following from Washington, Dec. 4, to the Chicago "Journal of Commerce": 56 Financial Chronicle Jan. 6 1934 Validity Measured by Times. The Federal District Court in its decision enjoining collection under the tax law, which was passed at the 1932 session of the Legislature. said: "It is not within legislative competence, by taxation to destroy a legitimate businessin times of depression any more than In normal times, and,as we are living in subnormal times, the validity of the tax in question must be measured by its effect during these times." As a result of the tax law, the sale of oleomargarine was stopped in Kentucky so that although the law was a revenue act, no revenue accrued to the State, it was said. Of Wide Importance. The importance of the final ruling of the Supreme Court was emphasized by those familiar with the litigation who said that some 10,000,000 Americans are users of oleomargarine. Fourteen States, besides Kentucky, have passed stamp taxes for the product and the act of one of them—Washington—now is under review by the Supreme Court. Several legislatures now In session, among them Missouri which has pending four bills, are considering margarine tax bills. It was pointed out that in recent months Governor Horner of Illinois and Rolph of California have vetoed oleomargarine tax bills, and that the people of five States. California. Oregon. Washington, Colorado and Michigan, have, by referendum, rejected proposals to tax the product. at $34.06 a fine ounce for another week, and as a result the dollar continued to show stability in foreign exchanges markets until the issuance of President Roosevelt's budget message to Congress on Jan. 4, when it broke sharply incident to the estimate of a Federal deficit in excess of seven billion dollars and the announcement that Government financing over the next six months will total 10 billion dollars. On the morning of Jan. 4, prior to publication of the budget message, the pound sterling was quoted at $5.08 in New York. Within a few moments after the message was made public, however, the quotation for the pound advanced rapidly to $5.16. The pound closed yesterday (Jan. 5) at $5.11 compared with $5.073/ a week ago, while the French franc was quoted at 6.14 cents yesterday, against a close of 6.083's on Dec. 29. The RFC gold price has been unchanged since Dec. 18, when the single alteration last month (a rise of only five Unmailed Circulars and Bills Barred from Private cents) was made. Despite this virtual stabilization, the Letter Boxes by Order of Postmaster-General future course of the Administration's monetary policy is still uncertain, following the brief reference made by the Farley. Postmaster-General Farley signed an order on Jan. 2 President in his address to Congress on Jan. 3, in which prohibiting the use of private letter boxes or letter slots in he said that gold purchases at home and abroad and silver doors of homes as receptacles for such mailable matter as purchases to date had been made with "the two-fold purpose advertising circulars, handbills and statements of accounts. of strengthening the whole financial structure and of arriving Mr. Farley said he had received complaints against having eventually at a medium of exchange which will have, over letter boxes stuffed with bills and circulars, particularly the years, less variable purchasing and debt-paying power during the application of a three-cent local postage rate. for our people than that of the past." Mr. Morgenthau, now Secretary of the Treasury and Carriers were instructed to remove from letter boxes and other similar receptacles mailable matter on which no postage acting head prior to Jan. 1, said on Dec. 29 that the new has been paid and to carry it to the postoffice to be held for regulations pertaining to the return of gold to the Treasury represented a move aimed at big rather than little gold postage. His order said: Private mail receptacles should be used to facilitate the delivery of mail. hoarders. The regulations were given in our issue of When designated by the owner or user thereof for the purpose of receiving Dec. 30, page 4622. Mr. Morgenthau's remarks were mail, all rules and regulations affecting the use ofsuch receptacles issued by reported, in part, as follows in a Washington dispatch to the Postmaster-General shall be effective and apply to such receptacles. Every private mail box or other receptacle intended for use for the the New York "Journal of Commerce": receipt or delivery of mail matter by any city or village letter carrier shall be used exclusively for the reception of matter regularly in the mails, and any mailable matter, such as statements of account, circulars, sales bills or other like matter, deposited therein shall be treated in accordance with the rules governing the mails, including the proper addressing and the payment of postage at the regular rate. Mr. Farley was also quoted as saying: Postal patrons throughout the country have complained to the Department that their private letter boxes have been cluttered with all kinds of advertising matter, statements, bills, political handouts, tickets of all kinds, and bargain sale announcements. In many instances letter carriers have found it difficult to deposit mail in the overcrowded letter boxes, resulting in loss of time and considerable hardship. Shipping Board Urges Legislation Providing Use of American Vessels in Carrying Cargo Purchased Through Loans Abroad—Other Laws Suggested in Annual Report. Legislation requiring that at least half of the commodities purchased in the United States through loans abroad should be moved in American vessels was recommended by the Shipping Board in its report for the fiscal year ended June 30 1933, made public Jan. 1. Seventeen other legislative changes were advocated by the Board,including those listed below, in an Associated Press dispatch from Washington Jan. 1: The Board further urged that the coastwise laws should be amended to make It unlawful for ships under foreign flags to engage in "so-called voyages to nowhere." Organized for tourist purposes, these voyages originate at some United States port and terminate at the same port without touching a foreign port. Other recommendations included: Continuance of Federal appropriations to aid the merchant marine. Provision for tax exemption on American vessels operating in foreign trade, including allowance of deductions from taxable incomes derived from operating profits to the extent that such profits are devoted to new ship construction in American yards. Legislation looking to the transfer of privately owned American shipping interests of peace-time business handled by army and navy transports, and by the Panama Railroad Steamship line. Establishment of "free ports" or foreign trade zones in American ports, probably only under direct authority of the Government at first. Removal of the $185,000,000 limitation on the amount of construction loans, and making it $250,000,000. Legislation granting authority to the Board to extend, rearrange, or hold in abeyance payments due to the construction fund to protect the interests of the Government. Repeal of laws which permit "alien seamen who have filed declarations of intention to become citizens of the United States and who have served for three years on American vessels to be classed and hold the same status as American-born or fully naturalized citizens." Amendment of the Shipping Act to include ocean tramps in the definition of "common carrier by water in foreign commerce." RFC Continues Purchase of Newly Mined Gold—Dollar Breaks in Terms of Foreign Currencies After President's Budget Message—Official Gold Buying Price Still $34.06, Unchanged Sinca Dec. 18, The Reconstruction Finance Corporation purchase price fo newly mined domestic gold again remained unchanged While under the order, based on Section 2 of the Emergency Banking Act must be returned as contrasted to the original regulation on the authority of Section 2 of the same law, containing an exemption in holdings of $100, Mr. Morgenthau explained that the Treasury was not vitally concerned with small hoarders. "This order means business," Mr. Morgenthau said. "It is a mopping up at the end of the year. There is nothing behind the order, other than the desire to get the gold into the Treasury, and it has no connection with the gold buying policy." Discusses Double Penalty. The Acting Secretary declared that the double penalty of twice the amount of gold held should be more effective against the large hoarder of gold than the penalty of $10.000 fine and 10 years in prison, which was the maximum in the President's anti-hoarding order of last August. Mr. Morgenthau expressed the belief that many large hoarders would prefer to pay the maximum fine of $10,000 rather than to turn in their gold. On the other hand, he pointed out, the heavy penalty of the new order should induce hoarders to relinquish thew gold. Mr. Morgenthau expressed the belief that several million dollars in gold Is outstanding as illegally held. The Treasury's circulation statement for Nov.30 showed that $311,044,985 in gold coin and bullion and $217,486.829 In gold certificates were outstanding from the Treasury and Federal Reserve banks on that date. Stresses Gold Flight. However, Mr. Morgenthau explained that much gold has been drained from the country for years having been taken abroad and placed in hoard or otherwise used. Herbert Bailie, fiscal assistant to the Secretary, added that it had been buried "In French back yards and elsewhere." Undoubtedly a considerable volume of gold certificates given as in circulation have been destroyed. The Treasury feels that much gold is in the banks and otherwise hoarded which should be returned. Holders were described as not having taken the original order seriously. all gold $50,000,000 Expended by United States for Foreign Gold Purchases—RFC's Outlay for Domestic Newly Mined Metal Totals $24,800,000. Chairman Jones of the Reconstruction Finance Corporation announced on Jan. 2 that about $24,800,000 had been expended for domestic newly mined gold, and a little more than $50,000,000 for purchases in foreign markets, leaving about $25,000,000 of the $100,000,000 so far authorized for that purpose. The foregoing is from Washington advices Jan. 2 to the New York "Times," from which we also quote: The President's intentions remain a carefully guarded secret. One published report was to the effect that the idea of a central bank was being considered. Secretary Morgenthau of the Treasury Department was asked about it to-day. "All I can say." he replied, "is that I am not working on anything like that: no one in the Treasury is working on it." Senator Thomas of Oklahoma and Representative Rankin of Mississippi were understood to be formulating a legislative proposal to have the Treasury take over the gold held by the Federal Reserve Banks with the view of using the profit which would come with devaluation of the dollar in paying off public debt or financing emergency outlays. The President is reported to have asked the Federal Reserve Board for its opinion as to procedure, if such a step were to be taken, but the White House and other officials have withheld all comment on what course may be contemplated. The more general opinion here appears to be that in the end the administration will seek to broaden its monetary policy along lines which will cause as little disturbance as possible. Among the more recent rumors is that a Financial Chronicle Volume 138 free gold market will be established in this country to further the gold price raising plan. The raising of the Government's gold buying fund to $100,000,000 was noted in our issue of Dec. 23, page 4463. Government Obligations of $11,950,000 Purchased by Treasury During Week of Dec. 30. Henry Morgenthau Jr., Secretary of the Treasury, announced on Jan. 2 that during the week of Dec. 30 the Treasury had purchased Government obligations totaling $11,950,000. The Secretary said that $8,300,000 of this amount was invested for the various Federal agencies, such as the Farm Credit Administration, the Federal Deposit -Insurance Corporation and the postal savings system, and $3,650,000 for the account of the sinking fund. Since the inception of the Treasury's support to the Government bond market, announced on Nov. 22 1933, and referred to in these columns of Nov. 25, page 3769, the weekly purchases have been as follows: Nov. 25 1933 Dec. 2 1933 Dec. 9 1933 58,748,000 2,545,000 7,079,000 Dec. 16 1933 Dec. 23 1933 Dec. 30 1933 516.600.000 16,510,000 11,950,000 Senator Wheeler Introduces Bill for Bimetallism— House Silver Advocates Confer with Senator Harrison Who May Offer Substitute Measure Conforming to President's Views. Senator Wheeler of Montana introduced a bill on Jan. 4 to establish a bimetallic monetary system with a ratio of 16 to 1 between silver and gold; and provision for the free coinage of both gold and silver. Introduction of this measure followed a visit to the White House by Senators Wheeler and King. Meanwhile, silver proponents in the House of Representatives decided to confer with Senator Harrison who, it was rumored, might offer a substitute silver bill in the Senate. A Washington dispatch of Jan. 4 to the New York "Times" commented on the various proposals for such legislation as follows: Conflicting views were expressed by White House visitors. Senator Wheeler, when leaving, said he did not think the last word had been heard from the White House. A short time later Senator Robinson of Arkansas, after a talk with President Roosevelt, said: "My personal opinion is there will be no silver legislation in the near future." Despite Senator Robinson's statement, it was reported on the House side that "it any silver plan is advanced, Senator Harrison will handle it, and it will originate at the White House." House silver advocates held a conference this morning, but they failed to agree upon a definite plan. They adopted a resolution calling for coinage of silver "at a ratio provided by law," as urged in a recent resolution by a group of Western Senators, About 20 Representatives from Western States attended to-day's meeting, which was presided over by Representative Fiesinger of Ohio. The confusion over a plan later resulted in a decision of the House silver proponents to confer with Senator Harrison. The reason for Senator Harrison's handling the problem, it was reported from reliable sources, was that President Roosevelt was not in sympathy with Senator Wheeler's proposal, and eventually would offer a substitute through Mr. Harrison. For this reason Representative Somers of New York, Chairman of the Coinage, Weights and Measures Committee, and Mr. Fiesinger decided to visit Senator Harrison and offer to work with the President. Both admitted that it would be unwise to carry on a fight for remonetizaLion when it was certain that whatever plan President Roosevelt advocated would be approved by Congress. Although Speaker Rainey is an ardent silver advocate, he has not been Informed, ho has said, as to what President Roosevelt plans to recommend, $12,035,000 in Gold Coined Last Year—United States Mints Turned Out $896,625 in Silver and Much Foreign Coinage. Marking perhaps the last year in many in which gold will be minted in the United States, (it was noted in a dispatch to the New York "Times" from Washington Jan. 3,) the country's mints in 1933 coined 758,000 pieces of gold valued at $12,035,000, the Treasury announced. The dispatch continued: No gold payments are now being made, and this metal is being impounded in the Treasury and Reserve Banks. Gold coinage included 445,500 double eagles valued at $8,910,000 and 312,500 eagles valued at $3,125,000. There was a considerable volume of coinage for foreign governments during the year. Other coinage was as follows: Silver. Pieces. Value. Denomination— 5.250 $2,625 Half dollars, Oregon Trail_ 1,786,000 893,000 Half dollars standard 1,791.250 Total silver $895,625 tfinor. 20,560.000 $205,600 One cent bronze 23,109,250 $13,136,225 Total domestic coinage including gold Coinage for foreign governments was reported as follows: Panama, silver, 900 fine-4i balboa; 120,000 Pieces; 3 balboa, 120,000 pieces; 1-10 balboa, 100,000 IdeCes• Honduras, silver, 900 fine-1 Lempira, 400,000 pieces. Cuba, silver, 900 fine-1 peso, 6,000,000 nieces. Colombia, nickel-5 centavo, 2,000.000 pieces; 2 centavo, 3,500,000 pieces; 1 centavo. 3,000,000 pieces. 57 President Roosevelt to Permit No "Runaway Inflation" According to Grover A. Whalen, NRA Administrator for New York—Speaks Before New York Chamber of Commerce. President Roosevelt will permit no "runaway inflation," Grover A. Whalen, NRA administrator for New York, assured 200 members of the Chamber of Commerce of the State of New York on Jan. 4 at the regular monthly meeting at 65 Liberty Street. Mr. Whalen said that when he had informed President Roosevelt that he was going to speak at the Chamber, the President sent his compliments to the members and wished the organization success. No direct reference was made by Mr. Whalen to the attitude of the Chamber toward the Administration's monetary policy. He did not mention gold standard to which the Chamber has urged a prompt return to help recovery, but did use the words "gold question" in connection with his statement in regard to inflation. Mr. Whalen, said: "As for the gold question, I ask you to look at the situation as a whole, In all its aspects and implications, and I ask you to have confidence that the President will permit no runaway inflation. Please remember that the President is at least as much concerned with recovery as any individual citizen." Mr. Whalen's speech was broadcasted. Mr. Whalen has been a member of the Chamber for several years. Most of Mr. Whalen's speech was devoted to a review of the accomplishments of the National recovery program. Some notable dissenters professed to believe that the changes had been the spontaneous result of natural causes, he said, but he maintained that the changes were inspired "by the human dynamo in the White House." He stated: "The President's brilliant leadership has been exceeded only by his deep appreciation of human values. Whatever he has done—and the record of his ten whirlwind months in office stands as a monument to his indefatigable labors—he has done in terms of the human being rather than of abstract principles. In bringing relief to the men and women of the United States, he has swept aside three vicious philosophies; the philosophy of impossibility, as expressed by the phrase.'It can't be done': the philosophy of despair, as expressed by 'It's no use,' and the philosophy of economic orthodoxy as expressed by. 'It mustn't be done this way because it hasn't been done this way before'." He said that perhaps the farm problem would not be so acute to-day, if former presidents had been willing to concede that so-called economic laws were something less than immutable. "While the rest of the country was prosperous, the farmer was broke," Mr. Whalen said. "The President is now trying to improve the lot of the farmer because he knows that we cannot be a nation part prince but most pauper." Referring to budgets and credit, the speaker said that in 1913, a year before the World War began, our national debt was $1,200,000,000, and that in 1919, less than a year after the Armistice, it was $25,500,000,000. A war for the preservation of our form of society is being waged to-day and the heavy expenditures of the past year were as necessary and vital as any war-time expenditure ever was, he declared. He pointed out that the per capita debt of Great Britain is more than $800, while that of the United States is only $200. He continued: "The Increase in our National debt, due to the relief given our citizens and our institutions by the Government, will not bulk very large if it helps to get us out of the depression. Let us not forget that, after all, the national income of the 5,000,000,000 in 1929 to United States decreased from $45,000,000,000 in 1932, and that a restoration and more equitable distribution of the 1919 income would bring to this country a prosperity it has never before known." In conclusion Mr. Whalen said that he was convinced that the people will see to it that nothing interferes with the new philosophy of government. "We have entered a period of economic reformation and social renaissance. Let us recognize the fact and accept it cheerfully," he urged. Increase in Dollar Volume During November as Compared with October in Security Issues Registered with Federal Trade Commission Under Securities Act—October-November Summary. Security issues registered under the Securities Act and permitted to become effective during October and November 1933 show an increase in gross proceeds for November over the October totals, according to a summary made public Dec. 23 by the Federal Trade Commission. Fifty-one registration statements becoming effective in November represented gross proceeds of $76,129,977 as compared to 44 effective issues in October with gross proceeds of $39,154,601. The bulk of the increase, says the Commission, was in the volume of common stocks, the dollar volume showing an increase of more than 40 million. Practically 58 Financial Chronicle all this increase occurred in the flotations of financial and investment companies, the total gross proceeds of this group having been estimated at $56,766,547 for November as compared to $12,940,261 for October. The Commission also said: Brewing, distilling and spirituous liquor, classified as one industry, which, in October, ranked first in gross proceeds, with financial and investment flotations second, showed, in November, a sharp decline from approximately 15 to 10 million while all manufacturing industries declined from approximately 17 to 12 million. The Commission's summary is the first of its kind to be officially issued. A later release will include statistics for July, August and September, the first months during which the Securities Act was operative. This will bring the figures up-to-date, following which it is expected a summary will be issued at intervals. Full text of the October-November summary was made public as follows by the Commission: Security Registrations Effective in October. In the month of October, the security registration applications of 44 companies became effective for a total of $39,154,601 gross proceeds. This does not include certificates of deposit or reorganization securities nor does It take account of any withdrawals or stop orders applying to these erectives. Of this sum,over half ($20,324,576) was represented by common stocks and about one-quarter ($9,817,500) by bonds. The balance of the securities registered consisted of $6,147,000 preferred stock and $2,865,525 of certificates of participation and-or beneficial interest. About 40% of the total securities registered ($15,173,740) were those of brewing, distilling and other spirituous liquor companies. Except for $250,000 worth of debentures all the securities of these companies were represented by common and preferred stocks. Next to the brewing and distilling business, the financial and investment companies showed the largest total volume of securities for which registration statements became effective during October ($12,940,261). The limited management investment and trading companies and trusts accounted for $5,470,000 or more than 40% of the total for companies in this class, the general investment type for $3,454,736 and the fixed trusts, for $2.800,000. The only other industry r presented by a substantial amount of securities effective during the month of October was the electric light, power, gas and water company group. This group accounted for 2% millions common and 33j millions of bonds, representing a total of $6,227.500 or over 1-6 of the total for all issues. The total net proceeds of the securities to be sold under the registrations effective during October aggregated $32,112,269. The difference between this amount and the gross proceeds is $7,042. 332 or a little over 17% of the gross proceeds for underwriting,selling, and other expense in connection with the issue. In some cases these expenses run much higher. For example, in brewing, distilling and spirituous liquor registrations effective during October these items averaged about 35%• Sllghtly over one-third ($10,869,109) of the total net proceeds is to be devoted to purely investment purposes, the receipts being used chiefly for the purchase of securities by various security investment trusts and companies issuing the new securities. A little less than one-fourth of the total ($7,612,358) is to be used for the funding, refunding and conversion of outstanding securities or other indebtedness. The great bulk of the amount estimated for this purpose ($6,189,646) was in the electric light. power, gas and water company group but small amounts of funds to be devoted to this use were also found in the extractive industries, manufacturing, merchandising and real estate. Only $3,293,578 of the total net proceeds of all issues effective in October were intended to be expended in the creation of additional fixed capital by new companies and only $1,308,447 by old companies. The total of these two items representing increases in new capital assets is only $4,602,025 or about 15% of the total net proceeds of the securities proposed to be issued. Nearly all ($4,104,911) of this new plant investment is that of brewing, distilling and spirituous liquor companies. This net total to be raised for fixed capital investment under the securities registrations for October is appreciably below the total for working capital. The latter is estimated to be $5,803,167 which is about 18% of the total net proceeds estimated for all new issues. Approximately 68% of this amount ($3,949,553) represents the expansion of the brewing and distilling industries but several other of the industries estimate all the way from a few thousand up to a million dollars for this purpose. Security Registrations Effective in November. The total securities registrations for 51 companies effective during November showed a sharp increase over those effective for 44 companies in October, the estimated gross proceeds of the issues for the latter month being $76,129,977 as compared with only $39,154,601 in the earlier. Both of these figures are gross totals without allowance for withdrawals or stop overs of statements becoming effective during the periods in question. They do not include certificates of deposit or reorganization securities. The bulk of the increase took place in the volume of common stocks, the dollar volume showing an increase of over 40 million dollars. Practically all of the increase occurred in the flotations of financial and investment companies, the total gross proceeds of the issues of this group being estimated at $56,766,547 in November, not including Treasury stock, as compared with only $12,940,261 in October. The general management investment and trading companies account for over 35 million of this total and the limited management type, for another 10 million. Brewing, distilling and spirituous liquors, which led all other lines of business in October in the volume of securities issued, showed a sharp decline from around 15 million dollars in October to a little over 10 million in November and the total of all manufacturing industries showed a somewhat similar decline from a little over 17 million to a little over 12. The difference between the estimated gross and estimated net proceeds, in effect the cost of procuring capital, was $12,411,837 for the registration statements effective in November,no deduction being made for withdrawals or stop orders, or between 16 and 17% of the gross proceeds, which is about the same as in the October registrations. In brewing, distilling and spirttuout liquor registrations effective in November, the net proceeds were about 60% of the gross proceeds. Only $2,017,238 of the November total net proceeds ($63,718,140) was Intended for plant investment by new companies and only $925,493, by old companies, both being substantially below the October totals as is also the $5,278,186 estimated to be used for working capital. The total for new fixed capital investment was therefore only $2,942,731 or less than 5% of the total net proceeds. Funding, refunding and conversion also showed a sharp decline in November to $1,268,219 from $7,612,358 in October. Over two-thirds ($44,384,002) of the total net proceeds of the securities registered in November is destined for investment through various financial and investment companies. This represents an increase of over 300% from the total of $10,869,109 intended for this purpose in October by the same type of concerns. Jan. 6 1934 Cumulative Registrations Effective October-November 1933. For the months of October and November combined, there became effective a net total of 91 securities registration statements covering a total of $114,724.578, this total, representing the estimated gross proceeds of the securities registered, assuming that all those registered were sold and excluding registrations of reorganization securities and certificates of deposit. In addition, there were registered 1,883,953 shares of preferred stock and $225,000 face value of participation certificates to be distributed as bonuses with other securities represented in the foregoing total. Neither of these items appears in either the estimated gross or net proceeds of the sale of registered securities because the issuing companies received nothing therefor. This total of$114,724,578 gross proceeds is a net figure after deducting withdrawals made and stop orders issued during these two months applying upon registration statements which also became effective during this period. This total of proposed flotations is made up of approximately 70% common stock, 10% preferred, 15% of long-term debt and 5% of participation certificates, certificates of beneficial interest and warrants. It includes $1,325,000 gross proceeds of issues made up either in whole or in part of Treasury stock. The brewing, distilling and spirituous liquor industry, together with the general management investment trusts are outstanding in volume of securities registered, the first accounting for over $25,000,000 and the second, for over $39,000.000, or more than one-fifth and one-third, respectively, of the total gross proceeds for the two months. Together, therefore,they constitute more than one-half of the total registered for the period. Only four other business classifications showed estimated gross proceeds of over $5,000,000 metal mining, limited management and miscellaneous investment and trading companies, and the electric, power, gas and water group. Only the limited management investment and trading companies showed over $10.000,000 of gross proceeds. The estimated net proceeds from the sale of $114,724,578 of securities is $95,362,409.leaving $19,362,169,or between 16 and 17% as the estimated cost of securing the new capital. In some cases the cost of securing new capital was much higher than this, as in brewing, distilling and spirituous liquors were $9,135,020 of the total gross proceeds of $25,518,740, or over 35% was estimated to be required for this purpose, leaving net proceeds of only $16.383,720. Considerably more than half ($55,253,111) out of the total estimated net proceeds of securities registered in October and November was to be devoted to investment, chiefly through investment and trading companies or trusts. The general management type of these companies accounts for about $37,000,000 of the net proceeds and the limited management type for nearly $13,000,000 additional net proceeds. The funds proposed to be invested in plant construction, machinery and equipment during these two months were extremely low, aggregating only $5.302,523 for newly organized companies and only $2,198,940 for old companies. The total of the two items together ($7,501,463) was less than 8% of the total net proceeds and also substantially below the total estimated to be used for working capital which aggregated in excess of $10,000,000. Over 70%. or $5,409,642, of all funds destined to be used for plant construction, equipment and the like was in brewing, distilling and spirituous liquors as was also over 65% of the total of $10,770,646 to be raised for working capital for all companies. The funding,refunding and conversion ofsecurities and existing indebtedness of the companies registered called for an estimated total of $8,766,577 of the net proceeds. Decrease in Domestic Coinage at Philadelphia Mint— Coinage of Foreign Pieces Increased. On Jan. 1 Associated Press advices from Philadelphia said: Domestic coinage decreased but foreign coinage increased at the Philadelphia Mint during 1933. While the minting of American coins dropped from 20,030,750 in 1932, to 15,118.000 last year, the decrease in value was from $68,106,620 to $12,178,600. This was because $14,360,000 of the coins turned out in 1933 were one-cent pieces. The mint coined 15,240,000 pieces for foreign countries, mostly LatinAmerican nations. In 1932, 9,756,096 foreign coins were minted. Because of fluctuating exchange rates, the mint attempted no estimate of the coin value in dollars. List of Companies Filing Registration Statements with Federal Trade Commission Under Securities Act. On Dec. 23 the Federal Trade Commission announced that security issues totaling close to $4,000,000 have' been filed with the Federal Trade Commission for registration under the Securities Act. All but about $600,000 of the four million represents new capital. The list follows: McCulloch's Green River Whiskeys, Inc (2-520), Owensboro, Ky., a Delaware corporation, distiller of fermented liquors, proposes to offer 240.000 shares of common stock at an aggregate price of $720,000. Among officers are: J. W. McCulloch, President, Louisville; L. Freeman Little, Vice-President, Owensboro, Ky., and J. Wendell McCulloch, Secretary. Treasurer, Bowling Green, Hy. Southwest Royalty Leasing Syndicate (2-521), Fort Worth, a trust estate, dealing in oil and gas leases and real estatedeeds, proposes to issue $100 units in a $50,000 trust fund. Arthur A. Diehl, Fort Worth, is trustee for the organization. Granada Realty Company Bondholders' Protective Committee (2-522), San Francisco, calling for deposits for first mortgage 6% serial gold bonds amounting to $1,700,000 (filing fee of $56.67 IS based on one-third of stated value) of Granada Royalty Co., a realty holding company, San Francisco. Members of the committee are: John D. Galloway, Mortimer Fleishhacker, W.D.Lux, Nat Schmulpwitz, Robert M.Underhill and Donald Y.Lamont, all of San Francisco. Bonholders' Protective Committee, Salt Lake Terminal Co. First Mortgage Bonds (2-523). Denver, calling for deposits of first mortgage 6% gold bonds of a market value of $38,820 of Salt Lake Terminal Co., Salt Lake City, Utah, which provides terminal facilities to interurban railroad companies, namely, Salt Lake Utah RR. and Salt Lake Ogden Ry.(now Bamberger Electric RR.). Members of the protective committee are: H. A. Hamilton, C. H. Hanington, Gerald P. Peters and William J. Solis, Vermilion River Mines, Inc. (2-524), Minneapolis, a Nevada corporation engaged in mining ores and minerals, qualified to do business in Nevada and Minnesota, proposes to issue $448,750 no par common capital stock. Among officers are: C. W. Eden, President; 0. Wittenkamp, SecretaryTreasurer, and John Nichols, Vice-President, all of Minneapolis. Supervised Investments (2-525), Wilmington, Del., and Cincinnati, Ohio, an investment management company, incorporated in Delaware. Volume 138 Financial Chronicle proposes to issue remaining portion of unissued shares plus shares redeemed within authorized capitalization as shall be sold for an estimated amount of $300.000. All securities of the company are held in New York while the books are available at the Cincinnati office. Among officers are: George S. Haydock, President; R. M.Lull, Secretary; Thomas C. Haydock, Treasurer, all of Cincinnati. Kludas Electro-Mechanical Devices, Inc.(2-526). Palisades Park, N. J.. a Delaware corporation, manufacturing an "aviation game" and other electro-mechanical devices, proposes to issue 4,900 shares of common stock at an aggregate Price of $56.350. Among officers are Herman Kludas, President, Palisades Park, N. J.; John Baler, Vice-President, West Hartford. Conn.; Enrest C. Sc.hutte, Secretary-Treasurer, Hartford, Conn. Laird & Co.(2-527). Scobeyville, N. J., a New Jersey corporation manufacturing and distributing cider, applejack, apple brandy and kindred products, proposes to issue 208,850 shares of common stock at an aggregate price not to exceed $1,665,500. Among underwriters are: John E. Laird, President and General Manager; Joseph T. Laird, III, Vice-President. Treasurer and Sales Manager, and Mabel A. Willett, Secretary, all of Scobeyville, N. J. Montana Consolidated Mines Corp. (2-528), Helena, Mont., a Montana corporation operating sliver, lead, gold and copper mining properties in Montana and proposing to issue 1,500,000 shares of common stock at an aggregate price of $75,000. Among officers are: C. D. Wason, President. Seattle, Wash.; Gust Carlson, Vice-President and Manager, Duluth, Minn., and _Helena, Mont.; Lars Carlson, Secretary-Treasurer, Helena, Mont.. and H. J. Johnson, accountant and transfer officer, Helena, Mont. IliConversion Officer for German Foreign Debts (Konversionskasse fur Deutsche Auslandsschulden) (2-529), Berlin, Germany. (This registration statement, which was covered in Securities Release No. 88 of Saturday. Dec. 16, has been assigned the foregoing docket number.) Securities issues totaling more than 819,000,000 were made public Jan. 4 by the Commission. These issues, filed for registration under the Securities Act, represent such businesses as groceries, gold mining,rubber products, investment trusts, lumber, and real estate. Approximately $4,000,000 of the total amount is involved in proposed re-organization plans. The list follows: Trust Worthy Stores, Inc.(2-530), Houston, Texas, a Delaware corporation proposing to engage in a mercantile business in retail groceries, meats and other articles. in Texas and other Southwestern States, issuing 12,250 shares ofcommon stock at a total aggregate of $122,500. E.P. Gage, Jacksonville. Fla., is principal underwriter. Among officers are: Louis A. Sowda, President; William B. Sowda, Treasurer; and Edward F. Sowda, SecretarY, all of Houston, Texas. Lebel Lode, Ltd. (2-531), Gravenhurst. Ontario, Canada, an Ontario corporation engaged in mining, milling and refining gold ores and developing gold mining properties, proposes to issue 250,000 shares of common stock at an aggregate price of $125,000. Guardian National Corp., Buffalo, N.Y. is listed as the underwriter. Among officers are: John J. McNab, Gravenhurst, Ontario, President-Treasurer and Manager; Thomas Stark, Rutherglen, Scotland, Vice-President and Assistant Secretary; Walter B. Kendall, Gravenhurst, Ontario, 8ecrotary. O'Sullivan Rubber Co., Inc. (2-532), Winchester, Va., a Delaware company engaging in the manufacture of rubber heels and soles, proposes to issue $630,000 in common stock. Underwriters are: Swart, Brent & Co., Inc.. New York, and It. J. Funkhouser, Inc., Hagerstown, Md. Among officers are: R. J. Funkhouser, Harrison, N. Y., President; R. F. Funkhouser, Gettysburg, Pa., Vice-President and Treasurer; and It. M. Hoffman, Gettysburg, Pa., Secretary. The Mengel Co (2-533), Louisville, Ks., a Committee calling for deposit certain first mortgage 7% serial gold bonds amounting to $2,958,600 in a proposed plan for re-organization or re-adjustment of The Mengel Co., manufacturer and dealer in lumber. Stock of the original issuer consisted of the following: Preferred, $100 per share par value-60,000 authorized33.603 shares outstanding; and common, Si per share par value-400.000 shares authorized-320,000 shares outstanding. Person authorized to receive notices relating to this registration statement is J. C. Dorman. c-o The Mengel Co., Louisville, Ky. The Mengel Co.(2-534), Louisville, Ky.,a Now Jersey corporation engaged in the manufacture and domestic and foreign sale of lumber and lumber products, proposes to issue 240,000 shares at a total aggregate price of S3,000,000. The shares are to be sold through the medium of subscription warrants to common stockholders at $12.50 per share on the basis of three such new shares for each four shares at present owned by the stockholders. The date of proposed public offering is subject to effective date of the registration statement and the stock listing requirements of the New York Stock Exchange. Among officers of the company are: C. C. Mengel, Louisville, President; J. C. Dorman, Louisville, Secretary; and V. H. Bryan, Louisville, Treasurer. Bondholders' Protective Committee for Worcester Investment Trust (2-535). 60 State St., Boston, a committee calling for deposits of certain first mortgage 6% sinking fund gold bonds in a proposed plan of re-organization or readjustment of The Worcester Investment Trust, 18 Oliver St.. Boston, the issue amounting to $780,500. Stock of the original issuer consisted of 7,000 shares of first preferred $7 cumulative; 1,450 shares of second preferred $6 non-cumulative; and 5,000 shares of common. Committee members are: Philip S. Dalton, Francis Peabody, and Hollis T. Gleason, Boston; and Heywood H. Whaples, Hartford, Conn. Hollis T. Gleason is Secretary of the Committee. Consolidated Funds Corp.(2-536), Wilmington, Del. and Jersey City, N. J., a Delaware investment corporation, proposes to issue 100,000 shares of $50 series prior preferred stock; 100,000 shares of $5 series prior preferred stock 500.000 shares of class A stock and 500,000 shares of common stock at a total aggregate price of $11,021,000. Among officers of the company are: Davis M. Milton, President; E.0. Huntington, Jr., Vice-President; Ralph E. Still, Secretary-Treasurer, all of New York. Noteholders Protective Committee (2-537), Richmond, Va., calling for deposits of notes first deed of trust on real estate, Henrico County, Va. for Hillcrest, Inc., a Richmond real estate corporation in a plan of re-organization or re-adjustment, the issue amounting to 8198,000. face value. Members of the committee are: Thomas S. Bowles, L. C. Jones, and Mrs. Leola B. Walling. Person authorized to receive notices is Allen G. Collins, 1210 Mutual Bldg.. Richmond, Va. Oyster Harbor, Inc.(2-538), Boston, a Massachusetts corporation, owning and developing real estate and operating golf club and recreational activities incidental thereto, proposes to issue first mortgage bonds of 8350.000. Among officers are: Fords W. Norris, Cambridge, Mass.. President; and Walter T. Belcher. West Medford. Mass., Secretary-Treasurer. Green Bay Building Corp. Re-adjustment Committee (2-539), Green Bay, Wis., calling for deposits of first and second mortgage bonds and non-par common stock of an aggregate face value of $376,003.50 in a re-adjustment plan for Green Bay iluilding•Corp. which had purchased land and awarded 59 contracts for a theater and commercial building which was under a 25-year lease to Green Bay Amusement Enterprises, Inc., a subsidiary of Midwesco Theaters, Inc. (a Fox Film corp., subsidiary). Original issuer held 10,000 shares of preferred stock and 3,500 shares of common stock. Members of the committee are: Henry B.Cleereman; William E.Riley; Fred 0.Schuette; Jules M. Parmentier, and A. B. Turnbull, all of Green Bay; and L. H. Joannes, DePere, Wisconsin. Person authorized to receive notices is Henry B. Cleereman, P. 0. Box 75, Green Bay, Wis. In making public the above lists the Commission said: In no case does the act of filing with the Commission give to a security the Commission's approval or indicate that the Commission had passed on the merits of the issue or that the registration statement itself is correct. Eighteen Money Experts Listed By Irving Fisher— Yale Professor Names Those Who Understand the "Real Meaning" of the Term—Prof. Sprague and . Col. Ayres Omitted from List—Messrs. Warren, Rogers, Kemmerer and Vanderlip Included. Prof. Irving Fisher of Yale University has listed only 18 men in the world "who understand the real meaning of money" in response to a request by the Consumers Guild of America, which made public his list on Dee. 25. It was noted in the New York "Times" of Dec. 26 that Prof, Fisher does not include himself, the guild points out, nor does he include Professor 0. M. W. Sprague, who recently resigned as adviser to the Treasury, or Colonel Leonard P. Ayres, Vice-President of the Cleveland Trust Co., a "most widely quoted authority." From the "Times" we also quote: Prof. Fisher, internationally known as an economist, as the author of "Fisher's Market Basket" and as an advocate of the commodity dollar, referred in a recent address to the few monetary economists who understood money. The Consumers Guild of America, through its President, E. C. Riegel, asked him to name "the 10." List Is Not Complete. "I have your letter of Dec. 7 in which you ask me to list the '10 persons in the world who understand the real meaning of money'," Prof. Fisher wrote in reply on Dec. 15. "I think I said 'very few' rather than'10,'and I would rath n* not try to make any complete list. In fact, I could not do so. "In the United States, in listing those who understand the real meaning of money, I would include among professional academic monetary economists at least the following: Prof. Harry G. Brown, University of Missouri. Prof. G. F. Warren and Prof. F. A. Pearson of Cornell University, Ithaca, N.Y. (Prof. Warren is monetary adviser to President Roosevelt). Prof. J. Harvey Rogers of Yale University, New Haven, Conn. Prof. Willford I. King, of New York University, New York City. Prof. John R. Commons of the University of Wisconsin, Madison. Wis. Dr. Warren M. Persons, 40 Fifth Avenue, New York City. Prof. Edwin W. Kemmerer, of Princeton University, Princeton, N. J. Prof. Cyril James, of the University of Pennsylvania, Philadelphia. Prof. John H. Williams, of Harvard University, Cambridge, Mass. Prof. Jacob Viner of the University of Chicago. Chicago, Ill. "There are doubtless several others whose names do not happen to occur to me just now, as well as still others, especially among younger economists, whom I do not even know. "Among the bankers are: Mr. Frank A. Vanderlip and Mr. George LeBlanc. There are also some business leaders. Foreign Economists Listed. "Among the foreign academic monetary economists there are Keynes of England, Cassel of Sweden, Frisch of Norway, Von Schulze Gavernitz of Germany, and among bankers, Reginald McKenna of England. "If you publish this list as from me, please quote the above fully." Frank A. Vanderlip is a former President of the National City Bank. George LeBlanc, a former Vice-President in charge of foreign exchange of the Equitable Trust Co., has frequently advised Senator Elmer Thomas of Oklahoma and was one of the organizers of the movement which recently brought Father Charles E. Coughlin of Detroit to New York to ina ak at a mass meeting at the Hippodrome in defense of President Roosevelt's monetary policies. The only foreign banker named by Prof. Fisher is Mr. McKenna, Chairman of the Midland Bank, Ltd., of London. The other Londoner on the list is J. M. Keynes. Prof. Gustav Cassell is one of the foremost economists of Sweden. Ragnor Frisch is Associate Professor of Economy and Statistics at the University of Oslo. He has been a visiting lecturer at Yale. Prof. Gerhardt von Schulze Gavernitz is head of the scientific department of the Institute for Intellectual Co-operation of the League of Nations. He has lectured at Yale. Questions Sent to Eighteen. Mr. Riegel announced that the Consumers Guild of America had prepared 15 questions on money which it was mailing to the 18 authorities named, and from the replies a symposium would be compiled and mailed to every member of Congress. "Everybody is talking 'money', yet no one seems to understand the meaning of it," said Mr. Riegel. "Prof. Fisher's list of 18 may make the world seem poverty-stricken in monetary knowledge, yet we are grateful for at least a few to turn to in this fog. Frank Vanderlip has said that 'the American people are economic illiterates.' Now he finds himself listed with the intelligentsia. I am looking forward with especial interest to his response to the questions." Purchase of $800,000,000 in Preferred Stock and Capital Notes in Approximately 4,500 Banks Authorized By RFC—Offering of 23% Debentures to Banks Issuing Preferred Stock to RFC-99% of Banks in Country Members of Federal Deposit Insurance Corporation—Statement by Jesse H. Jones. It made known on Dec. 31 by Jesse H. Jones, Chairman of the RFC that the latter had authorized the purchase of more than $800,000,000 in preferred stock and capital notes in approximately 4,500 banks. At the same time it 60 Financial Chronicle was announced that to these banks the Corporation was offering its 214% debentures, maturing Dec. 15 1935. Chairman Jones likewise stated that as a result of the preferred stock purchases, approximately 99% of all the banks in the United States are members of the FDIC. Regarding the offering of debentures, as above, it was noted in a Washington account (Dec. 31) to the New York "Times": If such an offer were widely accepted, it would open up a market for RFC debentures which have heretofore been sold to the Treasury, and thereby reduce demands on the Treasury for cash. Banks with surplus not otherwise invested, also would receive from the RFC 21,1,% interest, which would match against the 5% rate carried by the preferred stock or capital notes they have sold to the RFC. Additional information to the effect that the RFC had made authorization of $823,000,000 for the purchase of Preferred stock or capital notes in 4,524 banking institutions throughout the country was contained in a Washington dispatch, Jan. 2, to the "Times." The following is the statement given out under date of Dec. 31 by Chairman Jones. The RFC has authorized the purchase of more than $800,000,000 in preferred stock and capital notes in approximately 4,500 banks. This has been made possible through the leadership of President Roosevelt and the co-operation of governmental and State agencies, and the banks themselves. One result of these investments is that approximately 99% of all banks in the United State are to-day members of the FDIC and each individual deposit in these banks is fully insured up to $2,500. It is the purposa of the RFC to continue its preferred stock program until all banks in the United States have had an opportunity to put themselves in a strong capital position. The strengthening of the capital structure of banks, together with Federal Deposit Insurance, should dispel all fear of depositors and give bankers courage to go forward in making loans. Credit must be available if agriculture and industry are to prosper. Many banks are endeavoring to make loans, but some are continuing to force collection of the so-called slow loan, regardless of how secure the loan may be. This procedure must necessarily have a bad effect upon the market value of the security, regardless of its character, as well as upon the morale of the borrower. We must have confidence, not only in the President, but in our country and our values. As a means of co-operating with the banks which have issued preferred stock to the RFC despite their large surplus investment funds, the RFC is offering them its 211% debentures. This offer was made in the following telegram: To those banks from whom we are buying preferred stock or capital notes that have surplus funds for temporary investment we are offering our 234% debentures, maturing Dec. 15 1935. These debentures are fully and unconditionally guaranteed both as to interest and principal by the United States and are exempt principal and interest from all taxation except surtaxes, estate, inheritance and gift taxes now or hereafter imposed by the United States or by any Territory dependency or possession thereof or by any State. county, municipality or local taxing authority. Please advise if you wish to invest the proceeds of your preferred stock sale in these debentures. Chairman Jones was reported as stating on Jan. 2 that every application received up to and including Jan. 1 from banks which sought to strengthen capital structures to avail of the temporary insurance fund had been acted upon. Washington advices (Jan. 2) to the New York "Times" went on to say: It is the intention, however, to extend this aiding of banks to facilitate loans by them for advancement of the recovery program, and to qualify them for participation when the permanent insurance fund begins operation on July 1. It also was revealed at the RFC that while the capital notes it purchased in State banks do not carry voting power, as in the case of preferred stock, the RFC in its contracts with State banks not members of the Federal Reserve retained the privilege of making an examination at least once a year of each bank's affairs at the time of the State examination. Thus for the first time, except while the regulations set up during the National banking holiday existed, the Federal Government will possess a measure of supervision over many State non-member banks, as well as over those in the Reserve System. "Good Management" Stressed. Mr. Jones emphasized that in using its voting powers through preferred stock ownership, or any supervisory authority carried by its possession of capital notes, the RFC intended to have just as little to do with a bank's management as good business would permit. "Of course, we are responsible for this money," he added, referring to the huge authorization for preferred stock and capital note purchases. He said that the RFC held the majority voting power in only a small percentage of the banks in which it had bought preferred stock and that the Board of Directors had been so busy trying to get banks equipped for deposit insurance that it had not had time to give much consideration to the exercise of its voting rights. Of the total authorization for purchases of preferred stock or capital notes, $248,373,000 are for 3,391 State non-member banks. Applications from all types of banks total 4,970. Questions of Cummings in Post. The question of the extent to which the RFC might use its voting power came up with reports that Walter J. Cummings. now Chairman of the FDIC, might become Chairman of the Board of the Continental Illinois National Bank and Trust Co. of Chicago. In this bank the RFC authorized the purchase of $50,000.000 in preferred stock, a. clear voting control, since the common stock would be $25,000,000. The bank's directors were understood to have decided on another man for the Chairmanship and Mr. Cummings was pictured as the one suggested by the RFC. Chairman Jones said that the RFC had no candidate, but that the name of Mr. Cummings had been mentioned. He added that a committee of the bank's directors would come here next week to talk over the matter with tha RFC and other Government officials and perhaps reach a decision. Jan. 6 1934 Monthly Statement of RCC for December—Outstanding Loans on Dec. 31 Totaled $67,344,352—Fourth Distribution of $2,220,606 Made Dec. 30. The Railroad Credit Corpora ion has been able to make return distributions to participating carriers of $7,425,992, equal to 10% of the Fund created by the agreement to pool the proceeds to March 31 1933 of the rate increases allowed by the Inter-State Commerce Commission in Ex Parte No. 103, according to the financial statement of the Corporation as f Dec. 31 1933, which was filed today (Jan. 6) with the Inter-State Commerce Commission. The Corporation, in announcin this, added: The distributions have been made in four installments, the fourth and latest having been made on Dec. 30, at which time $2,220,606 or 3% was repaid. The 1933 contributions to the pool totaled $23,187,720. representing the emergency revenues earned between Nov. 1 1932 and March 31 1933. while loans aggregated $25,549,349. As the lending period terminated May 31, 1933, the Corporation has since that date been affairs, to the end that it may return to participants their liquidating its respective contributions. E. G. Buckland, President of the Corporation, in a letter accompanying the report and addressed to the participating carriers, says: The total loans made by the Corporation aggregated $73,691,368, as against the balance outstanding Dec. 31 of $67,344,528.65. The difference represents cash payments of $1,571,481.43, realizations from collateral of $558,006.32, and distribution credits of $4,217,351.60. The outstanding loans mature at various times through the years 1934 and 1935: and while, if necessary, they are subject to renewal for an additional period of not exceeding two years. in the discretion of the Corporation, it is the practice to require a curtailment of principal where the obligation cannot be fully discharged. Funds for distributions are available only from collection of principal of and interest on loans. Although the interest rate is well below commercial levels, being 2% per annum at present, the aggregate collections have been $1,723,324.58. In the seven months' period ending Dec. 31 1933, the Corporation'has been able to distribute 10% of the contributed fund. Such distributions required cash payments to non-borrowers of $3,063,344.76, and creditsTon the accounts of those indebted to the Corporation of $4,362,647.95, a total liquidation of $7,425,992.71. Following is the Corporation's statement of conditions as of Dec. 31: THE RAILROAD CREDIT CORPORATION. Report to Inter-state Commerce Commission and Participating Carriers As of Dec. 31, 1933. , Assets. Investment in affiliated companies—loans outstanding_ _ _ _ $67,344,528.65 Cash 255,129.17 Petty cash fund 25.00 Special deposit—reserve for tax refunds 547.762.50 Miscel. accts. receivable—due from contributing carriers.. _ 76.527.16 Interest receivable 252.557.27 Unadjusted debits 190.643.18 Total Liabilities. Non-negotiable debt to affiliated companies Unadjusted credits Capital stock Total •Emergency revenues to Dec. 31 1933 Less refunds for taxes Less distributions Nos. 1-4 Approved: E. R. WOODSON, Comptroller. Washington, 1). C., Jan. 2 1934 No. 22. $68,667,172.93 •$66,606,358.76 2.059,614.17 1,200.00 $68,667,172.93 $75,424.524.16 $1.392,172.69 7.425,992.71 8.818,165.40 $66.606,358.76 Correct: ARTHUR 11. CHAPIN. Treasurer. C. C. Davis Announces Reorganization of AAA—New Administrator Replaces Peek Appointees by Adherents of Secretary Wallace—Eight Sections Discontinued—Changes Described as Making for Efficiency. Thorough reorganization of the Agricultural Adjustment Administration to enable it "to deal more effectively and directly with major problems confronting American agriculture" was announced on Jan. 1 by Chester C. Davis,' who recently succeeded George N. Peek as Administrator. Press dispatches from Washington said that virtually every official who had been appointed by Mr. Peek was removed. Eight sections of the AAA were entirely eliminated, while other Peek appointees were replaced by men known to sympathize with the policies of Secretary Wallace, Assistant Secretary R. G. Tugwell and Mr. Davis. The new Administrator, in his official announcement, said that since the first rush of the emergency is over it is possible to institute economies in personnel. He added that the pending transfer to the National Recovery Administration of many codes for industries of "remote interest to the farmer also will enable the AAA henceforth to concentrate its efforts intensively upon problems of the most pressing and immediate concern • Volume 138 to agriculture. Most essential of these are adjustments in production needed to attain and maintain increased farm income." . The press release issued by the AAA on Jan. 1 detailed the changes, in part, as follows: Administrator Davis who, after long service to agriculture, was appointed two weeks ago to succeed George N. Peek, to-day announced the selection of three assistant administrators. They are Victor A. Christgau, H. R. Tolley, and Alfred D. Stedman. Mr.Christgau will be in direct charge of the Commodities Division. This Division is established to take over the functions of the Production Division and certain retained sections of the Processing and Marketing Division. To aid him in direction of the new and important Commodities Division. Mr. Christgau will have two assistants. They are Jesse W. Tapp of Henderson. Ky., and D. P. Trent, Director of Agricultural Extension in Oklahoma since 1927. Mr. Trent is appointed to aid Mr. Christgau in the direction of all the production adjustment programs for wheat, cotton, corn and hogs, dairying, and other farm products, which have been started or are being considered, Mr. Tapp will assist in directing marketing agreements and such codes as are not transferred to the NRA. Mr. Christgau is a former Representative in Congress from Minnesota. a graduate of the Minnesota College of Agriculture, and an overseas veteran of the World War, and has worked in close co-operation with Secretary Wallace and Mr. Davis since the AAA was organized. The work of the whole Administration will revolve around the Commodities Division. Mr. Tapp has been in charge of the general crops section and will continue in charge in addition to his new duties. He was formerly secretary of the New England Research Council. Mr. Trent has been connected with the Extension Service in Oklahoma since 1919, is a graduate of the Oklahoma Agricultural and Mechanical College, and has been prominent in agricultural affairs of the Southwest for years. H. R. Tolley of Berkeley, Calif., dean of the agricultural economists in the Department of Agriculture, and Director of the Giannini Foundation. is appointed to head a new Planning Division. In this capacity Mr. Tolley will work out an alignment of different production-adjustment plans, assisting Mr. Davis in maintaining a general advance along the broad front of agriculture. With 15 years' service in the Department of Agriculture, Mr. Tolley will correlate activities of the AAA with those of other branches of the Department of Agriculture. The replacement crops section, headed by Joseph F. Cox, will be placed in the Planning Division. The general reorganization has made possible the discontinuance of eight sections, due either to elimination of their duties by transfer of codes, to the merger of the Processing and Marketing Division with the Production Division to constitute the new Commodities Division under Mr. Christgau, or to other reasons. Discontinued Sections. The discontinued sections are: Food products, fisheries, beverages, foreign trade. imports, code analysis, special commodities, and the office of the Administrative Officer. The special commodities section is transferred to the Comptroller's Office. Major Robert M. Littlejohn, loaned by the United States Army to head that Section, is expected to return to the army when the work of the section has been completed. These changes are expected to make possible the contraction of personnel into a more economical effort in direct relation to agriculture. Twelve of the sections will be continued under the direction of their present section chiefs. "It is in these sections," Mr. Davis said, "that the major programs undertaken or being considered by the Administration. originate. They are our working units, where the immensely important. painstaking, and arduous enterprises for assistance to farmers are proposed and developed. The service to agriculture of these section chiefs and their assistants, and that of the Consumers' Counsel in behalf of the consumers of the country, has been of high character and sincere devotion to duty." Sections To Be Continued. Sections which will continue under the direction of these chiefs are: Cotton, Cully A. Cobb; Tobacco, John B. Hutson; Wheat. George E. Farrell; Corn and Hogs. Dr. A. G. Black; Dairying, Acting Chief J. H. Mason; General Crops, Jesse W. Tapp; Sugar and Rice, A. J. S. Weaver; Cattle and Sheep, Harry Petrie; Replacement Crops, Joseph F. Cox; Meat Processing and Marketing, Guy C. Shepard; Grain Processing and Marketins, Frank A. Theis, and Contract Records, W. B. Jenkins, with Dr. Frederic C. Howe as Consumers' Counsel. United Press advices from Washington on Jan. 1 added the following information regarding the changes in the AAA. Peek disciples to go included: Smith W. Brookhart, AAA foreign trade expert, who spent considerable time giving optimistic interviews about Soviet trade possibilities. The former Senator from Iowa is expected to join Mr. Peek in foreign trade studies. General William I. Westervelt. Chief of the Marketing and Processing Section, who went back to Chicago and Sears, Roebuck & Co. He left his lucrative mall order house position at Peek's behest last spring. James D. Dole, Hawaiian pineapple "king," who abdicated as Chief of the Food Division. Oscar Johnston, Chief of the Finance Section and cotton planter from Scott, Miss., who said he wanted to devote all his time to the cotton program. Several lesser lights also were removed, together with about 100 assistants and clerks, in what Cheater C. Davis, the new Administrator, said was an efficiency move. Davis closed the food products, fisheries, beverages, foreig trade, special commodities, imports, code analysis and adminis ativ ect ans. all of which had been organized by Peek. ----.4,-- osits Up to $2,500 in 13,423 Banks Insured in Federal Deposit Insurance Corporation—Report Submitted to President Roosevelt by Chairman Cummings. . In a report to President Roosevelt under date of Jan. 1, Walter J. Cummings, Chairman of the FDIC indicated that eposits up to $2,500 had been insured in 13,423 banks; ( 97% 1 of the total number of deposits are insured in full, he said. According to Chairman Cummings 141 banks were found ineligible for insurance. His letter to President • . Roosevelt follows: , • Washington, D. C., Jan, 1 1934: Dear Mr. President: Pursuant to your request I have the honor to submit- to you a brief report of the work of the FDIC. . 61 Financial chronicle We have insured 13,423 banks The insurance covers deposits up to $2,500 until July 1 1934, when the permanent provisions of the Act become operative. A careful survey shows that 97% of the total number of depositors are insured in full. We found 141 banks ineligible for insurance. A number of them may be insured by making certain corrections. In other words, approximately 1% of the applying banks could not quality. This remarkable record was due to the assistance given by the RFC by the purchase from banks of preferred stock and capital notes. I believe that the insuring of bank deposits will not only be of incalculable value in restoring public confidence in the nation's financial Institutions now strengthened, but that it will be of tremendous assistance in hastening the return of prosperity. It will banish the fear of the depositor as to the safety of his money and, from the banker's point of view, the elimination of the possibility of sudden and heavy withdrawals will make possible the expansion of credit for legitimate purposes. The Federal Government has subscribed $150,000,000 to the capital of the FDIC, the Federal Reserve Banks have subscribed $140,000,000 and in assessments the corporation has received over $37,000,000, making a total of $327,000,000 available funds for immediate use of the corporation. I should like to express my real appreciation of the untiring efforts and clog? co-operation shown by the other two directors of the corporation, Mr. J. F. T. O'Connor, Comptroller of the Currency, and Mr. E. G. Bennett. The immediate task you entrusted upon your directors has been accomplished. We now direct our efforts to the advances of a great work— protect deposits and permit banks to function as useful instruments in the recovery program. Thanking you for the opportunity to serve in this way. I am. Very sincerely yours, WALTER J. CUMMINGS,Chairman- President Roosevelt's reply follows: The White House. Washington, D. C., Jan. I 1934. My Dear Mr. Cummings: I congratulate you and Mr. Bennett and Mr. O'Connor because you have in these few months accomplished with complete success a gigantic task which the pessimists said could not possibly be done before Jan. 1. That 97% of the bank depositors of the nation are insured will give renewed faith. I am also happy to know of the fine co-operation given to you by the RFC. Very sincerely yours, FRANKLIN D. ROOSEVELT. From a Washington dispatch (Jan. 1) to the New York "Times," we take the following: On Nov. 22 there were 16,140 banks of all kinds in the country. Of these 2,083 were on a restricted basis. Of the 14,057 unrestricted, 566 were mutual savings banks. On that basis about 953 % of all the unrestricted banks are now members of the insurance corporation. Some Banks Already Protected. A number of banks did not apply for membership in the corporation for one reason or another. Some were operating in areas where State Insurance already existed and did not see fit to duplicate this protection. Many mutual savings banks, due to their special character, did not apply. Thus, it was pointed out to-night, if banks already insured under State laws and banks otherwise protected were eliminated from the total. virtually every unrestricted bank in the country was now carrying the Federal corporation's protection for its small depositors. The restricted banks, if otherwise able to qualify, are permitted to carry insurance on their free deposits. National banks and Stae banks members of the Federal Reserve System are compelled to be members of the corporation. With other banks the insurance is optional. Beginning July 1, when the temporary insurance expires, a permanent plan goes into effect. This will guarantee all deposits up to $10,000 in full; 75% of deposits from $10,000 to $50,000, and 50% of deposits in excess of $50,000. Bank in Englewood, Ill., Member of Federal Reserve System, Declines to Join Federal Deposit Insurance Plan. On Jan. 2 Associated Press advices from Washington stated: Walter J. Cummings, Chairman of the FDIC, said with satiaraction to-day, that only one Federal Reserve member bank had refused to become a part of the system of guaranteed deposits. All the others and more than 7,000 State non-member banks were under the protection of the insurance plan, which until July 1, guarantees all accounts of $2,500 or lees, and which, thereafter, will cover deposits of an even larger amount. As for the one staying outside, the First National of Englewood, Ill., officials expect prompt settlement of its case when the time comes. Unless It changes its mind by July 1 and buys its allotted share of Deposit Corporation stock the law compels the Federal Reserve Board, Governor Black said to-day, to expel it from the Reserve System. Protection Under Deposit Insurance Provisions of Glass-Steagall Bank Act—Analysis by National Industrial Conference Board. The temporary guaranty of deposits that is to prevail from January to July 1934, under the provisions of the Banking Act of 1933, will in case of bank suspension, said the National Industrial Conference Board, provide for immediate payment in full of 96.5% of the accounts and on the average for payment of 14.9% of the amounts credited to the remaining accounts. The permanent system to be in-' augurated in July 1934, will provide for payment in full of, 99.3% of the accounts and for payment of 64.8% of the amounts credited to the remaining accounts. These conclusions made public Oct. 22 were reached by the National Industrial Conference Board in an analysis of igures compiled by the Federal Reserve Board showing the 62 Financial Chronicle deposit accounts of licensed member banks of the Federal Reserve System in May 1933. The Board went on to say: These banks contained about 80% of the deposits in all operating banks in the United States. Some of the non-member banks will no doubt avail themselves of the deposit guaranty' provided by the banking law of 1933. Their addition will swell the number of accounts fully insured more than the amounts credited to them. The extent of the protection afforded to larger accounts would not be greatly altered. The investigations of the Federal Reserve Board showed that 96.5% of all accounts were for amounts less than $2,500, and that such accounts contained 23.7% of bank deposits. Accounts of over 850,000 numbered only 1-10 of 1% of all accounts but contained 44.6% of the deposits. Average accounts were $663 in National banks and $1.069 in State member banks. Exclusive of the Second Federal Reserve District, New York, the average for National banks was $586 and for State member banks $623. The State member banks are predominantly the strong banks of the State systems with large deposits. About 1,700 member banks in New England and the Middle Atlantic States have deposits of over $13,300,000,000 in a total of $23,500,000,000, while the remainder of the deposits is found in about 3.800 banks in other parts of the country. Moreover, the two sections named have $7,100,000,000 of the total of $10.500,000,000 in accounts of over $50.000. The Middle Atlantic division, which includes the financial center of the nation accounts for nearly onehalf, 49%, of all bank deposits. The proportion of the deposits represented by accounts of $2.500 or less is only 17.6%. In no other division is this proportion less than one fourth, and in two divisions, East South Central and Mountain, it exceeds one-third. On the other hand, in the Middle Atlantic division 55.6% of the deposits fell to accounts exceeding $50,000 each. Such accounts represented 39.4% of deposits in the East North Central division and exceeded one-third of the deposits in New England and in the West North Central division. Where such accounts were relatively least numerous, in the East South Central division, they represented less than one-fourth, 23.4%. of the dePosite. The temporary insurance guaranty effective January to July 1934. promises 100% protection for the first $2,500 or less of all deposit accounts. Averaged for the entire deposits reported by the Federal Reserve Board this would protect deposits to the extent of over 35%. The permanent guaranty effective July 1 1934. is at once more generous and more complicated. All accounts under $10,000 are to be protected 100%; accounts of $10,000 to $50,000 are to be protected 100% on the first $10.000 and 75% on the excess over $10.000; accounts of over $50.000 receive 100% protection on the first $10,000. 75% on the next $40.000 and 50% on the excess over $50,000. Averaged for all deposits reported by the Federal Reserve Board, this would give a protection of 78.7%. By geographic divisions this computed extent of protection varies from 73.6% in the Middle Atlantic division to 88.3% in the East South Central division. We Are Entering a New Era, President Roosevelt Says in Letter to Mrs. Grace Poole--"Have Crossed the Threshold" and Have Opportunity to Improve Conditions for 120,000,000 People, He Adds. President Roosevelt, in a letter written on Dec. ,28 to Mrs. Grace Morrison Poole, President of the General Federation of Women's Clubs, declared that "we enter upon the new year with a realization that we have crossed the threshold of a new era. We have the opportunity of improving conditions and making our country a better home, materially and spiritually, for more than 120,000,000 people." The letter reads as follows: The dawn of a new year always is a challenge. It suggests new opportunities. It is characterized by inventories, accountings of past performances, making of new estimates and resolutions. We enter upon the new year with a realization that we have crossed the threshold of a new era. We have the opportunity of improving conditions and making our country a better home, materially and spiritually, for more than 120,000,000'people. To do this will require the concerted aid and continued efforts of many forces—of government, Federal, State and local; of social, spiritual, industrial and financial agencies. I welcome this opportunity to express my thanks for the splendid cooperation which you and members of the General Federation of Women's •Clubs have given to me and the Government. Your support of the measures initiated by the Government to end the terrible depression and to establish social justice and economic security for all of our people has been and is a real influence for the good we have been able to accomplish. I ask that we, men and women of the present and the new generations, continue to work together. With such united effort, we can attain strength and force necessary to cure existing ills and give us a new national health and prosperity. Federated Textile Industries, Inc. (Successor to the Silk Association of America, Inc.) Elects New Officers. Paul C. Debry was elected President of the Federated Textile Industries, Inc., successor to the Silk Association of America, Inc., at the first meeting of the board of directors of the new organization held on Dec. 29. G. H. Come was elected Vice-President, and Ramsay Peugnet, Executive Vice-President and Treasurer. I. L. Blunt will act as Secretary. Applications for membership as affiliated associations were accepted from the following groups: Broad Goods Weavers Association, Fashion Fabrics Council, Ribbon Manufacturers of America, Tie Fabrics Association, Silk Thread and Floss Industry, Thrown Yarn Council, Woven Label Manufacturers Association. All former members of the Silk Association who are not connected with any of the affiliated associations will be eligible for associate membership in the Federation. The executive committee of the new organization Will comprise: Paul C. Debry, Duplan Silk Corporation; G. H. Conze, Susquehanna Silk Mills; B. Edmund David, David Jan. 6 1934 Silks, Inc.; Irving Levy, Century Ribbon Mills, Inc.; Ramsay Peugnet, formerly Executive Vice-President of the Silk Association. W. E. Humphrey Carries Presidential Removal Order to Court—Former Federal Trade Commissioner Contends Roosevelt Action Was Without Warrant of Law. William E. Humphrey, former member of the Federal Trade Commission who was removed by President Roosevelt, filed a petition in the United States Court of Claims on Dec. 28 attacking the President's right to remove him because their minds do not "go along together." Mr. Humphrey contended that the removal was without warrant of law and was void. A Washington dispatch of Dec. 28 to the New York "Times" outlined his contentions as follows: The "supposed vacancy" to which George C. Matthews was appointed on Oct. 27 does not exist and he is wrongfully possessed of the "powers, privileges and emoluments of the office." Mr. Humphrey says in contending that $1,251.39 as salary is due him and unpaid from Oct. 8 to Nov. 30, besides that for December. William J. Donovan, former Assistant Attorney-General, is counsel for the plaintiff. A member of Congress for 14 years, Mr. Humphrey, a Republican, was appointed to the Commission by President Coolidge in 1925. reappointed by President Hoover for a seven-year term ending Sept. 25 1938, and on Oct. 7 was removed by President Roosevelt, who had attempted to persuade him to resign. Mr. Humphrey contended that Congress intended the Commission to be "an independent semi-judicial body at all times," the members of which Stere subject to removal by the President only for "inefficiency, neglect of duty or malfeasance in office." President Roosevelt expressed only his feeling that the work of the Commission "can be carried out more effectively with the personnel of my own selection," and acknowledged that no reflection upon the Commissioner was involved. Mr. Humphrey told the Commission that he refused to recognize as valid the President's order of removal, and asked for a statement of the Commission's reasons, if any, should it decide to deny him the right to participation in its deliberations. The Commission informed him that it had "recognized the validity of the Executive order." The Government has 40 days in which to file an answer presenting a case to be decided on its merits by the Court, or a demurrer, denying the existence of any legal cause of action. The only appeal from the Court of Claims is to the Supreme Court, where the case probably wW be sent for ultimate decision. The removal by President Roosevelt of Mr. Humphrey as a member of the Federal Trade Commission was referred to in these columns Oct. 14, page 2744. G. S. Ferguson Jr., Becomes Chairman of Federal SiATrade Commission Succeeding Charles H. March. The Federal Trade Commission on Dec. 29 designated Commissioner Garland S. Ferguson Jr., as its Chairman for the year 1934, to succeed Chairman Charles H. March. The Commission's announcement said that Mr. Ferguson's new term as Chairman begins Jan. 1 under the Commission's rotation policy, which provides that Commissioners shall serve as Chairman for one year in the order of their seniority. Survey of Platinum Industry in 1933 by Charles Engelhard of Baker & Co., Inc.—Gold Restrictions and Its Price Gyrations Stimulate Interest in Platinum. Surveying the platinum industry in 1933, Charles Engelhard, President of Bakor & Co., Inc., points out that "the price gyrations of the yellow metal, together with the restrictions upcfn its procurement for industrial purposes, have stimulated increased interest in the platinum group, a trend which is the natural outgrowth of the vogue for white metals, and which has been further accelerated by several striking demonstrations of new uses and of new methods of fabrication." According to Mr. Engelhard, "world consumption of platinum metals during 1933 can be conservatively estimated at 175,000 ounces, compared with approximately 75,000 ounces in 1932." He adds: "Reflecting the accelerated activity of business generally, this concurrent movement of the metal reaffirms the importance of platinum to industry, and for that matter, through the production of nitrates from the air, to the farm." In part, Mr. Engelhard also says: Stocks of platinum which had accumulated during the depression years have presumably been reduced, but an accurate balance of the situation cannot be made at this time. Data on the Russian situation are unavailable. An interesting development was the report front Moscow that the Soviet Government was considering the adoption of a platinum coinage for the use of foreigners during their stay in Russia. This report was commented on in the European press, but it has remained unofficial so far. Palladium has been an important factor in this renewed activity in the platinum field. The electrical industry has used it to replace gold in medium duty contacts, and in dentistry the while color of the platinum metal alloys has stimulated the replacement of gold by palladium. As the natural white gold, this platinum metal is winning increased acceptance for rings, watch cases and other fabricated jewelry. . . . Activity in the rayon industry has stimulated a demand for rhodium. platinum and palladium alloys in the manufacture of spinnerets; platinum metal alloys are replacing the gold nibs in fountain pens, and the catalytic activity of platinum is creating a market for this metal in new types of pocket lighters and in heaters for automobiles where nameless combustion is required. Rhodium electroplates are being widely used for a non-tarnishing Volume 138 Financial Chronicle white finish for jewelry, as well as for surfacing the five-foot reflectors of the new searchlights for the Navy. Loans Advanced by Federal Land Banks Used to Reduce or Refinance Farm Debts. Of the $123,174,109 loaned by the Federal Land Banks between May 1 and Dec. 23, 85 to 90% of the money advanced was used by the borrowers to refinance existing indebtedness, according to a statement issued Jan. 1 by the Farm Credit Administration, which said: In addition to handling first mortgage loans as usual, the Federal Land Banks also have loaned $59,287,526 from the $200,000,000 appropriated by the last Congress to relieve the pressure of farm debts. Since the second mortgage loan, known as a Land Bank Commissioner loan, when added to any other indebtedness on the farm or of the farmer cannot exceed 75% of the appraised, normal value of the property offered as security, it has been necessaxy for borrowers who are in debt for a larger amount than can be so borrowed to secure a scale-down or adjustment of their debts to the point where the loans will refinance all their indebtedness. Of the farmers securing Commissioner's loans, 17.6% have reported to the FCA that their creditors granted a reduction in the amount of their loans before they were refinanced with a Commissioner's loan. Of those obtaining such reductions, the amount of the reduction averaged 23% of the amounts which they owed. On the first mortgage Federal Land Bank loans the amount of voluntary reductions, of course, was much smaller— only 5.3% of the farmers obtaining such loans reported a reduction in their debts as a result of such loans and the average of such reductions amounted to 18.4% of the amount owed. Reports received late in November and early December indicated an increase In the percentage of farmers obtaining voluntary compromises with their creditors and the amounts compromised. PWA Allots $25,000,000 to Inaugurate Purchase of Submarginal Land—Unprofitable Farms Will be Taken Over, Reforested and Used for Cultivation of Wild Birds-40,000,000 to 50,000,000 Acres to be Acquired. The Public Works Administration on Jan. 3 announced the allotment of $25,000,000 as the initial allocation for the removal of submarginal lands from commercial crop production, under a plan approved by President Roosevelt at the suggestion of Rexford G. Tugwell, Assistant Secretary of Agriculture and concurred in by Secretary Wallace. The program contemplates the return to forest or non-crop status of between 40,000,000 and 50,000,000 acres unfit for farming. Details will be worked out by the Departments of Agriculture and Interior in consultation with other agencies. The $25,000,000 allotment went to the Surplus Relief Corporation, whose broad powers enable it to execute such a program. We quote further data on the project from a Washington dispatch of Jan. 3 to the New York "Times": In the selection of lands, it was stated, there will be taken into consideration new lands that may be brought into cultivation under more advantageous circumstances. Submarginal lands taken out of production will be used for additions to the national domain, Indian reservations, national forests and Parks. The three major areas in which it is understood the taking over of the worst farm lands will first be undertaken include sections of the Eastern Appalachian highlands and coastal plain, the cut-over timberlands along the Great Lakes and the arid region of the Western Great Plains A plan for the diversion of some of the marginal lands for the breeding of migratory and upland game birds was also offered by Secretary Wallace. With the approval of President Roosevelt, Mr. Wallace appointed a Committee of three to outline plans which it is believed will give immediate employment to several thousand men and permanent rural employment to a much larger number. Restoration of upland game birds, it was announced, offers an answer to two questions, what to do with a substantial part of the acreage taken out of crop production and how to increase farm income quickly and profitably. Game Birds Held Cash Crap. "Game birds are an annual cash crop which should yield the farmer at least enough to pay his taxes, and in many instances considerably more," the Department of Agriculture said. "Full development of our game-bird resources should give profitable full-time rural employment to from 30,01:10 to 40.000 men and utilize immediately about 15,000,000 and eventually 50.000,000 or more acres of land." The Committee named by Secretary Wallace is made up of Thomas H. Beck of Wilton, Conn., Chairman; J. N. Darling of Des Moines, Iowa, and Aldo Leopold, head of the Department of Wild Life Conservation of the University of Wisconsin. Mr. Darling has been a member of the advisory board created under the Migratory Bird Treaty Act. $324,428,488 Expended for Federal Relief in Seven Months—H. L Hopkins Estimates $600,000,000 Fund Voted by Last Congress Will Be Exhausted in April—Relief Needs Up 6% in November, Smaller Rise Than in Other Depression Years. A total of $324,428,488 has been expended by the Federal Government within seven months for the relief of destitute unemployed throughout the country, according to Washington advices of Dec. 31 to the New York "Times." The last Congress appropriated $500,000,000 for this purpose, of which half was to match State and municipal relief expenditures, while the rest was to be used in emergency allotments. Harry L. Hopkins, Federal Relief Administrator, reported on Dec. 18 that relief needs and expenditures rose between October and November but that the increase was less proportionately than in previous depression years. We quote from the "Times" dispatch above referred to regarding the status of the relief fund at the end of 1933: 63 When Mr. Hopkins took office on May 22 it was estimated by officials of the Reconstruction Finance Corporation that 4,000,000 families, representing a total of about 18,000,000 persons, were receiving relief from public and private funds. By June 30 grants aggregating $51,331,731 had been made to 45 States and the Territory of Hawaii. These were soon extended to include all of the States and four Territories. Discretion grants were made to States to meet emergencies with which they were unable to deal even in part. Included in the aggregate expenditures from the Federal fund were allotments amounting to $3,775,555 for the relief of transients, $1,721,801 for educational programs, and $273,344 for self help and barter. The other allotments were expended by the States, with the approval of the Administrator, for direct relief, work relief and in the purchase of surplus foodstuffs for distribution to needy families, which began Sept. 25, and was taken over and carried on by the Federal Surplus Relief Corporation,5al .so headed by Mr. Hopkins, since ieation Its creation for the purpose on Oct. It was announced on Dec. 29 that 114,423,733 pounds of such surplus foodstuffs, including flour, butter, pork, dried apples and beans, had been distributed to supplement and improve relief standards in various parts of the country. Clothing, bedding, and other necessary articles also have been provided, and assistance rendered to the sick in their homes. Mr. Hopkins estimates that the unexpended balance of $175,571,512 of the Emergency Relief Fund will last until April 1, but that another $100.000,000 will then be required to carry on unemployment relief until June 30. the end of the fiscal year. Mr. Hopkins' report on November relief expenditures was noted as follows in a Washington dispatch of Dec. 18 to the "Times": Preliminary reports for 135 cities and urban counties in 45 States and the District of Columbia, which contain 65% of the urban population of the United States, indicated an increase from 1,526,737 to 1.650,862. or 8%. In the number of families on relief. A 6% increase in expenditures from $35,695,851 in October to $37,852,576 in November was reported. Excluding New York and Chicago, reports for the remaining 133 localities showed an increase of 7% in number of families and non-family persons receiving relief, while total obligations incurred increased 11%. As against these figures are the seasonal increases reported for a period of four years prior to 1933. showing October-November changes ranging upward from 10% in 1932 to 29% in 1930 in the number of families on relief, and an increase in expenditures ranging from 17% in 1931 to 28% In 1932. In New York, between October and November of this year the number "on relief" rose from 180.643 to 216,972, or 20%. with a 1% increase in expenditures, from $7.151,973 to $7,239,905. Ofthe 1,659,335 cases which received relief in 119 cities during November. 447,210, or about 28%,were transferred to Civil Works projects by December, Mr. Hopkins said. With 4,000,000 Civil Works employed throughout the country being paid with Federal checks, the CWA has asked all State administrations to "stagger" pay-days to relieve banks. Five Million Men Re-employed as Result of Public Works Program, Secretary Ickes Reports to President—Allocations Have Almost Exhausted $3,300,000,000 Fund—Highway Construction Well Advanced. More than 5,000,000 men have been re-employed as a result of the Public Works Administration program, according to a report to President Roosevelt submitted on Dec. 29 by Harold L. Ickes, Secretary of the Interior, who reviewed the first six months of his administration as Federal Emergency Administrator of Public Works. On the previous day (Dec. 28) Mr. Ickes announced allocations for Federal and non-Federal works projects totaling $83,931,892, and revealed that of the $3,300,000,000 public works fund originally appropriated by Congress all but $143,966,905 had been allocated. The Bureau of Public Roads of the Department of Agriculture reported on Dec. 28 that the public works highway construction was well advanced, with contracts being let at high speed. On Dec. 23, the Bureau said, there were 128,653 men at work on public highways. A Washington dispatch of Dec. 29 to the New York "Herald Tribune" summarized the principal features of Mr. Ickes' report to the President as follows: The document, which supplemented his annual report on the Department of the Interior presented to the President on Dec. 18, reviews the processes of the Administration, sums up its general effects and points to the advantages gained through co-operation with the more recently formed Civil Works Administration. "A little less than six months have elapsed since we embarked upon a $3.300.000.000 emergency program of public works authorized by Congress," Mr. Ickes said in presenting the report. "The total number of men thus re-employed by all agencies financed by PWA funds has passed the 5.000,000 mark. "Another army of men now unemployed is assured of wages this coming year as the result of the allotment to 10,000 projects of almost all of the $3.300,000,000 voted by Congress last June. On these strictly public works construction projects, exclusive of the OWA and the CCO projects. 710.540 men were employed by actual count on Dec. 9. This figure Is now approaching the million-man mark and will continue to mount as a result of action already taken." Recent surveys, according to Secretary Ickes, show a marked increase In the number of construction contracts resulting from PWA loans and grants. Work already under way on Federal projects alone involves expenditures amounting to well over $700,000,000, while on Dec. 9 additional project contracts were under advertisement to be awarded within 30 days. Simultaneously, bond purchase contracts and grant agreements were sent by the Administration to more than 650 non-Federal applications, including corporations eligible for loans under the NIRA. The total allotment to such non-Federal projects exceeded $600,000,000. 41111 The Secretary also pointed with price to the early steps taken in the attempt to eliminate slum districts and construct modern low-cost housing centers in their place. Approximately $50,000,000 already has been 64 Financial Chronicle apportioned for that purpose, he said, in addition to the $100.000,000 turned over to the Public Works Emergency Housing Corporation created by the PWA to facilitate the project. New York Supreme Court Upholds State NRA Statute Setting Maximum Hours and Minimum Pay—First Decision of Kind Grants Injunction to Union. The Supreme Court of New York on Jan. 2 handed down the first decision upholding the statute passed at the special session of the State Legislature incorporating the requirements of the National Recovery Administration as to maximum working hours and minimum wages. Justice William T. Collins gave the decision in a suit against the Independent Theatre Owners' Association and its so-called "company union," the Allied Motion Picture Operators' Union, Inc. The Court granted to Local 306 of the Motion Picture Machine Operators' Union an injunction restraining the independent owners from violating the provisions of the code. It directed that the case be tried Jan. 24 "because of the importance of the issues to speed their final determination and to minimize any harm which the preliminary injunction may occasion." The New York "Times" of Jan. 3 added the following details of the ruling: The Court directed that the plaintiff union, which sued through its President, Harry Sherman, to give a bond of $15.000 to pay any damage the defendants may suffer if the injunction is denied eventually. Local 306 also asks $1,000,000 damages. The injunction was opposed on the ground that the motion-picture code has not been filed with the Secretary of State, and that accordingly the State law incorporating the NRA program is barred from operation. It was also argued that in the regime of Sam Kaplan, former President, the plaintiff union, its officers and members had been guilty of violence. On this joint, Justice Collins said: "Those presently entrusted with the management of Local 306 proclaimed the termination of the baneful if not criminal activities of the Kaplan regime, and announced the pursuit henceforth of lawful and ethical policies. Regarding this element of the case, I conclude that if Local 306 is right in the present controversy the fact it has been adjudged wrong in others should not work a forfeiture of the enforcement and protection of the right." "The co-operation which the State extends to the Federal Government by Chapter 781, is more than the mere passage of a resolution pledging allegiance to the Federal Government," Justice Collins went on. The Court stated that he did not regard as "fatal to jurisdiction" the omission to file the code with the Secretary of State pursuant to a section of the law. Justice Collins said that Section 3 "dispels any doubt as to the jurisdiction of this Court" and stated,"That the conduct of the association members in lowering the wages and increasing the working hours of its projectionists adversely affects members of Local 306 is as self-evident as the truism that the strength of a chain is adversely affected by a weakened link." Samuel Birnbaum, counsel for Local 306, sought the injunction on the ground that after the idenpendent theatre owners had organized last May, and had signed the NRA, they formed their own union and made a 10-year agreement with its members, after which they discharged the plaintiffs members, and then increased working hours and decreased pay. "If the President's program is to be vitalized and made efficacious, if it is to be more than a rostrum entreaty, then all who come within its purview must adhere to its mandates," said the opinion. "The code seeks to invest the recovery program not only with lips but a heart and a conscience, and a strong arm to bludgeon—with legal process if need be— the timid, the recalcitrant, the shirker and the dodger." United States District Court at Hartford Grants Injunction in NRA Code Case—Federal Judge Restrains Enforcement on Five Connecticut Cloak and Suit Firms Pending Hearing Jan. 16—NRA Officials Question Court's Authority. A temporary injunction restraining General Hugh S. Johnson, Recovery Administrator, the Code Authority of the Suit and Coat Indthrtry, and F. S. Bergin, United States District Attorney of Connecticut, from enforcing provisions of the code for the industry in the cases of five Connecticut manufacturers was granted on Jan. 2 by Judge Edwin S. Thomas in the United States Court at Hartford, pending a hearing on Jan. 15. The restraining order was served on Mr.Bergin. Action for a permanent injunction was brought by Philip Scapellati, the Independent Cloak Co., Inc., and Sokol Brothers, Inc., of New Britain, Conn., and the Parisian Garment Co. and the Biltright Garment Manufacturing Co. of Bridgeport, Conn. Under the terms of the injunction the five firms are permitted to pay less than the minimum wage prescribed in the code and the NRA and the Code Authority are enjoined from refusing to issue NRA labels to the plaintiffs. NRA officials, when advised of the suit, informally questioned the authority of the court to issue the temporary restraining order on the ground that Federal district courts generally have no injunctive power outside their own territory. A dispatch from Hartford to the New York "Times" on Jan. 2 added the following information regarding the suit: Judge Thomas issued the order on the basis of prima facie evidence contained in affidavits. The manufacturers affirmed that the Code Authority divided the country into Western and Eastern sections, with 81 cents as the minimum wage for the Eastern section and 40 cents for the Western. Baltimore was placed in the Western area, thereby giving manufacturers in that city an unfair advantage over the Connecticut firms, inasmuch as the market for both Connecticut and Baltimore companies is New York. Jan. 6 1934 The complainants maintained that the code division of the country is "arbitrary, capricious, unreasonable and without foundation in fact or in law," constituting a "confiscation of property without due process of law, a deprivation of liberty of contract and unlawful discrimination between citizens of the United States." It is further averred that the code amounts to "an unlawful interference with the process of manufacturing and inter-State commerce contrary to the Constitution of the United States." Judge Thomas, in issuing the temporary injunction, said evidence at the hearing might completely rebut that in the affidavits. The restraining order was issued pending a hearin on Jan. 15 by Judge Edwin S. Thomas. Blue Eagle Adopted Under Presidential Agreements to Continue Under NRA Permanent Codes. The Blue Eagle, symbol of compliance by employers under Presidential agreements before NRA codes were permanently adopted, will not be discarded, it was indicated in a dispatch from Washington Dec. 31 to the New York "Times", which added: Those who pledged themselves to the NRA will continue to display the Recovery symbol under the permanent codes. While there is nothing mandatory about displaying the Blue Eagle. the Administration is anxious that this be done to show the progress of the Recovery drive. Only a few codes compel exhibition of the symbol. The garment workers' charter, for example, stipulates that the Blue Eagle must be attached to clothing made under that code. Retailers Assessed for Financing Operation of NRA Code. Under date of Dec. 12, Associated Press advices from Washington said: As a means of financing operation of the Retail Trade Code Authority, every retail employer will contribute 25 cents a year for each local employee. under regulations made public by the National Recovery Administration. The local retail authority may make additional assessments, but in no case shall the total assessment against the employer be more than $1 annually for each worker. The employees themselves are not required to contribute anything. Retailers will receive new NRA insignia as soon as they execute agreement forms and pay assessments. The insignia will carry the Blue Eagle. the words "We do our part" and the name of the division of the trade in which the individual retailer is engaged. Publishers' Code Contains Guarantee of Freedom of Press—General Johnson So Assures Representative Ludlow. An assurance that the constitutional guarantee of the freedom of the press has been included in the Publishers' Code, which is now before President Roosevelt for his consideration, was given last week by General Hugh S. Johnson, Recovery Administrator, in a letter to Representa_ tive Ludlow, who had written to the Administrator expressing apprehension over reports that the code would not recognize freedom of the press. General Johnson, in his reply made public Dec. 31, wrote: We all, I believe, agree with you that the freedom of the press is a precious heritage, and there is no one who proposes that that freedom should be abridged. More substantial, however, than the opinion is the expressed statement in the code embodied in Article VII as follows: "Nor do they hereby waive any constitutional rights, or consent to the imposition of any requirements that might restrict or interfere with the constitutional guarantee of the freedom of the press." I trust this will give you the assurance you so greatly desire. Retail Food and Grocery Code Effective To-day (Jan. 6) —Measure, Approved by President, Affects 400,000 Stores Employing More than 1,000,000—Clause Regarding Pure Food Laws Eliminated—Pact Forbids Sale of Loss Leaders. A code of fair competition for the retail food and grocery industry becomes effective to-day (Jan. 6); it was signed on Dec. 30 by President Roosevelt. This was the first of the so-called food codes to be transferred from the Agricultural Adjustment Administration to the National Recovery Administration following the controversy in the AAA which resulted in the retirement of George N. Peek as Agricultural Adjustment Administrator. The code covers the business of approximately 400,000 retail groceries throughout the country, employing more than 1,000,000 persons. The agreement as approved by the President was substantially in the same form as suggested by former Administrator Peek, and does not contain a provision placing retailers on record for observance of the pure food and drug laws. Mr. Peek had opposed this provision. The NRA explained that at the request of General Hugh S. Johnson, Recovery Administrator, the President eliminated from the code the provision that "no food and grocery retailer shall knowingly sell a commodity adulterated or misbranded in violation of the Federal Food and Drug Act." A Washington dispatch of Deo. 30 to the New York "Herald Tribune" noted General Johnson's letter and the principal features of the code as follows: In his letter to the President recommending immediate completion of this code, which has been subjected to considerable delay General Johnson wrote: Volume 138 Financial Chronicle "Provision in codes for jurisdiction ancillaryito penal laws seems to me questionable." The Executive Order approving the code contained an added provision by the President giving the National Recovery Administrator authority, upon review, to disapprove of any act of the code authority. The loss limitation provision in the agreement is similar to that in the general retail code, being based on invoice price or replacement cost, whichever is lower, and "loss leaders," that is, articles sold below cost for the purpose of attracting trade, are banned. Sales in confectionery stores, bakeries, milk in house-to-house trade and food in restaurants are not included. The Food and Grocery Industry Conference Committee created by the code is to be appointed by the National Food and Grocery Distributors' code authority. The code provides that this authority "shall be established in accordance with the provisions of this article (Article X) and the provisions of the code of fair competition for the wholesale food and grocery trade to co-operate with the Administrator in the joint administration of this code and of the code for the retail food and grocery trade. Such code authority shall consist of one member, elected by a fair method of selection approved by the Administrator by each of the National retail food and grocery trade associations presenting this code, one member similarly elected from any other association which the Administrator upon application shall recognize as representing an Important branch of the retail food and grocery trade, and such other members as may be elected from the wholesale food and grocery trade in accordance with a code of fair competition for such trade approved by the President. "The Administrator may appoint a member or members who may participate without vote in all activities of the code authority." As the labor provisions, trade practice and administrative regulations are substantially the same as those in the separate code of labor provisions, approved on Nov. 15 last, they are incorporated, along with the provisions hitherto approved, in a single code of fair competition for the retail food and grocery trade. They become effective in place of the code of labor provisions previously approved. The code provides that no retailer shall operate on a schedule of less than 63 hours a week,except that where any retailer was operating less than 63 hours prior to June 1 1933 such hours may be continued provided they are not reduced. Conference Committee Set Up. In establishing basic hours of labor the code provides that "no employee, except as hereafter provided, shall work more than 48 hours a week, nor more than 10 hours a day, nor more than six days a week." Basic minimum wages are provided running from $10 a week in places of less than 2,500 population to $15 a week in Chien of more than 500.000 population. As summarized by the NRA, the code provides for the formation of a Food and Grocery Industry Conference Committee to be composed of representatives of manufacturers, wholesalers and retailers. This Committee will act as a planning and co-ordinating committee for the entire food and grocery trade. The code defines the retail food and grocery trade as the selling of food and groceries to the consumer, but exempts from its provisions the selling of confections in confectionery stores, bakery products in bakery stores, the selling of milk from house-to-house and the selling of food in restaurants for consumption on the premises. It provides that no food or grocery retailer shall increase the price of any merchandise sold after Jan. 6 next, over the price existing on June 1 last, by more than is made necessary by the amount of increases in production, operation, replacement and invoice cost of merchandise, and by taxes of other causes "resulting from action taken pursuant to the NIRA and(or) the Agricultural Adjustment Act since June 1 1933." The code contains a loss limitation regulation which is virtually identical with the same provision in the general retail code. Cost is defined under the loss limitation provision as being the invoice price or replacement cost, whichever is lower after deduction of all legitimate trade discount exclusive of cash discounts for prompt payment, to which cost an allowance for actual cost of store labor shall be added, and the amount of this allowance shall be fixed and published from time to time by the Administrator and representatives appointed by the President to serve on the code authority. The provision bans loss leaders, which is defined as "articles often sold below cost to the merchant for the purpose of attracting trade. This practice results, of course, either in efforts by the merchant to make up the loss by charging more than a reasonable profit for other articles, or else in driving the small merchant with little capital out of legitimate business. It works back against the producer of raw materials on farms and in industry and against the labor so employed." Sharp Business Advance in 1934 Seen by Malcolm Muir, NRA Deputy Administrator—Survey Predicts Gains in Building, Coal, Metal Mining, Textiles and Transit. Business and industry will record a substantial and healthy progress toward recovery in 1934, according to a statement issued on Jan. 2 by Malcolm Muir, Division Administrator of the National Recovery Administration. Mr. Muir based his survey on data furnished by code authorities and on information gathered by McGraw Hill publications. He said iTat the year's prospects were bright for bituminous coal, metal mining,electrical manufacturing,construction, transit, textiles, air transport, motor bus and machinery industries. Other portions of the statement were quoted as follows in a Washington dispatch to the New York "Times": Mr. Muir indicated that appreciable progress had been made by industry in the closing months of 1933. The prospects for 1934. he said, were for "continuing but moderate revival." In discussing specific industries, Mr. Muir said: "Particularly in the earlier months of the year the effect of the public works projects, just now getting up momentum, will be apparent. The effect of better farm purchasing power already is obvious. The outlook is better abroad. It does seem certain, after several false dawns, that world recovery really has begun. It will be slow and uneven, but it looks inevitable. Sees Advance in Building. r "The closing months of 1933 showed a definite improvement in construction, and the outlook for 1934 is relatively favorable. Sk "In 1933, for the first time since 1929. the transit industry closed the year with riding and revenue at higher levels than they were the year before," said Mr. Muir. "Expectations for continued improvement are reflected in 65 budgets for capital expenditures during the present year, which run more than 50% above those for the year just ended." Sales by electrical manufacturers, according to Mr. Muir, aggregated $750,000.000 in 1933, an increase of about 18% over 1932. "Estimates for 1934," he continued. "show an increase of 17.5%. or a total of $880,000,000 as reported to Electrical World." Prospects for the bituminous industry in 1934, according to Mr. Muir, appear the brightest in several years. The outlook for the metal mining industry for 1934, he continued. 11 distinctly brighter than it has been for several years. The textile industry, he declared, ended 1933 with a record of activity more than 25% over that of 1932, and slightly above what might be termed a normal year for the last decade. It has entered 1934 with a greater expectation of stability and profitableness than it has experienced at any new year in the last several years, he added. 15,000 Persons to Gain Employment in Survey Conducted by Bureau of Agricultural Economics— Inquiry Covers Prices, Tax Delinquency, Mortgage Foreclosures and Data on Cotton Production. Almost 15,000 persons will obtain employment under Civil Works projects inaugurated in the final week of December by the Bureau of Agricultural Economics of the Department of Agriculture, according to an announcement on Dec. 29 by Nils A. Olsen, Chief of the Bureau. The projects will necessitate the gathering of information which includes data on prices, tax delinquency, farm mortgage foreclosures, land values, cotton marketing, Cotton gin operation, the quality of cotton linters, and the use of cotton bagging. A Department of Agriculture press release of Dec. 29 added the following details of the survey: In the farm price survey workers will gather weekly data on prices farmers pay for 175 items, which information is used as a basis for determining parity prices under the Agricultural Adjustment Act. These workers, chosen from local unemployment rolls, will be employed in all of the States, working under the supervision of the State agricultural statisticians of the Crop Reporting Board. The survey of tax delinquency,'farm mortgage foreclosures and land values is being conducted in co-operation with the State agricultural experiment stations, the directors in each State acting as supervisors to contact with State Civil Works authorities and to organize the projects. The up-to-date information which will result from this work which will be taken from county records, will give much needed light as to what has happened to farms which have been sold for non-payment of taxes, mortgage foreclosures, or by private sales. These records are expected to show the actual current market prices at which land has been sold which will be used as a check upon estimates made by owners and others. The surveys relating to cotton will provide information to show areas of growth of certain varieties in relation to total production during the last five years. They will be under the supervision of the Bureau's representatives in the cotton States. These facts will be useful in connection with other research in relating the Bureau's grade and staple estimates to production in various communities so that these reports may be used by cotton growers to secure the full market value of the cotton that they produce. The statistics on the use of different types of bagging on cotton bales will expedite the completion of studies on the use of cotton for bagging in comparison with other materials. Facts regarding the influence of the use of bagging of different types and materials, such as jute, cotton, sisal, &c., on the spinning quality of the cotton will be gathered. The information on gin equipment will be used in connection with the comprehensive research which the Department is making on improving gin operation in relation to the quality of cotton. The linters study has for its object the determining of the variation in the quality of linters production between different mills and variations within the same mill. Other workers will gather information on the movement of cotton from field to mill through the various market channels which will be studied to suggest improvements in cotton handling and marketing to afford growers a basis for choosing the best market outlet for their crop. From this data it is expected that the Bureau will be able to map the major lines of cotton movement in the United States and the factors which influence growers' returns when they sell through different distribution channels. Other minor projects are now in operation at Washington with personnel drawn from local unemployment rolls. These workers will promptly complete the analysis and charting of statistics from the census to be published In the Graphic Summary of American Agriculture, the third edition of which will appear this spring. This information is used by agricultural workers throughout the country to learn the distribution of production of farm products. A special statistical analysis of exports and imports of farm products is being made in forms not heretofore available. A number of workers are engaged in assembling records of rainfall in European wheat-producing countries, particularly Russia, which will be useful in determining the yields of crops in those countries. Assembling of statistical facts from many sources is a project requiring large numbers of clerical workers and much of this essential information has not been made available, although it is of great importance in the Recovery program. Dividends of $85,020,437 Disbursed by 26 New York City Banks During 1933-20% Less Than Payments Made in 1932 and 3532% Below 1931—Report by Clinton Gilbert & Co. With an aggregate amount of $21,825,437 (including $1,550,000 expected to be paid by National City on Feb. 1 1934) voted for the final quarter of 1933, dividend disbursements for the year of 26 New York banks passed the $85,000,000 mark, according to a year-end report issued by Clinton Gilbert & Co., New York. The report, made public Jan. 2, further says: This figure is 20% less than the $107,000.000 paid out in 1932 and 3534% below the 1931 peak of $131,792,000, established by the same 28 banks. Total disbursements in 1930 amounted to $131,093.250 for 25 of these banks and in 1929 to $112,750,500 for the same banks. In 1928 24 banks reported dividends payments of $80,199.500. While 20 banks maintained regular rates during the past 12 months, four reduced, Manufacturers Trust resumed payments and Title Guarantee & Trust omitted its fourth quarter payment. Dividends were inaugurated by 66 Financial Chronicle two institutions not contained in the following table, namely, Clinton Trust Co. and Merchants Bank. Eight of the institutions continued their all-time high rates per share. these being Bankers Trust, Chemical Bank & Trust, Central Hanover Bank & Trust, Commercial National, First National, Guaranty Trust. New York Trust and United States Trust. Including omissions of extra dividends by some banks, reductions from the high rates of 1929 have ranged from 14% for Fulton Trust to 87% for Brooklyn Trust, as follows: Bank of Manhattan,50%; Brooklyn Trust,87%: Bank of New York. 30%; Chase National, 65%; Continental Bank, 33%; Corn Exchange Bank, 25%; Empire Trust, 68%; Fulton Trust, 14%; Fifth Avenue Bank, 42%; Grace National, 50%; Irving Trust, 37%: Kings County Trust, 24%; Lawyers County Trust, 40%; Marine Midland Trust, 25%; National City. 76%, and Public National, 62%. US80,,,ki .0 M§§§88§8E880, '---©'"--•-•. 'ct E.3 g"giFigg8 N .010,00001 . N..:; -1Eci;.. 69 g8 ft54454418.16T;g8 N a /5 , 4 i6 E46:7 Cl ..-4 . 2 C . §§§Ul§§§§§§§ag§ U "M§ 4. c; ,?;gggl.agr,i, .,-;:gcagsgg.fig.c.i'gdsg ,5 Total Cash Dttidends. N 01Mn.-4 010 oi.-. -r:ar:viei L'S ... Fl . §§1§§§ 8 T:g8 ; : . * g c.clq". .M.NNt6,0 VM Cl 04,.*NM061'.4 ,n . t.: c; -.. . tO c; Cl 01.-700.-- c, 6; §§§§§§§§§§§§§.§§§§§ 9c:digggFig§ , gg§gggigg g ,-'1"."ccqg 1 " 0 w m..'.1 c N MOS d ,7 N ri .,;a a-,i- §§§§§§§§§§8§§§§§§§§§§§§§§§ § ;;,; 22glig'§igg§gggggggWg V ,,,; 04-/ . 00 . 0000-1 , 0 .CONvN.y0.6004,0.44.066., 4.4.0.070t4.4 0i 8 L'S Cl . 06. aa-e; C.3-_: ,_; . Cl ;II n§§§§§§§§§§§§§§§§§§§0§§§§ 01 ' j80 ; 4 0 :SIFJCSO C iWgigggfgEgF04 M Mc 40CM00.40664,.001 0.4-. 6140100 4040W 04 0: 0.:0601i . . a Oi 0 0606 .. 01i004-701 . 6;6-; Cl t = C C VS §§§§§§§§§§§§§§§§§§H§E§H§. 1, 6 ,i is 8?8 ' 01g1 9 -8ggligg8120g74gE408 40 . 0400206006100...M.CN vneM04h00614 14 4Ei. 64 04.vo Cl 0 co..., 0 Cl .4C .9 444 .. 6C 6 o U fan. 6 1934 Following the bank crisis in March. which was brought to a salutary climax by the nation-wide banking moratorium, the demand for aggressive handling of the situation crystallized into action. The license system of reopening banks was adopted: The embargo on gold was declared, the gold clause in Government bonds suspended and anti-hoarding orders issued; Most important of all from a banking standpoint, was passage on June 16 of the Banking Act of 1933, containing several far-reaching provisions. including the much-discussed permanent deposit insurance plan; Then came adoption of a frankly nationalistic policy following the World Economic Conference, and In lino with this policy, abandonment of stabilization and adoption of the gold-purchasing plan for raising domestic prices; Finally, Reconstruction Finance Corporation purchases of preferred stock and capital notes of banks throughout the country, preparatory to inauguration of the temporary deposit insurance plan. In the face of such important developments, the market action of New York City bank stocks was especially interesting. Contrary to the experience in England, the initial effect on bank stocks of suspension of the gold standard in this country was for bank stocks to up. New York City bank stocks recovered sharply during April, during which month this country left gold. After reaching the low of 36.53 on April 5, the Holt, Rose & Troster weighted average of 17 leading New York City bank stocks rose to a high for the month of 47.12 on April 20. The close April 29 was at 46.70 for a net gain over the low of 28%• Improvement in price levels of bank stocks continued until passage of the Banking Act of 1933, which was rather unexpected by bankers. Bank stocks then began to decline. After reaching levels close to the 1933 highs established in January. the weighted average of 17 issues reached the June high of 60.85 on the 12th, but turned downward and closed the month at 51.82. The decline continued into September. With adoption of the gold-purchasing plan for raising commodity prices, the decline was extended throughout October and November. New York Bank Stocks Close 1933 Slightly Above Lows for Year. In a year of improtant banking developments and reforms, New York City bank stocks in 1933 closed at lower levels, Hoit, Rose & Troster report. The final days of the year, however, were marked by a strong rally that carried the weighted average of 17 issues from the 1933 low of 35.06 on Dec. 26 to close of 39.83 on Dec. 30, a net gain of 14% in four days. Despite this rally, the firm said, the weighted average showed a net decline of 32% for the year. The range for 1933 of the Hoit, Rose & Troster weighted average of 17 leading New York City bank stocks was as follows: BANK STOCK RANGE-1933. P0,524,48.1g 45 ErV'ug144 a 2t..12- .E-Iggg2E-T.-4.8nn.' ezE-,,p3t4-tt .zgEw. r.A.%.2gt_. zv,F.0 .8 2.pp. 4#, 4 7 .-8 84 . 0FE r goeup o o , S ° , =.. "Cilgt1126'=.9c5IF40.:%Occr16.7i-- pl000.(53.0a7.450..-4xiWa5 New York City Bank Stocks Stage Sharp Rally in Closing Week of 1933-Average for 16 Leading Issues Register Advance of 16.07% from Week's Low. On a percentage basis the New York City Bank stock market during the week of Dec. 30, registered one of the sharpest recoveries of the year 1933, based upon records compiled by Hoit, Rose & Troster. The firm said: The aggregate value of the 16 leading issues at the close of the year stood at 81,179,091.000 which total represented an increase of $163,237,000. or 16.07% compared with an aggregate value of $1,015,854,000 established on Dec. 26. which total was the low point for the year 1933. Compared with the closing of the previous week the increase amounted to $102,170,000, or 9.4%. The current average yield of the 16 stocks of 6.79% compares with a Yield of 7.43% reported on Dec. 22. The current market value of the 16 stocks is now 0.87 times their known book value against 0.79 on Dec. 22. Based upon current figures the 16 stocks are now quoted at an average of 10.2 times their known earnings, against 9.3 times at the close of the previous week. Survey of Bank Stocks in 1933 by Col. Troster, of Hoit, Rose & Troster-Decline in Price Levels with Adoption of Gold Purchasing Plan-Higher Market Levels Depend on Revision of Deposit Insurance Plan of Bank Act, Stabilization of Dollar, &c. In his annual review Col. Oliver J. Troster, of boa, Rose & Troster, states that "Although at present bank stocks appear well deflated and market action is steady, the outlook for higher market levels for New York City bank stocks seems to depend upon three principal factors: 1. Revision of the permanent deposit insurance plan of the Glass-Steagall Act, which carries the possibility of unlimited assessments upon the banks In order to replenish the funds of the insurance corporation. 2. Stabilization of the dollar, with resultant beneficial effect on bonds and improvement in conditions for extending credit. 3. Clarification of the question as to how much further possible additional legislation will go. Col. Troster notes that "the year 1933 was marked by a number of vitally important banking developments and in these developments lies the key to the year's market action of New York City bank stocks." He goes on to say: Bankers Trust Brooklyn Trust Central Hanover Chase National Continental Chemical City Commercial National Corn Exchange Empire Trust First National Guaranty Trust Irving Trust Manhattan Manutacturers New York Trust Public National Weighted average Open Jan.3. High Jan. 10. Low *Dec. 26. Close Dec. 30. 70Si 168 146 343( 16H 36H 42K 155 71H 22H 1470 335H 22H 27H 29H 98 2736 75 180 150 37H 1854 40H 46K 150 74K 244 1550 345 24K 32 30H 10044 28Si 45 65 101 15% 9% 27K 17K 105 38.44 14 1080 218 11H 21Si 13H 71 18K 51H 66 110H 194( 12 30K 21K 112 41H 14Si 1175 253 13H 2341 14H 76H 19K 58.63 62.19 35.06 39.83 •Low during day. 1932 RANGE. High, Sept. 7 Bear market low-May 31 70.76 31.34 Net Gain of 27% During 1933 Recorded by Insurance Stocks in New York City Market. Insurance stocks in the Now York City market, as measured by the weighted average of 20 leading issues, showed a net gain of 27% for 1933, Hoit, Rose & Troster report, adding: Opening Jan. 3 at 23.56, the average reached the year's low of 19.90 on April I. From that point a sharp recovery occurred which reached Its peak in the 1933 high of 39.43 on July 18. Tho close Dec. 30 was 29.94. Recovery in general security markets, rise in the price level and an Improved underwriting situation were factors that favorably affected the market action of insurance stocks in 1933. Based on closing bid prices, the 1933 range of the weighted average of 20 loading issues was as follows: INSURANCE STOCKS-1933. Aetna Casualty & Surety Aetna (Fire) Aetna Life Continental Casualty Firemen's (Newark) Franklin Fire Great American Halifax Fire Hanover Fire Harrnonia Hartford Fire IIartford Steam Boiler Home Insurance National Fire National Liberty Phoenix Prov. Washington Travelers United States Fire Westchester WaIrrh t prl nvarntra Open Jan. 3. Low April 1. High July 18. Close Dec. 30. 37 28H 12H 534 5H 11N 11H 7Si 22 7 36H 42 13H 37H 2H 46 16H 345 17 13 32 19H 934 6Si 444 84( 714 7S1 16K 5 2634 37 10H 29,45 244 3934 14 200 14 1044 57 35H 2744 13K 644 19 18H 14 30 17 48 51 2244 48 6 5845 28 478 3434 2344 46 29H 15 9 4K 16 14H 13H 23 15H 39 43 16H 40 3H 49 20 320 2934 17H 23.56 19.90 39.43 29.94 Financial Chronicle Volume 138 1932 RANGE. High, March 8 Bear market low—July 11 35.32 12.62 Amendments to Rules and Regulations of New York Curb Exchange Embodying New Requirements for Admission of Securities to Unlisted Trading— Changes Grow Out of Investigation by State Attorney-General's Office. Reforms in the regulations of the New York Curb Exchange incident to the admission of securities to unlisted trading were put into effect by the Exchange on July 17. In the New York "Evening Post" of July 6 it was stated: Among the changes Involved is a rule that no security tnay be admitted to unlisted trading against the objection of the issuing company should it be shown that such trading may injure the company. To guard against corners and artificial markets, it also is proposed to forbid unlisted trading in securities of a company with less than 100,000 common shares outstanding, with at least one-fourth of the stock in the hands of the public. Segregation of listed and unlisted securities on the exchange's ticker, quotation lists, etc., also is planned. The Board of Governors, according to the new rules, must pass upon applications for admission to unlisted trading and financial statements of the company must be analyzed by an independent public accountant. All removals or suspension notices would be printed 'immediately on the Curb ticker instead of being announced in a weekly report, as at present. The changes, approved by the Board of Governors of the Exchange July 6, grew out of the inquiry into the listing practices conducted by the New York State Attorney-General's office, an item regarding which appeared in our issue of May 27, page 3632. Regarding the proposed reforms Attorney-General John J. Bennett Jr., made the following statement on July 6: The investigation conducted by me into the practice of the Curb Exchange Indicated the existence of abuses, both in the admission and suspension of so-called unlisted securities and in the trading therein. At the close of the last hearing, William L. Lockwood, Esq., Counsel for the New York Curb Exchange, requested an opportunity to submit certain proposed amendments to the Rules and Regulations of the Exchange. I stated at that time that I would receive and consider such suggestions as might be offered. The Exchange has now submitted the attached resolutions embodying new requirements for the admission of securities to unlisted trading and for the administration of the Unlisted Trading Department of the Curb. After a thorough study of the proposed reforms, I believe that, if honestly enforced, they should correct the abuses disclosed by my investigation. In my opinion, the public interest will best be served by affording the Curb Exchange an opportunity to put the proposed reforms into practice. The resolutions accompanying the above (approved, as indicated above, on July 6) follow: RESOLUTIONS PROPOSED TO BE ADOPTED BY THE BOARD OF GOVERNORS OF THE NEW YORK CURB EXCHANGE. Resolved, That from and after the 1st day of July 1938 ticker quotations of securities fully listed shall bear a distinguishing symbol unless its printing would unreasonably retard the service, as in the case of a very busy market. Resolved further, That newspapers in market reports shall be urged to make a clear differentiation between listed and unlisted securities. Resolved further, That Fitch's Sheets shall be requested to group separately sales of fully listed and of securities admitted to unlisted trading. Resolved further, That the "Bulletin" of the Exchange shall differentiate between fully listed and securities admitted to unlisted trading. Resolved further, That in advance of admitting to unlisted trading notice shall be given to the company whose securities it is proposed to admit to unlisted trading, and opportunity given to appear before the Committee and present objections, if any. Resolved further, That no security will be admitted to unlisted trading over the duly authorized objection of the company whose securities it is proposed to admit to unlisted trading when evidence Is furnished of pending financing or of reorganization or of purchase of properties or of exchange of securities. Resolved further, That if the authorized issue of a stock, except preferred stocks entitled in liquidation to not less than $100 per share, be reduced below 100,000 shares, the stock will be removed from unlisted trading. Resolved further, That the Board of Governors shall pass on all apllications for admission to unlisted trading. Resolved further, That an independent certified public accountant shall analyze financial statements supplied in the case of the application to admit a security to unlisted trading. Resolved further, That if, as a result of such analysis, or otherwise, it shall appear to the Board of Governors that such statements are incomplete or inaccurate in any material respect, and such omissions and/or inaccuracies are not corrected, the security in question shall not be admitted to unlisted trading. Resolved further, That a security will not be admitted to unlisted trading where the tame authorized is greatly in excess of that outstanding at the time of application, unless the company will agree to notify the Exchange of the issuance of such additional security; and that if the Board of Governors is not satisfied with the circumstances surrounding such additional issue and the additional security is actually issued, the security already admitted to unlisted trading will be removed. Resolved further, That all removal or suspension notices of securities shall be printed on the ticker immediately they are removed or suspended. Resolved finally, That fully listed securities removed from listing will not be readmitted to unlisted trading unless such securities are qualified for such unlisted trading. The following are the new rules governing specialists and the publication of requirements: 67 Specialists. 1. It shall be the duty of a specialist to report to the Chairman of the Committee of Arrangements unusual activity in a stock in which he specializes as well as any information which he receives which he considers affects the business of financial structure of the company. He shall also report news or information of options of which he learns subsequent to admission. 2. A specialist who either as a broker or as a principal participates in any unusual transaction in the stock in which he specializes shall report the matter to the Committee of Arrangements. 3. A specialist in an inactive security must keep himself informed of current published quotations in the principal other market for the security, if any. 4. Sec. 13 of Chapter XIV to be amended to read as foRows: "No member acting as a specialist, no partner of such a member, and no firm in which such a member is a general or special partner, shall, directly or indirectly, be interested in a pool dealing or trading in securities in which such a member is a specialist, nor shall any such member, partner, or firm, directly or indirectly, acquire or grant, in connection with a pool operation, or in connection with an operation intended to stimulate activity in the securities, an option to buy or sell or to receive or deliver securities in which such a member is a specialist. Publication of Requirements. 5. The Exchange will publish and advertise full lists of both classes of securities. It will also publish the requirements for member listing. We give herewith the new requirements for regular members: Re-Admission of Stocks to Unlisted Trading. The following is a list of data to be furnished, and of requirements to be conformed to, by regular members in applying for the admission of stocks to unlisted trading. No requirement may be modified unless impossible of strict compliance due to conditions beyond control of the applying member; should such condition or conditions exist a detailed explanation of the same must be furnished. The following requirements do not apply to "rights," "warrants" or to "split-ups" or to substitutions, or to readjustments of capital structure, et cetera, including reorganizations in respect to securities listed upon the New York Stock Exchange or listed or admitted to trading on the New York Curb Exchange. The Committee expects that members will not file applications for the admission to unlisted trading of stocks of corporations which are not nationally or internationally known, unless there is sufficient distribution in the Eastern States, particularly in and around New York, to warrant the belief that an active market exists in New York City. No stock will be admitted to unlisted trading the authorized issue of which is less than 100,000 shares, of which at least 25,000 shares of free stock must be in the hands of the public. 1. The company must have been in actual operation for not less than two years and show a record of actual and satisfactory earnings for such period. If, however, a new company has taken over the assets of an old company, itself incorporated and showing a record of actual and satisfactory earnings for two years, the prior period may be considered. This period need not, however, be essential in the case of investment trusts whose portfolios consist of, or of holding companies whose capital is invested in securities of, companies which themselves have been in operation for the period. 2. The company must have established and continue the principle of furnishing to stockholders periodical reports containing balance sheets and profit and loss statements, certified to by independent accountants (in any event, not less than once a year). 3. No stocks will be admitted to unlisted trading for at least six months subsequent to the date of public offering unless previous to the expiration of said period the company and/or its bankers approve or the issue has been listed upon another exchange. 4. The applying member must fill in the answers to all questions appearing in the application blank and sign such application blank. 5. Financial Statements.—Balance sheets and profit and loss statements covering a period of not less than two (2) years immediately preceding the date of application. This data must be transcribed from Poor's Manual, Moody's Manual, Fitch's Manual, or Standard Statistics' Service, or be obtained from an authoritative source. The applying member shall attach a certificate stating the source from which such data has been obtained. 6. History and description of business from inception to date, with certificate of applicant member specifying the source from which the information has been obtained. 7. Tabulated record of dividends on all classes of stock from initial payment to date, showing payment date, rate and amount of each dividend, with a certificate signed by the applicant member showing the source from which the information has been obtained. 8. Funded Indebtedness.—A tabulation showing (a) full title ond date of issue of each kind or series, (b) date of maturity, (c) interest date and Interest payment dates, (d) amount authorized of each issue, (e) amount outstanding of each issue, (f) security, and nature and priority of lien, (g) provisions for redemption, (h) if convertible, under what terms, &c. 9. An official copy of the latest annual report of the corporation in the form as issued to its stockholders. The financial statements included in said report must have been prepared by a properly qualified practicing public accountant in good standing, and not by an officer, director or employee of the corporation. 10. A photostatic copy of stock certificate (both sides) representing the class of stock applied for. 11. A present active market must prevail for the stock in New York City, and satisfactory evidence to this effect must be submitted by the applicant member. 12. A statement of the approximate present daily volume of dealings in New York. 13. A statement from an officer of the company, or from the transfer agent or registrar of such security of the number of stockholders among whom the shares of each class of stock applied for are distributed. 14. Name of transfer agent. 15. Name of registrar (must be a corporation). 16. If this issue Is traded in on other Exchanges, furnish: (a) Names of Exchanges. (b) Approximate daily volume of dealings. 17. Furnish an agreement to submit promptly to the Secretary's office copies of all reports and notices distributed by the company to its stock. holders. 18. A signed typewritten transcript of all information relative to the cornpany applied for (other than that furnished in answer to requirements enumerated above), as it appears in Poor's Manual, Moody's Manual, Fiteh's Manual, or Standard Statistics' Service. 68 19. A statement from a responsible officer of the company as to any outstanding company options, if any, or of any options or calls on the stock known to said officer. 20. All information must be delivered to the Secretary's office at least one week prior to a meeting of the Committee. In addition to the above requirements, the following special requirements shall apply to requests for the admission to member listing of stocks of foreign corporations: Foreign Corporations. (a) Relative to Requirement No. 18 above, in filing an application for the admission to unlisted trading of securities dealt in on foreign Exchanges, if no information regarding the company is contained in any of the Manuals mentioned in Requirement No. 18 above, the Committee will consider data as taken from the following publications: "Stock Exchange Year Book" (London Stock Exchange). "Gide bij de Prijscourant van de Vereeniging Voor Den Effectenhandel" (Amsterdam). "Soling Boersen Jahrbuch" (Berlin). "Annuire Desfosses" (Paris). If any of the data furnished is in a foreign language, an English translation, authenticated to the satisfaction of the Committee, must be furnished of all necessary data. (b) The Committee will only admit to trading a foreign security, the nominal value of which is expressed in terms of, or the income from which is payable to security holders in, a currency which is on a gold basis. (c) Upon approval of any foreign shares, request for the admission of which to unlisted trading has been made by a regular member, such shares will be admitted to such trading only in the form of certificates issued by an approved American institution or by the American branch of an approved foreign institution, based upon the deposit with a foreign correspondent of the original foreign shares. (d) In case of foreign shares, the Committee will give consideration to all matters affecting the marketability of the shares and the facility with which domestic and international transactions may be effected therein. The requirements for regular members for re-admission of bonds to unlisted trading follow: The following is a list of data to be furnished, and of requirements to be conformed to, by regular members in applying for the admission of bonds to unlisted trading. No requirement may be modified unless impossible of strict compliance due to conditions beyond control of the applying member; should such condition or conditions exist a detailed explanation of the same must be furnished. The following requirements do not apply to "rights," "warrants" or to "split-ups" or to substitutions, or to readjustments of including reorganizations in respect to securities listed capital structure, upon the New York Stock Exchange or listed or admitted to trading on the New York Curb Exchange. The Committee expects that members will not file applications for the admission to unlisted trading of bonds of corporations which are not nationally or internationally known, unless there is sufficient distribution in the Eastern States, particularly in and around New York, to warrant the belief that an active market exists in New York City. No bond will be admitted to unlisted trading of an issue of less than $5,000,000. 1. The company must have been in actual operation for not less than two years, and show a record of earnings, satisfactory to the Committee, for such period. If, however, a new company has taken over the assets of an old company, itself incorporated and showing a satisfactory record of earnings for two years, the prior period may be considered. 2. The company must have established and continue the principle of furnishing to stockholders periodical reports containing balance sheets and profit and loss statements, certified to by independent accountants (in any event, not less than once a year). 3. No bonds will be admitted to unlisted trading for at least six months subsequent to the date of public offering unless previous to the expiration of said period the company and/or its bankers approve or the issue has been listed upon another Exchange. 4. The applying member must fill in the answers to all questions appearing in the application blank and sign such application blank. 5. Financial Statements.-Balance sheets and profit and loss statements covering a period of not less than two years immediately preceding the date of application. This data must be transcribed from Poor's Manual, Moody's Manual, Fitch's Manual, or Standard Statistics' Service, or be obtained from an authoritative source. The applying member shall attach a certificate stating the source from which such data has been obtained. 6. History and description of business from inception to date, with certificate of applicant member specifying the source from which the information has been obtained. 7. Copy of the mortgage or indenture certified to by the trustee. 8. A complete description of the issue applied for, including the following: A. (1) Full title; (2) amount applied for (whether temporary or permanent), denominations and numbers; (3) amount authorized and outstanding; (4) whether bonds are coupon (registered as to principal) or registered, interchangeable or exchangeable; (5) exchangeability or convertability into other securities, and terms. B. (1) Date of issue and maturity; (2) interest rate; (3) places at, and dates for payment of interest and principal ; (4) where registerable or transferable; (5) kind and standard of money, and options; (6) tax exemptions; (7) whether redeemable or purchasable in whole or part by sinking fund or otherwise, showing (a) dates, (b) price, (c) duration and place of published notice; (8) specified reservation of stock for conversion. C. Provision for declaration of principal due and payable in event of default in payment of interest, or other defaults, and waiver; percentage of outstanding bonds controlling trustee. D. A statement as to the purpose of issue and the application of the proceeds. E. A complete description of the security or underlying collateral. 9. Tabulated record of dividends on all classes of stock from initial payment to date, showing payment date, rate and amount of each dividend, with a certificate signed by the applicant member showing the source from which the information has been obtained. 10. Funded Indebtedness.-A tabulation showing (a) full title and date of issue of each kind of series, (b) date of maturity, (c) interest date and interest payment dates, (d) amount authorized of each issue (e) amount outstanding of each issue, (f) security, and nature and priority of lien, (g) pro. visions for redemption, (h) if convertible, under what terms, ,kc. 11. An official copy of the latest annual report of the corporation in the form as issued to its stockholders. The financial statements included in said report must have been prepared by a properly qualified practicing public Jan. 6 1934 Financial Chronicle accountant in good standing, and not by an officer, director or employee of the corporation. 12. A present active market must prevail for the bonds in New York City, and satisfactory evidence to this effect must be submitted by the applicant member. 13. A statement of the approximate present daily volume of dealings in New York. 14. The regular member shall furnish the Committee with satisfactory evidence of adequate distribution. 15. Name(s) of trustee(s). 16. If this issue is traded in on other Exchanges, furnish: (a) Names of Exchanges. (b) Approximate daily volume of dealings. 17. Furnish an agreement to submit promptly to the Secretary's office copies of all reports distributed by the company to its stockholders. 18. A signed typewritten transcript of all information relative to the company applied for (other than that furnished in answer to requirements enumerated above) as it appears in Poor's Manual, Moody's Manual, Fitch's Manual, or Standard Statistics' Service. 19. All information must be delivered to the Secretary's office at least one week prior to a meeting of the Committee. Unemployment Found Increasing at Extra-Seasonal Rate, According to William Green of A. F. of L.580,000 Lost Jobs in November, Including 330,000 in Manufacturing-Sees Some Responsibility Shifted by Private Business to CWA. Industrial employment is declining faster than at any time since last January, according to a statement made public on Dec. 28 by William Green, President of the American Federation of Labor, who reported that unemployment had gained both in November and the first part of December at greater than the usual seasonal rate. The Federation records showed 10,702,000 unemployed in November compared with 10,022,000 in October, with 330,000 losing their jobs in manufacturing alone during the latter month. We quote, in part, from a Washington dispatch of Dec. 28 to the New York "Times," giving additional extracts from the survey: "It is quite normal at this time of year for men to be laid off, both from farms and industries, but labor had hoped that this year, with all the emphasis placed by the Administration on creating jobs, layoffs at the year end would be much less severe than usual," he went on. "Instead, more were laid off from mid-October to mid-November this year than last year, and trade union figures for the first half of December show that again in December unemployment has Increased slightly more than last year. Trade union weighted figures show 22.8% of membership unemployed in December compared to 22.0 in November and 21.7 in October." The worst November declines were in manufacturing, with more than 330,000 losing their jobs. Lay-offs Larger than Usual. "These factory lay-offs are much larger than in any normal year for which we have records; larger also than in any year-since depression," Mr. Green said. "It would be a serious matter indeed if the manufacturers of this country fail now to do their part. These lactory lay-offs represent over half the increase in unemployment from October to November, which was in all about 580.000. "Business observers," he continued, "are continually telling us that the recent gain in workers' buying power has been a chief cause of business improvement at the year-end and the growing confidence in some lines. To cut this foundation from under business at such a crucial time theartens downfall to the whole structure we have built with so much effort. "Apparently some employers feel less responsibility for their men now that Civil Works are providing jobs for several million. If they deliberately drop their men from payrolls now to let the Government care for them, will they ever again have the right to protest against so-called Government interference in business?" The Federation's estimate of unemployment each month this year follows: (Per Cent of Membership) Trade Union Total Month._ Number Unemployment. Unemployed In the U. S. Unemployed Part (rg'ted) Time. January_ __ 13,100,000 February_ _ 13,294.000 March_ __ 13,689,000 April 13,256,000 May 12,896,000 June 12,204,000 •Preliminary 25.8 26.0 26.6 26.1 25.8 24.5 20 20 22 21 20 21 (Per Cent of Membership) Total Trade Union .1fonth... Number Unemployment. Unemployed in the U. S. Unemployed Part (rteted) Time. July August __ September_ October___ November_ December _ 11,781.000 11,001,000 10,108,000 10,122,000 *10,702,000 24.1 23.7 22.4 21.7 22.0 *22.8 21 20 21 22 22 22 Recognition of Soviet Russia by United States Reverses 16-Year Policy-Ban on Soviet Accord Began with Wilson. The policy of the United States toward Soviet Russia, first laid down by Bainbridge Colby as Secretary of State under President Wilson and followed rigidly by the succeeding Republican administrations, was sharply reversedlby the resumption of diplomatic relations on Nov. 17, said the New York "Times" of Nov. 18, which further observed: Through the 16 years following the overthrow of the Kerensky Government there had been but three more or less formal expressions of policy up to the resumption of relations. The first was contained in a letter written by Mr. Colby to Ambassador d'Avezzano of Italy on Aug. 10 1920. toward the end of the Wilson administration. He wrote: "In the view of this Government there cannot be any common ground upon which It can stand with a power whose conceptions of international relations are so entirely alien to its own, so utterly repugnant to its moral sense. "There can be no mutual confidence or trust, no respect even,if pledges be given and agreements made with a cynlal repudiation of their obligations already in the minds of one of the parties. "We cannot recogniae, hold official relations with, or give friendly reception to the agents of a Government which is determined and bound to conspire against our institutions; whose diplomats will be the agitators of dangerous revolt; whose spokesmen say that they sign agreements with no intention of keeping them." The second expression came in 1923 when Charles Evans Hughes, then Secretary of State and now Chief Justice of the Supreme Court, wrote an answer to Georges V. Tchitcherin, then Foreign Commissar of the Soviet, who had asked for negotiations leading toward recognition by President Coolidge. "If the Soviet authorities are ready to restore the confiscated property of American citizens or make effective compensation, they can do so," wrote Mr. Hughes. "If the Soviet authorities are ready to repeal their decree repudiating Russia's obligations to this country and appropriately recognize them, they can do so. "Most serious is the continued propaganda to overhtrow the institutions of this country. This Government can enter into no negotiations until these efforts directed from Moscow are abandoned." In a pamphlet published by the Republican National Committee in 1928. Secretary Kellogg declared: "A desire and disposition on the part of the present rulers of Russia to comply with accepted principles governing international relations is an essential prerequisite to the establishment of a sound basis of intercourse between the two countries." are to William C. Bullitt, First United States Envoy to Soviet —Forty-Fifth to Russia. It was pointed out in Associated Press advices from Washington, Nov. 17, that William C. Bullitt will be the first American Ambassador to the Soviet Government, but fortyfifth in a line of diplomatic envoys to Russia, begun in 1809 by John Quincy Adams. David R. Francis was the last Ambassador, representing the United States at the Czar's court and before the Kerensky Government, until the Bolshevists came into power in 1917. The Associated Press account as given in the New York "Herlad Tribune" further noted: Of a total of 44 envoys, 34 have been Ministers, nine Ambassadors and one a Charge d'Affaires. The list with dates of appointment includes: Ministers—John Quincy Adams, 1809; William Pinkney, 1816; George W. Campbell. 1818; Henry Midleton, 1820; John Randolph, 1830: James Buchanan, 1832; William Wilkens, 1834. Charge d'Affaires—John Randolph Clay, 1836. • Ministers—Georg•e M. Dallas, 1837; Churchill B. Cambreleng, 1840; Charles S. Todd, 1841; Ralph I. Ingersoll, 1846; Arthur P. Bagby, 1848; Neil S. Brown, 1850; Thomas H. Seymour, 1853; Francis W. Pickens, 1858: John Appleton, 1860; Cassius M. Clay, 1861: Simon Cameron, 1862; Cassius M. Clay, 1863; Andrew G. Curtin, 1869; James L. Orr, 1872; Marshall Jewell, 1873; George H. Boker, 1875; Edwin W. Stoughton, 1877: John W. Foster. 1880: William H. Hunt, 1882; Alphonso Taft, 1884: George V. N. Lothrop, 1885; Lambert Tree, 1888; Arthur Thorndike Rice, 1889; Charles Emory Smith, 1890; Andrew D. White, 1892; Clifton R. Breckinridge, 1894, and Ethan A. Hitchcock, 1897. Ambassadors—Ethan A. Hitchcock, 1898; Charlemagne Tower, 1899; Robert S. McCormick, 1902; George von L. Myer, 1905; John W. Riddle, 1906; William Woodville Rockhill, 1909; Curtil Guild, 1911: George T. Marye, 1914 and David R. Francis, 1916. William C. Bullitt's Uncle Calls Recognition of Russia a Disgrace. The Rev. James F. Bullitt, an uncle of William C. Bullitt, declared on Nov. 18 that the United States had "disgraced itself by establishing relations with a country which is beyond the pale—a pariah among nations." We quote from a Philadelphia dispatch, Nov. 18, to the New York "Times" in which it was further stated: Mr. Bullitt. who Is Archdeacon of the Episcopal Church House, said, however, that he would make no protest to his nephew over his acceptance of the Ambassadorship. The Archdeacon based his objections to Soviet recognition not only on that country's "religious program" but also on his feeling that "their entire idea of government is wrong." "Any country which has acted as Russia has to other nations and to its own people," he said, "will keep no promises with us. Russia did not keen its promises not to spread Soviet propaganda in England and France, and I see no reason to believe it will make an exception of us." Twenty-Eight Countries Have Thus Far Failed to Recognize Soviet Russia—Including United States 24 Nations Have Full Diplomatic Relations with Soviets. According to Associated Press advices from Washington, Nov. 17, countries that have not recognized Soviet Russia are: Albania Linn Belgium Bolivia Brazil Chile Colombia Costa Rica Cuba Dominican Republic El Salvador Ethiopia Guatemala Haiti Honduras Hungary Liberia Nicaragua Panama Peru Portugal Rumania Siam Switzerland The Netherlands Venezuela Jugoslavia The advices also said: Mexico recognized Soviet Russia, but later broke off relations. Czechoslovakia has de facto relations and carries on trade with Russia. but has not granted recognition. The British Dominions also trade with Russia, but have not extended recognition. Uruguay alone among South American Republics has extended recognition, but has not exchanged Ministers. Countries which have extended full diplomatic recognition to the Soviet Union are: 69 Financial Chronicle Volume 138 Afghanistan Austria China Denmark Esthonia Finland France Germany • Great Britain Greece Iceland Iraq Italy Japan Kingdom of Saudi Latvia Lithuania Norway Poland Spain Sweden Turkey United States Uruguay Recognition of Soviet Russia by the United States. The events leading to recognition of Soviet Russia by the United States were summarized as follows in Associated Press accounts from Washington, Nov. 17: Events Leading to Oct. 10—President Roosevelt invited President Kalinin of the Soviet Union to send a representative to explore outstanding questions between the United States and Russia. Oct. 17—President Kalinin accepted the invitation and designated Maxim Litvineff, Commissar of Foreign Affairs, to talk with Mr. Roosevelt. Nov. 7—M.Lltvinoff landed at New York, was greeted by State Department officials there and by Secretary Hull in Washington and immediately paid a ceremonial call on President Roosevelt. Nov. 8—He held two conferences at the State Department with Secretary Hull and lunched with Mr. Roosevelt at the White House. Nov. 9—M. Litvineff conferred again at the State Department and attended Secretary Hull's luncheon in his boner. He was entertained at dinner by the Turkish Ambassador. Nov. 10—President Roosevelt and M. Litvineff talked for an hour at noon and again for three hours at night. Nov. 11—The Commissar conferred with State Department officials. Nov.12—Mr. Roosevelt and M. Litvinoff held a two-hour conversation at night after the Commissar had toured the Maryland and Virginia countryside, visiting Mount Vernon. 13—M. Litvineff remained at his Washington residence for the first Nov. of a two-day gap in personal conversations with Mr. Roosevelt. Nov.14—He continued conferences with his aides at the home of Boris Skvirsky. Chief of the Soviet Information Bureau. Nov.15—The President and M. Litvinoff conferred for 45 minutes in the White House. Nov.16—Mr. Roosevelt and the Commissar conferred for two hours and agreed on normal relations, the President explained later. at ten minutes before midnight. Nov. 17—President Roosevelt announced the resumption of normal relations with the Soviet Government after a 16-year lapse. The correspondence incident to the invitation extended to the Russian Soviet representative was given in these columns Oct. 21, page 2897. The diplomatic recognition extended to Russia was noted in these columns Nov. 18, page 3577. United States Claims Against Soviet Russia Put at $800,000,000—But Satisfactory Agreements at Much Smaller Figure Are Expected in Capital—$332,519,891 "War Debt"—Balance Represents Bonds and Other Private Holdings. It was stated in Washington advices, Nov. 17, to the New York "Times" that latest estimates put the total of claims by the United States Government and its nationals against Russia, based on the repudiation of obligations and the confiscation of property by the Soviet, at roughly $800,000,000. The advices from which we quote went on to say: It Is generally agreed, however, that satisfactory terms at a much smaller figure can be reached when negotiations for a settlement are carried out. The Government's claim, representing cash advanced for war purposes and relief work made to the old Russian Government is, with accrued interest.41332.519,891: this is subject to a considerable scaling down in line with action taken on other so-called wartime debts. All claims, governmental and private, antedate the Soviet regime, as investments by Americans since the revolution of Nov. 7 1917 have been taken over by the Soviet and payment made. The Soviet has also met Interest payments on long-term credits which have been extended by American producers and exporters for trade purposes, about $21.000,000 of which remain outstanding. Claims by American industries and banks against the Soviet based on confiscation of property have not been made public in detail, and many readjustments will undoubtedly be made. They are said to run as high as 5400,000,000. Russia also has claims against the United States which may in a considerable degree reduce the final aggregate due us. Tabulation of Claims. Claims concerning which definite information is obtainable include the following: United States Government loans $332,519,891.37 Loans floated in United States by old Russian Government in 1916 and since repudiated 75.000.000.00 Advances on notes by banks to old Russian Government_ 11,000.000.00 Total $418,519.891.37 There is an unknown quantity of repudiated Russian currency bonds floated in other countries by the former Russian Government. which are held by Americans, but this total is not large. Our Government's claim is divided as follows, according to a recent Treasury compilation: Cash Advances under Liberty Loan Act $187.729.750.00 War supplies and relief 4.871,547.37 Interest past due 139.918.594.00 Total $332,519.891.37 The activities in Russia of American nationals since the revolution are said to have been chiefly directed toward aiding the Soviet in planning and developing its resources in the agricultural and industrial fields. American industrial or banking interests do not own any plants now in Russia, all of these having been confiscated and in some instances developed by the Russian Government. Among branches which were taken over by the Soviet were those of the International Harvester Co. and the Singer Sewing Machine Co. 70 Financial Chronicle Our first advance to the Russian Government in the war against Germany was an instalment of $35,000,000 on July 6 1917, and such cash advances were continued until Nov. 15 of that year. Seek to Build Up Our Exports. Apparently there will be an effort to rebuild the export trade of the United States to the Soviet. In 1930 exports reached $111,362,000 and in 1931 the total was $103,480,000. Machinery, particularly farm machinery, automobiles and automobile parts was an important factor. In 1932, however, the export trade collapsed, and fell to but $12,324.275, and in the first eight months of the current year again declined sharply, dropping to $6,941,368 for that period. A cessation in demand for farm machinery was partly responsible, along with the question -of Russia's abflity to supply further acceptable credits. It was also said by some that Russia checked its purchases to hasten action by us on recognition. One of the great potential markets in Russia for American exports is for railroad equipment, and American industry and exporters hope that this may be opened. The Soviet program contemplates building up of its transportation system. Studies have been made to determine whether the United States could absorb some Russian products to facilitate growth of our export trade withdin interfering with the general recovery movement. The RFC has also indicated that it will try to find means of participating in credits which will increase the export of American commodities to the Soviet. London "Times" Warns of Soviet Russia on Propaganda —Asserts Pledge to President Roosevelt Does Not Restrict the Comintern—British Experience Cited, President Roosevelt's decision to enter diplomatic relations with Soviet Russia has "removed an anomaly which long ceased to serve any useful purpose and which indeed had become extremely inconvenient to both countries," in the opinion of -the London "Times." In indicating this, a London cablegram, Nov. 19, to the New York "Times" went on to say: The uncertain situation in the Far East, "where American no less than Russian interests may be affected by any untoward development," would alone have justified him in restoring diplomatic relations, the "Times," declares. But it voices a warning concerning the Soviet pledge to refrain from revolutionary propaganda, "the terms of which would seem to be both comprehensive and categorical if it were not for the experience which other governments, notably our own, have already had in this matter." Comintern is not Mentioned. The editorial continues: "Lltvinofrs letter to Roosevelt, like Sokolnikoff's note to Henderson (then Foreign Secretary), contains no explicit mention of the Communist International, which, and not the Soviet Government, is the organization through which the Russian Communist party conducts its revolutionary propaganda abroad. "The Government is only the right hand of the party, of which the Comintern is the left, and when challenged over persistent violation of its pledges, it invariably disclaims all responsibility for the activities of the body over which, as it claims, it possesses no authority. "No undertaking given by the Commissar for Foreign Affairs, however carefully it may be drafted, is likely to have any restraining effect upon the efforts of the Comintern to foment disorder and revolution in the United States any more than the pledge signed by Sokolnlkoff had any effect upon its anti-British activites. Communist Plea is Cited. "Indeed, as if to make that point perfectly clear, the Executive Committee of that organization has published in Moscow a fervid exhortation to Communists in the United States to exploit the present difficulties of the United States Government and thwart the efforts of the National Recovery Administration and foment open industrial strife. "Of this doubtless Roosevelt is perfectly well aware. He is too well informed and too astute a politician to be under any illusions regarding the real value of Litvinoff's solemn declaration of the 'fixed policy' of the Soviet Government to refrain from interference in the internal attire of the United States. "He probably attaches importance to it only as helping to make his recognition of the Soviet more palatable to that large section of American opinion which persists in abominating it and all its works, and which Is particularly resentful of attempts to import Bolshevist methods Into America." London Press Calls President Roosevelt a Realist— His Move in Recognizing Soviet of Chief Import for Our Trade, Sunday "Times" Says. American recognition of the Soviet Union is by far the best thing President Roosevelt has achieved, the London "gbserver" says editorially, it was noted in a London cablegram, Nov. 18, to the New York "Times," from which we quote further as follows: "The diplomatic news from Washington is as good as the financial news Is bad," the paper remarks. "In sixteen years the world has changed beyond recognition. Britain as well OA America should be on the best of terroa with Russia." The "Sunday Times" considers the recognition the week's biggest news. "The present occupant of the White House is a realist and he has shown his realism once again," the "Sunday Times" says in editorial praise. "In the forthright and rapid way the world has come to expect of him, he decided upon recognition and put it through. "The political significance of the development will not be overlooked by those who have interests in the Far East. But it is the economic aspects that President Roosevelt, intent on rebuilding the prosperity of his country by means of hastily improvised machinery, no doubt considered chiefly desirable. la "The agreement is confidently expected in America to be followed by a big expansion in American-Russian trade. The Soviets still need vast quantities of agricultural and industrial machinery which United States manufacturers very much want to supply. The National Recovery Administration organization faces a dire need of expansion of consumption to take the goods of producers under the new codes. The agreement therefore suits both parties. Jan. 6 1934 "Whether it may not be found in practice to suit Russia better than America remains to be seen. Goods some time or other must be paid for, and the policy of high tariffs and embargoes America is indulging in makes payment difficult. "But it is significant to think the two vast countries of vast economic experiment have found a modus vivendi. As time progresses the consequences are bound to be important." Edouard Herriot Stresses World Significance in American-Russian Accord—Views of "Le Temps." From Paris, Nov. 18, the New York "Times" reported the following:. The Frenchman who has traveled in Russia cannot fall to recognize the desire of the Russians for understanding with foreign countries,says Edouard Herriot in an article in this evening's "l'Information." The former Premier recently returned from a visit to the Soviet Union. "Our country should carefully consider two facts," M. Herriot writes. "First, Poland, one of Russia's closest neighbors, enjoys the most harra(MUOUS relations with the Soviets; second, the United States, long one of the bitterest enemies of communism, now accords full recognition to the Soviets. It is too important an event to ignore when two States, one with a population of 120,000,000, the other with 160,000,000, get together." "Le Temps" says of the American recognition of the Soviets: "As he has done in his monetary policy, President Roosevelt has listened only to the advice of his 'brain trust' while considering the question of recognition of Soviet Russia. The value of recognition by the United States was so great they (the Russians) were willing to sacrifice the right to spread Communist propaganda and carry on their efforts to convert the rest of the world to their principles. "Soviet Russia now definitely enters the society of world powers and appears to ignore the fact that the other powers are capitalistic countries. resumpBut the Soviets have everything to gain and nothing to lose in the tion of economic co-operation with the United States when Russia is facing great difficulties and badly needs foreign credit." Germany Interest United States Recognition of Russia Prompts to Seek to End Differences with Soviet in of German Trade. Under date of Nov. 18, Associated Press advices from Berlin said: German business men expressed the belief to-day that the American recognition of Russia does not augur well for German trade. In Chancellor Hitler's closest circles one viewpoint gained headway that Germany should patch up her differences with the Soviet Union as quickly as possible. It is understood that a South German editorlhas been sent to Leo Chinchuk, the Russian Ambassador, with a request to understanding with Russia. Put out feelers for a resumption of a closer Aiwireless message from Berlin, Nov. 19, is taken as follows from the New York "Times": A controversy over the equalization of dollar and sterling exchange has broken out between German private business firms and the Soviet Trade Bureau in Berlin. In German exporters are claiming reimbursement for losses sustained deliveries to Russia since the shifts in pound and dollar exchange rates, and demand arbitration and a ruling on their claims. based on Russian contracts, it was stated at the Soviet Embassy, are effected. Pound and dollars, on which basis running settlements were arbitration and also The Russians have rejected the German demand for readjustment of refuse to accept a German proposal of compromise by a Dements on the basis of 2.70 marks per dollar. to buy British compelled The Soviet Trade Bureau, it was stated, is to German and American exchange at running rates to meet payments exporters. Dutch Bar Recognition of Soviet Russia—No Prospect Seen of Trade Gain with Russia, Foreign Minister Says. From The Hague, Nov. 7, a wireless message to the New York "Times" said: Replying to a question put to the Dutch Government to-day in the lower Chamber of the States General regarding recogniton of Soviet Ruasia, Foreign Minister de Graeffe said the Government was not convinced such recognition would materially aid the development of Dutch trade with the Soviets. Considerations set forth by the Government on several previous occasions to bar recognition were still operative, the Foreign Minister declared. AAA Approves License and Agreement for St. Louis Milk Shed Area—Hearings on Distribution Costs to Be Held Within 30 Days. The St. Louis area became the 13th milk shed to receive Federal acceptance of an agreement and license when Secretary Wallace approved that action on Nov. 22. The agreement became effective immediately, while the license for distributors becomes effective to-day (Nov. 25). The agreement has been signed by 31 distributing companies and by the Sanitary Milk Producers, its sponsors. In announcing its approval, the Agricultural Adjustment Administration stipulated that a hearing is to be called in the area within 30 days to bring facts on distribution costs before the consumers. A reaudit of the books and records of milk dealers is now in progress under the supervision of the licensing and enforcement section of the AAA. The announcement gave the following additional details: Price increases to producers of a trifle more than 1 cent per quart will, it is estimated by local authorities, mean a total increase of $1,300 daily, or about $129,000 per month to about 14,000 farmers In the 39 counties of Illinois and the 34 counties of Missouri that are tributary to the milk shed. Consumers will pay, under the agreement, 11 cents per quart for milk delivered and 10 cents at stores. This is an increase of 1 cent in rates that have been current for about 20 months. A 1-cent differential between Volume 138 Financial Chronicle store and wagon price has been customary. Relief milk may be sold for less than the prices named in the schedule. Amended Milk Agreement and License for St. Paul and Minneapolis Accepted and Signed by Secretary Wallace. An amended agreement and amended license for the Twin City milk shed of Minneapolis and St. Paul, Minn., has been signed by Secretary Wallace on behalf of the Agricultural Adjustment Administration. The amended agreement went into effect at 12:01 a. m. on Nov. 24, and the license for distributors became effective at 12:01 a. m. on Nov. 29. Twenty-six contracting parties requested the amendments, including the proponents of the original agreement, the Twin City Milk Producers Association. The following details were contained in an announcement issued Nov. 25 by the AAA, from which the foregoing was also taken: The amendment provides for farm prices higher by about 28 cents per 100 pounds than did the original agreement. This is obtained largely by a shift allowed in the base point at which the farm and retail prices change up or down. Under the original agreement and license the change from eight to nine cents retail and from $1.42 to $1.70 farm priceliwas based on a New York butter quotation of 26 cents per pound wholesale. Under the amendment the shift occurs when the New York price has held within the 24-cent limits for seven consecutive days. This permits the prices for farm milk and retail milk to advance accordingly at once. The original agreement provided that this shift depended upon approval of at least 65% of the distributors, by volume. This section has been eliminated, making the changes automatic. The new resale price schedule will be nine cents per quart retail, delivered; 7;4 cents per quart wholesale, and six cents to intermediate:dealers. Bulk milk will cost 27 cents per gallon wholesale. Relief millamay be sold for prices less than named in the schedule. Producerdwho deliver raw milk approaching certified milk in quality may adhere to the schedule for minimum prices but are not limited by any stated maximum. The original fair practice schedule for distributors has beenlcutvdovrn and simplified. A special 12% fat milk used in hospitals is provided for in the amendment, at 534 cents per half pint. The original agreement was referred to in our issue of Sept. 2, page 1682. Milk Marketing Agreement for San Diego County, Calif., Given Final Approval by AAA—Agreement Affects Cream Production in San Diego and Imperial Counties. Milk production in San Diego County, Calif., and cream production in San Diego and Imperial counties, are covered in a milk marketing agreement and license to distributors signed by Secretary of Agriculture Henry A. Wallace, the Agricultural Adjustment Administration announced on Dec. 15. This is the third milk shed agreement affecting California interests to receive Federal approval, the announcement said. The others are for Oakland and Los Angeles. A majority of the dairy interests in San Diego County have signed the agreement. The license will go into effect on Dec. 18 at 12:01 a. m. Eastern Standard Time. Continuing, the Administration's adnouncement said in part: The agreement was offered and supported by the Milk Producers Association of San Diego County and the Dairymen's League of San Diego, and endorsed by contracting distributors through the Milk Institute of San Diego County. The milk shed proper lies within San Diego County. but, under the agreement, cream may be purchased from outlying counties. Nearly 300 producers supply the distributors with fluid milk and cream, and the producers' associations maintain a market pool into which all surplus flows. Fluid milk and other diary products from San Diego County are supplied to resort towns in Mexico, to ocean liners in Pacific and coastal trade, and for use by travelers through the Panama Canal and in foreign ports. The overhead supervising body established by the agreement is the Dairy Products Arbitration Board, representing producers and distributors. The two contracting co-operative producers' associations authorize distributors to pay to the board on behalf of their members one-half cent per pound of butterfat in milk marketed by their members. Distributors agree not to buy any milk from non-members of the co-operatives unless these individuals authorize a similar payment to the board. The funds thus received by the board are to be used for educational and advertising benefits, subject to supervision by the Secretary's agents. Distributors agree to pay one-half cent per pound of fat in all milk they handle toward the same fund. Producer-distributors will also pay one cent per pound of butter fat in milk which they themselves produce and distribute. No milk will be purchased from producers who do not have quotas established either by their own co-operative associations or by the board's authority. Cream may be bought from producers regardless of such restriction. New producers may enter the market under the certificate of necessity plan. Distributors are required by the agreement to keep accurate books and records and submit them to examination by the Secretary. Grade A milk will cost consumers 11 cents a quart delivered and 10 cents from stores. There are also differentials on cream and buttermilk, but none on certified milk. For delivery of Grade A milk for pasteurizing, producers under the agreement get 53 cents per pound of butterfat up to 4.1%. Beyond that point a premium of 20 cents per pound of fat is paid. Milk delivered for Grade A raw milk sales brings 60 cents per pound of fat. For Grade B milk and any Grade A milk in excess of dealers' orders which is not sold as fluid milk, the basis of payment to producers is on the average daily butter price quotation, except that Grade A milk has a 14-cent premium above that point. 71 Thirteen Milk Agreements in Force Under AAA. Records in the Dairy Section of the Agricultural Adjustment Administration show that as of Nov. 23 a total of 13 Milk shed marketing agreements, centering in as many cities and including farms in 28 States producing for the market areas, have been approved and are in force with licenses to distributors and established minimum prices to producers. The Administration on Nov. 23 further said: Fully 120,000 producers located in 245 counties are expected to receive increased incomes through these agreements. The total volume of milk sold in the areas under agreement represents at least 10% of all commercial milk sales from farms in the country, or over 734 billion pounds annually. In addition to the milk shed agreements that are in force, the Administration has approved two National milk agreements, one for evaporated milk and one for dry skim milk, and has accepted proposed amendments to the existing agreements for Detroit, Chicago, the Twin Cities, Philadelphia and Baltimore. The first three amendments provide for additional increases in farm prices for milk over the original schedules, while the last two relate to reduced prices for school milk. A special price for cream to consumers has also been provided for in Chicago. Preliminary tentative approval has been given by the Secretary of Agriculture to proposed agreements for San Francisco, Richmond, Virginia, Louisville, Kentucky, Omaha-Council Bluffs, and Atlanta, Ga. Agreements on which hearings have been held and which are under review include fluid milk agreements for Florida, Pittsburgh, Shreveport, and Oklahoma City, and National agreements for ice cream and butter. Public hearings have been called on agreements for Tulsa, Okla., and seven other cities in that State. Applications are on file and reviews and conferences are under way for a number of other proposed milk shed agreements, including the following by States: Kansas.20; Michigan,11; North Carolina,8; Texas,7;Colorado, 7; Iowa,7; California, 6; Virginia, 6; New Mexico,5; Maine,4: Mississippi, 4; Minnesota, 4; Pennsylvania, 3; South Carolina, 3; Illinois, West Virginia, Missouri, and Nevada, each 2; and one agreement each from Idaho. New Hampshire, Oregon, Kentucky, Nebraska, and New York—the latter being the Greater New York and New Jersey market, the largest in the country. Milk produced for the District of Columbia is also included in a proposed agreement not ye t scheduled for hearing. It is proposed in future, as a general plan, to hold hearings on pending agreements in the localities where they originate. More responsibility for supervising the agreements when accepted, as well as their preparation for hearing, will be directed to the local communities. Enforcement of the terms and conditions of the agreements rests largely with the licensing and enforcement section with the aid of the dairy section for milk agreements. To date, orders to show cause why their licenses should not be suspended or revoked have been issued to 119 alleged violators in the Chicago area, 21 in the Philadelphia area, and one in the Detroit area, or a total of 141 citations. Revocations of licenses to sell milk because of established violations have been ordered for two individuals in the Philadelphia area. The revocations were made in accordance with the terms of the Act and the milk license regulations of the AAA. Until more definite production control programs are under way for milk sold to manufacturing plants, a temporary stabilization movement has been undertaken by the Dairy Products Corporation with Federal funds used for purchases of butter intended for relief aid welfare work. Considerable amounts of fresh butter has been bought by the corporation through its offices at produce markets in New York and Chicago. The directors of the corporation were elected subject to approval by the Secretary, and an agreement was drafted between the corporation and the Secretary governing the scope and method of market operations. The industry also entered into an understanding with the Secretary at the time the corporation was formed to support future plans for control of production, without which the Administration does not consider stabilization justifiable. Further work on broad plans for production control is progressing through a committee in the Department of Agriculture. Dr. B. W. Gaumnitz, economist with the Dairy Section of the AAA, Dr. 0. E. Reed, Chief Bureau of Dairying, J. B. Shepard, Division of Crops and Livestock Estimates, Dr. H. R. Tolley, economist with the Production Division of the AAA, and Dr. Fred Weaver, Pennsylvania State College, constitute this committee. Plans submitted by producer groups are being reviewed. They will report to Secretary Wallace and George N. Peek within a short time concerning practical programs for production control for all dairy products to accompany processing taxes and benefit payments. Signature Put to Milk Marketing Agreement and License for Richmond (Va.) Milk Shed. A milk marketing agreement and license, for distributors in the Richmond, Va., milk shed, was signed Dec. 16 by Acting Secretary of Agriculture C. W. Marvin. The license went into effect on Dec. 20, at 12:01 a. m. The agreement, after its tentative approval by Secretary Wallace, was signed by its proponents, the Richmond Co-operative Milk Producers' Association, and by 100% of the distributors of milk for the sales area. According to an announcement issued by the Agricultural Adjustment Administration the agreement provides: Price schedules in the agreement and license fix a price to producers of $3.02 for Class 1 milk, f.o.b. Richmond, on the basis of 3.7% fat text. Premiums of 49 cents per 100 pounds above that figure are allowed in the agreement schedule for AA grade Guernsey and Jersey milk. Class 2 milk price is $1.85 in the schedule, while the pricerof Class 3 milk for manufacturing uses is based on average wholesalelquotations for 92 score New York butter. plus 25 cents. The weightedraverage increase to producers resulting from the agreement is said to be 45 cents per 100 pounds. Retail prices are increased one cent per quart, or to 13 cents, both delivered and at stores. Wholesale milk is 12Icents per quart. Special quality milks may be sold at prices above that figure, to customary trade. The production area named in the agreement includes all of Henrico. Hanover, Goochland. Powhatan, and Amelia counties, and part of Chesterfield County, and all other farms that have permits to ship fluid milk to Richmond. The administration of the agreement Is in charge of the Ailik Industry Board, of five members, responsible to the Secretary. Two members will be named by the Richmond Co-operative Milk Producers' Association, two 72 Financial Chronicle by the distributors, and one by the Director of Extension. Virginia Polytechnic Institute. There will also be a dairy council to promote milk consumption. It will have seven members. Two will be named by the co-operative, one by producers outside the co-operative, three by the distributors, and the seventh by the other six, as a consumers' representative. T. A. Buckner Confident on Life Insurance Outlook. Reviewing the 1933 record of life insurance, Thomas A. Buckner, President of the New York Life Insurance Co., declared that "the past year has tested and proved the stability of sound, legal reserve life insurance companies." He further comments: They remained a safe haven of protection during the financial panic which led up to the bank holiday and suspension of gold payments; and although some States placed temporary restrictions on policy loans, it is generally agreed that such measures reflected the stress on the National financial structure rather than weakness on the part of the institution of legal reserve life insurance. Interest, rents, and premium income were well-maintained; testifying to the conservative character of life Insurance company.investments as well as to the unimpaired and fully justified confidence of many millions of policyholders. Speaking for his own company, the New York Life, Mr. Buckner stated, "Our assets are larger at the end of 1933 than on any previous year-end in the company's history. As a matter of fact, income has exceeded disbursements during every year of the depression." "The encouraging record of legal reserve life insurance," Mr. Buckner added, "quite naturally leads one to expect a substantial increase in life insurance sales once recovery really gets well under way. I look forward to 1934 with confidence." Clinton Trust Co. of New York Receives Deposit Insurance Certificate. Clinton Trust Co., New York City, has received certificate No. 629 qualifying it, as of Jan. 1, for participation in the temporary Federal Deposit Insurance Fund which insures its deposits as provided by law from Jan. 1, until July 1 1934, it was announced on Jan. 2. William Green Urges Labor to Boycott All German Goods—American Federation of Labor President Calls on Workers to Make Effective Order of Convention. William Green, President of the American Federation of Labor, called upon organized labor and its friends on Dec. 28 to make effective the boycott against German-made goods and German service declared at the American Federation of Labor convention held in Washington last October. Urging "such steps as may be necessary," Mr. Green suggested the formation of committees "to deal with the problem in accordance with the economic, social and business requirements of each business community." We quote further from his statement, as given in United Press a.d.vices from Washington to the New York "Herald Tribune" on Dec. 28: "Let these committees unite with other committees created for the same purpose and representing other groups of people whose opinions are in harmony," he said. The labor leader made public a report of alleged Nazi activities designed to destroy the labor movement, and said: "In declaring for a boycott of German-made goods and German service, the American Federation of Labor recognizes the right of the German people to govern themselves and to formulate and adopt their own political policies and to do so without interference from any other nation. Labor is therefore not fighting against any political order set up in Germany or against the German people; we are asking only that the annihilation of German trade unions shall cease and that the persecution of German working people and of Jewish people merely because they are Jews, shall be terminated. Rues Treatment of Jews. "This persecution and destruction of the bona fide German trade union movement was only equaled, and perhaps exceeded, by the persecution of the Jewish people residing in Germany, merely because they were Jews. This action on the part of the Hitler regime in Germany has shocked the conscience of the entire world. It is particularly revolting to trade unionists, because the officers and members of organized labor hold as sacred the principle 'that all men are created equal, that they are endowed by their creator with certain inalienable rights; that among these are life, liberty and the pursuit of happiness.' "Furthermore, the American Federation of Labor holds that there be no discrimination against men because of creed or nationality. Labor protests vigorously against the oppression of the Jewish people, or any other nationality, merely because of race, creed or nationality. "If the boycott ordered by the convention can be made effective, the interests of the German workers, the protection of German trade unions, and the enjoyment of the rights and privileges to which the Jewish people are entitled in Germany, may be safeguarded." James Brown Retires from Brown Brothers, Harriman & Co.—Association Therewith Covered Fifty Years. James Brown, senior partner in Brown Brothers Harriman & Co., has retired from that firm after an association of fifty years. Mr. Brown's long career in the banking field has been marked by participation not only in domestic but international affairs affecting commerce and finance. He has been President of the Chamber of Commerce of the Ian. 6 1934 State of New York since May 1932, and has in that capacity been an outstanding advocate of governmental adherence to the principles of sound money. He will continue to maintain his office at 59 Wall Street, but will devote his attention mainly to public interests. First Security Co. Sells Most of Its Assets. First Security Co., former affiliate of the First National Bank of New York, on Dec. 30 had liquidated all of its liabilities. A letter to stockholders of the bank and holders of declarations in interest in the assets of the security unit by Jackson E. Reynolds, President of the First National, reported as follows: FIRST SECURITY COMPANY. (In Dissolution.) 2 Wall Street, New York. Dec. 30 1933. To holders of Decimations of Interest in dissolution of the First Security Co. and to stockholders in the First National Bank of the City of New York holding stock bearing endorsement of interest in the First Security Co. under Agreement of .Feb. 14 1908: At the close of business to-day, ignoring minor items of insignificant market value, the assets of the First Security Co. consist of: Securities listed on the New York Stock Exchange,at last sale_161,652,161.69 1,895 shares Bank of International Settlements, 25% paid, at cost 228,522.79 Cash in bank 49.148.81 The company has no liabilities, other than a possible liability in itr commitment as shareholder in the Bank for International Settlements to pay, if called, the uncalled balance (3,553.125 Swiss francs) of the par value of the stock owned. FIRST SECURITY CO. (In Dissolution), JACKSON E. REYNOLDS, President. Action toward the dissolution of the company was noted in our issue of Dec. 16, page 4282. President Returns Control of Non-Member State Banks to State Officials—Authority Had Been Withdrawn During Banking Holiday of Last March—Proclamation Forbids Payment of Gold. Authority over State banks, which was temporarily withdrawn from the States during the banking crisis of last March, was returned by President Roosevelt on Dec. 30 when he issued a proclamation through the Secretary of the Treasury amending proclamations'of March 6 and 9 and an Executive Order of March 10 1933, all dealing with the National banking holiday. The President relinquished control over all State banks not members of the Federal Reserve System, except for control of transactions in foreign exchange, gold payments and gold hoarding. The proclamation was issued in connection with completion of the inspection of banks which have applied for membership in the Federal Deposit Insurance Corporation to determine their eligibility for membership. A recent compilation revealed that there were 7,617 unrestricted and 1,501 restricted State banks not members of the Federal Reserve System, exclusive of 566 mutual savings banks. The President's proclamation follows: By the President of the United States of America—A Proclamation. Whereas on March 6 1933, I, Franklin D. Roosevelt, President of the United States of America, by virtue of authority vested in me by act of Oct. 6 1917 (40 Stat. L. 411). as amended, issued a proclamation declaring that an emergency existed and that a national banking holiday be observed; Whereas on March 9 1933, I issued a proclamation continuing the terms and conditions of said proclamation of March 6 1933, in full force and effect until further proclamation by the President; Whereas on March 10 1933. I issued an Executive order authorizing the appropriate authority having immediate supervision of banking institutions In each State or any place subject to the jurisdiction of the United States to permit any banking institution not a member of the Federal Reserve System to perform any or all of its usual banking functions except as otherwise provided; Whereas the Secretary of the Treasury, pursuant to authority granted by other provisions of the said Executive order of March 10 1933. has acted upon all requests for licensing of bank members of the Federal Reserve System; Whereas the Federal Deposit Insurance Corporation has acted upon all applications to it for membership in the temporary Federal Deposit Insurance Fund as provided for in Section 12 B (y) of the Federal Reserve Act as amended by Section 8 of the Act of June 16 1933, Public No. 66. Seventythird Congress, and has admitted to the said fund all applicant banks which are duly and properly qualified; and Whereas it is now appropriate that the banking authority in each State and any place subject to the jurisdiction of the United States should have and exercise the sole responsibility for, and control over, banking institutions not members of the Federal Reserve System; Now therefore I, Franklin D. Roosevelt, President of the United States, in order to assure that the banking authority In each State and in any place subject to the jurisdiction of the United States shall have and exercise the sole responsibility for, and control over, banking Institutions which are not members of the Federal Reserve System, do hereby proclaim, order, direct, and declare that the proclamations of March 6 1933, and March 9 1933, and the Executive order of March 10 1933, and all orders and regulations pursuant thereto, are amended, effective the first day of January, nineteen hundred and thirty-four, to exclude from their scope banking Institutions which are not members of the Federal Reserve System. Provided, however, that no banking institution shall pay out any gold coin. gold bullion or gold certificates, except as authorized by the Secretary of the Treasury, nor allow the withdrawal of any currency for hoarding, nor Volume 138 Financial Chronicle engage in any transactions in foreign exchange except such as may be undertaken for legitimate and normal business requirements, for reasonable traveling and other personal requirements, and for the fulfillment of contracts entered into prior to March 6 1933. seal In witness whereof, I have hereunto set my hand and caused the of the United States to be affixed. Done in the City of Washington this thirtieth day of December in the year of our Lord one thousand nine hundred and thirty-three, and of the independence of the United States the one hundred and fifty-eighth. FRANKLIN D. ROOSEVELT. By the President. William Phillips, Acting Secretary of State. Joseph B. Eastman Charges Many Railroads Fail to Comply with Labor Provisions of Transportation Act—Threatens to Enforce Law. The charge that a substantial number of railroads are failing to comply with the provisions of the Emergency Transportation Act was made by Joseph B. Eastman, Federal Railroad Co-ordinator, in a recent letter to the Regional Co-ordinating Committees. Mr. Eastman's letter discussed specifically that portion of the Transportation Act which makes It unlawful for any railroad to "deny or in any way question the right of its employees to join the labor organization of their choice" or to "interfere in any way with the organizations of its employees." We quote from Washington advices published in the "Wall Street Journal" of Dec. 9: "Most of the railroads," Mr. Eastman said, "comply with the letter and spirit of the law with respect to some classes of their employees, and some railroads so comply with respect to all classes. There are a considerable number, however, which do not comply with respect to certain classes of employees, these classes often differing with the different railroads." The Co-ordinator declared that if the railroads fail to act voluntarily "I shall have no alternative under the law except to see to it to the best of my ability that its provisions are enforced." By complying voluntarily, he said, the railroads would lose nothing; on the contrary, they would improve their present positions and their labor relations. General Johnson of NRA Authorized to Approve Codes for Small Industries Employing Less Than 50,000—Executive Order Retains for President Power to Sign Codes for Larger Trades if Necessary —Tariff Commission to Conduct Inquiry on Importation of Matches. President Roosevelt placed broad additional powers in f1 Hugh S. Johnson, Recovery Administhe hands of Gene trator, when on / ec. 30 he issued an Executive Order authorizing Genei1 Johnson to approve and put into-effect all codes for industri.1 s which'do not normally employ iiiore than 50,000 persons. In announcing this on Jan. 2, the ministration said: National Recovery Final approval of many pending codes of fair competition for relatively small industries was expedited to-day when President Roosevelt, by Executive order, authorized National Recovery Administrator Hugh S. Johnson to approve codes for industries employing 50.000 or fewer workers. Codes for major Industries—those normally employing in excess of 50.000 employees—will be submitted as before to the President who, in the Executive Order specifically retained for himself the power under the National Indus, trial Recovery Act to impose codes on industries. President Roosevelt has already approved codes for 195 industries: Public hearings have been held on 311 other.codes, rook of them for smaller Industries and subject, under this Order, to approval by the Administrator. The text of the President's Executive Order is as follows: "Executive Order—Delegating Further Functions and Powers to The Administrator for Industrial Recovery. Pursuant to the authority vested in me by and under the provisions of Title I of the National Industrial Recovery Act, and in addition to the functions and powers heretofore delegated to the Administrator for Industrial Recovery: I, Franklin D. Roosevelt. President of the United States, do hereby order that the following functions and powers be and they are hareby delegated to the Administrator for Industrial Recovery: (1) The approval of Codes of Fair Competition with the exception of Codes for major industries (being in general those industries normally employing in excess of 50.000 employees), as so classified by the-Administrator for Industrial Recovery, and with the exception also of any Code of Fair Competition imposed under Section 3 (c1) of said Title of said Act. (2) The approval of any amendment of modification to, exception or exemption from, or elimination of any one or more provisions of any Code . of Fair Competition. (3) Nothing herein contained shall be construed as amending any previous the of Government. Department other any to power delegations of FRANKLIN D. ROOSEVELT. Approval recommended: Hugh S. Johnson, Administrator. The White House, Dec. 30 1933. Other Executive action with regard to NRA codes was noted as follows in a Washington dispatch of Jan. 2 to the New York "Herald Tribune": In approving 14 codes to-day including the agreement covering the match manufacturing industry, the President acted on the recommendation of General Johnson and directed the Tariff Commission to investigate complaints that matches were being imported into the United States under conditions jeopardizing the effectiveness of the industry's code. Application for such an inquiry by the Tariff Commission was filed with the NRA as early as Nov. 3, when the industry was operating under the President's re-employment agreement. Emphasis was placed by the 73 American Match Institute, sponsor of the code, on the destructive competition of Japanese matches,long a subject of tariff controversy. accorded Under the provisions of the Recovery Act the President has been to authority to deal even to the extent of embargo with imports inimical American industries brought under codes. rose from The ratio of imports from Japan to United States production 10% in 1932 to 67% in the three months' period from August to October rePresident's the signed manufacturers 1933. Most American match it employment agreement on Sept. 6 1933, and have been operating under at tremendous disadvantage during the pendency of the code. The comby 1933 3 plaint against unfair competition from abroad was filed on Nov. the Match Institute. The President's order directs the Tariff Commission to proceed immediately with the investigation and to hold public hearings in connection with the allegations set forth in the complaint made by the Match Institute. The Executive order further directs that the National Recovery Administrator shall be represented at the hearing with the privilege of examining witnesses. Match Competition Severe. "The American match industry, unlike most industries," wrote General Johnson, in transmitting the match code to President Roosevelt, "neither overlaps, nor is overlapped, by any other industry. Competition from abroad has always been severe and,at present,the American match industry Is being subjected to rivalry never experienced before. "For instance, 9 different:countries have been dumping matches into the American market, and, of these. Japan represents a typical example. Matches from that country are produced at 11 cents a gross and are delivered to the American market for 44 cents, whereas it costs the domestic manufacturer 66 cents a gross. Mechanical lighters and pilot lights also represent factors in competition with this industry." The maximum hours permitted under the match code are 40 hours a is week or 16 hours in any two-day period. The basic minimum wagean 315.20 a week, or 38 cents an hour, for males and $12 a week, or 30 cents hour. for females. General Johnson. in transmitting the code to the White House, pointed out that wage earner employment declined 15.2% front 1929 to 1931. To bring the number of wage earners back to the 1929 level, it would be necessary for the industry to adopt a 43-hour week. However, on the basis of a 40-hour week, more wage earners will be placed on the pay roll of this industry than were employed in 1929. In addition to the code for the match Industry, the President to-day signed agreements with effective dates as follows: Jan. 1—Cast Iron pressure pipe industry; blouse and skirt manufacturing Industry. Jan. 8—Folding paper box industry; cinders, ashes and scavenger trade; coated abrasives industry; paper, stationery and tablet manufacturing; end grain strip wood block industry; velvet industry; shoe and leather finish, polish and cement manufacturing industry; cotton cloth glove manufacturing industry. Jan. 9—Household ice refrigerator industry. Jan. 14—Concrete pipe manufacturing industry. Alston H. Garside, Economist of New York Cotton Exchange, Finds Cotton Futures Market an Aid to Handling of Crops. The importance and value of the cotton futures exchange in aiding growers, merchants, and spinners to market, merchandise and manufacture cotton with a minimum of risk through price changes is shown in a recent pamphlet by Alston H. Garside, Economist of the New York Cotton Exchange, entitled "Specimens of Cotton Hedging," now being used by him in a lecture tour among southern agricultural colleges, the Exchange announced on Dec. 13. "The American cotton trade furnishes a demonstration of merchandising economy and stability carried to a degree which must be inexplicable to one who is unfamiliar with the manner in which the business is conducted," says the Cotton Exchange economist, adding: Fluctuations in cotton prices of 10, 20, or 30% within a month, and o 40 or 50% within a season, would seem to make it imperative that cotton merchants base their operations on prospective net margins after all costs of, say, 20 or 25% or selling prices, or possibly more, to offset unavoidable losses through adverse price changes, and would appear to create a situation in which merchants would make a very large profit on each pound of cotton handled in some years and would suffer a tremendous loss in other years. Yet, most cotton shippers and exporters are happy if they can obtain an average net return of 1% of selling prices, and it is a rare season in which the average net profit of all merchants rises materially above that figure. A fluctuation in the average profit of merchants equal to 1% of selling prices, or one-tenth of a cent a pound on 10-cent cotton, would constitute the difference between prosperity and depression in the cotton trade. For the net return of around 1%, the merchants bring together at strategically located concentration points throughout the South the bulk of the annual production of 2,000.000 growers, classify it into hundreds of varieties of different spinning values. canvass directly or through selling connections the 7,500 mills in this country and abroad to provide each mll with the varlet:es which it can use, move over hal:of the crop thousands of miles to Europe and the Orient, and finance and carry a large portion of the crop month after month until spinners of the world require it. The merchants hold huge stocks of the staple, stored in thousands of warehouses In this country and at the ports of Europe and the Orient, over long periods during which prices fluctuate to the extent of 30, 40 or 50 times the profits expected and obtained by them. Yet, most of the shippers and exporters stay in business year after year. This low cost and stability of cotton merchandising in the face of great fluctuations in prices is made poss:ble by the fact that merchants eliminate the greater portion of the price risk by making purchases and sales for future delivery on the "futures exchanges" to offset their holdings and commitments, that is, by hedging. Between 75 and 80% of the domestic cotton crop is handled by shippers and exporters, and practically all of the cotton so distributed Is merchandised on a hedged basis. A large portion of the remaining 20 or 25% which is distributed through other channels is also hedged. It is estimated that around 90% of the American crop is merchandised in ways in which future contracts are used for price Insurance, I. e.. for protection against loss through price changes. 74 Financial Chronicle World Cotton Production Estimated at 25,134,000 Bales This Season by New York Cotton Exchange as Against 23,505,000 Bales Last Season—Foreign Production Shows Largest Increase. World production of all kinds of cotton this season, including both American cotton and foreign growths, is about 25,134,000 bales, according to the latest estimate of the New York Cotton Exchange Service, as compared with 23,505,000 bales last season, and 26,535,000 two seasons ago. Although this season's indicated production is 1,629,000 bales larger than last season's relatively short crop, the Exchange Service said, it is 366,000 bales smaller than the average production of 25,500,000 bales in the past five seasons. Under date of Dec. 18 the Exchange Service added: The Indicated increase of 1,629,000 bales in world cotton production this season over last season is due almost entirely to increases in foreign production,since the American crop Is only very slightly larger than a year ago. On the basis of the December Government crop estimate, this year's domestic cotton production, in terms of running bales, will be in the neighborhood of 12.968,000 bales as compared with 12.961.000 bales last Year. an Increase of only 7,000 bales. Practically all foreign countries show indicated increases In cotton production over last season. In the majority of countries, these increases represent returns to the production levels of several years ago. Total indicated foreign cotton production this season is 12,166.000 equivalent 500-pound bales as compared with 10.544,000 bales last season, and an average of about 10,900.000 bales In the past five seasons. The Egyptian cotton crop is estimated at 1,784,000 bales as against the unusually small crop of 1,038.000 bales last year, representing a return to the levels of pre-depression years. The indicated Indian production is 4,320,000 bales, and is somewhat larger than the short crops of 4,109,000 and 3,334,000 bales last year and two years ago, respectively, but compares with previous crops of 4,500.000 to 5,000.000 bales. The largest crops on record are indicated for China and Russia. Chinese production is tentatively placed at 1.950.000 bales as compared with 1.871.000 last year, and Russian production at 1,964,000 as against 1,778,000. In Brazil, Peru. and Mexico. production is back to pre-depression levels. Miscellaneous foreign cotton-growing countries, which account for about 10% of the total foreign production, are not showing any tendency to expand their production in the aggregate. The depreciation of the dollar has placed the American cotton grower in a favorable position in foreign cotton markets, notwithstanding the increased supply of foreign growths. While the majority of foreign cottonproducing countries are no longer on the gold standard, with the result that foreign cotton producers are receiving larger returns for their crops than If their currencies were not depreciated, the American dollar has depreciated more than most foreign currencies, with the result that the American cotton grower is paid a higher relative price than his foreign competitor. As a result, he is much better able to compete in world markets and can sell his cotton abroad at lower prices than foreign producers can afford to sell theirs. Value of Cotton Exports from United States in November Increased Although Volume Dropped. Although the volume of cotton exports from the United States in November showed a decline as compared with the same period of 1932, the value rose by approximately $10,000,000, according to figures compiled in the United States Commerce Department's Textile Division. In issuing the figures under date of Dec. 14 the Division said: Total cotton shipments during November 1933. period amounted to 915,000 bales valued at $48.335.000, compared with 1,012,000 bales valued at $38,428,000 for November of last year. The value Increase for November of the current year was accounted for by the higher prices which prevailed in that month as compared with November a year ago Total shipments for the four months of the cotton season—August to November—aggregated 3,360,000 bales valued at 3175.480,000, compared with 3.206.000 bales and $128,040,000 for the corresponding period of 1932, an increase of 156.000 bales and $47.440,000. For the four months of the current season as compared with the corresponding four months of 1932 larger shipments wereshown mainly for Japan. United States, United Kingdom, France, Italy, China and Canada, while smaller shipments were recorded for Germany, Spain. Belgium and the Netherlands. Detailed figures for these countries for the four months in question appear below: Dollars. Bales. Japan United Kingdom France Italy China Canada Germany Spain Belgium Netherlands 1933. 1932. 1933. 802,6C0 576.000 415.000 297.000 107.000 89,000 635,000 114,000 55,000 47,000 643.000 540,000 412,000 277,000 84,000 64.000 789,000 117,000 70.000 50.000 41,618,000 29.724,000 21.886,000 15,622,000 5.490,000 4,635,000 33,074,000 6,171,000 2,898,000 2,471,000 1932. 24.841,000 20.962.000 17,086,000 11,021,000 3,223.000 2,308,000 32.244.000 4.963.000 2,820,000 2,062.000 Philippines Exempted from NRA Code Rules—United States Attorney-General Holds Islands' Products Are Under Foreign Import Regulations. The Philippine Islands are not within the scope of the National Recovery Administration said a dispatch, Dec. 18, from Washington to the New York "Times," which went on to say: This became known to-day when General Hugh S. Johnson made known a decision by Attorney-General Cummings in which the latter ruled that the Islands are not within the scope of the Act, inasmuch as it prescribes the formulation and enforcement of codes of fair competition for industries, but that articles brought into the United States from the Islands are subject to the same provisions of the Act as articles imported from other countries. The ruling that NRA code provisions do not apply to the Philippines was based upon an Act of Aug. 16 1916, which declares "that the statutory laws Jan. 6 1934 of the United States hereafter enacted shall not apply to the Philippine Islands, except when they specifically so provide." The ruling that articles imported do come under the provisions of the Act was based on Section 7, which defines inter-State and foreign commerce as including "trade or commerce among the several States and with foreign nations or between the District of Columbia or any territory of the United States." The question was brought to the attention of the NRA by manufacturers of cordage and twine, who claim that the product, brought in at low prices from the Islands, makes it impossible for them to make a fair code. The decision was generally regarded as favorable •by the NRA officials, since General Johnson has no desire to enforce codes overseas but does want to protect our manufacturers. Co-operative Office of Bureau of United States Department of Commerce Established in Puerto Rico— Will Aid Foreign Sales of Products Originating in Insular Possession. Establishment of a co-operative office of the Bureau of Foreign and Domestic Commerce, U. S. Department of Commerce, in Puerto Rico to provide the local business community with information and services designed to assist the foreign sales of products originating in the insular possession was announced Nov. 24 by Dr. Willard L. Thorp, Director. In return, the Bureau will receive through the Puerto Rico office such information concerning the trade and industry of the insular possession as is of value to American firms and individuals in Continental United States. An announcement issued in the matter by the Department of Commerce further said: All expenses incident to administration of the work locally will be borne by the Department of Agriculture and Commerce of Puerto Rico. This plan!of co-operation. Dr. Thorp stated, has been effected in response to a request addressed to'Secretary Roper by Robert H. Gore, Governor of Puerto Rico. for a closerrcontactibetween the Bureau and the Department of Agriculture and Commerce of Puerto/Rico. The Commerce Department has beenradvised that A. R. Chaves. Assistant Commissioner of Commerce for Puerto Rico, will direct the work In the insular possession. The arrangement continues In some respects the work formerly performed by the Puerto Rico office/of the Commercerepartment which was closed last July in keeping with the urgent neediforicurtalling Federal Government expenses wherever possible. In present form, it will parallel the co-operative arrangement now in effect between the Department and local chambers of commerce whereby the chambers maintainrat their own expense files of trade-promotionknateriallmadelavallable to them by the Bureau of Foreign and Domestic Commerce. While the co-operative agreemenejuseentered into is designed Primarily to assist the export sales of Puerto Rico products, Dr. Thorp expressed the opinion that the closer co-operation between the Bureau of Foreign and Domestic Commerce and the Department of Agriculture and Commerce of Puerto Rico should be instrumental in improving trade relations between the insular possession and therrnainland. Shipments of merchandise from continental United States to Puerto Rico in 1932 were valued at $48,780.141. Shipments from the insular possession to the mainland during the year hadra value of $74,290.250. The principal commodities sent to PuertoPticolfrom the mainland include grains, grain products, cotton manufactures. iron;and steel, vegetables fertilizers and machinery, official records show. Unmanufactured tobacco, cotton clothing for women and children, sugar grapefruit and pineapples are first-ranking in value among the commodities reaching the mainland from Puerto Rico. American Newspaper Guild Organized in Washington —National Body Will Absorb Guilds in Various Cities — Heywood Broun Named President — General Johnson Tells Delegates NRA Will Extend Protection. Delegates of newspaper guilds from various parts of the United States, meeting in Washington, on Dec. 15, organized the American Newspaper Guild, formed "to preserve the vocational interests" of newspaper editorial and reportorial workers, "and to improve the conditions under which they work by collective bargaining." Those present represented 30 newspapers, while 23 other employee associations sent telegraphic word that they would abide by the action of the delegates. Under the constitution as adopted the new organization will embrace the present newspaper guilds in cities, which will become chapters of the national guild. Heywood Broun, columnist for the New York "World-Telegram," was elected President, while the other officers chosen were: Lloyd White, Cleveland "Press," First Vine-President. Andrew McLean Parker, Philadelphia "Record," Second Vice-President. Edward D. Burks, Tulsa "World," Third Vice-President, R. S. Gilfillan, "Daily News," St. Paul, Fourth Vice-President. Adoniram Judson Evans, Richmond "Times-Dispatch," Fifth VicePresident. Emmet Crozier, Newark "Star-Eagle," Treasurer. John Eddy, the New York "Times," Secretary. Doris Fleeson, Washington correspondent New York "Daily News"; Ruth McKenney, Akron "Beacon-Journal," and Thomas Brown, Buffalo "Evening News," Executive Committee. Other details of the organization meeting follow, as given in a Washington dispatch of Dec. 15 to the New York "Times": The officers will serve for six months, when expansion of the organization is expected to necessitate another election. Setting forth purposes, the constitution states: Volume 138 "The purpose of this guild shall be to preserve the vocational interests of its members and to improve the conditions under which they work by collective bargaining, and to raise the standards of journalism by such measures as may be deemed advisable by the National Executive Committee of the guild." General Hugh S. Johnson told about 200 newspaper men and women at a luncheon to-day that he and the Recovery Administration would protect them once they had formed a union but that he could not urge them to organize. "What you may do or how you may do it, it is not proper for me to suggest or attempt to interfere in any way," he said. "But if you choose to organize yourself in guilds or in any other way for the purpose of collective bargaining, protecting your rights or any other purpose, nobody in this Administration can interfere." He also said employers could not prescribe that a person shall or shall not belong to any organization of workmen. While asserting that it was impossible to pull codes off a Christmas tree in the manner of Santa Claus, he said that the history of the codes "leads up to the purpose for which you are here." He said that statistics from a recent survey were now being compiled to determine what hours newspaper editorial and reportorial workers should be required to work weekly. Mr. Broun told the audience that "we are going to get a five-day week whether we get it under this code or later." He said that overtime accumulated while on a special story could be taken off when that duty was concluded. He added that newspaper men were not going to propose "tricky or impossible things" in any code. President Roosevelt suggested to General Johnson to-day that press associations, which are not included in the newspaper code now being prepared, might voluntarily agree to conform to the code. However, a separate code designed to provide for press association employees was presented to General Johnson by Morris Watson of the New York office of the Associated Press. This called for a 35-hour week for all editorial, clerical and mechanical workers, for minimum wages from $15 a week for office boys up to $125 a week for division managers, and for a graduated scale for notices of dismissal based on the length of service. Rate of 1.76% on Their Property Investment. Class I railroads of the United States for the first 11 months of 1933 had a net railway operating income of $435,804,479, which was at the annual rate of return of 1.76% on their property investment, according to reports just filed by the carriers-with the Bureau of Railway Economics and made public to-day. In the first 11 months of 1932, their net railway operating income was $294,012,783, or 1.19% on their property investment. The report goes on to say: Railroads Earn at the Property investment is the value of road and equipment as shown by the books of the railways, including materials, supplies and cash. The net railway operating income is what is left after the payment of operating expenses, taxes and equipment rentals but before interest and other fixed charges are paid. This compilation as to earnings for the first 11 months of 1933 is based on reports from 149 Class I railroads representing a total of 240,824 miles. Gross operating revenues for the first 11 months of 1933 totaled $2,850,116,642 compared with $2.883.542,516 for the same period in 1932, a decrease of 1.2%. Operating expenses for the first 11 months of 1933 amounted to $2,062,237,383 compared with $2,217,503,913 for the same period in 1932. a decrease of 7%. Class I railroads in the first 11 months of 1933 paid $239,105,900 in taxes compared with $259,606,210 for the same period in 1932,a decrease of 7.9%. For the month of November alone, the tax bill of the Class I railroads amounted to $17,581,303, a decrease of $1,808,805 under November 1932. Thirty-five Class I railroads failed to earn expenses and taxes in the first 11 months of 1933. of which seven were in the Eastern, ten lathe Southern. and eighteen in the Western District. Class I railroads for the month of November alone had a net railway operating income of $37,565,822, which, for that month, was at the annual rate of return of 1.74% on their property investment. In November last year. their net railway operating income was $33,396,305 or 1.54%. Gross operating revenues for the month of November amounted to $257,675.680 compared with $250.743,762 in November 1932, an increase of 2.8%. Operating expenses in November totaled $191,824,483 'compared with $187,695,868 in the same month in 1932. an increase of 2.2%. Eastern District. Class I railroads in the Eastern District for the first 11 months of 1933 had a net railway operating income of $260.975,121, which was at the annual rate of return of 2.28% on their property investment. For the same period in 1932, their net railway operating income was $197,426.026 or 1.73% on their property investment. Gross operating revenues of the Class I railroads in the Eastern District for the first 11 months of 1933 totaled $1,457.829,200. a decrease of 8-10 of 1 cent below the corresponding period in 1932, while operating expenses totaled $1,020,873,422. a decrease of 6.2% under the same period in 1932. Class I railroads in the Eastern District for the month of November had a net railway operating income of $21,024,015 compared with $19,912,485 in November 1932. Southern District. Class I railroads in the Southern District for the first 11 months of 1933 had a net railway operating income of $53,062,459, which was at the annual rate of return of 1.76% on their property investment. For the same period in 1932 their net railway operating income amounted to $19,925,230, which was at the annual rate of return of 0.66% on their property investment. Gross operating revenues of the Class I railroads in the Southern District for the first 11 months of 1933 amounted to $356,510,913, an increase of 2.8% over the same period in 1932, while operating expenses totaled $267,671,053. a decrease of 7.4%• Class I railroads in the Southern District for the month of November had a net railway operating income of$4,131,320, compared with $3.194.433 in November 1932. Western District. Class I railroads in the Western District for the first 11 months of 1933 had a net railway operating income of $121.766,899, which was at the annual rate of return of 1.19% on their property investment. For the same 11 months of 1932 the railroads in that District had a net railway 75 Financial Chronicle operating income of $76,661.527, which was at the annual rate of return of 0.74% on their property investment. Gross operating revenues of Class I railroads in the Western District for the first 11 months' period in 1933 amounted to $1,035,776,529, a decrease of 2.9% under the same period in 1932, while operating expenses totaled $773,692,908, a decrease of 7.9% compared with the same period in 1932. For the month of November alone, the Class I railroads in the Western District reported a net railway operating income of $12.410.487. The same roads in November 1932 had a net railway operating income of $10,289,387. CLASS I RAILROADS—UNITED STATES. 1933. Month of November— Total operating revenues Total operating expenses Taxes Net railway operating income Operating ratio—per cent Rate of return on property investment Eleven 2Ifonths Ended Nov. 30— Total operating revenues Total operating expenses Taxes Net railway operating income Operating ratio—per cent Rot...• ra.nm nn nrnnarto InvaRtmomt 1932. Per Cent Inc.(+) or Dec.(—). $257,675,680 3250.743,782 187,695,868 191,824.483 19,390,108 17,581,303 33,396,305 37,565,822 74.86% 74.44% 1.54% 1.74% +2.8 +2.2 —9.3 +12.5 ----- 22,850,116,642 22,883,542,516 2,062,237,383 2,217,503,913 259,606,210 239,105,900 294,012.783 435,804.479 76.90% 72.38% 1.19% 1.76% —1.2 —7.0 —7.9 +48.2 ----- Sound Money Rests on National Credit Says First National Bank of Boston—Sees Danger In Huge Expenditures by Federal Government. "It is imperative that the Nation follow policies that will make sound money possible," says The First National Bank of Boston in its New England Letter. "The fundamental requisite for sound money," the bank points out, "is the preservation of our National credit, with the establishment of a definite program whereby total expenditures will be brought within revenues. If colossal spending of public funds continues, we run the risk not only of seriously retarding business recovery and of impairing Federal credit, but inevitably paving the way for uncontrolled inflation." Regarding the Federal debt, the bank says: "The Federal debt has increased from slightly over $16,000.000,000 at the end of the fiscal year June 30 1930, to over $23,800,000.000 on Dec. 20 1933, and it is estimated that at the end of the Government's fiscal year It will closely approximate $27,000,000.000, an amount exceeding even the peak year of 1919. Our debt burden shows a stupendous increase since before the War. On a per capita basis the Federal debt is now about $190 as against $12 in 1913. On the other hand, per capita income for this year will be In the neighborhood of $360 as against $342 in the pre-war year. In other words, while our national income is but slightly above that of 1913, the Federal debt is nearly 16 times as great. Federal expenditures for the next fiscal year are estimated at more than $6,000,000.000. It was not until 1914 that our total annual expenditures amounted to 31,000.000,000. whereas our interest charges on the public debt alone will at the rate we are going reach that sum before very long. If State and municipal obligations are included, the aggregate public debt of the nation approximates $41.000.000,000, or $330 per capita, while total Government costs are lathe neighborhood of $17,000,000,000, or $136 per capita. "A rapidly mounting public debt, unless checked, leads inevitably down the slippery road to inflation and disaster. Recent history affords ample proof of this in the post-war experience of France and Germany. In both of these countries the Government officials refused to face realities by balancing the budget through a reduction in expenditures and increased taxation. Instead they turned to borrowing from the central bank until Government credit was weakened to such an extent that the panic-striken public converted cash into commodities and other tangibles. The accompanying sharp advance in prices made the problem of Government financing Increasingly difficult as revenues lagged hopelessly behind rising costs. The only alternative was to run the printing press. It was the tragic experience of these countries to which President Roosevelt evidently referred in his inaugural address when he said,'Too often in recent history liberal governments have been wrecked on rocks of loose fiscal policy. We must avoid this danger.' "It is generally appreciated that we face an emergency of unusual severity. Relief must be provided for those in actual distress, but indications are that too much extravagance and waste is committed in the name of charity. Many State and municipal relief problems have been left on the Federal doorstep and the Treasury is being drained for funds that should be provided by local sources. Not only is this a most unhealthy situation. as it breaks down the spirit of initiative and responsibility of individual communities, but it also imposes a crushing burden upon the Federal Treasury, which must eventually be paid for through taxation by all classes of the Population. Although part of the funds that are being expended for relief and for the stimulation of business will be recovered in the course of time, this amount is likely to be disappointingly small. "While the segregation of emergency and ordinary expenditures may be justified at this time we should not overlook the fact that the fundamental principles of accounting remain the same, that over a period of years expenditures not met out of revenues add to the debt and must be paid for out of taxes. In the meantime, the piling up of public debt with no designated official upper limit imposes a severe strain upon Federal credit and jeopardizes the market not only for Government obligations but also longterm credits for private enterprise and thus hinders the natural forces working for recovery. Moreover, there is real danger that many of these projects will not only entail permanent charges but necessitate the maintenance as well of a huge bureaucracy that will encroach upon and deaden private enterprise and saddle the country with excessive burdens. 1111 "A country is subject to the same laws of credit as that of a corporation or an individual The nation must before long demonstrate its ability to liva within its income so that there may be a basis for the restoration of confidence, which is the key to economic recovery. In order to place the Government financing on a sound basis, higher taxes will be necessary. The taxpayers of the country will, when they understand the situation, assume the greater burdens necessary, but they feel they have the right to insist that the vast public expensitures should be spent wisely, without waste or extravagance. 76 Financial Chronicle "An impregnable Federal credit is essential for recovery, for the maintenance of sound money, as well as for national solvency. Without it, uncertainty and confusion will continue, and stabilization of our currency will be impossible. The credit of the United States is still sound. With our resources we can support the present debt structure but the brakes on Otherwise, we run the danger increasing expenditures must be applied of the situation getting beyond control." Prof. J. H. Rogers Elected a Vice-President of American Statistical Association, Marking Defeat for "Hard Money" Economists—Prof. 0. M. W. Sprague Criticizes NRA—Convention Indicates Support of President Roosevelt's Monetary Policy by Close Vote—Attitude of American Economic Association Toward Statement on Gold Issued by Economists' National Committee. Economists advocating an "easy money" policy scored what was described as a victory over the "hard money" forces when the American Statistical Association, meeting in convention at Philadelphia on Dec. 29, elected as Fifth Vice-President Professor James Harvey Rogers of Yale University, who has been associated with Professor George F. Warren of Cornell in advising President Roosevelt on monetary policies. The election was effected by a close vote of 58 for Professor Rogers to 53 for Professor Harold L. Reed of Cornell, a critic of . he Administration's currency experiments. A Philadelphia dispatch of Dec. 29 to the New York "Times" described the election, and o her proceedings at the meeting, in pa.t as follows: Prof. Rogers was named by the nominating committee some time ago, and his election probably would have gone through in the usual unopposed *ay. as did the committee's candidates for the presidency and the seven other vice-presidencies, had he not issued a statement criticizing Prof. 0. M. W. Sprague of Harvard after the latter resigned as a Treasury aide. This caused a group of hard money men who had rallied around Prof. Sprague to organize a campaign and circulate a petition placing Prof. Reed in nomination. Among the signers of this petition were Dr. J. F. Ebersole of Harvard. Dr. Ray B. Westerfield of Yale and Dr. John P. Young of Occidental College, who, with Prof. Reed, were among the 17 signers of the resolution adopted here yesterday by the Economists' National Committee on Monetary Policy demanding an immediate return to the gold standard. Other signers were Leonard P. Ayers, Vice-President of the Cleveland Trust Co.; Bradford B. Smith of the same company; Donald R. Belcher of the American Telephone & Telegraph Co., and various university economists. Prof. Irving Fisher, exponent of the commodity or compensated dollar. who was acting Chairman of the nominating committee, announced Prof. Reed's opposition candidacy after reading the committee's regular slate. An uproar followed President Rice's ruling that the vote would be offidaily interpreted as a referendum of the opinion of members on monetary policy. Statements from Prof. Fisher and others made it clear that the members did not want the association to go formally on record as taking such a vote. Prof. Fisher said the simple issue of whether Prof. Rogers was competent to deal with questions of economic theory, which are all that are within the jurisdiction of the Fifth Vice-President, should not be mixed up with a decision on monetary policy. President Rice then withdrew his statement about the money referendum, saying that he apparently had been mistaken about the desires of the members. Seen as a Diplomatic Shift. Nevertheless, unofficial comment among officers and inembers indicated a widespread belief that President Rice's change of view was a diplomatic one and that many still regarded the vote as largely if not entirely related to the controversy over money. Ralph J. Watkins of the Bureau of Business Research of the University of Pittsburgh demanded in the debate which preceded the balloting whether "members of this body shall chastise Prof. Rogers for his sponsorships of a monetary theory with which many of us seem to be in disagreement?" Prof. Sprague in an address criticized the NRA and the Public Works and Civic Works programs as handicapping rather than stimulating business recovery. "Does it not make some difference how consumer purchasing power is brought into existence," he asked. "It does not follow that consumer purchasing power, however produced, will yield trade recovery. "A member of the Committee for the Nation told me that his company made greater sales in Texas this year than last. He thought this was conclusive evidence that Increase of purchasing power was desirable, and was a firm foundation for trade recovery. My only answer was that if the Government had furnished more money to the Texas cotton farmers and more money to the inhabitants of the East Side he would have sold still more goods. "We don't get anywhere with such superficial economic treatment. Now, I do not criticize the Government's cotton policy. It may have been wise to meet the situation of the moment, but it is certainly not wise for a period of years. "There are a great many things that are all right as palliatives. But we need to dig more deeply is we are attempting to bring about a trade recovery on a sound basis which will last for a number of years. The "Work Dole." "Let us take the Public Works and the Civic Works. That they are necessary, who can doubt? It depends on how they are handled. The United States a few years ago criticized Great Britain for the dole, which have a we were quite sure was an obstacle to British recovery. We now dole work dole, which is perhaps better than a dole proper. But a work does work civilian comparable which establishes rates of pay so high that not expand is worse than the British dole. "If the principal direction of labor and capital is to be in the production public of durable goods, such as housing, then a Government policy of trade works that increases the cost of that sort of goods works against recovery." a program Prof. Sprague asserted that recovery should be based upon would make it possible of low production and transportation costs, which again, and so employment to do business at a profit, thus produce full gradually and naturally lead to higher prices. Jan. 6 1934 He opposed the NRA as an attempt to stabilize prices at too high a level to permit of business expansion. From the same account we also quote: Disclaims Taking Sides. The American Economic Association, which,like the American Statistical Association, is a non-partisan body containing members of all shades of economic thought, issued a statement to-day through its Secretary, Frederick S. Deibler, dissociating itself from the gold standard statement issued yesterday by the Economists' National Committee on Monetary Policy, many of whose members also belong to the association. Mr. Deibler's statement read: "There is no official connection between the Economists' National Committee on Monetary Policy and the Ameriacn Economic Association. By charter provisions and unbroken practice, the American Ecohomic Association has taken no partisan position on any question of public policy. Its activities are confined to providing an open forum for scientific discussion." Protests against yesterday's gold statement had been received from Persons who confused the American Economic Association with the Economists' National Committee on Monetary Policy. Reference to the resolution of the Economists' National Committee appeared in our Dec. 30 issue, page 4625. John McHugh to Retire as Chairman of Executive Committee and as Director of Chase National Bank of New York—Will Continue as Chairman of Discount Corporation and Retain Other Directorships—Charles McCain also to Resign from Chase National Post to Enter Utility Field. John McHugh, Chairman of the Executive Committee of the Chase National Bank of New York advised the Board of Directors of that institution on Jan. 3 that he desired not to be re-elected to that position at the annual meeting of the Bank next week. Mr. McHugh will also withdraw from the Board of the Bank with the expiration of his present term as a director. It was made clear by Mr. McHugh that his withdrawal from the management of the Chase does not mean his retirement from activity in the financial district. He will continue as Chairman of the Discount Corporation, and plans to retain his other directorships. Following a brief vacation in California he will return to Wall Street, making his headquarters at the office of the Discount Corporation. An announcement incident to his resignation from the Chase National said in part: Mr. McHugh's withdrawal from the Chase removes from that institution one of the individuals who was chiefly instrumental in the merger of The Mechanics & Metals National Bank with the Chase in April 1926. Mr. McHugh was President of The Mechanics & Metals at the time, and on the merger assumed the Presidency of the Chase. In 1928 he was elected Chairman of the Executive Committee, which position he has held up to now. On retiring from the Chase Mr. McHugh concludes an active commercial banking career of more than 40 years. He has been continuously in the banking business since March 1891. Up to 1915, a period of 24 years, his services were rendered in the Middle West; the balance of the time his activities have been in New York City. Mr. McHugh came to The Mechanics & Metals National Bank in 1915 from the Presidency of the First National Bank of Sioux City. . . He was chief officer of the Sioux City Clearing House Association In the panic of 1907, and was a leading spirit in guiding the Middle West through the financial difficulties that attended the outbreak of the Great War in 1914. Mr. McHugh has the distinction of being the only individual who has served as President of two separate State banking associations; he has been President both of the Iowa Bankers' Association and the New York State Bankers' Association. Mr, McHugh was for 18 years on the Executive Committee of the American Bankers' Association. At the request of a group of banks in New York City, who were and still are stockholders of the Discount Corporation, Mr. McHugh organized and accepted the Presidency of that corporation. He later became Chairman of the Board, surrendering the Presidency to E. C. Wagner: It was also made known this week that Charles S. McCain will, on Jan. 9, resign his present position as Chairman of the Board of Directors of The Chase National Bank. Mr. McCain, it is announced, will next week be elected President and Chief Executive Officer of the United Light & Power Co. William Chamberlain who is now President will become Chairman of the Board, continuing his active connectior with the company. Mr. McCain will assume his new duties about Feb. 1. The announcement bearing on Mr. McCains activities says in part. Mr. McCaln's new duties will take him out of the commercial banking field which he came to New York to serve in 1926. In January of that Year he was elected Vice-President of the National Park Bank. and the following year became President. In August, 1929, when the National Park merged with the Chase, Mr. McCain became President of the consolidated institution and in the following year, at the time of the amalgamation with the Equitable Trust Company, was elected Chairman of the Board of the enlarged bank. Mr. McCain was born in Pine Bluff, Arkansas, on January 18, 1884. He entered Yale as a sophomore and was graduated in 1904. Immediately after graduation he went to McGehee, Arkansas, participated in the organization of a bank there and was elected Cashier. Within a period of a few months he left McGehee to assist the opening of a bank in Prescott, Arkansas. After three years as cashier of that institution, Mr. McCain resigned and joined the firm of A. B. Banks & Co., a leading insurance and banking firm in the Southwest. In 1913 he left that comapny to organize the Bankers Trust Company of Little Rock, becoming Vice President. In 1924. ten years after the bank's organization and when he was only 40 years of age, Mr. McCain assumed the Presidency. In January 1926 he came to New York. In 1931 he was a member of the Organization Committee charged by the Government with drafting the structure of the National Credit Corporation, and later served as head of its local loan committee. That same year he was elected a member of the New York Clearing House Committee, later becoming Chairman. Last year he was President of the American Acceptance Council. Mr. McCain at present serves as a Director or Trustee of many corporations. Aggregate Assets Oct. 25 of 5,057 Licensed National Banks $21,198,649,000 Compared With $20,860,491,000 Reported by 4,902 Licensed Banks June 30. Comptroller of the Currency J. F. T. O'Connor announced on Dec. 30 that the aggregate assets of the 5,057 licensed National banks operating on an unrestricted basis in the • continental United States, Alaska and Hawaii on Oct. 25 1933, the date of the last call for statements o: condition, amounted to $21,198,649,000, in comparison with assets totaling $20,860,491,000 reported by 4,902 licensed National banks as of June 30 1933, the date of the previous call. Loans and d scounts, including rediscounts, on October 25 amounted to ,257,937,000, which was an increase of $140,965,000 since June 30. The further showing of the National banks Oct. 25 was indicated as follows by the Comptroller: Investments in United States Government securities were $4,111,645,000 and showed an increase of $80,069,000 since the date of the previous call. Other bonds and securities held amounting to $3,383,270,000 were $43,215.000 more than on June 30. Balances due from correspondent banks and bankers of $3,833,678,000. which amount included reserve with Federal Reserve Banks of $1,684,024,000, showed an Increase in the four months of $40,218.000. Cash in vault aggregating $329,786,000 was $41,308.000 more than in June. The capital stock was 81,566,698,000 and represented par value of $1,567,526,000. The latter figure was composed of class A preferred stock of $74,844,000, class B preferred stock of $3,800,000 and common stock of $1,488,882,000. The book value of the capital stock showed an increase In the four month period of$51,051,000. The par value of the stock increased $50,321,000 since June 30 Surplus funds of $916,183,000, undivided profits of $264,376,000 and reserves for contingencies of $176,344,000, a total of $1,356,903,000, exceeded by $15,996,000 the amount reported four months previous The liability on account of circulating notes outstanding was $746,913,000, in comparison with $730,435,000 on June 30. Total deposit liabilities were $17,055,208,000. showing an increase of $281,093,000 since June. The aggregate on the date of the recent call included amounts due to banks subject to immediate withdrawal and certified and cashiers' checks outstanding of $2,145,922,000, United States Government deposits of $516,322.000, other demand deposits of $8058.277.000, and time deposits of $6,334,687.000. In the total of time deposits were included postal savings of $578,817,000, time certificates of deposit of $725,343,000, and savings pass book accounts of $4,394.201,000, the latter amount representing 12,597,503 accounts. Bills payable of $81,064,000 and rediscounts of $19.302,000, a to.al of $100,366,000, showed a decrease of $17,489,000 in the four months period. The percentage of loans and discounts to total deposits reported as of Oct. 25 1933 was 48.42 in comparison with 48.39 on June 30 1933. of Closed Banks for Business and Lifting of Restrictions. Since the publication in our issue of Dec. 30 (page 4640), with regard to the banking situation in the various States, the following further action is recorded: Re-opening ILLINOIS. Concerning the affairs of the Madison-Kedzie Trust & Savings Bank of Chicago, Ill., George R. Boyles, President of the institution, announced on Dec. 28 that Edward J. Barrett, the State Auditor of Illinois, had approved the plan for reorganizing the institution. Completion of this plan means that approximately $1,000,000 will be made available to the bank's depositors. The Chicago "News" of Dec. 29, authority for the above, continuing said: This plan contemplates certain deferments by depositors and also: (a) The organization of a new national bank at the same location with a capital of$200,000,surplus of $30,000 and a contingent reserve of $20.000. The stock has been sold to depositors, stockholders and others. (b) Additional money from the Reconstruction Finance Corporation, which loan has already been approved. (c) An advance of $250,000 by important stockholders, subordinated to the money of the depositors. The amount of the RFC loan has not been definitely decided, but it will probably be slightly in excess of $400,000. The signing up of agreements with depositors will require from four to six weeks, according to present expectations. These agreements are still In process of formation, but will go out by mail within a few days If the plan is successful, the new national bank probably will be known as the Merchants' National Bank, as this title is being reserved for it by the national authorities in Washington. This is the first of a series of bank reorganizations which are expected to release millions in ready cash to the Chicago area during the winter months. One of the reasons there have been fewer applications for liquidating loans from this era than expected was that the backers of a number of banks were prepared to raise additional money themselves and renew their investments in order to keep the institutions alive. While this took slightly longer, it, of course, preserves the service of the bank as a neighborhood center. Other reorganizations pending include the West Side Trust, Cosmopolitan and Aetna State. The reopening on Jan. 2, of the State Bank of Cuba, Cuba, Ill., was indicated in the Chicago "Tribune" of Dec. 31, which said: State Auditor Barrett has authorized the State Bank of Cuba, Cuba, Ill., to reopen next Tuesday morning, Jan. 2, on an unrestricted basis. The bank has been closed since the moratorium last March. 77 Financial Chronicle Volume 138 IOWA. Concerning the affairs of the University State Bank of Des Moines, Iowa, now being operated on a restricted basis, the Des Moines "Register" of Dec. 27 had the following to say: The waiver' plan under which the University State Bank hopes to open soon after Jan. 1 will be submitted to the State Banking Department for its consideration to-day (Dec. 27) or Thursday. R. M. Messerschmidt, Cashier, announced the required number of waivers affecting the required amount had been obtained. Waivers were obtained on more than 260 deposits, although 232 were imperative. The amount involved was more than the required 75%. Mr. Messerschmidt said. Other officers of the bank are Charles E. Wilson. President. and R. A. Crawford, Executive Vice-President. LOUISIANA. J. S. Brock, State Bank Commissioner for Louisians, has issued the following in regard to the Commercial Bank & Trust Co. of Covington, La., of which C. E. Shonberg is President, according to Covington advices on Dec. 26 to the New Orleans "Times-Picayune": The Commercial Bank & Trust Co., Covington, La., has met every requirement for certification for guarantee of deposits by the Federal Deposit Insurance Corporation. The bank is fairly solvent and there is no reason whatever for any uneasiness by its depositors. This insdtution has been certified for the guaranteeing of deposits by the undersigned. The Covington Bank & Trust Co., Covington, La., was put on a 5% restricted basis on Dec. 26, according to advices from that place to the New Orleans "Times-Picayune." A notice issued by the bank, signed by E. G. Davis, the President, said: In order to conserve our cash assets and for the purpose of perfecting reorganization plans, this bank will restrict withdrawals to 5% of deposits now on hand. This restriction of withdrawals includes all kinds of deposits. checking, savings and certificates. Checks drawn prior to Dec. 26 will not be honored excepting upon written request of the makers. Deposits made on Dec. 26 1933, and thereafter will be segregated and held in trust for depositors. The Inter-state Trust & Banking Co. of New Orleans, La. and ten additional State chartered banks in Louisiana operating on a restricted basis since the banking holiday were closed on Jan. 4 by order of J. S. Brock, State Banking Commissioner for Louisiana. The other institutions include the Commercial Bank of Lafayette & Trust Co., Lafayette; Bank of Delhi, Delhi; Commercial Bank of Arcadia, Arcadia; Commercial Bank & Trust Co., Alexandria; Merchants' & Planters' Bank, Bunkie; Bank of Moreauville, Moreauville; Covington Bank & Trust Co., Covington; Metairie Bank & Trust Co., Metairie; Castor State Bank, Castor, and Tangipahoa Bank & Trust Co., Hammond. New Orleans advices on Dec. 4 to the New York "Journal of Commerce," in reporting the above added: The Inter-State Bank has three branches and $14,000.000 in deposits. After the bank holiday closing it set aside 5% of the deposits credited on new passbooks and accepted new deposits with the understanding that additions would be held separate from old accounts. This will be recognized by Commissioner Brock who stated that the 5% and subsequently deposits will be treated as trust funds and disbursed within a few days after his men take charge. Depositors in the Inter-State have recently protested failure of bank officials to either reorganize or liquidate. MASSACHUSETTS. Beginning Dec. 22, dividends were to be paid to depositors in the Savings Departments of four closed Massachusetts trust companies: the Brockton Trust Co., Medford Trust Co., Revere Trust Co. and Salem Trust Co., as a result of arrangements completed the previous night by the State Banking Department and the release of the necessary funds by the Reconstruction Finance Corporation. The Boston "Herald" of Dec. 22, from which the foregoing is learnt, furthermore said: . . . . The total amount to be paid out is $1,600,000 which, with approximately $4,300,000 to be released Monday (Dec. 18) to depositors in the savings department of the Exchange Trust Co., $1,800,000 for depositors in the savings department of the Bancroft Trust Co. of Worcester and $3,000,000 to be released to-day to depositors of the Arlington Trust Co. of Lowell, makes a total of more than $10,000,000 for release within a week. Approximately 30,000 persons will share in the funds released by the four banks. NEW JERSEY. The Metuchen National Bank, Metuchen, N. J., which had been virtually closed since the bank holiday last March, was to reopen for unrestricted business on Dec. 30, according to advices from that place on Dec. 29 to the Newark "News," which continuing said: The opening will release 60% of the money on deposit in 3,500 accounts, amounting to $408.000. Philip P. Ruegger, Vice-President of the reorganized institution, and Harrison E. Wemett, Counsel, went to Washington yesterday to obtain the order ending the conservatorship. Ruegger went to Washington again to-day to obtain the license to permit the reopening of the bank. Transferring of the assets of the old bank to the reorganized institution will be done to-day and to-morrow morning before 11 a. m. Officers of the reorganized bank are: President, Roy C. Burr; Vice. President, Mr. Ruegger; Secretary, George E. Kelly; Directors, William 78 Financial Chronicle T. Campbell, James Lawless. Edward Kramer and Percy G. Craig, all of whom were directors in the old bank, and Mr. Wemett. NEW YORK STATE. Announcement was made Jan. 1 that the $60,000 of capital needed to start a bank in Kings Park, L. I., to take over the assets of the Kings Park National Bank. which has been in a conservator's hands since Mar. 4. In noting the above, a dispatch from Kings Park to the New York "Times," went on to say: Waivers of 40% of deposits, which are to be trusteed, are still to be obtained from part of the 1,500 depositors. Then the bank can be opened, probably late this month, releasing about $250,000 to the depositors That the First National Bank of Brockport, N. Y., would be reorganized into the Brockport National Bank by Jan. 15 and 40% would be paid to its depositors, was revealed on Dec. 27 by M. A. Shipman, the Federal conservator in charge of the institution, according to Associated Press advices from Brockton on that date, which continued: Simultaneously, It was disclosed that two former officers of the bank will be directed to appear at the opening of the Elmira term of Federal Court on Jan.9for arraignment on charges of misapplying funds and making false entries. They are Thomas Gordon, former President. and Rodney Shult, former Cashier. Both were indicted secretly by a Federal Grand Jury. They were released in $2,500 bond each after appearing before United States Commissioner Cyrus W.Phillips in Rochester. The Hudson River Trust Co. at Hudson, N. Y., was taken over on Jan. 2 by Joseph A. Broderick, New York State Superintendent of Banks. The deposit liabilities as shown by the bank's books at the close of business, Dec. 29, were approximately $2,650,000. A statement by the Banking Department read: Inasmuch as this institution has failed to obtain membership in the temporary fund of the Federal Deposit Insurance Corporation, the Superintendent believes that it cannot with safety and expediency continue in business. Louis J. Devantoy, a State bank examiner, was placed in charge of the business and property of the closed bank and designated Special Deputy Superintendent in charge. The Huguenot Trust Co. of New Rochelle, N. Y., was taken over by Joseph A. Broderick, State Superintendent of Banks for New York State, under Section 57 of the Banking Law, which provides for reorganization or liquidation. John F. McCloskey, a State bank examiner, was designated Special Deputy Superintendent in charge of its affairs. The New York "Times" of Jan. 3 in reporting the matter furthermore said: Inasmuch as the Huguenot Trust Co. failed to obtain membership in the temporary fund of the Federal Deposit Insurance Corporation, the Superintendent believed that it could not with safety and expediency continue In business. Its deposit liabilities were about $2.800,000 at the close of 1933. . . • The New Rochelle Trust Co. and the Central National Bank, the only other commercial banks in New Rochelle, are operating under the Federal deposit insurance plan, executives of those institutions announced yesterday (Jan. 2). The Westchester Trust Co. of Yonkers, N. Y., on Jan. 2, was taken over by Joseph A. Broderick, State Superintendent of Banks. The institution, with deposits of approxi,000,000, had been doing a restricted banking mately business since May 13 when it asked the State Department of Banks to place it on a limited business basis in order to halt withdrawals that threatened to send it to the wall. Mr. Broderick announced on Jan. 2 that he decided to take the bank over for reorganization so that there might be made available to the 10,000 depositors 50% of the deposits and 100% to the secured and preferred depositors. The New York "Herald Tribune," from whose report of the matter we have quoted above, went on to say: Under the plan of reorganization it is proposed to turn a portion of the bank's assets over to a new corporation known as the Citizens' Trust Co. of Yonkers, with a capital stock of $200,000, surplus of $100,000 and a debentures or preferred stock of $200,000. In addition to the 5% which the general depositors will receive as a result of this transaction, they will also receive dividends from time to time from the Banking Department from the proceeds of that part of the bank's assets which has not been disposed of to the new corporation. Just when these additional dividends will be available or what they will amount to could not be learned. Mr. Broderick announced that immediately upon approval of his plan by the Supreme Court in Westchester County, where the proposition is now pending, he would make application to the Reconstruction Finance Corporation for a loan of $2,960,000, which Mr. Broderick says he was assured would be granted upon compliance with certain conditions. The depositors of the defunct bank are to be asked to subscribe to the capital stock in the new bank, which will have a par value of $10, but which is to cost subscribers $15 to supply the surplus. "We are advised," said Mr. Broderick,"that the depositors' committee formed during the time that the trust company was under restriction will be represented on the reorganization committee of the new trust company and that it is anticipated that the community of interest of these committees will provide a full subscription to the capital stock." Mr. Broderick says he expects the reorganization committee back of the new corporation shortly to file a certificate of organization with him for approval. ''In the liquidation of the Westchester Trust Co.." a statement from Mr. Broderick said, "the Superintendent of Banks will proceed in the usual orderly manner in order that the most can be secured for depositors without subjecting the community to the hardship that would result from forced liquidation." Jan. 6 1934 PENNSYLVANIA. That the terms of the reorganization plan, approved by the Pennsylvania State Department of Banking, had been consummated by the reorganization committee of the Lycoming Trust Co. of Williamsport, Pa., and the new bank to be known as the West Branch Bank & Trust Co., would begin business on Jan. 5, was announced on Jan. 4, by Dr. William D. Gordon, State Commissioner of Banking, according to the Philadelphia "Ledger" of Jan. 5, which continuing said: The capital structure of this institution will be $1,062,500, divided as follows: Common stock, $225,000; preferred stock, $500,000: surplus, $225,000; undivided profits, $50,000; reserve, $50,000, and expense fund, $12,500. This opening will free $2,484,519.47 of the restricted deposits of the old Lycoming Trust Co., which, together with the segregated or unrestricted deposits of $1,019,000, will give the West Branch Bank & Trust Co. total deposits of $3,503,519.47. The commercial assets of the institution tota $4,566,019.47 and its trust funds total $12,967,000. The institution also has qualified for Federal Reserve membership. Officers are: President, Peter G. Cameron; Vice-President, Harold Brown; Vice-President & Trust Officer, Charles Schreyer; Treasurer & Assistant Secretary, Garrett Mitchell; Secretary & Assistant Treasurer, Walter Geiger. The campaign to obtain $1,500,000 in subscriptions to stock of the new Union National Bank of Reading, Pa., closed on the night of Jan. 3, with a large over-subscription. The new institution will acquire the assets of the Farmers' National Bank & Trust Co., the Penn National Bank & Trust Co., and the Reading National Bank & Trust Co., three institutions which merged the early part of last year (as noted in the "Chronicle" of Feb. 18, page 1152). At the time of the union resources of the institutions totaled more than $30,000,000, and there were more than 35,000 depositors. The merged banks failed to open after the bank holiday last March. Advices from Reading on Jan. 4, appearing in the "Wall Street Journal," from which the foregoing is taken, went on to say: A loan of $6,000,000 from the RFC is made possible for the new bank through the suCCOSI3 of the campaign for new stock. The institution plans to open within a few weeks. The Reading and Penn banks will be reestablished later as their assets are realized upon. First disbursement to depositors of the three institutions will be made shortly, 35% to the Farmers' and 25% each to the Reading and Penn depositors. We learn from the Philadelphia "Ledger" of Jan. 4, that reorganization plans for five national banks in Philadelphia, Pa., have been approved by F.J. T. O'Connor, Comptroller of the Currency, according to an announcement made the previous day. These banks, it was stated, are among 183 nationally chartered institutions in Pennsylvania which have operated on a restricted basis since the banking holiday in March of last year. The Philadelphia banks, whose reorganization plans have been approved by the Treasury Department's agency, subject to affirmative action by depositors and stockholders, are: Commercial National. National Bank of Olney. Northwestern National Bank & Trust Co. Sixth National Bank. Southwestern National Bank. The reorganization plans provide for the release, upon the reopening of the banks, of 100% of the secured deposits and percentages of unsecured deposits ranging from 70 to 20%. The "Ledger" continued in part: Comptroller O'Connor's outline of restricted national banking activities in Pennsylvania was contained in a letter to Modern Finance, of Pittsburgh. With respect to three other Philadelphia national banks, which have been operating on a restricted basis, Mr. O'Connor said "their reorganizations plans have been disapproved. There is, however, a Possibility that, with improved conditions and necessary corrections, these banks may yet reorganize." The Philadelphia banks whose reorganization plans have been disapproved are: Lehigh National Bank. Mount Airy National Bank & Trust Co. Tulpehocken National Bank & Trust Co. VIRGINIA. We learn from Harrisonburg, Va., advices on Dec. 27 to the Washington "Post" that The First National Bank of Harrisonburg, one of the Shenandoah Valley's oldest and strongest banks, has absorbed the Stonewall Bank, of McGaheysville, Va., so depositors of the latter institution may have the benefit of the new Federal deposit law. We quote further from the dispatch mentioned, as follows: The Sonewall Bank, organized in 1920, had a capital of only $12,000. This must be increased to $25,000 to benefit under the guarantee plan. The directors and stockholders deemed it wiser to vote for absorption rather than raise the additional capital needed. The bank was sound, serving one of the richest agricultural communities in Rockingham County. This leaves Rockingham County, outside of Harrisonburg, with three State banks and one National bank. The Bank of Grottoes recently entered the Augusta-Rockingham Bank, a consolidation of the Weyers Cave and Mount Sidney banks in Augusta County, and Grottoes in Rockingham, in order to take advantage of the deposit plan. The Stonewall Bank was the youngest of Rockingham's financial institutions. Cashier Arthur Yancey will continue with the First National. Volume 138 Financial Chronicle ITEMS ABOUT BANKS, TRUST COMPANIES, &C. Matthew S. Sloan, former President of the New York Edison Co., has resigned as a director of the Guaranty Trust Co., New York, in compliance with the Banking Act of 1933, as have Marshall Field, of Field, Glore & Co., investment bankers, and Joseph R. Swan, President of the Guaranty Co., security affiliate of the Guaranty Trust. Mr. Sloan is affected by Section 8A of the Act, it is stated, and Mr. Field by Section 32, which prohibits dealers in securities from serving on bank boards. Mr. Swan tendered his resignation because the Guaranty Co. is being div3reed from the parent institution under provisions of the Banking Act demanding the separation of securities affiliates. It was learned, Jan. 3, that for this reason William C. Potter, President of the Guaranty Trust, and Mend P. Callaway and Eugene W. Stetson, Vice-Presidents, retired some time ago as directors of the Guaranty Co. The Central Hanover Bank & Trust Co., New York, announced on Jan. 2 the appointment of L. Timmerman as a Vice-President, G. D. Blake and R. Wells, Assistant VicePresidents, and John J. Radley, Jr., and E. G. Herendeen, Assistant Secretaries. W. T. Oliver was appointed as Assistant Treasurer and C. C. Cornell an Assistant Manager of the foreign department. F. Abbot Goodhue, President of the Bank of the Manhattan Co. announced on Jan. 4 the promotion of H. B. Danmeyerfrom Assistant Cashier to Assistant Vice-President and the appointment of W. L. Croker and John J. Kelly, Jr., as Assistant Cashiers. Complying with the Bank Act of 1933, which prohibits investment bankers from being directors of members banks of the Federal Reserve, except by permission of the Federal Reserve Board, W. A. Harriman, of the investment banking firm of Brown Bros., Harriman & Co., New York, has resigned from the board of directors of the Bank of the Manhattan Co., also of New York. Charles L. Tyner, Chairman of the board of directors of thelHome Insurance Co., has been elected a director of the Corn Exchange Bank & Trust Co., New York, it was announced by the bank on Jan. 3. Mr. Tyner is also a trustee of the Title Guarantee & Trust Co., Chairman of the board of directors of the City of New York Insurance Co., Franklin Fire Insurance Co. of Philadelphia, Home Fire Security Corp., and is a director of several other insurance companies. Due to the Banking Act of 1933, Thatcher M. Brown, partner of Brown Bros., Harriman & Co., investment bankers, has resigned from the board of directors of the United States Trust Co., New York. Avery D. Andrews, of Sullivan & Cromwell, has resigned asia director of the Irving Trust Co., New York. The board of the company now consists of 25 members, the maximumlprovided by the Banking Act of 1933. WalteriP. Chrysler, President and Chairman of the board of the Chrysler Corp., and J. Ford Johnson, Jr., of Chas. D. Barney & Co., have resigned as directors of the Commercial National Bank & Trust Co., New York. The statement of condition of the Guaranty Trust Company of New York as of December 31 1933, issued Jan. 3, shows deposits of $1,019,582,652, and total resources of $1,419,553,813. The Company's capital and surplus accounts stand unchanged at $90,000,000 and $170,000,000, respectively, and undivided profits are $7,985,636. The undivided profits show a decrease of $3,247,858 for the year, due to $5,000,000 appropriated out of such account last May for the purpose of increasing the reserves of the Company. Junius B. Powell, formerly with the Guaranty Company of New York, and for the past four years Vice-President of the North American Securities Company, is now associated with the firm of Spencer Trask & Co. Henry. A. Colgate has been admitted to membership in the firm of Spencer Trask & Co. as a limited partner. The statement of condition of Manufacturers Trust Company of New York City as of December 30 shows deposits of $381,818,793 against $347,191,607 on September 30. Total resources are $507,153,043 compared with $439,569,231 in Sep- 79 tember. Capital structure, which reveals the effect of the sale of capital notes to the Government last November and the simultaneous transfer of $10,000,000 from surplus and undivided profits to reserves, shows capital unchanged at $32,935,000, surplus and undivided profits of $10,297,483, capital notes of $25,000,000 and reserves of $25,691,281. The Continental Bank & Trust Company of New York in its statement of condition as of the close of business December 30 1933, reports cash and due from banks as $8,011,870; call loans to brokers, $8,572,415; United States Government bonds,$9,578,162; New York City and State bonds,$5,087,069; and other marketable securities, $383,972. The aggregate of these first line liquid assets is $31,633,488 to satisfy deposits of $31,981,379. After reserve for the January 1 dividend, capital, surplus and undivided profits stand at $8,627,379. The Federation Bank and Trust Company of New York in its statement of condition at December 30 shows total resources of $7,818,916 compared with $7,173,141 on Jane 30 1933. Deposits are shown as $6,150,899, against $5,555,300 on June 30. Capital and surplus stand unchanged at $1,500,000 and undivided profits amounted to $62,207 compared with $38,782 on June 30. Reserves are $55,809 compared with $27,802 on June 30. Cash amounted to $1,584,474 compared with $1,137,828 and U. S. Government securities to $517,327 against $85,000. Statement of the Sterling National Bank & Trust Company of New York shows as of December 30, total resources of $19,851,824, which compares with $14,032,736 at the end of 1932. The bank's statement on June 30 1933 showed total resources of $18,966,271. Increases are shown in cash and U. S. Government securities; cash amounted to $3,077,101 as against $2,623,413 and U. S. Government securities to $10,630,334, against $5,073,482 in the preceding year. Deposits now at $15,508,102 compare with $10,646,994 in the preceding year. As of June 30 the bank's deposits were $14,707,876. Capital, surplus and undivided profits stand at $2,504,917. The corresponding figure for 1932 was $2,517,359. Reserves are shown as $211,467 as compared with $115,042 at the end of 1932. A petition was filed on Dec. 29 on behalf of D. J. Faour & Bros., private bankers (Dominick J. Faour and George J. Faour) 85 Washington St., New York, for an extension of time in which to meet obligations, under provisions of the Bankruptcy Act. The bank was taken over by the New York State Superintendent of Banks on Feb. 14 1933, reference to which was made in our issue of March 4, page 1489. The deposit liabilities, as shown by the books as at the close of business Feb. 11 1933, were approximately $500,000. According to the petition two reorganization committees have been formed to take over separately the banking business and the mercantile business which the partnership conducted. There are assets, it was stated, including real estate, which are of more than sufficient value to liquidate all debts if held until conditions in the realty market improve. 1 2% was ordered to be On Dec. 29 a final payment of 5/ made to the creditors of the former private banking house of L. Scotto & Sons, Brooklyn, N. Y., which was closed by the New York State Banking Department on Sept. 29 1928. The payment was ordered by Edward C. McDonald, referee in bankruptcy, following a meeting of the creditors on Dec. 29. This brings the total payments to the creditors to 45/ 1 2% of their claims. As noted in our issue of Oct. 6 1928 (page 1900) two petitions in involuntary bankruptcy were filed on Oct. 1 that year in the Federal Court in Brooklyn against Raphael Scotto, head of the concern. In its issue of a week ago (Dec. 30), the New York "Times" said: Assets were listed at about $400,000 and liabilities were placed roughly at $1,250,000. Raphael Scotto later was convicted of embezzling part of the bank's funds and was sentenced to from four and one-half to ten years in prison. He was released after three and a half years. In addition to the listed assets property valued at almost $500,000 later was found by Sidney Strongin and Nathaniel Goldstein, trustees in bankruptcy. Edward Ward McMahon, an attorney for the trustees in bankruptcy, submitted a claim of $25,000 for his services. This was approved by the creditors. The claim of $37,500 presented by Samuel Hoffman, another attorney for the trustees, was opposed by certain among the creditors. Referee McDonald is expected soon to submit his final report in the case to the United States District Court, when a judge of which will pass on the final payment to the depositors and fix the fees of the attorneys for the trustees. 80 Financial Chronicle The National Bank of Tuxedo, Tuxedo, N. Y., capitalized at $50,000, waschartered by the Comptroller of the Currency. on Dec. 22. It replaces the Tuxedo National Bank. C. S. Paterson is President and John Luft, Cashier, of the new bank. The Comptroller of the Currency on Dec. 20 chartered the Crestwood National Bank in Tuckahoe, Tuckahoe, N.Y. The new bank succeeds the Crestwood National Bank of Tuckahoe and is capitalized at $50,000. Ralph B. Feriola is President and R. L. Palmer, Cashier of the institution. William S. Funnell, a Vice-President and a director of the First National Bank & Trust Co. of Huntington, L. I., died in Huntington on Dec.30 at the age of 70 years. Mr.Funnell was a charter member of the First National Bank. He was Treasurer of the Emergency Relief Fund Committee and had taken an active part in the financial campaign for the new $300,000 Huntington Hospital. The resignations of H. Edmund Machold as Chairman and Floyd L. Carlisle as a director of the Northern New York Trust Co., of Watertown, N. Y., which Mr. Carlisle founded, were announced on Jan. 2 by Bernard A. Gray, the President. Associated Press advices from Watertown, on the date named, added: The resignations follow a governmental ruling that directors of securities or other financial institutions may not serve on boards of commercial banks. On Dec. 27, The Andover National Bank, Andover, N. Y., was granted a charter by the Comptroller of the Currency. It succeeds The Burrows National Bank of Andover and the Andover State Bank, and is capitalized at $100,000. Andrew D. Fuller heads the new organization. A charter was granted on Dec. 29 by the Comptroller of the Currency to the Central National Bank of Washingtonvine, Washingtonville, N. Y. The institution, which is capitalized at $50,000, succeeds the First National Bank in Washingtonville. Thomas Fulton is President, while E. Y. Dusenberry is Cashier of the new bank. The First National Bank in Gouverneur, Gouverneur, N. Y. capitalized at $100,000, was granted a charter by the Comptroller of the Currency on Dec. 29. The institution takes the place of The First National Bank of that place. Charles M. Tait heads the new bank with Guy F. Baker as Cashier. Effective Dec. 13 last, The Florida National Bank, Florida, N. Y., with capital of $100,000, went into voluntary liquidation. The institution was succeeded by The National Bank of Florida. Effective at the close of business Dec. 28 1933, The Tuxedo National Bank, Tuxedo, N. Y., went into voluntary lfquidadon. The National Bank of Tuxedo is the successor institution. On Dec. 21 the Windham National Bank of Bellows Falls, Bellows Falls, Vt., was chartered by the Comptroller of the Currency. The institution is capitalized at $50,000, consisting of $25,000 preferred and $25,000 common stock, and succeeds the National Bank of Bellows Falls. Kenneth J. Ferguson is President and Willard E. Hanson, Cashier, of the new bank. A charter was granted on Dec. 29 by the Comptroller of the Currency to the Montpelier National Bank at Mont. pelier, Vt. The new institution, which succeeds The Montpelier National Bank, is capitalized at $100,000. Fred Blanchard is President and Luman B. Howe, Cashier. John W. Pillsbury, Treasurer of the New England Trust Co. of Boston, Mass., since July 12 1923, retired on Jan. 1 under the company's pension plan, according to Boston advices on Jan. 2 to the New York "Times." Mr. Pillsbury had been with the company since Feb. 27 1890. He has been succeeded as Treasurer by Stanley A. Lawry, who had been an Assistant Treasurer since Jan. 31 1930. Frank A. Hagarty, a former Mayor of Hartford, Conn., and for several years Vice-President, general counsel, and head of the trust department of the closed City Bank & Trust Co. of Hartford, on Jan. 2 became associated with the Hartford National Bank & Trust Co. of that city in its trust de- Ian. 6 1934 partment. The Hartford "Courant" of Jan. 3, in reporting the above, went on to say: In a statement announcing the affiliation, the bank pointed to the experience of Mr. Hagerty as equipping him "in an unusual way for work in this field." Mr. Hagerty, soon after being admitted to the Hartford bar, held his first public office when he was elected a member of the Board of Councilmen. After two years service with that body he became a member of the Board of Aldermen. For a while he was a prosecuting attorney in Police Court and later was a member of the Board of Park Commissioners. In 1907 he was appointed Postmaster here by President Theodore Roosevelt. After eight years in this position he returned to the practice of law. The Republican candidate for Mayor in 1916, he was elected and served one term. War-time Mayor, he was active in local war work. In 1922 Mr. Hagarty became Vice-President, general counsel and head of the trust department of the City Bank, and two years later was elected a director. Edward Miller, Vice-President and a director of the First National Bank of Madison, N. J., died suddenly of a heart attack on Dec. 30 while driving his automobile towards the Madison railroad station. He was 77 years old. Mr. Miller was born in West Livingston, N. J., and went to Madison in 1879. For 40 years with a brother he conducted a meat market, from which he retired eight years ago. He was a director in the James Building & Loan Association. Effective Jan. 2, the Town Trust Co. of Montclair, N. J., became a branch of the Bank of Montclair, and will hereafter be known as the Grove Street office of the institution, according to advices to the New York "Times" from Montclair, which added: The directors of the institutions decided to make the change for purposes of economy. The Bank of Montclair had a substantial original investment In Town Trust. On Dec. 22, the Comptroller of the Currency chartered the First National Bank of Spring Lake, Spring Lake, N.J., with capital of $100,000. It succeeds the First National Bank of that place. L. C. Ritchie and Jas. P. Van Schoick are President and Cashier, respectively, of the new bank. The Comptroller of the Currency on Dec. 29 1933 granted a charter to the Metuchen National Bank, Metuchen, N. J., with capital of $100,000. The new bank succeeds The Metuchen National Bank. Roy C. Burr and J. W. Griffiths are President and Cashier, respectively, of the institution. The Comptroller of the Currency on Dec. 20 issued a ;Tarter to the First National Bank in New Freedom, New Freedom, Pa. The new institution, which is capitalized at $50,000, replaces the First National Bank of that place. William S. Grove is President and William H.Freed, Cashier. A charter was issued by the Comptroller of the Currency on Dec. 18 to the Fredonia National Bank, Fredonia, Pa., with capital of $50,000, of which half is preferred and half common stock. The new bank succeeds the Fredonia National Bank, and is headed by H. C. Hays, with P. T. Paxton as Cashier. The proposed merger of the Main Line Trust Co. of Ardmore, Pa., with the Pennsylvania Co. for Insurances on Lives & Granting Annuities of Philadelphia, will be acted upon by the stockholders of the latter at the annual meeting on Jan. 15, according to the Philadelphia "Financial Journal" of Jan. 2, which went on to say: The stock of the Main Line Trust Co. is held by trustee for the benefit of stockholders of the Pennsylvania Co. Consummation of the merger is also subject to the approval of Dr. William D. Gordon, Secretary of Banking of Pennsylvania. In a letter to stockholders C. S. W. Packard, President of the Penney]. Nania Co. says: "This merger is made possible by recent legislation permitting the merger of a banking institution located in a city of the first class with a banking institution located in a township of the first class contiguous to a city of the first class. The merger will permit the maintenance of a branch of the Pennsylvania Co. for Insurances on Lives and Granting Annuities at Ardmore. The merger will give to the branch at Ard• more all of the facilities and service rendered to the depositors and customers of the company at its main office and its other branches. On Dec. 29 the Comptroller of the Currency chartered the First National Bank in Birdsboro. Birdsboro, Fla., with capital of $80,000. The institution succeeds The First National Bank of Birdsboro. Henry M. Willits is President of the institution and Harry E. Dearn, Cashier. In regard to the affairs of the defunct Park •Bank of Baltimore, Md., we learn from the Baltimore "Sun" of Dec. 21 that depositors of the institution on Dec. 20 were paid 5% of their claims by John J. Ghingher, Bank Commissioner for Maryland, and the bank's receiver, under an order signed the early part of December by Judge Charles Volume 138 Financial Chronicle F. Stein in the Circuit Court. We quote from the "Sun" in part as follows: Approximately 83,554 checks, totaling $168,614.77, were mailed, according to officials connected with the Commissioner's office. In addition, the receiver paid $10,000 in partial payment on account to attorneys representing him in the receivership proceedings. Judge Stein authorized the payment, which is for services rendered since August 12 1932, the date the hank failed. No auditor's account in connection with the distribution has been filed, because, it was said, under a new law passed by the last Legislature the Bank Commissioner is authorized to make such an accounting directly, without employing outside auditors. Attorneys pointed out that yesterday's distribution, which was the first paid by the receiver, was made without fear or prejudice to anyone's rights. At the time Judge Stein authorized the distribution, it was revealed that although the receiver had sufficient funds to make the payment, arrangements had to be made with the holders of a $575,000 mortgage on the Park Bank Building. Later it was disclosed that arrangements had been made to withhold sufficient funds to take care of any deficiency in the event of a mortgage foreclosure. After the mortgage became due through default, it was pointed out, a method of amortization was worked out with the mortgagee whereby the mortgagee was to have three months' notice before any distribution to creditors was made. Total deposits in the Park Bank amount to $3,372,295.46, it was said. Before making the 5% distribution, the receiver had on hand $281,296.80, according to figures released early in December. The First National Bank in Honaker, Honaker, Va., with capital of $50,000, was chartered by the Comptroller of the Currency on Dec. 16. The new bank succeeds the First National Bank of Honaker, and is headed by F. B. Gent, with Dallas M. Hubbard as Cashier. A charter was granted on Dec. 16 by the Comptroller of the Currency to the First National Bank in Onancock, Onancock, Va., capitalized at $50,000. The new bank succeeds the First National Bank of that place. I. W. Bagwell is President and George H. Powell, Cashier, of the institution. The First National Bank of Hampton, Va., capitalized at $50,000, was placed in voluntary liquidation on Nov. 6 last. The institution was replaced by The Citizens' National Bank. On Dec. 16 the Comptroller of the Currency issued a charter to the First National Bank in West Union, West Union, West Va. The new institution is capitalized at $50,000 and succeeds the First National Bank in West Union. J. E. Trainer is President and J. A. Freeman, Cashier, of the new bank. The Merchants' & Miners' National Bank of Oak Hill, Oak Hill, West Va., was chartered by the Comptroller of the Currency on Dec. 19. The new bank represents a conversion to the National System of the Merchants' & Miners' Bank, and Is capitalized at $100,000. J. S. Lewis is Cashier. The People's National Bank in Bryan, Bryan, Ohio, capitalized at $50,000, was chartered by the Comptroller of the Currency on Dec. 22. Elmer 0. Smeltz is President and F. L. Niederaur, Cashier, of the institution, which succeeds the First National Bank of Bryan. The First National Bank at Carrollton, Carrollton, Ohio, with capital of $50,000, was chartered by the Comptroller of the Currency on Dec. 18. It succeeds the First National Bank in Carrollton. Scott Brandon is President and W. C. Anderson, Cashier, of the new institution. Officers and directors of the Southern Ohio Savings Bank & Trust Co. of Cincinnati, Ohio, announce that the institution has become a member of the Federal Reserve System. The chief officers include Arthur Espy, President; Malcolm McAvoy, Vice-President; Glenn F. Barrett, Treasurer; George E. Roberts, Secretary, and David Reece, Trust Officer. The Central National Bank at Cambridge, Ohio, was granted a charter on Dec. 26 by the Comptroller of the Currency. It replaces The Central National Bank of Cambridge and is capitalized at $125,000. C. Ellis Moore and T. R. Hazard are President and Cashier, respectively, of the new organization. A charter was issued by the Comptroller of the Currency on Dec. 29 to the National Bank of Montpelier, Montpelier, Ohio, with capital of $50,000. It succeeds The Montpelier National Bank. R. E. Purcell and Ross Stickney are President and Cashier, respectively, of the new institution. The Comptroller of the Currency on Dec. 29 issued a charter to the First National Bank in Bellaire, Bellaire, 81 Ohio. The new bank, which succeeds The First National Bank of Bellaire, is capitalized at $300,000. J. F. Mellett is President and J. E. Green, Cashier, of the institution. Effective Dec.12 1933, the First National Bank of Charlestown, Charlestown, Ind., was placed in voluntary liquidation. The institution, which was capitalized at $25,000, was succeeded by the First Bank of Charlestown. A charter was issued by the Comptroller of the Currency on Dec. 20 to the First National Bank in Wabash, Wabash, Ind., which succeeds the Farmers' & Wabash National Bank of that place. The new bank is capitalized at $100,000, made up of $45,000 preferred stock and $55,000 common stock. Mark C. Honeywell and B. P. Allen are President and Cashier, respectively, of the new organization. A payment of 4% was authorized on Dec. 22 by Judge Joseph Burke for distribution to the depositors of the defunct Commerce Trust & Savings Bank of Chicago, Ill., out of funds collected from the stockholders under the double liability provision, according to the Chicago "Tribune" of Dec. 23, which went on the say: The money was collected by Howard K. Hurwith, receiver for stockholders' liability, from holders who voluntarily paid before suit was instituted against them. It is said to be one of the few cases in recent years in which funds collected from stockholders have enabled deposit payment. Previous payments amounting to 50% of claims had been paid by the State Auditor's receiver, William L. O'Connell. The bank closed in May 1931, with deposits of approximately $571,000. Capital stock of the bank amounts to $200,000. The amount collected from holders to date is $22,858. Judgment against holders who have not settled claims is now being sought by Mr. Hurwith. From the Chicago "Journal of Commerce" of Dec. 29 we learn that increase of capital through the issuance of preferred stock is being considered by the American National Bank & Trust Co. of Chicago. Additional capital is desired, It was said, to increase the ratio of capital funds to deposits. Present capital stock amounts to $1,000,000, and the issuance of about $750,000 preferred stock under the Government's capital strengthening program is contemplated. Deposits of the institution on Oct. 25, date of the last National bank call, were $13,015,000. It is understood, the paper mentioned said, there has been a substantial gain in the last two months. Depositors of the defunct Citizens' State Bank of Watseka, Ill., were to receive a 5% dividend on Dec. 28, according to a dispatch by the Associated Press front that place on Dec. 27, which said: Sidney Ring, receiver for the Citizens' State Bank of Watseka, said to-day (Dec. 27) that an additional 5% payment, totaling almost $20,000, would be distributed to depositors to-morrow. This will be the fourth payment since the bank closed in December 1931. It will bring the total paid to $145,546, or 35%. The National Bank of Savanna, Savanna, Ill., capitalized at $50,000, was granted a charter by the Comptroller of the Currency on Dec. 20. The new institution replaces the First National Bank of Savanna. John S. Young and Laurence H. Miles are President and Cashier, respectively, of the new bank organization. The Comptroller of the Currency on Dec. 26 granted a charter to the First National Bank in Peru, Peru, Ill. The new institution succeeds the State-National Bank of Peru, and is capitalized at $100,000, of which $25,000 is preferred stock and $75,000 common stock. E. L. Meade is President and Joseph L. Mankcrwski, Cashier. Effective at the close of business Dec. 4 1933, the Central National Bank & Trust Co. of Battle Creek, Mich., went into voluntary liquidation. The institution, which was capitalized at $500,000, was succeeded by the Central National Bank at Battle Creek. The Comptroller of the Currency on Dec. 26 granted a charter to the Farmers-Merchants National Bank in Princeton, Princeton, Wis. The new organization succeeds The Farmers-Merchants National Bank of Princeton, and is capitalized at $50,000, made up of $10,000 preferred and $40,000 common stock. Hyman Swed is President, while E. H. Mevis is Cashier of the new bank. The National Exchange Bank of Fond du Lac, Fond du Lac, Wis., was chartered by the Comptroller of the Currency on Dec. 15. It succeeds the Commercial National Bank of Fond Financial Chronicle 82 du Lac and is capitalized at $450,000, consisting of $250,000 preferred and $200,000 common stock. William Mauthe is President and William R. Ward, Cashier, of the new institution. Consolidation of the Northwestern National Bank of Minneapolis, Minn., and the Minnesota Loan & Trust Co. of that city became effective on Jan. 2 with receipt of authorization from the Comptroller of the Currency, according to a dispatch by the Associated Press from that city on the date named, which furthermore said: The new institution will be known as the Northwestern National Bank St Trust Co. of Minneapolis, and will have deposits in excess of $90,000,000. Stockholders of both institutions are to meet Jan. 9 to elect directors, who, in turn, will name new officers. Two Duluth, Minn., banks, The Northern National Bank of Duluth and the Northern Trust Co. of Duluth, capitalized at $1,000,000 and $200,000, respectively, were consolidated on Dec. 27 1933. The new organization, which is known as The Northern National Bank of Duluth, is capitalized at $1,000,000 with surplus of $200,000. On Dec. 20 a charter was issued by the Comptroller of the Currency to the National Bank of Rockwell City, Rockwell City, Iowa. The new bank, which replaces the Rockwell City National Bank, has a capital of $50,000, made up of $25,000 preferred and $25,000 common stock. George B. Leman and E. B. Lemen are President and Cashier, respectively. The Washington National Bank, Washington, Iowa, with capital of $100,000, was placed in voluntary liquidation on Dec. 15 last. The institution was succeeded by the National Bank of Washington. The Comptroller of the Currency has authorized a payment of $400,000 to depositors in the closed Commercial National Bank of Waterloo, Iowa, according to an announcement by Congressman A. C. Willford. Waterloo advices to the Des Moines "Register," reporting the above, went on to say: The payment will amount to about 8%. A previous payment of 40% has been made. —4 -- Merger of four Oklahoma State banks into two institutions, and the removal of another from Colony to Weatherford had been approved by the State Banking Board, was announced on Dec. 21 by W. J. Barnett, State Bank Commisstoner, according to the "Oklahoman" of Dec. 22, which furthermore said: The Bank of Claremont was merged with the Bank of Commerce of the same city. F. V. Askew, Bank of Commerce President, was named head; Guy 0. Bayless, Cashier of the Bank of Claremore, Vice-President, and H. 0. McSpaddin, ‘'Iashier of the Bank of Commerce, Cashier. The Board approved the merging of the First State Bank of Lahoma, Garfield County, with the Bank of Ringwood, Major County. The new bank Will move to Meno and open there Jan. 1 as the Guaranty State Bank of Meno. The Colony State Bank of Colony, Washita County, will remove Jan. 1 to Weatherford, Custer County, and open as the Guaranty State Bank. The First National Bank at Ponca City, Ponca City, Okla., was chartered by the Comptroller of the Currency on Dec. 20. The new bank is capitalized at $100,000, consisting of $50,000 preferred stock and $50,000 common stock. L. D. Edgington Is President and F. M. Overstreet, Cashier, of the new bank. The Union National Bank of Barbourville, Barbourville, Ky., was Chartered by the Comptroller of the Currency on Dec. 27. The new bank, which is capitalized at $50,000 succeeds The First National Bank of Barbourville and The National Bank of John A. Black of Barbourville. Noah Smith Is President of the new institution and Matthew McKeehan, Cashier. Jan. 6 1934 The more than 3,000 depositors of the closed Decatur Bank & Trust Co., Decatur, Ga., were to receive a final dividend on Dec. 23 from the proceeds of a $340,000 loan from the Reconstruction Finance Corporation obtained by Ryburn G. Clay, President of the Fulton National Bank at Atlanta, Ga., and Chairman of the Sixth Federal Reserve District Deposit Liquidation Committee. In reporting the matter, the Atlanta "Constitution" of Dec. 23 said, in part, as follows: Announcement that the final payment would go to the depositors to-day (Dec. 23) was made by Mr. Clay late Friday after the loan arrived from Washington, where it was obtained by him and Marshall Hunter, President of the Liberty National Bank of Savannah, Ga., member of the Clay Committee. The Decatur Bank & Trust Co. is the first Georgia bank to obtain a loan to pay off depositors under the plan recently announced by the Reconstruction Finance CorpOration. . . . Payment of depositors of the Decatur Bank & Trust Co. ahead of other closed banks in Georgia was made possible as the result of the bank having organized the Decatur Development Co. as a mortgage company to handle the funds. Legal inability of the State Superintendent of Banks to borrow money has made it impossible for any banks to secure loans from the Reconstruction Finance Corporation except through a mortgage company. There is now pending in Georgia courts a decision on the legality of loans to the Superintendent of Banks. Unless and until a favorable decision is obtained permitting the Superintendent of Banks to borrow, liquidation of closed State banks is possible only through a mortgage company. . . . The payments now being made to depositors of the Decatur Bank & Trust Co. represent 521 / 2% of each deposit, and complete the 100% payment of •all customers of the bank. The Decatur Bank & Trust Co. closed in 1931. Soon thereafter payment of 471 / 2% of all deposits was made possible through an advance made by the Fulton National Bank of Atlanta. When it appeared certain that the Decatur loan would be closed before the Christmas holidays, Mr. Clay conferred with officers of the Decatur Development Co. (organized in 1931 to handle the affairs of the defunct bank) and all of the numerous details necessary to facilitate immediate payment were completed. The Farmers' National Bank of Chinook, Chinook, Mont., was placed in voluntary liquidation on Dec. 18 1933. The institution, which was capitalized at $50,000, was succeeded by The Farmers' National Bank in Chinook. With earnings totaling $9,302,000, or three times the present annual dividend requirements, and with total deposits showing an increase of $76,393,000 for the past 12 months, the Bank of America (California) has maintained the record of consistent progress which has characterized the institution since the Giannini management again took control. The bank's announcement continued: Dividends, which were resumed in June, were paid in the amount of $2,325,000, representing three quarterly disbursements on the capital stocks of Bank of America National Trust & Savings Association, and the Bank of America (California). After payments of these dividends, and appropriating $2,390,000 for reserves, $4,587,000 was added to undivided profits, bringing the total of this account as of Dec. 30 1933 to $15,176,000. The Bank of America is again a billion dollar bank, the year-end statement shows, with resources of the combined State and National banks totaling $1,005,676,000. Total deposits amounted to $826,051,000, which compared with $749,658,000 at the close of 1932. An increase in cash of $35,818,000 and a $49,130,000 increase in the bank's investment in United States Government bonds for the year just past are shown in the report of condition. Hilliard E. Welch, Vice-President of the Bank of America National Trust & Savings Association at the main office in Sacramento, Calif., has been appointed Manager of the Marysville, Calif., branch of the institution and assumed the new office Jan. 2, succeeding T. P. Coats, who recently resigned to become President of the Production Credit Corporation, in Berkeley. The announcement went on to say in part: In 1898 Mr. Welch became associated with a general merchandise firm at Lodi, becoming Manager in 1907, a position which he retained until 1921, when the company was sold. Through his mercantile connection, he became interested in banking, the vocation which became his life career. Mr. Welch was elected a director of the Lodi National Bank in 1909. Three years later he became Vice-President, and in the following year was chosen President of the institution. He remained chief executive of the Lodi bank until 1927, when it became a part of the Bank of America branch banking organization. In 1928. Mr. Welch was transferred to Sacramento, where he became Vice-President and Manager of the Bank of America's Fort Sutter Branch, which was later merged with the bank's Sacramento main office. Effective Dec. 23 1933, Th-e First National Bank of McMinnville, McMinnville, Tenn., and the First Trust Co. of McMinnville, McMinnville, capitalized, respectively, at $180,On Dec. 16 last the First National Bank of Eugene, Ore., 000 and $90,000, were consolidated under the title of The First National Bank of McMinnville. The new organization rounded out 50 years of continuous banking. An illustrated ,booklet commemorating the establishment of the institution, is capitalized at $180,000 with surplus of $100,000. in 1883, states that its founders were two pioneer bankers, - Oxford, N. C., was granted a T. G. Hendricks and S. B. Eakin, who became, respectively, The Oxford National Bank, charter by the Comptroller of the Currency on Dec. 22. The President and Vice-President-Cashier. The present officers new institution is capitalized at $100,000, consisting of half of the institution, which has grown to an institution with preferred and half common stock, and replaces the First Na- capital of $200,000, are as follows: Richard Shore Smith, tional Bank of Granville, at Oxford. C. W. Bryan is Presi- President; Darwin Bristow and W. T. Gordon, Vice-Presidents, and 0. A. Houglum, Cashier. dent and J. W. Medford, Cashier, of the new bank. 83 Financial Chronicle Volume 138 The United States National Bank of McMinnville, McMinnville, Ore., with capital of $125,000, was placed in voluntary liquidation on Dec. 1 last. The institution was taken over by The United States National Bank of Portland, Ore. The United States National Bank of Salem, Salem, Ore., went into voluntary liquidation on Dec. 15 last. The institution, which had a capital of $100,000, was absorbed by The United States National Bank of Portland, Ore. Effective Dec. 8 1933, The First National Bank of St. Helens, St. Helens, Ore., capitalized at $50,000, went into voluntary liquidation. It was absorbed by The United States National Bank of Portland, Ore. On Dec. 15 1933, The Washington National Bank of Olympia, Olympia, Wash., capitalized at $100,000, was placed in voluntary liquidation. The institution was absorbed by the First National Bank of Seattle, Wash. The seventy-eighth annual statement of the Bank of Toronto, Toronto, Ont., Canada, just recently issued, and which covers the fiscal year ended Nov. 30 1933, shows liquid assets of $63,298,000, equal to over 62.52% of all liabilities to the public; $17,561,000 is represented by cash, bank balances and notes and checks of other banks; securities total $41,654,000, and call loans $4,083,000. The Toronto "Globe" of Dec. 30, whose review of the report we have quoted above, goes on to say: "Interest-bearing deposits increased during the year $3,725,000, and non-interest-bearing are down $1,297,000—a net increase of $2,428,000 in deposits. Commercial loans show little change, having increased $180,000, the increased deposits being employed in short-term Government securities. The security holdings of the bank are 97% Dominion and Provincial Governments and high-grade municipalities. Profits, which show a nominal decrease of $0,471, amounted to $1,037,922, after deducting expenses, accrued interest on deposits, and making full provision for all bad and doubtful debts. After providing for dividends and the usual appropriations for taxes, officers' pension fund and depreciation on bank premises, there remained $118,372 to be carried forward, which increased the profit and loss account from $496,301 to $614,674." The Bank of Toronto Is capitalized at $6,000,000 and has a rest fund of $9,000,000. Total assets of the institution stand at $116,999,163. The fifty-ninth annual report of the Banque Canadienne Nationale (head office Montreal), covering the fiscal year ended Nov. 30 1933, has just recently been issued. Net earn- ings for the period, after the usual deductions, are shown in the statement as $970,350 (as against $972,075 in 1932), which when added to $210,244, the balance of credit of profit and loss brought forward from the preceding fiscal year, made $1,180,595 available for distribution. This sum was allocated as follows: $700,000 to pay four quarterly dividends at the rate of 10% per annum; $30,000 contributed to pension fund; $105,000 to pay Dominion Government taxes, and $125,000 representing provision for payment to the Treasurer of the Province of Quebec under Statute 14 Geo. V. Ch. 3, leaving a balance of $220,595 to be carried forward to the current fiscal year's profit and loss account. Total assets of the institutiOn are shown in the statement at $126,890,620, of which $73,660,057 are quick assets, or equivalent to 64.59% of the bank's liabilities to the public, while total deposits (savings and current) are given at $101,884,934. The institution's total liabilities to the shareholders (capital, rest fund, dividends and undivided profits) are shown at $12,398,196. Announcement was made from the head office (Montreal) of the Royal Bank of Canada on Dec. 29 of the appointment to its Board of Directors, of J. S. Norris, President of the Montreal Light, Heat & Power Consolidated, according to the Montreal "Gazette" of Dec. 30. Mr. Norris was born in Montreal and has been connected with the power company since 1896. He has spent practically his entire career in the public service field, it was stated. The directors of the Westminster Bank, London, announce the retirement of E. F. Robinson, a Joint General Manager of the institution, after 44 years of valued service. They have appointed as his successor W. T. Ford, at present an Assistant General Manager. A. W. Bentley, the Manager of the Lombard Street office, has been appointed an Assistant General Manager, while T. H. R. Lawman, at present Deputy Manager at the Lombard Street office, becomes the Manager at that office. Net profit of Barclays Bank, Ltd., of London, Eng., according to cable advices received by the New York representative's office this week, amounted for the year 1933 to £1,604,680, which, with the amount of £577,760 brought forward from the previous year end, makes a total of £2,182,440. Comparing figures for 1933 with those of the previous year, an increase in the net profit is disclosed of approximately £30,000. Dividends declared remain unchanged at 10% per annum on the A shares and 14% on the B and C shares. These rates are identical with those paid for many years past by this prominent member of the "Big Five" English banks. PRICES IN 1933 AT THE NEW YORK STOCK EXCHANGE. The tables on the following pages show the lowest and highest prices at the New York Stock Exchange of Railroad, Industrial and Miscellaneous bonds and stocks, and also of Government and State securities, for each month of the past year. The tables are all compiled from actual sales. Under a resolution of the Governing Committee of the Stock Exchange, prices of all interest-paying bonds since Jan. 1 1909 have been on a new basis. The buyer now pays accrued interest/in addition to the stated price or quotation. Previous to 1909 the quotations were "flat"—that is, the price included all accrued interest. Income bonds and bonds upon which interest is in default are still dealt in "flat." COURSE OF PRICES OF RAILROAD AND MISCELLANEOUS BONDS. 1933. BONDS RAILROAD BONDS. Ala Gt Sou lit 5s ser A___ _1943 1943 1st cons 4s series B Albany & Susq 1st gu 3Ms_1946 Allem'& West 1st g gu 4s 1998 1942 Alleg Val gen guar 4s July 1995 Ann Arbor lit 41 4s Atch Top & SF gong 48-1995 1995 Registered Adjustment g 48---JulY 1995 Stamped . July 1995 Registered Cone g 4s of 1909 1955 Conv a 44 of 1905 1955 Cony g 4s of 1910 1960 Cony deb 4%8 1948 Rock Mtn Di,let 4s sir A1965 Trans-Cont Short L lit 46'58 Cal-Arls lit & ref4 Ms A_1962 At l& Char A L 4Ms Der A 1944 lit 30-yr Ss series B 1944 January February March April May June July Auaust September October November December Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low MO --------------------------------75 75 83 --------------------------------60 60 68 78 83 83 85 80 8312 8234 84 8312 87 8212 ----------------65 85 --------65 65 6512 9412 9714 96 9814 90 9014 89 93 92 9452 8434 2334 27 27 2712 28 28% 2212 24 23 274 25 94 97 8814 93 8234 90 88512 9312 89113 9012 9112 - - -- -- -- -- -- ---- - - -- - --- 891 ,91 90 77 79 76 87 8333 85 8812 88 8634 8114 85 8414 8812 83 8812 79 854 7712 8113 37513 8758 85 8312 76 8534 654 96 33 95 90 8613 88 79 80 76 7714 $74 76 73 82 80 7612 81 79 8312 763s 78% 87312 78 72 84 8012 77 82 73 7812 7712 80% -_ -. ____ __-_ ____ -___ -___ -_-_ 9012 95 87 9334 85 89 s79 87% 87 9514 92 8334 8412 8312 85 84 84 --------78 82 81% 95 9812 92 9534 90 9314 --------89 9512 9412 9514 8812 95 9412 9718 9012 9714 884 9318 8714 91 ----------------------------------------75 72 7212 7434 7512 6712 70 68 754 7618 85 8734 84 8174 8314 88014 81 8412 3817s 86 79 c83 79 81 -_ -_ 378 s78 99 $9812 102 101 102 84 83 8412 83 87 97 954 97523 9758 994 98 97 99 97 9873 75 90 90 87 8974 9312 92 96 934 9512 9614 8814 Ati Coast L 1st g 4sJuly 1952 89 7512 70 77 Gen unified 484s ter A 1964 5112 56 51 55 Louise & Nash•coil 04s1952 45 5234 4614 56 9412 93 80 81 86 86 774 7713 98 9413 38 3514 964 9512 91 9312 8938 87 90 38713 93 8012 90 83 80 8212 90 87 9014 7713 7712 7712 9874 9612 9834 45 3712 43 9718 90 96 94 9113 92% 89 88134 888 90 8314 8914 84 75 8313 ____ 951 36 9134 89 84 84 8514 82 77 74 8813 83 ____ 862 97% 93 40 31 9634 8414 92 8412 88 3744 89 754 77 81 774 82 75 7414 82 77 82% 75 s7812 8034 --------80 95 1015, 9434 9812 8814 8212 8812 8174 8374 82 9112 99 9112 97 89 91 9778 91 9738 8714 895, 90 89 895 ,-___ 92 95 90 9318 8812 69 73 66 70 71 83 83 8712 8958 9134 8814 9034 84 5112 5512 52 5833 5812 7113 7153 7853 78 8213 77 7938 73 461, 533a 511.. BON 6014 681, 671, 717* 6873 7434 68 731, 64 Deferred delivery. c Cash sale. • Negotiability mpalred by maturity 90 80 8412 7514 97 35 94 91 8514 85 82 75 86 65 9713 32 9234 90 864 86 86 81 85 62 94 27 88/ 1 4 85 80 7734 88 81 89 66 9613 321a 9434 85 855, 854 82 754 82 875 80 80 9534 91 84 79 924 89 9418 8973 ____ ____ 92 86 81 81 80 9818 5113 9412 9378 ____ 88 8934 7622 8612 7112 7712 77 8312 78513 85 73 6112 6474 67% 7544 6934 84 704 57 64 6114 73 84 Financial Chrcnicle Jan. 6 1934 1933—Continued. BONDS January February March April May June Juts August September Octobvr November December Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Atlantic & Dan, tat g 4s_ A948 1314 20 18 2212 16 18 14 26 25 3978 374 437 4112 52 4212 48 244. 1948 8 12 13 16 --------16 16 18 3012 30 3612 363 50 40 42 AU & Yadkin 1st gu 4s__1949 --------20 26 --------20 20 43 44 44 53 45 4612 30 44 Austin & N W 1st 5s Bait & Ohio 1st 94$ 1948 7734 86 7712 86 75 79 74 7814 87412 834 8318 867 86 9214 8858 9234 Registered 20-year convertible 410_1933 67 7014 6812 7712 .67 7012 .69 85 .82 94 .8914 9512 .9514 10058' '1 1014 10158 Stamped (10% pt red) 61 66 62 68k! *623 66 Refund & gen 5s series A 1995 3412 4184 3434 443 3318 40 37 48 4718 63% 61,2 6812 67,2 7612 6734 7312 1st g 5. 1948 81 9012 804 904 8018 8514 37918 83 80 90 8812 945 9458 100 99 9934 Ref & gen 6s series C____1995 3712 4912 41 5012 40 4812 397 5012 51 7234 69 7714 7334 83 75 8134 P L E & W Va Sys refit 48 1941 704 7518 6812 751s 614 6912 62 68 6612 82 7812 8278 8258 8778 8312 864 Southwestern Div 1st 58_1950 6112 70 59 70 55 644 59 64% 65 78 7512 8212 7884 89 857 8878 Tol 8c On Div lst&ref 4sA '59 5234 564 53 56 4912 54 454 50 50 654 66 72 67 7012 70 74 Ref 5s aeries D 2000 3434 4158 35 4314 354 39 3512 4614 473 6312 60 68 66 75 6858 7134 Ref& gen 53series F 1996 --------------------------------------------------------68 6934 Convertible 45a 1960 2618 3212 26 34 264 32 2512 34 34 52 48 58 55 67 5814 63 Bangor & Aroostook 1st 5s 1943 9112 96 94 Con ref 4s 1951 65 7318 71 Beech Creek 1st gu4s 1936 80 24 guar gold 5s 1936 External 1st 330 1951 Big Sandy 1st 4s 1944 8714 Boston & Maine lit 5s A C1967 62 lst mtge 5s series 2 1955 64 1st gold 41‘• series JJ 1961 59 Boston & NY Air List 414_1955 5412 Buff Roch &Pitts gen a 5s 1937 Consol 434. 1957 Bur Ced Rap & Nor 1st 58_1934 Certificatesof Canada Sou cons gu 5s A I962 Canadian Nat 434s_Sept 15'54 1957 Gold 454. Gold 410 1968 1969 5s Guar gold 5s Oct 1969 1970 Guar gold 5s Guar ti 41is____June 15 1955 1956 Guar gtdd 434. Guar g 430 1951 Canadian Nor s f 72 1940 25-year deb•f 634s g 1946 Feb 15 1935 10-yr 4 hs Canadian Pac 4% coup deb Ilk Coll trust 44is 1946 1944 5s equip tr temp ctfs 1954 Col trust 5s Col trust 434. 1960 Carolina Cent 1st cong 4s1949 Carolina Clinch & 01st 5.1958 1st & con 6s series A 1952 9534 88 9434 90 73 6638 7212 67 80 8212 8212 80 8714 74 7314 70 5412 90 57 5818 60 55 9712 74 74 70 63% ____ 5878 5878 55 55 85 8912 388 89 88 3434 43 35 4434 36 4812 54 4614 50 50 90 72 37 4712 38 3714 3714 31 4484 51 37 43 36 3418 30 45 37 8458 904 88 9114 8214 8984 8578 8858 6112 7012 9618 100 71 7884 78 83 81 88 65 74 60 69 60 687 492 62 6212 694 964 101 711: 764 7834 85 8034 8618 654 6912 6212 6834 62 6812 5212 5912 94 76 93 72 96 77 944 100 764 83 9812 100 7818 84 80 --------83 83 87 87 88 92 9012 9212 9134 93 ____ 6378 63 60 58% ____ 53 5412 48 5434 --75 74 70 63 RR% 73 71 18 6418 60 90 77 76 71 67 9312 76 7558 704 65 9358 96 83 80 831 : 80 771 76 684 63 90 57 50 90 91 9712 9678 100 99 10012 100 10012 52 63 5312 6112 624 60,8 6756 6034 66 6112 60 7012 57 5814 4978 5718 36 46 35 35 _ _59 5814 59 55 88 --------85 88 4218 3338 46 4618 68 50 45 47 45 60 96 83 83 7878 67 40 33 37 _-_ -_-_ ---- ---- ---- ---- ---- ---_ 90 70 ____ 60 60 554 58 40 36 3118 27 38 37 99 10014 100 101 78 8284 75 79 90 75 7458 68 6212 94 81 8214 78 66 5412 96 59 7638 7414 61 53 54 4812 65,2 9734 7312 8312 8214 67 634 64 554 5912 9418 6712 79 77 6238 5918 59 5148 70 9858 7912 8412 8478 6812 70 70 60 9812 10112 101 1024 75 7814 7418 75 92 924 90 90 90 67 69 66 58 90 7512 76 71 6512 904 68 68 66 5512 9018 5914 61 56 54 9812 100 50 56 27 35 29 29 91 6112 63 60 50 91 731 : 72 68 54 9533 9588 5412 6134 35 38 82 85 8412 8512 --------80 80 78% 85 84 91 79 89 92 97 92 9612 89 9212 8818 91 84 92 8458 8734 81 834 794 8214 8014 86% 8514 8812 883 9112 9118 9678 93 9712 96 9834 9638 984 9812 101 977 1001 8314 8734 7934 83% 7958 8314 7934 8612 85 89 88 9114 9114 9734 9338 9712 06 99 964 9812 9812 10112 977 9634 8212 an 380 8334 80 8278 7934 8658 38484 8814 8814 91 1z 0118 9658 93 9712 064 9834 97 100,4 10012 105 9812101% 8412 9112 9018 93 027 9614 9634 10314 98%10278 1011:10458 10258 105 10518 10858 10412 10658 8758 9312 4844 8814 8412 88 8712 9334 8412 8814 84 8814 8434 9112 38934 934 93 9678 9618 10312 9814 1025 10134 105 10278 1054 10478 10834 10412106% 887k 9314 8843 88 85 8712 85 9114 38978 9258 94 9618 964 10314 9812 10234 10178 105 103 105,4 105 10834 10412 10714 8518 90 8218 854 804 85 8158888'! 8712 9058 9014 c95 9938 10112 9978 10258 10214 10658 9434 100% 9512 100 8 10334 83 87% 80% 8312 80 8418 8014 87 38512 89,8 8812 914 915 9734 934 98 49618 997 98 10058 10012 106 1015 995810258 834 8784 8058 83% 7934 84 8014 874 8534 894 8858 91% 9158 9734 937 9734 9658 1004 984 10034 10058 10512 9934 103 100 10478 98 10134 9634 10014 9714 100 98 10134 100121034 10212 10518 10358107 10358106 1035s 10678 104 1063. 10218 10558 3 9858101'! 101 10534 054 10912 10514 10934 41071410914 108 11014 1055 112 108 11012 95 98% 95 99. 10014 107 94%101 9758 99 9278 9712 90 95 91 3 9413 934 967 97 98 981210012 9914 101 1004 10158 10012 10218 101 10314 1014 10234 6112 6812 49 61 84912 5512 34914 5814 57 68 54 6514 60 6512 5234 61% 558 6234 63 69 6212 c70 651 68 7218 78% 60 717 56 6214 355 65 7518 8312 78 8012 66 804 7212 8018 73 7534 74 78 65 75 744 80 8234 9012 8012 83 81 834 83 8618 8558 an 873 9512 9412 974 9458 98 9612 9914 973 997 9818 10034 9818 9958 7512 8534 6312 7512 584 65 58,2 7114 72 8112 7812 863 85 9012 8312 86,4 874 8312 78 8412 734 81 78 81 7118 77 54 714 55 60 5312 6118 63 75 872 77 73 8012 7358 78 644 7338 67 7572 6634 7112 70 7278 15 15 19 19 22 22 89 91 8712 91 84 85% 80 83 83 90 96 9812 9512 9613 9912 10014 9812 100% 96 100 92 964 97 100 68 745s 7512 80 7184 79 70 73 7514 90 894 96 904 9118 8914 93 90 98 90 95 9312 97 951: 99 .,._ Carthage & Adir Ist gu 48_1981 58 58 60 60 Cent Branch Un Pac 1st 4s 1948 291 3412 2958 36 Cent of Ga Ry 1st g 58 Nov 1945 ----- ---- -------Consul gold 5s 1945 1534 20 934 17 1959 Ref & gen 514s ser B .514 912 4 51 Ref & gen Si series C 1959 31s 818 3 5 Chatt Div pur money g 4s '51 ___ .--- 23 23 Macon & Nor Div 1st 5s_1946 Mobile Div 1st e 5s Cent New Eng 1st au 4s1961 64 6834 61 Cent RR & Bkg of Ga col g 58'37 25 27 26 Central of N J gen g 5s 1987 90 9512 89 Registered General 4s 1987 --------77 Central Pac 1st ref gu 43_1949 79 8612 68 753 784 Registered Through St L 1st gu 94* 1954 75% 754 80 Guar g 5s 1960 55 61 504 -----------------------28 33% 24 36 36 44 32 42 36 42 4112 42 10 1114 1014 16 157s 23 -------- 3 878 9 13 212 4 3 858 814 13 --------15 15 16 17 63 --------55 32 28 29 28 90 82 9558 86 55 60 304 33 85 84 -------- ---------------434 56 56 60 48 5714 ____ _ _ _. 5712 64 5932 60 2484 4118 31 1978 25 35 : 18 28 11% 151 1858 19 97 1518 15 2734 164 21 3112 33 ____ ____ 22 25 -35 35 6612 70 864 50 5912 45 6884 50 56 3314 18 17 ____ 68 42 51 21 912 912 ____ 6834 85 6818 68 7412 73 737 68 7012 67 45 45 5714 54 6638 591 6534 59 6618 52 94 9334 984 96 10218 100 102 97 102 96 77 7712 7712 ----------------753 7811 7934 89 89 85% 68 75 634 87112 68'2 33 79 85 84 8812 83 80 61 6834 48 56 21 16 15 ____ 6612 661: c68 757 55 55 70,8 69 80 75 68 48 38 40 2414 51 --------39 2612 20 23 1818 15% 834 1112 9 12 812 1012 812 ____ 1712 1812 18 69 60 61 50 9934 90 67 53 97 32 451s 227 15 1412 1812 6112 61 49 53 9058 9512 9112 --------85 854 -- -- -- -- -- - - -_- 7412 8212 7312 81 87 655s 7414 7014 7773 80 864 87 87 7314 80 7334 80 6312 66 8012 8212 7978 81 65% 71 60 7478 62 6812 55 6512 59 69 1he• & Ohio 1st cons g 5s-1939 1041210638 10112106 101 10358 3100%103 10158106 105 10714 10514 1064 10534 10714 10438 10712 3106 10714 104 107 1047s 10612 Registered _______________ ____ ____ ____ ____ ____ ___ ____ ____ 1011210112 103 104 --------103 105 10312 105 1025.10314 ---- ---- ---- -_-Gen gold 454s 1992 100 10312 95 10312 9311 9715 8758 93% 92 1004 8100 10414 10178 10358 102 10312 9758 10278 9912 103 9114 102 97 10013 Ref & Inuit 4345 ser A1993 8312 9334 84 9334 824 8618 80 8314 84 923 9012 9258 92 95 94 9558 8812 95 904 934 8312 9114 88,4 9214 Ref & imp 434s "B" 1995 8412 9312 8358 9314 48014 87 88 9412 8912 94 84 90,4 87 9012 79 83,2 8312 92 89 9212 9112 95 93 96 Craig Valley 1st 9 5s___ _1940 94 94 91 97 98 98 --------90 90 90 95 100 100 9978 997 100 100 96 96 --------9984 9934 Potts Creek Branch 1st 48'46 ----------------------------------------81 87 87 85 85,4 85 85 ---- -___ 81 --_- -- -- 89 89 Rich & Alleg Div ist Con 44'89 91 96 90 95 38414 .28514 843 85 85 92 go 96 95 9734 9814 9914 991(1100 9312 95 901s 9312 92 9212 2d cons g 4s 1989 84 8514 8612 8612 8514 8514 ----------------83 88 87 90 90 9012 --------88 88 Chic & Alt RR ref g 35._ _ _1949 40 4258 3978 40 30 44 4112 47 35 40 487 5112 454 53 52 55 48 584 53 557 513 54 46 50 Chic Burl &(1-111 Div 311.'49 88 91 89 82% 85 80 8478 s131 8312 8734 85 8714 8658 90 89 9012 87 904 88 904 84 88 8614 8912 1949 Registered Illinois Division 4.___ 1949 95 9812 91 98 8818 92 8712 92 96 9812 9512 9914 93 9614 94 98 90 9512 9314 9612 9234 9658 963 99 7 1958 894 9312 8712 9234 87 9112 78 . 8558 833 General 4s 92 9514 8912 9412 8812 9414 844 90 . 9114 85 9134 9078 95 8834 9214 1st & ref 4)is set B 1977 7914 85 80 85,4 75 82 68 75 91 9214 8512 91 72 86 87 90,4 77 8714 7812 88 844 8934 89 92 1971 82 9334 8514 937 82 88 1st & ref. 55 ser A 7614 844 7712 93 9912 10012 9412 10012 03 97 841: 9412 87 9758 9612 100 9212 97 Chic & East III 1st con 66_1934 56 58 --------48 48 32 32 58 58 54 55 50 5734 -----------58 58 Chic 8c E III (new co) gen 5s'51 104 1258 9 114 74 912 334 7 14 17 014 1512 9 1212 818 10 7 12 9 154 14 20 9 12 Chicago & Erie lit gold 5s 1982 90 9434 9118 92,2 89 89 38614 90 8634 92 96 99 99 99 9012 99 92 954 8212 9218 8612 9312 90 93 Chicago Gt Western 1st 4.1959 32 38 26 3612 24 32 20 30 30 49 38 4614 4134 5014 45 48 38 47 37 41 3118 3884 3258 38 Chic Ind & Loulsv ref g 6..1947 40 Refunding gold 5s Refunding 4s series C.--1947 ___ 1966 15 lit & gen S. ger A 1st & gen 68 ser B___May 1966 13 Chic Ind & Sou 50-yr 4s 1956 ___ Chic L Sh & East 1st 434s_1969 9418 Chic MB & St P gen 4s A 1989 44 Gen e 354. ser B___May 1989 42 Gen 4.ii series C 1989 4812 Gen 454. ser E___May I 1989 4712 May 1989 55 44s series "F" Chic Mil St P & Pac 5s A.A975 1612 Cony adi 5s 2000 412 Chic & No West geni g 3%."87 General 4s 1987 Stamped 4s 1987 Genl 4 h•stpd Fed Inc tax '87 Genl 5s stpd Fed inc tax 1987 Sinking fund deb 5s 1933 Registered 15-yr secured g 654s.._1936 43 ___ 16 18 ____ 9534 4834 45 52 52 55 22 634 3612 37 33 12 16 ____ 9884 38 35 40 40 38 14 378 28 37 3314 3314 34 33 ----------------38 16 9 1312 10 17 11 22 15 18 12 1412 1312 ____ ____ ____ ____ ____ 6112 9914 9412 9412 ____ ___. 95 39 46 4714 47 4014 44 3612 42 ____ ___- 427s 44 4812 47 4934 42 4512 41 7 k 50 4818 40 45 4012 49 4012 4012 40 4812 53 50 2038 1214 1712 11 19 19 553 3312 534 314 618 57 3812 4334 35 40 4612 37 47 46 58 59 35 3812 34 40 3758 4158 30 40 36 47 ____ ____ ____ _--- 4212 52 40 4012 4434 4012 47 621s 604 677s 66 70 63 60 60 60 66 0858 68 50 5714 4572 51 46 51 43 44 4678 4612 43 4872 4212 54 50 5312 75 .7612 08 80 80 4978 5818 60 38 2934 32 7112 95 60 54 60$8 60 61 3614 127s 414 53 29 4014 3178 50 75 76 96 10014 56 69 53 6012 57 71 5712 71 7212 61 3234 4612 1114 2014 5112 4314 5814 54 6814 55 6212 6112 67 55 88 *8534 80 4338 5612 5634 74 1st & ref g Ss May 2027 1714 lit & ref 454$ stpd May 2037 1512 1st & ref 434s ser C_May 2037 16 Convertible 4314 series A1949 1014 Chic R I & Pac Ry gen 48_1988 5514 1934 2212 Refunding. gold 4s Certificates of deposit_____ ____ Secured 4 iss ser A 1952 2258 2212 2012 2012 1578 6312 3034 ____ 2934 Convertible gold 4%s_1960 Chic St L & NO gold 5s_1951 1951 Gold 31411 Memph Div 1st 4s 1951 Chic Terre H & S'east 1st 5s'60 Income guar 5s 1960 1612 912 144 634 41214 6 1212 12 20 78 78 78 72 72 --------7273 73 11 73 46 60 3918 45 247s 30 17 1512 15 912 54 20 ____ 1812 20 1918 1912 1314 65 2512 ____ 2412 17 1614 1634 712 521s 19 ____ 183/3 21 19 19 12 57 244 ___ 24 15 15 15 412 50 2034 ---2012 2312 2172 22 1412 53 2634 --__ 26 ----------------48 48 38 47 40 497 36 44 1434 21 23 29 18 23 s Deferred delivery. c Cash stile. • Negotiability Impaired by maturity 2412 40 2218 36 22 35 1414 26 55 6612 264 36 ____ .._. 2512 33 50 46 22 50 54 39 5512 61 67 6514 6712 59 634 67 73 75 87 --- 6312 85 27 25 2378 11 51 23 ____ 2214 12 75 65 65 5212 62 3412 44 5978 60 60 62 5718 7012 65 6812 69 724 67 8212 7768 --- --- eoi8 45 60 4934 55 53 70 56 67 55 69 59 59 55 73 ____ .__ . 68 8012 7012 7813 62 ---- .—. ---- ---- 8412 9138 8934 9234 78 48 46 4112 35 42 3638 35 25 6334 6212 30 30 __..___ 297s 2934 19 80 60 50 37 55 55 57 54 25 39 25 30 3612 40 21 4012 48 4814 54 3934 4413 27 39 25 2958 2212 7512 7812 7712 78 ----------------70 102 103 101 12 10314 100 10212 1/934 10034 9934 7012 72 6212 6812 5758 6212 523 67 73 62 62 64 6234 64 61 55 5 49 56 5138 6 7658 68 721 6212 70 7712 72 72 76 64 69 77 7314 62 65 56 73 78 78 79 6518 72 65 6612 647 46 5912 504 54 3412 50% 3612 4413 2834 20,4 3134 2234 27 1114 1334 2312 1134 18 56 4712 48 4412 7012 39 ____ 38 1818 28 87 90 66 61 44 47 4018 4012 34 6212 27 ____ 2658 4934 433 435 387 6812 32 ___. 32 184 21 884 90 4018 3012 34 26 55 20 2412 22 55 60 68 68 71 ---- 4712 53 5412 5612 59 ---- 45 4218 46 28 2712 70 9934 60 6 53 514 23 23 70 99 5414 50 7 2713 2712 70 99 604 54 3% 63 65 39 1414 57 60 3312 111s 62 6212 3934 15 54 4734 5812 5434 5812 5558 57 62 65 5934 ---- ---- 5312 5814 571: 6312 72 — __ 893 7778 81 6812 714 70 50 434 435 38 63 2832 25 2812 3912 372 37 28 50 16 18 1612 39 37 37 2714 42 1718 16 1818 4812 4512 4512 3534 554 2234 1914 23 1134 1912 718 1154 75 84 84 75 89 89 78 44 4012 404 3138 49 20 1634 201 38 34 35 261: 4418 17 1634 1734 46 4212 42 3212 5412 2234 2034 24 101 821 7 83 1114 83 721 t 7012 714 86158 651 --------59 72 68 7314 647g 673 6112 66,2 59 611 45 54 55 6434 53 57581 431. 5417 40 48 38 41 39 61 58 46 Volume 138 Financial Chronicle 85 1933—Continued. BONDS January February March May April November December June October August September July Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Lew High Low High Chic Union Sta 1st 454s A 1963 let 5s set B 1963 Guar g 5s 1944 1st 634s ser C 1963 Chic 5c W 1 cons 50-yr 45_1952 let & ref 534, set A 1962 Choct Okla & Gulf cons 551952 Cin tlam & Dayton 2d 4 Ms 1937 Cin Indianan St L &C 1st 45'36 Registered 1936 9612 10014 9414 10118 92 9712 91 94 89212 9812 96125100 102 105 10238 106 95 103 96 9934 97 10312 10278 105 10012102, 9918 19312 8 99 10214 9234 9914 94 9812 95 99 111731134 109 114 10332c11312 10834 111 105 113 112 114 5978 6638 651,. 69 6334 69 60 6612 634 76 70 76 6734 7612 66,2 76 70 7612 77 90 81 90 67 76 --------------------------------50 50 ---- ---88 95 88 95 88 884 --------85 85 --------88 9558 9558 ------------------------92 88 92 9978 102 100 102 10412 106 105 106 10014 10234 101 10338 11112 114 11214 114 7312 7812 774 8012 87 92 8812 9112 ---- ---- ---- ---- 98 10114 100 102 10334 10612 10112 10534 98 102 100 10314 11118 11314 11112 113 7212 8014 7318 80 88 95 8814 92 6078 6078 56 63 9334 10034 97521102 100 10614 10212 105,2 96 99,4 95 100 108 11312 110 11212 69 74 6378 76 82 894 83 8734 4012 44 40 51 8878 88711 9058 9058 ---- ---- ---- ---- ---- ---- 9173 93 ------------------------9838 9934 974 9712 9712 9818 Cin Un Term 1st 434s 2020 9914 1004 9814 100 97 98 93 96 93 96 96 9858 9812 10178 10014 102 9914 102 101 102 975 10058 10012 10112 let nage 5s series B WI —2020 10212 10514 100 104 9612 10134 973810138 9712 10312 101 10414 10358 10612 105 10734 10212 10612 104 10614 9834 10538 10134 105 1st lame e 5s series C 1957 10258 1034 9978 10338 9614 102 98 102 100 10312 102 10418 10314 107 105 10612 102 10578 10414 1064 100 1054 103 10534 Clev On Chic & St L gen 01'93 General 5s series B Ref & imp 65 ser C 1941 Ref & imp 5s set D 1963 Ref & Imp 43.4. ser E 1977 Cairo Div 1st gold 45 1939 On Wab & M Div 1st 4s_1991 St Louis Div 1st col tr 451990 Springf &Col Div 1st 4s 1940 White Wet Val Div 1st 4s1940 Cleve Col On & In 6s 1934 Clay Lor & W con 1st a 55_1933 Cleve & Mahon Val g 5s1938 Clev & Pitts 434, B 3Ms series B 4545 series A 3 Ms ser C Gen 4Ms series A 1942 74 75 75 7612 75 75 58 70 --------75 88 86 79 85 82 8414 79 82 75 79 80 673s 62 594 80 7134 694 65 1; 10112 1-01.1-2 15114 10114 65 73 6978 75 73 774 74 74 66 73 66 70 5534 69 60 66 89 92 8818 89 58 6412 602 68 6614 74 66 7334 85 9018 89 89 ____ ____ -___ -_-9958 10014 39978 100 87 99---- ----------------10014 1061-4 1977 Cleve Short Line 1st 454s..1961 Clev Un Term 1st s 1 5Ms A 1972 1st s f 55, set B 1973 1st s 1 guar 434s C 1977 Coal Riv Ry 1st gu 45 1945 Colo & So ref & ext 434....1935 Gen mtge 434s sreles A 1980 Cot & Hock Val 1st ext g as 1948 Columbus & Tol 1st ext 45_1955 70 66 60 58 8712 6712 72 7278 7512 8312 72 78 75 83 50 544 4812 58 50,4 5512 47 5334 55 8518 854 ____ ____ 8518 851$ ---- ---- 9112 --------------------------------90 Consol Ry non-conv deb 4s '54 Non-conv deb 4s J & J...1955 Non-conv deb 45 Cuba Nor Ry 1st 53.4s 1942 Cuba RR 1st 50-yr 5s g1952 1st 1 & ref 73.4s, set A_1936 1st 1 & s f 6s ear B 1936 Del & Hud let ref 48 Convertible 5s 15-vest 534. 78 ------------------------49 49 7014 704 71 74 77 82 ----------------75 75 474 5238 484 55 48 524 47 52 54 65 6812 75 7412 771 70 74 74 8212 76 82 40 48 84034 48 4018 249 37 4934 5014 65 6334 70 67 7712 71 7312 63 73 6114 6658 861s 864 874 88 85 85 --------85 88 88 89 --------93 95 --------91 94 6234 6234 6471 6478 ____ ___. ____ __-- 6378 72 68 71 70 77 69 69 6714 70 69 73 75 75 73 75 --------66 68 868 80 7458 7534 7312 78 7838 72 78 7714 76 76 -___ ____ ____ ____ ____ ____ ____ ____ _____. ___ ____ ____ ____ ___ _ __ 93 93 91 93 ---------------- --------60 60 ----------------72 76 75 75 7214 7312 10118 1014 100 10134 101 101 100 100 9612 9612 --------101 1018 101 101 100 10012 100 100 95 95 95 95,8 ----------------95 95 9638 9834 97 100 9312 97 9612 9978 ____ __-_ ____ -_-- ---- ---- ---- ---- ____ --_- 8014 8014 88 88 --__ ____ 887 887 90 90 77 6112 5634 55 77 --------71 7012 61 66 6012 54 6712 58 61 62 494 5912 4934 794 80 75 70 8612 83 6412 91 9014 3978 4012 4012 4012 ----------------38 4012 4012 ----------------44 40 45 49 47 4714 5214 5278 6014 5212 5212 5014 53 42 50 50 50 42 45 49 51 53 57 ____ -_-- __-_ ---- ---- ---- -___ ---53 62 15 21 23 25 30 28 21 18 2318 27 2112 18 1943 78 1935 05 1937 88 23 29 29 25 16 15 18 20 2012 22 22 20 11 15 15 15 1512 1812 1712 15 10 15 16 11 let cons gen lien g 4s1996 Registered Penn coil trust 945 1951 50-year con 6 4s ser A1953 50-vr con g 45 set B 1953 20 234 16 1618 41 4134 3938 3312 344 35 2958 29 3878 41 41 34 3212 29 3112 --__ 3578 3612 33 __-_ 36 36 145$ 21 3458 36 1412 2978 314 1 45 55 66 6712 52 60 574 60 35 4378 631 66 45 55 2178 1858 20 1512 3212 30 36 27,4 85 89 83, 4 7412 9212 864 68 96,4 95 17 *2612 1718 24 18 20 17 17 75 74 71 66 ___ 73 5512 9512 91 15 81314 134 15 76 7312 75 854 78 87 8114 7512 8512 7212 66 7614 ___ ____ ____ 74 84 80 61 5812 664 85,2 -------91 93 9438 20 1712 1738 1518 18 14 15 15 244 208 2278 23 81 8514 7938 8412 57 7912 7612 80 9734 9818 95 97,8 89278 9412 95 95 9412 971 94 9534 8912 9618 9112 9234 47 56 25 32 591 63 39 4738 4012 43 1912 304 4512 45 2934 35 3012 34 17 23 4912 5214 2234 32 4512 48 1834 284 6012 61 3912 43 3 55 3 55 212 234 ____ ____ 258 278 24 24 334 312 334 312 31 62 634 65 6338 6938 --------68 6978 ---- ---- ---- ---- 567 61 3834 44 4214 44 23 31 3212 35 1612 25 474 47 218s 2834 8212 86 ---80 85 75 75 8334 85 85 9012 874 9012 8612 91 8712 8912 8412 85 75 86 8912 91 ----------------10314 103,4 - -__ - --- 10112 10134 --------102 102 --------104 104 10314 10314 --------10314 103,4 101 10214 10014 10212 0978 103012 9012 100 99 10112 10012 104 10312 10578 103 104 103 10412 --------102 103 102 102,2 14 25 13 1334 1538 12 13 15 20 13 23 3138 2634 39 20 24 32 3512 27 3512 26 27 23 27 --------84 84 ----------------84 85 86 8912 88812 90 9134 93 9212 9212 9212 9212 90 911 90 91 80 81 72 70 84 81 72 7514 76 8178 61 71 43 48 4012 4812 41 84 73 75 65 75 8412 8134 8134 7834 82 61 7612 69 7212 6712 72 99 99 99 99 3734 41 304 37 3038 374 374 41 Eel & impt 5s 1967 24 31 Ref & Imp 5s of 1930 1975 25 31 Erie & Jersey 1st 5 1 65_1955 --- ---Genesee RI,ER 1st s f 68 1957 80 80 Fla Cent & Pen cons gold 5s'43 Florio a East Coast let 454. 1959 let & ref User A 1974 Certificates of deposit Fonda Johnst & Giov 004.1952 21 27 19 1212 8434 72 84 72 774 6734 733s 7318 797s 7734 824 8212 8912 8312 871 97 95 06 9312 95 9558 944 9614 95 99 91 94 94 974 991 8312 814 9012 82 8212 79 84 84 9112 91 95 9412 96 9334 97 Denv & Rio G 1st cons 48_1936 31 3758 42612 3454 277s 3412 29 Consol gold 4 34s 1936 3412 40 27 36 30 36 31 Den & R G West gen 58 Aug'55 1112 1634 11 14 11 14 814 5s series B 1978 16 22 11 1812 13 20 1258 Des Moines & Ft D 1st gu 441'35 Temp ctf of deposit 212 24 --------2 14 Des Plaines Vol 1st gu 45451947 -------- ----------------45 Second gold 4s 1995 Detroit River Tun 1st 4 Ms 1961 Dul Missabe & Nor gen 541_1941 Dui & Iron Range 1st 55_1937 Dui So Shore & Atl a 55._1937 East Ry Minn No Div 1st 4441948 East Tenn Va & Ga— Con 1st g 5s 1956 Elgin Joliet & East 1st g 5s 1941 ElI'aso&SWlst&rof5s..1965 Erie 1st con g prior 45 1996 80 83 87 86 87 84 87 83 85 8412 8312 90 88 89 84 89 8312 7912 8612 8014 8338 79 8212 7914 7734 70 724 76 77 7078 7412 7112 91 9212 93 93 93 9312 93 93 86 8712 9434 8834 9214 88312 89 80 694 69 77 7112 74 69 714 6212 94 94 97 9534 9534 9534 9534 954 92 ------------------------95 78 80 75 71 8712 85 6478 9112 9012 71 6712 60 553s 15 45 3 3 4 2134 2112 8134 75 3018 39 8178 8318 483s 45 54 143 84 83 9114 91 85 8918 914 95 96 87258 84 52 60 9514 93 97 96 98 888 97 8612 89 878 82 9714 97,4 9838 96 9612 893s 92 8238 8418 83 85 80 8338 7512 81 585 674 67 74 6612 704 5912 6834 60 99 59 59 _ _ _ __ 994 99 100 99 99 9918 9914 99 9918 68 5314 6414 537.3 57 594 65 5012 5614 51 6238 564 504 62 51 5514 58 67 6058 6418 53 64 99 99 39 43 374 43 99 99 99 9914 99 3818 4734 4912 5434 51 41 4734 484 55 53 2134 21 8134 80 2014 2012 81 80 27 27 8212 804 35 35 8212 86 15 ----------------18 18 451_ 4238 45 ---- ---- 3412 39 438 314 5 3313 4 334 5 314 2 4 2 312 24 5 4 5 5 74 712 312 8 3512 35 85 85 471: 4712 90 9034 46 564 4534 58 9012 10034 89 944 _ 25 40 53 55 5 142 814 512 1312 8 978 978 6 25 60 14 1234 9 99 69 60 56 6712 55 1374 9912 101 9634 1004 6012 6312 6038 6412 100 102 9934 101 25 604 13 11 614 $35 57 12 12 812 3658 63 2134 21 8 4834 62 4812 62 97 10218 9934 102 76 52 53 97 9934 80 89 90 90 8112 69 764 71 66 6034 5634 6812 5912 5912 9812 9934 52 4612 4634 9312 9512 5538 5512 99 9618 50,4 50,4 904 924 8212 6112 6134 96 9334 3912 40 39 27 2812 2978 35 264 27 60 --------50 5638 48 4912 48 48 1418 7 1134 7 9 94 8 7 134 134 612 114 612 812 612 734 638 1238 1112 ____ ____ ___ __ ____ ---- ---. .... (Amended) 1st con 434s1982 418 24 3 3 212 258 24 24 312 Proof of claim filed by owner --- ---- ---- ---- ---- ---- ---- --_ __ _ 44 434 44 5 3 44 Ft Worth & D City S34s-1961 ------ 90 904 88 89 92 92 - -90- -9-60.- -61 Iii" -iiis -ii- -66" -chi" -61 -69 - 9712 99 ____ -___ 9614 964 Frem Elk & Mn V let M._1933 65 65 62 68 ____ ___ 544 6012 71 78 75 86 8478 90 85 9014 .93 100 .984 9814 ____ ____ 844 88 Gal. nous & Hen 1st 55_1933 55 73 97 76 70 7412 — ____ .72 8478 .80 814 .84 95 .____ __ •____ ____ •____ ____ *____ ____ •___ Ga & Ala 1st cons 5s. _Oct 1945 6 6 54 5,4 5,8 514 --------9 15 18 10 102 18 26 27 ____ ____ -_-_ -___ 1218 144 9 12 Ga Caro & N let gu g 55 ext to July 1,1954............... .— ---- ---- -- ---- ---- 1912 1912 18 24 23 25 2618 2618 --------------------------------19 2014 Georgia Midland 1st 35.-1946 --------29 29 --------2312 40 c45 c45 --------4412 50 ----------------39 43--Gr R & I ex 1st itts g 4 Ms___194I 85 8818 92 964 ------------------------84 94 491 9634 934 94 9134 9434 ---- ---- 887 93 ---- ---Grand Trunk Ry II t 75....1940 99410434 98410112 9634 10088 9758 19914 9818 10114 10034 105 10158 10438 1031,1061* 1034105 34 1033,106', 104 10612 10414 1054 1936 98410134 96 994 9414 9712 9454 97 15-year 5 1 6s 9334 9878 9812 101 1001,1021, 10184 10312 10114 10314 10218 10412 10014 10414 101581028* Gt Nor gen 75C B &0coll A '36 564 6478 48 let 8c refund 434. sat A _ _1961 74 80 75 Stamped (without July 1 1933 coupon)___________ ___ ____ ---Gen g 534s sot B 39 1952 47 55 Can 5s series C 1973 45 51 18 43 1976 44 4838 37 Gen 43.4s series D Gen 434s series E 1977 4214 4812 37 Green Bay & West deb ctfs A._ ---- ---- ---Deb certificates II Gulf Mob & Nor let 554s....1950 let m 5s set C 1950 6934 47 58 794 684 71 ___- ---4812 394 43 45 42 37 4312 38 .- — ---- ---49 46 44 447 ---- 454 59 5834 80 6634 6978 7112 76 66 40 404 37 34 --- - 70 4912 4612 45 46 ---- 274 3012 29 314 2712 3212 2212 31 2518 304 2518 30 27 31 23 30 7534 85 84 9014 8538 8912 76 7514 8234 8418 87 84 87 78 8614 7712 8434 7112 80 8312 784 83 6812 77 70 49 47 454 4512 30 7112 6534 747s 7312 70 6412 7312 70 64 63 6614 6538 64 6214 67 6578 30 --------29 8312 7814 8134 71 7738 7212 75 65 74 67 6978 63 74 6614 70 6212 30 --------32 7814 73 7012 69 32 36 32 4914 49l 597$ 57 47 4634 53 51 68 63 68 61 664 57 64 58 6714 64 65 60 6934 65 5912 5912 30 774 8634 7034 8112 7618 64 7114 68 71 57 6312 624 67 5378 6112 564 6834 5312 61 56 30 --------30 87 7114 6934 70 30 62 62 50 58 5634 65,2 4912 574 53 617s 9934 86 9658 91 91 99 914 10012 83 83 80 80 ____ ____ 9612 984 90 91 80 4534 90 78 6334 27 89 80 7038 3614 914 80 57 6514 86114 70 Stamped Hocking Val 1st con 4Hs_ _1999 94 Housatonic RR con 5s1937 79 Hous &Tex C 1st 5s lot gu.1937 ____ Houston Belt &Term 5s___1937 8112 99 95 99 86 9018 84 99 100 91 88 97 89238 100 9734 199 954 9914 97 79 79 80 ------------------------75 80 --------90 90 8512 8512 85 ____ ____ ____ 8512 89 ----------------89 89 .19038 9038 9518 954 96 95 9618 82 8212 --------78 78 --------8214 100 ------------------------89 86 Hud & Manh let & ref 5s-1957 Adjustment income 55_1957 Illinois Central-1st g421931 lit gold 334. 1951 8878 55 8034 7934 Collateral trust g 45... 1952 84 514 784 7812 82 4012 8118 ---- 8812 74 82 72 5412 394 4812 41 814 --------82 ---- ---_ ---_ ____ 7758 78 84 81 844 82 49 4512 U 51 5934 47 82 881 8118 8114 8114 83 7612 5518 65 59 65 53 61 50 58 60 Deferred delivery. c Cash sale. • Negotiability impaired by maturity. 74 66 7474 71 88 8078 85 75 5814 4812 5234 4238 83 8638 89 8512 7612 --------79 7612 75 78 8312 50 89 79 6818 77 7018 34 87 78 86412 71 6538 294 92 7858 7312 3312 92 78M 86 Financial Chronicle Ian. 6 1934 1933—Continued. BONDS Illinois Central—(Concluded) let refunding 42 1955 Purchased lines 334s 1952 Coll tr e 43 LN NO & T__ _ 1953 Ref 5s 1955 15-year secured _1936 40-year 434s 630_Aug 1 1966 gold Cairo Bridge 4s_1950 Litchfield Div 1st g 35_1951 Lou'v div & term'Ig 3342 1953 Omaha Div 1st g 35 1951 St L div & term g 3s 1951 Gold 34s 1951 Springf Dlv 1st g 334s..1951 Western Lines 1st g 41.1951 III Cent & Chic St L & NO Joint 1st 5s ser A 1963 1st ref 44. ser C 1963 Ind Bloom &West 1st extd 45'40 Ind 111 & Iowa 1st gold 4s I950 Indianan & Louis 1st g 42_1956 Ind Union gee & ref 5s A_1965 Gen & ref 5s series H 1965 let & Gt No 1st 6s A 1952 Adjust m 6s ser A 1952 1st 58 ser B 1956 let 5s ger C 1956 Intern Rye Cen Amer 1st 5s'72 1st col tr 6% notes 1941 1st Lien & ref 634s 1947 Iowa Central 1st g 55 1938 Certificates of deposit Refunding gold 4s 1951 James Frankl & Clear 1st 4s'59 Kanawha & Mich 1st gu 45 _'90 K C Ft S & M Ry ref g 45_1936 KCtl's of deposit (Bankers Tr) Kan City South 1st g 3s...1950 Ref and improv 5s_Aprl 1950 Kan City Term 1st 4s 1960 Kentucky Central e 4s_ 1987 Kentucky & Ind Term 4345 '61 Stamped 1961 Lake Erie & West 1st 5s 1937 2nd gold 58 1941 Lake Shore & M Sou g 3345 1997 Registered 1997 Leh Vail Herb Term 1st 55_1954 Leh V (N Y) 1st gu g 430_1940 Lehigh Val (Pa)gee con 48 2003 Registered General COUSOI 400____ 2003 2003 Gen con 5s Leh V Ter By 1st gu g 58_1941 Lehigh & NY 1st gu g 4s_1945 Lexington & East lit au 513 1965 Little Miami gee 4s series A 1962 Long Dock con go, 1935 Long Island Gen gold 4.1938 Unified gold 45 1949 1934 Deb gold 5s 20-year deben 5s 1937 Guar ref gold 45 1949 January February March April November December May October June July August September Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High 53 5912 4714 60 46 53 57 70 45 56 7538 7812 72 7734 70 74 s55 6712 7212 69 80 ----------------------------------------55 564 --------------------------------56 4 12 i 12 71 58 6612 575 6 34 5234 5758 62I, 8 68 , ( 53 60 5912 7634 77 81 5212 54 75 8112 7014 8312 86 81 8512 8534 88 5214 55 60 64 68 72 6812 72 68 7014 6018 6912 7412 90 9212 9414 90 9414 89 9112 83 90 94 8634 90 3312 4034 30 401 3112 38 / 4 6414 5112 3158 3912 397 60 5314 621, 59 8 73 62 6954 53 6534 541 65 65 --------5013 5012 --------65 65 _ 77 / 4 8312 8414 85 85 85 --------78 2.2 701 --------733 733 -,..7 58 58 58 6014 ------------------------62_-6 __—___ ____ ____ ___ ____ 63% 63% --------58 58 ------------------------6512 6512 7012 67 6758 26312 _-73 63 --------60 6014 ------------------------58 6114 6114 62 67 6712 6818 68% 68 68 5912 5912 _ 53 858 ----------------6734 6734 ----------------61 ______ 6212 -ai 6212 63 63 --------------------------------67 74 74 75 75 aa 67 aa- -7-i ____ ____ :--------6711 -ii iiis -8-612 -Ao" 13 85 8534 Ao 16 4012 4712 40 51 38% 51 39 51 50 66 63 69 67 7412 6912 37 48 4012 49 3812 4672 4712 62 57 65 3812 44 60 687 67 --------------------------------------------------------9258 _ _ __ ____ ____ ____ ___ ____ __ _ ____ ____ 75 80 _ _ 84 -ii -36 iic4 -2-714 ----------------27 34- 37 481p 50 54 4658 9212 9234 9234 92% ---- ---- ---- ---_ 85 92 9212 9512 06 9914 98 85 85 ------------------------85 90 --------99 99 981 / 4 19 26 3312 4014 3812 5412 37 1934 23 19 22 18,4 2512 2414 39 334 514 312 414 1714 15 25 1458 3 538 334 712 818 1334 11 1734 2034 1612 20% 16 18/ 1 4 16 23 3734 3512 34 50 22 3412 31 1914 1712 18 16 22 22 34 177 2114 10 30 351)- 33 4912 35 39 41 38 4212 3334 36 4212 56 3314 3734 377 46 60 5734 60 45 4534 408 4534 3952 40 38 4712 4712 5514 4958 6112 60 3834 41 4812 5314 46% 29% 4414 40 55 / 4 28 2812 2952 27 2812 261 2918 31 2 1 _ 3 112 2 1 . 65 fia1-4 -6614 69 48 54 47 48 571 -Ici 5018 47 5612 4814 88 9414 8812 78 8018 80 2 1 218 1 218 -------112 212 1 61 57 254 72 82 5534 ------60 60 64 65 518 212 358 114 7212 72 75 --------70 71 6512 66 70 73 71 73 76 ---------------75 75 --------75 75 31 12 3634 41 561248 / 4 5612 52 6112 50 56% 361 __ 34,4 3834 2912 50 5712 5018 52 ____ 5312 497 54 5114 581g 63 64 6712 62 6733 6212 67 6312 6512 55 -56 60 73 74 77 73 6034 75 7058 74 7134 80 9214 897s 921 9152 9514 8412 96 8812 9512 9118 9478 8434 881g 92 8914 93 88 92 80 80 80 8014 84 91 7012 73 3812 3838 60 69 9214 8812 6658 70 3012 29 5514 597 38634 s82 5 134 6 4 7 3 10 6 512 314 7214 60 65 80 9112 6214 -----70 60 65 69 62 6712 5238 63 7312 60 71 57 16, 57 6634 56% 6234 5212 58 69 9278 --------8913 8912 --,- -- ,,- _-_- 85 83 84 8014 8014 72 -78 - -72 -72 42 42 -------- 35 40 1 4 45 4638 840/ 99 9958 99 101 --------9813 100 99 9814 9912 100 100 100 28 -32 25 1274912 3212 4158 30 36 8 712 1134 758 912 712 12 1812 912 15 2314 2612 2314 28 2612 30 4012 27 35 2314 2534 2418 28 27 30 / 4 37 42 251 50 5514 461 5014 53 / 4 505 6512 50 62 / 4 5412 4912 52 _-- 511 60/ 1 4 597 60 ____ 4412 4814 437 4414 4614 -49 4534 50 50 414 134 3 ell 114 258 65 66 66 --------60 69 --------60 60 70 5214 3134 5112 33 4812 4752 48 48% 4834 37 4712 viz 62 348 56 352 5712 5434 54 47 54 47 55 56 8414 83,2 888 9412 83 21 82 74/ 1 4 79 77 79 80 65 60 6114 78 90 5734 78 ____ 66 63 62 64 512 412 514 234 514 3 38 2 712 37 5 2 6834 73 3714 37 68 63 93,2 90/ 1 4 _ _ _ _ 75 75 - 58 58 60 60 -6112 jc4 -611-2 -05'iEs -6112 58 61 60 70 815 Ii 51 ii Ai If 8112 -66 ii 11 ii 16 70 78 61 61 3 _ _ / 4 61 61 . _ 55 55 73 7812 73 75 6218 621 6612 77 5558 64 79 8212 80 82 $79 86 -ii C8-1- iiis ii 7412 -80 78 81 7134 -78 76 81 81 85,4 8438 85,4 8312 86 73 77 731 731 __ ____ ____ ____ 721 75 74 767s ------------ ---- ---- ---------------7934 Ii12 ii -66 'i 79 81 — Iii4 iii2 -811 --------757 - . - ------------"8 1612 4 683-4 8 13 ____ _ 6634 711 / 4 ___ --- a7538 8612 8538 87 87 87 81 s85 -52 -37 48 5412 4014 4834 4112 47 45,2 4818 5112 58 25 -3-67g 37 4812 4612 -52 27 3514 2712 35 5178 62 40 40 28 28 ------------------------34 34 44 45 _________ i. 8 --- -3318 3812 3378 3754 3214 36 -- -:1:1- -ii" -i5" 12 "Eil2 4012 5284 5112 5712 49 56 3214 3534 3738 51 56 -6412 5612 --...737 423 5312 5514 55 5812 56 33 4014 44 56 , 40 42 5458 6212 51 38 38 55 641* 6412 6812 60 66 90 92 90 9112 89 95 91 94 91 91 91 91 96 9712 9458100's 99 10018 9818 9984 8912 8918 90 95 ---------- -------------- 46 46 --------62 67 68 54 55 5212 65 60 6514 6014 64 7034 65 65 4 8 12 80 8114 79 79 --------80 8912 8912 91 10012 97 9912 95 95 8914 8914 cos 99 --------97 _ _ _ ._ _ _ _ _ 8112 8112 _ _ _ _ _ _ _ _ _ -6534 1-0-0-3-4 iOa 1-111- 65i2 -0-6-14 50i2 -0-2-12 0278 -9-2-1s 55C4 -651; -5ii2 1661-2 -5A54 1-6612 1012 10012 55i2 16612 55 -66 5A 16 7 7 9512 9812 9734 9834 ---- — -_-- ____ 96 897 99 99 96 9812 9912 9634 9814 9814 99 9912 9812 993 4 9914 99 87% 8732 91 92 c9912 8714 9618 9034 93 90 -90 --------89 89 8812 917p 9112 94 91 1 4 c97 9314 9558 92/ 981210014 100 101 -r. 97 983 9712 9712 9712100 100 1011* 101 10112 10014 10112 10112 10112 1001210034 99%10012 9114 9114 90 9334 9312 97 93 33 100 95 9612 91 / 4 9712 9234 9712 -,..„.-9238 93% 9212 99 98 9834 9218 9858 961 84 9058 8712 9114 8258 90 7912 8378 79 898 88% 917, 91 1 4 947 92 9458 9114 93 8534 9114 8712 93 95 93/ -iii _ Louisiana & Ark 1st 55 A1969 3034 35 37 4978 477 56 223 36 20 27 22 31 Lou &Jeff Bdge Co gu e els 1945 372 74 7232 7534 -----------------70 71 74 80 1937 9712 9834 99123103 397 100 9634 9834 984 10114 101 103 Loulsv & Nash gold 5s 1940 8212 8912 8312 91 883 88 Unified gold 4s 8112 8812 87 9412 92 951 / 4 Registered 82 85 ----------------77 2003 6512 7412 lit & ref 5 34s ser A 4 75 8212 8012 IA 55 -6418 2003 6312 70 let & ref 5s ser B 75 861 / 4 8212 8712 6812 75 6812 7614 6713 75 2003 597 68 lit & ref 4%e ser G 64 704 6218 71 86314 7334 7234 79 7712 8155 1941 ----------------87 88 10-year sec g 58 37 57 9818 995 ----4 -Paducah & Mem Div 4s -A946 69 70 ----------------56 56 --------65 65 St Louis Div 2d gold 35_1980 43 50 s 145 4812 58 Mobile & Montg 1st g 4%. ___ _ 8412 85 ----------------82 85 85 85 Southern Ry joint Mon 45'52 '45-40 -53 343 58 543 54 5734 6634 64 52 55 70 75 77 Atl Knox & On Div 4s_ A955 75 37658 78 78 75 7512 76 80 7914 8658 .554 40 50 4818 57 47 52 78 82 s79 c83 8012 82 103 10312 10314 10312 100 104 96 9714 92 9634 39434 98 4212 5812 3812 44 7518 8218 751 81 102 10372 10214 103/ 1 4 8812 931 / 4 92 95 3912 48 28118 85 103 104 92 96 5258 -66 5511 .68-3; 5512 1834 52 14-84 Ai 16 Ai Ifi 81 90 87 9212 90 9214 87 9014 86% 9012 8078 89 75 83 74 82 85 8812 80 85% 82 85 802 90 10012 102,4 10114 10112 10112 101 10232 101 101 10112 10134 .. 9812 . _ 4 &I 1158 5714 -61-12 -3-4 sLi 623856T2 16- -iti 16 iiiis 18 / 4 93 9312 992t2 293 88614 38614 92 89212 892 931 7214 57 58 567 6012 57 -67-78 70 73 69 7214 871 8512 8712 80 8434 8253 8538 8714 90 9032 9214 8538 91 Mahoning Coal RR 1st 58_1934 101 1011 ___ 100 100 / 4 101 10114 --------100 100 9514 9514 100%101 1003410078 __ _ ____ __ -___ _ __ ------------ 4934 -5514 4934 4934 571 Manila RR Sou Lines let 48'39 5334 5334 ---- ---- 5115 5318 84932 852 4934 4934 498 53 / 4 -(f() 5414 5414 let extended 45 1959 50 5112 ----------------------------------------51 52 ------------------------52 5814 5814 6152 2 Manit S W Coloniz g Ss- -1934 374 74 8512 9212 9084 29412 39418 996 99512 100 97 100 74 7512 ----------------70 72 --------83 888 --------------------------------------------------------50 Michigan Central— Det & Bay City Air Line 4s'40 --------------------------------------------------------9314 9314 93/ 1 4 ---- -.-- ---- 1 4 9314 9314 95/ Sat gold 334s 1952 84 84 ----------------80 80 88 289___ I 8 8834 8918 8412 88 86 8812 8814 90 ) 86 Ref & impt 434.series C.1979 -------- 61 64 ----------------68 681* 7412 75 ----------------75 75 70 75 75 75 7014 -70,4 Midland of NJ 1st ext 55_1940 48 48 ----------------48 48 64 6612 8138 6458 6112 7012 71 75 7534 71 40 55 59 6712 6312 75 Mil & Nor RR 1st 4 345(1880)'34 --------------------------------50 50 --------65 7112 --------76 76 71 72 68 68 70 70 Con ext 434s (1884) 68 --------65 65 6214 6778 ------------------------------------------------684 70 --------68_ Mil Spar & N W 1st gu 45_1947 52 5612 52 56 4i,40 $12 42 55 58 4814 472 6058 64 5812 56 62,4 5912 66 Minn & St L 1st cons 55_1934 Temp ctfs of deposit....___. ____ ____ __ _ ____ - ---1949 ___ ____ 1st & refund gold 4s llg .-118 1 __12 --134 1 Ref & ext 5s ser A deposit Certificates of 5% 34 55, 3 4 234 7 4 614 3 7/ 1 4 612 7 3 818 552 558 514 4 --------3 458 134 458 27 112 2% 3 45 514 -31 ; -- -- --------------------114 Y5-4 558 45 518 312 111 St P & S S M cons 4s stpd '38 3414 44 3134 27 3212 24 3412 3312 4134 38 48 29 38 40 4718 3912 4412 3712 4172 33 38 1938 18 20 17 20 20 20 1st consol 52 27 2012 25 16 20 277 35 31 31 24 24 3234 3912 3434 39 29 3112 28% 35 31 40 lit cons 5s gu as to int_1938 3514 45 3912 431 / 4 38 43 49 3434 45 43 50 4514 5412 4414 53 lit & ref Os ser A 1946 10 26 26 13 ----------------012 23 20 10 10 30 3312 30 30 197 26 25 34 ------------ 10 10 1949 8812 014 25-year g 534e 16 20 22 20 23 9 21 161 / 4 825 2212 318 22 27 1978 53 62 4518 55 40/ 1st ref 5%.series B 56 61 5012 60 60 70% 6658 7014 6612 71 1 4 4712 37 48 55 513s .67 1941 let Chic Term s f 4s Mississippi Central 1st 5s 1949 ------------------------------------------------90655a 3512 77 --------65 3 8438 8412 ------------------------75. 8 MIs9ou rl-I1IInols RR lets. A '59 25 2812 2012 28 15 20 22 15 18 15 20 1918 25 17 22 1558 12 2612 32 1814 27 1990 7414 8428 78 8412 7434 7912 68,2 7412 70 84,8 833 8612 8552 8812 81 87 Ho Kan & Texas let 4s 76% 8212 6758 72 81 / 4 7312 69 7414 65 7514 59 67 86714 79 77 86 Mo-Kan-Texas RR 5s A 1962 611 7012 75's 5814 783 . 8714 78 82 68 80 511a 95634 958 70 66 73 Prior lien 42 ser B 1962 35158 64 51 59 63 .95912 63 6978 7212 69 70 6112 6312 61 65 Prior lien 430 ser D_1978 598 84 55 62 6612 70 71 76 672 6712 6259 68 7534 7712 72 74 --------65 651 57 Cum adj 5s ser A 1967 34 4012 33 41% 833 4112 33212 451 42 5558 5134 59 3412 38 44 55 6512 55 57 40 55 Missouri Pacific RR let 5s A '65 19 26 2134 1 4 30 3318 3734 28 3614 23/ 20 2812 2012 3212 2814 34% 3114 3712 3558 44 1812 26 General 45 8 1112 712 c1112 7 1158 1012 147 1234 1958 14 2412 1512 19 8 147 1975 912 1114 1634 105g 14 let & ref S. ser F 3012 37% 35 44 2814 35 1977 18% 2538 18 2514 20 2652 2012 32 2152 2112 30 3312 378 28,4 36 __ 2812 281 23 _____ _ _ _ _ _ __ ____ _ __ ____ __ ____ Certificates of deposit .__. . ____ ____ ____ lit & ref 55 ser G 1978 1812 2514 19 -2-514 20 -2-634 2012 3-012 2812 -34- -5i Ifs; ii -4-412 iii4 -3-712 29 -3-534 2134 291 22 758 1332 6 10 Convertible gold 5%..1949 714 11 8 1214 1612 812 133 3 814 314 612 86 1034 912 15% 12 24 1st ref gold 55 series H1980 1834 253 1812 2514 20 2612 2112 32 2912 34 2814 3512 23 2912 22 3112 3712 3512 44 3312 38 371 35 4414 3314 38 31 2814 34 20 2612 2034 32 lit & ref 5s series "1" 1981 1834 2532 1814 25 28 3534 22 291 21,4 1938 6878 7312 -------------------------5012 65 6512 67 6958 71 3d Is. ext at 4% -46 48 Small aais -16 ____ ____ iiT2 Mortgage gold 42 _ ____ ____ -- ____ ____ ____ ____ ____ ...-- ____ ____ ___ Small 60 60 47 50 44 28 28 ---------------------------Mobile & Ohio gee g 45_1938 61 c72 67 67 9 9 Montgom Div let g 5s___1947 14 14 15 1 4 712 15 -- 7/ 11 11 ____ 19 1977 ____ 1 4 5 __ 4/ Ref & impt 4345 634 12% 8 15% 15 5 5 --5 5 1938 414 _-5 7 1312 10 1514 16 5 6 6 Sec 5% notes 5 414 6 1991 Mob & Mal 1st gu g 45 14 65 ----------------62 62 7458 1937 9334 9334 --,- -,- -----------------------897 89% 90 Montana Cent let gu 6s 1937 90 90 92 -92 ---------------------------- ---- 92 lit guar gold 55 7212 7612 74 7972 79 7412 7812 7277 7012 74 Morris & Essex 1st ref 3345_2000 73 76 Constr m 55 ser "A"...._1955 ---- -------- -------------------- 677 69 8258 79 79 • 1985 69 6934 6912 70 --------60 65 68 7212 71 78 Coostr m 4.34 ser “ . 7612 1978 6612 7012 601s 69 6018 6512 60 62 66 75 75 811rp 81 Nash Chatt & St L 414 s Deferred delivery. c Cash sale. • Negotiability mpalred by maturity ..4712 ii 15 ____ ____ _ 6 312 35 2914 4118 20 19 5758 35 38 31 34 39 42 16 23 16%2012 5712 61 -ig 13 7714 72 5834 6318 40 251 1234 25 23 243 914 247s 247 1238 18 7212 78 64 7252 52% 62 5714 64 3912 45 2258 278 9% 13 22,4 2612 1912 23 221 / 4 2612 98 7 2212 258 2212 2612 - ---- ---- ---- --- ____ ____ -- -- ____ 44 ----------------65 65 ------------30 30--------60 18 23 15 2614 28 32 32 37 134 7 8 17 2158 1212 1634 15 11 121g 16 15 20 15 20 25 - - -- _ _ 743 70 7534 71% 75 _ _ _ 90--9112 - 87 90 8714 8714 8714 94 92 --------9358 9358 --------82 743 7812 70 7412 79 8058 79 80 837 85 84 8612 8014 8014 84 86 75 8132 6538 78 81 8112 7914 82 7912 85 80 8134 78 8618 83 86 -98 17 8 1212 - -9114 8314 7512 8372 7014 82 9752 -9912 1414 17 7/ 1 4 11 9 1012 ___ . -8712 28812 7914 82 71 75 77 77 67 75 80 80 Financial Chronicle Volume 138 87 1933—Continued. BONDS January February March April October May Novenber December June July Augiul September Low High Low High Low High L010 High Low High Low High Low High Low High Low High Low High Low High Low 1114h Raabe Fla & Shef 1st gu 5.1937 National Rys of Mexico4 34sass'tcash wart No.3 1957 4$ ain't wart mt. No.5_1977 Nat RR of Mex pr 1 434s_1926 434 sass't cash warr No. 4_ 1st cons gold 45 1951 45 ain't cash warn No.4_ ___ New England RR cons 58_1945 Cons guar 4s 1945 N 0 & Northeast 43.55 A 1952 New Oil Term 1st 4s ser A-1953 New Ori Tex &Mos 5s ser A 1935 let 55 ser B 1954 1st 5s ser C 1956 1st 4 345 ser D. 1956 list 5 Yis ser A 1954 ---- ---------------------------- 85 Npt &Cin Bridge gen gu 43,55'45 N Y 13k IY0 & M ii con 5s.1935 NY Central RR cv deb 60_1935 Consol 48 series A 1998 Ref & !mot 434s ser A 2013 Ref & impt 55 ser C 2013 NY Cent & Hudson 334.1997 Registered 1997 Debenture gold 45 1934 30-year deben 4s_1912-1942 Ref & impt 434, set A 2013 Lake Shore coil g 334a1998 Registered Mich Cent coil g 3)45_1998 Registered _________ NY Chic & St I. -1st g 43_1.935 1932 6% gold notes Certificates of deposit_ Ref g 534.ser A 1954 Ref 430 ser C 1978 3-year 6% a notes 1935 ------------------------------------------------92 92 9312 9312 ---- - ---- - ---- - 100 10034 100 100 98 91 --------9814 100 100 101 1014 102 101 10112 ----101 101- 10112 1013 - -4 10134 1013 - -4 101,4 10114 - 53 6412 48 64 46 56 474 60 61 8014 77 8334 8412 92 854 88 83 89 794 89 69 77 37258 84 $6014 6938 614 70 60 6514 5712 634 63 74 7234 7912 7818 8418 80 83323 74 7958 7334 7734 64 7612 6812 75 3712 4678 38 4634 37 4418 344 4634 47 634 60 6634 67 74 68 71 60 6858 5612 6512 51 57 63 59 4114 50 40 5012 4014 4814 39 4978 4912 67 6414 74 5914 71 7314 79 6533 7234 70 80 58 6312 6138 684 754 8018 s74 8012 73 774 6834 c7412 37212 76 8218 8334 784 834 8012 8312 7412 82 75 794 79 83 7378 8214 --------7412 7412 --------70 7012 ____ __ ____ _. 7712 7712 774 7718 77 77 6812 73 66 71 65 7178 60 70 36912 -83384 8378 9334 884 93 82 9012 8358 -88 4 80 -77 13; 7 784 1612 64 7112 6412 6618 ----------------72 7312 75 77 7958 8612 84 85 84 84 75 80 67 76 6712 78 3718 47 36 4658 3712 4412 3412 4634 464 6312 5912 664 6418 74 68 7112 60 6834 5614 66 51 5912 5714 6234 69 71 65 6958 63 67 60 671 6738 7338 69 71 73 77 73 77 734 744 70 75 65 7158 64 69 68 71 6912 6912 -------------------------------66 74 7414 7143 75 7218 78 74 77 71 65 694 66 66 85 8818 65 6954 68 73 68 7012 55 72 _ _ _ _ _ 57 57 ----------------69 69 55T2 -iii2 55T2 "713-4 5 . 5r2 "ii 46 6812222 83 90 55 -6612 8814 1612 55 -66 ii 183 7962 -5-112 ____ _ ____ ___ 134 134 c212 -c212 134 $2 14 2 85 90 90 91 95 --------9512 97 --------9254 9312 ---- ---- 118 1 118 1 135 112 138 212 118 2 18 24 134 4 24 c434 212 3 4 312 2 158 278 234 138 112 1 218 112 134 178 34 334 234 278 --------218 5 122 112 214 214 2 212 2 112 ---------------- 134 2 238 --------2 ____ ____ 3138 158 114 138 1 14 112 134 2 2 2 2 158 214 158 4 258 3 218 214 2 ----------------- 68 68 ----------------------------------------80 83 ___ 7712 7712 6158 -------- ----------------------- ------------ ---- --------79 79 7412 c7578 ____6858 6823 5 614 69 76 32 35 30 33 303 394 48 4912 61 30 38 6312 70 60 60 58 58 ----------------53 5012 5012 51 5312 --------49 49 6812 70 55 63 6412 704 65 75 65 7478 60 65 5834 5834 5834 ---------------- ------------------------ 20 25 23 35 21 2234 1812 22 15 1912 --------1214 32 2 2l4- 2212 1612 2158 2014 2912 25 30 23 3518 2058 2712 20 23 18 2212 14 18 14 21 2212 18 23 --------1634 2112 22 28 2014 2578 1812 2212 184 21 --------1414 25 30 274 36 19 22 2114 22 22 27 20 2212 1634 20 24 2712 26 36 214 2212 20 2214 1912 1912 1 15 144 20 2512 1812 25 19 2414 17 22 2614 3612 21 2014 30 264 31 29 21 24 1812 23 1412 19 1412 2 2 212 218 614 64 57 61 1834 20 21 1973 2014 38 36 - - - - -- - - 16 1912 ii 163-4 ii .113-4 ii 12 zi -664 54 -64 5184 -6712 -851.4 -6612- -ii- 1614- -ii- -6514- -43 2 li- -55- -57141814 32 30 4434 44 5634 4512 5212 37 4934 3834 45 12 15 1278 18 1214 19 1212 18 3634 4412 414 50 8 1378 1414 3012 28 4834 4612 67 514 11 5312 6112 43 5612 4112 534 42 47 1058 1514 9 13 4312 52 NY Connect RR 1st 434a A 1963 91 87 94 9338 95 9412 100 9112 9612 88 9312 87 91 944 9814 96 98 97 9712 9978 9212 98 9312 97 1st gu 55 ser B 1953 --------96 100 96 100 1003410211,, 102:4 10212 10212 10318 ----------------99 100 94 99 --------98 98 NY & Erie 1st ext a as_ 1947 4 ----------------86 888 ----------------92 34 ----------------89 212) 3d ext gold 43.4. _ ____ ____ . 1933 9912 9912 10012 10112 ---- ---- ---- -_-_ _ ._ _ ._ _ 95 95 9512 -9512 NY & Greens, L gtd a 58_1946 --------------------------------518-4 -5i34 5512 1112 a I -tii --------6312 -66 55 -614 5524 8514 NY & Harlem g 33.4. 2000 ------------------------85 86 /2 8558 8534 ----------------854 -1034 34 1 8 4 NYN/I&1non-conv42_1947 Non-convertible 334s_. 1947 Non-conv deb 334. 1954 Non-cons deb 5 1955 Non-cons deb 48 1956 Convertible deb 3345__1956 Convertible deb Ent 1948 Registered Collateral trust 65 1940 Debenture 45 1957 1st & ref 434. 5er of 1927 1967 Her RI,& Pt Ches lit 4s 1984 N Y Ont & West 1st a 4,8_1992 1985 General 4s NY Pros & Bos gen 4, 1942 NY & Put lit con gu g 45-1998 NY Susq & West lit ref as.'17 2d g 43is 1937 General gold 5s 1940 Terminal tat gold Ss__ _ _1943 NY Westch & Boa 1st 4SO I 46 Nord Ry eati if g 634. 1950 Norf & Sou lit & ref 5. A 1961 Certificates of deposit 1s1 gold S. 1.941 N & W RR Imp ext 46.. 1934 Nont & West Ry let cons45 1996 Registered 1996 Div 1st lien & gen 4 45...1944 Poca C & C joint 4s 1941 Nor. Cent. gen & ref 5 cap.1974 Gen & ref 434/2 series A_I974 Northern Ohio 1st gu g 55_1945 ----------------------------------------78 --------404 so so 55 16 --------05 -66 --------------------------------44 50 --------65 65 65 65 ----------------50 47 5434 53 5712 60 565 47 52 4938 51 ____ ___ 44 44 58 5812 50 583 51 5214 49 58 58 5014 60 6043 644 6334 71 65 6878 60 6714 5178 57 50 45 45 5114 58 51 -55 53 5612 53 56 50 52 6312 6878 6212 63 60 6312 63 71 45 50 58 56 47 4512 53 43 50 50 51 --------44 44 5478 55 59 44 44 55 581 58 60 60 56 5812 4612 7814 83 65 80 6212 70 5718 654 65,2 82 37912 874 88 99'2 91 97 80 924 72 84 6758 78 38 6014 89 504 43 _ _ 8258 4514 6512 90 60 5212 _ ii -5.1 31 34 69 374 53 88 52 47 _ 83 4414 6314 90 6034 5078 _ 68 367s 50 8812 5234 45 _ _ iiC2 -7-3-12 E.3:1 2612 2812 254 71 59 6612 67 3478 42 44 40 45 5314 5112 60 8234 8812 88 88 574 584 544 58 4812 4624 50 4812 . ____ ____ _ _ -6-4- --------68 27 2312 3712 39 8218 81 8512 5712 534 5812 7012 69 75 89 85 89 62 60 65 5514 53 5918 ._ . _ -6-8- 55 "7-6 88 57 71 884 5938 5412 _ _ 91 95 85 5714 7538 72 901 89 67 62 60'2 56 ._ _ 95 60 75 90 65 6118 _ 65 64 :i. 16 i5 -7-1 4734 464 6414 58 57 8 .4i2 53 64 854 5513 53323 _ - iii: 561: 7434 881: 641; 5914 _ ii 44 5534 87 5758 51 _ i -iii :iirz 5612 5612 48 -55 513 53 531 48 741 49 48 5071 49 45 71 a 16 io 4112 47 4112 51 56 54 83 871. 82 5213 59 54,2 46 52 45 814 811(. _ -ii-13 6614 70 ii 5112 4014 45 44 -gi 4954 6412 8812 61 5634 _ -50 4872t 55 54 48 7712 176 48 804 83 59 5612 _ -16 5312 1iis ii --i 19 iT is -ii2 iii ii34 "i -ig 5W2 -i -ii :5 Ii :i2 3134 35,8 48 442 2612 552 -Ii a 45 31i4 -ii 64 64 ---------------- -------- ---- ----------------------------875 375 75 75 --------7254 7234 34 41 31 39 38 4634 35 46 52 60 3818 5278 5012 55 53 5712 43 544 4034 4814 40 43 39 48 10334 106,4 10012 106 31003810214 9958 10612 104 11078 510412 108 10512 12012 11612 12612 8123 12778 11916 12918 12534 13418 12033126 414 53 24 312 3 34 *314 34 '418 8 *712 9 12 .618 11 *834 16 .8 712 5534 8 5718 1014 *5 - -- - - _ -- _ _ - .•13 13 -----------------------4 -._ 6 654 812 -11 -1-i iiTs Ii12 i 1 Es -1-612 iii4 If ilif2 1112 22 2838 d--------151 15 19 31514 1734 04 1044 10414 10414 102410312 10112 10112 10118 103 10238 10212 10214 10214 101 103 10112 10158 --------10112 1014 89912 10112 9718 10014 $92 100 8814 95 87 934 9114 9812 074 100 03410012 39838 9934 9418 100 9312 9978 964 100 9114 98 ._ _ . _ _ _ _ .. 944 9418 _ _ _ _ ._ _. _ _ 94 94 9878 1011g 55 1-6112 55F2 -61 5:ti4 11612 ;55 Iiiis 5572 161-32 5514 161-3-2 ioois 1614 ii 1-61- 5544 1-611: ii 1-61 9734 10212 9778 9914 894 981t 90 9534 924 9512 944 96 9812 100 9938 100 96 994 9714 99 96 994 9734 9912 9912 100 ----------------------------------------99 99 --------1061210012 10012 10012 98 98 ----------------------------------------------------- 88 88 92 -93 90 -90 31 32 25 25 32 34 35 35 17 2212 22 374 37 4112 4118 454 41 42 3834 401 3512 4213 3514 36 Nor Pac prior lien g 4a1997 Registered 1997 Jan 2047 Gen lien it 3s Jan 2047 Registered Ref & Impt 4 34s A 2047 Ref & imp 65 ser B 2047 Ref & imp 55 ser C 2047 Ref & Imp 5s ser D 2047 No Ry of Cal guar gold 55..1938 Ol & L Ch tat gu g4s 1948 Ohio RI, RR 1st 4 5s 1936 Gen gold 5s 1937 Ore RR & Nay con g 4s 1946 Ore Short List cons g 5s...1946 1st con 5s guar 1946 Oregon-Wash 1st & ref 45.1961 Pie RR of Mo 1st ezt a 4s..1938 1938 2d extended gold S. Paducah & Ill 1st s f 4348_1955 Paris-0rtea a4 RR ext s f 5 34868 Paulista Ry 1st & ref 76-1942 Pa0& Det 1st & ref4 As A 1977 84 8738 814 8712 79 0412 374 81 73 8558 83 8678 86 8912 86 8938 7978 877s 8034 861: 76 8312 7712 8412 8112 8212 82 82 824 8212 --------7458 80 80 80 81 85 8334 8334 ---- -- -— -—. — ---- - 5678 6158 5418 6034 53 5718 48 52 62 594 62 58 6178 5812 6134 5412 -5978 - H -597-2 511112 -567 ; 55 -615512 554. --- _ - _ _. _ _ ._ .. .. .. _ - 5178 52 54 64 i14 E/F) -Ells 5532 "i124 iti "1622 ii -iii4 i8T2 "7112 ii2 -ii3iiFs -6114 Lirs -6. 4 55 -i6 55 iii 6912 72 68 74 62 7512 624 7134 60 7134 69 8512 8058 8512 85 924 8812 904 75 8912 76 84 6812 80 76 87 --------69 2 4 60 67 6712 6214 60 80 74 81 5915 79 82 74 80 76 84 724 7412 64 7312 67 7658 57 6612 60 6712 4 65 57 62 634 78 75 8054 7478 83 7612 82 76 81 72 75 61 74 67 7614 ------------------------------------------------ ---- ----100 100 100 100 _ 399 899 _ 22 4 82412 72 5 k2 ao 6234 so as _ii_-ei 4534 ao 46i2 50s --------80 80 80 80 --------82 89 --------90 90 -. 9312 9312 90 90 _—_ -_-- ---- _.-_ ____ ----------------70 70 70 70 85 85 ____ __ 90 90 91 91 ----------------87 -87 87 87 9612 87 9312 88 91 91 8418 944 9018 -92 96 0514 9714 89 953s s91 9514 5874 98 95 8314 9212 864 0212 1024 105 103 10414 100 103 99 100 100 105 102 103 10414 106 10578 1074 31031210614 1023810512 100 10318 103410512 103 1054 10314 107 10034 10214 10012 10118 100 105 10314 1054 105 1064 106 10712 1034107 104 107 993310658 103 107 7712 89 75 84 8334 89 75 80 87818 85 8312 8534 8512 89 84523 89 7714 86,8 8112 8614 8734 90 8014 89 86 8614 8334 8334 81 83 7312 8512 --------8233 8514 89 39343 90 9212 91 9378 8612 9078 80 8938 82 8912 83 85 80 80 75 80 75 75 80 85 814 85 88 88 90 90 8812 90 88 88 87,4 88_— ------------------------------- -93 93 9414 9412 ------------------------9378 94 16314 16172 35 2 166 - 2 ii 16612 52 10134 0414 11412 112 123 s117381 81 4 1247 114 :118 36 3912 38 38 38 46 38 39 36 40 54314 45,8 4534 4534 47 5012 5112 52 46 50 51 52 4812 54 75 80 78 8512 76 88 71 80 75 88 85 8618 8638 9218 9112 9312 8978 93 88 90 78 8314 79 8512 Penn RR con g 4s 1943 Con gold 4s 1948 Sterling stamped dol bds„ 1960 Consol 434. 1965 General 434. ser A 1968 General 58 ger B 15-year secured 6 Ms---1936 1964 40-year secured g 5s 1970 Deb g 434. 1981 Gen 4355 ger "D" Peoria & East 1st cons 45_1940 1990 Income 45 Peoria &Pekin Un let 5 345 1974 Pere Marquette 1st 55 A..1956 1956 lit 45 series B 1980 lit 4 34s ser C 1943 Philo Belt & Willa a 4s 1974 Gen 5s series B 1977 Gen 430 set "C" Philippine Ry lit 30-yr•f 4.'37 08 98 9534 9534 9718 100 98 98 98 97 9612 100 91 9434 9214 98 9712 10058 95 100 92 98 9534 100 97 10012 9434 9912 59412 98 90 93 954 9712 97 994 10214 10412 100 10412 9712 100 9412 991s s9638 10312 102 105 7318 7978 79 8712 85 91 7812 9114 7734 9118 77 84 85 9758 874 9778 78 9134 82 8718 85 95 92 98 99410412 9722 10138 95 100 9812 10322 102410414 9914 104 7814 9212 7814 83 73 79 794 91 7812 8778 86 90 594 7212 60 7314 58 6714 56 6834 6812 7518 754 80 68 7858 09 7378 7314 82 80 8534 7238 854 724 85 30 30 __ 3714 38 ____ 33 3512 364 62 57 6214 224 212 658 514 9 14 .-212 134 334 -------- 2 75 76 _--- --- 7012 75 72 77 6934 77 77 79 43 611 58 65 2834 43 35 4312 3312 4312 2914 -39 3514 3514 3014 3014 28 36 36 5418 48 58 37 37 2812 344 28 39 29 394 2912 38 40 55 51 5812 95 9914 94 9412 94 99 99 10018 97 10012 9734 101 --------97 100 ------------------------93 95 87 88 85 85 82 85 _ 81 _ 8514 8514 81 1914 2222 19 2238 iii4 -2-il 2314 2522 1958 21 20 23 99 9924 1004 1014 99 100 9934 10112 984 100 991s 10034 102 10412 10312 105 91 9478 9214 9434 9678 10058 9812 10034 10322 105323 104 10514 8878 98 9434 97 80 8614 7914 85 8534 9012 86 8914 62 72 62 6412 718 1612 1014 1214 8312 8312 8511 90 6478 7518 6838 76 57 62 6112 62 584 6812 63 68,8 99 10014 10012 10114 97 10212 101 10212 94 94 94 96 254 354 25 28 96 974 59334 98 97 99 0814101 310018 10234 P CC & St L gu g 43.4s A 1940 984 102 9934 101 1942 9812 1011 100 101 99 99 94 984 98 100 Con gu g 4 As err B 99 1007s 101 10258 1942 9934 9934 9934 9934 ..--- -- ---- ---- ---- ---- 0978 39974 10034 10034 Con gu g 43.4i see D Con gu a 45 sir D 1945 --------95 95 --------------------------------39458 9734 101 10118 :983310034 9814 10012 99 101 9818 10118 tuus 10114 9412 10018 98 100 s98 10078 9912 10112 9633 10014 9814 100 9958104'! 10178 105 9812 104 100410534 85 93 8612 92 8038 8714 8312 90 9512 100 96 9934 8738 9738 93 100 103 105 103 1052a 101 10478 10158104 81 90 9612 89 95 91 87 9134 7134 8034 74 7923 66 744 80 77 80 8612 82 8838 7534 83 78 84 61 63 594 6412 5638 58 50 60 734 1014 512 634 434 7 675 1034 874 9034 8734 90 874 88 88 88 63,4 694 6134 6334 51 64 57 6334 61 63 50 58 50 584 4812 5034 5112 6414 46 5334 584 6412 5134 57 984 101 99 10114 99 10114 9934 101,4 102 10238 100 10114 99 10012 9512 10012 9312 95 93 95 8912 8912 87 90 22 27 2014 2514 2114 25 214 2412 10158 10238 1014102 102 10234 10018 10234 100 103 101 10253 99 1024 102 10278 100 10254 100 102 102 10214 10212 10212 --------1007510275 1024 1024 98 98 9812 9858 98 98 98 9822 ---- ---- Con gu age series F Con gu 44.serG98 98 Con gu g 4s series H -1960 __ ---- ---- - — — ------ ..... 15Y4 IA; --------96i8 -9612 --------98 98 _ ___ 5118 -96- ------------------------102 103 102 10234 99 102 Congo gaijia ger 1 1963 961-4 -9414 9758 -9112 684 16-3; _ _ . Con gu g 43.4. ser 3 —1964 --------9823 9812 9634 9634 944 -974 --------95 96 9612 97311 100 102 10212 10218 102 10212 101 10134 General 50 aeries A 85 92 80 83 78 7812 79 90, 90 94 95 99 934100'* 9812 100 1970 78 91 93 9633 87523 9318 Gen mtge Si series 13____1975 84 91 7812 98 7812 8954 89 94 78 84 69 80 934 9934 98 9912 95 9218 9612 8514 9414 1977 7238 85 s83 86 74 80 69 744 7612 136,4 8414 884 864 9218 90 93 87 92 81318 8664 76 8512 Gen 4H s series C 9n 8 Deterred delivery. c Caah sale. • Negotiability Impaired by maturity. 9914 9924 8634 8712 804 -994 994 93 95 86 Financial Chronicle Jan. 6 1934 1933—Continued. BONDS January February March April May June July August September October November December Low High Low High Low High Low High Low High Low High bow High Low High Low High Low High Low High Low Higll Pitts Mck St Y 2d guar 6s__1934 Pittsb Shen & L E 1st g 55_1940 1st con g Ss 1943 Pitts Va & Char Ry 1st gu 4s'43 Pitta el & West Va 1st 430_1958 1st m 434s ser B 1959 1st mtge 410 ser C 1960 Pitts Y & Ash 1st gen 4s A 1948 1st gen 6s series B ____ _ 9958 9934 -__ 100,4 10014 10014 10114 10134 1-01-3-4 102 103 100 1-0112 --------100 1-00 --------10014 10014 10012 10012 100 100 _ _ _ _ _ _ _ _ _ _ _ _ _ _ ii 16 55 "3-8- 55 11-55 Ici ii :5-45i -55" 13- ---56i 30 3812 33 3713 35 35 31 39 48 34 6512 6858 5513 62 30 3812 3012 3712 3018 36 64 7012 3014 34 36% 5512 55 65 ------------------------------------------------ 95 95 100 Reading CoJer Cen col 45..1951 Gen & ref 4 jig ser A_ _I997 Can & ref 41ss series 11 1997 Richmond & Meek 1st g 4s_1948 Richmond Ter Ry 1st gu 5s '52 Rio Grand Jet 1st gu g 55_1-939 Rio Grande So 1st g 4, 1940 Guar (Jan 1922 coupon) _1949 Rio Grande West 1st g 45_1939 1st cons & coil tr 45 A_1949 R I Ark & La 1st 434* 1934 Rutland-Can 1st gu g 46..1949 Rutland RR 1st cons g 4 As1941 St Jos & G Isl 1st g 4s 1947 St Lawr 8; Adir Ist g 5s___.1996 Second gold 6s St I. Iron Mtn & So Ry— River & Gulf div 1st g 4s_1933 St L Peo & N W 1st Ss 1948 7034 77 7434 78 --------65 69 70 83 91 7822 7534 81 78 9034 78 84 8434 9112 78 8934 79 8124 78 7812 81 _ _ _ _ ------------------------9722 1i1 9722 ---------------------------------63 _ 8612 90 7912 8714 8034 8512 73 84 76 811s 9314 94% 89 9414 8612 9212 79 8712 8278 8714 9334 95 89 9334 8738 9212 7914 87 82 86 St L-San Fran pr lien 45 A_I950 Certificates of deposit Prior lien Ss ser B 1950 Certificates of deposit-Con mtge 43-Is ser A 1978 Ctfs of deposit stpd St L Southw 1st g 4s 1989 2d g 4s Inc bd ctfa_Nov 1989 1st term & unify Ss 1931 Gen & ref 542 A 1990 St P & K C Sh L 1st 4.48_1941 St P & Duluth 1st cons g 4s'68 St P E Gr Tr 1st gu 4348_1947 St P Minn & Man cons 45_1933 1st consol g 63 1933 Gold 6s reduced to 430_1933 Registered Ss extended 1943 Mont ext 1st gold 4s_ 1937 Pac ext sterling gu 45._ _1940 26 2038 3012 21 8 1478 22 1712 21 19 12 9 1414 1053 14 1318 1128 1878 15 14 22 21 25 1814 1612 2012 1914 30 823 12 13 9 1312 1058 1228 1118 1712 15 10 1234 11 2112 2712 1614 22 2334 33 1814 23 1434 167s 19 17 1378 10 1334 11 1722 2223 23 3034 2112 2512 16 2112 1418 934 1214 11 1034 1328 1118 1678 1612 19 13 1412 18 1412 1812 16 2078 1813 2912 1734 23 1112 7 912 51333 1018 9 1012 978 16 1413 1724 1138 18 2623 1634 23 7 912 614 10 9 1114 978 1534 1412 1734 15 20 6818 7212 359 70 6112 71 52 63 6038 65 49 56 5912 6212 5628 6014 54 56 59 4014 4712 4712 5218 51% 5314 46 5222 45 __ 3338 3312 35 44 35 35 ___. _ _r 50 57 24% 3578 31 157 48 19 2814 3014 4558 41 5012 50 6714 55 60 __-29 ; 2012 5114 55 1938 2778 15 2513 16 20 42 5222 44 4715 56 12 1934 2024 3312 3238 47 37 47 44 4912 3538 6222 36 44 28 34 32 3934 28 3312 3658 32 3738 30 38 ____ ____ 7814 8022 --------75 75 --------70 75 _ --- — - ---- --- ---- --- ---____ 50 -EA --------88 -58 45 50 50 92 1512 9238 1612 8912 14 ------99 9734 10012 10034 10234 102 03,2 ---- ---- ---9314 9612 9478 9638 91 97%10012 102 10234 10314 10414 9234 99 9534 89 93 8818 96 392 97 90 9338 89 9478 9034 99 977810078 102 10234 103 10434 92 92 941 95 ----------------9518 9612 9834 9834 ---- ----------------------------- ---- ---------------- ---- --------100 - 11(i i1ir2 1-0-6 5iis 75 83 75 75 76 76 79 80 381 $81 86 9014 9212 9418 92 96 390 79 86 ------------ ---- 71 70 70 --------7423 80 85 9018 8518 851s 38622 8978 88 71 551-8 3438 2014 40 5113 87 ___ _ -6-2 3814 29 48 5113 90 ____ 38 54 2812 37 7612 8818 87 _ 17-12 65 77 8112 8634 9022 8612 9013 _ 97781814 63 69 83 8912 91 38 9912 80 8758 95 94 40 9912 80 _ 10024 10014 101 10114 foci 10034 10134 --------97 1-60" 10412 1-6412 _ _ _ 54 . ___ 5.1 -(11 ii 18-18 62 -iii--- 66% --------60 85 ii" 60 67 68 6612 70 95 95 63 6618 60 68 6118 68 6234 --------62 5714 6312 53 6022 5254 57 923 923 2512 181i 47 46 8512 8858 ___ __ ____ ___ 151 iiii" 155 166 -55" 85 -85 83 -83 --------78 85 70 j1 124 _ _ __i - 4 --- ---- ---- --__-- --------_ 6112 -68-7 80 16 73 s86.3-4 71- -75 - -66- -741If 5514 -6-6373 ------; 6878 -ii 7812 87 55 2 -6658 6418 59 61 50 58 27 3712 32 3712 3712 52 39 5214 5838 52 60 40 5214 42 2312 3212 2038 2834 26 3878 2112 2778 17 24 2312 1834 2412 1858 23 14 1714 11 1514 11 55 5712 51 54 5123 --------3578 4634 4612 50 49 54 4814 54 5114 57 47 48 4312 6012 62 6034 62 5722 5712 50 58 5178 --------39 39 --------55 5514 55 64 52 8314 90 80 8114 8114 84 8612 --------70 81 93 89 8978 89 90 91 9218 389 8838 ------------------------64 6454 ------------------------6414 6414 -------- 65 38 36 3538 40i2 3638 44 53 4314 40 4212 38 45 _ 5674 40 45 5113 *4812 57 5278 53 58 *54 58 58 *47 6112 *54 65 5918 6358 53 75 -----72 48 1634 50 54 -65 5334 *4518 .5312 *4634 4812 *4534 49 6314 58 59 5822 5812 58 60,2 1634 14 16 1113 14 17 1612 14 1538 12 16 1134 6312 51 4112 45 5512 4318 4678 4058 3212 20 --- -- -45 -50 ---- ---- 14 20 17 1534 1314 1912 1412 21 16 1978 1512 14 1512 1222 1634 15 1122 1614 5714 52 66 4222 4258 45 4918 43 49 4614 37 44 2814 2134 28 --- ---- -- --45 -_-_ ----___ ____ ___ -6654- -5514 li- -551.4 -6i92 88 91 86 0113 9038 9112 90 8514 8812 St Paul Un Dep 1st& ref5s 1972 100 101 08 101 100 10322 101 10212 100 104 100 10318 96 101 98 98 10014 9312 100 89 9658 91 97%10034 SA&AP1stgug 4s 1943 5712 60 7212 61 6412 577 607 55 63 58 55 5812 60 64 6212 6913 6778 80% 7014 76 54 55 5712 64 Santa Fe Prea & Phoenix 551942 ---------------- 8214 90 --------82 90 ____-__ 95 100 96 100 --------96 96 98,4 9814 98 98 Say Fl & W 1st g 65 1934 ____ ____ 1 24 9614 --------95 97 9934 10014 00 10038 10038 10013 100 10038 100 101 100 100 94 97 9931 100 1st g Ss _ 1934 .. 9934 100 100 100 __ ___ 9934 100 --------100 100 100 100 90 94 96 98 97 9714 95% 98 93 -95 91 9612 396 896 Scioto V & NE 1st flu 45—.1989 9338 I& 93 -28- 90 -9-3- —9212 -9-5 92 9634 Seaboard Air L Ry g 4s 1950 ____ __ •17s 234 30 9c29 3V *634 6% *__ - *634 1213 •16% 17 *22% c29 •21 _ __ ____ -_ *1518 1614 Stamped •7 _-712 *534 6 ___8 *10 17 *1512 20 *1922 2622 •18 21 *1414 18 *15 *528 -518 *8 _-1812 *1212 1412 15 *15 -3 3 Certificates of deposit 612 612 ----------------924 15 1424 15 15 18 1512 1612 1812 2314 1818 20 10% 15 1024 12 Adjustment 5* 58 1949 58 -------34 122 2 22 5 1134 612 814 338 73 322 5 17 4 412 6 6 4 6 4 Refunding 4s 1959 *223 3 *214 3 •138 4 *i a *412 8 *5 9 •8 164 •853 1113 *522 84 •6 812 *518 712 *524 914 Certificates of deposit ----------- 2 2 2 27 3 712 412 838 838 1422 8 5 7 9 --------5 514 814 6 48 6 1st & cons 6s ser A 1945 24 378 3 6 1012 614 912 6 33 4 234 312 318 514 58 938 621 1012 978 1723 934 13 78 613 107s Certificates of deposit_.134 334 2 9 11 913 7 1024 814 18 234 538 5 2 2 3 6 1014 6 924 522 734 512 912 73 Atlanta & Birm lit 45...._1933 6 11 *1018 13 8 814 *934 15 6 6 734 73 1922 *17 17 *10 15 19 *20 31 *1834 21 *18 Seaboard All Fla 1st gu 6s A'35 of deposit _ 47 412 3 614 412 934 478 5% 313 434 3 1%Certifcas 134 --------1 334 3 222 224 578 4 112 1 Series B 1iii Certificates of deposit --------------------124 114 1 3 4 --------278 318 278 422 4 414 712 4 214 514 414 6 2 So. & No. Ala. con. g.5....1936 ---------------------------------------- 9923 9913 10018 10112 102 102 102 102 3100123101112 99 102 00 10114 Gen cons gu 55 1963 80 80 8512 8512 _-__ 94 94 -------- 89 89 94 94 __ 75 75 84 84 8314 90 --------93 96 So Pac Co Cent Paccoll 4/4.1949 348 55 4812 40 484 4612 59 40% 5518 341 -52 6958 46 55,4 5012 5738 60 68,4 52 66 5722 6314 62 71 7 1st 43 -is (Oregon Lines) A '77 5814 70 56 70 74 7812 65 7514 66 6938 55 66 53 5918 6 57 65 6818 67 688 64 7023 7012 80 Convertible Ss 1934 674 7912 75 82 7612 84 90 90 9312 39212 9314 85 9178 82 9034 96 9012 38912 93 69 75 Gold 43-is 1968 4713 54 44 54 5234 58 5024 65 48 557 634 67 4013 5414 3934 47 61,4 74 3814 -45,2 46 58'2 54 61 Gold 43-is w I____May I 1969 46 53 43 5234 4624 5514 50 58 3714 4538 46 5812 5328 6012 36014 7412 6234 6612 49 63 3818 53 33712 46 Gold 43.4. 1981 46 5279 38 5278 38 4613 3614 4522 4512 5712 5114 61 48 6212 50 5712 42 5214 46 55 60 7212 62 66 91 9412 88 9214 8018 89 8134 868 San Fran Term lit 4s1950 75 8328 817 85 37034 78 71 71 76 8224 9322 92 95 8322 76 85 So Pacof Cal 1st con gu 55_1937 02 102 102 102 102 102 972s 9712 --------1011210122 102 102 102 102 10212 10212 --------1012210122 100 100 _ __ _ ___ ____ South Pac Coast 1st gu g 4s 1957___ _ _ _ ____ __ _ 95 95 9538 9538 ___ ___ 95 95 __ ____ _ ___ Sou Fee RR 1st ref go 4s1955 73 379 6714 7634 6813 75 60% 71 77 8234 ____---68-33 65 -7-6- 7234 -7-834 37812 -84 60 -7-122 6212 _66 --6218 -7222 79 Southern Ry 1st con Ss 1994 55 6122 58 68 9628 91 9114 91 8212 81 5712 7134 71 57 62 74 8318 79 89 8222 88 9412 82 91 Registered _ _ ____ _ ____ 1994___ __ 5822 59 ----------------83 85 ----- --- --- ---- -- ---- ---- -1956 1712 -2312 1824 -2334 17 -Devel & gen 44 ser A 4 3612 5324 47 5914 62 6434 5514 1014 4512 -58% 49 -553-4 46 5334 49 -5932034 37 24 Devel & gen Is 1956 20 28 58 63 70 64 76 2112 28 2038 27 7014 64 73 78 7223 68 85 46 6712 61 23 45 76 Dove!& gen 61.4. A 75 65 7534 6784 80 66 7934 68 7712 82 1956 23 30 207 2814 22 2913 2534 4812 48 69% 88 78 7213 90 Mem Div 1st 55. 1996 40 46 ____ ___ 5818 5813 60 70 __ ____ ___ ____ 65 72 7018 8124 80 8114 80 8124 61 698 60 66 St Louis Di• 1st gold 45_1951 42 45 5324 80 69 70% 697 703 63 65 45 -56 47 -48 36 -47 55 6578 8914 78 5412 6212 60 69 East Tenn reorg lien 55_1938 ------------------------60 62 ___ 7712 7712 73 77 91 70 80 80 80 ----------------91 23 c27 Mob & Ohio coil tr g 4, 1938 20 3238 25 33 47 58 4212 56 45 50 44 5912 ____58 5914 63 46 533 51 2312 35 35%48 20 2029 20 22 18 20 Spokane Internet tit g 55.1955 18 20 18% 2028 1312 1612 913 13 197 27 21 22 24 30 918 1024 813 11 _ _ _ _ _ . _ _ . _ _ _ _ Sunbury &Lewiston Ist g 4s'36 _ _ _ 98% 100 _ _ ._ . . Tenn Cent Ist 6s"A"or -13"'47 2 1-6 55 -3-4: ig -3-i 2-5 -3-212 55 -41 ii "5-4- iirt 1118 E5 li iiTz -5-i 4314 5178 4548 16 ii 1614 Term Assn of St List g 4 3.4s'39 100 10034 9934 10114 96 99 96 9912 100%10078 10112 10214 102,4 10212 10112 10224 10112 102% 99 9922 99 101 98 98 9512 98 9738 100 102 10234 10214 103 100 10212 101 10212 98 103 9222 97 1894-1944 --------1002410034 9122 99 98 101 28 1st con 85, 71 8112 79 84 84 90 69 7328 68 751s 80 84 1953 78 8324 80 8414 70 76 Gen ref. f gold 4s 83 873 864 9112 8712 91 Texark & Ft Sm 1st 54.A..1950 59 67 62 6812 6112 65 77 75 7712 6414 73 68 8212 8818 76% 84 7512 86 7424 79 59 6624 66 75 Texas & N On cons 55_1943 --------65 65 --------60 60 --------61 61 ----------------65 65 65 65 9712 10014 98 10022 90 997 92 9573 82 -92 8478 90 93 9912 8 86 9234 85% 97 Texas &Pacific 1st a 5s 200o 91 100 8912 100 8912 925 55 57 5538 60 70 4614 55 48 54 1977 4213 54 56 65 55 70 6734 70 4612 55 Gen & ref 55 ser B 68 6934 61 6813 75 55 60 1979 4324 5312 4822 5614 45 55 5312 57 48 6123 70 5614 5518 7018 68 70 Gen & ref 521 series C 55 6578 64 7638 677 70 56 6018 54 57 62 69 4712 5518 55 70 6734 70 65 75 49 55 48 65 55 8412 68 70 Gen & ref User "D"..„1980 43 52 71 71 --------68 71 73 Tex Pac-Mo Pac Ter 5 34s1964 5834 584 50 59 --------55 55 57 61 63 63 --------73 73 70 8612 90 90% 9024 9112 95 9614 9712 95 9734 ---9212 95 Tol & Ohio Cent 1st g 5s...1935 ------------------------86 86 - - 85 395 ___ 9812 9812 --------95 15 Western Div 1st g 5s 91 91 1935 --------------------------------80 85 89 91 89 93 ----------------83 83 ......_ Gen gold 5s 8412 85 ____75 8212 ------------------------80 81 1935 73 73 60 6234 62 16-7 Tol St L & West 50-yr g 43.1950 44 50 6934 6934 67 6714 6512 67 6612 71 46 5222 --------50 5024 4524 6034 61 89 Tol WV &0 1st gu 434* B_1933 100'4 10024 15014 10024 TorontoHam&Buflst4s.1946 8024 804 80 80 Un Pan RR &Id get 54s...1947 Registered 1947 2008 let & ref 4s Gold 434. 1967 lit & ref Ss 2008 1968 40-year 45 Untd NJ RR & Can gen 4,1944 Vandalia consol 9 4s Consol 4s series B 1957 Vera Cruz & P 2511t1118t 4;0'34 1936 Va Mid General Ss Va & Southwest Ist gu 55_2003 1958 1st consol 50.yr Ss VirginianRy 50-yr ser A 5.1962 1962 lit mtge 4Sis ser B 1939 Wabash 1st a 55 1939 3d gold Ss 1941 Oct & Ch Ex 1st g Ss . Des Moines Di• 1st g 4s 1939 Omaha Div 1st g 3%3_1941 Tel & Chicago Div 1st g 4s'41 Wabash Ry ref &gen512s"A"'75 1976 Ref & gen 53 "B" Rey & gen 43-4s C 1979 1980 Ref & gen 54 series D 98% 10034 39418 1008 9418 9714 9034 9512 392 98 98 99% 97,2 9722 ----------------937 39613 8114 8534 78 88 87ss 9312 8312 9212 8018 88 87 95 8012 95 79 8412 375 82 278 9014 97 103 9514 99 10228 10534 99 10512 95 100 7512 86 694 76 8012 86 7223 861s 74 78 100 100 100 10012 -------- 96 967 ---- --ii4 -2-12 ----------------122 80 92 92 84 85 90 92 60 65 65 --------69 69 3835 3612 42 3724 46 41 48 9113 9614 85 9614 84 91 84 78 8712 89 8922 8912 78 78 50 6122 43 52 6578 57 62 40 45 40 4012 33 4012 43 lii-2 35 35 33 37 55 55 534 734 512 8 75 4 43. 778 113 80 60 47 87 8022 52 3714 9812 10014 99% 10112 9514 101% 96 98 --------98 99 85 9312 91% 9312 84 9312 84 9314 92 94 9114 94 103 107 10558 10714 9934 1067 7878 84 8412 38922 8314 88 9814 10012 101 10122 9712 101 122 5 328 5 85 --------95 98 75 80 8018 72 80 6224 62 69 62 70 9622 9478 98% 9734 101 85 ____ _ 90 9424 72 75 85 6812 -73 57 70 4578 53 53 3i2 -3-12 96 99 85 85 64 6824 9912 10114 9322 9414 77 8118 61 664 ar4 6 2% ----------------------------------------78 ----------------------------------------47-78 4738 50 32 42 46 41 _ 2712 35 32 32 ____ 47 33 35 55 55 ----------------56 41 43 43 --------41 --73 16 20 32 1413 20 9 614 9 20 618 9 6 193 2012 32 20 1012 14 612 912 9 7 622 712 6 14 20 20 3222 20 3778 604 924 9,4 15 618 722 6 14 85* 16 6 21 1934 2112 32 778 678 734 614 9 3 Deferred delivery. c Cash sale. * Negotiability Impaired by maturity ii2 Is; 84% 7018 4724 8624 85 5012 3512 9714 100 94 95 386 8912 388 9134 100 104 82 8724 9818 9812 il8 9934 9934 76 76 64 677 94 101 9212 9312 67 7712 48 6112 987810124 39112 99 88 9234 92 88 10218 10534 804 8478 100 101 94 10012 9914 9914 8012 8922 81 8812 99 1034 7658 8378 100 10178 9734 1001 2 95 97 8524 90 84 90 10113 10314 79 84 100 101 -------- --- - ----134 13 ; 9812 98% 91 100 92 9814 61 -66 964 10122 88 9314 621 4 6722 50 5224 55 89 8412 573 60 -6-058 9722 87 6438 5812 55 66 9412 1003s 6012 16 4912 5514 -76 --------7212 7212 70 70,4 50 --------55 55 --------53- -Ei" 38 39 . 39., 3934 39 3314 40 46 46 ' 63 " 56 ------------------------53 1222 1512 1278 18 2712 1334 21 i 1234 20 12 20 2112 12 2818 14 1412 1234 18% 12 201 1 12 1212 21 28 15 1234 1818 12 20 21 12 277 13 147s 1212 181 2 Volume 138 Financial Chronicle 89 1933—Continued. BONDS January February March May Aprii June July August September November December October Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Wash Cent Ry lit g 4s____1948 Wash Term 1st gu 3Ms__1945 lit guar 40-year 42 1945 West Maryland 1st g 4s 1952 1st & ref 534s A 1977 West NY & Penn 1st g 5s-1937 General e 42 1943 Western Pacific RR 1st 5s A '46 West Shore 1st 4s gu 2361 Registered 2361 Wheel &L E ref 4 Ms ser A_I966 Refunding 50 series B 1966 Wh & L E RR 1st con e 448_1949 Wilk & East 1st gu a 582_1942 ____ ____*5138 52 8712 89 90 91 90 90 87 87 87 90 8714 90 --------911 9214 --------88 924 86 86 90 90 92% 9412 9012 95 ----------------9312 53 64 5818 64 57 6112 55 60 60 7012 6712 70 65 74 6914 7234 6514 7214 6714 7038 6112 6814 66 7212 52 67 60 6712 57 63% 59 64 63 78 76 79 78 8412 80 84 78 8312 7612 7914 66 7734 71 8018 31011210134 101 10212 9914 101 9914 10012 29978 10134 10114 103 a1011210284 310118 10318 39912210212 10112 10338 100 10314 101 10234 8312 844 8514 8514 80 8212 93 38612 90 80 --------793 85 8212 85 88 88 85 87'z 78 85 80 8212 24 2932 22 2834 2334 267 2012 297 2714 29 3612 4413 43 58 31 51 36 4212 33 381 28 3312 3114 38 70 75 7314 778 72 7434 67 7212 269 7812 77 79% 7812 8512 83 8512 78 8512 797 8214 66 80 68 73 6414 70 70 74 ____ ____ ____ ____ 6478 72 70 73 73 80 --------79 7912 74% 75 6312 7338 63 6613 70 71 69 69 --------65 70 70 7612 7612 81 81 8312 8212 84 8318 8312 82 83'z 83 85 -75 80 ----------------6212 6412 --------81 81 6518 65% ____ ____ ____ __ .8218 8212 82 84 83 8412 72 76 75 79 70 75 70% 7138 7234 7814 80 8312 83 8634 868 89 88 91 8714 9Olz 84 84 8412 86% 2114 24 2114 2114 21 25 3112 3514 45 21 18% 24 42 44 38 42 35 40 33 36 33 3714 36 40 Winston-Salem S B 1st 46_1960 88 90 88% 90 80 80 79 80 76% 80 8134 8912 88 9012 89 92 8514 88682 285 38514 282 87 8534 8712 Wisconsin Cent let gen g 48'49 10 12 934 1312 934 1034 834 1212 1112 1912 1512 19 18 2714 17 22 15 1812 15 1314 1114 15 167s 11 Sup & Dul Div 1st 42_1936 838 11 9 1012 10 104 6 7 8 147 1178 1438 13 2112 11 1838 11 12 814 1012 814 97 738 1014 MANUFAC. & INDUS. BONDS Abitibi Pow & Paper 1st 58.1953 Abraham & Straus deb 534.'43 with warrants Adams Express col tr g 45_1948 Adriatic Elec Co est 75___1952 Albany Pert Paper 6s 1948 Allegheny Corp coil tr 58_1944 Collateral & cony 5s 1949 Col & cony 52 1950 Allis-Chalmers Nog deb 58_1937 Alpine Montan Steel 1st 7s 1955 Amer Beet Sug cony deb 62 1935 Amer Chain Co deb 3 f 6s 1933 5-year 1st futile 65 .13 1614 .1234 1612 .1112 1614 .1034 13 *134 21 8813 61 92 2812 2512 31912 812 7518 55 2614 5612 90,4 81 641 6018 93's 29412 30 2914 331 829 251 2112 15 938 7732 68 62 5514 3112 29 43 70 Amos Cyanamid deb 5s__1942 77 80 Amer & Foreign Power 5s 2030 30 39 Americas I deb 58 1953 57 6314 Amer I G Chem 5345w I_ _1949 76,4 8312 Amer Internet Corpconv5128'49 7318 81 Amer Mach & Fdi a I 6s_ __1939 10432 10518 Amer Metal 534% notes 1934 6614 74 Amer Smelt & Ref lit A 55_1947 Amer Sugar Ref 15-year 6•_1937 Amer Tel & Tel cony 4s____1936 30-year coil trust 5s_1946 35-year •f deb 52 1960 20-year s f 534s 1943 Convertible deb Cis__ _1939 35-year deb 58 1965 Amer Type Founders deb 65.40 Amer Wet Wks & Elec col 58'34 Deb g 6s ser A 1975 Am Writ Paper 1st 60 1947 Angto-Chil Nitrate s f deb 7s'45 Armour & Co 1st 434s 1939 Armour & Co(Del) 1st 5142,1'43 Armstrong Cork Cony deb 5.40 Associated 011 6% notes_1935 Atl Gulf & W I SS L col tr 52'59 Atlantic Ref deb a 55 1937 Baldwin Loc Wks 1st a 1 5s_1940 Batavlan Petro deb 4 Ms 1942 Belding-Heminway 6. 1936 Bell Tel of Pa 1st & ref 548._1948 1st & ref Is A &0 1960 Beneficial Indus L'n deb 621946 Berlin City Elec Co 6 Ms 1951 Deb • I 634s 1959 Debenture 6s 1955 Berlin Elec Eiev 1st 6;0_1956 Beth Steel 1st & ref 5s ser A '42 Purchase money 5s 1936 tone & Bing deb 6548 1950 Botany Coosa! Mills 6 Ms_1934 Certificates of deposit Bowman-Biltmore Hotels 7s'34 80 882 8012 5438 60 5312 94 0434 96 29 33 2412 29 35 2634 21 2612 1934 5 1234 712 68 6914 65 53 57 5318 3303 351k 3512 4514 50 .38 *1912 2514 *24 3314 .2134 2614 .22 2612 *21 2434 '1834 24 .1532 20,2 Illi 91 9514 61 66 95 100 51 5812 50 56 44 49,4 23 31 88 9114 5338 5412 7014 73 89 8612 9012 90 94 94 9614 9312 96 91 99 95 98 87 96 63 63 6778 68 71 6912 73 70 72 68 70 65 6712 64 66 99 99 10118:102c106 898 110 210912 11034 111 11412 95'4100's 9734 10014 31 30 4018 40 4612 4612 5612 5112 5318 52 55 55 51 51 55 3512 3412 4912 4734 6112 5514 69 6012 66 54 64 51 62 4734 56 28 28 4414 43 5712 50 60 54 60 45 5514 4112 51 41 46 1238 107 1912 1812 30 28 49 35 4372 25 3912 244 3312 26 2938 7612 77 85 84 90 89 941 87% 9312 854 9114 83% 8734 86 88 5412 55 351 55 55 5115 53 50 5138 25012 54 5212 5612 50 5534 55 55 367 6612 724 71 82 78 85 80 8012 75 79 74 71 49 .50 7014 .62 70 .68 88 "80 8812 *82 97 .95 99 .99 99 7413 77, 70,2 78,2 75 79 8312 90 38 4814 2712 3634 2614 36 2352 41 5438 59 54 56 5234 5678 52 72 6912 81 70 82 68 78 64 75 71 7818 68 7314 6612 75 74 78 10312 105 103 103 103 104 103 103 63 7312 6412 69 60 7712 77 91 8978 9434 4678 5813 65 70 79 8414 76 80 10214 105 84 90 8934 9282 9214 941. 917 9434 88 90 87 9118 44 561 4534 5012 34 4834 3414 4214 37 43 66 7112 69 71 69 7O'z 698 7112 65 67 843 89 8312 88 37734 8712 8434 871 7612 86 8014 8638 76% 81 71 79 7114 731 6812 72 103 104 103 106 10412 l03's 105 10618 103 10612 88% 9434 8718 94 9212 971 9412 9934 967 98 88 95 32 3918 64 68 8212 85 65 70 103 103 9714 99 8378 87 9514 9814 9612 100 78 86,2 7818 85 81,3 91,8 90 96 98 100 9712 100 98 10014 92 1004 95 100 10472 10534 10212 10512 10232 10518 10234 105 103 10512 10412 10514 10412 106 10412 10612 10434 10534 104 105 1021210412 10358106 14 10214 10312 10018 10312 39918 101% 39612 10118 98 102 21011110312 102,8 10312 3102188105 21003810258 10112c104 101 10212 10078 31053410712 31021210634 10038 10438 100 104 10114 19478 10312 10632 105 1064 10614 10712 10438 10712 10514 107'8 10112 106 10314 10213 10614 3105 10712 994 10514 9812 10312 93 1001 97 10214 10034 104,4 10312 106 103%10518 10034 1041 10312 10552 10172 10434 10212 10378 107 10913 31033410812 21028g106 9912 104 101%10614 105 10738 107 10834 107 10812 103 108 10612 1077s 104 10718 105 10612 210534107 10012 10714 100 10412 99 103 39934 107 1065 110,4 110%119 115 117 11134 11714 110 114 10672 112 105 110 10478 10714 99 105 98 10252 9212 1004 96% 102 10014 104 10312 105 103%105 100 10438 10332 10552 10132 10434 102 10312 35 4433 37 4412 37 4012 35 55 52 62 55 62 62 67 5512 65 52 53 30 47 2614 23 2412 21 92 9638 84 9618 80 87 9114 9532 93 98 744 80 76 92 9412 97 9412 97 9532 98'i 88 971 88 9772 6538 7214 5814 6712 5534 6478 49 61 60 7912 7638 81 7812 8918 8012 8212 73 8118 6612 70 58 66 5812 67 3012 37 33 34 2714 32 32214 28 25 239 37 45% 4312 5618 45 535 45 54 477o 377 40 41 36 3912 314 5% 212 34 21 212 218 414 412 13 8 11 718 144 6% 10 412 7% 412 7 4% 6's 314 5,2 7713 7712 817 8014 77 801j 79% 81 7934 87 8514 9012 87 9234 8834 92 87% 8934 87 8912 75 86 8312 89 7115 74 7112 75 7114 76 7334 78's 7618 8438 8212 8812 88 90 85 8914 8012 86 80 85 74 83 8012 8412 7512 7818 76 7733 65 7512 66 7034 71 7912 78 85 85 93 92 93 9218 9333 88% 9412 8934 9212 89 90 10234 10318 103 10332 10112 10314 10238 1027s 10235 103 10234 10314 10238 10314 102%10314 10312 10418 103 10412 10212 103 810214103 35 41 36 4312 36 37 36 42 41 5012 50 57 57 68 58 6412 5212 6012 5112 55 5212 56 5112 54% 10112 10284 9834 10314 97 101 97%100 98 10134 10112 10314 10238104 103 10434 101% 104 10234 10438 101 104 10112 ion 92% 95 90 93 85 89 794 882 86 92 92 98 98% 104 100 102 100 10112 10014 101 9812 1007 8 9913 100 93 943 9014 9233 90,2 9412 9334 957 9438 9618 9433 9512 94% MO 98 99 9612 10218 97%10138 *9634190 100 104 --- --- 8712 87% --------83 8712 s90 390 90 92 95 95 963 98 --------98 9812 991 100 29912 39912 10712 111 10334 10814 103 10512 101 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812 814 194 1412 20 1912 2712 1714 22 14 17 10 1412 12 12 32 1018 1212 5 512 41a 41 ---- ----6 6 638 14 1314 1614 164 2012 15 187 14% 1482 12 12 --------10 112 B'y & 7th Av 1st con g 5s_ .1943 214 214 Certificates of deposit 1 184 Bklyn City RR 1st 5s__1916-'41 6512 74 Brooklyn Edison gen 5s__ _1949 106 108 Can mtge 5s E 1952 106 108 Bkiyn-Man Tr sec•f6• 1968 9012 96 Skint Un El 1st g4-5s 1950 Bklyn Un Gas Collet ext g 5845 1st lien & ref 6s A 1947 Cony deb 5142 1936 Convertible dabs 52 1950 1st lien ref 53 B 1957 Buff Can Elea 415• ser -II" 1981 Bush Terminal 1st 42 1952 Consol 52 1955 Bush Term Bldg.stpd 1st 5s'60 By-Prod Coke 1st 534. A1945 89,4 6218 97 324 37 284 14 76 59 3213 52 214 37 112 212 71 75 10334 107 103 107 85 9434 2 214 ____ ____ 2 218 214 378 69 75% 6958 70 10112 105 10034 10414 10112 10512 100 10372 8414 92 86 9014 412 712 7 10 713 913 312 77 366 724 7133 74 10112 10612 104,4 106% 10114 10614 10418 107 87 91 90 9413 812 11 9 10 6812 74 166 108 10514 10714 93 9534 98 10 5933 938 *9% 938 *952 933 914 10 10 10--7234 76 7114 74 74 75 74 75 70 75 10518 10738 10434 10612 10512 1073 103 10612 104%106,4 10514 10612 10472 10684 10512 107 10212 106 104 10738 94 9582 87 9434 8912 9312 8638 91 8612 94 83 87 83 86 7912 82 75 8012 78 8112 8012 8278 8212 8412 8314 8412 74 8412 7212 78 76 78 11012 112 10614 11114 102%107 101%107 1023 10814 107 10918 109 110 109 110 10532 11014 10712 78l2 75 10914 105 10812 10312 10712 11618 11712 11634 11634 108 10812 10912 110 11078 11112 10434 11232 3114% 31144 11312 115 11412 1154 111 1143 111 s 10514 10612 108% 158 158 9912 103% 99 10014 93 9912 94 10212 1007 10238 10134 10234 10218 10314 97 101 10212 105 95 9914 93 9718 95 98 10558 107 101 810734 9812 10412 9733103', 100 104 10314 10512 10532 10714 105 10612 102 106 103%107 10012 1044 101%10478 10414 10512 99 105 99 101% 98 100 9712 1023t 10012 102 10134 103% 10314 10434 10052 10334 10012 103 96,2 100 34 97 10014 6712 67% --------48 5312 42 50 4912 50 46 4912 44 50 44 44 42 4514 39 44 4378 45 4314 45 27 3314 1712 2612 1712 2312 5 15 137 18 17 30 18 2414 14 1712 1214 1612 10% 15 11% 1514 1038 151s 47 8412 3014 48 30 40 19 36 3612 42 38 4912 43,4 50 3914 44 31 403 4 35 40 33 453 4 45 53 43 45 4012 46 37 c45 37 51 51 66 661s 747 64 7212 65 66 59 63 56 608 54 58 5512 63 Calif Gas & E unit & ref 5.1937 10534 10634 104 10612 100 105 102 103 102 10338 103%1054 105 10512 105%1053 4 10438 10612 10412 10512 1023 s10512 10212 10312 Calif Pack cony deb 5s 1940 64 267 64 65% 6284 70 6714 7712 377 86 8412 88 9212 91 88 9172 9018 91% 88 9032 85 87% 86 88 Calif Petrol con•deb•f 55.1939 294 9412 85 9314 ---- ---- 881 8112 81 12 87 86 9112 92 96 9414 9512 95 39712 9612 968 9658 994 9638 9612 Con,dabs I 534. 1938 95 96 85 9514 383 90 384 8512 86 891 91 9412 9414 29858 98 100 9912 100 9912 1004 9912 100 99,8 9958 14 Camaguey Sugar 1st 72 c d-1942 -------14 --------38 52 ---- - - - - 10 1312 11 1212 534 6 332 53 312 4 314 312 l's 3 Canada S S Lines 1st 65_1941 15 23 1114 15,4 1034 14 13 171 2018 2412 20 2212 22 27 1912 82312 16 1914 1632 1714 17 1734 1412 1612 Central Dist Tel 1st 52...... 1943 10678 108 10212 107 102 124 10234 105 103 10412 105 105 106 Cent Mud G & E 5s----Jan 1957 10512107 104 10614 100 105 101 10312 102 10418 10333106 10512 107 104 107 105 106 10614 107 1033310633 104 10412 106 105 105% 104 10512 10432 10512 10018 1068 103 104 Cent III Elec & Gas 1st 52 1951 70 75 64 7272 6152 65 50 56 5078 63 6034 68 58 644 53 5712 48 54 49 5414 43 52 437 4732 Central Steel 1st •1 8...l941 8412 93 86 8712 71 86 7012 79 80 95 94 101 100 102 101 103 103 10434 104 105 10114 103 10014 100 ,2 Certain-teed Prod 554. A 1948 3534 3912 2634 38 3(13 37 514 4954 5712 50 26 32 26 567 51 523 43 52 42 4634 44 49 4 737 3 838 55 Cheaa'ke Corp con 155 May 5 .47 65 64 75 6312 7212 6412 77 76 8514 84 9334 96 10812 100 110 9512 10712 9434 10012 9434 98% 94 97 Chic Gas L & C lit gm)55-1937 105 105% 100 1057,100 103 97 10212 100 10212 102 103% 1034 10512 103 10378 100 103 100 103 98 10178 97 9812 Chicago Rys 1st 5s stpd— Aug 1 '32 20% part paid____ .56 5712 .50 55 .49 52 .4912 531 '5212 5872 .60 6212 .6134 70 "6012 61 .58 59% *___ ____ .4612 51% .4234 4812 Childs Co deb Si 1943 34 3934 29 3952 28 34 25 38 3812 4612 437 51 45 5512 46 50 35 4758 3112 38 30,4 34 311 404 35 4212 28 46 Chill Copper Co deb 55.__ 1947 3414 44 27 401 4012 577 577 69 6212 7134 64% 6712 61 674 46 61 5012 5412 51 5784 Cin Gas & Elec lit mtge 421968 9814 100 9818 9938 91 9734 904 94, 9114 9618 9514 977 9612 9812 98 9878 95 9812 9214 9614 8778 934 89 92 Colon Oil 6s con. debs 1938 37 84212 3434 3612 .232 41 3412 377k 32 4612 43 56 56 67 674 70 645s 71 66 70 68 70 6812 70 Colorado Fuel & I gen s f 521943 42 47 40 4412 37 3914 36 43 4434 63 59 67 57 6818 3312 45 37 41 35 40 33 3812 2612 3514 Colorado Indus 1st coil tr Is'34 27 3012 23 26 19% 2212 20 30 29 45 33 45 3434 58 24 35 2312 29 17 2734 1734 2312 1552 21 Columbia C. & E deb 5s_._ 1952 8412 8938 72 8514 6712 81 66 75 74 8514 81% 87 824 8714 82 8518 72 82 71 7618 5912 70 63 71 Debenture 5s April 15 1952 84 89 75 8534 70 79 6812 741 7658 84,2 83 87% 8412 87 82 86 72 8212 7212 76 6014 70,2 64'4 7012 Deb 55 Jan 15 1961 8314 87% 72 8512 70 8112 6612 743g 7434 8414 8112 8612 81 86% 8012 848g 70,2 82 70 7412 58 69 6112 70% Columbus Ry p & 4, 00_1957 9512 9714 8518 96 8612 91 84 90 8434 92 90 2100 92 9512 9112 9512 8612 9312 87 90 7912 8812 78 80 Sec cony g 5Ms 1942 10412 106 99 210434 98 10214 98 1011, 9814 10314 9938 10234 101% 104% 10212310514 97 s97 102 93 10112 91 9312 Commercial Credit s I 6s-1934 99%100% 99%10314 98 10014 97 99'2 9914 101 10034 101 10034 102 10112 102 10034 1034 10112 10118 10112 10114 1024 101 10138 Coll tr s f 5M% notes_1935 9634 9834 98 100 97 9812 96 97 9612 9312 9718 9914 99 1004 100% 1015g 100.4 10118 101 10182 -- -- ---- ---- -Commci Invest T deb 5 Ms.1949 101 104% 1014 10114 100 10212 961221011 9534 10012 9914 10172 100 ,2 10212 10158 10412 99 104 10034 10334 9512 1034 99 101 Comput-Tab-Rec 30-Yr•f 65'41 107 1081g 107 107 107 107 104 1071 105 108 105 105 106 10712 10614 10612 106 1063 2 10534 10612 10514 10532 104722105'8 Conn Ry&Lt Ist&gen 00 1951 9934101% _______ 97 97 ____ ___ ____ ____ 29934 9934 95 9912 98 101 --------1001,101 8818 9838 ____ ____ Stamped guaranteed 101 10112 95 95 95 96 95 95 _--- - — ____ ___. 98% 10034 10014 102 99 10012 99 10012 895 100 963* 9812 Consol Hydro El Works of Upper Wuertemburg 7•_1956 62 66 5432 6514 4912 5632 3912 49% 355* 4114 3012 18 3512 45 37 4234 34 338 3672 4112 3614 46 43 50 Deferred delivery. e Cash sale. *Negotiability mpalred by maturity Jan. 6 1934 Financial Chronicle 90 1933—Continued. October November December July August September April May June March January February Low High Low High Low High Low High Low High Low High :ow High Low High Low High Low High Low High Low Mob BONDS 1412 181 1812 22 10412 10638 10034 1051 9612 991 89 97 96 102 10112 104 102 10318 98 10258 104 10534 103 1051 74 69 7453 68 53 5834 5212 5658 Consol Coal tat & ref 54_1950 Consol Gas(NY)deb 5)44-1945 1951 Deb gold 434s w 1 1957 Deb 5s Consum Gas Co 1st gu g 5s 1936 Consum Pr 1st 1 & unit 54 C'52 Container Corp 1st 64 1946 1943 15-year deb g 64 Copenhagen Telephone Feb 15 1954 16ml 4 f g 54 Corn Prod Ref 1st 25-yr s f 54'34 Crown Cork & Seal 1st 4 f 64'47 Crown-Willamette Pap_54 1951 Crown Zellerbach deb 64 1940 Cuba Cane Prod deb 6s___1950 Cuban.Domin Sug 1st 73s 1944 Stpd with purch wart attach Cumb`I'd T & T 1st & gen 54'37 7 834 618 9 :1051410714 s102381054 100 1017F 9313 101 31033810512 98 104 10334 10434 101 10534 10512 107 103 1057s 35 40 38 42 1634 20 1634 20 712 12 10018 10414 92 9734 9614 10214 10034 10212 100 10214 3612 39 1 712 2012 1018 1212 9812 1033 8712 9512 93 100 97 10218 99 10258 3612 62 1814 40 12 17 10034 10478 38934 97 9612 10134 974 1011 97 10412 60 74 50 54 231 16 104 1061 895 99 10011 1031 10034 102 10014 105 66 75 48 52 18 301 105 1063 9712 991 10218 104 10018 103 103%1043 6918 7614 51 6312 6812 7312 103 10412 87 0012 6112 64 42 44 534 514 65 68 6513 6934 101 10312 8101 10212 79 89 85 87 5612 5912 56 62 237 4014 36 47 *1 214 *138 614 68 70 10134 10312 8712 9834 6112 7612 4712 6412 .212 578 7018 78 10212 103 98 9972 77 8038 6412 s70 54 61s 75 791 7712 8014 10278 10312 10212 103 98%100 98 10012 81 88 84 8614 7178 70 87514 s70 *613 9 *414 13 Dela Pow & Lt let M 4)44 A971 1959 lit & ref 43. 1969 1st mtge 43s Denser Gas & El 1st & ref 54'51 Stamped as to Penne tat-Detroit Edison— 1949 Gen 8c ref 54 set A 1955 Gen & ref 54 ser B 1962 Series C Can & ref 4;44 ear ••D"_1961 Gen & ref 54 series E 1952 1940 Dodge Bros deb 6s Bold (Jacob) Pack 1st 64_1942 Donner Steel 1st & ref 74 AA '42 Duke-Price Power 1st 64 A_1966 Duquesne Light 1st 4 344_1967 1st mtge g 43-ft B 1957 lOO78 10134 95 99 00 10114 91 95 93 95 9912 10212 95 9612 10034 10134 93 100 92 96 101 10334 0018 103 0118 10312 9534 100 101 103 82 91 65 70 57 64 43 5314 1031z105,, 0512 10634 95 10212 90,4 98 97 9434 102 91 94 10112 91 298 90 8514 c99 85 9612 91 9334 102 7212 85 7134 8012 66 70 654 67 5918 60 57 69 457 5332 47 53 9914 10218 101 12 105 10334 107 10012 1034 6558 68 10338 10412 87 8918 56 61 39 4312 *1 218 134 358 0558 107 102 10612 100 104 101 10312 10114 105 94 9912 10014 9478 90 9418 9418 --------5934 . 95 9812 9912 9612 977 89 93 9512 88 95 90 9234 29634 88 95 98 9114 9912 9338 9338 12 19 10338 1051 9318 9615 99 102 9912 1011 10312 1051_ 69 71 4912 5634 6912 77 704 75 10012 10314 10112 10214 9934 10012 100 10012 8158 8434 75 8158 7012 7312 365 37112 *313 7 .212 412 11 12 99 104 88 931 93 993g 984 10134 98 105 68 71 51 54 7018 7312 6938 76 10118 1021 101 101 9612 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With stock purch warrants. 72 80 7514 78 7312 78 73 76 7634 82 744 7712 74 77 18 *1814 2012 .10 102,4 103 102 10358 11278 11314 113 113 39 4334 3118 4212 30 4238 3912 45 4 7714 7834 80 78, 7955 8112 8014 8312 82 83 Fedezal Lt & Trac tat 1 54_1942 1st lien 4 15* stamped_ 1942 Sat lien 4 f 64 stamped_ 1942 1954 30-year deb 64 ser B Federated metals at 7a._ 1939 Fiat deb 74 (with warr)-1946 1941 Fisk Rubber 1st at 84 Framerican Ind & Ord 73-4*'42 Francisco Sugar 1st 4 f 7344'42 6834 72 634 27012 62 6512 60 62 69 74 75 63 70 65 70% 68 7012 65 71 70 7312 70 644 71 6312 6312 59 62 6512 70 65 7053 67 7012 66 72 68 7238 69 7012 687 6912 68 7018 63,2 70 69 71 62 6214 5912 6353 11912 70 69 74 68 7712 70 7412 69 69 66 7114 6612 76 7512 764 74,8 7514 74 74 4414 4712 52 54 6312 5012 52'8 58 861 60 48 52 54 60 6912 6912 5534 60 5534 5812 5212 55 59 65 9918 994 101 100 101 100 10012 98 _-_- 9514 100 82 85 85 85 81 95 98 8134 814 90 924 93 9712 9914 994 100 59934 100,4 100 1004 '0014 10012 10038 C0012 94 97 93 9553 93,2 9552 9513 99 :983410058 9858 100 - '-. -• -• .50 54 '45 5278 .48 5512 .54 5912 .59 69 '64 76 '70 879 * 91-2 19 66 14.12 9823 97, 564 -fiii2 soi 1-0014 98 991. 9434 98 39. 100 10114 100 101 9553 9934 94 9812 97 102 15 23 15 19 23 15 50 40 50 52 12 1912 18 46 40 48 4412 501. 50 53 13 1514 1012 13 1943 Gannet Co deb 6s ser A Gas & El Bergen Co con 54 1949 Gelsenkirchen Mining 64_1934 Gen Amer Investors 54 A...1952 General Baking deb 8 1 5 Sy•'40 General Cable tat •t g 5344'47 General Elec deb 33-4a..1942 Gen Elec(Germany) 20-Yr 78'48 St deb 61,5 without wart'40 Sinking fund deb 64. —1948 80 78 80 _ _ ai -ii a ii4 "013-4 80 8112 7912 8114 9812 10112 98 10112 5034 5412 36 5358 100 1004 102 10214 55 6212 53 60 49 5713 4012 48 46 5572 8373 4612 1940 Gen Petrol lets f 54 Gen Pub Serv deb 534s__.,..1939 Gen Steel Castings 1st 541,1949 Gen Theatre Equip deb 64_1940 Certificates of deposits Good Hope Steel ik I sec 7.1945 Goodrich (14 F) Co lit 634.1947 1945 Convertible deb 64 Goodyear Tire & Rub lit 54'57 Gotham Silk Hosiery deb 64'36 1940 Gould Coupler late f 64 Gt Cons El Pow (Japan)74 1944 1950 1st & gen 4 f 6 344 Gulf States Steel deb 5 JO 1942 104 105 102 10414 80 8512 8012 8614 5718 36512 5612 66 .134 212 *112 2 1 2 1 2 594 65,8 5078 6018 774 80 6612 7912 4414 4934 83534 4612 7934 86 72 794 82 87 79 82 614 1012 1012 6 3834 4234 38 4318 3734 3234 3812 31 4712 5012 4212 4813 Hackensack Water lit 44_1952 Hansa SS Lines Os with war '39 Harpen Mining Co 6s w w..1949 Havana Elec Ry cons g 54_1952 1951 Deb 5344 ser of 1926 1934 Hoe (R) & Co let 63-4* Holland-Amer Line at 64_1947 Houston Oil skg rd 5Ks_1940 Hudson Coal 1st 4 f 54 A...1962 Hudson Co Gas 1st 11 54-1949 Humble Oil & Ref deb g 54-1937 9918 9934 98 99,4 9734 9814 97 981, 9512 98 9238 97 9712 9812 9514 9734 94 9358 9338 9534 9512 9612 98 95 374 47 35 3412 43 s3912 46 3412 3812 31 50 61 34612 4958 46 48 314 3512 30 34 33113 38 334 38 561g 62 49,4 6112 58 61, 52 59 583 62 4314 5218 39 45,2 44,2 5112 50 60 6512 7212 5734 6712 856 61 23 291. 26 3212 33 2414 27 28 -------- 18 24 . 3312 4014 38 40 23 2418 18 2418 24 82412 ...._ 8 688 8 612 638 7 712 9 10 9 4 314 378 10 10 913 -1-1-12 94 15 322 312 613 734 8 *25 2912 .284 31 2812 .24 2412 •2 0 2513 13 15 13 1614 2514 .25 28 .2414 1318 127s 20 1938 21 15 20 39 39 3418 3718 38 4178 4034 45 30,4 32 --------177 20 --------18 20 419 09 2358 24 29 30 61 6612 62 6712 63 67 66,4 71 12 65 72 65 73 46 70 614 68 4112 54 44 473 413 4612 38 49 39 43 38 49 5312 4534 5014 40 5014 4214 4178 64 28 334 27,2 33 32 35 28 34 33 3878 3712 45 10353101113 10155105 10312 104 10634 10818 103 10814 10158 10212 10154 10312 101:18 10312 10314 104tt 105 10738 106 10712 105 105 10278 104 10212 10334 1004103 10112 103 10112 103 103 10412 10278 104 10314 104 103 104 1033* 104 10178 10138 103 1037* Illinois Bell Telep Sat 54 A-1956 Illinois Steel deb 43-4. 1940 liseder Steel 6s lot ctfs w i 1948 Indiana Nat Gas & Oil ref 58'36 Inland Steel 4 f 4348 A__ 1978 1981 lit 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2414 3514 2438 30 40 30 31 4918 41 24612 4012 1413 10 11 15 2914 18 2612 1712 334 2113 3112 2028 3213 18 2912 18 85 75 78 80 85 --------83 81 80 841s 75 9912 10412 9912 10434 83 9412 303* 35 78 7334 81 101 10214 55 62 897 100 49 5112 47 504 4578 5015 40 65 66 36 34 3213 3112 46 4278 18 1612 3378 3214 3912 83812 364 39 84 83 83 82 82 824 574 5818 59 52 64 53 65 56 62 60 62 79 3774 434 4212 4234 4238 5512 5312 2914 28 414 4014 5134 4738 4478 427s 86 834 86 84 86 84 75 45 49344 59 37 4312 48 45 8534 854 85 84 59 5812 68 49 55 67 5934 9218 92 92S 81 4634 5012 6312 384 4514 5312 49 8734 8734 88 8214 51 54 65 4612 51 6034 5434 90 9012 90 75 36 37 5713 32 3712 42 40 8412 8514 8934 814 47 63 6358 4012 5014 5812 5234 8934 8934 8934 75 40,8 44 51 3114 37 44 40 85 85 86 80 74 81 79 4678 3914 4212 404 62 4318 45 42 59 47 5412 5212 3712 3512 397 3712 4412 3912 4314 4112 5134 4612 5312 5114 4678 42 4634 4312 81 87 8018 86 8612 --------82 87 --------82 84 5238 5212 63,4 4312 5378 644 5514 86 8812 86 6112 62 102 10312 10314 105 102 10414 10213 10378 97 10234 10112 104 1034 10412 10112 1041 101 10312 06 102 8112 8334 7034 8214 8512 92 85 8834 8012 88 1614 1818 1538 1838 134 164 1513 1834 15 16 1614 1734 14 14 15 13 1812 15 1378 17 4614 45 47 48 5212 4514 5112 44 48 61 36 45 4334 48 30 32 30 36 2912 37 3012 35 44 4612 48 5634 44 49 5358 6412 53 58 56 62 57 4012 4634 34 3812 32 4314 33 4112 41 68 75 72 76 72 76 7518 77 74 767e 75 79 56 26434 55 6212 5934 6814 673s 74 6312 67 72 8934 73 ---- — 71 7012 7212 75 75 ___ 6818 68,8 7012 7012 --------6478 65 674 69 ____ 103 10514 10514 1054 -------105 10512 1-0714 1051:108 10214 10412 101 10313 10278 10278 104 104 10514 10514 105 -- 11534 120 120 126 121 121 125 125 1264 130 128 130 130 130 118 12713 132 135 13118 133 7811 71 72 66 71 7358 7612 69 73 77 72 754 7114 75 6812 7212 70 75 7412 7614 7212 7712 ____105 10512 103 105 100 10134 103 10312 99 100 102 102 --------103 10312 10334 104, 104 106 104 104 ___ 11018 11018 --------8102 s102 --------11414 11412 11412 11412 ----------------110 114 11034 11334 ____ -95 --------77l2 771 87712 80 90 42 47 69 70 291 90 96 43 44 842 45 47 50 53 884 7578 67 721 68 73 3114 849 :3534 58 57 704 6712 784 74 8312 7014 80 584 6412 350 61 1834 124 1434 1012 133 10,4 13 1314 1314 1714 12 1314 1218 14 7 4 1312 10 1158 1034 1314 1012 1012 13 10334 10412 10334 10534 9178 95 28 414 76 '-14 16-1217 s553 16 7312 82 100 10234 5224 5718 97 100 4218 48,8 40 4434 38 45 9814 101 96 10014 82 87 184 33 9612 10018 9612 100 72 81 1658 2813 5 Negotiability impaired by maturity a Deferred delivery. a Cash sale. 66 751 7334 78 103 103 105 105 350 55 3812 50 83 85 8212 87 10018 1021: 101 1024 6712 7517 69 75 10134 102, 995310015 34 3514 835 45 2912 34t., 33 4278 304 39 29'8 31 9812 10134 994 10214 9612 10112 10034 10212 77 85 8412 88 1378 20 1434 20 62 62 80,8 4353 47% 5813 42 49 5812 537k 83 8214 8212 98 10012 97,4 10114 7154 78 1513 184 1312 1814 46 5212 48 52 70 75 7134 7134 104 104 1204 12118 70 75 10034 10312 10512 10678 80 83 73 82 1112 1312 91 Financial Chronicle Volume 138 1933—Continued. BONDS November December January February July August September October March April May June Low High Low High Low High Low High Low High Low HUM Low High Low High LOW High Low High Low High Low High Lack Steel let cons 58 ser A' 50 Laclede Gas L ref 1st g 55_1934 Col & ref 534s ser C 1953 Col & ref 530 ser "D"...1960 Lautaro Nitrate 65 w o w 1954 Lehigh C & N cons f 035 A '54 Con.. f 4."C" 1954 Lehigh Val Coat g 5s ctf dep '33 1934 1st & ref at 5s 1944 1st & ref at 55 1st & ref 5 f 55 1954 1964 1st & ref 55 1974 1st & ref 5 f 55 Sec 6% gold notes Liggett & Myers Tob 75_1944 58 1951 Loew's Inc deb 6s with war '41 1952 Lombard Elec lit 75 A 1944 Lorillard (P) 7s 55 1951 Louis. G & El 1st & ref 5s-1952 Lower Austria Hydro Elec Co— llet a f 645 1944 8238 90 604 60,4 234 88 87 96 6734 6612 5 90 80 80 83 89 5912 5912 3234 8814 88 86 9414 6512 64 313 8978 88 75 88 57 57 213 80 80 8478 90 62 61 4 85 81 7712 7918 48 4878 3234 7712 78 80 82 56 55 512 81 78 84 80 5012 507s 5 7912 7912 8912 9012 6314 60 1314 8512 7912 90 89 6112 5912 858 853 8614 45 48 62 8012 ____ ____ 45 45 50 50 55 561$ 32 43 2112 2318 20 25 24 31 21 2114 25 25 -------- 17 17 --------1612 20 30 30 29 4213 22 25 23 23 25 25 --------29 41 57 59 6612 6812 68/8 7059 6934 73 70 7234 12034 12612 11934 126 1177 125 12112 124 12118 126 12312 12534 10634 10959 103 110 102 10934 10514 10912 31051411014 10912 11012 67 8412 6412 68 48 6814 55 65 66 377 75 83 85 90 80 9014 7812 84 81 85 8112 871 8312 8734 11134 114 10614 11214 310212109 1081311114 107 1141 11014 114 9759 99 91 97 90 92 9112 97 93 991 99 103 10413 10614 9918 10514 9414 10178 954 984 96 10112 9934 10214 45 5818 49 5312 47 5034 4634 4712 42 48 McCrory Stores deb 54s_1941 29 62 29 3214 2259 30 24 41 2159 24 Proof of claim filed by owner_ ____ _______ ____ ____ _______ ____ ____ ___ 35 344 1514 .15 1512 15 2212.15 15 17 374 33 30 30 23 22 Mira Tr Co ctf of partic in A I Namm & Son 1st,f6s_1943 Marlon Steam Shovels ig 65'47 Market St Ry 1st 78 ser A 1940 Mead Corp 65 A 1945 Merldionale Elec 1st 75 A.1957 Metrop Edison 1st & ref 5s C'53 1st it 434* ser"D" 1968 46 2934 61 35 90 94 72 46 3714 69 40 94 99 8959 40 424 57 62 85 38 3734 5712 46 59 7012 57 72 70 75 42 41 537 5272 65 99,2 100 104 101 105 89% 84% 90 82 90 79 73 7934 78 82 70,4 1314 48 80 68 86 66 54 3 707 72, 1314 11 39 48 86 82 77 63 76 62 75 60 54 45 43 47 2713 364 63 7014 38 350 9114 94 9413 99 80 8912 Melt Wet Serv & Dr 530-1950 6518 7114 68 Met-West Side El (Chic) 4s1938 15 15 1312 wag Mill Mach 75 with warr'56 565s 674 5412 Midvale St & Ord cony s f 55'36 9313 95 8112 MB El Ry & Lt 1st & ref 5•B '61 7812 84 73 lit mtge gold 55 1971 7713 83 7212 Montana Pow let 5s ser A.1943 8134 86 714 Deb baser A 1962 55 61 55 Montecatini Min & Agr— Deb 75 without warr 1937 95 9812 96 Montreal Tram 1st & ref A 5541 8459 8614 81 Gen & ref 5 f58 ser A__1955 6612 6612 36418 7512 1312 67 9314 7912 784 8514 62 40 2514 61 30 98 85 7113 75 11 39 86 69 684 70 50 724 15 33312 8612 69 6713 69 50 95 10038 9434 91 60 6712 63/ 1 4 6512 818 1034 904 9114 90 91 9612 10134 97 9934 98 10012 82 8814 8314 9278 82 89 5113 6114 5314 56/ 1 4 50 55 5312 5658 48 55 5213 60 478 812 5 712 54 712 89 9112 88 89 84 87 9012 9012 --------86 8713 9612 8012 4634 46 434 7712 80 50 4734 24 .24 22 23 23 *24 2012 23 41 36 35 3212 314 31 4734 4813 49 4413 48 6312 53 34 *2418 30 2413 25 *25 2713 26 40 3634 3812 36 30 31 5018 47/ 1 4 53 4734 5212 5112 54 59 60% 6512 5612 8034 55 5912 55 81 57 60 2418 *174 1712.1514 153 *103s 134 .___ ____ *10% 35 15 18 ------------------------71 297 *18 18 .._ •1314 1514 *--- ---- *6,2 2712 --------1778 177 ---- ---- ---- ---- ---35 4212 3714 4412 39 4312 39 4312 38,8 41 3513 38 3612 40 4012 3812 40 3878 39 35 3312 3014 3014 27 31 3012 34 32 3212 2834 1012 1058 8,3 ---4413 39 33 70 75 52 5712 7014 757 6278 367 10234 11914 8978 93 81 85 7478 7612 75 79 1812 --------18 35 30 374 s32 9758 9334 927 98 77 8112 80 79 79 76 8012 80 81% 79 c8612 86 604 6514 6312 81 984 8412 534 53 614 804 804 76 7412 77 70 76 76 7012 76 708 71 4513 4912 4114 42 39 41 4113 4113 33 41 45 45 42 42 3113 34 35 39 39 40 36 45 3934 3934 32 35 39 3934 39 40 8113 8113 7558 7818 7818 7818 79 80 794 82 124 126 312212125 12212 125 117 12414 118 123 107%10918 108 110 10914 Ill 10412 11012 105 10714 8018 89 83 8812 83 8612 7934 8413 7912 868 7934 84 834 87 386 89 8814 904 88878 92 11612 11934 114 120 11414 118 118 120 111 1134 104 10559 100 10512 98%102 997 103 100 10112 1018 105 9614 103 95 10012 86 95 8633, 937 35 551 ----------------------------------------52 ____ ____ 4612 50 4612 61 47 47 54 59 5858 83 57 31 2313 ____ •13 5 6 7 .7 434 9 3734 33 31 30 25 22 554 3738 7538 5012 93 9712 90 9912 9714 70 69 1478 904 9014 64 70 385 55 41 55 39 50 73 75.8 12313 12618 103 11012 76 8334 7412 84 110 116 10234 10518 101 105 4612 48 McKesson & Rob deb 5345_1950 34 3912 2812 3712 2413 Menet' Sugar 1st at 73.5_1942 -------- 5 8 ____ Certificates of deposit------ ____ -___ ___- ---- 434 Stpd Oct.31 coup on— —1942 2 212 3 312 .312 Certificates of deposit _ -.3 312 34 34 434 Manhat Ry (N Y1 con it 45_1990 2914 3812 29 3712 2959 Certificates of deposit 2259 31 --------2973 2012 2212 1812 2d 45 2013 1759 23 48 3318 704 45 87 93 85 9413 91 61 63% 9 8934 8934 95 92 66 85 114 8812 89 66 66 --------63 6318 50 55 47 5212 4812 5212 67 7014 6514 6913 68 7212 6213 6514 6112 64 52 36218 109 12018 10712 116% 100 102 8812 94 93 95 88 90 77 8218 77 7814 80% 84 57 41 63 47 9212 8412 67 6212 48 66 53 99 8412 7712 50 41 674 51 914 7534 70 6218 46 6958 58 96 78 7612 74 1613 33634 9838 7634 76 85 7214 7712 1114 41 90 6334 6278 7734 5718 80 1114 42 9555 73 72 84 63 7712 11 45 9312 631g 624 77 5012 80, 8 1214 4612 9714 69 6859 8034 55 78 18 40 997 8718 85 93 78 7812 18 40 99'2 8112 81 93 75 7658 164 37 95 68 6712 79 60 81 1612 38 99 76% 74 90 6212 77 14 37 96 68 68 80 62 8014 1414 4059 98's 7412 74 8518 65 98 33714 941 9212 9618 943* 9734 87% 9812 8734 9314 9013 93'2 904 9413 9412 99 395 97 $9513 9738 94 92 943 9414 9935 95 9714 88 9312 894 911 91 8434 88 8212 8138 8234 7858 8412 85 85 --- __-_ -_-_ __-- ---- 70% 7412 7213 73 6434 ----------------5914 5914 6912 36934 37414 37414 Morris & Co 1st Si 430_1939 7878 81 88 . 9012 87% 88 8213 85 82 88 79 8059 ------ ----7913 8514 8459 8934 8713 9114 88 91 Murray Body 1st 634s 1934 75 80 9112 94 38812 90 --------83 8514 83 88 75 75 ---- ---- ____ ____ 69 81 81 86 89% 94 Mutual Fuel Gas 1st gu g 5s •47 105 10758 10214 104,4 99 104 9718 99 97 97 9459 96 --------9934 10018 10312 10312 10212 10212 10012 102 -Mutual Union Teleg 5s1941 --------75 75 ----------------85 85 85 85 9014 9014 9012 9314 89% 898 ____ _—_ 8912 8912 90 90 Namm(A Ugc Sons—see Mtrs Tr 55 52 5612 5113 55 Nassau Elec RR 1st g 45_1951 51 5313 5912 5213 5534 54 55,2 ---- ---56 59 53 55 54 5912 57 5858 55 59 National Acme 1st•f 65 —1942 53 54 --------54 54 6112 6114 ----------------70 70 ------------------------70 70 Nat Dairy Prod deb 5345_1948 Nat Steel 1st col 55. 1956 Newark Cons Gas cons 55 a '48 1960 NJ Pow & Lt 1st 434s Newberry (ii)Co 9345____1940 New Engl T & T 30-yr 55_ -1952 let 11 434s ser B 1961 New Orl Pub Seri, 1st 5s A.1952 let & ref 55 ser B 1955 NY Dock 50-yr g 45 1951 1938 Serial 5% gold notes NY Edison 1st & ref 6345 A '41 1st lien & ref 55 ser B 1944 1st lien & ref 5s ser C 1951 NY Gas El Lt H & Pr Co 5s '48 Purch money coil tr g 43_1949 74% 8212 9314 9512 84 9313 83 871 80 85 7714 83% 7818 837 7814 84 804 91 8234 8712 8613 9012 90 96 7478 8434 8312 8934 8812 95 7812 8112 7314 79% 69 77 93 9512 93 9514 89 9334 88 9114 85 904 8712 90,2 10512 10512 107 107 10212 1021 10212 10212 10212 10312 10312 10412 105 10613 10618 1068 105 107,4 104341053* 10112 1034 10312 103,2 8614 95 85 93 8012 91 7313 684 7313 8112 844 76 8418 73 79 69 76 82 8418 87 77 82 7912 85 75 79 83 87 854 89 67 73 65 75 8612 67 6712 77 878 83 8512 8818 8512 8834 8312 87 8212 88 10914 111% 103 11034 100 108 100 210612 102 10659 105 10712 10612 108 10712 10918 10518 108 107 10835 104% 107 105 10814 105 10712 9914 106 9612 1017 98,8 1015* 9713 102 1007s 10312 10238 1054 10313 1044 10218 1044 10213 10413 994 104 100%10112 58 6412 51 6012 45 56'2 4312 5112 52 59 41 4912 38 4412 5714 8418 52 5712 4712 5278 47 52 5712 82 5218 68 48 38 4334 5834 6412 5012 5912 46 '55'8 4414 51 53 47 5112 39 50 57 65 5014 59 58 63 4278 52 45 491 47 352 5318 6014 53 57 4113 48 42 46 5112 585 45 54 57 61 5078 5914 5759 63 32 3712 30 35 29 31 31 36 304 3213 30 39 26 30 3018 3958 38 4412 3912 4712 3912 4238 35 41 11359115 $1101211412 10634 1111 10712 III 107 112 110131121$ 111841135* 1123* 1137 ,109,8 11234 11018 11234 10818 112 10834 111 106 10838 10234 107 10218 10534 1014 10414 10184 1084 10514 107 105341071* 10513 108 10412 106,4 10512 1071: 10212 10612 104 10612 10618 10814 1024 10714 101 106 101 10458 10112 107 105 108% 10574 10712 105 10634 105 1065* 105 107 10234 106 1044 lows 111 11238 1075g 112% 104 108 10178 10634 10278 108 10612 109 10914 11112 10912 111 10712 1113 108% 111-59 1044 10834 1057s 1077 10118 103 994103 9813 100 39314 9914 9538 10014 9878 10212 1004 10212 100% 103 9812 10112 10014 1024 95 10038 9814 100 NY Rys Corp Inc 65__Jan 1965 Prior lien 6s ser A 1965 N Y & Rich Gas 1st 6s 1951 NY State Rye let cons Cis'62 Certificates of deposit 50-yr 1st con 634s, set B_1962 Certificates of deposit New York Steam 1st 25-yr 65'47 1st nage 5s 1951 1st m 5s 1956 NY Tel 1st & gen •1 4 3.45-1939 N Y Trap Rock lit 5 f 6s 1946 Niag Lock & Ont P 1st 55_1955 Niagara Share deb 5315_1950 Norddeutsche Lloyd (Bremen) 20-yr•16. 1947 No Am Cement 6)45 A w war'40 1961 North Amer Co deb S. No Amer Edison deb 55 ser A '57 Deb 5945 let B—Aug 15 1963 1969 Deb 55 series "C" No Ohio Tr & Light gen 65_1947 Northern States Pow 54 A.1941 1941 1st & ref 6s ser II Northwest Tel 1st 414s guar'34 Norwegian Hydro Elec 534.'57 % 13* 44 57 % 2 8 5 1014 93 1014 734 10 58 134 14 238 714 812 14 5 334 534 4 34 38 3312 38 32 4014 39 4214 42 60 62 654 6112 66 67 68 58 81 58 61 56 61 57 60 99121005* 96 994 97 98 1021210378 105 10514 100 1035* 99 99 9834 10112 1004101 101111045* 10418 105 1004 103 114 134 134 134 --------1 134 112 212 2 23 ____ ____ 113 112 ---- -------------------- 2 2 10712109 10214 108 101 10512 98 10514 10014 106 10534 10714 10212 10413 39734 104 94 100 90 97 93 10112 100 10134 10214 104 95 103 9412 9934 90 9518 9114 993* 984 102 10413 1057s 310013 106 9812 10314 399 10234 31001810338 10212 104 4912 6014 47 55 45 5014 3878 45 39 537 50 63 10113 105 100 10434 9914 10112 947 9914 95 101 00 1021 60 6912 55 72 55 64 53 60 55 67 55 6414 258 412 313 4 3 414 134 314 25* 258 234 3 3 412 234 359 105 10712 10514 10712 101 10713 104 10614 10012 10234 101 10212 96 103 993 10012 100 1011 10012 10112 95 10114 99 100 10314 105 1035*10434 10218 10434 10334 1044 48 56 56 63 57 674 60 65 9934 103 98 100 10012 103 10212 104 654 69 52 6714 5112 61 638 74 2 218 5312 60 42 55 347 475 31 40 11 2618 1018 1212 11 124 1258 15 7112 87 69 78 86 89 60 7112 7313 84 70 75 7858 87 6614 70 70 75 8014 898 7418 88 6134 69 7712 84% 7034 8112 68 73 57 65 10218 10714 9712 105 9712 10012 8312 93 102%104% 99 104 97 101 9112 9812 1053*10614 102 10612 100 103 98 101 --------90 90 --------86 86 6534 70 65 7118 6314 6812 67 74 2818 377 1314 22 67 8018 64 79 68 80 6114 75 88 975* 904 997 9912 10334 93 93 73 80 42 48 3314 42 39 43 25 26 1918 281 29 32 7914 844 8012 8534 75 81 76 827 374 80 37913 883 7718 80'z 79 8684 75 82 76 7213 78s 76 8214 68 93,8 10213 9812 1O3's 99 101's 985810234 100%1021 10014 1021 103 1044 10414 1057s 1044 1053i 93 93 --------97 97 7712 81'2 7512 77'z 7838 81 Ohio Public Ser. 730 ser A '46 1947 lot & ref Is ser 13 1944 Old Ben Coal 1st g 65 Ontario Power N F 1st 5s1943 Ontario Pow Serv 1st 5Y,4._1950 Ontario Transmission 5s-1945 Oslo Gas &El era•f g 54_1963 1941 Otis Steel 1st m 6s ser A 1939 Owens-Illinois Glass 5s 10013 10412 98 105 95 10012 90 95 100 104 98 10213 95 95 86 89 19 15 21 2312 15 15 14 17 99%10134 9312 100 95 97 95 97 69 7113 .67 6712 .6618 6914 *6114 6714 91 91 395 395 98 10014 93 99 67 6812 68 372 66 70 64 6812 15 2012 2413 94 2114 10 1412 2012 101 10158 99 10134 100 101 99 10112 90 9512 8612 93 15 27 935* 9712 ____ ____ 8978 95 7018 79 2078 38 99 103 9512 100 93 9812 20 33 94 99 _ ___ 9114 39313 79 8134 324 4412 10118 10113 Pacific Coast Co 1st 54....„1946 Pacific G & E gen & ref 55_1942 Pacific Pub Serv 5% g notes_'36 1937 55 Pacific Tel & Tel 1952 Ref m 5s, series A Pan-Am Pet (of Cal) cony 65'40 Certificates of deposit Paramount-Bway 1st 5 94.1951 Certificates of deposit Pars-Famous Lasky at 65.1947 Proof of claim filed by owner_ 32 32 2614 2834 2614 29 23 2913 29 34 3213 35 3312 38 37 37 ----------------3213 33 10414 10634 10114 10534 9914 10214 99410214 997 105 10314 105 1043 106 10434 107 10358 107 103.4 10513 100 10414 85 8812 85 8734 6812 7613 6813 7018 608 8314 6158 7734 7213 8014 7412 775* 67 7412 64 67 6818 8618 10578 10734 103 107 101 10313 101 10312 102 8106 10418 1054 105 10658 10518 10534 105 10534 105 106 10314 10534 10614 1083 104 1074 10112 1043 10012 104 101 10412 10314 10514 105 10814 107 10814 10618 10714 10614 10812 10414 1067s .28 3812 .251g 3634 *2818 327 *3012 37 .33 395* .35 3912 *2914 3938 .29% 3214 *3178 37 *30 35 *2912 33 304 3812 25 25 25 32 2812 3334 35 3878 3634 3814 28 3812 28 3012 330 36 2812 32 29 32 28 3734 298 36 25 3112 2512 33 2714 40 3634 c42 3013 37 2812 334 2859 30 3134 36 27 37 ____ ______ ____ ____ ____ ____ ____ ___ __-_ ______ 32 35 3412 38 34 3512 29 3112 2713 28 84 1678 6 1012 44 8 434 84 6 13 1234 17 1314 3212 ---- ---- ---- ---- ---- ---- -_-_ __— 31 *2913 34 .2813 35 *2258 29 ____ ____ ____ ____ ____ __ ____ ____ ____ ____ ____ ____ ____ ____ 31 96! 1014 94 981 1958 35 99 103 9513 s98 81 84 38 46 ---- ---- 9612 100 93 97 18 22 100 101% 39412 80 33 ---- 114 212 ____ ____ 14 258 98 10334 1001,106 90 100,4 9134 99 9113 993* 93 9813 10214 10434 102,2 1044 4834 51 4558 54 99 92 9414 91 51 58 48 55,S 38 4258 3912 4958 4212 4959 40 4534 1718 2018 2018 2518 23 2513 ---- ---65 76 66 72 614 6812 8312 6978 68 75 56 64 65 388 355 63 5918 67 58 65 65 702 65 70 59 69 54 6134 5814 6234 8018 66 9014 98 91 9314 78 94 747 83 9818 10038 97 100 89 985 8938 9234 101 1051 10118 10413 93 10234 94 99 964 9618 97 99 398123100 ---- -s72 777 7312 773 6859 75 873 7814 9112 9613 92 97l1 90 9459 86 9034 20 22 2018 2118 100 103 1014 10218 9712 9614 84 79 373* 2212 ---- --- 9718 82 3313 ---- 984 775* 24 ---- 90 95 83 94 18 20 102 104 90 78 18 101 9234 84 17 10218 9914 10012 1004 101 99 8113 68 37518 654 74,3 28 22 2512 20 2934 ---- ---- ---- ---- -31 31 98410359 -------1037s 10514 10514 106 *2518 2813 25 27 2834 3014 2858 3014 ____ -*2318 3018 ____ ____ ____ ____ ____ ____ ____ ____ ____ ___ .___ ____ 15 Certificates of deposit 13 30 341 30 3258 2812 331 2212 2812 23 30,3 Paramount Publia Corp 5145'50 1278 32 64 1614 8 12 638 934 534 934 74 1612 12 17 Proof of claim flied by owner_ ---___ ---- ---- --__ ____ ____ ____ ____ ____ ____ ____ ___. --__ 3018 35 *2913 3334 *2818 33 .2218 c2912.2312 3034 Certificates of deposit ____ ____ ____ --- - 834 834 712 10 Deferred delivery. c Cash sale. • Negotiability impaired by maturity 712 1013 10 1815 14 31 29 35 2734 3312 28 321 23 29 234 3012 Financial Chronicle Jan. 6 1934 1933—Continued. January Low High BONDS Park-Lexing 1st lease 65.45_1953 Certificates of deposit Parmelee Trans cony 68-1944 Paterson & Passaic G & E 5.'49 Pathe Exchange deb 781937 _ Penn Coll trust 3s series A.__1937 Gu 3;gs coll tr ctis II_ _1941 Guar g 3345 tr ctfs ser _1942 Cu g 3 Ms tr ctfs ser D__ _1944 Guar 4s series E 1952 Secured gold 44411 1963 Penn-Dixie Cement 6s A...1941 Penn Pow & Lt 1st m 4384_1981 People's Gas & Coke 1st 851943 Refunding g 58 1947 Phila Co ser 5s. series A-1967 Phila Elec Co 1st 4348 1967 1st & ref 48 1971 PhDs & Read C$I ref.f 58'73 Cony deb 65w I 1949 April ebruary May March June October August 'September November December July v High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low MO 1212 18 84 8 108 10 12 88 s12 15 15 3912 12 634 812 10 105 105 10512 10614 --------101 101 4712 6812 51 56 55 8014 5878 72 81112 12 1378 25 10112 104 62 75 10 1112 11 1312 13 13 972 972 8 9 812 822 9 914 30 35 2712 3412 29 29 82718 32 2312 30 24 27 1814 22 ____ _ _ 104 105 102 105 10312 10312 --------102 103 102 104 73 -78 75 87 80 80 75 82 80 85 8012 85 7314 80 ------------------------------------------------ 9434 9434 95 9514 _ — _ _ 9514 9514 -, -- ---78 78 ------------------------75 75% ___ --- 8152 8158 ------------------------8512 n--8512 85 -5-518 -----------------73 73 ------------------------8434 8434 --------834 8334 --------74 7 -7912 8232 --------------------------------78 80 8112 81 ---- -___ ____ _12 82 85 --------86 -----88 80 83 80 8312 80 83 - - -- _ _ 8012 8312 51 8412 8412 85 85 84 8412 8512 8412 8434 85 86 8512 98 7934 87 78 90 77 8212 75 -81- 78 88 86 8834 8814 95 87 92 82 8812 8252 87 9024 938 87 91 40 45 3412 45 4472 6514 60 70 6814 7534 71 38 41 38 46 55 6212 6018 67 5732 61 75 60 72 9312 9612 8412 94 80 91 76 85 93 8812 93 83 9012 8434 8772 7534 8558 7534 8314 7514 8858 87 827 91 111 114 11112 113 10712 11012 103 108 10532 10912 107 10834 10934 110 109 11014 10812 110 102 106 100 10514 100 10158 104 10722 10012 107 90 97 95 10112 9112 96 9634 100 100 104 10078 10378 93 101 90 95 80 9314 8128 85 68 74 6912 85 81 8512 85 91 86 90 7114 8912 7114 81 8112 86 7134 7634 6114 71 72 82 6212 6934 104 10512 10012 1044 99 102 97 101 0812 10212 10112 10314 103 10412 10414 10532 10234 10532 10224 10414 100 104 1007s 10272 98 100 9452 100 90 9412 9314 97% 9538 972g 9612 9852 9314 9814 944 9612 8938 95% 9072 94 931 9634 90 94 60 67 55 6612 54 5814 48 55 5212 5938 56 62 63 7478 6038 6418 53 6012 50 54 4858 53 4834 5312 40 49 35 4112 3412 42 3212 42 842 4814 46 6334 5134 6912 5612 60 45 5512 4112 4712 38 4314 3614 41 Phillips Petro deb 534s_ _1939 Pillsbury Fl Mills 20-yr 65_1943 Pirelli Co (Italy) cony 7s_ _1952 Pocahontas Con coll 1st 5s1957 Pt Arthur Can & Dock 6s A '53 lat mtge 6s series 13 1953 Pitt Gen lilac 1st 4;40 1960 151 5s 1935 Porto Rican Amer Tob 62_1942 Postal Tel & Cable 5s 1953 Pressed Steel Car cony 58_1933 PubSerEl &Gasistarref4yor67 1st & ref 434* 1970 lit & ref 4. 1971 Pure OH a t 434% notes-1937 530 a f g 1940 Purity Bakeries a t 5s____ 1948 Radlo-Keith-Orph part paidDebenture gold 65 1941 Remington Arms 1st 6s ser A 37 Rem-Rand deb 534s, W. W.1947 Republic 1 & S s 85. 1940 Ref & gen 534s set A war 1953 Revere Cop & Br 1st 6s July '48 Rhelnelbe Union 7s w wart1946 Rhine-Ruhr IN at Serv as. 1953 RhIne-Westphalia ElPow 78'50 Direct mtge g 68 .__1952 Cons mtge 6s ca.w 1----1953 Con m 6s of'30 with warr '55 7114 7534 6912 74 6718 75 68 7434 7412 8614 82 86 8414 9034 8652 88 8672 8912 87 9014 8812 9012 8914 9134 101 10312 100%104 95 100 98 104 10112 104 10214 107 10312 108 105 106 105 106 10334 106 10438 105 97 101 100 100 100 10034 9938 10012 10034 10034 3100 101 100, 8 10038 s10018 101 101 10212 10112 102 100 101 99,2 101 101 10112 60 60 60 60 60 69 --------6634 70 60 60 60 60 7014 7014 66 66 61 65 51 50 65 50 51 51 51 51 7012 6512 l 51 66 697 61 14 Wi 6212 69 69 73 70 _ -- -- _ _ 68 ----------------------------------------71 86 66 71 73 73 ----------------68 66 63 70 4 5512 68 5218 6312 4312 5212 52 597g 58 6412 6212 6812 57 6414 53 5812 4014 5312 3712 4512 3734 1338 9912 101 99 95 10118 94 10014 96 75 85 94 96 99 10024 9812 99 9812 8412 94 75 80% 99 9814 99 28 33 20 27 1958 31 2678 371s 33 62 18 20 2814 3512 2958 35 4112 5012 4014 4412 37 4112 3512 40 21 2812 20 2612 19 2512 161s 33 3852 5112 33 40 37 54 4314 57 4712 5434 4158 5234 38 4634 3834 43 .4218 5712 *4012 464 •3818 3918 *3514 40 *3852 47 *4612 59 *349 55 47 50 . 4958 5314 *55 65 *50 5712 850 5212 10318 10534 100 10412 9912 10112 97 10078 89712 10034 10034 10212 102 10412 10212 1057g 101, 9818 10184 9912 10212 8 103, 2 101 104 99 101 97 102 10334 105'8 100 10518 100 10178 9712 10022 9714 101 100 10234 102 10412 10212 105 10034 10314 101 104 8814 96 9834 10012 9614 100 9312 9714 91 9012 9334 9812 9934 9318 9914 9514 98 9534 9012 957a 9434 99 97 99 7618 7912 7412 7714 69 7434 6834 7318 7314 8512 7934 8512 87 92 89 9112 88 9112 90 93 8812 93 894 91% 74 7712 69 7414 6412 6914 5312 6812 8712 83 8712 8912 8432 89 8612 8812 8312 90 84 88 77 8212 82 89 62 67 57 64 79 80 79 8124 79 81 55 6212 60 6912 70 84 82 85 8214 86 83 8512 7832 84 Richfield 011 of Calif 68-1944 Certificates of deposit-Rims Steel let 8 f 7s 1955 Koch Gen & El 534.ser C-1948 Gen nage 434s series D I977 Gen mtge 5s series E 1962 Koch & Pitts C & 1 pur m 58 '46 Dutch 4s withwarr_1945 Ruhr Chemical 68 1948 3112 .23 27 *23 29 24 2958 *21 2812 .2312 25 •24 27 82112 2314 •23 26 *2512 31 527% 3234 •24 2314 27 3012 2114 27 22 2414 23 21 2538 1912 23 2414 29 2112 26 2512 32 26%33012 24 28 38 38 5212 5312 5338 5338 521s 56 3712 3918 39 41 45 5112 50 52 3924 41 44 4612 46 47 96 101 105 107 103 106 101 102 9612 101 102 105 103 104 10012 10412 103 10572 103 10514 10014 104 --------9914 9934 ------------------------ 8972 8072 ------------------------91 91 9014 9014 )2 1 0312 105,4 9912 104 98 102 97 10114 1 52 103 102 1372 9812 1027s 00 10152 8912 9934 --------------------------------05713 25712 T5.--_ _5_ -. il5alO ii N -g 8 5ar !-914 148 58 as 93 31 14 62 04 --_3 OAkls is 39% 45 3912 4234 33028 42 58 62 51 5912 4612 5112 38 49 3634 4118 3934 4712 34652 49 3934 44 10 6214 4512 78 39 5714 57 5114 69 60 85814 59% 19 66 53 83 53 82 661 5712 77 7012 7014 70 812 58 4612 73 31 56 4634 4234 63 52 48 4814 11 65 58 77 3818 56 575g 5012 6814 61 60 60 834 58 45 55 30 52 34 40 5612 3914 3714 3718 834 64% 5312 55 37 57 51 4834 62 55 54 53 833 65 84114 5612 3212 4934 32 28 50 3612 3514 35 1712 852 15 20 83 7412 100%91 62 54 54 65 68 70 85 86 5212 56 70 68 63 65 78 7012 4234 830 42 2812 2212 37 28 35 5812 47 5914 42 3218 42 31 45 4412 321s 41% 30% 44 32 41 33 2312 *2214 9814 9712 7012 6972 90 90 75 68% 80 81 3714 3314 3034 27 4972 53 41 3814 37 40 39% 38 30 9872 7712 92 76 87 41 38 5912 4512 4552 45 _ *___ 19 24 •___ 98 9912 9812 1-0-0-18 9812 75 7812 69 7812 66 8512 90 85 90 80 6412 7012 6378 75 68 80 8632 90 85 88 3412 35 3334 3973 31 2914 30 3532 25 30 5932 55 85914 5712 61 3814 4034 3434 4113 38 3634 4012 3534 4112 3814 3514 39% 3212 3714 377 ___ •_-93 -99 7012 63 82 8114 65% 6112 86 76 3812 3712 36 3158 65 64 4512 3912 4412 40 43 3952 -. •15 19 0414 7212 72 83 8478 66 68% 81 77 45,4 845 3958 42 6712 6114 5172 52 51 52 52 5178 18 97 79 86 75 8012 5634 4978 6812 57% 57'4 57 *20 24 1912 23% 5118 5512 100 10012 -,_ 90- -96- -- gii4 aRoyl ,. uo6 491 56 81J01ePh Lead deb 5%• 1941 48758 94 8334 86 81 87 85 9412 9412 9712 98 109 10714 11412 11128 11314 11112 11514 11114 116 112 115 1102 2 115 St Jos Ry L H & p 1st 58..1937 88 93 70 79 7012 73 90 90--77 84 - _ --78 84 79 80 80 80% 80 8712 8338 87 St L R Mtn & P Ist 5s stpd_1955 33 33 --------33 -37 3712 33 3078 -32 3112 40 40 40 -------- 40 42 40 42 45 50 45 50 St Paul City Ry Cable 541_1937 42 42 49 49 45 46 50 50 51 51 48 50 ----------------51 51 50 61 --------48 Guaranteed 58 1937 55 55 ----- 51 51 --------50 50 --------6024 61 -- - -- 52 52 7 San Anton Pub Serv 68 set A'52 8134 90 76 -81- 75 -7- 14 70 -76 7812 --92 78 78 7414 78 80 81 76 82 83 89 8852 91 86--90 Schulco Co gusts f614._ 1946 25 27 28 3112 29 35 30 30 48 50 36 36 40 41 ---- ---- ----- -77- --- -7-- --Stpd (July '33 coupon on)-------------------39 45 30 20 2612 27 34 50 33 40 2012 35 40 43 4012 1012 3612 -3112 35 -35 Guar.f 638s B 29 1940 28 28 28 35 35 35 45 45 50 50 40 40 4014 4014 40 40 ---------------,. Stamped --------35 40 48 40 58se 40 40 39 35 -,r40 - - --- --41% 40 Sharon Steel Hoop 1st 51ts 1948 17 36 35 39 35 If 35 28 35 43 28 48 20 20 1712 1712 18 24 41 54% 49 5634 4712 53 Shell Pipe Linea a 'deb 58-1952 7934 85 69 7612 71 9012 93 8612 92 86 901s 8632 90 7114 81 7614 76 84 82 85 4 86 9012 90 92 Shell Union Oils f deb 58-1947 7712 83 67 78 65 7312 6812 73% 7114 81 8714 90 7712 7972 7852 28912 8712 9034 9014 9214 8712 9112 8512 90 Deb 58 with warrants_ _1949 7718 8334 6812 79 6312 73 88 9034 90 9214 8734 9134 86 9014 87,4 90 79 89 72 80 78 80 6612 73 Shinyetsu El Pow 1st 634s_1952 3258 37,2 28 38 6034 6512 64 66 58 657s 6012 8512 59 6112 6014 61 5158 65 31 c3912 3834 4234 42 52 Shubert Th deb 68_June 1542 *54 112 *12 84 512 14 812 12— ------ --- --- ,,- -_- - -,,- rr- -z:r -," "7 -:- -z - -16)2 'piss 314 78-- -. Siemens & Betake•1 78-1935 9078 95 89% 93 71r4 -7-5 8412 89 878 80 -123 74 -75 75 -80 77 - -77 7312 -77% -75 -Deb •f 6388 5218 5814 54 58% 54 6012 1951 71 8212 68 8018 63 7058 51 6512 5212 62,2 49 5812 4614 5834 5712 6214 48 61 Sierra & S F Power 1st 56_1949 100 102 9812 9834 89 9672 89 9514 89 9554 88 92 99 10112 94 100% 92 96 892 97 9552 97% 97 100 Silesia Elec Corps f 63.4...1946 53 57 4512 5412 371 45 35,8 38 40% 4712 26 3214 3014 36 34 37 35 38 2612 37 30 37 27 32 Silesian-Am Corp coil tr 7.1941 36 4258 35 4258 33 3434 32 37 334 3952 37 411 2 33 37 3312 39 3312 40 33 4338 3412 4612 36 40 10212 102 10234 102 81bC1111r Cons Oil 1st 7s ser A'37 97,2100 2 101 10212 1023 4 1007 1023 4 101 10312 9838 101 91 9934 9014 983 10112 964 09 9512 98 1st lien coil 634s set B._1938 95 972 8934 9712 8812 952 627/1 95 9878 102 100,2 10112 100 10112 100 102 101 10214 101 10212 937 9638 98 99 Sint lair Cr Oil Purch 534• A '38 10112 10178-- ---- ------ ,- -,--- ---- --- ---- - - '''.7.7 ..r .. 7, ::: --- ---. --.-.' --.”” --'.. -Sinclair Pipe Line s f 5s 1942 103 10334 Mrs 1-633 102, 8 1-043 -3 -- --- .... •_ -, - .. 1024 I0312 - - 10314 10312 - 4 100 103 9922 10114 -103 10118 103 - - 10118 Skill) Oil deb 6lis.. 1939 6612 70 6112 67 62 70 69% 80 8312 8614 8358 8514 8358 -8-5 8332 8-4-34 5972 64 7612 8012 80 86 Smith (A 0)Corp tat 043_1933 100 10078 99 101 97 99 98 99% -- - - - -- --- Solvay Am Invest 54 7 "sii OiF4 - 8-12 55 iili1942 8818 92 .ii4 -9 . 8-84 90 92'2 51ill -if ii 17-22 oi "9112 9 104 -9-8-12 57 8718 9212 87 92 South Ben 1 & T V.,•f5O 1941 1061g 107 100 10638 10078 10434 99 1023 4 10018 10414 10334 106 105 10614 10484 106 104 106 10424 106 10312 10512 104 10578 10514 10738 104 1074 10438 10572 113011thw Hell Tel 1st & ref 5••54 106 10712 103 10672 100 108 100 10412 10114 1057k 10434 10334 10512 107 10534 107 10514 10634 Southern Colo Pow 1st 8. A '47 7712 81 6014 6512 7112 7812 64 7112 6034 67 6912 7634 6514 7112 62 6612 61 64 7212 77 59 75 70 76 Stand 001N J deb S. Li., 1546 10334 105 101 1047, 102 104 100 210458 10112 10412 10312 105 104 10514 10412 10512 10334 10522 104 10512 10214 10434 10334 105 Stand Oil of N y deb 4 gy..1951 9714 100 9134 9778 117 100 9924 102 101 10134 9712 10112 100 10112 96 101,8 9734 10012 9312 9712 8814 95 94 100 18 *12 1512 *14 22 Stevens Hotel 1st 6s ser A.1945 .13 16 1212 14 .1012 13 10 18 *1734 23 *19 25 .19 2812 *2012 27 .17 22 *15 39 *32 364 .3034 37% 2514 3478 32 43% *3518 4614 *3512 432 *3452 41 *31 Studebaker Corp 6% g notes'42 32 4418 3114 3734 2012 3412 2014 33 31 3518 3134 37 3172 38 3412 42 Certificates of deposit__.__ __ --- ---- --- ---- ---- --- ---- ---- ---- ---. ---- --__ 38 45 36 41 Sugar Est Oriente lit 8 1 7s'42 2 Certificates of deposit 1 4 Jai.,icTi" i05781109" 153 10318 Syracuse Ltg Co 1st g 5__ 1951 --- --- ielgT2 fili- ia- iii8.la- fcia— iiii- fthi" WC fir 165i411114 io0i4 119 65141-o- g3 -3.i., Tenn CI & RR gen 5s 1951 Tenn Copp & Chem deb 6s 1944 Tenn El Pow 1st & ref 66_1947 Texas Corp cony deb 511-1944 Third Ave 1st ref 46 1960 Ad)Inc 58 tax ex NY 1960 Third Ave RR 1st gold 58..1937 Tobacco Prod (NJ )634s..2022 Tollo Elec Pow 1st 7s 1955 Tokyo Elec Co1st m 6.5 series June 15 1953 Trenton Gas & Elec let 514_1949 Truax-Traer Coal cony 638s '43 Trumbull Steel let 8 f68_1940 Twenty-third St Ry imp 581962 Tyrol Hydro El Pr 1s1 7548 1955 Guar sec s f 78 1952 U.ligawa Elec Pow a f 78- - -1945 Union Elec L & P 510-Ref & ext 5s 1933 Gen rntge g 58 1957 Union El L & P (ill) 1st 5Yis 54 Union El Ry (Chic) 1st 5s_ _1945 Union 011 Cal 30-yr 6s. ser A May 1942 1935 1st Ben a 155. ser C Deb Si with warr--_Apr 1945 Unit Biscuit of Amer deb 68'42 Unit Drug recta for 25-yr 5s 1953 United Rya St List g 45_ 1934 U S Rubber 1st & ref 58 ser A'47 United Steamship 15-yr 68 1937 1951 lin Steel Wks 6348 A Series C without warrants__ 1947 Skil Id 61.48 ser A 10114 10414 52 837 9414 10014 8814 93 4018 45 22% 2734 88 90 947s 10034 48 5212 10212 10212 39812 100 50 5512 50 51 7812 8612 8534 95 8014 8934 7714 8512 3612 4512 36 4034 2058 2834 2034 2412 89 90 83 89 9314 102 89 98 4112 50 52 41 34/ 1 4 3872 ---- --21 -2314 5112 55 --_ __ 60 -6-218 860% 8214 42 50 30 4014 10618 10618 23 24 42 5214 ____ __ 55 -6-3 5512 80 37% 49% 97 9878 898 100 50 58 57 68 77 8412 72 81 80 883 84 9114 38 42 4012 48 22 24 23 2834 86 86 85 8734 9412 9712 93 9834 80 257 55 6134 33 2405g 3914 4412 43 5434 54 6134 0218 10612 104 104%10222 104 103 103 19 22 21512 2078 324 30 a29 40 39% 43 4112 5072 51% 7212 7212 8054 __ ---- - _ 15 15 —_ __ ____ 5912 -6-312 6034 -62-12 80 60 56 -8-0 55 6112 50 5814 57 5812 57% 61 38% 4772 4558 5412 5412 604 60 70 10112 1044 74 74 8212 8712 9312 97 50 55% 3012 37 92 9412 97 10014 7014 78 5712 -— 35 7912 25 537 4712 71 68 _ --48 8334 2512 56 51) 7712 104 10452 104 104,4 671g 72 86 70 7214 8412 87 77 9614 9712 9638 9912 4414 4912 49 51 28 3232 2434 29% 9112 9312 89 92 993810238 100,2 10232 7438 7828 7434 70 61% _ __ 38 75 28 55 48 7412 103 105 60 66 65 7112 96 9812 41 49 23 285 87 89,8 10018 10184 7612 8014 10312 10412 10372 10414 66 6812 65 70 55 6512 5412 6214 955* 9712 96 9784 38 4112 40 45 215* 2534 2212 2812 86 87 8514 8814 100%10134 100 102 7834 81 7812 8012 8412 5858 6234 59 6252 6232 667s 6338 65 102 102 1015*103 _ ___ 102% 105 --4 035 4412 38 40 35 363 3612 4012 -_---44 7212 7534 70 7512 8612 75 6722 75 80 28 ---- -- --- ---- ---- - -- ---- — 4512 -50 46 4712 46 48 4812 -50 55 ___ 46 4712 4512 4712 431 46 54 ____ 6918 722* 71 74 7152 75 70 -76 78 . 99 10334 ---- - 101 102 10052 101 10014 10012 9972 10018 -___ -- ----_- z-- ---- ---- ---- -7-7 , 8 10078 9422 -9-81g 94 10034 9434 1-61- _ _ _ - - _ 103 . 10i% 152 1-04-3-4 100 113-7g 100,4 1027s 94, 103 10412 98, 8 10414 9622 102 10312 10412 102 105 10012 102 100 104 100 10334 10112 1-03-32 102 10334 10314 10434 10114 104 102 1034 9914 102,4 100 10112 1714 — -- _ __ 18 ____ __—___ ____ 14% 1712 18 20 _____.____ ____ 20 20 __-- -- — --- ---- 17 18 10412 10534 10014 10034 8712 89 9634 100 59 70 ____ . _ 4212 -50-12 85 88 4914 6014 51 60 4814 5912 9934 10534 100 103 10034 10212 102 104 10312 105 106 107 10672 108 0878 10034 99 9912 9812 9912 9934 10012 100381001! 10012 10114 10114 10132 8912 927s 93 9732 9638 9714 7712 8312 83 91 77 88512 75 80 9534 9712 96 9912 100 102 10012 10212 10214 103 9734 9812 95% 98 54 844 43 6034 44 5938 5638 7112 59 7012 62% 694 62 69 21 15 15 21 15 18 18 16 16 1934 2012 2214 2214 14 34 4714 4838 6214 60 6812 644 75 653 6912 2934 43 2914 37 75 82 ____ - - 78 78 78% 81 -,-- 8518 90 390 91 2612 3712 82612 li 2818 3612 32 377 3314 -4734 29 39 37% 51 38 4812 3814 4714 3012 3724 2521 37 82558 3418 2828 3612 3312 3712 3312 26 3454 28 3512 4912 33 4712 29 37% 25 3614 2412 30 a Deterred delivery. c Cash sale. • Nego
@FedFRASER