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BUS, ADM.-
„.,{.,JJ8BARy
®?
iJUL 2;
ESTABLISHED 1S39
Reg. U. S. Pat. Otflc*
New
Number 4712
Volume 168
New Draft taw Financial
Writer
'
cites
handicaps
dents attending
stu-i
on
Of
college, Imposed
Holds whole defense program hysterical, endangering both our economic and
'
by draft law.
,
*)
Now that the new draft law has
been
Congress "and
passed ' by
signed by the President it is well
to consider the import of its terms
to
the
who
•
are
will
men'.who
young
f affected
be
by it, particularly those
present or prospective
college students. Students who are
recent
the
of
veterans
are
war
from the draft and pre¬
sumably will not be disturbed in
their studies, but young men who
exempt
and who
college course at
their own expense will find the
law extremely disruptive, to say
the least.
^
r:r,
Young men who were enrolled
1 in college before the law was
'! signed by the President are dei ierred until the end of the college
not in this category
are
♦are
taking
President, First National Bank in St. Louis
?
a
to
be drafted for 21 months' service.
this
service he will have attained the
age
he
of 23.
*
.
Will the 'Drafted' Student Want to
-
Studies?!
His College
Resume
after complete
At that age, and
disruption of his studies, it is even
1 doubtful that he will want to re¬
It
•
•
r
that
/
Fund's dictates and do not indicate impotency of Fund;
vIn recent months the International Monetary Fund has had to
handle some difficult problems posed by member countries.
For
example, there were the cases of Ecuador's new multiple rates of
exchange, Canada's subsidy to gold mining, and France's devalua<i>
:■
■> ■
excess
of
It
More Light Later
:
system
our
As a result, gov¬
policy took the shape of
planned campaign to decrease
production and to increase mone¬
tary
incomes.
Legislation
was
ernment
the
NRA,
t
businessmen
to
*An address
• •
get
of
purpose
the Annual
.
agricultural
to
:
together, for
by Mr. McDonnell
Convention of
the
universities,
page
•
our
intelligentsia and
our
1
5
umon$
'■
%'•'.
f
i
'
m
government.
Herbert M. Bratter
Camille Gutt
difficulty lies not-so much with obnoxious
in our midst as with the fuzzy-minded
i
tion of the franc
last January.
people who think we can have totalitarian economics ; Similar
problems are now being
in the hands of bureaucracy, and at the same time have
posed
by;, j Southern; Rhodesia's
recenti.y-announced plans to sub¬
personal liberty for the people and representative
sidize gold and by Colombia's de¬
government in the nation. 5
cision to give a favored rate of
"Their confused thinking convinces them that they ft
exchange to certain exports and
are liberals
but if they are liberals, they have lib- > to penalize different categories of
eralism without liberty.
imports by special taxation withNor are they middle-of-theroaders as they claim to be; they are a halfway house |
(Continued on page 24)
,
'
to totalitarianism."
.
t
These
eminently wise sentences are taken not from the
Republican platform, as one might expect at this time, but
Association, Hot
Springs, Ark., May 26, 1948. ^v..
on
4
mingling of
clieers
Arkansas Bankers
(Continued
■'
:
—
encourage
restricting indus-
European :
Mk. ' §(
communists
a
restrict
the
with
if
creeping totalitarianism. It has
"Our
correct
existing
production and, through such de¬
infected
germs from Karl Marx and Mussolini,
from, the communists. This collectivism
a
of
has slowly inserted its tentacles into our labor
maladjustments.
as
been
have
been
equi¬
more
the
to
also
v
%• iff
::
fever
fwith
that
of distribution
enacted
"We
We Hope
—
intermittent
erroneously
would
'.'V
<K;-<
was
assumed
Wm. A. McDonnell
.•
vv'V.
"
m?mi
iAV
de¬
mand..
table
^
in
continually in
a
and
(4) the Fiind, despite handicaps, has helped its members.
-f'
tion would be
at
Havana
to
-
faced
we
future
a
the
32)
,
id
s a
was
can
as
EDITORIAL
which produc¬
he, would still be obliged to join
an\ active reserve unit such as
on page
econom¬
that Fund members
or
they please; (3) premium gold markets for domestic transactions or subsidies for gold production are not necessarily contrary
do
•:
vices
\ (Continued
franc does not indicate defiance of Fund
.
turn to school to
finish his course.
But if he should desire to do so,
be¬
By HERBERT M. BRATTER
Spokesman of Monetary Fund,; in answering queries, declares:
(1) Fund has been able to adapt itself to present unsettled condi¬
tions and its activities have not been seriously hampered by defects
in its Articles of Agreement; < (2) action of France in devaluing
ically mature.
from
back
comes
have
come
v
When
'
^
The American economy has weathered fluctuations of extreme
magnitude during the past 20 years.
In the early 1930s our major
economic problem was presented as one of over-production, and
was often referred to as "starvation amid plenty."
The United States
.r,-.'> was supposed f
—
■—
•
year.
V
•
V Midwestern banker traces recent economic developments and con- '
tends, because of confusion and misunderstanding about major
economic problems, progress in industrial production is not as
great as presumed.
Cites inadequate supply of essential materials
and production shortages as indicating need for capital goods ex¬
pansion. Blames high taxes, excessive government spending and K
defective monetary policies for slow industrial capacity increase.
Says business boom continues, but "the picnic is just about over."
This means that the present
: college
students will not be called
up until about a year hence. But
■„ take the case of a young man who,
at 20, has just finished his first
year at college and is enrolled for a
I second year. After completing half
his college career, he is liable to
.
>
bywilliama.McDonnell*
^
financial system.
Copy
a
Gull of
Aspects
'
Price 30 Cents
York, N. Y., Thursday, July 1, 1948
(Continued
on page
28),
%
'
Stale and
1
26)
;
Municipal
STATE
Lithographing Go.
and
MUNICIPAL
Bonds
R. H. Johnson & Co.
Established,
BONDS
1927
,
^
'•
V-;>
INVESTMENT SECURITIES
.c
Hirsch & Co.
Members New York Stock
\"y
■
25 Broad
Chicago
Geneva
Troy
Albany
'Woonsocket
~
>
•
<.
■->'
THE NATIONAL CITY BANK
■?:!??!■:
Buffalo/,
/-<.;■
;
OF NEW YORK
Syracuse
j' V
.......
•
Washington, D. C.
'
.
i
■
i
•
J
N. Y. 5 '
»•
We have prepared a
Underwriters and
& Co.
Wires
(
NATIONAL BANK
;
Connect
Montreal
/, '<
/Wisconsin Power
CANADIAN
on
&
BONDS & STOCKS
Ltd., Inc.
j
Copy
upon
on
request-
.
,
Corporate Securities
OTIS & CO.
Gordon Graves & Co.
INSTITUTIONAL
30 Broad
INVESTMENTS
-">:
■v
Established
1899
cleveland
—
SUTRO BROS. & CO.
Est.
(Incorporated)
Street, New York 4, N. Y.
Tel. WHiteball 3-2840 ' Tele. NY 1-808
1
r--~
I
/.
Chicago
Denver
Columbus Toledo Buffalo
New York
Cincinnati
1
.
y."
*"
1896
Members New York Stock Exchange
Dominion Securities
Grporation
Telephone REctor 2-7340
/
.t
Members
and
40
Exchange Place, New York 5, N.lf.
111
New
other
Teletype NY 1-702-3
•
request
'
1
'
.<
>
.
Boston
York Stock Exchange,
Principal Exchanges
Broadway, N. Y. 6 '
WOrth 4-6000
Bell System
upon
4.1''
•
ira haupt &co.
120 Broadway, New York 5
—
"A'
t
Analysis
request
v
Information
Light Co.
common
T1!'
and
1
•;
Toronto
'
.--
\
The city of new York
of
New York
Distributors of Municipal
i
THE CHASE
.
HAnover 2-0980
Bell Teletype NY 1-395
Private
memorandum
Analyzed and Appraised
«
??::'■
Bond Dept. Teletype: NY 1-708
Philip Morris
.
Bond Department
.
'
Springfield Y
portfolios
.T■ '
HART SMITH & CO.
52 WILLIAM ST.,
Scranton
7.
"
:
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York 5
PHILADELPHIA
Harrisburg >
(Representative)
r-
>S'*<>••-
f,}!:
Wilkes-Barre
London
bank
\
'
BOSTON
Teletype NT 1-210
Cleveland
•'
;
>
Exchange
St., New York 4, N. Y.
■Anover 2-0600
'
64 Wall Street, New
and other Exchanges
1
'
'
Teletype ny 1-2708
Telephone:
Enterprise 1820
2
(2)
THE
.
Bird &
COMMERCIAL
Credit Policy
Son, Inc.*
Electric & Gas
*Nlemo
I
-
i,^
.
1
Broadway,
New York
Teletype
7-5fi<i0
NY
5
1-583
V
''
,.s',
our money
'y-'
have
Company
:%'!W.
additional
make
Prospectus
even
credit
Request
■'
120
BROADWAY, NEW YORK 5
Tel. REctor 2-7815
•
-V,
1
»'
1
to support
—
labor
establish
-
hour
and
wage
the
and
labar. cost of
interest
rates.
With
a
policy
materials/' of
American. business.
The heavy purchases of our gov¬
uf ! interest
these
Some
-
of
probably
through virtually
lar
Chicago Stock Exchange
in.
process
credit
all
of
-us
go
roughly simi-r
a
evaluating J
any
establishing any credit
including
using
every
known credit yardstick in moder¬
ate industrial
appraisal, but I am
or
policy,
Broadway, New York 6
Tele. NY 1-1610
_
sure
we very often end
up* in r
dilemma caused by. factors beyond
our jurisdiciion^ • I refer,
primar¬
J-/
O
"
'
i
"
'
'
you
reatj
recently issued
our
'
Circular No. 74
on
Winters&Crampton
y\y;v!:-!
Government's Life-and-Death
Control Over Industry
I have no illusion
Common Stock
•
.
-
New
*!\' i|
& Members
York
Security
Dealers
!
Ass'n
Teletype—NY 1-376-377-378
v
and-death
control
matter
a
over-
of
fact,
mercial, agricultural,
loan
j
of INDIA, LIMITED!
Bankers
.
to
the
Government
in
|
Kenya Colony and Uganda
.,
.
my
dis¬
Branches
in
Colony,
»
,
India, Burma, Ceylon, Kenya
Kericho, Kenya, and Aden
and Zanzibar > .:.
y
have
you
Subscribed Capital
Reserve
now
a
very
war
and
pur
as
The
Bank
conducts
every
description
banking and exchange business
of
port
for
every
t
t
real
also undertaken
Before
command
such
public sup¬
Federal
extreme
powersC Today
and
cold-war
potential,
our
controls,
extend
to
phase of American business,
raw
mate¬
!
<
,
rendered
danger.
including manpower,
Trusteeships and Executorships
foe
foreign policy swerp -not
to
actual ^or
£2,500,000
or consumer
the international situation
such
military
£4,000,000
£2,000,000
Capital
Fund
com?
almost uncollectible by an act of
While this has
been the trend since
1933, it is
governmental
Paid-Up
can
industry.
every
your government.
the
Head Office: 26, Bishopsgate,
London, E. C.
y
!
as
with
the
of
Remember
months
on
our
30)
page
That
stock
Curb
is
now
who
acted
how
have
that
the past two
ROYALTY CORP.?
listed
on
the
New
Exchange and shows
all
"We
to
Before
the
upon
our
another
of
an
address
we
low
'
'
*
Right ri,ow
chases
i are
;
•
Selling
around $1.50, 1947 net profits
750%
higher than previous year,
were
while current
and
for
pressure
-
^
-causin|;
;
each
Association,
Which
interest
set
In
I
pattern
World War
by
business.
the
interest rates of 3 ¥2
]
,
The
war.
Federal
attractive
to
4Y4%
Reserve
government.' This is
is.
already
high, makes ficial and; creates
working capital most inadequate" in
Federal
<
many
if:
the
over
reduced
has
1934,
pre-
instances.
steel
For
situation
loan
1940
except
valves,
j
Company
is
position
importantly
in
example,
Statement
-and; data available.
S. R. Melven & Co.
125 Cedar St., New York 6, N. Y.
WOrth 4-7786
>
Teletype NY 1 -570
Winters
could
&
gets
highly arti¬
Crampton
values
depend
-
on
-artificial
rather than natural elements.
simply must face the fact that
do not have
that
one
control
so
solely
In
and
free economy
another
the
on
under,
our
a
control leads to
and on,
on
these
normal
and
We
NEW
today;
another
control,
and
cannot rely
we
same credit factors
conditions^-T mean
credit factors.
a
individual loans good or bad,
and it is a pretty
tough job to .'de¬
our
government
controls
economy
demands from time
time, and to accurately forecast
national and foreign
policy in
hectic" national period we are
going through today.
1856
Stock Exchange
leading exchanges
Exchange Bldg."
N. Y.
YORK 4,
Bowling " Green "9i8420
CHICAGO
DETROIT!
■
PITTSBURGH
"
GENEVA,. SWITZERLAND
-
have
Quoted
—
York
other
N. Y. Cotton
The two policies
irreconcilable.
1
Today
Sold
Members
New
and
-
combat inflation.
are
—
Established
market for government bonds, yet
know they must tighten credit to
unparalleled
demand for funds, yet the incred¬
ible
phenomena
of- almost
the
we
an
Royal Bank of Scotland
Incorporated by Royal Charter
dicament
'
never
-
before
1727^
HEAD OFFICE—Edinburgh
encoun¬
Branches
tered.
we
sense, our Administration
and Congress in Washington make
to
Bought
H. Hentz & Co.
dilemma
real
a
fiscal
policy.
The
Treasury and the Federal Reserve
are. apprehensive
of rising rates
of .interest lest, they-disturb the
This
present-day.. credit
plexity becomes even more
most
throughout Scotland
com¬
plicated
if
banks
tempts
the
are
to
lender,
LONDON OFFICES:
com¬
as
3
our
sonally,
I
national needs.
49
:
Per¬
whole-heartedly
sub¬
at
omy,
time
a
world
of
Charing Cross, S. W. 1
64 New Bond Streel, W* t
TOTAL ASSETS
unrest,
obligation to adopt,
lending policies with their sights
on national as well as on private
an
interests.
■
J
£ 141,823,667
Associated
'■
quite properly
and
so,
Banks:
Glyn Mills & Co.
Now government and American
Bankers Association officials urge
us,
|
Burlington Gardens, W» /
scribe to the policy that in this
full-filt economy or in any econ¬
banks have
Bishopsgate, E. C. 2
8 West Smithfield, E. C. 1
presently doing, at¬
key the extension of
credit to
Williams
Deacon's
Bank, Ltd.
to in-
from
expanded
WE ARE INTERESTED IN
Canadian Industrials
Net
current
Current
dii
31
value
Price
(6-30-47)
assets
aircraft !
$19.44>
$8.00
HAncock
per
N. Y. Telephone
'
'
'
V4
•»
i
\ 1
W
-
,<
[
CLASS
.Teletype BS -424
CAnal 6-8100
,
'
,
'
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,
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**A'V COM MON
CONV.
COMMON
■
j.,!,1'1 V, 1
r
.
r
'
'
Goodbody &. Co.
PFD.
$2.60 CUM.
Seaboard Finance Co.
;!
J
WARRANTS
*
,
:
'
Members N. Y. Stock Exchange and Other
Principal Exchanges
115 BROADWAY
^ ^
c
Telephone BArclay 7-0100r
NEW YORK 6, N.Y.
Teletype NY t-672
Kaiser 31 Co.
V;!
20
PINE
NEW
TEL.
;*
STREET
YORK
5
WH 3-9015
f^
,.
•
!
•«
■
'H '!'
members-v.,y;
:
SAN FRANCISCO STOCK EXCHANGE
LOS ANGELES STOCK EXCHANGE
:
.
"v '
.
.
c,
,
Seaboard Finance Co.
Amalgamated Sugar Company
t
^
*
1
.
-
American President Lines, Ltd.
share
St., Boston 9, Mass.
6-8200
1
South African Securities
Pont, Homsey Co.
Milk
!
^
British Securities and
(6-30-47) $9.60
about
,
Canadian Mining
Canadian Banks
program.
Book
!
'
benefit >
to
and
$941.
pre¬
^We Maintain American Markets For:
I
fittings and
than
dividends
Common Stock
couplings,
100%
more
paid
on
pend on. government subsidies and lowest interest rates
,in our his¬
government purchases.
There... is! tory. < Surely
intermediate
and
no "free market
today as such,- and long-term
lending is most diffi¬
as
a result
our price levels and
cult due to an interest rate
Springs, W. Va,, this
Appliance Company 1
since
year
increased
■
our
Sulphur
1948.
were
MONARCH
then move freely in
raising theii
rates, tightening the money marshortages,- .ket and
holding dowm'the expan¬
our
White
assets
expenses
15%.
Our government pur--
.
;
*
government
spiral.
Royalty Corp^
Class "A"
huge hourly increases in 1945 and fully or partially tax-exempt gov¬
1946 to get private industry to' ernment bonds attracted private
prime the-pump, was the begin-: investors, eliminating the need of
ning of this long
inflationary1 protecting the Treasury after tht
by
June 4,
cision
profit
a
Suggestion.
priced oil
believe .is behind the market: f
Monarch
de¬
for
overtime, pression, business • was the prin¬
companies, as' cipal user of credit, and govern^
economy as a whole." ment
borrowing
followed
the
our
termine the
^Transcript
Manufacturing complete line of
*
writeups
TOKLAN
on
York
'
'20s.
many
example:' The great mis¬
judging of a post-war depression,'
Mr. Cravens before the District of
Columbia
Bankers
The Parker
time
that
any
today can simplify our
worse, a number of nur good' cus¬
predicament.
It;can-^and. I" hope tomers
wouldi be literally forced
it will—result in our
giving more
out of business.
Moreover, i'f we
attention < to these factors Which
should revert to wartime priori¬
can
make or break the best of
ties and
allocations, the credit¬
credits: The most -serious element
worthiness of many companies
that we have to deal with is the
wquld be seriously affected, c
• 1
one
I have already
mentioned,
Even our commodity loan§ de-which is the government's life-
As
NATIONAL BANK
well
in
tha.t
cussion
Troster, Carrie & Summers
double
•
our fecyermiient's t liTe-or '•*
control over any industry,
death
.
^
Suggest
'
which are unbalancing manufac¬
sion of credit. Today the
govern¬
turers' inventories and contribute
ment is
thev psincipal
borrowei.
ing a gfeat deal to price disrup-:
to other
!factors%qualJy! ini"r' tions. This, added to the high and "business borrowing follows
the interest pattern set by thf
portant outside of our jurisdiction.
existing price level of materials,
ily to
X-Xi&
with-; time-and-a-half
For
Now
Exchange
and
of a loan.
ness
Exchange
work-week
con&ideratioifs, yet eyeryf could wreck
thing to do with the attractive¬
Members
DIgby 4-3122
ra^
have little to do with pure
credit
39
a
great extent these special
Here We Go Again!,
V
•
•
ketability of your intermediate
and lohger-term loan portfolio is
entirely
.controlled
by
interest
day's credit
European Ttecov- rates.
..V'.A,
policy .dilem¬ ery Program and for cold-war "and
"Ttie day before I came
up here,
on
ma, which can military -purposes, not ^ only. be¬
Tuesday, one of our larger
either be coni- come a big market factor in themcorrespondents was attempting to
struCtiv6 or selves, but - :can. create' shortages sell at a loss some.of its
longercatastrophic). which in many instances could term equipment, conditional sales
By credit .pol¬ make it impossible for some con¬ contracts to make room for a
Kenton R. Cravens
icy, I ipean.to cerns to continue in business.
•
;
heavy local fall demand for funds
include all of
'
Even the strongest ancf biggest at higher rates.
j
the factors thai go into
reaching corporations can be ruined
by un¬
Fundamentally our situation to-¬
loan decisions, including the mat¬
sound labor legislation. Ashorten day is completely reversed from
ter
New York Curb
not
strong
ernment for;-the
,
a
(Continued
•
New York Stock
To
•
ability and 'the price of: the- raw
is
years.
-
The" potential demand for
funds, interest rates
threat of rationing, ..priorities, and, can be
the.deciding factor in your
allocations determines the avail- ' 'loan
policy: Certainly the marl
more
this
forget, too, that the in¬
dividual bank which
applies credit
restraint policies rigidly will lose
and is
losing some business to its
competitors, business for which
it-may be very hungry in future
Another important and
impon¬
derable factor today is the matter
of
said
Don't
:
—
Min¬
credit.
'changing world?
sound national
——
Who
money.
fast
difficult times. Advises! banks to
more
not*extending enough
In fact,
only a couple of years ago
the American
Bankers Association
even created
special commissions
to
get the banks to lend
more
**
'i
.
'
y
'
;
j
everyone, even Congress,
of the banks
highly critical
for
American business.
bank
what I call to-
V.y■
"• Members
X-.New York Stock Exchange
!vi; New York Curb Exchange
•?.
r
laws
facf
•complicated —
V
•
,
imum
wh.i.ch
tors
-v.vjv-t
McDonnell&fo.
"
rials, and the market itself.
we
many
Bought—Sold-—Quoted
on
f'
»*v
,
complex,^'♦>
and ,now
'-
was
lending money as a relatively simple operation, advancing funds to a
satisfying ourselves,, by collateral or other means, that we will
probably
back. Yet oui; present volatile economy has made this simple operation
most:
,5'
St. Louis,
We think of
customer after
get
Lonsdale
Company,
carefully scrutinize loans, itp- restrict tendency toward personal doans <and
fiscal policy by - preventingT credit
over-expansion
Corporation
120
voluntary control of bank
as. a means of combating
inflation,-yet it was not very long
ago that
& -Trust
but despite this favors deferring personal credits for
ness,
New York Ifanseatic
1
a;
p^it
Asserting most serious credit situation today is government's life-and-death control over
industry,
prominent Mid-Western hanker sees future, interest rates as-■ another imponderable
^factor, also
dependent on government policy. Cites consumer and commercial credit. shortagesr as
restricting busi¬
BOUGHT—SOLD—QUOTED
BArclay
Bank
statute
Catastrophic
or
Member, Credit Policy Committee, American Bankers Association.
request
on
CHRONICLE
'By-KENTON R. CRAVENS
"Vice-President, ^Mercantile-Commerce
Conv, Pfd. & Common
,
FINANCIAL
Constructive
—
South Carolina
■
&
^
■/
."V-y!
-
'1500
RUSS
SAN
BUILDING
FRANCISCO
TEL. DO 2-0773
4
COMMERCIAL
THE
Number -4712
168
Volume
llSSilfil N D E X
CHRONICLE
FINANCIAL
&
Looking Through the Crystal Ball
Articles and News
' /,,s
(Second reading)*
Some
Gutt of International Monetary Fund Answers
Questions—Herbert M. Bratter
V
-
";fr
~
.
.
Mr.
-—William, A, McDonnell-iw-;
after
-3
Financing—Thomas W. Rogers-
*-
1—._
6
6
Million Shell Game—Jo Bingham_.l___-J—.
A $6
Strength and Weakness of Business Situation
—Laurence F. Whittemore_ _i_..I—
Prepare for Sellers' Markets!—Brig. General E. F.
*
Salesman—Kenneth
Jt Were a Retail
'
„
'l
-y
\
<
Draft
New
,
V- W,
'
"
12
D. F.McRaeTakesExceptionto jJiftr
f"/.Draft- Law
j.*—*....™
'
5
structive
other
in the
area
:
of
1
and
in
;
we
culmi¬
the
iyears-1950
1951.
13 * 1
-r
The
to
Brown and Bigelow> Stock New ion Big
1
Board
(Boxed)j—-
Hear! Heart
Coe
19
Return to; Gold Standard————— 30
Jay E. Brinton-Urges
"
i.—
New Building' Addition——. i ^-—-——-
•
.v
See
Man's
Business
*? Canadian
*
Mutual Funds
NSTA
-
1....
—
'
Notes
Brokers'
wOur
Prospective Security Offerings.^.—
Public Utility Securities
-
-V
Railroad
>
^
'.
——
J
Salesman's
Corner.Li.—
—
i
years
highs of June.
1948 to the
r
'•
•-
This is
and second legs.
completed
having
as
course
manifestations
ticular
;their
maximum
time,
of
QUOTED
CORPORATION
52 Wall St.
wheat have had
and
one
should
$4.25 New Preferred
Approximate Price 46
;ff- To Yield 9V4%
quirements by wide margin.
Description on request
George Birkins Company
be¬
closely
r
Senior obligation (no funded debt) with
preference as to assets to extent of $110.
per share.
Earnings cover dividend re¬
'
soft soots recently
watch those two
commodities
Tele. NY 1-2425
United Piece Dye
and
Cotton
New York 5, N. Y.
Tel HA 2-8080
bear market
tents and purposes, a
is
in
the making.
The odd
40 Exchange Place, New York
cause
WHitehall 4-8957
5
Tele. NY 1-1404
(2) ThC bond market is quite
in preceding or follow¬
or
runn'ng simultaneously
reach with the stock market (that is
most
the
accurate
dangerous. We look for these par¬
16
—
FIRST COLONY
usually is found to
most exciting, the most [
of
•
one
a
the buying side.
loans begin to expand
issues gain more popu¬
and
*•
SOLD
,-u
market
the
—
The bull market we are talking
j:
they have a dominating in¬
fluence On other commodities.
be
Broadway '>
Teletype N. Y. 1-714
.*.'v:
BOUGHT
major
volatile
38
21
2-4500—120
Corporation
V-vA'
the intermission between the first
The third and final phase of the
bull
v,
Metal Forming
March,
lows
the
I
——r36
The State of Trade and Industry4.^---_..^-----vi.--.—5 ^
Tomorrow's Markets (Walter Whyte Says).—
30
Washington and You
1
40
•
-
' '*
of
from
vance
\
were
larity.'
Securities Now in Registration_i.
.
new
18 !-
!
Securities
Securities
v
—-
: we
1908
which
.
22
-L^:;5 'J*
Reports on' Governments..1,4—.^———*.'--—-—.——J 24'
Reporter's Report—
—.1 39
Our
REctor
Bell System
process.
land
Observations—A* Will red :•
£
.'v."
lots swing over to
.
15
term
short
bearish,
The
sharp
commodities
gradual condition¬ index.
During this period decline in January and February
the public slowly regains confi- of this year has been followed by
jdence,'begins" to accumulate and a minor rally only -and to all in¬
ing
14 "
—
the
positions are; built up.
„_J 33
.
News About Banks and Bankers.
i
Established
the market at this point,
few weeks
to the effect that for the im¬
mildly
& Pfd.
Members N. Y. Security Dealers Assn.
went on record a
about
[longer, being
£■;
L - L —1i_..._T 16 " 1
Recommendatioh^^i^t^^f^5 8'®
Indications of Business, Activity 4 ^ -1 i^——- ..
a
r
V
J.K.Rice,Jr.&Co.
-
Bookshelf--i--il2^-4---—-^-10-*
*
2
the
ago
mediate
Works
op¬
market.
During that period the They may not hang out their red
discouraged longs continue their .lights right now but whenever
selling while the big money is they do—watch .your step.
accumulating stocks.
The public
(1)
The
commodity
futures
does, not realize we are in a bull market has been fluctuating be¬
153—using the
market - until well, along into the tween 145 and
second leg, which usually takes Dow
Jones
commodity
futures
,
Einzig-—"Britain and the Battle Over ERP*——
.L___ 15
From Washington Ahead of the News—Carlisle Bargeron—7
^
par¬
Corp.
Pfd.
&
U. S. Finishing Com.
it¬
in
spirit of
"legs," strains—so we enumerate a num¬
I would say that from March; 1948 ber of possible situations in the
to
the present time, constitutes making which could make life
the first leg of this minor bull miserable for the inveterate bull.
\
Securities:—i.—20
<Dealer-Brokcr^nyestment
Com.
three distincbswings called
^ Coming Events in the Investment Fieldi
^
That
United Piece Dye
leg with* 'two 'more'to- go—and
having a life expectancy of 20
|1 ThevTh^ee' Bull Market Legs
)
On the generally accepted the¬ to 22 months will necessarily be
to many stresses and
ory that most bull markets have subjected
—12 '■
Stocksi.-.l—J—
That
between
j
it'(Editorial)—u—uJ—-Cover^J
Bank and Insurance
-
actuaLty,
"Chronicle"
is now in
cycle
1
Reguiar Featuros
-v
As We
a
Corp.
Dorset Fabrics
As to
we
1950-1951.
;Campaign:^--4-^-^—.24- y
:
minor
sometime
to
23
. —
Wall Streeters Honored for" Work in Grea,terr N. Y. Fund'
*
fashion.
very
well could
groundwork for the
higher markets which we expect
in 1949,
an
my'
Both major and mihor cycles should reach their bot-
SEC Proposes Some Changes in Prospectus Data———--.—- 301
New York Curb Exchange Celebrates 37th Anniversary^— 31 U.
R. M. Smith Reports Savings and Loan Assns. Gross Receiptsr >
Topped $1 Billion in First Quarter of 1948
—21 ,/
F. W. Dodge Reports Building Contracts at Record High— 21
Elwood M. Brooke Reports Decline in 1947 Net EAjrriings of -j
State-Chartered Commercial Banks.. 23
Mercantile-Commerce Bank & Trust Co. of SL Louis Opens
r
too!
STREET, NEW YORK
Federal Water & Gas
in
which-
buttress
major cycle.
Bankf of Montreal Finds Canadiain Dollar Situation Improved 30
,v/
Winter
Tennessee Gas Trans. Co.
that
modified
and
should create
timism
.when the minor cycle again turns
down and falls "into gear" with the
—19 '
—"
v:,.- •:»
■■
Texas Gas Trans.
the
of
feeling
does not
mean that we are looking for a
modest uptrend and should con¬
drastic, break at this level. We do
tinue upward with interruptions
have to digest some of the ad¬
into the fall or winter of 1949,
-.19
GOP Names Frank Pavis to Run for Congress-.—
»
in
Jan. 22, 1948.
on
ticular
Advisory: Council of World Bank .Scheduled to Meet--—-—— 19
4?
became
forth
set
was
article
Financing Completed j.18 f.
InflationjThreat---——™J—18
NAM Sees No Serious
-
which
ity,
17 r
First Airline Equipment Trust
*
minds
a
--
April, 1948.
v.,-.■
and
Telephone: WHitehall 4-6551
"era of relief from
an
altered
be
self
'term—40 to 44 months cycle also
Bridge. Bonds
-
the
in
constructive
in-
'
Life Insurance Investments Through
•
Fall
Obsolete Securities Dept.
99 WALL
tremendously
a
public,
in
are
will
Jacques
!t e r mediate
[arid
shorter [: yr i ;
^^atyzes\Tr'ade....
and
meas¬
restraint"; that some of the New
Deal practices which were inimi¬
cal to free
enterprise and the
capitalistic system as we know it,
nate sometime
,
legislation
have
create
investing
jcyc.le which
between
could
will
iPredicts Business Uptrend ' ; :' v ; biade a top j[n the summer of 1946,
%]. Throughout 1948.., -l l _u*-. -1
£ -- -—
[and since then made a bottom in
[the spring of 1948. This probabil¬
Syndicate Makes Final Payment cn Delaware Memorial
~-
'
v
the
in
—and
Furthermore, it is my opinion
a
change in administration
ma-
a
should
r—------
ARE HOT
that
are
Statistical Bureau
International
fiscal
enlightening business
ures
the
swing , of that
Agreements. - Act % 1-.-~ r--- f —™- - W?-- - -—--
^
interruption,^ will culminate ' in 1950-'51#
short-term views of security
Looking at the. stock market in its broad aspects, we re-
|jor downward
li *
Ho ward's Ariicle on
-
Guaranty Trust Cp, of New .Yor^s
-
-
r
THE BIDS
;
bullish effect.
now.
Agi-inst Deficit Spending6
Randolph Burgess Wkrns
major downtrend which,
!•
11940
-i-------Cover
Law..^...^.
T ' V
summer
Jeffe-,—.- 11
S. Gaston_t>---.—J-l
* *
'
h >'
»
♦
*
< i
SUMMER
in
\
top
Looking Into the Future-r-Roger
If
is
reached
9
Earl Cook___~_—
Mexican^,Econc^y—J.^M. O. Monasterio
*
market
that according *f
to - fhe
long-" f
8
L—
;
•
stock
' //'
'
emphasize
V
The FDIC and Banking History-—H.
IntT Aspects of
Jacques Coe & Co. V; ;
--
f
The following are my long-term and
prices:
T
I-
x
,
term cycle we
_
■
'—
Policy—^Joseph E. PogueJ__J:—
Oil and National
By JACQUES COE
.
St
*
-4
Best Export—Elmo Roper
America's
Lichtchsteiii
"
.
interruption by minor upside
"
•
:
...
Coe maintains
>2
—Kenton R. Cravens.----.-^-.—r--——Looking Through the Crystal Ball—Jacques Coe_
—
Current Trends in Consumer
■
;
i
.Credit,pQlicy-r-Constructive or Catastrophic
^
.
r
\
*
3
AWO COMPANY
•'
Cover.
—
Outlook
Financial Aspects of Business
i
(3)
to
intensity
ing
out of gear
market, (that is
"diversion" with
the bond market gets
some
during the summer and fall With the stock
1949,
when there is a
LAMBORN&CO.,Inc.
99
The, presidential elections are stocks going one way and bonds
3n November and by the following the other), I would say that eight
spring of 1949, much new con¬ out of ten times the bond market
WALL
STREEX
.
,
——
NEW YORK 5, N. Y.
structive
Published Twice Weekly
Dominion
Other
The
;
.
v
-
-
Reg;
Countries,
U.
;
"
fiartk
$25.jK)
S. Patent Otfice
Other
.
,
,
and
B. DANA
Park Place,
25
COMPANY^Publisherj
New
York 8,
the ra.te
year.
per
Publications
Quotation
of
"" t:,_
.
Record-r-Monthly,
(Foreign postage-extra.)
account, of'the fluctuations in
exchange,
7
WILLIAM
remittances 'for
for¬
""; T* "
records,
corporation news, bank clearings^
ar.d'dty news, etc.), v". "
Other. Offices:
111.
3,
.
135
S..
La
(Telenhone:
.
Salle
E.
St.,
C.,
Eng¬
.
ary
25,
8,
1879,~
.
as
at the
Y.„ under
post
the
office
Act
>
at
of
Dow-Jones
*Anf antecedent article by Mr. sliould
in the "Commercial
go
Exports—Imports—Futures
If they
closed at 100.39 on Friday.
Coe appeared
'
bonds
below 100 this week, it
a minor downtrend
DIgby
4-2727
would indicate
& Financial Chronicle" of Jan. 22,
'
(Continued on page 35)
in
United
s
Territories
and
Union,. $35.00
U,. S.
Members
per
year;
of
in
MILES SHOES
Incorporated
Lawyers Mortgage Co. I
PREFERRED STOCKS
Lawyers Title & Guar. Co.
Analysis available on request
^
1
*+
Prudence Co.
*
-
~
11
•
'*•
Spencer Trask & Co.
Members
Newburger, Loeb & Co.
Membprt New. York Stock Exchange
States,
)
High Grade Public Utility and Industrial
Bond & Mtgei Guar. Co.
New
March
' -- '
• "
-Subscription Rates
Subscriptions
Possessions,
40
succession.
con¬
.We are interested in offerings of
CERTIFICATES
ml'
*
Pan-American
Such
TITLE COMPANY
second-class matter Febru¬
1942,
N.
York funds.
N. Y. Title & Mtge. Co.
Copyright 1948 by William B. Dana
v;
Company
York,
dividends.
0613);
State
1 Drapers' Gardens, London,
land,. c/o Edwards & Smith.
Reentered
on
1948—Editor. ;
Every Thursday (general newsr and ad¬
vertising issue) and every Monday (com¬
plete statistical* issue — market quotation
,
taxation
Eaw-*Refined—Liquid
RIGGS, Business Manager
Thursday, July 1, 1948
Chicago
in New
DANA' SEIBEET,' President
WILLIAM D«
state
be made
SUGAR
acts that could
eign subscriptions and advertisements must
BEBBERT D. SEIBERt, Editor Sf Publisher,
legislation can be ex¬ is a forecaster of what the stock
Probably one of the first market is* going tb do. For the
help security val*
first time since; last March, bonds
ues
more
than
anything
else,
would be an elimination of double have been down two weeks in
pected.
$42.00 .per year.;,
year.,-
per
Note—On
REctor 2-9570 to 9576
f
$25.00
$38.00
year.
(Foreign postage extra*)
Earnings t Record — Monthly,
per
:onthly
WILLIAM
Canada,
COMMERCIAL and
FINANCIAL CHRONICLE
,
of
15 Broad
St, N.Y. 5
Bell
[ WHkehtU 4-6330
Teletype NY
1-2033
New
Tel.:
i
Members New
New York 4
f
135 S. La Salle St., Chicago 3
HAnover
Ji••
Albany
—
York Curb Exchange
York Stock. Exchange
25 Broad Street,
y. 1;
Boston
2-4300
'
>.Tel: FINancial 2330
!
TeletypOi—NY 1-5
r
;
Glens Falls
r -
:
....
.
-
t
:
E. Unterberg & Co.
Members N. Y. Security Dealers Ass'n
61 Broadway, New
York 6, N. Y.
.
y
Schenectady "
J C.
Worcester *1.
Telephone BOwling Green 9-3565
^
Teletype NY 1-1666
4
(4)
■
THE: COMMERCIAL
'
TS
i*
&
FINANCIAL
Current Trends in Consumer Financing
CHRONICLE
Burgess Warns Against
tm
By »THOMAS W. ROGERS *
''i•
\;•.;f * *;
;
Executive Vice-President, American
Expert in
Finance
Conference
'
Deficit
-■
•
credit, though noting rise in instalment sales, sees merely return of same trend as
existed prior to war period.
Says consumer credit in relation to disposable income is much lower today than in prewar years and reports majority of finance executives are opposed to reinstatement of
t
consumer
credit controls.
1 consumer
Looks for continued increase in dollar volume of
credit
consumer
^. Thursday, July I,* 1948
Russia's threat to us,
First, about current general trends in consumer sales financing: (1) Previous to the war
period, sales credit constituted between 60 and 65% of all consumer credit outstanding,
and money credit totaled some 35 to 40%.V At the end of 1947, sale credit
represented
t
o
t
1
a
f
11
a
credit
[outstanding
credit
was
of
major
charge
ac¬
counts and(b)
ac¬
then
outstandin
Thomas W. Rogers
of the total of
credit,
consumer
and
instal¬
(2) During the war period and
since, change accounts for mer¬
have
item,
largest
total of
standing.
total.
the
represented
percentage-wise,
credit
consumer
This
from
ranged
end
of
of
out¬
percentage
to 30% of
27
At the
has
this
1947, it
was
Instalment contracts out¬
standing are divided
into
two
groups:
(a) automobile and (b)
other merchandise, including
21.2%
for
all
sumer
other
b^
19.6%
of
total
other
and
out¬
point during
the
The
low
period
war
standing
sented
credit
other
at
was
the end of
At
that
time,
credit
12.0%
debt,
of
all
making
jl5.2% for aU instalment sale
and
debt.
that
debt
1943,
of
$4,000
more
income
which
is
individual
An
$1,000 and
is
in
the
an'
with
a
income of
position,
relatively, as an individual with
a debt of $500
and an income of
$2,000. To call attention to a $500
rep¬
total
no
available to the debtor to liquidate
for
increase
consumer
a
the
is
than
debt
1943,
merchandise contracts
resented
debt
consumer
the relationship
between the dollar amount of that
this type of paper repre¬
only 3.2% of all consumer
debt.
scare
many
credit is in¬
consumer
signficant
automobile instalment paper out¬
: when
which
total
contracts,
contracts.
so
would like to suggest to you that
the
absolute
dollar
amount
of
total of 37.8% for all
a
instalment
credit since
con¬
creasing in dollar amounts, par¬
ticularly
instalment
credit.
I
instalment
contracts then outstanding. At the
,end
of
1941
automobile
paper
constituted
Credit and Disposable
headlines have appeared recently
about the enormous percentages
merchandise contracts constituted
:12.5% of such outstandings, or a
standings,
18.2%, for
vidual
of
in
the
same
debt
income
whose
of the
is
000, as compared with
indi¬
now
a
$4,-
former
con¬
income
of $2,000,
is to get a
outstanding at the end of .blurred
picture of the situation
that period. The 8.7% figure for
which actually exists. In inter¬
automobile paper at the end of
preting our current situation with
tracts
j 1947 is still
the
i
19.6%
automobile
less than one-half of
figure
represented
at
paper
the
end
reference
by
to
trends
in
consumer
credit debt, we must look not only
to the totals of this debt, but to
of
the relationship between this debt
*From
an
end
of
1947
total
prewar years.
address
by Mr. Rogers
percentage of the total dis¬
posable income of the country, as
as
at the 1948 Convention of the Na¬
eign relief, to¬
gether with
a
tional Association of Music Mer¬ well. Here are a few figures from
chants,
Chicago,
111.,
June
17, which you may draw your own
V1948;
conclusions:
continued
.
end
of
4.16%
for
W. R.
the
composed of 2.11% for automobile
and
tracts.
At
1.95 %
paper
stalment
1.62%
the
the
for other
end
sales
of
of
debt
1947,
Was
"A public debt of over
con-r
in¬
only
1947
disposable in¬
come, this figure being made up
of .66% for automobiles and
.96%
lion has posed a new and
percentage, this automobile fig¬
ure
was
less than one-third of that
obtaining at the end of 1941, and
figure was
for other contracts the
than
When
one-half
thus
the
analyzed,
"amount.
get
we
persepective of what these
dollar figures we are
given, mean.
We
all
know
that
J prices
income^
are
when
talk
we
about
in¬
in the dollar amounts of
creases
credit.
Consumer Credit Regulations
The subject of consumer credit
control is a
much-talked-about
rise in the blood pressure.
Others
get Jess excited about it.
desire to take
tion here on this
I do have
some
(I have
a
survey
among
W.
176
replies
our
We
are
pleased to
opening of
a
despair and
that
assume
continue
the
inflation
value
of
the
dollar.
Such
weakened.
For the Russian threat
be with
us
for many years.
"For these reasons the Commit¬
Public Debt Policy-has for
and
one-half
years
been
on
two
the
studying
permanent
impact of the
dealing with it.
fi¬
nation
the
and
on
Six studies
so
ment
of
conclusion
is
now
We
are
pleased to
announce
has become associated with
* i
p*
Manager; Bond Department
i
in
,\
"While
current
Stock
>
yi •"
- r,
25 Broad
Birmingham
-
Alabama'X*
,
Some of the veterans' ben¬
being.
are
time
no
works.
for
a bused.
billions
This
in
Is
public
Prudent housekeeping can
to make the dif¬
between
a
will take courage
willingness to do
deficit
and
and
some
a
This
and
care
a
politically
unpopular things.
But it can be
essential point on
should ask a firm com¬
an
mitment from candidates for
pub¬
lic office in
something more thai*
vague and general terms.
-<
"The other basis Tor hope of our
conquer this huge debt
lies in the nation's great
produc¬
ability to
tive capacity.
After each earlier
war
many have despaired of the
ability to deal with the debt, but
each time we have honored
our
obligations and each time we have
steadily reduced
the debt. For
each
the
time
debt:
have grown up to
we
our
productive
power
and our national income have in;
creased to the point where the
burden seemed lighter.
We can.
do this again if we preserve with
care
the freedom
tives which
and
have
the
incen¬
sparked Amer¬
ican business enterprise."
Jacquin, Bliss Branch
in
Jacquin, Bliss & Stanley, mem¬
bers New York Stock
Exchange,
announce the opening of a South¬
ampton, L. I. office at 25 Main
under
the
management of
».
our
-*<•
v
-
•' t«'
yt
rl
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(Special
11 " ^ (*'h;1 -*7
t,
Trading Department
7.
%
.
•
•
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'"r
•
Street^rNew Orleans
lsiana
Louisi
-V
l
.*
y,
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Members
New
Members National
37 Wall
York
Security
Association
Dealers
Association
of Securities Dealers,
Street, New York 5, N. Y.
:
I
'
,'y„
,
to
The
Financial
Chronicle)
1
ANGELES, CALIF.—Rich¬
ard H. Hussey is with Edgerton,
Wykoff & Company, 618 South
Spring Street, members of the Los
Angeles Stock Exchange.
'"V
SreeneaJiompcwwj
14
' '
I——
LOS
"
us
OMPANY
1924
■Z&K;-;New York 4,.N, Y.,
part of
is essential for
well-being and the
survival of democracy in the civ¬
ilized world, many expenditures?
are non-essential or too
large. The
army of Washington clerks is toe
With Edgerton, WykoflF
*r;:\
Exchange and other leading exchanges
established
substantial
a
spending
national
our
■
York
a
that We cherish.
f;
v
New
can
and preserve the same human
freedoms and economic
well-being
that
MR. FRANK 3. McGALL
Members
we
billion
ner,
LANG, Jr.
g TEINER. P OUSE &
whether
spending $40
year
Street
Managership of
DUDLEY. W.
doubtful
on
Stanley T. Stanley, resident part¬
MR. PATRICK E. HUGHES
MR.
is
keep
of
far
have analyzed aspects
the- problem. The final state¬
of
32)
page
It
prudent housekeep¬
more prudent than our politi¬
lea ders havs been
providing.
debt
methods
published
executives indicated that
(Continued
ing,
cal:
a
might indeed weaken us
to the point where our strength
was sapped and our moral fiber
MOBILE, ALABAMA
under the
we
prices and the depreciation of
on
(2) 43
vent without
we
large
course
nancing offices.'
announce
Branch Office in
in the future lies
largely in gov¬
ernment spending. We han't meet
our obligations and
stay truly sol¬
which
a
It is easy to" take counsel
,
"The key to our national power
to deal with this critical
problem
It is
To do all this and
pay
by
the
abnormally large national income
and the real test is yet to come.
done.
the
were
202
be added
continuing into
peacetime vast military expendi¬
tures, and at the same time launch¬
ing a program of aid to Europe
of
controls, either
operate
capacity to
once
surplus for debt retirement.
we are
basis. The companies
represented
replies
our
that this year's results were aided
by unusual good fortune, by am
ference
sian threat
To meet the Rus¬
large surplus is
a
to
as
It should at
so.
trim off enough
tee
these
with
encouraging
do
fear of Russia.
pro¬
reinstatement
or a
fiscal year
debt and pay it down. The chief
cause
of discouragement
is our
their opposition
temporary
overpowering; at times he
ability to handle the
doubts
may
upon a
,
,
efits
inquiry. Sum¬
marized, these replies show that:
(1)
132
executives
indicated
of consumer credit
its foreign and domestic
obligations and .at the/same time
make headway
in reducing the
debt.
The closing of the current
large.
grams—to
a
this
to
seriously Con¬
meet
cerned about the debt. To him
the
follow: to squander our substance
in great armament and relief
to express their attitudes on credit
controls and
the
restoration of
to
is
re¬
port I can only say that the find¬
ings will not support a counsel of
despair. The Committee believes
it is possible for this country to
debt is
"This easy course is the road to
It may indeed by
just the
that Russia hopes we will
of sales finance company
executives in which I asked them
received
"This does not appear to be the
attitude of the American
typical
course
group
Regulation
programs without restraint.
ruin.
brief
way, what seems
atti¬
tude of the sales
financing indus¬
try toward controls. A few weeks
made
new
must again go' into deficit fi¬
nancing and trust to luck to come
through whole.
on the subject. At
this time I shall try to
report only
what comes to my ears on. this
I
advocating and voting for
government spending
on
of
very pronounced
you, in a
to be the
matter.
through pure thoughtless¬
pay no heed to the debt, and
order.
partisan posi¬
matter, although
a
subject and to give
not
Other
ness
off the debt too is indeed
personal views
ago
does
some
"In anticipation of the final
and China.
one, and in many respects is a
"hot .potato.". Tq some a mere
mention of the
subject causes a
no
who,
harebrained theorists,
greater citizen; for he
are
now
than
during
the
prewar
period. These facts must be con¬
sidered
indeed
are
led by some
think the debt
huge
proper
higher and
"There
go
a
$250 bil¬
baffling
problem to the people of the
United
States.
Public
opinion
about it is not yet clarified or con¬
fident.
for other instalment contracts. As
a
Burgess
Referring to these matters jn the
lightl of the heavy national debt,
Mr. Burgess stated:
disposable income
This figure was
year.
ex¬
travagance of
the Federal
Government.
instalment sales
outstanding represented
of
that
1941
of
~fense and for¬
'
contracts
e
re¬
heavy out¬
lays for fle-
;v.v.-.A:" v/
•
t h
a
the
of $175 billion, —r a figure
below the average for the
come
*
because
represented: approximately
7.63% of a disposable national in¬
much
o
ernment defi¬
cit spending
consumer
debt
less
briefly to another aspect of
;
of
mer¬
Income
appliances, musical instruments, etc. At the end of 1947,
.automobile
paper
represented
*8.7% of the total of all consumer
■total
those
At this point I want to advert
household
and
selling of other
Consumer
>
outstandings,
with
compared
as
con¬
chandise.
(3)
; credit
the
the
instalment
"27%.
/
relative
the
ing. At the same time, relatively
larger percentages of all automo¬
bile sales are being made on an
instalment payment basis. During
recent months the tempo of this
trend continues to pick up and to
reflect a
return
to
the pattern
existing in the automobile sales
financing field previous to the
war period. The same trends are
also. apparent in relation to the
ment contracts represented 21.2%
chandise
in
financed with the proceeds of in¬
stalment loans, has been increas¬
•of all such credit.
the
decline
t
newal of gov¬
(2) - A determination of "this
figure for instalment sales con¬
tracts is even more significant. At
tracts,
<?
represented 33,8%
all
•
sold under dealer instalment
contracts.,
Charge
the
particularly in automobile instal¬
ment: sale
credit.
Since
1945
the
percentage
of
automobiles
1 nstalment
counts
Thus it becomes apparent
(4)
,
composed
tion
the
preparation and will be published
this summer.
atten¬
threat of
10% of this disposable income. At
position Of sale credit, as. a per¬
cent "of all consumer credit debt,
during the war period, is to be
attributed largely to a sharp de¬
cline in instalment sale credit,
groups: (a)
;
in
that
figure
two
outstandings l ranged from
disposable income
country, with an average
good times and bad of about
9 to 11% of the
of
r
e
called
credit
position, percentage-wise,
end of 1941.
'./",•
government economy*
Amer-S>
Bankers
Association,
consumer
at the
45%.,
1
of -1947
end
at the
(1) From 1929 to 1941
relative
and money
s v s a
contracts
stood at about two-thirds of their
then
outstanding,
credit,
instalment
Other
,1941.
consumer
T h i
ican
the
o
the
of
f
of
more
Speaking before the Economics Seminar of the Graduate School
of Banking at Rutgers University in New
Brunswick, N. J., on
June 25, W. Randolph Burgess, Chairman of the
Executive Commit¬
tee of the National City Bank of New York and a former
President
rise, but cautions credit executives against false feeling of security.
55%
Banking at Rutgers University, despite
resort to Treasury deficits and public debt |
increase would be road to ruin. Calls for
prices |
as
Spending
Tells Graduate School of
/■■/
Buckley Bros. Add
(Special
to. The
Financial
LOS ANGELES,
^
5
l-
Inc.
Tel. HAnover 2-4850
T.
Chronicle)"
CALIF.—John
Collins, Jr., has become
nected
with
Buckley
530 West Sixth Street.
con¬
Brothers,
/
■
?
•
Number 4712
Volume 168
Reagan & Young With
Merrill Lynch Firm
/F
Steel Production
///;:^/ The;Y/;//^
Electric Output
State of Trade
Trade
Price Index
and Industry
White House Policies After January
'• .-«■
Business Failures
were poured forth over the tele¬ manager of the office. Both were
Philadelphia by this and other writers last week. formerly associated with Reagan
Nevertheless precious little 4 indication has been afforded the elec¬ & Co., of which Mr. Reagan was
Vice-President.
Y
torate about the policies which a Republican victory will bring them.
E. M. Dillhoefer is also with the
As was
pointed out by this observer last
•
Pasadena office. / y
. ;
;
,/ v
week, the new Republican platform carries on
About
production
industrial
last
practically
remained
week
/ unchanged
*
creases
at the level prevailing in the previous week. Slight dein some industries during the week were offset by advances
in others with shortages
^
of
raw
materials and component parts mainly
responsible for the losses which took place.
Unemployment insurance claims as in past weeks continued
to
demand for seasonal workers. As a
the level of payrolls continued high.,.
;.
drop reflecting an increase in the
'. consequence,
At Philadelphia the Republican National Convention on
Thursday
its work with the
/of last week completed the most important part of
a
million words a day
...
and gen¬
such documents' tradition of vagueness
-
\
during
coming
their
campaign; by
the Party's
(Special
strong candidates, the campaign like the platform
necessarily is a vote-catching device.
The ob¬
scurity has also been accentuated by our system
under which the nominee-selection results from
ST.
The
to
Financial ' Chhonicle)
C
MO.—Herbert
LOUIS,
Koehne, Jr., has been added to the
staff of Olson, Donnerberg & Co.
-
.
Olson,™
With
Donnerberg Co.
appeasement. And while their future in¬
tentions may be expressed with relative firmness
selection on the third ballot of Governor. Thomas E. the amount of grass-roots political V "elbowDewey of New York by the delegates as the Presidential candidate grease" expended on the candidate. With Dewey,
of their party in the natidnal electipn to be held in November.
On as with Roosevelt in 1932, * the nomination was
the follpwing day the convention adjourned with the nomination by not awarded as a result of the people's appraisal
acclamation of Governor Earl Warren of California as Mr. Dewey's of their principles but through years of expert
running mate for the office of Vice-President.
^
''5
politicians' energy in lining up Convention dele¬
In his speech of acceptance Mr. Dewey had this to say: "Our task
A. Wilfred May
gates (by the Farleys, Kellys, Hagues and Hearsts
is to fill our victory with such meaning that mankind everywhere,
for Roosevelt).
*
/
'
* ■
'
yearning for freedom, will take heart and move out of this desperate
Hence, under pur democratic process, the real/
I
darkness into the light of freedom's promise."
policies likely to eventuate from the elected candidates are discern¬
ible/if at all, only by close pnd slirewd study of their past behavior,
Resumption of contract negotiations between John L. Lewis, considered alongside the pressures likely to be encountered from
United Mine Workers' President, and the nation's soft coal operators the future events with which they will be called on to deal.
got under way late on Tuesday of last week, following the ruling,
Vagueness
earlier in the day of Justice T. Alan Goldsborough of the Federal
The Convention doings—including speeches as well as platformDistrict Court, upholding the miners' position in the long drawn out
revealed wide open spaces of indefiniteness. For example, the pro¬
dispute over pensions.
nouncement by Carroll Reece, Chairman of the Republican National
In rendering his decision, Justice Goldsborough stated: "There
Committee, that there are "two powerful political forces loose in thj>
seems to be nothing that shocks the mind in the idea that these
world today, the Republican Party in the United States and tide
members of the United Mine Workers should receive $100 a mqnth,"
and directing his remarks at the counsel for the operators' fund Communist Party, and. so far as this country is concerned, the strug¬
trustee, he added that there was "no justification" for their petition gle for mastery is between these two great political forcessurely
oversimplifies matters. But at least in the field of foreign relations
that the program be discarded as illegal.
In his testimony before the Presidential fact-finding board, Mr. we do know that Mr. Dewey and Mr. Dulles will follow the present
~
,
eral
/unanimous
;
Lynch,
Merrill
of
Pierce, Fenner 8c Beane, 575 Ease
Green Street. Mr. Reagan will be
20—??
graph network from
Total
•
-
office
opened
Auto Production
1
T
Reagan and Paul Young have be¬
come
associated with the newly
A. WILFRED MAY
Commodity Price Index
Food
y
PASADENA, CALIF.—Bruce V.
Carloadings
Retail
Street. He war
King Merritt &
Inc., 418 Olive
previously with
Co., Inc.
;
-mmmarn*—
'y
Geyer & Co. Adds
(Special
r
The
to
Chronicle)
Financial
ANGELES, CALIF.—Jar-
LOS
vis R. Call, Jr., is now with Geyer
&
210
Inc.,
Co.,
Street.;
;
>
Seventh
West
'
'
Y
•
charged the mine operators with an intent to lock out on bi-partisan foreign policy being | administered under President Tru¬
July 6, the miners upon their return from their ten-day yearly vaca- man—despite some indicated departures 011 relatively minor matters
/tion period which began on June 25, and predicted that a work stop¬ like appropriations and atomic energy.
/ But the outlook for the■{domestic scene is subject to many
page would occur if the government sought an injunction under the
Taft-Hartley Act. He added, however, that a walkout would be divergent interpretations—despite the fortunate circumstance that
Elliott V. Bell, the nominee's chief economic brain-truster, was the
avoided if no injunction were issued.
;*/
On Friday last, a -soft coal working agreement was formally platform's most influential fashioner. The uncertainties would include
'signed replacing the one which expired on June 30, thereby averting budgetary matters ands, the currency,, labor, rural electrification, a
a possible nationwide strike by the miners on July 6 following their
specific attitude to'warq inflation—but above all, the ^underlying
basic policy toward government interventionismu
; annual vacation.
.
The new wage agreement calls for a $1 a day pay boost for the
Unfortunately, the past statements of the nominee are not too
miners and a $100,000,000 a year welfare fund. At the eleventh hour helpful in their preciseness. On labor relations, Governor Dewey's re¬
.Harry M. Moses, spokesman, for coal mines supplying U. S. Steel cent expression, "a maximum of voluntary mediation and conciliation
and a minimum of government interference and compulsion," does
Corp. and other major steel interests, refused to sign the pact.
New working terms ifor the soft coal miners boosts the base not do very much to compensate for the platform's hiatuses in that
tiourly rate from $1.63 Vs, provided in the 1947 contract, to around sphere. It surely does not indicate how far either Governor Dewey
i $1,755.; This brings the base pay for an 8-hour day to $14.05 and the or the even more "Leftish" Governor Warren will go in meeting
■
Bank of Montreal
Canadian Bank of Commerce
Royal Bank of Canada
X.ewis
HlRT SMITH &
Bell
'
:
t."'
Private
New York
Wires
V
1-395
NY
Teletype
COi
HAnover 2-0980
ST., N. Y. 5
52 WILLIAM
//•
Connect
•*>
Toronto
Montreal
V-
,•
'.W. *•'
.
.
•
weekly base to $70.25, compared with $65.25 under last year's terms.
It also raises from 10 cents to 20 cents a ton the royalty collected on
:
all coal mined.
\
$
•
*i;
;vi*
>
*
.
*
*
U
In the wage-rules dispute of the rail carriers and the engineers,
switchmen's unions, the situation remained deadlocked
I MANUAL OF
SUGAR
COMPANIES
opposition to the Taft-Hartley legislation. The relevant plank
in the platform will presumably offend neither labor nor industry.
The electorate is entitled to receive at some time a forthright state-?
nient from its d^ief (office-seeker of * hisy position on make-work,
25th Edition
Now
demands of the rail workers that wages be in¬
top of the 15% cents an hour recom¬
by an emergency board.
new demand was based on the fact that the three brother¬
the past week over
creased to 16 cents an hour on
mended
The
originally asked for a 30% wage increase. According to David
B. Robertson, head of the Brotherhood of Locomotive Firemen and
.Enginemen, the three unions are entitled to an additional 17 cents an
hour, rather than 16 cents, since the cost of living has gone up to
hoods
,
A
Y/Y^/y/A-;'•
■//■/
Housing-.
•
where everyone
Wagner-Ellender bill and Governor Dewey within the party, those
segments of the populace who have been pleading for the social
benefit angles, as well as those anti-bureaucrats of the Hoover philos¬
ophy who insist that subsidy be handled on a local rather than on a
Federal basis.
Thus Senator-candidate Taft told the writer in Phila¬
.
,,
that
the
indicated
program
125.6%
V;,Additional
i
x
/
•//- •/-':■ }
i
.
There
was
a
; •
•
•
■'
.
V
v-
moderate rise in consumer buying during
u
•
"y-v
Bough[—Sold—Quoted
'//*:'•
Y "
(Continued
on page
27)
'
-
■
—
•
'
•
'
\
FAIIU
Members
Neio
YFREDERIC
&TC0.1
York Stock Exchange,
ber), N.
-
(Assoc. Mem¬
Y. Coffee and Sugar Exch.
120 Willi St., New York 5
Telephone, WH 3-4610
car
MOTOR
CORPORATION
Slock
$1 Per
Shore
:
'vtoisTmem-
Prospectus
■
Established
N.
TELUER &
H.UTM & CO., INC.
■,
63 Wall
Neiv
York Curb Exch.
*Prospectus on request
/
MEMBERS
'Hy7/:. V-'-"->*1
Price
American Maize Products Co.'
-
.
/Common
*Lonsdale Company
the week
/with demand for Father's Day items heavy during the forepart. Sea.jsonal goods of-all types sold well and retail dollar volume was well
above that of the corresponding week a year ago. Many shoppers
continued to shun high priced merchandise.
v
Wholesale dollar volume held steady in the week and was some¬
what above the level of the like week of 1947.
The demand for fall
-
PRICE $2
sales tax in New York City
Plus 2%
Kingan Co.
August, 1939.
evidence of this grave inflationary trend may be
gleaned from the report of the ^Institute of Life Insurance, which
; states that, policyholders in the first four months of 1946 have sur¬
rendered their policies at a rate of 25% above 1947. This unloading
of policies is said to be the heaviest since 1941.
.
* ' ;<•
*'/•!•' * 5
:[!
' > O
V•'u
;
•
over
dustry with complete lists of y
was
likewise Governor Dewey's State
•
^
mills.
_
delphia
,
300-page book of histor-
4cal, financial and statistical
inlormation on the sugar in- J
problem provides another instance
has been satisfied—including Mr. Taft of the Taft-
The disposition of the housing
satisfactory to him, and
Commissioner Stichman, in review¬
Setting aside a government complaint against 55 shipowners on ing the matter with this observer, proclaims his enthusiasm for it on
the East and West Coasts, Federal Judge John W. Clancy on Wednes¬ the particular ground that it will quiet the qualms of those who
day of the previous week held that no evidence had been presented chronically charge the Republican with do-nothingness and at the
to him to show that these shipowners threatened a lockout in the
same time keep the operation on a healthy basis.
•
present maritime dispute but he noted that said employers had agreed
And how far President Dewey, when running the executive
to maintain the status quo for the duration of the 80-day injunction
branch, will go along with the wishes of those like Speaker Martin,
issued by him against the East and Gulf Coast maritime workers
Representative Walcott and Senator Baldwin in their opposition to
which became effective on June 14, last.
Similar injunctions are large-scale housing subsidy, poses another open question.
being sought by the Department: of Justice against workers on the
In the sphere of inflation we haveno indication-about what
•; "West Coast and Great Lakes from leaving their jobs.'
we are to expect government-wise, nor even to what extent the gov¬
ernment is going to inject itself into managing the economy.
/YYYY-'Y'Y/
YY//c'Y ■',;//< '
: *
* y/y YY/i/v/y/ /
The
0" High prices continue to plague the American consumer arid with platform contains a variety of platitudinous bows to economy and
the third round of wage increases beginning to make itself felt, the
-'-(Continued on page 35) /
/
i
battle to curb the inflationary spiral appears to be a futile one. This
is borne out by the Bureau of Labor Statistics which said its consumsers' price index last month showed a general price increase of 9.3%
Time Inc.
over last year; 27.9% over June, 194-3, and 72.9% above August, 1939.
Food went up 12.4% over a year ago; 44.8% above June of 1946, and
Justify this demand,
Being
feather/bedding, and other,(devices for wages for work not performed.
firemen and
'
/
labor's
Y.
*'
SECURITY
Street, New York 5, N. Y.
J
1888
J
Y
' 'V*
DEALERS
/
" 7
ASSOCIATION
42
■•-
•?.
Bell Teletype NY 1-897
BroodwoYi Hew
Tel.
Dlgby
CO.
tork A, N. I.
4-4500
6
(6)
THE
COMMERCIAL
&
FINANCIAL
CHRONICLE
.Thursday, July-1, 1948
^||||||Americaf si Best f Export Mill Wm $6 Million Shell
Game
'
By ELMO
ROPER*
Public opinion analyst, in pointing out our best exp ort is not in goods and services but our ideas of ;
democracy and freedom, warns of rising tide of dom estic spending, undue credit expansion, and decline;
in rate of savings.
Holds we cannot rally world to democratic cause by merely promising them bread,
but must work toward
as
increasing productivity, bolk at home and abroad. Urges support of Eu"basic to peace," and says it will do good job if we back up our promises.
are
j
\
Today, the United States is the world's biggest salesman. We are selling things abroad
$10 billion/ And we are loan ing out or giving > away, as one kind of free
samples of our brand of democracy some $5 to $6 billion more/ That's a lot of product/
/
tangible
Uncle Sam is
ch
to
guide
U.
are
executive™ Without it
the
need
S.
has
sale
We
have
idea
for
n
First
for
•' *
-
are
'
to
price
buv
J
keep
,
ly
sales in
a period when
shortage of savings.
But, the people who buy orf thie
fact credit
plan today are purchasing
with a cheap dollar, and it maV
no
be that they- will
eventually have
and
want
up
in
Support.
make
Tjhe
Elmo Roper
was
be
< '
-
'
*
*
,
[
from
fear, free from
coercion, free from sickness, free
from want, and,
perhaps it isn't
too much to
hope—free from ig¬
.
forecast.
one
fact
is
that
we
are
a* people, adding to our
personal worth as we did during
the war, when overtime and the
scarcity of things to buy pushed
savings up to $25 or $35 billion a
year.
Savings during the .war
came
as
to 20
or
25 % of tne national
to
back
pay
with
dear
a
their
c o n
to
This
is
a
not
danger point in our credit struc¬
ture, which should be watched
very carefully.
Because it is the
sales of business which will
suf¬
Federation of 'Sales
lic since
consumer
1945. "Total outstanding
credit - of
all
kinds
Jo
Bingham
nation
and
butter producers
noyed, too.
said
the
When
are
old-fashioned
an
in
or
you
pur¬
The
take-home price might be
but they wouldn't really
cost /less.
In: fact, - Congressman •
lower,
Pace
In
cost
worth-
of"
the
"and
about 11
Georgia told the House!
12, 1948, that this would
June
on
cellophane,
nickel's
o'-peanuts will cost
peanuts
less
nickel today wasn't
dime, she was right. Par¬
ity support and other- forms! -of
inflation have hit the goober.
same
parity. .Then peanuts would cost
on the market. /
>> I
an¬
Fanny Briqe
a
shells, in! salt,
parity, the
chased from the farmer at 90% of
kid's
a
worth
even been told
that
fewer and fewer
pea¬
bar of candy, that pea¬
for
candy are practically
per
themselves' out of
the
market; /The /industry, therefore
wants Uncle Sam to
help by -sellr
ing to the manufacturers at 72%
of
the
ux
and
pricing
only pi¬
think of
Kias
of
are
nuts
hign
peanut
fer most if that structure becomes
.
National
ributing
baseball, fans.- Candy-makers ahd
disposable income.
so
top-heavy it topples from its
norance.
Today we are saving not quite own
weight.
*We' believe all those
6 % of our income.
These past
things.
But
unless
we
Decline in Personal Savings /
can—and. with three years since the war ended
some
speed—convince a good part have seen a good deal of the sav¬
This decline of personal sav¬
of this earth's two billion
people ings rate of American consumers ings plus the tedency to take
Jto
of those same
principles we shall stripped away.
Part of • the de¬ credit
buying during a period of
never
have permanent
peace
in cline in savings has gone into the record-high costs, is a
warning jto •
the world. And peace is the one record purchases of
homes, radios the price structure of our
con¬
other
thing essential to all other good and
consumer
durables. sumer goods' industries.
I *
thiqk
But part has been siphoned off
things of life.
there is plain handwriting on the
Without it you won't need facts by higher prices.
walk that the price structure' must
As might be expected, this haslevel off or the
country must" face
resulted in a doubling of the in¬ an
;
*An address by Mr. Roper be¬
indeterminate period of rising
debtedness of the consuming pub¬
fore 13th Annual Convention of
individual debt and resultant in¬
Executives, New York City, June
16, 1948.
nuts
geons:
tne
consumption
dropped 30% last
peanut 1 butter,
40%!
Congress has
there
/ost of feeding
pigeons.
And
borrowings
dollar.
t
the
Th6 "
peanuts
year,
gram that are
one
a
and
salted
purchases
session, I'd like to offer
is
sell
more
peanut prod¬
at; lower prices; " but
they're losing business with parity
pro¬
there
to
ucts-
price
a
only a few million
to give pigeon-feeders
and
Dodger fans a break./ They
the
sup¬
the
the state. That
the
government
more
export
programs
j
beginning
sup¬
ply,
$8 billion in
Sale
though, in "order to make
longer,
free—-free
and
support
for
to
1945
a
the
s-for
bow to the theme of this particular
1
—not
m an
in
a s e
general
in
and
man
little over $13 billion to¬
contrasted with only $6Vk
People
That the state
exists for man
meant
billion
at
rate of 20,2C0 tons a month.
From July, 1947
through• March, 1948, the total goober take was
363,663,331 pounds/
including pur-
a
as
government
such
no
cents today.
$50,000,000,
thing
done." That extra
should
be
cost would
be
jadded to the $6,000,000 mentioned
How?
Translating the nickel's above
and passed along .to the
worth
of
goobers
into- parity
taxpayer.
A sugar-coated price
price terms is the best answer.
with a hopped-up dose of taxes is
A base price is established on the
1909-1914 price record.
not the answer.
For pea¬
this*
is
4.8
cents.
But
\
The solution isn't to load
up
•
nuts
the
the
"parity"' price is a kind of ex¬ price support structure with new
change value for the cost of.things gadgets, but to cqt and /revise ' it.
There is fairly general
the farmer buys.
agreement
For example,
to in the coming months..
The trouble is. tbe: tech-with the nickel he got for his pea¬ on this.
Now, here's the one forecast I. nuts in the base
period 1909-191< pical problem of how/and there
promised.
And it'£ not, as you he could
are: a number of possibilities/
; j
buy "so much"; whatevei
might have expected, an election it costs him now to
However, although economists
buy "so much"
forecast.
Despite the fact that is the
parity price.. This was 12 and legislators alike worked to-,
savings are decreasing, there, i? cents on Jam
15, 1948^ On thai ward/some; long-term answer
dustrial unrest.
should
we
This
is
give careful
fact
one
attention
.
LYNCHBURG
BOSTON
H
IIIIIIIHIIIillf IIII11II1IIIIIIIIIIIIIIIIIII
Trading Markets
American Furniture Co.
B
;/
&
&
Bassett Furniture Ind.
Maine
RR.
the
Street, Boston
LD 33
IKI1I1I1III11IIIIIIII1IIIII1IIIIIIIIIIIIIII!
ST. LOUIS
common
April 30,
1948
$120
Stix
Book value $360
Price
lines]
labor must find ways to
increase
Year
(app.)
of
kind
Co.
&
production
machine. But
509 OLIVE
♦
'
,
STRE E T
*
,
'
'
'
that?
now
business is not the American war!
INVESTMENT SECURITIES
$200
hour
per man
the biggest customer for American!
'••
'
an
(Continued
'
to
correct.
a good guess.
taxpayer, i you
page 34)
addict
Private New York
..Telephone—•
WOrth 4-2461
1
^
'
.v
-
'"Yv'/"/'' "7':
•
•
'.j
.
V.7'
v
••?*.
•
•
•
>-
.'
'
-
y
.
Members St. Louis Stock
•
.(1-.i''• 7
•"■■■/•
:
••' /
OLD BEN COAL
t"
CORPORATION
LOUISVILLE
SPOKANE, WASH.
An
Illustrated "brochure
year
Ashland Oil &
Common
Refining Co.
NORTHWEST MINING
Ashland Oil & Refining Co.
Debentures
•
SECURITIES
For Immediate Execution of Orders
or
Quotes call TWX Sp-43 on Floor
■1
■
f
'
13
by
interested
in-
vestraept dealerss and other financial
f
Stock
Bought and Sold'
a
.analysis has been' prepared
and is available to
us
giving
of
Exchange from 10:45 to 11:30
A.M., Pac. Std. Time: Sp-82
at
other' hours.'
/
Institutions
We
on
maintain
Coal
common
Inquiries
for
request.
a
position
stock
the
and
in
Old
invite
purchase
or
Benyour
sale.
Bought and Sold
*
M BANKERS BOND £°;
STANDARD SECURITIES
:
> CORPORATION
Members Standard
of
Incorporated
•
1st
Floor, Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY
1
Long Distance 238-9
Bell Tele. LS 186
Brokers
-
Stock
Dealers
-
Approximate Price 13 H
goobers
loss
to
be
sold,
Underwriters
•
Branches
at
■
Kellogg, Idaho and Yakima, Wn.
Comstock & Co.
:
other
is
.i
Dearborn 1501
uTeletype CG '955
why the candy maker said to the
farmer, "Brother,
h
can you spare
peanut?"
price
activities
support
.
operations.
However, there
mandatory price when the
Commodity
Credit
Corporation
sells peanuts as peanuts for oil.
no
Among
this
are.
nuts
CHICAGO 4, ILL.
:v,
"]
In the meantime
you will know
are
subsidy . payments made, in /con¬
nection with price control.
Sub¬
sidy payments were a wartime
device.
They ended for peanuts
on Oct. 16, 1946.
The price sup¬
port "program, which began in
1933, continues to exist. But pea¬
nuts are not just peanuts in the
orice
support- program.. As i a
"basic" commodity, on which price
support is mandatory, they are
"peanuts for.nuts." As a "Stegall"
commodity they are "peanuts for
oil," and support is maintained
through
loans,
purchases,
and
""•
231 So. LaSalle St.
the ques¬
"
The
nuts;
it must sell at 96% of parity.
Peyton Building, Spokane
on
legislators, return
to Washington.
$33,900,000;
sales, $6,150,000. These
big stakes for a shell game.
on
But when it sells peanuts for
Exchange
Spokane
tion- when the*
/'" /
j—i.
""'' ;
'
should not be confused with, the
•
Exchange
will again be taken
or
1949, although they may be as ac¬
curate, are even worse; cost of
early depression,'
on
that
warned
Peanut
may
care to ~ be
the predictions for
.
.
75 Federal
Street, Boston
,
the
government price
designed
,
St.LouisLMo#
DAYTON HAIGNEY& CO., Inc.
■i
effectively/speaking,;
status quo has so far
merely been
In the
closing hoiirs of
extended.
situation
-
True, American management and
$43
Fiscal
that
10.1 cents.
was
the
support is the 80th Congress a compromise
Therefore, of the short- and long-range bills
to see that the farmer gets a price for farm support was
passed. This
of
90%
of parity, Uncle Sam will continue through 1949 the
let us fulfill
them, will i keep, a* start? to buy and sell peanuts. A*
present parity support practices.
good many more busy.
I see nq this business he often loses. For
The
signs of an early depression. True] example, > the President's
long-range aspects would not
Budget
some of the luxury businesses ard
become effective until Jan.
says that by June 30 the govern¬
1,1950,
having an increasingly tough1 time) ment expects to have sold
$32,-, and revision of the parity formula
True, more and more products 740,708 worth of.
peaunts at a loss is likely long before that; Since
will pass from • the sellers'
field for the year of $3,750,600. And,
this, bill was a temporizing
into the buyers' field. True, there about the
action,
middle - of
June, it
will have to be more value for the looked as if that guess had been passed hastily, it is felt that actioh
dollar built into many more
.
Divs. SIX MONTHS Jan. 1-June 1"
Earnings
is
This
parity sup¬
obligations under the Mar+
shall Plan, if Mr. Taber and others
Lynchburg, Va.
Tele. LY 83
10
Tele, BS128
TEXTILE
the iharket
continue!
Rearmament will keep 4
good many people busy. Fulfilling
Scott, Horner &.
Mason, Inc.
Walter J. Connolly & Co., Inc.
A
future
port,
our
Traded in Round Lots
T«L HUbbard 2-3790
immediate
the whole question of
same- date,
however, the average
price received by the farmers in
high.
i
Prior Preferred
24 Federal
to
which
people have accumulated,; Earn*
ings continue liigh and; hope foT
Dan River Mills
Boston
still a' fair amount of wealth
/
f
support !
peanut vendor, and a big one.
The Commodity
Corporation, which is the; federal super-market, has been
buy¬
peanuts
d.
y /
k i
n
Have
We
the world.
essential
m.a
ing
port
today, I want to talk about more on the: installment
O^JtVaplan.
what you and I, as citizens of this
tions. • Installment credit buying is ofteh
But it's most¬
country, have' for sale all over
regarded as a desirable way tb'
is
i t
day,
So
is
■
stands
will
1939.
sale.
there
d i g n
one
marketing consultants.
What
an
idea
that
sales
the
no
for
today.
That
an
forecasts
and
gs
all
not
-
Credit
these
n
peanuts f
writer points out dealers and manufacturers of the
product1
Losing business with parity support and consumers' are
cutting |
dqwn their consumption.
program,
V
But
v
at rate of,
to the tune of
t h i
JO BINGHAM
Noting/ Commodity Credit Corporation; has been haying
20,200 tons ia month largely under farm price
/
of
era
Recovery Program
ropean
'By
7
They
those
who
don't
the fellows who
for
say
and abet
(Consumer,
nuts
it
in
isn't
their
use
pea¬
business.
cricket
the farmer
:/
like
and
to
aid
not the
that • it would cost the
Philip H. Morton Joins
1
Gordon B. HanlonCoY/
(Special
to
The
Financial
Chronicle).
;
BOSTON,
MASS.; Philip H.
Morton has
:
'
| ■' ''A
.
become
ciated
asso¬
with
Gordon
B.
Hanlon &
Co.,
10 Post Office
Square,
bers
mem¬
of
Boston
the
Stock
Exchange. He
was
formerly
with C. S. Jef¬
frey Co. and
prior • thereto
.
was
Boston
manager
Ira
for
Haupt
&
Co. In the past
he
conducted
his'own
Philip
investment
Auburn, Maine.
H.
Morton
,
•
/
•
business
in
/
Volume IBS
COMMERCIAL
THE
Number 4712
-
Washington
Ahead1 of the
By JOSEPH E. POGUE*
.
Vice-President, Chase National Bank of New York
'
siveness, -to continue its- technological advances, and, by use of American capital and managerial skill,
leading contributions to woirld recovery and world peace. Gives details of design for
Dewey had been "unani¬
About midnight of the Thursday that
continue to maker
mously nominated for the Presidency at Philadelphia, I was walking
to my out of the way hotel. As I passed the hotel in which; Senator
"Vandenberg was living, he was standing out in front waiting for
a .''-'friendi:
to'£ ' - ■■ '•
11 ^
■'
■
bring
the
up
I h
■
c a r.
a v e
-elated.
hi gh
His
spirits
4,exuded to the <
.
.scores of pas:
sersby
who
4:i4i?I?'/v?/;
|a. business
there
neither
such < a
was ;>
•
side
can
division,
as
complicated
so-calied issue. And certainly
this
if
as
claim Dewey or
They constitute, instead,
the ideal compromise; ' 'i
f un c
honing
growing.
and
Like:
appointment jA Middle Western editor of con¬
in
Carlisle
Bargeron
'
rnv oar.
/ influence," ;ysupporting
have gotten in there and pitched.
It
if
■
♦
v
might have-been different." ?
Laughing heartily, he said:
"Carlisle, you aren't kidding me
and
were
use
v
.1
,
rest
■
of
them
kidding me. They wanted to
stop Dewey/'? - - '*//;
me* to
"Which
a
of - the
none
is
fact
a
commentary
it
and
is
Eastern
the
on
also
that for weeks had
building him up and predict4 ing his nomination. They were not
newspapers
;
been
f: JaddtogK^hey; were serious.
But the Vandenberg movement
among the politicians was. a
stop-
Dewey movement; It was one of
those things which
might have
gotten
fact
i
of
away,
is
that
it
but
course,
the
created
never
a
ripple at the convention.r
The
?
propaganda of the global
minded journalists and commenta¬
tors
was
about
vention,
as raw
at the
con¬
and
during the, weeks
immediately preceding it, as any; thing I have ever seen in this
4 country.
'
►
«•
.
.
'
There
never
isolationist
thev slightest
was
internationalist
divL
sion at the convention except1 as
these propagandists made it and
the
only
-
basis they
had
was
either; Taft, " Joe
ist.
Vandenberg fought for the
higher figure. He is therefore an
internationalist^? ;; V
1
.
The House Appropriations Com¬
A
mittee did ^cutr the:
actual,
lationist.
So
it
might be said of
the House because it voted
whelmingly
for
the
Martin/ or
recommendations.
sent
a
It
was
committee
is.
entirely
Martin who
e
jectives.
i,n
mearis
„
ma¬
v
Fortunately*
the
same
for
equally, effective
are
different
these
ends.
And
con¬
expe--
trariwise,
Their
economic, improvement are liable
,;
means/ unsuitable
t(j be harmfid to the
are-
for
others^. ?/ 4
Jo8«ph)E.: Po«ue
Economic Status of the Petroleum
Bricker'were nominated. *„ 4?
';4:4/;. ■ Industry
1
proponents of centralized plan¬
|4- Ayfdw^hdufs "after th£.artic
ning, for the former are deter¬ 4 At the outset it is desirable to
appeared, 4 a
splendid piece of- mined by the interests, of the in¬ appraise the petroleum situation
dividual
Dewey propaganda, I ran into an
unquestionably intimate friend, of
the- General's. I told him of the
whereas
the
latter
are
prompted, consciously, or uncon¬
sciously,
by
the / principles ; of
collectivism.,
In this attempt to
article and suggested the General
should be told he was being used
formulate the elements of a na¬
tional policy, I have drawn heav-
and the nature of the problems
involved, for a correct orienta¬
tion is prerequisite to sound judg¬
ment
as
to what needs to be done.
Many official pronouncements on
oil are colored by emotional con¬
/
TO my amazement he said that ily/ on the' intuitive - reactions of siderations and ..attuned to the
was
just what the General in¬ the independent oil operator, not public fancy of the moment rather
I have witnessed than to what is fundamentally de¬
tended to do. He didn't intend, only/because
ih*tMsjwa^/?;45 ;4
|
them in successful action but also
this intimate, to permit the
great work he had- done to be
undone. *.-. •
*
.
,
* J ■
.
* T
4
■.,
J/ .somehow- -wish1 one of- the
three outcasts had been nominated
; the General could have
gotten
Policy Defined
/
;
campaign, it would^ be
interesting to see what happened
intgt the
4; What do
understand by pol¬
"4
w;e
icy? "* Webster defines; jt
settled;!' or
definite
course
to him.
4 Then to
get back to Washington
that Truman is so dis¬
a
or
method
and learn
with Europe that he is
wondering if "saving" it is worth¬
gusted
while j-it
or
effective
troversy,;
"sound"
/those
ends
for
do
War II and its aftermath of infla¬
tion, by accelerating demand and
retarding supply, brought an end
to the existence of surpluses and
created for the first* time in two",
decades
it
are
be
condition of tension be¬
supply and demand. The in¬
dustry, 4 accordingly,found
it necessary to utilize its normal ca¬
pacity to the fullest extent, to
bring into operation its entire
range of high-cost marginal fa¬
cilities* and to engage besides in
an
aggressive program of largescale expansion.
In- the presence
of shortages of critical materials
and manpower,
this process of
catching up is not a short one, es-.
pecially since many of the social
and technological changes grow¬
ing out of World War II are con¬
tinuing to exert a very stimulating
influence upon
oil consumption.
In addition, the
shift from coal
liquid fuel, conspicuous during
the era of very cheap oil, received
added/impetus from the uncer¬
tainties of supply surrounding the
i; The petroleum industry has re¬
cently emerged from? a prolonged coal
industry.
In
consequence
pycle of subnormal prices extend¬ the fuel uses of oil forged ahead
of the demands for. other oil prod¬
ing from the early twenties to t$ie
midwar period.
This cycle was ucts, altering the seasonal pattern
caused by the development of ex¬
of consumption from a Summer
cess capacity in all sectors of the
maximum to a Winter maximum.
industry as a result of the stimu¬ Thus the industry was confronted
lus of the higher price level re¬ with a peak-load problem, made
sulting from World War I and the up of a shifted seasonal high su¬
incidence upon supply of the tech¬ perimposed upon an accelerated
to
are
sound.
for
room
ac¬
situation should
and conclusions drawn
in the cold light of reason and in
harmony with the fundamental
forces at work.
/
a
tween
con¬
nological advances growing ,put of
that
period. '
supply
Thus
trend,
and
the
(Continued
for
outcome
on page
was
28)
"effective" / and
not
volved
will the urchins.
in
policy.
years,4rona;jiow<he^wilL be/ four
In this
all
„
considerations
paper
of
favored.* /
pThe
Lynch V.-P.
4
'
\
We
the policies
appropriate, for; a democratic state
are
Frank
call
would
The
years
and brought about an era
carry the same
meanings for all. In consequence
the question- of ideology is in¬
lowing* him about the convention,
squealing and oohing. But four
so
the
or
This leaves much
Frank Sinatra urchins he had fol¬
older and
I
can
be either good or bad,
cording to whether the means
Mr. Stassen left" word. with the
years
individual."
to gain
predetermined ends." Thus policy
:
.
adopted and followed by
government, institution, body,
"the promotion of means
is: just top muich/; One's
sides ache.
outdistanced demand
of very
cheap oil. The availability of oil
at low prices, in turn, acted as- a
progressive stimulus to oil con¬
sumption which expanded in dis¬
proportion to the use of . the other
forms of energy.
Finally, World
many
analyzed
croachment of the state and therefore are, the soul/of} demoncracy.
I
50
sirable.
because they advance the dignity
of the individual against the en¬
said
are
pleased to
duct
Of Blair & Go., Inc.
the
oil
future would
Incorporated
industry n in
seem
the
to be: precise¬
tive
in
Teletype: NY 1-1474
Telephone: WHitehall 4-8040
the
past; namely, private
functioning with the
minimum of regulation and so far
as possible decentralized.
This is
precisely the structure of the pe¬
troleum industry today and the
New
enterprise
to
NEW YORK 5, N. Y.
70 PINE STREET
ly those which have been effec¬
'
the formation of
BYRNE and PHELPS
-
means that hold the great¬
of
announce
'
est promise for the successful con¬
Blair & Co.; Inc., 44 Wall Street,
York City, announces the
Europe last election
of Frank Lynch as Viceyear, headed by Chris Herter, and
President of the firm. ,Mr..Lynch
that.it was this committee's re¬
has been with Blair &. Co., Inc.,
port that made the Marshall Plan
for about 25 years and head of its]
possible.
•
v "
municipal bond department for
]• v The
only • difference between
Taft and Vandenberg or Martin ^everal years.
1
v"
and Vandenberg is that Taft and
Martin want an auditing of the
; Ji Thomas Sjebald Opens
global minders' requests. Vanden¬
(Special to Th® Financial Chronicle)
berg is apparently freer."; 1
i VMIDDLETO WN, OHIO — J.
fHe wrote the
foreign policy
Thomas Sebald is engaging in a
plank which appears in the. plat¬
form* No ope, to my knowledge, securities business from offices in
at ? anytime questioned it. There the Savings and Loan Building. 4
forgotten that it
.
those/'of/.,the.. :-r;/ •■;:•/.
over¬
committee's
in
instincts
appro¬
priation. Martin is Speaker of the
House., He is therefore, ■ an iso¬
a r
superior to
the
isolation¬
e
rience.
country before surrendering that
personalities. 4 Taft, for he would continue to lead,
within
example/ sought:to cut 'the Mar-, the>
party; / the-coiuntry^. young
shall Plan fund by a billion dol¬
liberals.
He
must
mean
an
audi-
spirit but
ture
varipus
lars. He is therefore
.
oil
you :n g
It
"Senator,"? I. said, "you should
this
e. n ;c
represented him as wanting no
part of politics but he would feel
it incumbent to warn the country
'
-
the
industry itT
self, the men
get it. :v4;::;4v' Dewey, wrote an article for.:r a
I thought I
Philadelphia paper purporting, to
would put in tell what the General is thinking..
-
living/ national security, and what
imgm be termed the "good life"—
furthering the unfoldment of tal¬
ent, promoting the cultural aims
of
society, and ; advancing. - the
cause of. world peace;
Thus the
ends sought should be a combinaation of. economic and social ob¬
difficulty-;;; in
Warren.
siderable
cepted as embodying; the optimum
contribution to rising standards of
3il would have
I/ did/ run into an interesting
expressed' thing as to what is going through
their■dis¬ the - mind of General Eisenhower;
that' he didn't
/V;
without which
the- delegates than
stopped/ an d:
'
national;oil; policy.
a
The
Roeky Mountain Oil and Gas Association is composed of men who typify the qual¬
place, that the-global minders are ities which have made the American Petroleum Industry gre4t. A sound national oil polin the saddle. I know of nothing
cy, therefore, must conserve and promote those characteristics- of initiative and enterprise
that was considered of-1 less im¬
never seen a
1 o serihor e. portance among
;
,4
Prominent oil expert,afterreviewing current oil problems, holds best way of promoting our national
Welfare and--security, in oil is through private enterprise. Warns
government should avoid restrictive or
hastily-conceived measures but should leave industry, already fortified by skill, experience and aggres¬
By CARLISLE BARGERON
;
CHRONICLE
/ Oil and National Policy
From
1
FINANCIAL
&
Dealers in
STATE AND MUNICIPAL
•j/;.? :> .-'l;
, ,
4 "'.u
'
• •
4 ''4
v v
■ v
'
-444
4
BONDS1
vr1. •" > • ' j •
/
'
v.-i'
'4 / •
„
_
burden oL proof should be upon
.
piose who would change it..,
] The aims of
would
-
was never
tO it.
the slightest opposition
4-4*4
| —•
m
national oil policy
name
of
CAMPBELL, PHELPS & CO.
doubtless be generally ac¬
;*An,.address;ML
fore the
he/
Rocky Mountain Oil and
Gas Association, Cody, Wyoming,
June 18, 1948.
4?/-4V;^4
mm
mm
a
ROGER S. PHELPS
?
-
v
conducted under the
4
.
mm
mm,-
WILLIAM D. BYRNE
July I. 1948
r
mm4,
'-Senator
platform
added
■:>.
.
a
Hehry Cabot Lodge, the
-committee
chairman,
line in the original draft
We.tako pleasure in announcing that
•
to the effect that the Republicans
;
pledged to appropriate the amount
authorized/ But none of the so-
that? it-
associated with
:
-
r
Members:
PHONES-—Daly 5392
I
m*
'"k.
-m*
■
I,
IMVESTMENTiSECURITIES
Chicago Stock Exchange*
J
<
MILWAUKEE (2>
Chicago: State; 0933 4,'V?
-
m
■■
4
EAST MASON ST.
225
words since
the convention that the isolation
ists were definitely put in their
V.'
us as
Joseph Janareli & Co.
2
was? ridiculous. 4 Lodge
readily agreed* and it was with¬
drawn."
-/■? 4.;
now
Finance
Committee; did. • He pointed out
many
is
★f
jection tp this; Senator Milliken,
)* I have read
I MR. GEORGE W. HOFFMANN
4
Manager oj the Industrial Securities Department
called isolationists raised any-ob
Chairman pf the. Senate
:
4" A J*ro8peciu8 'Furni$hk4: oh Request I
4,
..
■ mm
mm
mm..
mm r-
Teletype MI 4S&
'mm
mm-
mm
mm
mm.
mm
120 Broadway, ;
4
j: New York 5, N. Y.
Telephone: BArday 7-7670 /
Teletype NY 1-315
a
/
8
(8)
THE
COMMERCIAL
&
FINANCIAL
CHRONICLE
^
.
tf;'1
Strength and Weakness oi Business Situation
Dealer-Broker Investment
By LAURENCE F. WHITTEMORE*
President, Federal Reserve Bank of Boston
■>
Federal Reserve executive, commenting
V
,
Thursday, July 1, 1948
Recommendations and Literature
business forecasts and government's dual inflationary and
anti-inflationary policy, points out forces sustaining present business are temporary and may go into
reverse.
Says credit expansion should be discouraged by all possible means, and retailers should aid anti-inflation program by demanding cash.
Stresses importance of balanced budget.
on
It is understood that the firms mentioned will be
send
to
interested parties
pleased
the following literature:
•
The business community has been subjected to so many speeches and official state¬
ments, warnings and exhortations, about the present and prospective state of business that
it is with considerable hesitation that I speak to you on this subject.
You will remember
both
tnat
the »>
expert and the
non
-expert
have
rather
a
batting
days just preceding 1929 when it
took a very .bold man indeed to
disagree
with
the
solemn
and
whom
from
have
a
in¬
time
from
weighty
pronouncements
leaders
in
business fore¬
dustry
casting.
economists
The
forecasts
the
f
few
wrong
years,
though
of
o
last
many
them
been,
have
were
probably
n o
than
worse
the average of
those
made
L. F. Whittemore
*
'
>
20 years or
so.
over,
Certainly
the
last
my mem¬
as
arrived
business
well
at
a
new
because
of
our
of
era
We
measure
it,
and
dropped abruptly off
that
when
we
we
most
certainly
have
at
least
in the latter half of 1946
^Remarks of Mr. Whittemore at
the
meeting
the
of
Connecticut
of. Insurance
Agents,
Poland Spring, Me., June 18, 1948.
We
were
shall
the
I have
who
have
pretentions
greater
1952.
to
than
expertness
mine,
I
not
off
weak
and
would,
points in the current
situation and let you draw your
conclusions from them.1 -t.
8,000,000
available
Also
Dr. Edwin G.
by a mul¬
beginning
of the
have
a
know,
Spring of 1947
we
Many of the prophets of doom of
that
of
Nourse, the chair¬
Council
of
Economic
inflation, and that there
others who can see it to
many
deflation.
He
of
was,
both
said
the
that
that we
He did not
course,
problems.
Commodities
statistics
and
contracts
for
the
deflation had swung
or
balance of the scale
ward-
His
one
toward
or
statement
does
to¬
more
the
reveal,
and it may* make you feel a little
better about the fact that the gov¬
ernment's policy in some matters
anti-deflationary.
On
the
hand, the banks are asked to
strain
one
re¬
credit
expansion, for ex¬
ample, while on the other hand a
system of government guaran¬
tees of credit in the housing field
is perpetuated and operates in an
inflationary
What
manner.
volume
Sustaining Business
to
of
sustain
Newspaper—C. Norman
Stabler—New York "Herald Trib¬
une,"
230 West 41st Street,
business
higher? First,
up
"Fiscal Policy."
Y.—Paper—$1.00 plus
20 sales tax in New York City,
Legal Investments for Savings
Banks in Massachusetts and Con¬
bonds
tures
We have had the
top of the previous level
government buying of goods
of
and
12
on
services
to
ture
15%
for
which
of the
all
services.
amounted
top
of
On
to
expendi¬
goods and
increasing
of
spending by state and local gov¬
ernments for structures and pub¬
lic works—for
example, the High¬
way Program in Massachusetts—
could
no
longer
be
de¬
ferred. On top of this program of
in
a
hundred.
of the world put together. The
United States has one telephone
cities with the most
for
all of France. In relation to
pop¬
four people,
telephone for
every ninety people for the rest
Sweden
' '
comes
telephones.
It has 2,600,000—more than in
ulation^ San Francisco is
with
every
with
closest
ranks
about
on
top;
telephone for
two people. Washington
a
one
close second.
expanded
tures
at
telephone
people.
there's
for
In the British
telephone for
one
five
Isles
every
And we're still building and
expanding at the fastest rate in
every,
eleven people. In Russia the es-
history. The value of telephone
' service is increasing constantly.
expendi¬
government
government
all levels
of
we have just witnessed the cut in
Federal income taxes which will
leave in the hands of the public
about $5 billion
for spending
more
than they would have had if taxes
had not been reduced. In short,
government spending is going up
and by virtue of the tax cut pri¬
vate
Market
1
But private
spending is also
enforced from another
are
Correction—Leaflet
on
outlook—Stanley Heller & Co.,
30 Pine Street, New York
5, N. Y.
Natural
Gas
—
Memo¬
available
memoranda
are
Eastern Air Lines, General Mo¬
tors Corp.,
and Philco Corp., and
a
study of Railroads.
I
Cleveland Cliffs Iron Co.—Anal¬
source.
re-
We
Industry—Study—
sixth
land
for
some
of
our
industries, and
(Continued
on
or
even
New
we
page
the
35)
the Colorado Fuel & Iron Corpo¬
ration and
circular of Railroad
a
■
Clinton
Machine
Company—
Inc.,
105
South
Street, Chicago 3, 111.
La
Salle
Electric Power & Light Corp.—
Circular—W. E. Hutton & Co.,
14 Wall Street, New York 5, N. Y.
Art
Metal
Company-
Market
Construction,
Railroad
Oil
Memorandum—Schafer, Miller &
Co., 15 Broad Street, New York 5,
Opinion and the Steel Industry.
1948
State
on
Earnings
N. Y.,
First National Bank in Dallas—
Esti¬
Dallas
mates—Analysis and tabulation- Memorandum
Rupe &
Ira Haupt & Co., Ill
Broadway, Son, Kirby Building, Dallas 1, Tex.
New York 6, N. Y.
—
II & B American Machine Co.—
Railroad Equipment Certificates
Valuation and appraisal—Stroud
Memorandum
&
Boston 3,
Company, Inc., 123 South Broad
Street, Philadelphia 9, Pa.
available
phia
Bonds
and
are
a
and
Yields
ton
Price-Earnings
on
123 public
&
R.
valuation
City of Philadel¬
Co.,
Hoe
Schirmer, AtherCongress Street,
—
50
Mass.'
&
Adams
Co., Inc.—Analysis—
105 West Adams
Co.,
Street, Chicago 3, 111.
Kingsburg Cotton Oil Co.—Data
.common stocks.
—Leason & Co., 39 South La Salle
Railroad
Industry — Detailed
analytical
study
of
outlook—
Bruns, Nordeman & Co., 60 Beaver
Street, New York 4, N. Y.
Solving Your Investment Prob¬
lems
Brochure
—
Street, Chicago 3, 111.
McDonnell Aircraft Corp.—Upto-date
memo.—Butler, Moser &
Co., 44 Wall Street, New York 5,
N. Y.
investment
on
Manual
trusts—Arthur
Wiesenberger &
Co., 61 Broadway, New York 6,
N. Y.
of
Sugar
Companies—
25th
Edition—300-page book of
historical, financial and statistical,
information
Sugar Do\im Through the Ages
—Brief
history of sugar—Lamborn & Company, 99 Wall
Street,
New York
5, N. Y.
Taft Wolverton Bill—Tabulated
Vilas
railroads
&
Hickey,
from
49
New York 5, N. Y.
Also available are
$2.00
(plus 2%
City)—Farr & Co., 120 Wall
Street, New York 5, N. Y.
the
bill—
Wall Street,
.
.
,
,
Metal
Current
.V
'.r- •'*:•••
*
Miles
Shoes, Inc. — Analysis—
Unterberg & Co., 61 Broad¬
C. E.
way, New York 6, N. Y.
y'~
Monarch
Abitibi Power and Paper Com¬
pany,
Ltd.
—
Circular
—
Oppen-^
heimer, j Vanden Broeck & > Co.,
40 Exchange Place, New York 5j
n. y
S.
R.
—Loewi
Co.—Memorandum
&
Co., 225 East
Street, Milwaukee 2, Wis.
Bank of Manhattan
Royalty
Melven
&
Co.,
Corp.—Data
125
Cedar
Street, New York 6, N. Y.
*
Montgomery Ward & Company
—Memorandum—A. M. Kidder &
Co., 1 Wall
Allis
Corporation—.
—
York 5, N. Y.
:
memoranda
Chicago, Rock Island & Pacific,
and Southern Railway.
Forming
bulletin
First Colony
Corporation, 52 Wall Street, New
on
V-*.
sales tax in New
York
,
estimate of annual savings to the
major
on the
sugar industry
with complete lists of mills—Price
.
N. Y.
Street, New York 5,
-
Mason
Company—
Circular—Laird, Bissell & Meeds,
120 Broadway, New York 5, N. Y.
National Cash Register
(Company
—Analysis—G. H. Walker & Co.,
1 Wajl Street, New York
5, N. Y.
Old
Ben
Coal
Corporation—Il¬
lustrated brochure
Eng¬
have not
15i
Street, New York 5, N. Y.
Also available is an analysis of
Broad
Empire
leaflets
just getting through what the
newspapers call the third round
of wage increases but what is ac¬
ysis— Eastman, Dillon & Co.,
Goodbody & Co., 115 Broadway,
New York 6, N. Y.
> Also
available are
Louis
also.
tually the fifth round
BELL TELEPHONE SYSTEM
Also
on
Co.,
spending will be able to in¬
crease
one
Corporation
randum—Smith, Barney & Co.,
14 Wall Street, New York 5, N. Y.
Memorandum—Ames, Emerich &
York;5, N^Y*
total
kinds
Federal government expenditures
we have an
expanding volume of
which
one
Corpora¬
Wall Street, New
utility
gram working ih the direction of
increasing government expendi¬
New York leads the world's'
Hanseatic
legal with statistics
relative to each
company and each
issue listed—R. L. Day &
Co., 14
to push it
have those
or
we
of the ERP Program and
the expansion of the Defense Pro¬
timate is about
York
tion, 120 Broadway, New York 5,
N.Y. ?
'
News,
now
Ratios
passage
di the world.
New
York 18, N.
current
the
forces which the economists lump
under
the
general
heading
of
telephones in
Bird & Son, Inc.—Memorandum
—New
Chrysler
a
and appraisal of
the forces which are
are
working
one
of
delivery
How to Read the Financial Sec¬
tion of
Also
Forces
compared to
of
N. Y.
is anti-inflationary and on others
this country than in all the rest
Bingham- Ilerbrand Corp.—
Memorandum—Wm. J. Mericka &
about
leading commodities—Bache &
Co., 36 Wall Street, New York 5,
how¬
the cautious policy which is
being followed by the government
with
respect to both ^problems,
every
information
future
other.
ever,
iSiilEyiLsiP^1:
on
Company
Co., Inc., Union Commerce Build¬
ing, Cleveland 14, Ohio.
1948—Manual
24
whether he thought the forces
of inflation
Tops in Telephones?
circulars
Company.
surance
on
would
say
about
leaflet
a
Advisers, made the extemporane¬ necticut—Booklets revised to June
recession (a recession, you ous remark recently that there are 1 and April 1, respectively ^ listing
U. S. Treasury,
municipal, public
is a small depression). many who cart see the major eco¬
nomic problem of the day to be utility,
railroad
and
industrial
the
man
had
more
is
in
that
are
Insurance
Fire and Marine In¬
own
told again
be
are
Stocks—Analysis—Ralph
& Co., 115 Broadway,
Falls
St. Paul
Samuel
of
oracles
available
Glens
New York 6, N. Y.
are
shall
Eighth Street, St. Louis 1,
Also
no
make you any forecasts.
Instead,
let me review some of the
strong
a
answer
There
North
Missouri.
United Light & Railways.
been
consistently wrong in the past
or
Bank
E.
any
year.
those
are
Who's
Stock
titude
iiife g"'-w"-x:
Association
ran
would
as
we
that
during those lush
Insurance
every
were
road
cliff
we
until
now
Since you are confronted upon
hand with forecasters whose
of caution.
told, for example, in
1945 that just around the corner
the
right
it be in 1949
the weightiest forecasts with
considerable
a
are
beginning
recession
that
England,
Will say, "I told you so," when a
recession finally arrives, whether
take
.to
New
than
more
prognosticating that
so
even
come
unemployed.
made
contin¬
that
have
in
Spring Of next
It is perhaps
experience since
1929
we
to have
seem
share
doubt
we
prosperity.
uous
we
our
now
from prominent
had indeed
as
that
and
ory is still green on the forecasts
were
and
and
average on
poor
Bank
Digest—Current developments—
Geyer & Co., Incorporated, 67
Wall Street, New York 5, N. Y,
Bearing Co. of America—Circu¬
lar—Dempsey-Tegeler & Co., 407
analysis—Comstopk
(Continued
giving 13-year
& Co., 231
on page
39)
Volume 168
Number 4712
COMMERCIAL
THE
FINANCIAL
&
CHRONICLE
-'v-^V;
By H. EARL COOK*
•/:'
y-V
"?
•••-:.r'-Director, Federal Deposit Insurance Corporation
^1
Asserting banking system is now so geared that
t ever before, Mr. Cook traces influence of better
eral Deposit Insurance Corporation has protected
lauds its work in forestalling bank failures
,
'
.
I
.
it
can
,
■
der
meet threats of crisis and depression better
banking
American
progress.
tremendously proud of the results our fore¬
fathers achieved in making this vast sprawling continent of contrasts—starting only with
wilderness and desert—the most bounteous, the most powerful and the most delightful
am
nation
in
proud of
Middle-West; and I
our
the
the New World
world; a na¬
tion which has
given
ity
to
one
willing to
every¬
work and pay
price
of
to you that the
banking
fess i
made
pro¬
has
o n
great
a
contribution
to
growth
our
nation.
as a
develop¬
would have
ment
Cook
Earl
H.
Without them
our
retarded
been
With them, and their
inherent American feeling of in¬
dependence,
we
have risen to
great heights. We have seen oc¬
indefinitely.
casional
crises,
through
many
and
error,
that all
passed
have
we
of trial and
years
cannot yet be sure
to the problems
we
answers
of financing soundly
such
agri¬
the
an
cultural and financial giant as
United/States have been solved.
The/uncertainties
ways
the
\vill
probably al¬
be lurking just around
corner—inflation
threat of
ing
shadows, overproduc¬
the
in
tion,
the
here,
there, deflation hid¬
war
unemployment and all the
other unpredictables of a
complex
economy.
the banking system,
Yet
lieve, is
the
these
threats
of
appearance
to
than
vantage
I be¬
geared that it can
now so
meet
discovered and
banks
new
was
established.
situation.
The
and
these
banks
way*
It
-f
was
•
";;V;;va
natural
secured
achieved
no
result
of
gree
rather
-V
r.
The
Treasury
personal
any
before
ever
of
better ad¬
much
in
its
history.
that
Secretary
war,
system
widespread
end
convinced that
repres¬
sive
in
under
measures necessary for estab¬
lishing a sound money system
may have been a bit too rigorous
at times and may have failed to
give the rapidly growing republic
sufficient money for the vigorous
business
expansion
which
was
taking place. At any rate, reaction
against the concentrated money
a
essential. With this
view he introduced a bill
which
local
banks were
Bank notes
a
national char¬
were
.
-
The
notes,
issued so seemed possible for any central¬ need for a more stable and ra¬
such a weak specie base, ized bank. From that time forth tional financial policy led to the
tlements made the need for credit led to coining of a phrase that still Congress has always protected the
establishment of the Federal Re¬
banking in these areas peculiarly is in our American language. They rights of the local bank from en¬ serve System in 1914. Under this
acute.
But where the traditions became so unpopular that since croachment on the part of any system the
rights and privileges
left by the goldsmiths had molded then anything worthless has been centralized system.
of
the
state
banks
have
been
banking customs in England along "not worth a continental."
After the termination of the maintained. Like other parts of
conservative lines, there were no
••; It
took the strong hands and charter of the Second Bank of the the
American
Government
the
such restrictions upon the think¬
the wise understanding of Alex¬ United States in
J836. the country 'organization of the dual banking
ander Hamilton to establish order reverted to a sfafe
ing and practices of the American
bankihl sys¬ system, as it now exists, depends
colonists.
They
needed money and to give real value to the tem.
The variety of interpreta¬ upon a series of checks and bal¬
quickly and, in what seemed in American dollar. With the inde¬ tions of the powers and limita¬ ances. Their main purpose is to
that
day, large amounts. They pendence prevailing in each col¬ tions on the powers of a bank
(Continued on page 39)
icas and later to India and China.
tinental.
Lack
freely
of
gold in the British set¬
May I trace for you briefly the
in which banking not only
has
adapted
itself to previous
on
This announcement is neither
an
The
offer to sell nor a solicitation of an offer to buy any of these Bonds,
offer is made only by the Prospectus.
crises but has influenced our his¬
tory?
One
might summarize the his¬
of American banking with
scenes from the life of Alexander
tory
Revolution, of Robert Morris pre¬
siding oyer the Bank of North
America, of Gallatin and Biddle
and their struggles to
Second
States.
^■'0ew^ork^TelepK6ne Company
establish the
Banks
Salmon
of
$90,000,000
%
Hamilton financing the American
Refunding 3% Bonds, Series F
Mortgage
Chase
P.
ing the War between the States,
and before our eyes the elder J.
P. Morgan would save the Treas¬
Dated
July 1, 19$
Interest payable
January 1 and July 1 in New York City
Price 101%%
I cannot presume to write that
book, but I should like to express
Copies of the Prospectus
few of the ideas I should include
if I were
its
Due July 1, 1981
*
and
Steagall each would
play an important part in the
story. There is no one book that
summarizes it effectively. Proper¬
ly written, such a book would give
life and prestige to the part played
by banking in the economic de¬
velopment of the United-States.
a
•
again.
Aldrich, Knox, Hepburn, Strong,
Glass
;
the
could recount his difficulties dur¬
ury once
sufficiently gifted to be
author.
,
There has
may
;
never
may
be obtained from only such of the undersigned as
legally offer these Bonds in compliance with the
securities laws
been
large-
a
and Acc
of the respective States...
scale
development of trade and
industry without a corresponding
expansion in banking. Each civ¬
ilization that has
ity
has
nance
the
had
its
to
come
find
trade.
It
is
a
BLYTH & COJ, INC.
*An
address
to
GOLDMAN, SACHS & CO.
client
LEHMAN BROTHERS
Mr.
Cook
be¬
fore the Wisconsin Bankers Asso¬
ciation, Milwaukee, Wis., June 23,
1948.
V
STONE &
June
Incorporated
SALOMON BROS. & HUTZLER
WEBSTER SECURITIES CORPORATION
19JS.
SMITH, BARNEY & CO.
UNION SECURITIES CORPORATION
J-
SO,
KIDDER, PEABODY & CO.
HARRIMAN RIPLEY & CO.
t ■!.'
Thebes,
exist, but when
by
GLORE, FORGAN & CO.
that
Rome and Athens was forgotten
during the Dark Ages when trade
almost
THE FIRST BOSTON
to fi¬
true
relationship between
MORGAN STANLEY & CO,
matur¬
to
ways
.and his banker in ancient
ceased
issued with
government bonds for their secu¬
printed notes.
again the
Naturally,
rity and state banks were starved
developments in banking had to some of these experiments failed
out of existence
and the early monetary history of
parallel those in trade.
by taxation of
their note issues.
In reality the customs of modern the colonies contained sad stories
banking took their rise from the of many bank notes becoming ut¬
The Bank Note Period
rules of the goldsmiths who set¬ terly worthless. The early settlers
In these early
tled
near
Threadneedle
Street, who established banks were not power of the bank induced Con¬
days the power
London, in the fourteenth century. bankers. They knew nothjng of gress to refuse to renew its char¬ to create credit was primarily
based upon the power to
In the beginning, when the Bib¬ banking traditions nor of the basic ter. Here was the beginning of a
issue
sentiment that years later crys- bank
lical veto against interest still was principles of economy underlying
notes.. The
tightness u or
talized in the form of distrust of availability of
observed, the goldsmith collected banking. If a little money was
money varied with
restrictions upon the rights to is¬
storage charges from the mer¬ a good thing, then more money Wall Street.
Five years of experiment with sue such notes.
would be better and they printed
chants for, keeping their gold in
The fulL possi¬
his strong boxes. Orders from the more than could be redeemed. state banks followed, but results bilities of credit banking were not
were
so
customer: to transfer part of his These new
thoroughly chaotic thai realized by the banks until a lit¬
bankers
themselves
gold to another merchant later be¬ were also in n o v at o r s.
They in 1816 Con gress granted a char¬ tle later in banking history when
came checks. The goldsmiths' is¬
thought
that
the
conservative ter to the Second Bank of the government taxation upon bank¬
sues; of - transferable
warehouse practices of English banks were United States. For a period under note issues had become so severe
receipts for convenient amounts a conspiracy against their efforts Biddle this institution :met the that such issues were no longer
of gold ultimately became bank
to better themselves. Their accu¬ needs of the moment quite effi¬ considered a profitable
privilege.
notes.
With the creation of a
Discovery
by the gold¬ sations against the British were ciently, but the old drive for more
system
smiths that it was safe to lend not unlike the later complaints of money, combined with Jackson's of national banks
existing side byon such warehouse receipts in ex¬
the West against Wall Street. The distrust of centralized monetary
side with state banks, the problem
cess
of the gold on deposit laid
financial chaos that resulted from power,
brought this
phase of of maintaining a consistent nation¬
American
the basis for modern credit bank¬ unregulated printing of bank notes
experimentation with al financial policy remained un¬
did not
The
ing.
United
put the colonists in a banking to a close. The die had solved.
States
was
y; y.y ■/ *1. V'A
Rapid rise in the volume of strong financial position to carry been cast, the American people still subject to greater fluctuations
wanted a banking system more in total volume of credit
trade with the New World spread
on
a war
against England.
The
than any
these new ideas first in the Amer¬ notes ceased to be worth a con¬ responsive
to local needs than other country. • Recognition of the
ways
United
was
banking
was an
established under
ter.
Chase
national
r
and
was
leadership
than
Banks Have Influenced History
First
that
the
de¬
by law. There was
national credit
policy. This was
Continental Congress to the crea¬
tion of a strong central bank with
The
uniformity
by
of
whatever
the situation at the time the Civil
War broke out. Before the end of
of\the
need for
uniform
regulation of
banking that led Hamilton and the
powers.
Secretary
•
I say
success.
was
trade began to expand
unlim¬
ited opportun¬
the
am
established
finally
9
prescribed by the various state
legislatures produced a peculiar
With
necessary.
'/a) first lessons in
banking in the New
World had been learned the hard
than
Says creation of Feddepositors against strongest blows of deflation, and
by aiding mergers of weak with strong banks.
on
were
the backing of Congress and un¬
der the guidance of Hamilton, or¬
;
\"y
diplomacy, integrity and
ony, tact,
firmness
The FDIC and Banking History
(9)
'
:
■
'
■
:
:
:
"
'
10 "
(10)
Commercial1 &* financial chronicle
the
Kellett's
Portsmouth Steel
Corporation
Pennsylvania Brevities i
-
Central Illinois Public Service
Beryllium Corp.
g
Data
Co.
BUCKLEY SECURITIES
CORPORATION
Philadelphia 2
New York 5
P£unypacker 5-5976
WHitehall 3-7253
Wire
Private
System
between
.
York and Los Angeles
Philadelphia, New
and
to
These
Stocks:g;sl§|
Philadelphia Transportation Co.
2039, Pfd. & Common
structure
Philadelphia 2
Phila. Phone
New York Phone
>
WHitehall 4-2400
Teletype PH 257
1 1
which
has
American Phenolics
and
of
action
claims
against
or
causes
Philadelphia
That
George permitted
Palmer,
commercial
C.
D.
in
Company
claims
against
That George permit¬
a
com¬
mission for his real estate firm,
Byllesby & Company
PHILADELPHIA OFFICE
Stock Exchange Bldg. Phila.
Telephone
'
I Teletype
PH 73
RIttenhouse 6-3717
by
Equitable
Real
Philadelphia
Estate
Company
Co.,
subsid¬
iary.
2
stated
that
it
That George is a director and
stockholder
of
People's
First
the
the
reorganization
the
traction
await
analysts,
disposal
properties
final
a
and
before
of
must
determination
of
validity of Phila¬
Railways.. Hear¬
Federal
Court
in progress on
this matter,
the burden of proof resting upon
Philadelphia Company to estab¬
lish its claims.
*
hArRISBURG—A
in the
further
step;
dissolution of Philadelphia
Company was taken when the
Pennsylvania Utility Commission
approved
transfer
pany's natural
the
State
to
able Gas.
a
of
the
Cambridge Bldg. 3s 1953
cessors
its
prede¬
have had many business
relationships with
Company,
Pitts¬
burgh Railways Co. and subsid¬
iaries.
Phila. Transportation Issties
That
as
indenture
tee for various bond
Lehigh Valley RR. Annuity 4%
bank
with
Jersey Gas Common
has
the
curity
interests
interests
of
other
se¬
creditors
and
stockholders.
members
Philadelphia
Packard
Bldg.,
Stock
Exchange
Philadelphia
Teletype
2
N. Y. Phone
COrtlandt 7-6814
PH 375
The SEC petition avers that the
intercorporate dealings and transactions between
Philadelphia
Company and its subsidiary re¬
quired
study
"disinterested"
and
appraisal
persons
City
Ind.
Nor.
Elec.
Distilling Com.
Pub.
Phila. Elec.
Serv.
Co.
Richmond Cedar
Roberts &
*
Com.
Last
Com.
Common
Wks.
petition
says,
but it
will
be
an¬
swered in court in due course."
Com.
to
Penna.
proceeds
New York
San
Boston"
has
agreed
properties
to
sell
Penna., to
and
1500 Walnut
'Phone
SECURITIES
St., Philadelphia 2
KIngsley 5-1716
Branch:
Tri¬
bune,, 230 West 41st Street,
New
York 18, N.Y.—paper^$1.00
2c sales tax for New York
(plus
International
its
franchises
gas
College,
Ind.—paper.
in
of
the
put,
Aircraft
B.
1947.
About
plants
with
half
for
have
Kellett
reported
to
Aircraft
of
in J
15%
Phileo's
Judge
McGranery that Fairchild Engine
& Airplant Corp. has offered to
buy the helicopter division of
directly
television, final
taking place at the
assembly
$3,000,000
new
>
Philadelphia.
There
plant
broadcasting
.
Planning —John
by
Macmillan
Co., 60
Avenue, New York, N. Y.—
cloth—$3.75.
Fifth
18 television
stations
operating
Philippines
there will be 60r sta¬
tions active In 37 cities by. the
1948.
book of trade and
and
figures
—
-77 77v;; 7
on
Request
'■
.•
❖
by
&
Co.'s
largest
has
far
striped
this
in
Gloria
the
Waldron
Dewhurst
bass caught thus
off the Barnegat,
year
J., jetties.
checked
7
mittee,
F.
and
Inc., 22 East 38th Street,
on
Profits
and
Domestic
Exchange,
partner in the Ex¬
Ohio
State
June
jumped
26
terrace of
a
when
the
from
are
—
.
What
Doing to Meet
the Needs of
he
fell
friend's
.
Bank
Regulations
•""'V'-'
;
.
1
a
ings
t
change
limitedt
partner in Breining & Co., died on
Chicago
3,
in
Concerning
Gold
Deal¬
and
Foreign Ex¬
France—4th
supple¬
lit
ment—Bank
for
International
Settlements,
Monetary and Eco¬
Department, Basle, Swit¬
zerland—paper—7
Swiss
francs
(complete compilation — original
nomic
June 22.
on
edition
Western
7::>
Building,
111.—paper.
apartment.
>
Frpnklin S. Jerome,
7.7 )
tion
or
fifteenth-floor
•
7
and
four
supplements
which have appeared to date—50
Swiss francs).
Pennsylvania
Issues
Role of Inventories in Business
Cycles, The—Moses Abramovitz—
Direct Wire to New York City
National Bureau of Economic Re¬
CHAPLIN
REctor 2-6528-29
Lancaster
University,
'*
7'
Columbus 10, Ohio—paper.
Railway Preparedness
-:: *
Scranton
search, 1819 Broadway, New York
23, N. Y.—paper—50c. 7- V
COMPANY
and
Members
120 BROADWAY
rr*
Ohio
lege of Commerce and Adminis¬
tration,
change firm of Charles F. Hen¬
derson
&
Sons,
29 Broadway,
New York City on July 1.
NEW YORK 5, N. Y.
Pittsburgh
of
Today and Tomorrow
Jean B. de Chadenedes, retired; —P. Harvey Middleton—Railway
Business
investment
Association, First Na¬
broker, ' was
PHILADELPHIA 9, PA.
-
Export
on
Sales
Van Cleef-4Bureau of Business Research, Col¬
of the New York Stock
a
Frederic
J.
Exporters—Eugene
Henderson, member
will become
and
Public Affairs Com¬
—
New York 16, N. Y.—paper—200.
Weight, 32 lbs.
To Admit Chas. Henderson
Charles
_^.7^7*'"':
Power, Machines and Plenty-^-
Philadelphia trading
department
Philippines, Manila, P. I.—
Paper.
$
*
Alfred J. Willis of H. M. Bylles¬
Incorporated
Allentown
of
Commerce and Industry, Republic
of the
7 STROUD & COMPANY
PEnnypacker 5-7330
Department
end of the year and perhaps 200
Trading Department Active in
.7
The—Hand¬
economic facts
stations by the end of 1949.
"Utility Common Stocks.
.
Hart—
stock
Price-Earnings Ratios and Yields
Copies
Gailord
Albert
—
Ordeal
mates.^
Valuation and Appraisal
.•-£•
and
New YorkCity—
' '
IS :
-I!
Jewkes—The
north
'
now
are
in
Franklin Jerome Dead
123' Public
manual
sugar
to production of
trus¬
Corp.,
in
interested
Prentice-Hall, Inc., 70 Fifth Ave¬
nue, New York 11, N. Y.—cloth-1$6.65.
17<
Prices
Federal
Companies—
Reference
Money, Debt and Economic Ac¬
tivity
contribute
now
those
Cloth—$2.
Corp.
Shilling, reorganization
Sugar
—
Haute,
The 1948
year.
compared
N.
Kellett
Edition
Terre
Street,
properties
Effingham B. Morris and Paul
Trading
Wall
end
production of television sets will
be about 80% of radio set out-t
in
Lancaster
of
Manual
25th
receivers will reach
annual rate of 400,000 sets by
the
}
County to a new company to be
organized and owned by United
Gas Improvement Co.
Security
O. Kamm—Indiana State
—Jacob
Teachers
new
City
residents).
V
;
York
companies—Farr & Co., 120
N. Y. Stack Exch.
-
v.,
Pitts. Stock Exch.
New York Curb Exch.
(Assoc.)
Carter
;
!
.
10th Floor, Peoples Bk.
Bldg. *
PITTSBURGH 22, PA.
Tele, PH 677
Dime Bldg,,, Allentown, Pa.
f
Balderston,
Herald
con¬
*
Philco Corp.
Harrisburg
123 SO. BROAD STREET
'Incorporated
INVESTMENT
*
RAILROAD EQUIPMENT CERTIFICATES
:V-;f
i
for
the balance to
Secy
Newspaper—C. Norman
a
sugar
killed
STOCK EXCHANGE
Iharles A.Taggart&Co.
77y* y7i
,
an
gas
franchises
and
Carlisle,
Co.
its
CITY OF PHILADELPHIA BONDS
PHILADELPHIA
used
of
Stabler—New
television
Pennsylvania Power & Light
Co.
Valuation and Appraisal
v.,'
MEMBERS
be
How to( Read the Financial
tion
for
Chicago
Francisco
60 John
York, N. Y.—paper.
President of Philco Corp., states
that
company's production
of
on
Available Publications
Incorporated
Philadelphia 2
will
Association of
Street, New
Backman—Surety
Our Rail Lines
/
PEnnypacker 5-0100
Foremen's
America,
unsecured
an
struction purposes,
week
Power & Light Co.
.
Capitalism?—
or
Harry Desmond Farren—National
'■*y
de Chadenedes Dead
E. H. Rollins & Sons
'
«4»vsc*«-
parent, Associated Electric
for $1,600,000.
Most of the
Mander Common
1528 Walnut St.,
i
f
its
Co.,
Offered only by prospectus
Bought—Sold—Quoted
y
a
William
interest
various
Co., 36
&
of
promis¬
sory
note for $1,900,000 to
the
'Mellon National Bank & Trust
Co., Pittsburgh, and an additional
80,000 shares of its common stock
during litigation, are now"
Contingent
Bache
Communism
in 15 cities. Mr. Balderston esti¬
tees
Asked for comment, Mr. George
said, "I don't know what the SEC
April
.-jjvJ
>
i
by
affecting the
of
as
of
delivery
—
Statistics
contracts-
Wall Street, New York 5, N. Y.
Under arrangements approved
by the SEC, Pennsylvania Electric
reduced from 80 cents to 30 cents.
that
and
operation of the business.
^Atlantic
Merchants
v
clared for payment July 1 and the
George's activities have not been
restricted to matters
deficit
a
j.yk
;"
—
future
commodities
Pennsylvania Electric Co.
Pennsylvania Supreme Court
upheld; the schedule of fare iricreases
filed
by Phila. Trans¬
portation Co. early in the year.
Millions
of
"fare
receipts," re¬
quired to be issued by the Com¬
and;
Samuel K. Phillips & Co.
v
»
-
•
Co.
Gas
holders,
for
16
—
about
information
Institute, Inc.,
Deep
River, Conn.—paper—10-15 copies,
15c each; special rates on larger
$86,213.
The
J/ l, ':
'company, under trusteeship, has quantities.
ialso been engaged in the manu¬
Economics of Suretyship—Jules
facture of refrigerators.
the
trus¬
conflict
July
properties in' pay off $500,000 of
existing notes,
subsidiary, Equit¬ notes.
PHILADELPHIA
issues, the
in
set
$453,374.
Operations from
Oct. 18, 1946 to April 30* 1948, re¬
Philadelphia
Pittsburgh Hotels 5-1967
South
predecessors.
and
and financial
,1500 Walnut St. 6-1950
;
its
Commodities —1948
and
inde¬
an
gas
regular preferred dividend of $1
annually has been restored. Com¬
mon
dividend, however, has been
of
bank
a
indicated
was
flected
com¬
stockholder
this
of
Kellett,
Report to the court stated that
7
void.
have
company's net worth
30
P.T.C. Fare Rise Upheld
pany-
plan
W.
McGranery
Co. will Sell
Preliminary Step Taken
W.
the date for filing all plans.
as
„
the
proposed
a
official,
Judge
P.T.C. 3%-6% bonds has been de¬
-
the
pendent plan of reorganization.
same company.
National Bank & Trust Co. and
for many years was director and
That
that
that they might submit
was
in
nor
in
former
the
grounds exist for
no
the
President, and R. G. Kellett,
Company
month,
necessary
be owned by
subordinating Phila¬
Company claims.
George Bros., on the sale of land
H. M.
last
In the opinion of many
|
the
Hughes Air¬
stated
reorganization.
1
of the
Trustees
porated
public interest for the Railways
Co. and Duquesne Light Co. to
ings
Philadelphia
on
That George obtained
Light
neither
or
delphia
Stromberg-Carlson
SEC
Commission
manager
the preparation
trustee's report
told that
was
The
v
'
Philadelphia
the
are
i
to
approval,-
helicopter division.
My-
delphia Company claims assert¬
Pittsburgh Rail¬
Co., to play a "dominant
limiting
Kearney & Trecker
on
Company.
cluded that
Gisholt Machine
&
had
by
ed against the
determine whether the Rail¬
Co.
Defensive
the status and
ted Palmer to prepare and write
most of this report, which con¬
•
Dayton Malleable Iron
Power
under
George, between 1938
1948, failed to investigate
Railways.
Botany Mills Com. & Pfds.
Wisconsin
operated
That
role"
-
been
system
and director of
American La France Foamite
,
transit
trusteeship since 1938.
In its 23-page
petition, the SEC
charges:
ways
Camden Forge
as
complicated
to
H.N.NASH&CO.
Locust 7-1477
con¬
as aggressive
steps in ex¬
pediting - the
simplification
of
Philadelphia
Company's
corpo¬
ways
Street,
are
subject
craft Co. is also interested in
In the divestment order issued
against
developments
terms,
Fairchild offer would be incor¬
Philadelphia Company
of
strued
the
Bank & Insurance
Chestnut
network
required by the
provisions of the ' Public Utility
Holding
Company 7- Act. and of
forcing a quick reorganization of
Philadelphia
1421
its
other interests.
rate
3-6s
dissolve
stockholder
less than two weeks after the SEC had ordered
came
Philadelphia- Company,
holding^
company parent, to dispose of its
transportation and gas properties
44 Wall Street
V
1420 Walnut St.
The action
the
and
court
PITTSBURGH—George Zolotar, attorney for the Securities &
Exchange Commission, has petitioned Federal Court for the removal
of W. D. George from his position as trustee of
Pittsburgh Railways
Request
on
indi- '
was
that
would permit payment of all Kel¬
lett's unsecured claims in full. The
SEC Petitions Ouster of Trustee
.
business.* It
cated
court
Seminole Oil & Gas
.
Thursday, July 1, 1948
Grant 3900
-
'
;
-
•"
Bell
«.
NEW YORK, N.
>r
:
61 Broadway
T.j
Bowling Green 9-3987
System- Teletype—PG 473
'-Vl
(Special
Corbrey Co. Adds
to
The
.
Financial
Chronicle)
LOS
V.
ANGELES, CAL. — Park€
Daly has been added to the
staff of Carter H. Corbrey &
Co.j
650 South Spring Street.
Volume
168
Number
COMMERCIAL!FINANCIAL
THE
4712
pany stated the drop in earnings
reflected a sharp decline in their
Prepare for Sellers' Markets! ;
Oil
burner business.
continued
Appliances,
on
accepted.
rule—not
The
the
It
that
in
sincere
of
in
be
spite
may
forts
.
in 1946.
housefurnishing
of
seven
in
as
times
1946.
shops
■
as
first among the large manufac¬
turers to hit the toboggan were
some
in
the | electric
unwilling
like
to
to
buy
all they
present prices.
at
consumer's
spending dollar.
do, the manufac¬
appliance
we
turers'
distributors'
and
retailers'
with
of
price
business
the
and
will
drop
and
cess—and
the
of
indus¬
one
s e
termed
1 f
Brig. Gen. E. F. Jeffe
counselors
business
and
organization - master - minds
are
presenting
plans
for
artificial
policing and regulation of the in¬
dustry—all of which are intended
to hold prices up.
It seems to be the
thought of
joining new as¬
"these some" that
sociations
will
do
trick.
the
I
may
be
The
"look"
Wares
and
I
trust
stores
your
dicates
cus¬
after
and
your
attract
customers.
And
it has become habitual for
as
become
joiners
organizations,
of
too it
so
cinches when it
are
.
at
our
•
business
through
stimulation,
the
"present rate" market for con¬
goods will shrink steadily.
"wolf.? In spite of .the general in¬
in sales,
the downward
trerid of retail profits continues.
of
none
normal
us
business
increases
crease
which
will consider
as
those
created through
priming which! results in only
Recently a number of companies momentary stimulation. We need
passed dividends. One such com¬ to take a long range view or else
surges
are
the
poor
Our' company has
cuse
H
some
if
they
7
it
see
stores.
displayed
and
rise,
little
a
ahead
selling, why
sincere
about
price
controls
saley
k
offer to buy,
or as an
or as a
new
as
enough
soon
as
And
if
we
cooperatively
down
from
being
dusted off. Evidently, in
minds, door to door selling
some
is the
magic wand for the
lines, the new names, the
prices, the new guarantees
S
most
important
tomers—will
dom
field.
when
from
of
all,
secure
want
;
in
our
the
appliance
7
If it is necessary to attract buy¬
ers to our
wares, and I am certain
it is, we must increase store traf¬
your
fic
as
well
as
field
selling.
Geldmacher & Matz Open
combi¬
(Special
business fails to
to
The
Financial
Chronicle)
;LEWISVILLE, OHIO
,
—
new promises. But
maybe they
forget that door to door, commis¬
sion selling is rather an expensive
item—for the customer.
engaging in
a
securities business.
other
or
in the
V
" 7
-
'
t
'/? .'■
^
7
,;:V
:
eyes
'•!
.J
'
Company
5% Redeemable First Preferred Stock
;
Sales Resistance Ut Sight
Somehow
7
Pacific Gas and Electric
the
7
' ■'*
■
■
'
-
-
,
Par Value $25
per
share.
,
.
.
.
of many of the new manufacturers
in
the
industry—as well
of the
come
old
timers—who
prosperity
lazy,
as
some
have
our
be¬
cus¬
tomers have become unreasonable
because they are not standing on
line
bidding
their
for
chance
for
Even
a
the
merchandise.
tricks
of
down
no
over-extended
to
seem
be
payment and
do y not
credits
the
drawing
magic
buyers
They are
critical of both quality and price.
reward.
The
demands
The
velopes
is
fact
merchandise
are
Copies of the Prospectus may be obtained from the undersigned only by persons to whom
undersigned may legally offer these securities under applicable securities laws.
that
wise.
their
on
pay
the
en¬
confining purchasers
to items which' are needed.
<
are
Customers
accept
not
willing to
day
appliance
are
present
Blyth & Co., Inc.
prices. And it is hardly fair for
to
push suppliers for
lower prices if labor and material
Dean Witter & Co.
retailers
costs continue
*
If
our
Incorporated
to'pyramid.
share
market shrinks
of
the
Lazard Frferes & Co.'
tion's
recognizing facts. The
is catching
the
demand.
Production
and while the rate of
the United States
a
crease
;'> I
new
is
,
.
,
7-
•«
.
77:-7
•
:
Kidder, Peabody & Co.
Union Securities Corporation
-t<7f '
Lee
to be set¬
Stone & Webster Securities Corporation
;7
'
§;77
•
7777
v ■■
■
■
•
7)S77 77;ri(
77777'
i
v7'7:j',77
Higginson Corporation
.
.j7t.v{'7
White, Weld & Co.
-
77.7'; "'•77 ' 7 777 777.77;7'."7;7777/77777-:.,.7 v: 7(7:;7'
r
Merrill Lynch, Pierce, Fenner & Beane
peak, the rate of in¬
we
do
slackening. >
need
a
New
Look but I hope it will not be one
which
Glore, Forgan & Co.
up
spending in
seems
in spending is
believe
Goldman, Sachs & Co.
na¬
fairly balanced in most industries
ting
Smith, Barney & Co.
<
•
we can
production
with
7
Eastman, Dillon & Co.
consumer
only blame
ourselves for failing to be realis¬
tic and
Harriman Ripley & Co.
hides
our
best
selling
points.
; *, We ought to dress up our stores
and r rejuvenate
our
ideas. We
Elworthy & Co.
-17777
i7o7:'777 > 77v^^; 777::77;'7: ,7 ;^ ;7:'§..
W. C. Langley & Co/
Hemphill, Noyes Sc Co.
-
''77>7 7 7:'7-;
,
J
■
7-:
Hornblower & Weeks
:7; 77.7V;7:v^7-:77" 7 '7'7v
'
Paine, Webber, Jackson & Curtis
.
Schwabacher & Co.
„
must
do
what
is
necessary
and
not
Brush, Slocumb & Co^
take the. continued
increase in failures in small firms
as
something to be expected and
A. G. Becker & Co.
:
*From an address by Gen. Jeffe
before* the
Cooperating Appli¬
ance
Dealers,
Wertheim & Co.
Incorporated
to
stabilize the appliance retail busi¬
ness
Weeden & Co.
-
.
New
York
June 15, 1948.
City,
"-'N:
Incorporated
June 30, 1948.
.^
'
.>
.
r..
(
Shuman, Agnew & Co.
•.
-
/ First California Company
", 7
-
;
7
Glenn
Geldmacher and Harry J. Matz are
healthy, .continuing profit
don't be satisfied with ex¬
a
SPfWWM1,000,000 Shares
!,-V-
cus¬
♦
new
and
con¬
complete free¬
of record only and is under no circumstances to he construed as an offering of these Shares for
solicitation of an offer to buyy any of such Shares. The offering is made only by the Prospectus.
new
to
su¬
collectively
our
job,
are cpming:
shelf
and
are
the
its
do
The old techniques
,
the
much
you.
liberal
This advertisement appears; as a matter
—-
for everybody but themselves.
of
so
have come to the
Conclusion, after a review of the
history of operations of. these
"champions," that indeed they are
I;
selling job—in
your business—and
be
us
shortcomings.
then all of us—the manufacturer,
the distributor and you, and the
nation of dealers.
show
Don't
a
better for
veloped.
that the money spent in this
advertising by our company is far
beyond the promotional budget of
your
late
a
servative enough to hold on to the
old until something better is de¬
Without fear of contradiction I
if
year
fairly
periority is established and
place
say
And
are
to do
adopt the
*
the average dealer or any
is
New Selling Job
a
doing
phase of
Let
many
in
weather
year as compared
Don't be satisfied with
your own
you
the
1 buyer
Emblem
whole,
one
Start
need
display and direct-mail advertis¬
ing to acquaint customers with
your part in the Cooperating Ap¬
pliance Dealer Plan and the sig¬
the
,
every
thousands of dollars in newspaper,
bill board, truck poster, window
of
in
Start
just
to dis¬
spent
the
build up a complex against your
suppliers and your buyers to ex¬
appears we
knows in which emblem to
the
on
the
to others.
multiplicity of emblems.
display many emblems
II wonder ) how
that
the explanation that it was
Winter or an early Easter.
numerous
comes
sim¬
with
the
weather—for
of weather records in¬
year,
average
When you
.
sumer
I trust
a
too
sound
satisfied
that it's
review
a
methods of operation.
support is not making
our
nificance
of long range. Ex¬
one
cept
department stores
than the cry of
more
the inevitable
decrease in rate
Long Range Look
.
The danger signals arid the drop
in unit sales in
buyers' confidence in
in
Don't be
.
excuse
11
I
admit
must
A
should be
Retail Profits Declining.
come
use or
growth of electric, consumption.
cob-
webbing of prpduction If abilities.
-
it, will
decrease in
changed from scarcity to ex¬
with it. Came curtail¬
ment and shutdown and the
try. Now a
thousand and
renew
to
And Unless
ture
efforts
ple.
his confidence and trust.
■
the downward
a
traffic
playing
field. Over night the fractional
horsepower motor production pic¬
probably
stop to
put
tomer
the
up
a
large
Practically the
raises
planations which
car¬
to the buyers, we
wares
ingenuity and co¬
operation of the best ability and
planning of our industry will be
necessary to get our full share of
made
wage
swinging
have endeavored to stimulate
whether they
or
The exercise of
ap¬
down,
rying our
to
can
unable
are
would
many
Electric
ourselves
J To' tie in With- our plan of
;
draw your
whether
cus¬
You
year.
conclusions
own
many
as
prices
will
last
are
1947 as
part of the total.
hold
to
were
pliance
ef¬
in
failures
1947
times
Four
failed
stores
exception.
■
of
tomers
firms
find
at the ball after it has passed.
shipped in February and the total
shipment in March, 1948 was only
about 20% of the number shipped sibly that is why some dealers
in March, 1947. Unfilled orders in continue to hide the Cooperating
this group show an 88% drop from Appliance Dealer Emblem in their
the unit's on order on March! "31 storerooms instead of displaying it
the whole, both gas and electric,
cutting is the
trend
will
we
(id
it too easy—for that would result
in a tendency to become soft. Pos¬
signs indicate that the heat of competition is on—more manu¬
facturers, more dealers, more products and greater production capa¬
cities than ever before.
More appliances to choose from and more
ready
Price
downward
.
All
in
the
began in October, 1947. The
March
shipment
represented >a
24%
decrease) from
the
units
Jeffe, in pointing out heat of competition is now on, calls *
attention to resistance to rising prices of appliances, and says the
old prewar intensive selling policies must be restored.
Does not /
look for lower prices: if wages continue upward or if artificial <
policing and regulation of industry is restored.;v
supply.
of
that
General
are
March
factory shipment of oil
totaled 19,000 units and
burners
Vice-President, Consolidated Edison Company of New York
choosier customers.
In
this year,
'
By BRIG. GENERAL E. F. JEFFE*
CHRONICLE:
Mitchum, Tully & Co.
Walston, Hoffman & Goodwin
THE
(12)
12
COMMERCIAL, &
FINANCIAL
President, Credito Internacional, S. A.' of Mexico City
,,
This Week
—
Insurance Stocks
111.3 in the Standard & Poor's
1947 low,
zation
weekly Index.
.
.
supplementing World Bank and International Monetary Fund, and wants Latin American Industrialiencouraged. Sees no impending depression in U. S. and offers five precepts for aiding Mexican
lows in May 1947
their post-1942
Liquidating values of choice fire insurance stocks can be bought
today at generous discount's. Figures tabulated for 20 * prominent
stock fire insurance companies show that the investor's dollar can
now purchase, on average, $1.34 of liquidating value, ranging from
$0.96 for St. Paul Fire & Marine to $1.88 for National Fire. Invested
assets of these companies exceed liquidating values, quite substan¬
tially in many instances, with the result that $1 can currently buy
approximately $1.50 of invested assets.
7i". *:
r.
c
i
Based on 1947 total net operating earnings, the average earning
yield to the investor is 6.8%, which is low for insurance stocks, and
is only 1.8 times the average dividend yield of 3.8%. To put it an¬
other way, earnings are being capitalized at approximately 15 times,
which is high compared with the low capitalization being placed by
the market on good quality industrial stocks of between six and
seven times.
Probably 1947 earnings of fire insurance companies are
being capitalized relatively high today in view of the improved out¬
look for underwriting profits, following a series of four lean years.
economic and commercial progress.
There m na Soubt;thatj due to the serious problems of
readjustment in the postwar
period, to the elimination of distances caused hy modern means of transportation, to the
necessities created by a higher standard of living, to the commercial and economic mal¬
v
adjustment of the world and to^
or scarcity of dollars in
interest.
These
are
symbols of a supply of dollars and a market
for Our products.
practically every nation, outside confidence.
This, I am quite
of the United States, there exists,
The regulations of the Treas¬ sure, will be done, but even then,
and we must acknowledge it, a ury, of the Banco de Mexico and it will not provide a
complete
greater
interdependence, ; much of the National Banking Commis¬ solution to all our problems.
'A'";'--; *■'../ •'
greater than heretofore, between sion, which institutions regulate
the lack
all the nations of the world.,, We
•
"
^
a
'
Liquid
Aetna Insurance
6/24/48 12/31/47
Boston
44V2
,
Agricultural Ins.
Insurance
Continental
Ins..
64
-56%.
.
Fire Association
Hanover
__
^
Hartford Fire
Ins. Co. of No. Am.
102
National Fire
,84.93
,45
Newj
Hampshire
River
North
Phoenix
Prov.
Ins.
4.8%
109.24
;
84.74
0
3.97
1.18
Yield
4.0%
$1.80
3.00' 4.9
2.40
■
9.2
5.86
3.7
3.4
2.20
9.3
2.00
6.1
5.50
:
Divid.
3.4 4
5.42
9.6
2.50
4.4
1.16
11.59
10.9
3.00
2.8
:
1.36
2.89
8.9
1.20
3.7
ih
1.51
1.47
1.54
5.5
1.20
11.87
10.6
2.50
2.2
1.07
7.71
7.6
3.00
2.9
0
2.00
4.4
1.88 —2.14
Mexico, nor can any
nation, close its eyes to what hap¬
pens
in other countries, or in
other continents, and think that
its
life will
own
not be
Narrow nationalism
exist.
chology
change.
and
affected.
can no
We must broaden
adapt
it
longer
our
to
In Mexico
have
we
a
An
Inter-American Bank
'
commercial banks, have, at
times, been looked upon as oner¬ ;
Experience has snown us that
ous, but who doubts, for example, credit institutions such as the In¬
that the heavy reserve of 50.% of ternational
Monetary Fund, the
the deposits, though bothersome, World Bank and the
Export-Im¬
has been a blessing, since it is re¬
port Bank are not adequate to
sponsible, in part, at least, for the meet the necessities created by the
the
psy¬
unlimited confidence which exists
this
throughout the world and Mexico
itself oft the solidity and sound¬
ness of our banks?
Imagine for a
.
profound
interest in world events, but par¬
ticularly in the economic move-,
rhents; which take place in our
neighboring country to the'; North.
We are so close to it, and that
great country wields such tre¬
moment, the severe crisis, or per¬
haps the parji£, that might have
-i*.
influence in
the
entire
world that its problems and eco¬
nomic
developments are : of a
This
exist!
economic
ment which has caused our cen¬
tral bank and other financial
4.1
2.00
4.8
1.20
1.52
6.1
1.00
4.0
84%
114.86
1.36
6.03
7.1
3.00
3.6
45.72
1.41
1.71
5.3
1.40
4.3
we
75.70
45.75
0.96
9.07
11.6
2.00
2.5
1.73
1.39
5.2
1.40
5.3
imposed upon us by our profes¬ readjustment will improve our
sion, which is to protect the in¬ economic position and solidify it.
terests
of
ottr
Sacrifices?
Of course, it shall
depositors And
stockholders, of giving impetus to be necessary for all, rich and poor,
t^e economic development of the government and people,, bankers
country and of cooperating with and industrialists, employers and
our fiscal authorities.
employees, merchants and farm¬
During long years, 32 to be ex¬ ers, to make sacrifices for the gen¬
act, I resided in the United States, eral good of the Nation. It is all
first studying and then practic¬ worth it, if in the end we create
ing the professions of j banking. a strong structure, capable of giv¬
About one and a half years ago, I ing Mexico the industrial, agri¬
32%;
~ 78%
Security Ins.
Springfield F. & M.
-
26%.
44%
■
53%
U. S. Fire
55.69
1.24
2.55
5.7
1.90
4.2
74.15
1.38
3.98
7.4
2.00
-
3.7
Averagefy-.
3.8%
6.8%
Jfrl .f4
^
The accompanying table gives price ratios for 20 leading stocks.
Two companies, viz. Agricultural and National Fire, reported net
Operating losses in 1947, despite net investment income of $5.44 and
$3.79 respectively, which were well hi excess of dividends of $3
find $2. Their 1947 underwriting losses were very high, amounting
to $10 per share in the case of Agricultural and $5.83 with National
Fire.
support the plan of organization
«.
1.72
-
countries.
We live in an age of
specialization and I consider urg¬
ent and essential that we should!
developed during the months of of an Inter-American Bank,. th^
economic
readjustment, if this capital of which will be % sub¬
implicit confidence in the strength scribed by all the Republics of the
and solvency of the banks did not
Hemisphere and, with a high spe¬
1.19
Washington
industrial and economic develop¬
ment
of
the
Spanish-American
readjust¬ cialized personnel.
Its main aim
should' be to; give full support,
au¬
after careful study and analysis of
great importance to us as bank¬ thorities to take, drastic steps to the peculiar conditions of each
ers.
We must study them and an¬ protect our currency and our dol¬ country, to the general develop**
alyze them with calm and vision, lar reserves, can, and should, be, ment of the less industrialized na¬
so
that, if possible, we may be beneficial, because it serves to tions, to increase the international
prepared to avoid any adverse re¬ point out whatever the weakness trade between the countries, to
action from them to our own in¬ of our economic structure may be. channel the movement of capital
terests. Thus; and only thus, shall I have great faith in the future of and investments from one count-*;
mendous
4.2
1.23
in
.49.85
29.94
St.; Paul F, & M—
I;:
$2.13
1.61 —4.52
Annual
Divids.
cannot
42
*■
.24%.
,
««_..•
$1.46
1.25
123.10
43.89
28^
41.40'
412% : 137.92
Fire
Yield
1.15
106
32%
,—■
Earns.
67,91;
75,46
.
Earn.
Net oper.
$ Mkt.
81.98
59%
«
-
Fidelity-Phenix
Firemen's Fund
Great American
$65.14
97.93
61
65%
_
1947
Liq .Value
per
,
M
Prominent Mexican Banker points out close economic and financial relations of Mexico with United
States and its bearing on Mexican prosperity and progress. Advocates an Inter-American Bank as
at
They closed the year
11947 at 118.3, a gain of seven points or 6%. In 1948 they moved up
o 135.7 by June 2, a further gain of 14.7% and a total gain of 21.9%.
However, between June 2 and June 26 they receded to 129.9, a level
Jiat is still 9.8% above the 1947 year-end index and 16.7% above the
hit
stocks
§1
By J. M. O. MONASTERIO*
By E. A. VAN DEUSEN
Fire insurance
Thursday, July 1, 1948
International Aspects of Mexican Economy
Bank and Insurance Stocks
*
CHRONICLE
fulfill
the
sacred
obligation
Mexico and feel certain that this
try to another, to create
elastic securities market,
general to strengthen the
cies
and
promote the
economic
welfare
of
a more
and in
curren¬
general
nations
the
of the Hemisphere,
had
I
at
the
close
privilege of seeing
the preliminary
range
work in connection with the Inter¬
national
World
Monetary Fund and the
and I had: the op¬
Bank,
portunity, with others, of making
a careful study of the White Plan,
cultural and commercial devel¬
came to Mexico to become a part
which, as you know, is recognized
of its economic life. Perhaps my opment which we all desire.
In as the basis of the decisions
thoughts, which I dare present to the years of bonanza and expan¬ reached at the Bretton Woods
became accustomed f> to Conference. At that time, a small
you today, may have a fresh point sion we
of view and the new perspective many luxuries and we took them
group of bankers wanted to make
.
.
1; Home Insurance figures for 1947 are not included in the list
s.jnce they would be meaningless today in view of the merger of the
fleet; into the parent company. It is of interest that Geyer & Co.
estimate Home's liquidating value at $39,50 per share, which is equiv¬
alent to $1.40 per dollar of present market value.
Of particular
interest is the recent action of Home's directors in advancing the
semi-annual dividend rate from
■
.
of one who has recently arrived.
My aim during the years I was a
160c to 65c, which gives a current banker in the United States
was,
annual yield of 4.6%. However, the resulting annual rate of $1.30
in my own sphere of action, to
is still below the prewar rate of $1.60 including extras. ;
work unceasingly to bring about a
Some insurance stock analysts express the opinion that Home's
closer economic and cultural re¬
dividend increase may be the forerunner of other increases by both
lationship between the two coun¬
f ire and casualty companies. Certainly a number of companies could
tries, based upon a dignified mu¬
afford to treat their shareholders somewhat more generously than tual
respect. I have had the good
has been their policy. The year 1947 was not a good .year for insur- fortune of
seeing the fruits of this
ance. earnings, yet the following fire companies show earnings in
labor, because thanks to a sane
excess
of double their dividend rates:
and
TotalNet
Continental
Oper. Earnings Dividend
$5.50
$2.00'
Insurance
Ratio
2.75
Fidelity-Phenix
Fire Association
5.86
2.20
2.66
5.42
2.50
2.17
Fireman's Fund
11.59
3.00
3.86
2.89
1.20
2.41
dreat American
Hartford
—
11.87
Fire
;
It
is
2.57
2.00
4.53
suggested that all these companies should raise their
merely on the basis of one year's earning experience. For
not
dividends,
example, Fire Association's total net operating earnings from 1941 to
1946 inclusive, cpvered dividends
;
r——
requirements by very moderate
margins, while earnings in 1947
were
exceptionally good. On the
other hand, Continental, FidelityQUARTERLY COMPARISON
5
Phenix, Hartford Fire and Insur¬
ance
19 New York
City
Bank Stocks
Circular
on
Request
Co.
Members
New
York
Stock
Exchange
120 BROADWAY, NEW YORK 5, N. Y.
*
:■
i
.;
Telephone:
BArclay
Bell Teletype—NY
7-3500
1-1248-49
(L. A. Glbbs, Manager Trading Dept.)
America
have
for
a
number of years ploughed back a
large proportion of their net op¬
erating earnings, to such an extent
that they have built up outstand¬
ing records of growth in stocks
holders'
Laird, Bissell & Meeds
of
sound
ment,
equity.
and
This
represents
conservative
manage¬
but; growth in a stock¬
equity doesn't help him
the problem of the "high
holder's
meet
cost
of
living."
Statistically,
a
number of moderate dividend in¬
creases
appear
justifiable,
ect
granted. -Today* it is neces¬
it is copimonly said, "to
tighten our belts," and attack our
problems, not with superficial or
transitory measures, but digging
deep, down to the roots, and find¬
ing permanent solutions. We must
not leave
ment.
all this to the govern¬
of individ¬
enterprise is
The cooperation
uals and
of private
essential.
sense,
said, in effect, that the hour had
permit this opportun¬ come for Mexico, where so many
sacrifices have been made to im¬
ity to pass without paying a well
deserved public tribute to those prove the; social condition of its
of you who guide the destinies of people;
to fight with as much
the Mexican Commercial Banks. vigor to solidify its economic po¬
You should be very proud of your sition on a sound and lasting basis.
cannot
work, particularly during the re¬ All of us, I feel certain, want; to
cent
economic readjustment. cooperate to that end. Within and without the country
The Minister of Finance, Mr.
there is a complete confidence in Ramon Beteta, in a brilliant ad¬
the
management,
solidity
and dress which he delivered last Oc¬
liquidity of the Mexican commer¬ tober in St. Louis to a large group
cial banks.
international
industrialists,
They enjoy a world of
wide reputation, and dispose of merchants and bankers, who at¬
ample credit to finance the in¬ tended the National Foreign Trade
ternational trade of the Nation. Convention, insisted that it was
In recent months, great American urgent that Creditor America—
Banks
cheerfully
subscribed
a
that
is
the
United
States—coop¬
erate
ceptances issued by
a
fully with Debtor America—
the Spanish American Countries.
syndicate of On that occasion he was the first
Mexican
a
low rate of
substantial
sum
to
banks, at
purchase
ac¬
Government Official of the West¬
ern
*An address
Hemisphere
to
suggest that
by Signor Monas-
part of the Marshall Plan be used
terio
at the
14th Annual
Con¬ to make purchases of raw ipavention of the Mexican Bankers terials and other products from
Association, Tijuana,, Lower- Cali¬ Mexico and other Republics of
fornia; Mejdco^April 23, 1948. '-
this
so
basic changes in the proj¬
that it
might be
more prac¬
tical and beneficial instead of the-
oric and academic*
the
economic
However, as
which
prevailed at that time was that of
deficit
philosophy
financing,
so
ably
sup¬
ported by President Roosevelt and
Lord
Keynes,
whom
the
bankers,
for
difficult atmosphere had
a
already been created, were falsely
constructive
Last year, Mr. Carlos Novoa,
policy on both
sides, the relations between Mex¬ President of Banco de Mexico,
ico and the United States have had some encouraging words to
never been as cordial as they are
say in the address he delivered
today, not only-in the field of before the annual meeting of the
Texas Bankers Association.
diplomacy, but also in a financial
He
I
2.01
9.07
St Paul F. & M
3.00
'3.00
certain
sary, as
and commercial
4.75:
2.50
7.71
6.03
Insurance Co. of No. America
for
Hemisphere; creating thereby
of
being obstructionists
disciples of Wall
Street, and little, if any, heed was
paid to their suggestions. We have
seen since the spectacle of France
ready to change the parity of its
currency with or without the ex¬
pressed approval of the Interna-*
tional Monetary Fund and the
World Bank working on a limited
scale.
Today, we also see, on the
other hand, a general recognition
accused
and conservative
that
the
Rooseveltian
and
Key-
nesian theory of
deficit financing
had its flaws and is less popular,
for nations, as well as, individuals,
who spend more than what they
earn, eventually must face the day
when accounts have to be settled.
It
is, therefore, necessary that the
bankers, with courage and .with
loyalty to their professional obli¬
gation, and without fear of the
attacks to which they may be sub¬
jected, make their force felt and
demonstrate
banker
is
that
the
name,
of
not
precisely synony¬
mous
of Shylock, reactionary or
exploiter, but that tthe leaders of
banking can he, and are, liberal,
progressive, but sound and con¬
structive, and that they recognize
to the fullest extent their duties
toward the system and society in
(Continued
on page
31) 4
;
£
Volume 168
Number 4712
THE
LETTER TO THE EDITOR:
Takes
COMMERCIAL. &
Exception to Jim Howard's View
Editor, The Commercial
I
their jobs.
in
t
17, 1948, edition
by Mr. Jim Howard entitled "Peace¬
Is Threat
to
Individual
Liberty in Our Free Enterprise
System." The surprising thing about this article was not the fact that
Mr. Howard wasopposed to the<§>
draft, for that is certainly any¬ Army and Navy merely to insure
one's privilege, but that he mis¬
quoted facts and used half-truths
their
in
;
|
$
During the month of June many important forecasts have been made by scientists
with the graduating exercises of 169
engineering schools of the United
in
connection
States.
Some of these
the
attempt
Armed
to
Forces
dis¬
of
country and the efforts of
our
few
a
high placed individuals who have
a
I
says
we
do
is
of
the
member
a
rlprj
"Chronicle" staff, nor
during | World
War II.
In
order to
maintain
the
rather sizable Army and
comparison
to
Navy, in
standards,
prewar
that the country planned to have
even
after demobilization it was
Many young of¬
ficers who had made good records
offered
were
continue
opportunities
in
on
the
to
service
in
1
## I
Fortunately
Congress
does not
Mr. Howard's views.
Very truly yours,
D.
McRAE.
F.
June
24, 1948
Building,
Atlanta 3, Ga.
333
Candler
insulate
to
heat,
sound,
against
cold,
light and
atomic
We,
even
waves.
however,
have been
Roger
able
Babson
to
late
gravity.
un¬
insu¬
against
Someday this secret will
be discovered.
It
be
applied
to hundreds of things from stair
treads to airplanes.
It naturally
will be rather bearish upon the
stocks of certain companies and
bullish on others.
We
hearing of all
are
practical
can
uses
kinds of
for atomic energy;
grades . which probably provided
a larger income in
many instances
[Editor's Comment: For the in¬ but the one that seems most revo¬
formation
of Mr.
McRae, "The lutionary is its use in blowing off
than those individuals could have
obtained immediately from pri¬
Jim
vate
industry. I served four-and-
one-half years in the Navy
myself
came
out with a
fairly de¬
and
cent rank, and I was offered an
opportunity to continue on in the
Service.
However it did hot ap¬
peal to me from a monetary stand¬
point, and I did not feel that
essential to the service
was
I
I
so
got out as soon as duties would
permit. I certainly do not believe
that
Chronicle"
its
wishes
Howard is
staff
his
and
state
to
not
views
necessarily those of the
icle."
Mr. Howard is
overseas
active
that
member
a
are
of
not
"Chron¬
veteran of
a
military
service,
who prior to this duty, had civil¬
ian engineering experience in the
headquarters
of
the
Army
sonal knowledge
witH the Navy
and. Army.]
mountain
tops and in redirecting
currents.
ocean
the
way
weather
This would open
for vast
conditions,
changes
1
in
the
making
arid parts of this country, and in
fact
the
world, blossom like a
rose. :
gation
This might make new irri¬
projects unnecessary.
In the years ahead we
have
"no world,"
Air
Corps., familiarizing him by per¬
further
nor
certainly
will
One
or
World.
we
then
will
we
must
Believing that
have^One World,
that there will ; be
assume
be
no
tar¬
talk
tural
it
Then there will be
If
adopted
of
cost
such
a
homes,
the
schools
would
Amferican
and
as
food
and
cooperate
people
to
eat
we
'he union labor leaders have
thuti
far given them."
to
all
would live to be 100 years old.
Before
too
ess
practical
neous
tion of
ocean.
into
the
Hence, while the land and
its products are constantly getting
poorer,
the
and its products
ocean
constantly getting richer.
are
the
day
is
ocean
controlled
To¬
only
within three miles of the different
countries which it borders.
have
developed
so
as
us
ference
can
to
get
the
a
same
home.
Another
very
One
ing
This is tinder
peacetime draft and striving
maintenance of a larger
a
no
will
apply
With the
any
will
is
be
to
made
made
the
facturers
material.
same
as
paper
Raincoat manu¬
today.
already using
are
Our
new
houses
such
will
developments but
that we progress
well.
The
make
3S
greatest
need
as a
"
solicitation
June 30, 1948
William Meehan Wins
NYSE Golf
600,000 Shares
Tourney o
About; 160 members of the; Ex?
change teed-off in the Stock Ex¬
change Members' 49th Annual
Golf
Tournament, held
at
the
The Permanente Metals
Winged Foot Club in Mamaroneck.
At the dinner in the
;
At
stake
the
was
sented
in
Capital Stock
play
Cup,
to
of
pre¬
(Par Value $1.00 Per Share)
the
golfer
net, and which
by William Meehan of
in
won
excess
tournament
Governors'
annually
turning
was
in
I
low
W. J. Meehan &
Co. with
a
.
low
■;
j/._ v:
-v;
'
.....
■
Price $15 per
gross of 77.
Henry Picoli of S. H. Douglas
& Co.
score
with
won
second
of 79.
scores
Corponition
evening, the
numbered
company
300.
y
prize with
share
a
Tied for third place
of
80
were
Edwin
Crandell, an independent broker;
Bobert, J.
Jacobson, Benjamin;
Copies of the Prospectus
may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified to
Jacobson & Co.; and Edward Nesbitt.
>'
act as
Emil Schram, President of the
Exchange, and Robert P. Boylan,
dealers in securities and in which such
Prospectus
may
legally be distributed.
Chairman of the Board, drove off
in mid-afternoon in
company with
John A. Coleman and Robert L.
Stott.
The First Boston Corporation
Chgo. Exchange Members
CHICAGO,
tive
ILL. —The
Committee
of
the
Blyth & Co., Inc.
Execu¬
Co., Houston, Texas; and Andrew
M. Baird, A. G. Becker &
Co.
Underwood, Neuhaus & Co. is
the fifth Texas firm to
become
a
Eastman, Dillon & Co.
Schwabacher & Co.
Central Republic Company
.
(Incorporated)
^
Hallgarten & Co.
firm
of
the
Exchange
within the month.
Andrew M.
Baird's membership was a trans¬
fer from another partner in the
firm
of
A.' G.
Becker
&
Co. '
White, Weld & Co,
Hemphill, Noyes & Co.
_
Paine, Webber, Jackson & Curtis
E. H. Rollins & Sons
■
member
Dean Witter & Co.
Chicago
Stock Exchange has elected
to
membership
Milton
R.
Under¬
wood,
Underwood,
Neuhaus
&
*
v.
.::h'h":;•':• Incorporated
certain
spiritually
now
for abetter mental, motivation.
as an
offering of these securities for salet or as an offer to buy, or
of such securities. The offer is made only by means of the Prospectus,
NEW ISSUE
.•
same
circumstances to be construed
of an offer to buy y
the
a
important devel¬
to
for
con¬
away"
result bj
World, this control
opment will come with decentral
the entire ocean. ization. In
fact, I have almos
attention given to
decided to devote the rest of mj
the fisheries as is now given to
life to aid ng the decentralization
agriculture, the products of the of
cities, industries aid large edu;
ocean could supply sufficient pro¬
cational institutions. Not only is
teins to every man, woman and
decentralization the only defense
child on the earth.
against atomic and bacteriological
The weaving of cloth will in
attacks, but it is fundamental tc
all probability be eliminated in
efficient, economical and dem©the not too distant future. All of cratic
living. We, moreover, must
our clothing, rugs and upholstery
not be content with these material
we
number of
perpetuate their comfortable
positions in the Service by foster¬
a
...
was any concerted ef¬
the part of any substantial
World War II officers
on
train
a
television booth at
there
fort
We will
take
airplane for
thousand miles
near
our
instanta¬
or
a
beer,
transporta¬
or
individuals.
need
sitting in
When
Wire-
to enable—for al
purposes—the
automobile
We
as
transmission
longer
no
fuel.
as
and television will have
flow
streams
"
many
ing water and soil
being washed from the soil. These
the
' TV*'
years a start
been made towards us¬
will have
Scientists tell us that with every
rainfall vitamins and minerals are
down
reduction ii.
a
cost
once,
Should,
we
building codes.
he
of
living from whim,
it wageworkers will get a real bene¬
agricul¬ fit far exceeding anything whicU
at
the
reduce
to
estab¬
and
it-,not for,
labor unions
were
he crazy rules of
and the antiquated
the
products 50%. Furthermore,
what
prefabricated
today
only way
were
the
be
be
would
be
is
peace
advertisers
get
intended
sometime
maintained.
and
could
na¬
will be
can
world
lished
about
food
our
God
raised which
that
if
Then
where
system
Thus far we
this
to have been influenced by
seem
strange.
mercial and Financial Chronicle."
seem
will
have been able
irresponsible,
garbled
writing in the pages of the "Com¬
officers from' both of the
reserve
read
to
years
these
not
of
type
necessary to take in a number of
major services.
amazed
indeed
am
iffs
tionalism.
raised
50
forecasts
whether his
been fighting a
very
strenuous article
expressed the views of the
battle
to
provide an
adequate "Chronicle," however I have been
military force for the defense of unable to find
any statement dis¬
the country.
claiming
responsibility
for his
;! I particularly resent the second views by the editor. In my opin¬
paragraph of this article, which ion this article has a strong flavor
I consider an insult to any officer of Communist
propaganda and I
who served in any branch of our
Armed
Services
have today
with what we
had
Mr.
will look back 50 years and compare the
we
which^-
ago,
whether
know
not
Howard
rank; and as Mr.
"Comfortable Posi-^
fantastic; but if
seem
things
tions in the Armed Service."
deliberate
a
credit
military
Howard
•
Babson, in calling attention to graduation exercises' forecasts of scientific achievements, asserts
years ahead we will have one world or "no world." Says we must assume there v/ill be no tariffs
or nationalism and stresses
importance of decentralization of industry and education,
y
Mr.
•
very much surprised to read in the. June
"Chronicle" an article
time Draft
13-
ROGER W. BABSON
By
on
and Financial Chronicle:
was
of the
(13)
Looking Into the Future
Draft
on
■
part of World War II officers to perpetuate
The
CHRONICLE
:i.:.
D. F. McRae writes he does not believe there is concerted effort
'it
FINANCIAL
Shields & Company
*as
is
IC.»
14
THE; COMMERCIAL
(14)
.
&
FINANCIAL
CHRONICLE
Thursday, July 1,
;
1948.
Geo. W. Hoffmann Is I
If I Were
With Jos. Janareii Go
a
Retail Salesman
(First of
Co.,
120
City, an¬
tnat George W. Hoffmann
Joseph
Janareii &
Broadway, New York
nounce
is
now
as
President, Distributors Group, Inc.
By HENRY HUNT
Manager of the Industrial Se¬
associated
with
the
firm
He
formerly with Kobbe,
&
Co., Inc., for over
was
Gearhart
nine years.
"If I Were
.
WEST
Arthur
Stocks
Chrcn;cll)
BEACH, FLA.—
Calvert
is
now
with
Thomson & McKinnon, 319 Clem¬
atis Street.
77':>>■7:"■
77
"
;;
plan
■
,
run
on
a
the
retail salesman I would train myself
salient
points
interesting
bulletin
and
accompanying
Francis I. duPont and Company:
Many investors
chart,
.
both
"Mr.
prepared
.
..
bv
big professional investors—institutional
When they de¬
a certain kind or type of in-
'
.
hesitate
using stocks for that
purpose
investors—always buy.
cide that
>.' vestment is good value, they buy a di¬
versified group of the leading issues of
themselves, they frequently
that
retreat from the idea because "We must have income."
f
or
STOCKS
vs.
•
BONDS
^
t
o
^
•
Kenneth s. Gaston
^
Maintaining Real Income
;
r
type—not just one or two.
That
if they are wrong on any one the
way
■
'
For
Smith, the way to buy these
Bvary widely as betwe n customers and
following
they
consider
the point where he
and asks which such securities
?■
receive the
we
concede
now
type
periods of time—it cannot be gen¬
eralized.) I would sell him first on that
the advantages of using stocks
instead of bonds for preserving real capital values
during prolonged
periods of falling purchasing power of the dollar.
But when
;
that
kind of security to
Bonds
vs.
compliments of Hare's Ltd.,
of
over
than usual interest to mutual fund salesmen.
more
With the
Financial
PALM
C.
we
oughly
\
:4
If I were
-■
agrees
& McKinnon
The
Salesman"/
From time to time, under the above caption,
be of
to
Retail
a
short articles written by
leading members of the mutual fund busi¬
ness.
The first of such articles discusses industry
groups and was
written by Mr. Kenneth S, Gaston, President of
Distributors Group,
Inc.
Mr. Gaston has been a pioneer in his field and his words should
With Thomson
(Sn—'al
thor¬
of investment
which I felt my customer should buy at that moment—
given his circumstances and the relative values available
;
r
in the securities markets.
(This will
7'
curities
Department,
where he
will specialize in the placement
of blocks of securities.
*
v7
Series)
a
By KENNETH S. GASTON
others carry through so that the overall
resuit is what they figured it would be.
"You;
appraise the future of a
with a great
of any single unit in it. In
can
whole industry or a whole section of the market
"
f
tttriltHiHf
ITT
ill
M
l
H tTTrTImfH
Ttfir
Ffm
i1
h-M I i 4 mhL Tf TT TP TifrmT T.
deal
certainty than you can
■fact] the^ very ^popularity of the best-kndwn; unit usually
more
means^mediocre betformahcej1We: have seeni
Prospectusyour
upon
request from
investment dealer,
or
group
•■/
from
i
ANNUAL
CORRECTED
National
research
securities
FOR
DIVIOEMOS
many times, a
of securities far outperform the most popular single
issue of their type.
I
.
"Another reason fot
FURCHA5IR0
&
.investing by diversified; groups of
isxthat" the way they are set up in modern mutual
funds you get not only a cross^section of> the ^ whole field
but also continuous supervision by professional investment
issues
corporation
Hit 111 ■'! *"«T
flni'j'REAl
LEADIR8
120 BROADWAY, NEW YORK 5, N. Y.
lllmn
HAS RAPREREO TO !J
OF
IMCOMC FROM-lilffll
VALUE
STOCKS*
INOUSTRIAL
•stmni
<
mji'j
rnci
nut'
SI MCE
or
1913
Hoen
10
analysts. v They pick what they consider the best values and
keep changing their holdings as values change.
That's a
service worth a lot more than it costs.
groups are available in all! kinds of
They always comprise the listed issues of out¬
standing quality of their type. They-are redeemable in cash
any time you want to sell.
Now specifically what I would
suggest for you at this time in
stocks (or bonds) is
this managed group of about,— leading issues
.
"These managed
-
investments.
,
H
t4
ARRUAL
C0RRECTE0
FOR
IRTERESTd' inJi
PURCNA3
HQ
POWER
The dividends
paid by the 50 leading industrial stocks in 1913,
purchasingvpower.are taken as 100 for the stock income
line^: The interest paid on Norfolk & Western 1st Mtge. 4s of 1996 in
191$* corrected for purchasing *power, is taken as 100 for the bond
income line.
Actually the 50 stocks were selling in 1913 to yield 5.7%
while the Norfolk & Western 4s were selling to yield 4.2%.
Thus
the chart is considerably less favorable to stocks as compared with
bonds than would have been the case if the bond and stock yields
hadVbeen equalized at the start, in 1913.*
'
7 The object of the study, however, is to show the relative merits
of stocks vs. bonds for maintaining real income and not for obtaining
corrected for
,
-
The
source
belief
that
common
stocks
have
been
a
of real income during the last 35 years than
less dependable
high-grade bonds
is
Prospectus from your Investment Dealer or
widespread.
How little basis there is for that belief is shown
graphically in the accompanying chart.
The solid line portrays
what has happened to the real value of income from 50
leading indus¬
trial stocks since 1913, while the dotted line shows what has
hap¬
pened to the real value of income from top-grade, long-term cor¬
porate bonds in tljie same period. V;-Vv
HUGHW. LONG & CO;
48 WAU
ANGftls'
IOS
'.
orginally.
In other words, we have assumed, as the market does,,
people are willing to pay for income from bonds than for
stocks because they believe the bond income is more
that most
income from
secure.
All the chart attempts to! show is that the supposedly, .safe"
income obtained from bonds at an original cost considerably in excess-
paid for income in stocks actually proved anything but safe
purchasing power over the ensuing 35 years. Conversely,,
in terms of
the
supposedly hazardous income from stocks proved so much more,
dependable, - in terms of purchasing power, that in 1947 the stock-;
holder found himself actually- 34% better off in terms of' buying,
power than he was in 1913, while the bondholder, who accepted a
CHICAGO
*•
it
of that
;:c#;Xv>v
S.'nvV!
STREET. NEW YORK
<
Union
Preferred
,
lower income to start
with! found he had lost 55% of that in terms]
of
purchasing power.
A previous study entitled, "Stocks vs. Bonds
for Preserving
Real Capital Values," showed that $100,000 invested in Norfolk v&
Western 4s in 1996 in 1913; would be worth about $134,000 now, but
Stock Fund
request
that
$134,000 now would buy no more than $56,000 in 1913.
In other'
'
„
v
N
,
'
..
ustodian
words, it showed that the bondholder had lost 44% of his capital, in
terms of purchasing power.
The same study showed that $100,000.
invested in 50 leading stocks would be worth currently about $333,000.
Adjusting those dollars for the current high cost of living cut thevalue of the stock fund down to $141,000 in terms of 1913 purchasing
INCORPORATED
Thus, the bondholder and the stockholder, who started even
power.
Chicago
Lertilicates ol
—
New Orleans
Los
Angeles
find themselves today barely on speaking terms, their,
increased to $141,000 in the stock fund and decreased
to $56,000 in the bond fund,1 both in, terms of purchasing power;
That would be hard enough to take all by itself,- but as the.
current study shows, the loss of real capital values is only part of thestory. Not only did the bondholder start by accepting 4.2% return in
1913, instead of 5.7% which he might have obtained had he been
willing to assume the risks in stocks, but in terms of real incomethe bondholder paid an even wider premium for his fancied safety]
throughout the last 32 years of the 35-year period than he bargained
for at the outset.
Currently the return on the $100,000 of 1913 dollars,,
in terms of 1913 purchasing power, is only 1.9%.»*• By contrast, the.
stockholder's return on his $100,000 of 1913 dollars, in buying power
at the 1913 rate, is 7.6%.
*
~
dollars having
JrarticijjaUon
in
INVE5TMENT FUNDAS
SHARES OF CAPITAL STOCK OF
investing tlieir capital
I:
35 years ago,
IN
BOND5
(Series B1-B2-B3-B4)
.
PREFERRED ASTOCKAS
(Series K1-K2)
7
-
COMMON ASTOCKAS
r
(Series S1-S2-S3-S4)
Outlook for Retail Trade
■
.
:
.
.
Prospectus front
pour local
Le
7".
Prospectus
of Boston
Congress Street
Boston 9, Massachusetts
recent bulletin, National Securities and Research Corpora¬
a
retail trade:
.
reductions, recently effective, will be
beneficial to retail trpde due to larger take-home pay.
1 7 " ?
'...The Government's defense program will pour increased
investment dealer or
ixeystone Company
50
In
tion has the following to say about
7
your
may
or '
-
.
PARKER
CORPORATION
ONE COURT STREET. BOSTON 8, MASS.
.
.
.
Personal income tax
pockets of the people.and assure high national
ployment. / y 7
Federal
•;']
v.
77
Reserve
■;; ;7v777Index of Department
Board
Store
em¬
Salerf
urMaW reaching 308,. compared with 303
April (1935-1939=zl00). ;
7.
77 T.
Retail sales are estimated at $127 billion for 1948, up from
$117.7 billions in 1947. ••/■ -77'; 7777+7: 77
y7::7.77 7'7,7 V
7:.7; 7
rose
THE
.
billions into the
be obtained from
local investment dealer,
.
to
a new
in
all time high
.
.
,
.
...
Net income for the first quarter of 1948 is 8.1% better than
Volume
168
THE
Number.4712
COMMERCIAL
the initial quarter of 1947—based upon figures of 15 prominent com-
•panies in the industry. 7 7
;
Profits for
.
earnings of 1947.,
■
1948
-7:
expected to exceed record-retail trade
are
1
f
*
;•
;
,
v
Disposable income of individuals is expected tof show -a gain in
1948 of 8% above the 1947 peak level of $175.3 billions.Since about
two-thirds of disposable income is spent in retail stores, it seems clear
that a new high record in total sales volume will be shown this year."
.
The
accompanying chart is reproduced from the above bulletin:
DISPOSAL INCOME AND RETAIL SALES
SfflS-.
much
CHRONICLE
national interest such
as
the main¬
tenance of Empire trade..!
*
Whether
not the
or
the
—
NSTA Notes
story about
firm
stand
government's
against interference with nation¬
alization is true, there can be no
doubt that in the general attitude
of the government towards Mar¬
.
aid
prevail
The
J
"AD
considerations
considera¬
Party
government is critized
themselves
ground that the mainten¬
sacrificing the coun¬
try's political greatness and, tak¬
ing the long view, the foundations
of its economic prosperity. Fortu¬
nately
for
the
government,
a
large section of the opposition is
have
austerity.
'40
DISPOSABLE' INCOME IS TOTAL PERSONAL INCOME
,V
.
'42
'41
1
«
'44
'43
'46
45
"ESTIMATED
■
of the
"Broad Street?' Comments
'
14th "Letter," Broad Street Sales" Corporation sum¬
In its June
marizes investors' sentiment and the stock market outlook
"The sharp and practically
of common stock prices
follows:
as
uninterrupted advance- in the general
,
level
since the middle of March can be
attributed primarily to improvement in investors' sentiment.
This
swing in confidence has resulted in a sharp rise in some indicators
of the
degree of speculation in the market. It is important, therefore,
to appraise whether speculation has yet reached a dangerous level
in the light of past experience..
While admittedly difficult to measure
samples can be taken in a number of ways, which collectively give a
rough guide to soeculative sentiment.
At the nresent time such
collective guide does not indicate that speculative enthusiasm has
reached
a zone
that of itself would invite
a
drastic reversal."
Britain and the Battle Over ERP
By PAUL EINZIG
since
1
been
too
early.
of
finally canned,";
;
*
#
K. I. M. YOUR NSTA
in better
now
position to face austerity than Z
Holds
years ago.-
LONDON, ENGLAND—The outcome of the Washington negotia¬
tions about the terms of
the
bilateral
pacts
ERP
on
aid is awaited
♦
.
"BUY ADVERTISING."
.
,
*
18
su¬
*
v;;
HAROLD
B.
SMITH, Chairman
Committee, NSTA
Collin, Norton & Co.
' • 'r'
Yearbook
120
Broadway ;
New York 5,
'
-
•
,
Ringler & Fierbaugh Opens Wm. Sebert Scott Now
(Special
to
The
Financial
Chronicle)
With Gersten & Frenkel
ASHLAND,4 OHIO — Courtland
Ei Ringler, and Emmett A. Fier¬
baugh
engaging in
are
business from offices
at
West
50
ciation,
name
Ringler and Fierbaugh.
now
the
Martin With J, A. Hogle
better' fed
!u
both
ert A.
Austerity. But its politicians
face
Chronicle)
Martin has become
v
1
:,
'
and
•'
even
more
to
so
make
any
comment
on
3>
Fenner
in additionto! those
He
(Special
was
to
The
Financial
Chronicle)
ATHENS,. OHIO—Belford
son
has become affiliated
Roy E. Hawk and
Co.,
Building.
previ¬
& Beane.
,
,
and
received
Pacts.
the
subject
from
Wash¬
ington.
But
the reports
themselves,
Without
even
official
confirmation,
any
rise
gave
to
the
.
Geneva
There
and
v.-,
_
•
the
gov¬
be to the interests of the
country. On the other hand, there
are
many Socialists as well as
may
firm
stand
First and
'
Dated
Commons to pass
the
approving
immediately after its
clusion! further aggravated
for
an
it
indication
yielding
tion
that
the
to
mands.
was
Under
it
con¬
this
regarded
Britain
as
was
American
British
a
agree¬
ment
concern,
de¬
constitu¬
the
In the
decline
of the gold reserve,
become, further accentu-.
would
a
-
.
in. the
interest
v
r
.
agreements
by Parliament. Even such
March
was
as
Pact
not
im¬
the
necessary
to
submitted
interpreted
obtain
the
of
as
to
the
portant!
the*
that would
terms
ther
agree to
lead
to
links
with
the
ions and Colonies. It
that
so
im¬
-government
Parliament : ..tpT share its
of
it
not
BEAR, STEARNS & CO.
•"
OTIS & CO.-
is-alleged in
(INCORPORATED)
course
BURR &
-
H
circumstances to
a
agree
in
any
demand to ab¬
Parliament
jover;
the
is
sharply
,
divided
The Bonds
to
<
stain from further nationalizations
government,
in return
for
the
Mar¬
of
industries.
that
the
This
would
government
mean
attaches
.
^
s
r
*i
1
j
i
=
*
are
offered when,
'
x%"
V
}} ^
HIRSCH & CO.
as
or
,
»
'
*
-
%
'
'
y.
.,;k.
^
%•
,
*
A. G. BECKER & CO.
HORNBLOWER & WEEKS
J'
.
HALLGARTEN & CO.
GLORE, FORGAN &, CO.
f
COMPANY, INC.
withdrawal, cancellation
■'
"
'
:.t
*'( \ * J v"
•
INCORPORATED
SCHOELLKOPF, HUTTON & POMEROY,
THE ILLINOISCOMPANY
,
INC.
KEAN, TAYLOR & CO.
and if issued and subject to acceptance by the Purchasers, to approval of counsel, to prior sale,
modification of the offer without notice, and to authorization by the Interstate Commerce
Commission of their issuance and sale. Bonds in temporary form will be delivered at the office of Halsey, Stuart & Co. Inc.,
•;*•'. •?
'
:
35 Wall Street, New York, N. Y.
...
.•/
July i, 1948.
:•
: •;:■7
.
•n:
question" whether
• •:
INCORPORATED
..
•
.
.
WERTHEIM & CO.
GREGORY & SON
..
.responsibility for them.:; '
>
by the
; \ HALSEY, STUART & CO. INC.
;
any
made ' it, quite
would
Due April 1,2003
-
,
[ r.-T;;
/
plain
the Washington Administration
that
.
Company
Bonds, Series H
•
preliminary conversations the
government
to
_.
..
■-'.rv
V
Domin¬
political circles that in the
is
the
pact
'■%
The
weakening of commercial and
financial
.ir,V
/
•
Offering Circular may be obtained in any State in which this announcement is circulatedfrom
only such qf the undersigned and other dealers\as may lawfully offer these -securities in such State.
fur¬
a
Parliament's
meaning
that
it
country if it should
ERP
concessions made must be
.wishes
*"
The government is bound to.be
in
government considers
endorsement
?•'
,
opinion of Counsel, the Bonds will be legal investmentsfor Savings Banks organized under
Massachusetts, Minnesota,
New Hampshire, New Jersey, New York, Ohio, Rhode Island and Vermont.
attacked in Parliament and in the
an
j
"""
of
the Brussels
concluded
House of Commons. The fact that
•now
•
•
Price 100% atid accrued interest
fff"
ternal aid.
international
r'
o
.
,
blessing in disguise, for it would
induce the British people to work
harder and to consent to sacrifices
tion
Five-Power
'»
,
the laws of the States of California, Connecticut, Maine,
ated. Even so, there is a strong
feeling that such a drain would be
Executive to obtain the ratifica¬
portant agreement
I:
v
making. ends
meet, instead of depending on ex¬
is; not necessary' for» the
of
•*>..«:.
The issuance and sale of these Bonds are subject to authorization
Interstate Commerce Commission
losing the benefits to be derived
from the Marshall Plan. It is true,
in the absence of those benefits
of
•*
Refunding Mortgage
April 1, 1948
at the risk of
even,
an¬
ixouse
«v"'*
Louisville and Nashville Railroad
r
a
-Sf
i'-'j
•
,r
$30,000,000
Conservatives who hold the. view
ernment's
•
many
nouncement of its intention to ask
the
•
,
that the government should make
And
•.
.
•
members
in both principal political parties
who believe that, since Marshall
aid is indispensable, the govern¬
ment has to accept any terms
dictated to- it from Washington,
no matter how detrimental tliey
are
widespread
resolution
'
.
Havana
grave concern.
Dr. Paul Einzlf
'v
'
Agreement,
the
the reports
on
<7.j
offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Offering Circular.
'
.
not an
The
accepted! ;ih
American; Loan
•'
!
•
This announcement is
shall aid, should make concessions
.
~
Scott
With Roy El Hawk & Co.
associ¬
ously with Merrill Lynch, Pierce,
have not the courage to try it out.
Mr.
partner in Shep-
a
ard, Scott & Co.
?
Hogle & Co., 507
West Sixth Street.
to
•
to .Ttts JPiNi^ieiAi.
department.
formerly
was
ANGELES^ CALIF.-~Rob-
ated with J. A.
ma¬
psychologically,
(Speci&i.
! LOS
that Wm. Sebert
associated with them
charge of the firm's investment
research
country, is
position,
[and
terially
the
So
war.
better
now
in
the
than
;it was during thenar. and
belter housed than immediately
a
announce
Scott is
Main Street under the firm
of
Gersten & Frenkel, 150 Broad¬
way,
New York City, members
New York Security Dealers Asso¬
securities
a
[here with the utmost interest. The British Government has been
Veticent to give any information about the progress of the discussions,
i'%
•
N. Y. ,;
The
| work has enabled
energies^ and it is
in
nationalization.
■
Quoting from the Banking Magazine: "In a Presidential
campaign theparty < platform is first planned, .then panned, and
system of production
disorganized, the population
was; exhausted by the war effort,
and
its, P h y sic a 1
resistance
weakened 1 by
warrtime
diet.
Meanwhile' the industrial equip¬
ment [has been converted from
war
requirements to peace re¬
quirements; the more leisurely
after
on
■yhl
country's
Dominions and Colonies
restrictions
11
n *
was
foresees strong opposition in Parliament to any termsr that may lead
to further weakening of commercial and financial links with the
or
NSTA
Chronicle.
* ■■*
"5'
sufficiency, now is the time for
it. In 1945. at the time of the nego¬
tiation of the American loan it
have
1948
our
gratitude to the National Quotation Bureau, and this is well worth
will have to be made
in order* to' recover Britain's self-
would
in
Financial
:|i
;
*"
* 4
*
population to restore its exhausted
onshai^Iydlvidedopiiuon itf Britain regarding yielding
American conditions imposed by "Marshall Plan ' aid, Dr. Eirizig
Britain is
a
:|s
are
mention.
do
later
or
the
happy indeed to'mention two great friends of the NSTA,
Messrs. Lou and Graham Walker, who have
already contracted for
a
$300 space in our Convention issue.
We always have a debt of
to the conclusion
sooner
with—represented
preme effort
pace
,
Reporting
to
that,
association
.
'1 /
We
There is, however, a growing
number of members of Parliament
come
lead
to
advertising is increasing; however, we need your sup¬
may be outstanding politically, economically and, we
add, advertisingly.
must
we
austerity measures.
who have
aspired
Our gross
argue
government
of them
port, and 1948
that,
that,
Conservatives would make politi¬
cal capital out of the unpopularity
47^ 1948
•
,
,
_
AfTER-DEDUCTION QT PERSONAL TuxES
Socialists
the
should
'39
financial
a
:|t
taking the line of
least resistance. Indeed, the gov¬
ernment has a reasonably good
excuse "for a b s t a i n i n g * from
choosing the straight arid narrow
path of self-sufficiency through
'38
all
Convention Year Book of the Commercial and
also in favor of
'37
though
cal.
at the cost of
'36
recently,
Perhaps such expressions we should term politi¬
We, the Advertising Committee, are not backward, bashful or
oackslappers.
We say, without hesitation, we want you, your firm,
and companies outside of the stock and bond
fields, that you may
comparatively
high standard of living is secured
'33
until
Republican ticket.
of the present
ance
LIBBING"
In writing these
notes, we are reminded of the majority of the
Republican candidates for the nomination.
Many would not declare
national
over
the
on
1929
"15
importance to purely
more
tions.
"
(15)
party matters such as steel .'na¬
tionalization than to matters of
shall
200
200
FINANCIAL
&
.
Nel¬
with
Cline
V
1«
V
(16)
•
.
THE
'
•
COMMERCIAL
&
FINANCIAL
CHRONICLE
Thursday, July 1, 1943
Byrne and Phelps, Inc. Guaranty Trust Analyzes Trade Agreements Act
In current issue of "The
Guaranty Survey," bank contends extension of Act is significant mainly in giving reassurance to foreign
Formed in New York
/
Roger S. Phelps and William D.
Byrne anonunce the formation of
With the
consistent.strength in oil stocks, and general acceptance
of the theory that this
industry is in for an indefinite period of great
prosperity, it is little wonder that many investors are once again
eye¬
ing certain railroads in the light of their oil potentialities. The shin¬
ing example of what ownership oi^
extensive
0ii
ancj
iancjs
gas
can
is, of course, Union Pacific.
mean
There
are
number
a
earnings
There
prospects
was
a
bright.
are
modest
increase
in
of
others, net in the first four months in
however, where the prospects of contrast to the drop
reported/by
substantial
additional
earnings the industry as a whole. Per share
from this source have not as
yet earnings were up to $4.80 from
been so fully exploited. Perhaps $4.50 a year earlier.
It is indi¬
one of the most
interesting from cated that the winter wheat yield
this standpoint is Atchison, To- in- the company's
territory will be
peka & Santa Fe which has the
further advantage of being a thor¬
oughly sound situation and is rea¬
sonably priced merely on its rail¬
road
properties and transporta¬
tion earnings.;
..
Unlike
Union
'
Pacific-
which
takes its oil and gas earnings di¬
rectly into its own income ac¬
count, Santa Fe's operations are
conducted through subsidiary
companies. • The
road
has
not
taken down any dividends from
these subsidiaries in recent years
so
that the
profits from this and
outside
sources
have
not
other
been
included
earnings
of
in
the
the
large share
Santa
Fe
stock.
considerably smaller than in 1947.
Prospects for other traffic items,
however,
are
rates
higher.
are
good
will
■
top $20 a share compared
with $17,11 for the whole of 1947.
This is without dividend income
from Western Improvement Co.
recent
months
number
there
oil discoveries
on
rumors
land
owned
by
another of the road's sub¬
or
sidiaries.
These
reached
rumors
such proportions that the manage¬
finally took cognizance of
ment
them
in
letter
a
holders.
sent
to
Specifically,
stock¬
they
ferred in their letter to
a
re¬
new
oil
discovery in Lea County, New
by Mid-Continent Petro¬
Mexico
leum.
well
It
pointed out that this
was
not
was
the railroad.
the
on
It
Norman
Downey V.-P.
Of Union Securities;
Norman
elected
S.
Downey
has
*
of
Corp.,
65 Broadway,
it has been an¬
Downey is in charge
firm's Municipal Depart¬
New York; City,
Of
the
oi|,
firm
new
will
continue
to operate the
business
least.
|
"The
f
tion
and
nicipal
§
bonds |
view
Roger S. Phelps
■
Campbell, Phelps &
Co. in 1936 and prior to that time
Mr. Byrne was
itself
Co.
&
and H.
Associated
new
firm
own
Trading Dept.
Company, 37 Wall
McCall has become
associated with them in the trad-
become
lease
to
Magnolia
As to the
Cleveland Security Traders As¬
ing department.
Other 12,640
acres comprising the
remaining 10 tracts, a little over
3*000
all
acres
is also under lease.
somewhat
acres
are
The
more
than
In
16,000
not under lease.
in
company
its
letter
to
stockholders stated that it did not
intend to make any further leases
of its land in Lea County.
Rather,
it
is their intention to undertake
development
for
their
own
ac¬
count, through one of their oil
companies, such portions of the
remaining acreage as give prom-
Investment Traders Association
of
Philadelphia Annual Summer
Outing at the Tavistock Country
Club, Haddonfieldj N. J.
Golf
1948
(Philadelphia,
Tournament
for
Pa.)
STANY
Cup at Philadelphia.
July 13, 1948
Mr. McCall was
Summer
Party
at
Lochmoore
Country Club, Grosse Point, Mich.
of
Toledo
annual
outing at the Inverness Country
Club.
ice of production. It was further
stated that drilling in that area
July 19-22, 1948 (Portland, Oreg.)
wopld probably take about six
mouths and that their present
Association of
thought is that they would not
complete more than one well in
1&£8. Meanwhile it is the appar¬
ent
intention
of
other
oil
com¬
panies to drill additional wells in
the vicinity. It will probably be
some
time before the extent of
these oil potentialities of Santa
Fe
can
be
appraised accurately
byt they do offer interesting pos¬
sibilities for substantial additions
to the company's earnings.--
Meanwhile,
considering
and
the
even
oil,
the
.
without
road's
products. The original
Act, which ran for three years,
was extended in 1937,
1940, 1943
and
Annual Convention of National
Securities
Admin¬
istrators at the Multnomah Hotel
Aug. 27, 1948
&■: Bond
Club
(Denver, Colo.)
of
Denver-Rocky
Mt.
Group of IBA joint Annual
Party at Park Hill Country Club
Nov. 15-18, 1948
National
(DaHaa, Tex.)
$
(Hollywood, Fla.)
Investment Bankers Association
Hollywood
.
heighten trade barriers in general.
For the time being, and perhaps
for several years to come, their
effects are offset, as far as the
trade of the United States is
con¬
cerned, by the urgent need of for¬
eign countries for American goods
and the loans and
those
needs
reduction
are
grants by which
being met. The
barriers re-/
trade
of
mains, however,
jective.
as a
long-run ob¬
The ITO Charter
deadlock.
March
It
this
of
not
was
year
that
until
delega¬
tions of 54 of the 56 nations which
participated in the drafting of the
signed a greatly altered
showing many signs of bar¬
gaining and compromise. Instead
of a few simple and unequivocal
rules, the charter contains many
complicated provisions, exceptions
and escape clauses that can be in¬
terpreted in different ways.
The
signatory nations accept the broad
principles of multilateral trade,
nondiscrimination, and the reduc¬
tion of trade barriers. Yet exist¬
charter
draft
ing preferential agreements are
expressly retained; quantitative
trade restrictions can be continued
imposed under some broadly
conditions; discriminatory
or
"In extending the Act in 1945,
Congress
broadened
the
Presi¬
dent's authority to grant conces¬
foreign capital is less definite than
some
investing countries, includ¬
sions.
ing the United
any
obtain.
was
an
Pacific Gas & Electric
|
5% Pfd. Stock Offered
By Blylh & Associates
Blyth & Co., Inc. and associates
June 30 publicly offered a new
issue of 1,000,000 shares of Pa¬
cific Gas & Electric Co. 5% re¬
on
The
net
proceeds will be used
to retire bank
loans
The original Act limited
concession to 50% of the rate
in effect when the law was passed.
By 1945 the United States had
used up much of this bargaining
power.
Congress
accordingly
placed additional bargaining
power at the President's disposal
by amending the Act to permit
reductions up to 50% of the rates
in effect on Jan. 1, 1945. Thus an
original rate that had
already
been reduced by one-half could
be further lowered to 25 %
rate
in
totaling $12,000,000 and to finance, in part, the
company's construction program
which is expected to call for ex¬
penditures of
more
effects
years
of the
effect when the Act
was
passed.
for
the
than $400,000,-
1948
through
1951.
In
Experience Under the Program
offered,
standing
the
a
to
the
stock
based
of
the
mainly
must be
experience prior
program
on
total
Exports from the United States to
trade-agreement countries in the
of two-year period 1938-39 were 63%
of larger than in 1934-35, while dur¬
being
has % out¬
company
funded
debt
$399,092,000; 4,211,662 shares
6%
preferred
stock,
par
$25; ing the same interval exports to
1,173,163 shares of 5
preferred non-agreement countries increased
Our imports from tradestock, par $25; 400,000 shares of 32%.
5% preferred stock, par $25; and agreement countries rose 27%, as
7,540.379 shares of common stock, against an increase of 12%% in
i
par
stated
m
p o r
ts
from
DURHAM,
N.
C.
mediate
Corp.
may
have had
on
the
ter in
official policies
Sloan has been added to the sales
shadowed by other factors during
staff of First Securities
and
Street.
Corp.iTlll
since
the,-,
war.
The
world
conflict destroyed long-established
application
of
criticized
also
on
other
grounds,
namely, that it is inconsistent with
the maintenance of free competi¬
tive enterprise in
world commerce
with national freedom of ac¬
and
tion in the execution of domestic
And while there seems
disagreement with the
policies.
to be little
broad principles of the charter as
long-run objectives in a world re¬
stored to some semblance of eco¬
doubted
stability,
it
is
widely
that those principles can
actually
time
made effective at a
devastation, dis¬
be
the
when
financial
disorder
personal hardship left by the
organization,
and
war
add
to
up
an
emergency
which, most governments believe^
continues
to
call
for
emergency
methods."
/./;
■
With Davies & Mejia
SAN
program
and trade volumes has been over¬
Corcoran
Perry
that
full
and
char¬
its present form has been
(Special
effect
States, hoped to
liberal trade principles. The
non-agreement
A.
—
under
"This result is of course disap¬
pointing to those who favor im¬
countries.
"Any
agreements remain pos¬
many circumstances,
fair treatment to
bilateral
"Any significant appraisal of the nomic
to the outbreak of World War II.
addition
With First Sees.
Beach Hotel.
in¬
sible
he
thereto
ciation Convention.
1948 convention at the
even
war.
and assurance of
Prior
Security Traders Asso¬
Dec. 5-10, 1948
retained and
tensified since the
1948.
Co.
officer of J. F. Reilly & Co., Inc.
000
July 16, 1948 (Toledo, Ohio)
Club
been
1945, the last extension pro¬
viding for termination on June 12,
(Detroit, Mich.)
deemable
first
preferred stock.
Security Traders Association of
$25 par value, at $26.50 per share
Detroit
and
Michigan
Annual
and dividends.
Bond
rigid trade controls; and
large extent these controls
a
&
Bond Club of Louisville Annual
9,
to
previously Manager of the stock
trading department of Schwamm
outing.
July 9, 1948 (Louisville, Ky.)
July
trade
American
J. McCall
July 9, 1948 (Cleveland, Ohio)
July 9, 1948 (Philadelphia, Pa.)
Company.
into
from abroad in return for reduc¬
tion of foreign barriers against
tracts.
The new Mid-Continent
well is located about half a mile
under
enter
reducing United States tariffs and
other import restrictions on goods
Field
Party at Sleepy Hollow Club.
is
to
agreements with foreign countries,
Frank
es¬
needs, nations everywhere
adopted
have
in
The Act authorizes the
President
rights in Lea County.
These rights underlie 11 scattered
Petroleum
further
higher trade barriers, particularly
as
such barriers affect foreign
markets for American goods and
depart¬
EVENTS
mineral
no
extension.
services.
summer
concessions,
1934,
represented an attempt to counter
the worldwide tendency toward
.
sociation
trade
possible that
"The Trade Agreements Act of
COMING
was
from the border of the largest of
these tracts, containing some
10,7$,5 acres. In this tract some 3,480
is
the United States, passed in
^associated with the firm
In Investment
on
The Trade Agreements Act
Corp., has
head, of the research
Agreement
tinuity of this policy.
change, announce that Oscar M.
Miller, formerly Treasurer of Gen¬
as
limited resources for
conserve
sential
aspects. Over a sustained period
"The establishment of the pro¬
characterized by generally mount¬ posed International Trade Organ¬
ization has proved a difficult mat¬
ing trade barriers, the United
States has consistently stood be¬ ter.
Any
expectation... that a.
fore the World as the principal prompt and easy agreement would
exponent of liberal
trade prin¬ be reached at Havana was soon
ciples. The extension of the Trade dispelled. Large sections of the
Agreements
Act
is
significant proposed charter were readily ac¬
mainly in providing reassurance cepted, but others gave rise to dis¬
to foreign countries as to the con¬ agreements that threatened to end
Frank J. McCall With
any
However, a wholly-owned
subsidiary, Santa Fe Pacific Rail¬
road Company, does own approxi¬
mately 23,425 acres of oil, gas and
it
bers of the New York Stock Ex¬
ment*
same
time gave rise to special demands
the most urgent J'ji£tur&://
of
"The
question, however, has
long-term as well as short-term
Shearson, Hammill & Co., 14
Wall. Street, New York City, mem¬
eral American Investors
General
reciprocal
year
Street, New York City, announce
Shearson, Hammiil Oo.
financial
agreement of first rate importance
will be concluded during the one-
Thomas R. Alcock.
Frank J.
and
and
for
Sillery, Ralph
M. Winters, Edmund C. Byrne and
that
business
hausted; the present possibilities
be William J.
Greene and
influ¬
potent
——.
relations and at the
international trade, such
and
C. Wain-
the
with
and
Trade signed at Ge¬
last year seems to have ex¬
neva
wright & Co.
Greene in
m&de.
acres
"The
Tariffs
ad¬
to
Shields
other
Trust Co. of New York.
associated with B. J. Van
was
will
of
immediate
conditions, published by Guaranty
of
firm
extending the
with only minor amendments,
"These
tendencies, of course^
as
the European
Recovery Pro¬ run directly counter to, the aim
gram,'/ according to the current of the
reciprocal-trade program,
"Guaranty Survey," monthly re¬ which is to
lower rather than
York/
Mr.
Phelps
established
on
min¬
because
agreements
of
immediately
ences
ques¬
been
any
trade
new
the
has
of
the appearance
more
f
St.,
for
of
quarters
come
absence
plans
and
offices I
from
the
of- the
mu-|
at 70 Pine
extension
imized in
dealers in
and
importance
of
as
underwriters
state
June 26 of the bill
on
year,
postwar period, is to be allowed^
to continue for the time
being at \ trade
major
in which the discovery
area
The
one
that the foreign-trade policy followed by the United States
14 years, and broadened to meet the
altered conditions of the
for
Campbell, |
Phelps & Co.
one
land or
and mineral rights in the
gas
Trade Agreements Act for
means
name!
the
reciprocal trade concessions. Sees diffi¬
implementing charter of International Trade Organization*
"Approval by the President
/■./;
.
1945.
Oscar Miller Joins
field, al¬
though the discovery was charac¬
as
encouraging.
Atchison, Topeka & Santa Fe
not
///'
un- g
property of
bringing in of
a
culties in
business
Mr.
Union Securities since
terized
does
fore
o
the
f
o
been
Vice-President of Union
a
Securities
well did not necessarily
prove the
existence
der
continue
further point¬
was
ed out that the
t
countries of continuation of
Incorporated
partnership in Camp¬
bell,/ Phelps & Co. in 1946 and
previously was associated with
have
going
to purported important
around as
one
of
e r e
mitted
ment and has been associated with
a
will
conducted
he
the bulk of which, it is believed,
represented oil operations.
Pre¬
In
h
Phelps,
Ingen & Co.
nounced.
been
which
freight New
balance, it City.
Lgst year these hidden earnings
amounted to more than $3 a share,
sumably they will be considerably
higher in the current year.
and
and
On
likely that 1948 earnings
appears
Byrne
'
to
The
Financial
FRANCISCO,
Chronicle)
'' \ /
CALIF.—
James E. Brennan is with Davies
&
of
Mejia, Russ Building, members
the New York and San Fran¬
cisco Stock Exchanges,
THE
Number 4712
Volume 168
COMMERCIAL
.
&
FINANCIAL
CHRONICLE
(17)
Final Payment on Delaware
Predicts Business
Uptrend
Throughout 1948
17
Bridge Bonds
^
International Statistical Bureau in semi-annual forecast, however,
holds advance will be less vigorous and more uneven
i
The trend of business
continue upward but with
period
of
activity in the last half of this year should
sharp differences from the corresponding
according
1947
semi-annual
the
to
Statistical Bureau's
Business Outlook."
International
forecast, "Commonsense
About
the
i~j. The Bureau points out that ad-$————f-'
this year will be lefcs vigor-
vance
tiles,
tion likes to
various
durable goods. ' Price movements
Will be
a
candidates.
'
But
not
all
Administrations have been able to
and varied/ Aver¬
uneven
,.
"
see
ness activity upset voters who are
preoccupied with the merits of the
etc., have not been helped
by the continued boom in
much
f
■>-•
No Administradecline in busi¬
..
decisive factor.
Soft lines, tex¬
ous, more uneven.
than in first j
half of year.
»
prevent
will move up merely because
gains in durable goods are more
age
decline in business
a
ac¬
tivity
from: corning at • justythje
than enough to offset declines in wrong time from
the political
other sections. In most cases, sup¬ viewpoint.
If the business! structure at the
plies will be ample. Evep for steel,
most consumers will have less dif¬
moment
ficulty than in 1947.
Wage, transportation and fuel
costs
will average higher than
recession
if
v
in
trouble
advances
there
passing
these
on
than
will
non-durable, but
exceptions in both
be
Administration could
it.
The
a
it is doubtful
due,
was
pre¬
increase, in; defense
spending,/ however* has been t at
least a psychological antidote, to
the break in speculative markets
last Februaryv. and seasonal-, fac¬
tors during the third quarter of
last ' year, the prediction holds.
Durable goods industries will have
less
the
vent
topheayyfthat;
was^ so
Iheyeary arefavorable.-
cases.
of
more, there, are a numberlof strong
the first half will probably be in¬
ipoints, in the economy, and par\
Deflationary
<
trends
money
ticularly in durable, goods. ~
According to the Bureau's, fore¬
of gold will add to the money sup¬ cast, the < general level of>• whole-;
ply, while debt retirement, which sale prices will probably advance
has
been
detracting from I' the gradually during the remainder of
terrupted
reversed
and
the second half.
Continued inflow
supply, will be at
money
during
the year.
mini¬
a
ary
mum.
There
will
probably
be
many
regard
•
Bridge 4% Revenue Bonds.
The check was presented at the offices of Harriman Ripley & Co.,
Incorporated, 63 Wall Street, New. York City.
The first payment by the underwriting group of ,121
probably not members, headed jointly by Alex. Brown & Son;, Kidder, Peabody & Co., Harriman Ripley & Co.,
be enough to offset advances in
Incorporated, and Lehman Brothers, was an $800,0)0 "good faith" deposit made on June 22, 1948.
The
metals and metal-finished -items, !State- of Delaware
will use the funds to finance the Memorial
Bridget to be built across the Delaware
lated
than it has been
price
distortions.
of * value
further inroads
measures,
back¬
1947, when the price advance
general
logs will have been made.
The Bureau goes on to say that
the fact that 1948 is an election
is
year
important but not
an
r
position.
;
<7 —
In contrast With the last half of
since
demand
on
River south of
building
materials as a
whole are in the most vulnerable |
exceedingly high level in
an
terms
will
ever,
We
doubt, however, that this is en¬
tirely favorable. The balance will
be at.
products
particularly with jjh the "durable'goods .list, how¬
years,
to
ware,
in durable goods. Further decline
in farm commodities and their re¬
loans, which until re¬
cently have been declining, says
the report.
In many respects the
economy will be in better balance
the year-end
V. du Pont (right),' Chairman of the State Highway Department of the State of Dela¬
is shown receiving from Charles S. Garland (left), of Alex. Brown & Sons, a check for $39,520,000,
representing the balance due from underwriters on the sale of $40,000,000 The Delaware Memorial
by the -present * round of
wage advances and the strength
dustrial
in
Francis
creased
some
expansion in commercial and in¬
at
Chance that the Janu¬
high will be exceeded is in¬
some
for
all
was
classifications,
prices will probably be go-
inS down while others go up, the
.
|
are." Summerfield B. Pearson, Alex. Brown & Sons; Le Roy
Manager, Municipal Department, Harriman Ripley & Co., Incorporated; Francis P. Galla¬
Manager, Municipal Bond Department, Kiddsr, Peabody & Co.; El wood D. Smith, Vice-Presi¬
dent, Harriman Ripley & Co., Incorporated; Robert II. Richards, Jr., Richards, Layton &
Finger, Attor¬
neys, Wilmington, Del.; John B. Jessup. President, Equitable Trust
Company, Wilmington, Del.; James
H.
Apgar,
gher,
W.
Allison, Vice-President, Equitable Trust Company, Wilmington, Del.; Enoch R.
Needles, Howard,
Tammen & Bergendoff, Consulting Engineers; and David M.
Wood, Wood, King & Dawson,
Bond Counsel.
Needles,
Bureau points out.
a
Life insurance investments
iv
Wilmington.
Others in the picture1 (left to right)
This announcement is not. an offer to sell or a solicitation of an
offer to buy these securities.
The offering is made only bv the Offering Circulars
*
Investments made by the life insurance companies of the country
during the first four months of 1948 and holdings at the end of April
are reported by the Institute of Life Insurance as follows:
April
Acquired—
4 Mos.
April
*1948
1947
Holding"
4 Mos.
*1948
Apr. 30
Apr. 20
*1948
S-'■-:? L
,'
$7,000,000...:...... ;
'
1947
1947 1
(000,000 Omitted)
U.
S.
Government
Railroad
Public
Bonds
Utility
Industrial
Stocks
and
(U.
All
Foreign
Farm
Misc.
Bonds
Bonds
S.)_
$21,233
2,850
.2,788
7,270
5,572
227
1,003
592
5,685
3,756
35
70
,89
1,422
8
56
21
637
14
47
137
1,752
1,736
0
5
0
50
97
903
Collateral Trust 3%% Bonds, due 1968
614
9
1
7a:?
27
26
118
26
2.93
75
1.638
46
101
170
1,040
101
496
419
5,764
5,041
$301
$790
$3,758
$2,331
$48,081
,
'
and
,
Mortgages-
Farm
Real
Estate
0
0
0
0
70
Due July 1,1968
Real
Estate
42
27
98
58
867
653
38
31
128
102
1,968
1,875
'
are subject to authorization
Interstate Commerce Commission
•
..
s;"'.
Pf
Other
Policy Loans
1
^Starting with 1948, this tabulation includes
the
accident
T947
and
and
ear'.ier
health
years
departments
therefore
are
of
not
R. V. Klein Co., New York, on
June 28 offered publicly 980,000
common
stock (par
of United Oil Corp,
cents per share.
are
offered
(Del.)
10c)
at 30
These securities
speculation.
as a
The
n6t proceeds will be used to drill
well, working capital, etc.
The
United
Oil
Corp.
ing in all phases of the oil busi¬
drill
and
in
a
the
particularly,
more
well
on
certain
Lease Block.-
.
^
to
properties
Oklahoma-Logan
for the
life
f.irst
insurance
time
the
investments
companies.
Figures
County
:
—
by the
-.
'
T;"
of Counsel, the Bonds will be legal investments for Savings Banks organized under the
laws of the States 0}
California, Illinois, Kansas, Neiv Hampshire, New York, Ohio and Texas
and for savings
of
banks-organized under the general laws of Pennsylvania.
for
comparable.
Price 101% and accrued interest
Kenney. & Powell, 25 Broad
Street, New York 4, N. Y., are
pleased to announce that they are
registered in the Common¬
wealth
of
Pennsylvania
where
they will be represented by Edgar
P. Hamilton of Gettysburg, Pa.
Mr. Hamilton, for the past 25
years, has been
actively associ¬
The
Offering Circular may be obtained in any State ni which this announcement is circulatedfrom
only such of the undersigned and other dealers as may lawfully offer these securities in such State,
'
.,
now
ated with the investment business
specializing in state and municipal
bonds.
was
formed for the purpose of engag¬
ness,
the
strictly
.
'7
In the opinion
Tq Represent Kenriey &
Powell in Pennsylvania
R. V. Klein Go. Offers
shares of
I
"
■
\
The issuance and sale of these Bonds
V
Securities
*
$44,355
Mortgages—
Mortgages
Total
■''**
July 1,1948
413
143
Dated
1,192
39
p"'"'
-
■.
L
76
.
Administration
Gulf, Mobile and Ohio Railroad Company
1,221
16
:
Mortgages
Veterans
Other
(U.
$19,070
80
327
221
S.)
$384
91
559
Bonds
Mortgages
F.II.A.
$834
31
175
13
(U.
;
Munic.
$101
178
S.)
Securities™—
Bank
$133
45
(U.
S.)
State, County,
World
Securities™
(U. S.)_
Bonds
|f
If
.
DICK & MERLE-SMITH
HALSEY, STUART &, CO. INC.
HORN BLOWER & WEEKS
IRA HAUPT & CO.
|
(Special
Corp.
to
The
I DENVER,
Edmunds
has
Chronicle)
COLO. —Philip
are
offered when,
THOMAS & COMPANY
B. W. PIZZIN1 & CO., INC.
,
and if issued and subject to acceptance by the Purchasers, to
approval of counsel, to
prior sale, to withdrawal, cancellation or modification of the offer
without notice, and to authorization by the Interstate
Commerce Commission of their
issuance and sale.. Bonds in temporary form will be delivered at the office of
/
C.
joinec| the staff of
Investment Service
ity Building.
INCORPORATED.
;
Financial
F. S. YANTIS & CO.
-
The Bonds
.
FREEMAN & COMPANY
THE ROBINSON-HUMPHREY COMPANY
With Investment
i
L. F. ROTHSCHILD & CO.
'
DEMPSEY & COMPANY
NASHVILLE SECURITIES COMPANY
Service
OTIS & CO.
(INCORPORATED)
ADAMS & PECK
.T
.
-
r
as
Halsey, Stuart & Co. Inc., 35 Wa.l Street, New York, N. Y.
■.
r
June 25, 1948.
Corp., Secur¬
IT
A
.v
'.
' '
^
<
-j"
,
,!
18
(18)
THE
COMMERCIAL
&
FINANCIAL
CHRONICLE
Securities Salesman's Gorner
Clement Appointed by J
N. Y. Port Authority f t
By JOHN BUTTON
The
appointment of Karl G.
Clement, as Deputy Comptroller
Within about five hundred miles north of New York City there
a
good many lakes and streams where you can catch fresh
wa'ter fish.
There are also plenty of fish in the ocean.
But I
Thursday, July 1, 1948
ity has been announced by Joseph
M. Byrne, Jr.,
3
Vice - Chair-
First
| Airline Equipment Trust Financing
of The Port of New York Author¬
are
.
,
happen to be
a fresh water fisherman and since I have an interest
in both fishing and selling securities, here is the way they both stack
to
Mr. Clement
of thinking. These fresh water fish consist of a few
bass, and the usual run of pan fish. If you go up to
and Putnam county and try wetting your line you can
fish your head off and come home with an almost empty creel.
There
are two fishermen for every fish.
If you try your luck the first day
up
my
way
previous¬
ly for 15 years
was
irout,
some
Westchester
of
the
trout
season
you
can
hardly get
your
line
into
the
with the Vick
Chemical
Company,
water
without snipping another angler on the ear or snagging him in the
pants. It is true that the experts write about the big ones that they
catch but their stories are something like this column (it's a lot
New
York,
serving as
Comptroller
and, after the
easier to write about it than to go out and do it). But it is true that
the first thing you must do if you want to catch fish is to GO WHERE
THEY ARE.
IN OTHERv WORDS, IT IS THE SAME AS IN MER¬
CHANDISING AND SELLING ANYTHING THAT HAS MERIT-
FIRST FIND YOUR BEST MARKET.
war, as
ant
Karl
♦
am as big a duffer
will find anywhere. I have waders, boots, rods and reels, flies,
minnows, minnow buckets, worms, frogs, gjrass hoppers, helga-
you
mites, net; mosquito oil and two shot guns. I have been up at the
crack of dawn—I have trolled for them, tossed flies at them, whistled
to them and once I even promised a big laker that I saw swimming
right by me up in Kensico Reservoir that I'd toss him right back if
he'd only turn around and take one nibble at my hook—but Mrs.
Dutton always goes to the butcher store and buys a steak before I
Assistthe
to
Chairman
Clements
G.
of
the Board.
Before that he
When I fisn around here I must admit that I
as
of the
m a n
Authority.
the
Assistant to
was
Comptroller
Bendix Aviation
of the
Corpora¬
tion of New York and South
Indiana.
During
Clement
served
Colonel
little's
the
General
on
war
Bend,
Mr.
overseas
as
James
member of the Con¬
a
go out to fish around here.
trollers Institute of America and
Several times during the summer, if I am able, I like to go
about four hundred miles from here (won't tell you the spot—you'll
is
have to find your. own). There I meet another stock salesman who
likes to fish and we take one rod apiece, some simple tackle and
A graduate of the University of
Minnesota, Mr. Clement was born
in St. Paul, Minnesota, in 1906.
start out.
we
But there is
don't find 'em in
If
we
place we go to another.
We drift and we troll
happens. It we get only an occasional
strike we keep going but when those small mouth bass start to hit
our minnows, our guide tosses out a marker.
Then we go back and
anchor, and the fun begins. I am the same duffer fisherman up there
where the: fish are—but the fish are hungry and they like our bait.
one
The
only time I ever come home without fish is when I go where
they ain't—-or when they are not hungry.
So many of us go through life withjthe-wrong tackle, or we fish
in
past Director of the New York
of the Institute.
Control
He is married and has
overworked
It doesn't matter
streams.
what
service or* product
do business even if
can
we
have
halitosis, flat feet,
homely face, or a hare-lip. We may not do as much business with
handicaps as we would without them but one thing is as sure
such
the
as
dawn
of day
and that is IF YOU WORK AMONG PEOPLE
WHO HAVE A DESIRE FOR YOUR
PRODUCT, and
you
rV<
MORAL:
If you are not
doing enough business maybe you need
guide to shbw you where the fish ('scuse me, we mean prospects)
are hiding.
Maybe you've fished in the same old stream too long?
Possibly your skill and your tackle are OK.
Maybe you need some
new faces to call upon. You obtain new prospects
by:
a
Advertising in your local paper—
Through direct mail—
*J
Through radiation from friends and customers—
By direct solicitation.
i >
v * *
'
P.; S.—Under
v
no
circumstances will
ing the location of that place where
Bendix,
-
Luitweiler
members of the New York
Stock
Exchange, announce the
pany,
Orlando
CHICAGO, ILL.— Martin E.
Nelson,
Treasurer
Emeritus
of
the
Chicago
Stock
Exchange,
where he has been employed since
June 27, 1904, has retired.
Elected
Treasurer
of
the
•
letters request-
always catch fish.
Club
New
in circulation and finds
G.
Ex¬
Herrick, Waddell
NEB.^Melvin
L.
Cramer and Herbert E. Nelson
are
HASTINGS,
now
connected
with
this
first "pilot"
offering
has demon¬
J.
Van In-
Other
offi¬
elected
cers
Norman
were
S.
amount
money
need for further credit controls.
the
and
Corpora¬
tion,
of
money in
circulation
holdings of government
bonds held by commercial banks,
Downey,
Union Securi¬
ties
no
time," the National Association of Manufacturers' research depart¬
ment reports in a study on bank loans and credit control.
"In view of the general;trerkL? '— '
of bank deposits, bank loans, the and low interest
is inconsistent
& Co. Inc.
gen
existing airliner
The general trend of bank credit during the first four months of
this year does not indicate "any serious inflationary threat at this
Couffer, of
B.
it
Vice-
seems
if
doubtful
there
is any
with
the
efforts to
restrict
bank:
credit and to ward off further in¬
flationary factors.
"Many bankers
find
the
;
and
business¬
President;
convincing
reason
at this time for
additional control
measures," the
tional controls at this time rather
study said.
puzzling,
"It appears to be highly desir¬
able to postpone the adoption of
trend of business and bank lend¬
T.
a m
Buyer, Secre¬
tary; a n <Jr.
George LeVind, Blyth & Co., Inc.,
E. J,
(Special to The Financial Chronicle)
change in 1939, Nelson served in
that capacity until 1942 when the
that
Study made by its research department points to decline in
suc¬
Altgelt, Jr., Harris Trust &
Savings Bank, and E. M. Mc¬
Laughlin, Paine; Webber, Jackson
& Curtis, were elected members
of the Board of Governors.
further credit controls until
general trend of bank credit
asserts itself more fully."
the
It
was
that
the
the
staff
of
&
MOBILE, ALA.—Steiner, Rouse
Co., members of the New York
Stock
Exchange,
opening of
the
announce
office is under the
management of Patrick E. Hughes.
Dudley
W. Lang, Jr., will
be
manager of the firm's bond de¬
partment .in this new office. ;
•
The
an
firm
will
tempo¬
occupy
pointed out in the report
Board
Federal
the
Governors
of
Reserve
System
of
has
provide addi¬
urged Congress to
controls.
tional credit
demand
quarters at 64 North Royal
until
the
building under con¬
rary
estate
and
loans
taken
are
as
consumer
strong
credit
reasons
the
amount
first
of bank
loans in
the
is re¬
garded as a seasonal or temporary
development which will be fol¬
the
of
quarter
year
addi¬
the general
of
"It is true that consumer credit
somewhat
higher, but commercial
business
or
loans
have
levelled
off, in fact have actually declined
from March 10, when commercial
and agricultural loans amounted
$14.6 billion."
The American Bankers Associa¬
tion, the study pointed out, has
urged
bankers
voluntarily
"to
scan all loan
applications and to
refuse any that are likely to prove
inflationary in character."
Since
for
exercising additional controls at
an early date.
The leveling off in
in view
for
and real estate loans have moved
appears
character,"
the
NAM
research
study said. "The advances in real
demands
ing," the report said.
to
to be
based upon
an
assumption that
the recent trends in bank lending
are
basically
inflationary
in
Steiner, Rouse Opens
Office in Mobile, Ala.
men
any
"This
Two With
predicts
James
Treasurer.
an
only other paid office employe at
the time.
Granger Farwell, then
President, was the first of 20
Exchange Presidents under whom
Nelson served.
From Chicago Exchange
Chalk
NAM Sees No Serious Inflation Tbreai
Co.,
Orlando S. Brewer
began his career with
the Exchange working with Wil¬
liam B. Wrenn, Secretary, as the
Martin E. Nelson Retires
first, and in the future, most of the important factors in the aviation
S.
&
of
*
Nelson
.smith.
J.
Frank
industry predict, it will become as general a financing practice as
it has been In railroading, thereby eliminating a principal drawback
in the expansion of our peacetime aviation industry.".
Brewer,' of Phelps,
has been elected
President of The Municipal Bond
Fenn
urer.
opening of a branch office at
Lake Placid, N. Y., under the
management of Eric M. Gold-
•
we
& Co.,
Momot, Trust Officer, Colonial Trust Co.,
trustee; and O. Roy Chalk, President, Trans Caribbean Airways.)
Mr. Otis, speaking for the underwriters, said: "This pilot equipment
trust financing for Trans Caribbean is important in that it is the
underwriters;
covered the purchase of a single DC-4 plane and cuts
Hall, Jr.,
Daily
Bond
advisory capacity. Previously, for
14 years, he acted as Assistant
Secretary and Assistant Treas¬
Com¬
&
answer any
history.
in
Gearhart
W i 11 i
active member of the staff in
Bendix, Luitweiler Branch
-
we
financing
Vice-President,
finance charges on the equipment in half.
have even
ordinary common sense and don't kick .your prospective customers
in the face YOU ARE GOING TO DO BUSINESS ("CATCH
FISH").
equipment trust
Otis,
Municipal Bond Club
ceeds
We
V.
Edward
Brewer Pres. of N. Y.
York. He
are
of first airplane
right:
to
Mr.
do business.
a
daughter.
(Left
strated that equipment trust financing will become standard practice
in aviation as it has been in the railroad industry.
This financing:
offering to our fellow men—if the thing has merit and
enough people can use it, and are HUNGRY enough to buy it, we can
we
a
of later something
—sooner
,
catch to it—WE HIRE A GUIDE.
a
Closing
Eighth Air Force staff. Mr.
Clement is
a
*24
a
Doo-
April
Dec.
of
31,
this
1947, through
the study
year,
noted, the total amount of money
in
circulation declined from $28.9
to
$27.8 billion—or
billion
more
fyy
.
than $1 billion.
"This
decline is
..',:
in
sharpy con¬
lowed later in the year by an ex¬
trast to the
pansion of bank loans.
"The Secretary of the Treasury,
on the other hand, does not recog¬
isted in this country from Dec. 31,
1945,
to
trend
had
ex¬
trols of bank reserves which have
Herrick, Waddell & Reed, Inc.,
55 Liberty
Street, New York City.
PRIMARY TRADING
:
.
....
..
....
...
.
struction at 108 North Royal
ready for their occupancy.
U. S.
.
=
...
& M.
KINNEY-COASTAL OIL COMPANY
KUTZ CANON OIL & GAS CO.
OIL
&
DRILLING
of
$8.00
a
are
of
,
'
to support a liberal policy
The $4
Preferred (convertible into
shares of Common) at 64 merits
regard
to
mortgage
loans for veterans.
"The Treasury,
ance
for
with the assist¬
of the Federal Reserve, con¬
tinues
request
with
its
price support program
government obligations." ^
study observed that "it is
NAM
end
research
in circulation which takes
place at the end of each year, the
drop seems in this case- tobe
clearly
more
cline. ' If
founded,
amount
will
some
than
this
the
of
be
at
tionary."
a
seasonal' de¬
conclusion is well-
decline
money
regarded
least
as
' :•
in
inv^fhe
circulation
doubt
no
by
mildly idefla¬
•
•:
_
r
.
The
California Building, Denver 2, Colorado
.
appears
by the Board of
government still
cially
consideration.
Simpson &• Compa
Telephone KEyrtone 3161
The
toward real estate financing, espe¬
on
Established 1929
B. E.
requested
stock
regular $2.50
basis,
yielding
over
11 %
at current prices.
on
for additional con¬
common.
a
Analytical description
money
nize the need
Governors.
at the annual
share
Directors recently placed
3
MACKINNIE
Finishing Co.
Current earnings
rate
CRESSON CONS. GOLD M.
is
of 1947," the
department! said.
"Making allowance for the sea¬
sonal decline in the amount of
been
Board of Governors elected him
h Treasurer Emeritus, to remain an
the
which
Bell Teletype DN 157
A. G.Woglom & Co.
Incorporated
49 Federal
>
^
'
St., Boston 10, Mass.
HUbbard 2-0773
v
Tel. BS 189
unfortunate that the difference of
opinion
exists" between the
Treasury and the Board of Gov¬
ernors.
It is generally recognized,
the analysis
continued, that the
Treasury
policy of price-support
Joins
Goodbody Staff
(Special to The Financial
Chronicle)
*'
CHARLOTTE, N. C.—Mrs. Thelma
Cloaninger is with Goodbody
&
Co., 137 Brevard Court.
r
Volume
THE
Number 4712
168
Brown &
Bigelow Slock Now
COMMERCIAL
For
Growth Trend of Sales and Profits Continues in
Marked
Brown
'
stock
&
Bigelow's
value common
Stock Exchange on
the public only
the over-the-coun-
of $1
shares
1,263,645
par
This stock, which was offered initially to
six months
ago,
previously has been traded
ter
market.#
H
d
e a
e
d
.
by
Charles
A.
Ward, as President and
on
.,;
collateral value because
banks, in making loans, favor se¬
added
curities with
exchange market.
an
in
Established
1896,
the
com¬
pioneer in the field of
calendars, which is
ager, the com- advertising
p a n y's
net still the company's most important
sales
in
the product.
Today 73% of all the
General Man¬
past ten years
have
jumped
from
$6,355,-
625 in the 1938
fiscal, year
to
$34 774,313 for
Like¬
1947.
wise, net profit
Charles
A.
Ward
has
from
Mr.
commercial calendars hung in the
Bigelow's.
However, in recent years the com¬
pany has diversified its business
to include advertising items in the
paper line, leather goods, engraved
products, metal and plastic novel¬
ties, and playing cards, '.v ;
country
Brown &
are
sells directly
through a nation¬
& Bigelow
Brown
to its customers
Congress
Pavis', of C. E. Quincy
& Co., a member of the Security
Traders Association of New York,
was given the Republican designation
Congress
Staten
improvement.,
the
trading
fraternity are
well
of
-
Frank's
un-
For
energy.
he
years
held
provided for under Article V, Sec¬
Bank's Articles of
6, of the
A.
Frank
im¬
Pavis
served in Poland
1946 he
as
a
ciation
and
in
1947
Second
was
Frank is
other
that year he has been Special Ad¬
visor to the Director of the Divi¬
activities.
Council
The
convene
once
a
is
year
members, selected by the
Governors,
serve
for
a
term of two years.
It is the function of the Coun¬
cil to advise the Bank
on
matters
the
on
Since November
of
ber of the
Catholic
was
of
of
Economic Stability and
Development in the Economic Af¬
fairs Department of the United
sion
Staten
Is¬
Nations.
pur¬
the
Island
Staten
a mem¬
Memorial
He is
Association's
re¬
a
director of Staten Island
Social Service and
of
the
Men's
National
Chairman
was
Committee
Catholic
the
sf
"We must insist that reconstruction of Western
Service Center in St. George dur¬
ing the
war.
Europe be
as a whole. That must include the res¬
toration of the productivity of Germany, or Europe
In 1944 he was designated for
City Council by the Republican
County Executive Committee. Al¬
though his name was ruled off
the ballot by technical defects in
his designating petitions, he re¬
ceived a large write-in vote in
the general election.
many
He is also
will die.
"We need neither forget nor condone Nazi
guilt, but a free world must not poison its concepts
of life by accepting malice and hatred as a guide,
Otherwise, not only will our efforts fail, but the
American taxpayer will be bled white
supporting
selves to assist in his campaign.
Members of the Advisory Council
Sir Arthur; Salter, Chairman of
the Advisory Council, is an emi¬
economist. Through¬
nent British
out his
career
important
was
he has held various
He
posts.
government
Director of the Economic and
Financial Section of the League of
Nations
for
and a
member of the League Economic
eight
years,
'Advisory Council since 1932. He
served as Senior Deputy Director
General of UNRRA in 1943-44,
and has been a member of the
British House of Commons since
1937.
Beltran, Peruvian agri¬
culturist and statesman, was for¬
Pedro
member of
a
numerous
,,
His friends in the financial dis¬
trict
rooting for him and
of them have pledged them¬
are
Lionel C. Robbins, British econ¬
he
war
Director
was
Section
nomic
British
Offices
of
the
of
of the Eco¬
Cabinet
War
member
of
and
the
was
has represented his country
man,
at
numerous
and
ences
the
international confer¬
The Financial
INDIANAPOLIS,
W.
O'Loughlin
is
served
as
Ambas¬
'
Colonel
R.
in
a
:
some
sanity in this matter of foreign
Joins
Herrick, Waddell Adds
(Special to The Financial Chronicle)
with
Investment Business
(Special to
CHARLOTTE,
duct
a
past he
Trust
Building
to
has
staff
Thomson
Joins Leason Staff;.
securities business.
was a
•
(Special to The Financial Chronicle)
CHICAGO,
In the
Cole
of
partner in Kennedy
& Ragan, f 4
ILL. —George
has been added to
Leason
&
the
of
Johnston
s:
con¬
N.
Edmond
The Financial Chronicle)
INDIANAPOLIS, IND.—Paul S.
has opened offices in the
Thomson, McKinnonl
(Special to The Financial Chronicle)
CHICAGO, ILL.—Bertha B. Fox
Joseph M. Vandeveer are
Herrick, Waddell & Reed,
Inc., 332 South Michigan Avenue.
Resumes
been
C.—John
added
&
Electric
Company,
Ltd., of Can¬
ada since 1938.
U
K! \
William Smith Opens
;
BOSTON, MASS.—Clayton Se¬
sel field.
ate
of
ORANGE, N. J.—William A.:
Smith is engaging in a securitie:
R.
staff
business from
Co., Inc., 39 South
La Salle Street.
offices at 340 Lin-<
coin Avenue.
:%
ness
980,000 SHARES
UNITED OIL CORPORATION
Ir-r
I
V COMMON STOCK
,
University
and
the
Administration.
With
(Special
LOS
PRICE 301
Hopkins, Harbach
to' The
Financial
ANGELES, CALIF.—Lloyd
members of the Los Angeles Stock
-
.
»
I'Leon Jouhaux of France, promineht In international labor organ¬
izations,
•the-
was
Vice-President
Trade Unions for four years
a
war.
of the Bank of France.
Kalecki,
South
Orders executed by
:<
R. V. KLEIN COMPANY
in
•170 BROADWAY. NEW YORK 7, N. Y.
Edgar Lanfare Opens
Edgar
fices
York
Polish econo¬
mist, ,li&s had wide experience
i;,v
affili¬
Harbach &
Grand Avenue,
Exchange.
He
was
previously
with Edgerton, Wykoff & Co.
prior
From 1936-38 he was
member of the General Council
Michal
609
become
Hopkins,
of
International
to the
Co.,
with
of
Federation
ated
ties
at
Lanfare
has
opened
Exchange Place, New
City, to engage in a securi¬
business.
He
was
Telephone DIgby 9-270O
of¬
40
June 24,1948
:
formerly
with Hanson & Hanson.
W--.
w:;
PER SHARE
Chronicle)
Council.
.
4v
We Offer
Mr. Hawley is a gradu¬
Yale
W. Spitzbarth has
,
;
S
Hawley, V.-P.
Clayton Sees.
Hoover, former Presi¬
United States, repre¬
sents ^commerce on the Advisory
Herbert
dent of the
\
.
-——
Canadian
industrialist, has been
Vice-President, General Manager
and
Director
of
the
Northern
F 1
tn
McKinnoi\
Building..
Harvard Graduate School of Busi¬
Harkness,
Dickson
to
E. B.
Corporation, 82 Devon¬
shire Street, announces that Ed¬
Chapultepec and San Francisco.
Edward Eagle Brown, of the mund
Blair
Hawley,
formerly
United States, is Chairman of the Vice-President and director of the
Board of the First National Bank American Block Company, has be¬
of Chicago. He has been President come associated with the organ¬
of the Federal Advisory Council ization as Vice-President and will
of the Federal Reserve System specialize in the investment coun¬
Bretton Woods.
l
<
IND.—Ernest
engaging
curities
1934, and was a member of
United States delegation at
•
and
Ragan
Fletcher
Britain
and
despairing German; people."—Herbert
aid!
Ragan
sador.
delegate to the international con¬
at Bretton Woods,
since
idle and
Chronicle)
securities business from offices at
418 East Fifteenth Street.
well-known in both
has
he
(Special to
States
is
United
where
Ernest O'Loughlin Opens
a
S. K. Alfred Sze, Chinese states¬
Of
!the
•
At length,
United
Kingdom
delegation at Bretton Woods.
merly Director of the Amazonas
Corporation of Peru and President
of Sociedad Nacional Agraria of
Peru. He served as a Peruvian
ferences
an
Hoover.
national scientific societies.
omist, has been Professor of Eco¬
nomics in the University of Lon¬
don since 1929.
During the last
1
ization.
Community
honors for his work in this field.
member countries.
Hoover
Herbert
of
cent ball.
confronting
those
year
did not
we
"We must not create a perpetual dependence
Europe and Asia upon us. We must not soften
their preparedness to meet their own dangers.
Otherwise our sacrifices will only undermine their
self-reliance and the contribution they must make
themselves toward the saving- of western civil¬
Advisory board of the
Organization and
Youth
Sir G. Venkata Raman, of In¬
dia, a scientist of note, is inter¬
nationally famous for research in
physics and has received many
particularly
present 40-odd
our
tions in
Vice-
at present
general policy. These are ex¬
pected to comprehend world-wide
economic and financial problems,
of
economic
"Therefore, with full compassion for those na¬
difficulties, certain^ matters in aid to them
must be recognized on both sides of the world.
"Our task is solely to aid their reconstruction.
We can provide only bare necessities. There is no ;
room for
non-essentials, profligacy, or inefficiency;
on
and
Chairman of the Staten Island
War
In
Central
Planning Board, the Ministry of
Finance and the Ministry of; Re¬
construction.
known
Community Chest. He is
Agreement, is comprised of 10
members, representing banking,
commerce, industry, labor, agri¬
culture, science, economics, and
expert
Well
Manhattan
President
fi¬
us
portant posts in the Traders Asso¬
ing activities for charitable
the field of economic research.
nancial
costing
:
properly main¬
tain and expand the great tools
of production and distribution
upon which our standard
of
living depends.
v
bounding
many
and
people that in the
our
1947
lands for his efforts in fund rais¬
Council of the International Bank for Reconstruc¬
annual meeting at the Bank's
headquarters in Washington, D. C., July 19-23, under the chairman¬
ship of Sir Arthur Salter, of the United Kingdom.
The Advisory Council, which is#
of
c
quainted with
distribution outlets.
The Advisory
Board
a
social
"Even
.
be
.
billion taxes and the export of
materials so drain the savings
Members of
dition, the company
tion and Development will hold its first
and its
re¬
sides.
have
now
we
internal
Island
soon
Our
year.
budget threatens to in¬
$50 billion a year un-; 4
delay many plans for
includes
both
I Advisory Council of World Bank to Meet
required to
less
District which
a
to
crease
Congressional
poses,
tion
Federal
said that the Brown
Ward
$22 billion
over
Vice-President.
In ad¬
has 21 foreign
Relief and defense will
ears.
for
he
we are
today certainly straining our American economy to
the utmost. Warning signals already clang in our
from the 16 th
where
19
Hear! Hear!
ing out of 38 sales offices.
Bigelow stock would
(19)
"Our friends abroad should realize that
wide sales force of*930 men work¬
$447,117 to $2,267,661 in the same
ten-year period.
&
pany was a
risen
sharply
CHRONICLE
Frank A.
Way
admitted to listing on the New York
were
June 25.'
FINANCIAL
GOP Names Pavis
Big Board
on
&
..via;
%
-
IS* f «&•?: *
Jxl'i
■
-•vh
•
V
r
>
iiwv
*vr
i
20
(20)
THE
COMMERCIAL
&
FINANCIAL
CHRONICLE
Thursday, July 1, 1948
Newton Parkes, Jr., Is
Now With Bioren Go.
Canadian Securities
By WILLIAM J. McKAY
Nevada Banker
Jay E. Brinton endorses proposal
H.
-
the
casual
observer
it is no doubt highly remarkable that
in view of Canada's spectacular economic
progress since 1939, the
exceptionally capable management of the country, its unblemished
credit-standing, and the Dominion's unexcelled prospects, that any
doubts
PHILADELPHIA, PA.—Newton
Parkes, Jr., is associated with
Co., 1508 Walnut Street,
external level of
10%
dis¬
count.
Canadian
exports
reached
tion.
Said Mr.
tional
the aim of
money
had the attitude towards its world
responsibilities been less generous
considerable degree by
of foreign credits, the
and constructive. Too little atten¬
financial
tion has been paid to the fact that
strengthened
Canada's contribution to European
relief during and since the war
the
has been
greater
on
a
foreign countries during the war
alone accounted for $3V2 billion
(and it must be understood that
Canada did not accept one penny
of Lend-Lease assistance). Since
the
the
war
Canadian
contribu¬
tion to post-war recovery in the
shape
loans
of
has
amounted
to
approximately $21/a billion. For a
country whose population is only
one-twelfth of
try such
that
this
of
an
effort
has
diate
strain
placed
the
on
imme¬
severe
a
Dominion's
financial ^resources,
it has in no
way impaired Canada's basic eco¬
nomic strength. On the contrary
Canadian
the
as
wisely foresaw, it
order
administration
was
essential in
maintain the impetus of
to
the wartime economic progress, to
do everything possible to maintain
world-markets
in
3:the
post-war
transition
Canadian
achievement
more
one
had
difficult
period.
This
all
is
the
remarkable as, while on the
hand the Dominion
to
economy
this tremendous
volume
of foreign
expenditure,
during the same period Canada's
support
direct external debt to this
coun¬
Great Britain was
drastically reduced.
Having surmounted with such
outstanding distinction the diffi¬
try
cult
and
war
s
i t
u a
immediate
t i
will
be
now
it is
as
the
on
becoming in¬
that Canada is
clear
threshold
of
the
close
Canadian
student
scene
of
the
readily share
can
with the casual observer
certain
a
postwar
economic hurdles it is enlighten¬
ing to examine the present situa¬
with an eye to the future.
concerning any
stand¬
Canadian dollar and
ing
of the
Whereas
was
before
principally
During the week there
was an
increased volume of supply of ex¬
ternal bonds but prices were well
maintained.
cline
After
the
internal
the
recent
bond
de¬
section
displayed a firmer tone but activ¬
ity was still on a restricted scale.
Stocks were irregular and mostly
lower
with
the
gold
averages
touching their lowest levels since
1943 following continued switch¬
base-metals
resist
the
trend
inclined to
downward
especially
general
and
keen
were
there
demand
was
Consolidated
for
Mining and Smelting stock.
Winners at
Outing
Of Investment Ass'n
At the second annual outing of
the Investment Association of New
York held
Wednesday at the Mont-
clair Golf
Union Securities Corporation
take
conditions for
the
low
gross
80
an
to
award in the
A steady drizzle
intermittent
and
rains
low
visibiliity hampered the golfers
during the day and washed out
tennis and other games.
were
PROVINCIAL
|
MUNICIPAL
CORPORATION
Over 75
i
TORONTO,
ONT., CANADA—
the closing of nominations
With
the
officers
of
R.
J.
committee
and
The
Toronto
Stock
Breckenridge of
pin
on
dent
for
the
second
The position of Vice-Presi¬
term.
handicap.
again filled by A. L. A.
was
house
&
Co.,
elected
was
Secre¬
elected
of
set,
top
prize in the raffle.
Moore
of
-v
Schroder,
Rockefeller & Co., Inc., President
A. E. AMES & CO.
INCORPORATED
of the
.Association, presided at
a
dinner in the evening and
Stanley
Russell, Jr., of Blyth & Co., Inc.,
TWO WALL STREET
NEW YORK 5,
N. Y.
in
charge of outing arrangements,'
awarded
junior
WORTH 4-2400
NY-1-1045
treal,
were
Legg.;,
the
prizes.
groups
in
Boston
and
guests
in
Heads
Toronto,
of
Mon¬
Philadelphia
addition
lines that they have been
going for the past 15 years it seems
inevitable that the situation
I think
get
tliat
some move
by the banking fraternity to
our
nation
back
on
a
gold
is
6.7%;
those same statistics show
Nevada's average to be 4.4%—so
build those reserves up as fast as
the tax commission will permit.;
"I surely
hope you Will con-*
tinue
the
fine
support
have
you
given the Association and its offi¬
cers
the past year and I
Will hope
should be
deposits
that the new
-
especially
officers will
be able to bring our tax problem
to
a
successful conclusion.
They
Will need your wholehearted co¬
operation."
Finds Canadian Dollar Situation Better '
Bank of Montreal "Business Review" of June reports excess
of imU. S. in six months since import restrictions were
imposed* have reduced frpm $457 million in 1947 to $219 million
ports from
in current year.
The
"Business Review"
Frank
were:
Canada
and
the
University
During the
ment
of
G.
of
he
war
Munitions
Newly elected
College
Toronto.
Director
was
and
as
Depart¬
Supplies.
member
a
of
Managing Committee, John C.
and the
of Montreal, takes an
Moss, Lawson & Co*,
million between the two periods."
nature,'' the review states. "Thus,
Commenting on trade with all
countries, the review says that,
while the government had esti¬
mated that the surplus for the full
continuing increases in dollar ag¬
calendar year
der
of
might be of the
or¬
$150 million, a favorable
of $145
balance
jnilliori had
accumulated
ready
during
al¬
the
some
largely
a
of prices or an ad¬
up
in
vance
rates
of
Indeed,
pay.
element of present
tential
instability
cerned
in
of
first five months.
represent
gregates
marking
and
po¬
dis¬
be
can
repercussions
possible
changes in prices and costs."
University of Toronto.
S. F.
SAN
The
FRANCISCO,
San
SEG
Exchange Gov#
Francisco
Stock
Ex¬
to
Mr.
the
has
Board
announced
to
fill
that
the
the
vacancy
caused
by the resignation of Ar¬
Selby. Mr. Greene and
Mr. Selby are both general part¬
thur
N.
ners
of
Mr.
Greene's
upon
the
the
firm
of
term
Sutro
will
&
the next annual election of
Exchange.
has been
a
Howard J. Greene
member
of the
Stock
Exchange since Jan. -2, 1930.
has
Co.
expire
served
on
most
of
the
He
Proposes Some Changes in Prospectus Data
The Securities and
CALIF.—
change
Philip
same
to
covering June, published by the Bank
optimistic view of the U. S.-Canada dollar sit¬
uation in the light of recent developments.
W. G. Malcolm of A. E. Ames &
"Foreign trade figures to date afford evidence of the effect that
Co., Gordon W. Nicholson of G. W.
governmental measures have had'^Nicholson & Co., T. A. Richardson
The
toward resolving the problem of
Bank
of
Montreal
also
of T. A. Richardson &
Co., J. B. Canada's U. S. dollar deficiency," points out that, in appraising sta¬
White of J. B. White & Co., and the bank observes,
"In the six tistics of business activity, "it is
J. C. L. Allen of C. C. Fields '&
months since import restrictions becoming increasingly important
Co.
were imposed last November the
to distinguish between those rep¬
President Breckenridge has
beep net excess of merchandise imports resenting physical units and those
a member of the
Managing Com£ from the U. S. A. has amounted expressed as money values."
mittee for some years.
'•'Production
in
quantitative
Starting to only $219 million as compared
with N. C. Urquhart & Co; 25 with $457 million in the same terms;; the real measure of eco¬
nomic growth, is at very high
years ago, he became a partner in period a year earlier," the review
stresses.
"It is noteworthy, how¬ levels by peacetime standards but
1933 and on the retirement of Mr.
Urquhart in 1942, continued the ever, that this reduction of $238 appears to be touching the limits
bal¬ of capacity set by the full em¬
firm under the name of Brecken- million in the unfavorable
ridge, McDonald & Co.
A new¬ ance is accounted for predomi¬ ployment of human and produce
comer to
the officers, George L. nantly by greater exports to the tive
resources
under
existing
Jennison, has been 23 years in the United States, which increased
working conditions, and is subject
$158 million, rather than by re¬
brokerage business. He was edu¬
duced
imports, which fell
$80 always to the variable bounty of
cated at Western
mittee
Lawson
Board of Governors had appointed
Howard J. Greene a member of
television
managers
money
the
redeemable, but if our
continue along
is
rency
yet
as
accounts
of
percentage
average
capital
near-
E. Johannes Schuy-
a
real currency
except for the
fact that very little of our cur¬
inflation,
Members of the Managing Com*
ten of The First Boston
Corpora¬
won
around,
higher
each round.
Dickson, Jolliffe &
Co.,
while
D'Arcy
Manning
Dohertyf O.B. E., of Doherty Roadf
tion
CANADIAN STOCKS
goes
Richardson of
Rodney
Boynton of H. F. Boynton & Co.,
Inc., was the winner in the kick¬
ers
it
made
acclamation
Allen, managing partner of C.
visitor
at the outing, took the low net C. Fields & Co., has been 20 years
in the brokerage business. He was
prize with a net 62. John Coggeshall of Coggeshall & Hicks, drove educated at Upper Canada College
est-the-pin competition.
as
by
the
the seventh hole to win the
the
get completely out of control—and
L.
to within three feet of the
made
are
at the national
level, however, We
in Nevada'must
keep our banks
the firm of Breckenridge, McDon¬
& Co. was elected President
ald
ker group
a
'
changes
some
by the actions of
caused
"We haven't any
Heads Toronto Exch.
junior investment banker and bro¬
in that city and
control
to
powers
on
Breckenridge Again
of Priorities Branch of the
present.
William Legg of Mackubin, Legg
8c< Co.,
Baltimore, head Of the
"Until
Jay E. Brinton
uncontrollable
tary, and George L. Jennison of
Wills, Bickle & Co., Treasurer," all
of whom took office by acclamjfings from this section; to the in¬
v
dustrial issjueS. .The* papers, oils, tio»<A->.
and
proposition,
depart¬
wants
and inflation seems to edge
Exchange,
leyel.
national
a
inflation
ready for any eventuality and that
the first means build
up your capital ac¬
department ; and soon creates a count. ' Statistics
show that the
cycle that gets more chaotic and national
trading department. Mr.
formerly with the
trading department of E. H. Rol¬
lins & Sons, Philadelphia office.
for
with
GOVERNMENT
and
York
New
was
members
currently depressed
golf competition.
CANADIAN BONDS
the
advocated
create
monetary commission to study the
an¬
other
ment
the best way
and
Philadelphia Stock Exchanges, in
bonds at their
weather
Canada
of
,
Congress
defi¬
a
real gold
a
the firm's
Parkes
the value of Dominion of Canada
transformation.
war
tion, then
Parkes, Jr.
that
infla¬
to
be
-
inflation,
cure
San
Texas
Convention,
belief that
the
standard would
to
in¬
of
the
additional
doubts with regard to the
Club, Joseph A. Lee of
shot
a 40 on both the outgoing and in¬
coming
nines
under
miserable
the
H.
bewilderment
Since 1939 the Canadian economy
has
undergone
a
remarkable
tion
members
new
and greater era of economic prog¬
ress i
N;
..
extensions
on
expressed
at
nite plan to return
in¬
to
and
crease
taxefr^tq^any
balance of trade.
creasingly
aganda
re¬
Canadian
or
will
put out prop¬
now
a consequence of
overall favorable
as
Dominion's
to
and
is
it
Dominion's
coun¬
effort is truly aston¬
Although this superlative
ishing.
the
will not be,
sources
capita y Moreover
per
basis than that of this country it¬
self. Outright gifts (Mutual Aid) to
As
year.
Bank
Association
evident
that
National
Bankers
place that Canada's cur¬
rent problems would be few indeed
this
Frost
agers—onede*-
the first
anomalous
Frost, Chairman of the Board of
the
speaking
cite
apparently
en¬
actment of the Mundt Bill—J. H.
our
partment
Na¬
Monetary
on
Antonio,
corded
this
Economist's
man¬
situation it must be understood in
ciate
The
Committee
Policy has recommended the
be
to
faction
to appre¬
standard.
confusion
seems
$2% billion and still
further progress' is indicated ac¬
cording to the results so far re¬
commence
urged the return of the
the most efficient means of preventing
"Constant
:
ord total of
In order to
as
Brinton:
rec¬
a
Ely, Nevada,
nation to the gold standard
infla¬
concerning:
<♦>
■
(1) The ability of the Canadian a producer of primary products,
dollar to hold its prewar parity in
today while still maintaining her
relation to the U. S. dollar,
;
eminence in this field, the indus¬
(2) The value of \Dojninion of trial output has tripled in com¬
Canada *3%
(payable" in\U. S. parison with the 1939 level. Last
funds at par) internal obligations
year in consequence the value of
at the
of inflation and endorses
cure
Speaking at the annual convention of the Nevada Bankers Asso¬
ciation last week, its retiring
President, Jay E. Brinton, President of
First National Bank of
the
further
held
are
as
Mundt Bill.
B'oren &
To
Urges Gold Standard
on
June 24 announced
responsibility for the ac- <*
of statements made when SEC; and (4) amendment of the
based upon information which is item calling for information as to
not reasonably available or which the registrant's principal'^holders
can
be acquired only with diffi¬ of equity securities - So as' to- in¬
culty and relatively heavy ex¬ clude information on transactions
affiliates,
whether
such
pense;
(2) modification of the with
sume
curacy
item
with
tion
regarding
officers
reference
and
to
informa¬
enumeration
directors;
(3);
to
re¬
quirement that copies of the pre¬
com¬
mittees of the Exchange and rep¬
resents his firm on the Floor of
the Exchange.
^;
Exchange Commission
proposed changes in its registration requirements unc^er the Securi¬
ties Act of 1933. The four most important proposals are: (1) deletion
from the prospectus of a disclaimer that the registrant does not as¬
liminary
or
"red
herring" pros¬
transactions
involve
the
acquisi¬
tion of property or not.
•Underwriters
ested
parties
are
and
other
inter¬
given until July
23 to submit comments or recom¬
pectus; if distributed, be in iden¬
mendations
tical form with that filed with the
posed changes.i..
regarding these
•
"
,,
;
\
pro¬
:
/
-
<0
168
Volume
New York Curb Exch.
Celebrates
COMMERCIAL
THE
Number 4712
■
FINANCIAL
&
CHRONICLE
Public
Anniversary
Utility Se
Robert M.
Smith, President of U. S. Savings and Loan League,
says it is peak of any three months period.
is celebrating its 27th anniversary
the
passing
curb
the
of
Wall
near
Street for many years.
27, 1921,
On June
sizable group of bro¬
a
kers long accustomed to
air
open
/trading; met for their first busi¬
ness day on the trading floor of
•their
new"
quarters f- in
Trinity
•Place.
/
The Curb
Exchange,
of two
one
national securities markets
United
in the
States, traces its origin
a period before the Civil
Through its early history
back to
•War.
•the old outdoor curb market had
•operated in a number of places in
'the Wall Street vicinity, first at
Wall
and
later
in
Hanover
William
Streets
Street
and
between
Exchange Place and Beaver Street,
where
it
remained
during the
Civil War before seeking added
"space in Broad Street.
The
'step
first
recorded
toward
'outdoor
constructive
organization
curb
Niagara Hudson Power
old- outdoor
market, which had operated
•daily in Broad Street
*
v
indoor securities market and
as an
brokers
the
of
This plan had already received the blessing of the New
Service Commission, after a long period of hearings
investigation of accounting^
problems." As the apparent price benturespi Niagara iHudikih;':!rhusi''.
of approval by the State Commis¬ while holders of the present Ni¬
sion, the company agreed to make agara stock would receive no in¬
certain write-offs
in
subsidiary come, their subscription price to
operating
stock
would
plant accounts,, and to increase obtain
depreciation
reserves
to
ef¬ shrink quarterly, and eventually
fect substantial conformity with they would get the stock "free."
Chairman
Maltbie's
ideas
of Wealthy holders
would benefit
straight-line accruals (Mr. Malt- tax-wise by foregoing current in¬
come and
bie has recently resigned).
obtaining the the incre¬
ment of value as a capital gain.
On June 22
a
supplementary
Moreover, the holding company
plan was filed with the SEC -pro¬
company.-.
Public
viding for recapitalization of the
holding company itself. The ma¬
jor problem is to effect retirement
of senior obligations, including a
bank
loan
of
about
$25,000,000
(which will be reduced to $20,-
which all
New
which
paid off).
day.
in vogue to¬
are
"established and the'
listing department organ¬
ized at that time,
By 1915 the volume of outdoor
.
were
security'
make
.
transactions
began
to
indoor operation imperaOn June 6, 1919, the New
an
'
tive.
[York Curb Market Association de->
; cided in open meeting at the Hotel
Commodore to
[ March 30,
changing
"
;
a
its
the
market
New
the
as
Exchange
one
of the
Exchanges.
Its
function in the financing of Amer; ican industry is widely recognized,
is its role as an international
marketplace for the trading of securities of many foreign nations
and companies.
^as
.
Bond trading dur-
ing 1947 amounted
to
close
market
$88,638,000
against $25,510,000 in 1921. At the
of
1947
total
of all stocks dealt in
-
;
Exchange
was
»
while
had
-
of
bonds
on
value
the Curb
$12,144,870,196,
a
market
value
$1,057,783,791. M
At present the New York Curb
•
i
Exchange lists
a
total of 823 stock
and 111
;
•
bond issues. The last seat
sale
arranged
at
was
$23,000,
I vious
up
sale
of
on May 18, 1948
$3,000 from the pre$20,000 on May 17,
'
-
,
J948-
The present seat market
$12,000 bid
and
is
$23,000 offered.
Court
Burley Co. Regains License
has
had
its
broker-dealer
for the preferreds, the
par
man¬
agement "evidently hopes to avoid
-litigdtion arid' tb speed corisumf
mation of the plan.
registration
as
a
restored
by
the
Com¬
mission. The Commission had re¬
voked the firm's registration in
Securities
next step will
The
and'Exchange
the
New York State Supreme
Court; against Chester C.
Burley,
Sr.,; based upon the same trans¬
action. Chester C. Burley, Sr. and
Albert W.; Burley are
partners in
the firm*;.,
for
program,
[expected
earn¬
to
A novel method has
The
stock¬
common
holders of Niagara will be offered
exchange rights (in effect sub¬
scription rights): on payment of
$7.50 per share they will be en¬
titled to exchange their stock for
an equivalent number of shares of
the
new
stock of the merged op¬
all owned
first
in
overhead
should
be
reflected by withdrawals of
$754,000,000 during the same pe¬
riod.
The resulting net \eceipts
of $276,000 000 were second only
were
the
137-year his- '
tory of these
savings insti¬
tutions
the
to 1947's record $310,000,000.
that
dollar
mark
has been
sur¬
in the
three-month
passed
their savings to make these
purchases during January, Febru¬
ary and March," the League Pres¬
upon
period ending
Marchi 31.
The
ident said.
*
figures
released
Mr. Smith attributed the record
by
savings
show
Col. Ralph
M. Smith
ment
that
savings
'
placed in sav¬
ings institutions totalled $1,030,000,000 in the first three months
of
1948
000
compared to $917,000,-
as
for the
The
the merged
operating
and the holding com¬
While the former benefits
both
corresponding period
received
other
continued
rise
of
the cost
of
living and the much greater
availability of consumer goods
reasons),
the
dividend
future
remaining
income
company
stock.
v r"
This might
seven
a
years
take about five to
to effect, and it seems
little doubtful whether the SEC
to this long extension
of life for the holding company.
However, such an objection might
agree
be
met
by an amendment which
would provide for acceleration of
the plan under favorable market
conditions—i. e., public offering of
the
balance
operating
of
the
shares
$7.50
new
has
subscription
stock.
been
of
the
dividend requirements re¬
$9,900,000
(about
$1.04 on the 9,581,000 shares out¬
standing). It is estimated that fu¬
some
ture
After
paid
price
the
deben¬
at face
$4 per
of
the
for the
bank
a
continued
savings
high in¬
in thrift institu¬
tions and asserted:
"Money set aside in savings to¬
day reduces present inflationary
necessary
and provides the funds
;
to finance the current
record-breaking program of home
construction."
Reports Building Contracts at Record
F. W. Dodge Corporation reveals May construction east of Rockies
at
highest peacetime value for
single month.
any
F. W. Dodge Corporation reveals that May construction contracts
in the 37 states east of the Rocky Mountains established the
highest
peacetime dollar volume
ever
recorded in
a
single month.
The fact-finding organization for the building
that May's- total of $970,789,00C<$-
industry reported
and industrial
The
month
building projects!;
fourteen
near-billion
was
total
last
44% greater than that
reported for May of last year, and
was 11 % higher than the total for
reporting districts in the
first five months.
owned
'
classified
Projects
accounted
r
;
'
publicly
as
for 31%
of
—rnrnmm———"
,
'
State Bond & Mtg. Co,
'
Add
(Special to. The Financial Chronicle}
year.
this price;
on
Mortgage Co., 26J/2 North Minne¬
sota Street. '<
R. L. Day & Co. Issues
Annuals
R.
L.
Legals
on
This
Co. has released
its annual legal booklets on Legal
Investments for Savings Banks in
Day &
as
advertisement
an
is
and
not
under
is
circumstances
no
to be construed
solicitation of an offer
The offering is made only
.
offering of these shares for sale or as a
to
buy any of such shares.
by the Prospectus.
1
'
NEW ISSUE
Massachusetts and in Connecticut.
Revised to June 1 and April 1, resoectivelv, these booklets list the
United
States
Treasury, munici¬
pal, public utility, railroad and
industrial bonds now legal, to¬
gether with pertinent statistics
to
each
company
Southern Union Gas Company
25,000 Shares
5% Cumulative Preferred Stock,
Par Value $100 Per Share
and
each issue listed, i
Copies
may
be obtained at the
office of K. L.
Day & Co., 14 Wall
Price $100 per
Plus
Street.
Now Emerson, Roche Co.
registration
restored because of "Substan¬
fied consideration of $7.50 will be
ett
said
the
tial restitution of
$3,500 of secret
profits": losses suffered
by
Burleys
the
the consequence of the
revocation order; and selfas
imposed
limitations
upon
-firm's securities -business.
-
the
adjusted in each subsequent cal¬
endar quarter to an amount per
share determined by dividing the
number of outstanding shares of
common stock of Niagara Hudson
inta the debt and outstanding de¬
...
ULM, MINN.—Robert H.
Fancher is with the State Bond &
NEW
accrued
dividends
share
from
June
15,
1948
The Prospectus may be-obtained in any State in which this advertisement
is circulated from only such of undersigned and, other dealers or
of
SEC
the
Only one of the fifteen Dodge
reporting districts covering the 37
7 % -8 %
loan
off,
flow of
He stressed
payments.
the need for
earnings of the operating
dollar volume of last month's con¬
company should
approximate at April of this year.
tracts and 30% of the five-month
All major classifications of con¬
least
$1.60 a share, and might
total for this year.
struction shared in last month's
range as high as $1.75. Dividends
of $1.20-$1.40 might therefore be advance over April and over May
of last year, with the most pro¬
Two With J. W. Goldsbury
envisaged, depending on the range
of the earnings and the liberality nounced gains being in nonresi¬
(Special to The Financial Chronicle)
dential building.
of the pay-out.
MINNEAPOLIS, MINN. —Tom
The cumulative total of $3,831,On a theoretical "when issued"
B. Lahne and Richard G. Mabey
607,000 for 1948 to date is 33%
have joined the
basis the stock of the new operat¬
staff of J. W.
higher than that reported for the
ing company would cost about first five months of last year, the Goldsbury Co., Twin City Federal
Building.
$17.50 ($10 current market price Dodge records show.
relative
company.
and wage
,
from
remaining shares of the operating
to full employ¬
continued high salary
be "given away" in a rate cut
was
exceeded only once before, states showed a decline from the
(proposed in 1947) the additional
and that was June, 1942, when five-months total of last
year, that
saving in holding company over¬
war. construction was at its
peak. being southwestern Ohio and Ken¬
head should be fairly substantial.
The record monthly total in the
The
tucky, where the loss was 8%.
holding company received
37 states set six years ago was Gains
ranging from 4% in New
dividends
from
subsidiaries
of
$1,190,264,000, and Was comprised England to 88% in upstate New
over $14,000,000 in 1947, and after
paying its own overhead and pre¬ principally, of"heavy I engineering York were reported for the other
debts would have to be retired out
of
activity
and
pressures
initially by the latter).
holding company stock thus
would be canceled, and
Nonresidential
contracts
ad¬
the subscription money used to for the
holding company stock,
vanced 56%, residential contracts
pay off a pro rata proportion of
plus $7.50). The conjectural divi¬
gained 17%, and heavy engineer¬
the debts. However, since all the
stockholders will not avail them¬ dend rates of $1.20-$1.40 would ing awards were up 29% over the
selves of the offer (for tax or afford
yields
ranging
around corresponding five months of last
The
*
"Many families who have been
saving to buy new homes, auto¬
mobiles, refrigerators and other
durable goods were able to draw
billion-
consider¬
tained
debentures.
the
time
improve,
a
ferred
been devised.
exceeded
in 1947.
..
company
however, de¬
bentures will be accepted in lieu
of cash for the entire $7.50.
The
exchange offer will be continued
indefinitely, but the initial soeci-
The
1946
*
saving in system
be to raise
^
was
are
there
and
able
cash to reduce the bank loan and
August, 1946, for "unlawful securi¬
The plan provides that
ties
^transactions, including the tures will be acceptable
taking of secret profits." ; Later, value in amounts up to
a
restraining order was issued by share toward payment
-
It
order.
By pay¬
ing the call premiums instead of
may
Burley & Co., New York City,
.
Federal
During the year 1947 volume of erating company (to be issued
with the same number of shares
trading in stocks totaled 72,376,027
as the holding company has,
and
shares, compared with 15,522,415
shares in 1921.
.
v
a
ings
ket is mentioned below).
the
i
'
exchange would be mandatory
under
construction
Association
Curb
leading
Such
stock.
the
pany.
indoor securi-
has established itself
world's
common
and-dissolve.
com¬
may
1929 the official title became
ties
the
miscellane¬
and
is
tions and the eventual benefits of
bonds will be worth par (a device
York Curb Market to be effective
when the Curb moved indoors. In
an
an
on
cash
stock,
Niagara Hudson Power in 1946
earned $1.37 a share, but rising
costs and drought conditions re¬
duced earnings for the 12 months
ended March 31, 1948, to $1.10.
With better hydro-electric opera¬
which will help support the mar¬
to
name
as
share
its
company
assets to the operating
ous
constitution
the
new
of operation
issue
operating
On
vNew York Curb Exchange.
During its first quarter century
,
plans to
company
claims
retiring all debts,
holders its remaining holdings of
the
savings receipts of the nation's savings and loan associa¬
$1,000,000,000 during the first quarter of 1948, the
United States Savings and Loan League reported on June 19.
According to Ralph M. Smith, West Somerville, Mass., League
President, this
j
w
<£tions
Smith
,
Niagara would distribute to stock¬
is evidently assumed that the new
indoors.
move
1921,
approved
r
been
by
"easy
The first step would be
$52,116,000 10-year de¬
benture 3s in exchange for the
preferred stocks at their call price
of 107 V2.
Net savings from such
an
exchange, including tax sav¬
ings on the interest, would be
equivalent to an estimated 150 per
to
"Curb's
-
The
now
stages."
fices at 25 Broad Street. The trad¬
-
have
arrears
these
retire
'Curb Market Association with, of¬
ing hours which
After finally
pany,
of the
Revolved in 1911 into the New York
''
income.
transfer
taken
Agency
would have to pay an annual tax
of
only 5.7% on the dividend
000,000 by the year-end)
and
some $48,000,000 par value of first
and
second preferred stock
(on
was
Curb
Gross
and
in 1908 with the formation
York
'
Niagara Hudson Power in May filed with the SEC a plan for
the consolidation of its three principal subsidiaries into one operating
York
21
Reports Gross Savings and Loan Receipts
Topped $1 Billion in First Quarter of 1948
|
The New York Curb Exchange
(21)
brokers
AUSTIN, TEX.—The firm name
Emerson, Roche & Dunn has
been changed to Emerson, Roche
& Company. Partners are Ever¬
S.
Roche.
Emerson
Offices
and
are
David
T.
maintained in
as
may
lawfully offer these shares in such State.
E. H. Rollins & Sons
Incorporated
A. C. AHyn and Company
"Incorporated
-■
,,.
y
Rauscher, Pierce & Co. Inc.
\
.
the Capital National Bank Build¬
ing in Austin, and in the South
Texas Building in San Antonio,
the
latter
office
being in charge
of Mr. Emerson. >•"
Coffin & Burr
W. C. Gibson & Co.
,;
June
28,
1948
t*.
■
rimr •
V
Incorporated
22
(22)
THE
COMMERCIAL
&
FINANCIAL
CHRONICLE
Thursday, July 1, 1948
since 1926, prior to which he was
with the Bankers Trust Company.
His entire service has been in the
News About Banks
NEW BRANCHES
Bankers
and
OFFICERS, ETC.
REVISED
Webster and Atlas bank in 1920.
iO-'V.'V',' <■
*
'•>
Foreign Department, where he
distinguished himself as the au¬
thor
of
the
"Exporters' Hand¬
book," which is used throughout
the world in export and banking
CONSOLIDATIONS
NEW
later
circles.
CAPITALIZATIONS
Blaine
B.
C.
and
of
the
L. C. Marshall
Bank
of
of
June
on
25
were
members
cial
elect¬
the
of
*
'
*
*
V-
..
Benj amin Strong, Presideht of
the United States Trust Company
of New York,
Vice-President in
announced
June
on
25 the election of Alexander Stan-
dish to the Board of Trustees. Mr.
*
,
97-year-old
oldest
1946.
savings account
elected
tee
of
the
recent
The
meeting of the
in
board of trus¬
Hark-
Bank
Vice-President
advanced
the
to
*
Farm¬
C.
Henry
tional
Taylor
Co.;
on
Sec¬
and
Bleachery
Co.; South¬
Print
&
post of In¬
*
Bank
of
Brooklyn,
N.
Y.
June 16 in the Bay
on
Ridge section at 465 86th Street.
Walter
Works,
Jeffreys Carlin is Presi¬
of the Lafayette National.
dent
Mills,
Harry D. Papenmeyer, is Branch
and
Inc.
He is
Vice-President
director of Burrwood Corp.,
a
New York.
Standish
•
*
*
-
i
of
Promotions
the
to
brother
officers
five
of
National Bank of New
Chase
York
elected
was
*
*
*
positions of higher rank
and
the
ap¬
pointment
employees
the
of
clerical
seven
to
official
ef¬
fective July 1,
staff,
all
was
an¬
nounced by
the
bank
on
June
23.
Pro¬
moted officers
E.
Ullery,
Vice
a
director.
the
of
late
He
is
Gordon
a
S.
Rentschler and is Chairman of the
United Aircraft Corp. of
Conn.
Mr. Rentschler
in
Hartford,
born
was
Hamilton/ Ohio and like his
brother, is
Princeton graduate.
a
He founded the Pratt &
Whitney
and
1934
he
became
chairman
the
Center
-
President
at
73rd
to Assistant Cashier in the Credit
F.
Loree
II,
Assistant
Cashier in the bank's far-Western
district, and the following assis¬
tant managers at New York City
branches:
Frank
J.
Dowd, 42nd
F." Hanrahan,
Street;
Winfield
57th Street; Ira O. Smale, Rocke¬
feller
Center,
and
Stanley
B.
Smith
and
Clinton
Times Square.
Leroy A.
B.
National
New
York.
Thomas,
v
At
promoted
was
Trust
ica
of
Company of North Amer¬
New
York
announces
that
the vaults of its
ity
Safe
Deposit
floor and basement.
*
John
Street
Sites
W.
*
and Joseph D. Driscoll has been
elected Cashier of the Somerville
of
the
39th
i
of
publicity
'
'•
directors of
J
the
■
the
Webster
of
Exchange Bank.
ries
of
mergers
Through
he
Manufacturers Trust
a
entered
*
■
■
Atlas
and
National
Boston, Mass., died
Mr. Cox, who was
64
of age, was a former Presi¬
dent of the American Institute of
Banking. Born in Easton, Md., he
began his banking career in 1902
as
clerk
a
se¬
National
which
in
the
Bank
Manufacturers
of
Baltimore,
later
absorbed by the
First National Bank of Baltimore.
was
He
Accounting
Mr.
Kline
was
and
transit
in
manager
1912
Connecticut
which he
was
with
Inc.
connected for four
Assistant
of
of
Cashier
New
and
transferred to
Auditing Department Jan.
If
retirement
The
of
Joseph A.
Corporate Trust Of¬
«
*
the Union National Bank of New¬
ark,
J.
N.
made
was
known
Mr.
18.
Endler, it is
resigned because of
cated,
sure
"Evening News"
that his stock in the bank
on
was
ac¬
ceeds him
on
the board.
Mr.
Committee.
Approval
of
#
*
both
institutions,
of
plans whereby the Provident Trust
Company
of
Philadelphia
will
purchase the assets and assume
deposit liabilities of the North¬
Trust
Co.
of
that city were
announced by William R. K. Mit¬
chell, President of the Provident,
and William C. Harter, President
ern
the
Northern
Trust
Co.
The
Philadelphia "Inquirer" of June 19
in indicating this stated that the
purchase price will be $4,600,000,
equivalent to $920 a share, or the
book value, for. Northern Trust
stock, less costs incident to liqui¬
dation. As given in the "Inquirer"
the joint announcement said in
part:
.
\i
; J
The plan, which is subject to
the approval of bank supervisory
authorities, and the stockholders
of both institutions, provides for
continuance
Garden
of
Streets
the
as
of
This
the
the
present
Northern
Provident
will
office
be
staffed by
the present officers and
employees of Northern Trust Co.
Baltimore
1907
with
when
Trust
the
institutions
two
asso¬
and
be¬
Mary¬
the
business
of
merged
was
in 1930.
Mr. Wherrett's duties as corpo¬
rate trust officer have been taken
by Robert S. Middleton.
over
*
*
;$• *
'
The South Richmond Branch of
The Bank
of Virginia,
Richmond,
opened
formally to the
June 15. A program of
was
public
June 18 of the di¬
on
in
associated
came
Va.
*
early
Company
King
named to the Executive
was
The
ciated with the Continental Trust
the
The
an¬
retire, after nearly 42
service.
"Sun" stated that he became
pres¬
reports
was
Ill health, it is
Mr. Wherrett's
prompted
of
land
by Frank L. King, South
Orange insurance man, who suc¬
the
stated,
indi¬
of out-of-town business;
Newark
also
of Baltimore, Md.,
years
The resignation of Jules Endler
as Vice-President and director of
June
as
decision to
years.
on
recorded music and television
feature
of
was
the
day, and sou¬
venirs were given to callers. Hartwell F. Taylor,
Assistant Vicea
President of the
Richmond office
of The Bank of
Virginia, who has
had wide experience in various
departments of the bank for the
past 15 years, is in charge of the
new
office, assisted by Clyde E.
Harris.
i
*
*
H
*
The Fifth Avenue Savings Bank
Company of Columbus, Ohio
merged
der
the
was
June 9 into The Ohio
on
National Bank
title
of
and
Columbus,
charter
un¬
of
the
latter institution, according to an
announcement
by
the
Board
of
Governors of the Federal Reserve
System.
In
connection
with
the
branch was established
by the Ohio National Bank in the
merger a
former location of The Fifth
enue
Ay*
Savings Bank Company.
#
An increase
of
t;.
A
-
r|
$500,000 in the-
capital of the Central^ National
Bank in Chicago, at Chicago,, 111.*
raising it from $800,000 tp $1,300,000 is reported by the Office of
the Comptroller of the Currency.
and it is proposed that Mr. Harter
will become a Vice-President and
The
director of Provident Trust Co.
about
It
will
of
is
stated
give
more
that
the purchase
Provident
Trust
assets
than $146,000,000 and de¬
posits exceeding $124,000,000. As
of Dec. 31, Provident reported as¬
sets of $114,395,407 and deposits of
$97,531,413, while Northern Trust
showed
assets
of
$31,782,247 and
deposits of $27,160,431.
sis
#
.
<:
H. E. Deily, Vice-President and
27
joined the
National' Bank
as
June
So¬
nounced recently.
bank
then
of
the
entered
pany
of
ational
Bronx
became Super¬
Depart¬
ment in 1935 and six years later
was
appointed
Auditor.
As
a
the
Savings Banks Deposit Guaranty
and
Gorman
the
•
1925.
of
Fund
the
Mr.
of
ember,
visor
Wherrett
tor
1941.
member
Navy
veteran
of
II, joined
Western
as a clerk in Nov¬
a
War
ficer of the Maryland Trust Com¬
Cashier
a
Saving Fund
World
1945, after occupying the position
also said: "He later became Audi¬
"Herald"
suc¬
of Executive Vice-President of the
The
also
Ibbotson,
ident of the bank, became associ¬
ated with the Society on Nov. 1,
1937. He has been with the bank's
Street office at 530 Seventh
Boston
to
1,
Banks, and Chairman of 1941, where he was Acting Audi¬
tor during Mr. Ibbotson's service
many of its important committees.
Mr. Lyon, the newly elected Pres¬ with the Navy.
Avenue
since
Kline
W.
ings
on
years
the
Company in
"i[.
X'.;) 1? ):>; *
Raymond B. Cox, President of
27.
Produce
Frank
of
ment
ceed Mr. Ibbotson as Auditor. Mr.
the
Co.
Bank
York
Blair Lee, President
Society.
At the same time
Mr. Lee announced the appoint¬
partment and
Trust
June
New
June 28 by P.
of the
tional Association of Mutual Sav¬
of
vated in rank from Assistant Sec¬
old
by
Managers of the
Western Saving Fund Society of
Philadelphia, was announced on
ciety's employ in March, 1935, as
a
clerk in the
Accounting De¬
branch
pany of New York have been ele¬
the
Vice-President
Jr., as a
Board
of
son,
the
tors.
Trust
with the institution for 27 years.
:
The election of Arthur T. Ibbot-
banking office at Sixth and Spring
year, noted in our
Mr. Driscoll, previously
Assistant Cashier, has been
£,1''
#
Mr. Glazier, who became Presi¬
dent of the bank 21 years ago, has
served as President of the Na¬
Mr. Burke, formerly Cashier, has
been associated with the bank for
which, this
t;,';
Assistant Treasurer.
the
and
Randolph D.
Foreign Department
retary to Assistant Vice-President,
it is announced
by Harvey D. Gib¬
son, President.
Mr. Gorman be¬
gan his banking career in 1919
*
#
his
of
National Bank of Somerville, Mass.
an
*
of the Manufacturers Trust Com¬
with
*
32 years.
Gorman
the
*
According to the Boston "Her¬
Office
of
Vice-President
to
ald" of June 11, Joseph F. Burke
has been elected Vice-President
York
board
■;>:
from Assistant Vice-President.
Mr. Sites has been with the bank
the
#
directors of the State Street Trust
Fourth
of
charge of advertising,
public relations. •
Vice-President of the Society he
brother, Henry J. will be responsible for employee
Marks, who had been a trustee of training, coordination of banking
the Society since 1938.
methods
and
procedures,
and
"Another promotion was the ap¬ over-the-counter
relations
be¬
pointment of Fred R. Stickels as tween the Society and its deposi¬
death
of
*
~
meeting of the board of
a
County Grand Jurors Association.
a
as a
by the trust coiftpany
#
graph Co.,
elected
its
is operated
over
is
was
Tully,
of June 14.
the American Telephone &
Tele¬
member
With
of
absorption
branch
by the Syracuse Trust. The bank
has a capital of $60,000.,.It was
the bank
*
39th
Wilson, President of
Bank
Company of Boston held June 21,
Street
Department. Newly-appointed of¬
ficers were: Joseph L. Kelly, Cus¬
tody Officer, Trust Department;
Leonor
for¬
was
and
meeting of its board of
a
rectors
T. Edward Kellar of West Newton
Branch; Robert Wetzler, to Second
Branch, and Reginald P. Russell,
':
of
¥Tt,
Vice
director
a
directors, according to the Provi¬
;
:/ v
reorganized United Aircraft
Corp. He was a captain in the
Army Air Corps in World War I.
the
subsidiary, Trin¬
Company, are
now
open for inspection at 115
Department;
Lowelh E. Ullery
Davjd Rocke_ Broadway.. Entrance to the vaults
feller, to Second Vice-President is through the main lobby of Trust
in the Foreign Department; Jesse Company
of
North
America,
now
F. Skelton, to Second Vice-Presi¬ which
occupies the main
in
Petr oleum
Rockefeller
First
Transpbrt Company
in 1928, he was elected President.
In
$500,-
The Syracuse Trust Company of
Syracuse, N. Y., has absorbed the
as
Aircraft
National
000, effective June 8.
'''M$
000 *
taken
was
Union
Bank of Troy, N. Y„ has increased
merged with other
aircraft corporations as the United
company
the
its capital from $400,000 to
Aircraft Co. in 1925 and when that
to
Presi¬
-
dent
at
stock,
new
Lowell
were:
dent
Roberts
W. W. Dalamater has been ap¬
quired
Through the Sale of $100,000 of
,
partner of the firm
of J. H. Whitney & Co., and a Board of Directors of The National
director
of
National
Research City Bank of New York, held on
Corp., Spencer Chemical Co. and June 29, Frederick B. Rentschler
a
Manager.
%
*
■
At the regular meeting of the
Vacuum Foods Corp.
at
year ago.
,
Inc. and Utica & Mohawk Cotton
Standish is
elected
was
#
of the Lafayette Na¬
opened
was
a
A5
A branch
Continental Insurance
ern
Savings
Brooklyn "Eagle" notes that
1922, Mr. Burger was
was
City
Trust
ers
.•,
June,
direc¬
of
Brooklyn
vestment Officer
dent. Mr. Tay¬
tor
>.
retary, and ^ in 1931 was elected
Vice-President and Treasurer. He
Presi¬
a
j
Brooklyn, N. Y., died
elected
tees,
it
was
nounced by
lor is
•
*n
•
21.
Mr. Burger, who was
77 years of age, had been identi¬
fied with the bank for 58 years.
Bank
York,
s,
•
June
Savings
Earl
South
Bank of
of
n e s
v-.v
•
dent
Greenwich
a
' ;*
Bernard A. Burger, Vice-Presi¬
and
Investment Officer of
was
the
New
accounts.
*'• #
-..Vv.z- v*>'
trus-
a
individual
}■'4ivtsV-";
mer-
chants,
at
Alexander
June 8
on
Co.
They
are Patrick
Mallon, of Manhattan,
and R. L. Goldsborough, of Dongan Hills, S. I., who have been
saving at Union Square for 56 and
55 years respectively.
Henry C. Taylor, President of
Taylor, Pinkham & Co., Inc., com¬
mission
Board of Directors of the Bank.
«
to the holders of two of the Bank's
operations and en¬
He was appointed a
Manhattan
Company of New York
ed
Mr.
"■
Webster, President of pointed Assistant Vice-President
the Narragansett Electric Co. and of the Land Title Bank and Trust
the United Electric Railways Co., Company
of
Philadelphia
irn
announced
was
gineering.
dents
institution.
merly Assistant Vice-President.
i'-:.'
^;vi'\!;
William
will be
honored
by the Union dence "Journal" of June 9.
on June 23,.
Square
Savings
Bank
of
New
by Winthrop
York on July 1, when the bank f
At the annual meeting on June
W.
Aldrich,
Chairman
of
the
16 of the Society-for Savings of
Chase board.
Mr. Wilson, who in formally marks the 100th Anni¬
versary of its opening on July 1; Hartford, Conn., Robert C. Glazier,
February of this year at the age
1848.
The
account,
which
was
President,- was advanced to the
of 47 attained the Presidency of
opened on Feb. 13, 1851 and is the office of Chairman of the Board/
the
world's largest
corporation,
oldest on the Bank records, is that while Charles J.
has been associaed with the Bell
Lyon, who has
of Harmony Lodge No. 199, F. and been Vice-President and
Treas¬
system all of his business career.
A. M., Manhattan.
At a celebra¬ urer was elected to succeed MiC
In
1922, upon graduation from
tion in the
Bank lobby
R. H. Glazier as President. The Hart¬
Rose
Polytechnic
Institute
at
Terre Haute, Ind., where he was Brownell, President of the Bank, ford "Courant" of June 17 report¬
will present a $100 United States
ing this, also said: "Albert J.
born, he joined the Indiana Bell
Telephone Co. as a traffic clerk. Savings Bond to Karl Schwarz, Marks, Senior Partner of the firm
Grand Master, who will accept it of Gilman & Marks, was elected
After varied experience he was
in behalf of the Lodge. Mr. Brow¬ a member of the board of trustees
transferred to the parent company
nell will also present $100 Bonds
in New York in 1929 in the de¬
filling the vacancy caused by the
it
Vice-President in 1944 and Finan¬
Blaine
B.
President.of the
Chase National Bank
Law¬
Marshall,~ Vice-Presi-
partment
Graliam
Vice-President.
a
elected
'
A
Graham
became
was
of the Rhode Island Hospital Trust
*
rence
He
of
the
Bank
Tradesmens
and
Trust
Philadelphia, announced
28
the
Roberts
election
as
of
Na-
Co.
on
of
June
increased
capital,
brought
through the sale of nevy
stock, became effective, June7« n
1':: ^
:
•
*^
Wn i f i\u,<
>
Norman
N.
ings Bank of Chicago, IU., idied
June 20 in Evanston Hospital at the
of 44.
age
Dame
A graduate, ;pf, tyotre
University apd Harvard
University Business S.chpol/.jhe
joined the bank as a,clerktirvi927.
He was elected a Vicer.President
•
.
in 1944.
*
.:
G.
*
,
*
*
■
>\
Lyle Fischer, Second Vice-
B.
President
of
Vice-President of the
Company
of
Joseph
Feltes, .'Vice-Presi¬
dent of the Harris Trust and ^Sav-
The
Northern
Trust
Chicago, died sud-
Number 4712
Volume 168
denly
THE
June 21, from a heart
on
attack in his home in Glencoe. He
50 years old. Mr. Fischer was
born at Kewanee,-111., on A^gus
was
.He was graduated from
High School in 1915
23, 1897.
the Kewanee
Harvard
from
and
1920.
m
Co.
Assistant, Cashier in
the Savings Bank of
for five years as Assistant Vice
President in the Central
Savings and Trust Co. in Chicago.
five years as
R^pub m
respective
the
by
Ratification
Mitchell has been associated with
the bank since 1936.
He is
grad¬
and
during the war served for three
years as an -officer in the United
uate of
a
Louis University
St.
*''<■
*
'/v.*
*
The-Board of Governors of the
Reserve
pointed
Smith Broadbent
Cadiz
Kv„
Louisville
Reserve
Jr.
of
director
a
as
St.
Mr.
Louis.
he
,
*
of
Bank in Palm Beach, Florida an¬
in
i Q
T1infk
account
an
ot
me
Slans
by Harry i: Adams,
from
which advices we quote in part.
"The physical merger will oe
accomplished July
6, and the new
fnstitution
the
will be known as
Chicago National Bank.
,^'Leiter
Armour, former
Co„;nr
Jemor
N^
City
Vice-President of the
Chatotn of the board of
^^Wa"50lfo™erlyanpreldent |
named
Old' National
the
and Cbml
Industrial National,
McEldowney, Executive Vic
President of the Chicago T
B.
Administrative Vice-
will be
vial
Presidents. All other officers of
the Industrial National and Chi¬
become of
cago Terminal will
Hals of the Chicago
Suhar?egr°s
at
of the Chicago Termma
Salle
La
S.
120
National. T
will occupy th
Chicago National
Street,
The; latter
'50,0Q0'shares
mulative
of
mciua
g
4%%3
P^erred stock and
"°"JosephS
,
,
„
National.
of the new Chicago
Kenneth K. Wells has beenproto Vice-President of the
rented
National
Trust Company of
American
.
Bank
m
industrial divi-
Wells has. been assoc.ated with the bank since 1939.
special meeting on
stockholders
the
.^"
July 14
of. the Detr
Mich., will
Detroit,
of
B^nk
par,
£
act
'"Free
of
Press"
D
ue
The
Vice-President.
TTvptt
troit
*
fort
as
Vice-President of Bank of
America,
N.
T.
S.
&
of
A.,
Los
Angeles, international banking de¬
partment, was announced on June
10 by L. M. Giannini, President.
Mr.
Monfort, said the Los Angeles
"Times," will represent the bank
the
Continent, according to
Russell G. Smith, Executive VicePresident in charge of interna¬
tional banking activities.
on
New
for issuance of the new
"stockholders
each
for
Tiiiv
14
:«sked
Three
added
officers
new
to
have
executive
the
seven
Edmund
L.
MacDonald, Presi¬
Co., Ltd., Hali¬
dent of Cunard &
fax,
been
staff
at
N.
S.,
has
been
elected
a
director of The Canadian Bank of
Commerce head office, Toronto.
MacDonald
the
is
Atlantic
O.
Faulkner
J.
Vice
-
has
been
President
and
also
President
Utilities,
Ltd.;
feting b^e to
present
.sh^e^
bank
o
.
capital of
$3,500^000,
while^s
stands at $3,-
preferred f'stock
Effective'^une 16, the
^National Bank of St.
Paul'J£}nnii
$25®'0^
the sale of
from
'$310,000 .through
$60,000:of-new stock,
<td
cf new
*
.
t
*
stock.;
"
*
*
,
.
;
*
*
.
;
;/
The Mercantile-Commerce Bank
of
Assistant
John
B.
Mitchell
r.yice-President.
Chair
y,
accept the position
co-ordinator
He
served
has
He is
the Commission
the
California
tion.
Mr.
of branch
Anglo
with
on
a
in
story
building
Street
and
Board
Louis.
as
Mr.
-
Directors,
Agriculture of
Associa¬
remodeled,
an
engineer
with
^ was
Rjichfield
the
011 Corp. and the Texas Co.
He
will continue in his present capac¬
largely to construction and
as
He
officer of the U.
an
b.
Corps during both World
Wars.
He
Mr.
is
member
a
of
Francisco Chamber of
other
and
Berry
was
the
Com¬
organizations.
born in Los An¬
He has been
a
member of
the
Anglo Bank staff for the past
19 years.
Previously manager of
the bank's accrual accounting de¬
partment, he is presently chief
accountant.
During the war he
served with the 84th Division and
the National Association of Bank
Auditors and Comptrollers.
y;.'V:\
*'](■
*
^
*
1946 Executive
Manager of Cali¬
Bankers Association, has
law
offices
Angeles for the past two
has acted
as
in
years
St.,
completely
opened for busi¬
Like
which occupies the
Shipping Co., Ltd.; and
Vice-President of Telephone Com¬
of Prince Edward Island.
pany
Reports Decline in 1847
Earnings of State-
Chartered Banks
Mr.
Bankers
reported
June 28 that the
bined
ing
of
Association,
com¬
operat¬
earnings
the
tered
com¬
Gale
F.
Johnston
has
been
President of the Bank since Feb¬
1947, after 1 hearing Mr.
Hemingway speak of the bank's
ruary,
past, expressed confidence
continued prosperity.
in
glorious
than
the
its
Mr.
even
past.
I
great Southwest, which this insti¬
tution has been serving for almost
amounted
92 years,
United
to
the
We
preceding
Despite
have
new
these
ff
banks
a
glorious op¬
more
grow,
and
prosper
been
proud of the part
this institution has
played in the
development of this part of the
country.
Now we believe with
year.
showed
to
develop in the years to come than
in the' years that have
gone by.
over
f \ ' aV
Elwood
M.
Brooks
de¬
cline of 15%
has/a
portunity
$1,421,947,000
in 1947, a gain
8.6%
The decline in net
developments
in
the
world
the
on
political, economic and
spiritual
front,
that the
great
Southwest
in net income.
1947 amounted
earnings for
to $61,070,000 to a
$349,353,000, but the banks
requirements and to
substantially their capital
Dividend
totaled
$137,411,000,
942,000
or
ings
were
declarations
while
$211,-
about 61% of net
added
to
count.
earn¬
capital
ac¬
with
center will be
finer
to
that
do
will
St.
even
its
Louis
in
its
stronger, and
part in the
Therefore
come.
years
I
am
to be connected with
institution which looks for¬
ward, which enlarges its quarters,
which believes that America
this
part
of the
opens
Personal
Loan
directly into the
Department.
The
Bond and Corporate Trust depart¬
ments
occupy the
second floor,
while
the
third, fourth and fifth
given over to general
banking operations. This includes
the clearing and accounting in¬
floors
are
volved
over a
in
the
handling
and
a
to
It
come.
is
my
part of that organi¬
greatness
zens
25,000 shares of
Southern Union Gas Co.
5%
First'
Boston
Dean, Witter & Co.
cipal underwriters
wide
were
in
' of
43
banking firms which
cu¬
pub¬
prosper.
As the community
prospers, we know that our bank
will be stronger and finer. We are
putting
ourselves
in
position
to
the great mass of people in
this fine community in which we
live."
serve
pating in the offering were A. C.
Allyn
& i Co./ Inc.;
Rauscher,
Pierce & Co., Inc.; W. C. Gibson
& Co.; Coffin & Burr,
Inc.; First
and
a
Fridley
on
manente
share.
Metals
The
net
be
applied
by
1149,000
the
Corp. at $15
organized
fornia
in
1940
Todd-Cali-
as
Shipbuilding Corp., is
was
fabricating
prior
aluminum.
to
engaged in
June
war
of which
are
leased from the gov¬
ernment. An alumina plant is lo¬
cated at Baton
Rouge, La., reduc¬
tion plants at Tacoma
Wash.,
and
rolling
a
and Mead,
plant
Spokane, Wash.
Shares
Company
'V
k'
"ftI
The company presently plans to
about
$4,600,000
and
the
for
plant
betterments during
first six months of
f V,
1949.
in
$422,000,
the
t.
$2.00 Per Share
approximated
March 31, 1948
had
outstanding
progress,
and
on
company
commitments of
John
TV
Price
During the first quarter of
this year gross expenditures for
plant and equipment, including
work
some
$2,700,000.
Thompson Opens
■
The Financial Chronicle)
KAYE, REAL & COMPANY
5
•;»
(Special to
and
vestment business from offices in
Building.'
!
-
^
Los
the Monger
The
1946
work, princi¬
and
additions and
of
pally shipbuilding and magnesium
other
spend
en¬
gaged in the business of producing
Common Stock
to
general
working
used, together with
funds, to finance further
expenditures for construction.
funds
per
capital.
corporation,
I
defray expenditures for
construction, and the balance will
added
30
used to augment
working
The
Permanente
The Phoenix Glass
to repay bank loans in¬
curred to
be
June
proceeds will be
&
The net proceeds from this fi¬
will
nation¬
publicly offered 600,000^shares of
capital stock (par $1) of The Per-
Hess,
company
and
the prin¬
investment
group
derwriting group headed by E. H.
Rollins & Sons, Inc.
Also partici¬
Co.;
11
Corp.
St.
Southern Union Pfd.
mulative preferred stock was
The
and
years
by First
Boston and Others
developed here in
production. It operates four major
Louis, that will see growth
continued, that will see our citi¬ plants in the United States, three
Group Offers
A new issue of
Offered
company
the
see
nancing
well
Permanenle Metals Sfk.
in
country
zation during the ybars that will
Southwest
of
half million checks weekly.
in par¬
ticular will be stronger and finer
hope to be
.5
Rollins
bank's
and the St.; Charles Street
cages,
entrance
who
States
the
the
do believe that St. Louis and the
mercial banks
in
of
space
is nearly doubled, and
this, new building alone the
main banking floor has 14 tellers*
oc¬
Johnston,
more
floor
in
suit¬
"It is my feeling," said
Johnston, "that the future is
9,002
state -char-
is
quarters
ppropriate
able to the
bank
building
adjoining half
8th
Street, this new
completely' air-condi¬
:/.
on
The
main
-
tioned. <
made
remarks
the
wing
present Presi¬
dent,
June 5 for the first time.
on
block
casion.
El wood M. Brooks, President of
the state
bank
division
of the
on
Vice-
President, and
Mr. / Gale
F.
Johnston, the
a
Net
ELKHART,
IND. — John
W.
Thompson is engaging in an in¬
counsel to the Cali¬
7th
on
building,
was
ness
1948
assigned to the operating depart¬
ment.
Mr. Hodges, from 1936 to
fronting
Charles Street,
Mr.- Eugene J.
was
born, in
Prior to his joining the
Anglo Bank staff in 1947,
St.
This
ecutive
member of
Bankers
Everett
both
its growing
Mercantile - Com¬
meet
Mudd, the Ex¬
structure.
to
to
the
Bank purchased the seven-
Industrial
increase
office
order
business,
director of Maritime Telegraph &
Telephone Co.; Vice-President of
Bank of
Berkeley/,?and was ylce-
over
merce
the
of
man
an
"and Trust Company of St. Louis fornia
recently announced the appoint¬ maintained
ment
In
Louis, Mr. W.
Heming-
w a
broadcast
were
<S>-
very proud
to
'
\
ceremonies, which
L.
all dividend
1930
From
H
D. Ivey, President of the
V Citizens National Trust & Savings
Effective June 10, the capital of Bank of Los
Angeles, announced
the' Oklahoma National Bank of on
June 24 that Lauder W. Hodges,
Oklahoma City,
nnn" former Executive Manager of the
•creased fronv $100,000 to $150,000, California
Bankers
Association,
i the enlarged capital having re¬
had become associated with Citi¬
sulted from the sale of $50,000 zens National
Bank and has been
H .Hfi.'t.
In the
v:
St.
still earned sufficient net to meet
Cashier.
Army Medical Corps.
He is
a graduate of the American Insti¬
tute of Banking and a member of
:
if increased, its capital
of
of
Corp.; Vice-President and
1947, Mr. Faulkner held official
positions with the Federal Land
the
#
#
Station
KSD
total of
San
the o
shareholders.^
;,37Q,t)op.,
Radio
office co-ordinator, Louis
Everett, Assistant Vice-Presi¬
dent, and Leonard S. Berry,As¬
merce
UJ^bjmbed
common
midion dollars.
one
ecutor
branch
B.
expresses
15, the Mercantile-Commerce Bank & Trust
Company
Louis, which began business 92 years ago, dedicated the open¬
ing of a new wing to its building, representing an investment of over
Bank's
same
dent.'
Opening of New Wing
Johnston, President of 92-year-old institution,
confidence in future prosperity of Southwest.
On June
President of General Trust & Ex¬
ings
was announced on*June
Allard A. Calkins, Presi¬
23
of St.
21
Approval also will,be geles.
"
•
Commerce, New
York.
ciscofit
by
St. Louis Celebrates
Gale F.
the staff of the
in gross earn-
served
to; underwriters at
■The
>•
on
(23)
Mercantile-Commerce Bank & Trust Company of
of
this increase
"
calls
the basiss of
shares held
on
for sale of all
shales'
,
York, and
National Bank of
of
Marine
proposal
directors'
"The
•
Bank
American
2d property management matters.
June
stated:
•1 the?
Reserve
proposal to increase the com¬
licly offered on June 28 at par
ity as manager of the bank prop¬
stock by 50,000 shares at $20
($100 per share), plus accrued
erties department and will devote
dividends from June 15, by an un¬
according to cll"°rd
himself
mon
^
*
*
Appointment of Nelson W. Mon-
Texas.
*
*
#
a
holders.
Bank.
Mr
At
The new basis
amount to 3b
cents per share quarterly.
This
change, says the bank, had been
suggested by a number of share¬
World Wars.
i^^harge^of1 the
rate re¬
mains unchanged.
of payment will
President when he left that bank
an
Cbicafo. it wa;
;s"on
The dividend
usual.
1936
per
July 1:,
on
Federal
to
the staff
on
sistant
NaUonal,
Chairman of Industrial
was
named Honorary
cents
12
of
be mailed
appointed
incumbent
Otis,
E.
share will
as
checks
dividend
Prior
Francisco, associated with the
fornia National Bank of San Bran-
capital, surplus, undivi
profits, and reserves m exceffl
000.
June
future
Act.
attorney
the head office of the Anglo Cali¬
000, and
<£5 950
would be
mailed quarterly, namely; Oct l,
Jan. 1, April 1, and July 1. The
idend,
tota
$60,000,-
of more than
com¬
xxie
consolidated bank will have
-resources
that,
mencing with the bank's July _div-
Bank m
ville, Ind., was elected Preside
Frank G. Anger, President .of »e
16
June
on
an
the
of
John A. Boardman, First VicePresident of the First National
nounced
Bank
was
Mr.
•
,
fornia
the
farmer,
succeeds
Hickman, Ky., re-
Broadbent,
a
Rosco Stone of
CHRONICLE
ot
of the Federa
of
Bank
signed-
System has ap¬
Branch
FINANCIAL
law firm of Satterlee & Canfield,
■'.H;'.
Federal
&
fornia Bankers Association's Com¬
mittee on Revision of the Cali¬
San
States Coast-Guard.
Be¬
joining the Northern Trust
in October, 1932
he served
fore
COMMERCIAL
\
- ••*/'." ■'**'■*' ■'; \/
72 Wall Street, New York 5, N. Y.
.•
'
• ,•
near
-
24
(24)
^^THE COMMERCIAL & FINANCIAL
CHRONICLE
Wall Sfreefers Honored
Our
Reporter
Governments
on
For Work in Greater
vine,
Thursday, July 1, 1943
partner,
Sartorious
&
Mgr., Blyth & Co., Inc.; Herbert
S. Hall, partner, Morgan Stanley
& Co.; Paul F. Hay, partner, W. C.
Langley & Co.; E. Jansen Hunt,
partner, White, Weld & Co.; W.
Fenton Johnston, Smith, Barney
: Co.;:
Joseph vLuden,/' Dillon,
Read & Co.; Laurence M. Marks,
Co.;
Charles Moran, Jr., partner, Fran¬
cis I. du Pont & Co.; Lawrence
McK.
Miller, partner, E. F. HutCharles L. Morse, Jr.,
partner, Hemphill, Noyes & Co.;
Floyd W. Mundy, Jr., partner,
James H. Oliphant & Co.; Carl
ton & Co.;
N. Y. Fund
By JOHN T. CHIPPENDALE, JR.
Campaign
Amyas Ames, partner, Kidder,
regaining its equilib¬
Peabody & Co.; Sydney P. Brad- H.
Pforzheimer, Jr., partner, Carl
rium, after a downside spiral that took prices in some instances
shaw, partner, Montgomery, Scott H. Pforzheimer & Co.; Stuart R.
back to the pegged levels that were set last Christmas Eve.
& Co., and Philip Carret, GamReed,
This sharp, but not too voluminous, decline was caused by the con¬
partner, Paine,
Webber,
mack & Co., President of the New Jackson &
fusion and uncertainty that developed from the surprise offering
Curtis; J. Gould RemYork
Security Dealers Associa¬ ick, partner, Stillman, Maynard
by the Treasury of non-marketable bonds.
Although this price
tion; were honored recently for & Co.; Junius A. Richards, p£frtrecession has been considered largely a "professional affair" because
ner, H. N. Whitney Goadby & Co.;
cf the marking down of quotations without a corresponding pick-up
Dudley D. Roberts, Jr., partner,
in volume, there was no real buying interest in the market until
Roberts & Co.; Stanley Roggenassurances were forthcoming that the "pegs" were still there.
burg, Roggenburg & Co.; Chas. N.
Yields and income which used to be yardsticks in making pur¬
Schenck, Jr., partner, Mitchell,
chases of Treasury obligations have now given way to fears of
Hutchins & Co.; George J. Scully,
dropping prices, which nearly all segments of the market seem to
partner, Eisele & King, Libaire,
believe only the monetary authorities are capable of stopping.
.
.
Stout & Co.; H. K. Smith, partner,
UNPALATABLE
Shearson, Hammill & Co.; Howard
C. Smith, partner, De Coppet &
This bad psychology prevailing in the government market seems
Doremus; Jacob Stone, partner,
to be the result of a not too well planned method of financing, along
Asiel & Co.; Gardner D. Stout,
"with the apparent disagreement .among the monetary authorities as
partner,- Dominick & Dominick;
to whether interest rates should be allowed to increase or not.
The government market is showing signs of
partner,
...
government
will
as
doubt
no
whole do not take too kindly to
a
continue
to
other
make
non-marketable
they have made and
fact that
obligations despite the
loans
non-marketable
Thomson
-
den
S.
Bennett, partner, Dean
Langmuir;
Arnold
Bernhard,
President, Arnold Bernhard & Co.,
Inc.; Allen M. Bernstein,-Presi¬
dent,
Bernstein-Macauley,
Inc.;
Cherry,
Vice-President,
Co., Inc.; Charles
Dobbrow, Vice-President, Templeton, Dobbrow & Vance, Inc.;
L. W. Fisher, Vice-President, Van
Strum & Towne, Inc.; Lloyd H.
Langston, Treasurer, Standard &
Poor's Corp; Allen L; < Lindley,
Vice-President; Douglas T. Johnston & Co., Inc.; William Pettit,
partner, Karl D. Pettit & Co.; A.
Vere
Shaw, -partner,
A.
Vere
Shaw & Co.; Mallon
Sheffield,
Counsellor, Loomis Sayles & Co^
Inc.;/Bradford F. Story, partner,
Br undage,/Story & Rose;
Henry
Thielbar, partner, Naess & Cummings; John N. Trainer, of Trainer
Harold
investments that
not
are
government securities.
comparable in quality to the non-marketable
.
.
Teichgraeber, partner,
&
McKinnon
and
Amyas
Ames
Philip L. Carret
Lionel D. Edie &
Er¬
Megna, of Carl M. Loeb,
Rhoades & Co.; Chester H. Tipton,
Tipton Securities Corp.; J. Arthur
Warner, J. Arthur Warrier & Co.;
and Lawrence Wren, Allen & Co.
New York Fund
campaign, when
Walter F. Blaine, partner, Gold¬
they were presented with a cita¬
tion for "meritorious service"
to man, Sachs & Co.; W; Rufus Brent,
outstanding work in the Greater
However, when it comes to buying Treasury obligations it
\y.jt;i
seems
notice.
\
investors want them marketable
.
.
,
is
There
doubt that most
no
investors and
,
traders
too price-conscious to go for non-marketable Treasury
are
■
institutional
though
as
that they can see what they are doing price-wise on a moment's
so
gations in a big way, yet.
the Fund's
obli-
John
Vice-President,
-
.
.
Scudder,
.
PRICE-MINDED
On
the
other
hand, this price-consciousness also has its limita¬
tions since it tends to create unrealistic situations in the government
Thors,
&
Clark,
Syndicate
ager,
Kuhn, Loeb! &
Thomas R. Clark,
Inc.;
Man¬
Co.,
and
Vice-President,
the
American
Express
Co.,
were
there are very few also honored.
top to prices.
Mr. Ames and Mr. Bradshaw
opposite prevails when quotations are declining, and there took an active part in the Fund's
are virtually no buyers outside of the monetary authorities, because
campaign and headed the com¬
the opinion is that there is no bottom until Federal sets it.
mittee which canvassed the Stock
After what happened last year when the first pegs were dropped,
Exchange member firms and floor
buyers > of Treasury obligations are more skeptical than ever in a brokers.
Mr. Carret headed the
receding market.
committee which canvassed the
market.;
.
.
.
When
are advancing
feeling that there is
Stevens
Emerson
,
Syndicate
1948 appeal.
Elliott,
quotations
sellers because there is the
no
.
.
.
Just the
.
.
.
Mgr., Eastman, Dillon
Co.; B. J. Buttenwieser, partner,
Kuhn, Loeb & Co.; George K.
Coggeshall,
Vice-President,
Schoellkopf, Hutton & Pomeroy,
&
Inc.; Thomas T. Coxon, partner,
Hallgarten & Co.; Enos Curtin,
Vice-President, Blair & Co., Inc.;
Richard
de
la
Chapelle, VicePresident, Lee Higginson Corp.;
Edward Glassmeyer, Jr., syndicate
side, since buyers
;
eral
not interested until they
were
sure
level.
...
Federal
was
ready
price
as
touched
pegged
campaign
mittees
levels and then traders and investors took the market away from
the authorities on1 the up side. . .
Because investors are so
force
more
markets.
.
seems
as
their
in
operations
in
the
to have been stemmed?
it purely
from the short-range standpoint, which seems to be what many
holders and buyers of Treasuries are inclined to do, some further
advances on not too much activity followed by a leveling off, are
anticipated during the balance of the summer.
seems
.
Looking
.
.
,
.
as
.
tion committees
to
complete
Minor irregularity that could develop in the next two weeks,
West
11
tors,
should
bring
buyers
into
the
market.
.
.
.
.
.
.
.
required
by
health
The
by
citations
A change in political.alignments in the fall is not expected to
cause any important developments in money
rates, but it is con¬
Henry
C.
.
Fund's
the
J.
chairman,
in
1948
.
.
(Special
to
The
(Special
Financial
LOS
Chronicle)
OAKLAND, CALIF.—Graves D
Hudson
has
been
added
to
the
staff of Steohe^on. Levdecker &
Co., 1404 Franklin Street.
;
.
what
for
from
prominent
Wall
active
campaign.
in
Street
the
executives
who have
Fund's
1948
been
cam¬
.
Harris,
Frederic G.
Upham. & Co.;
Hoppin, partner, Hop-
now
with Leo
Wertheim & Co.; Thomas F. Len-
Schoenbrun, 1373 Westwood Boul¬ non, partner, Delafield & Delaevard.
He was previously with field; Walter B.
Levering, partner,
John B. Dunbar & Co.
Carlisle
&
Jacquelin; Lewis Le-
■'
'
V'
-
\
j
■
\
,
and for the growth of satisfactory
working relations with members,
which cannot be created by formal
statements
or
agreements,
but
have to grow naturally out of
perience.
ex¬
The Fund is today well
informed, on conditions, problems
policies of member countries.
It is in a position to discuss with
them
the
measures
necessary to
international. financial
with
deal
problems.
Probably
no
single
country or other international or¬
ganization has so complete a col¬
lection
of
facts
and
studies
on
current
you
have urged
of
Agreement
If the creation of the
the
there drafted?
Articles
been
The question above means sim¬
ply this:
If everything else had
been as it was, except.for a clearer
foreknowledge of the difficulties
which have slowed down the eco¬
pin
Bros.
&
Co.;
Warner
W.
to The Financial" Chronicle)
Kent,- partner, Ingalls & Snyder;
ANGELES,
C A L IF.— Joseph
Klingenstein,
partner,
Rachford Harris is
&
exchange and balance of
payments problems as the .Fund.
nomic
ner
Leydecker Adds
propi¬
not,
their untiring efforts in behalf of
,
With Leo Schoenbrun
Stephenson,
you
more
as
presented
.
.
would
If
In
.
,
1944
some
.changes would
to
in
that the
establishment be post¬
time?
•
.
Woods
recommended
until
appreciation
'\x
^
Satisfactory
future,
tious
.
.
.
the
poned
campaign
r
(Continued from first page)
could have peered this far
have
welfare
.
.
Bretton
at
you
hospitals,
.
and
.
If
Fund's
paign include;
.
.
Money seems to be tight with
Frederick F. Alexandre, part¬
policy loans continue on the incline.
Savings
banks have been fairly active in a dull market, with purchases on ner, Gude, Winmill & Co.; Reed
P.
the up side exceeding somewhat those made on the way down.
Anthony,
partner,
Anthony
Tucker & Co.; Harold L. Bache,
The ineligibles have been the favored issues.
partner, Bache & Co.; C. Everett
Despite the lack of institutional buyers in the recent decline
Bacon, partner, Spencer, Trask &
a better technical position which is now in evidence is bringing
Co.; Van Vechten Burger, partner,
in some rather sizable inquiries for the taps, the partially-exempts
Pershing & Co.; Everett Ware
and ineligible taxables, but these deals will not be consummated
Cady,
partner,
Carl
M.
Loeb,
imtll buyers are sure offerings are there in volume, v« v
Rhoades & Co.; Jacques Coe, se¬
nior partner, Jacques Coe &
Co.;
NOTES
J:
Henry W. Cohu, partner, Cohu &
V-..1 The old argument about non-marketables versus marketable
Torrey; John A. Coleman, part¬
issues goes on unabated, with short-term buyers
definitely not in¬ ner, Adler, Coleman & Co.; Earle
terested in the Savings Bonds because of the better return available W.
English, partner, Merrill
in
the
marketable
obligations.
The nearer-term redemption Lynch, Pierce, Fenner and
Beane;
values of the Savings Bonds makes the longer certificates and the Walter M.
Giblin, Hornblower &
2s due through 1952/54 look rather attractive.
Longer-term buy¬ Weeks; M. Donald Grant, partner,
ers of Treasuries, especially those in the smaller
banks, are buying Fahnestock & Co.; Charles D. Haltheir limits mainly in the "G" bonds. . . . Institutional subscriptions, sey,
partner,
Laird,
Bissell
&
according to reports, will also be heaviest in these same bonds.
Meeds;
Henry
Harris,
part¬
by these institutions.
on
concerns
1.
at
Alexander, ViceP. Morgan & Co.
of
and
Other
Insurance companies as a whole are on the sidelines, although
selling of Treasuries is still expected as corporate investments are
these
'*«
the Fund's
...
SIDELINES
taken
Wood,
Jordan
and
Statutes
contribu¬
and
were
President
.
ducive to waiting-let's-see-what-happens attitude.
Hall
Cleef,
--;v,
Fund
"business'
423
'
'
.
.
.
seeks
over-all
'
previously
consulting
the
Fund. In the light of such de¬
velopments the writer put to
Camille Gutt, the Fund's Manag¬
ing Director, five frank questions.
The questions and Mr. Gutt's re¬
plies are as follows:
into
agencies in New York City
maintain essential services.
term rates are looked for in the fall, with a certificate rate of
V VA% still expected in the not distant future.
Large banks
will continue to shorten maturities, as the opportunity presents
itself.
The partially-exempts are attractive to banks in the
/ metropolitan area.
• '
v
.
the
are
'
out
Street.
Fund
of
hospitals,
Higher short-
concerns.
.•••; a?"
..V-
/
comprehensive
business
42nd
The
tions
when the Savings Bond campaign is on with institutional inves¬
of
canvass
still at work
are
the
Solicita*
Headquarters of the Fund
share"
-
invest¬
The Fund raised $5,011,462 dur¬
ing the six weeks of intensive
city-wide- solicitation.
•2-
commit-
tan.
What is the outlook for the government market, now, after the
;;
headed
money
.
FUTURE? ? ?
down trend
*
advisors, bankers and trusts,
respectively throughout Manhat¬
though the authorities should give this
consideration
and
which' canvassed
ment
.
price-minded it
Jabez
Cutt of International Monetary
Funds Answers Some Questions
took
-
'
-
Messrs. Elliott, Thors and Clark
an active part in the Fund's
Fed¬
'
'
unlisted brokers.
the down
ready to take unlimited amounts of bonds at previous
was
support
were
on
& Associates;
partner, Van
Wood.
.
...
This explains the recent action of governments
&
Vice-President, Union Securities
Corp.; Reddington Barrett, Presi¬
dent, Barrett Associates, Inc.; Al-
nest P.
and
Marks
Joseph A. Thomas, partner, Leh¬
man
Bros.; H. Warren Wilson,
.
Also investors
M.
President, the First Boston Corp.;
.
Richard F.
Laurence
Co.; Miller H. Pontius, Vice-Presi¬
dent, Eberstadt & Co.^ Inc.; David
L. Skinner, Vice-President,' Harriman Ripley & Co., Inc.; Rudolf
Smutny, partner, Salomon Bros. &
Hutzler; Frank M. Stanton, Vice-
.
still
Fund had
delayed, all this work would
have had to be
done, and
there
is little reason to suppose
that members in general would be
readier to entrust wider powers
to
the
Fund
in
1948
at
or
some
world, later date than they were in 1944.
The Fund has already been able
would it have been wise to post¬
of
recovery
the
'
Fund?
to
adapt
And, if pot, what amendments, if
any, to the Agreement should have
to
the
present time.
been
much
the
pone
creation
of
the
pressed, as a result of this
foreknowledge?
The answer to
the first question
is probably, no,
has cer¬
tainly been disappointing, and the
the
when
Fund
been
indeed
were
much
more
would
could
end
of the
period."
The
be
in
its
the
Woods
It
Articles
time
French
bear
,
defiance
the
to?
Is
are
such
technical
studies,
of
the
smaller
mem¬
the
Fund
just
Fund
or another
most powerful
The
French
ended, and
now
at
ef¬
time
of
one
from the Fund's
member?
episode
any
a
members
seeking direct aid
sort
of
a
contention
international affairs
in 1944, and-the period
already elapsed has been ';;
too long for the evolution of
preparation
often
sceptics that, should
come
to an impasse
out
when
realized
the
Bretton;
was
fective only when dealing with
members of lesser weight In
"transitional
gathering of information and
the
it
of
alluded
realized
organization, for the
Agree¬
have to give way to that mem¬
ber's.
Does
not
the
recent
first
effective
of
major political importance, the Fund's wishes would
that has
none
of
debate
ever
ber
■
steps are inevitably
perhaps slower than was generally
an
have
stated by
now
not
to
between the Fund and
.
until the
like
activities
Sovereignty
.
imply.
There was obviously the greatest
uncertainty, but whether things
went well or ill, it was worth¬
while taking
the first steps to
set up an instrument whose full
usefulness
its
have not;
seriously hampered by any
At
and restrained than some current
criticisms
but
a
cautious
It has not done as;
The Fund and Members'
can
"normally" in
effect
some
ment.
expect
"nor¬
mal" world is further away than 2.
some: people had hoped in 1944/
Many of the forecasts of that time
to operate
with
it. would
as
defects
and to the second/ none,
The rate of Recovery
time
done
itself
peculiar conditions of the
is not
judgment
yet
upon
it
should therefore be regarded
Volume 168
Number 4712
(25)
quite provisional. It would ob¬
viously have been better for the
sary
Fund if the French had been will¬
tling international accounts.
,r
One of the purposes of the Fund
These are the reasons why the is to facilitate the
abandonment by
as
not
for strengthening their mone¬
and for use in set¬
tary systems
that
mean
has
progress
the
reverse
of
ing to abide b,y its recommenda¬
But "defiance" is too strong
to describe their attitude.
Fund issued its statement to mem¬
word
a
bers
on
A country which has "defied" the
Fund does not thereafter continue
nal
sales
to consult
elimination of exter¬
the
members to
The
prices.
seriously with the Fund
of
premium
requested
gold at
Fund has
take the steps neces¬
in
terms
of
achievements
The
of
the
Fund
:
solid
are
Fund
multiple exchange
the flow of exports and to restrain
freedom and
bility
It
ance
desirous to maintain their
been
suppose that this transition will be
facilitated by a mere formal ban.
Their solution will take time and
put into effect to assure that
international gold transactions are
not conducted at prices that un¬
dermine the agreed parity or vio¬
as¬
sociation with the Fund, not with
the idea of ultimately
having the
satisfaction of persuading or
pelling the Fund to
their
to
com¬
late
around
come
the
other members.
what
also
the
all
to be
parties
to
that
is
It
interesting
least
at
one
non-
country, Switzerland, has
measures
along this
taken
an
/:-v
In making effective its
mendation
the
recom¬
must of ne¬
Fund
French Government.
.
cessity depend, upon the action
The fact- is that since France taken by its members. The United
established its new exchange sys¬ States and the United Kingdom
tem despite the objection of the have placed effective controls oh
Fund, a number of changes have any gold exports which would
been found necessary in order * to conflict with the Fund's policy.
achieve the objectives that the In the European countries, includ¬
French
Government
originally ing France, which are members
sought with its exchange meas¬ of the Fund, the monetary author¬
ures.
The changes affecting ex¬ ities have prevented transactions
change
transactions
with
the of this kind which in fact are also
United States, Belgium, Italy and in violation of their own laws. In
Switzerland
have
aimed
been
at
reducing the discriminatory effects
of the French exchange system
and toward unifying it.
The
French example does not
show Fund members that they can
as they please; it shows rather
do
that if they do as they
must
please, they
put up
with certain penal¬
ties, which,; if hot always an effec¬
tive deterrent,
are
nevertheless
highly disagreeable. The confi¬
dence of members in the
of
the
Fund
creased
integrity
actually be in¬
may
by the Fund's decision to
place itself in the position of
stating clearly its objections to a
member's policy, even when
it
knew that its objections would not
for the time be
wholly effective.
Without
attempting to say that
the Fund would be equally effec¬
tive in presenting its views to its
members
financial
if
it
did
resources
have
not
to aid
the
them, it
major
importance in securing important
changes in policy designed to
strengthen the, monetary system,
improve the balance of payments
position, and to lead to a simpler
and
a
realistic
more
a
of
rate
ex¬
change,
None of these countries
bas consulted the Fund solely for
the purpose of obtaining aid from
the Fund. They have, on the con¬
trary, welcomed and even re¬
quested expression of the Fund's
Views, quite apart from any re¬
quest for or expectation of finan¬
cial assistance.
(
Gold
13.
Have
Premium Prices
at
not
the
its
members
to
this
field
is
to
have
any
considerations, both eco¬
political, in each of the
nomic and
countries
out
a
concerned, and to work
of
course
action
whereby,
by appropriate steps, the country
may move toward the desired end.
And
in determining whether any
change is a movement of this
kind, it is not enough merely to
look
the
at
number
of
different
rates and to enquire whether the
number has diminished. The real
,
.
France?
Did
not
even
Canada—in
effect of its recent gold-subsidy
policy—in effect flout both the
Fund
much
very
in the
,
the
and
tri-the
as
case
United
States,
France has done
of the franc?
View
of
the
acceptance of the initial
par
values
plates upon each member a re¬
sponsibility to restrain transac¬
tions which
values.
of
the
gold
undermine these par
Furthermore, in the view
Fund
the
resources
conservation
the
interest
of
of
its
members
is
whether
the
modification
Judged by this test, the Fund's
This is not to deny that inter¬
national
gold traffic at premium
prices continues although appar¬
ently
on
reduced scale.
some
non-member
a
Among
countries, and
decisions
In
trade
is
particularly
of
rates
approval was in fact
and nearer to an inte¬
grated
gold
difficult,
of
number
qualified
a
simpler
regulation
the
has increased, though in Italy the
system to which the Fund gave
in the Middle East and in the Far
where
far have been sound.
so
Ecuador
East,
international
have
tended
gold transac¬
tions at premium prices continue
despite the recommendation of the
Fund.
In the nature of things,
rise
to
in
recent
months would indicate that
of
the
which
rate
than
payments.
hoarding
The export of gold for
deprives
authorities of the
the
monetary
reserves
neces¬
Fund.
of
Fund
primary
financial
international
its
Much
this
of
prob¬
material
Fund.
the
The
public
the
publications
of
expects to
Fund
is
Some of
it is made available to the
en¬
large the scope of its publications
and to make available to the
the
lic
tion
fullest
pub¬
informa¬
possible
international
on
problems and
on
financial
the work of the
Fund.
predecessor.
depart¬
ment, effective July 1.
*
A
graduate
School
and
of
of
the
Pomfret
Princeton Univer¬
sity in 1931, he is a Navy veteran
and
held
the rank of Lieutenant-
Commander at the time of his
re¬
lease after nearly four years' serv¬
ice.
Mr. Hallett has devoted his
entire
business
to invest¬
career
ment work.
Redwood Re-elected VP
of Baltimore
The Fund
the
the
of
re-elected
Baltimore
annual
the
ward
Vice-President of
Stock
Exchange, at
organization
Board
of
meeting
Governors.
Ed¬
J.
Armstrong, Stein Bros,
and Boyce, was re-elected Treas¬
urer.
Mrs. Helen P. Garrett was
again chosen Secretary, and As¬
sistant
Treasurer, and Mrs. Mess-
amine Farber, Assistant Secretary.
The
following
were
elected
Chairmen
of
the
ing committees:
various
stand¬
.
Arrangements:
H.
L
d
a n
o n
Davies.
Admissions:
F.
Grainger
burg, Alex. Brown & Sons.
Mar¬
Listings: Mr. Redwood.
has been in consul¬
It
Exchange
BALTIMORE, MD.—John Red¬
wood, Jr., Baker, Watts & Co.,
was
Among the achievements of the
f
investment
Company's
New-
say
tation
not be undertaken if members had
of
sources
markets
these
are
supply
drying
up
have
It
should
be
on
■
and
from
tem
uncertain
been
made
system
ap¬
complex
more
sys¬
ineffective
and
with inflation and balance
rates,
of payments diffculties
growing in
that
system approved offered the best
prospects as a stage from which
recom¬
further movements in the desired
clear
a
the elimination
of
places where such markets exist,
they have been put into effeci
without objection by the Fund.
The
Fund. Agreement does not
forbid all subsidies for gold pro¬
duction. These may take numer¬
forms, and in
of
a
therefore, severity. Of these alternatives the
has,
domestic markets in gold at pre¬
mium
prices.
Indeed, in some
ous
the
proved
and the Fund's
the Fund has not issued
mendation
between
was
some
not been ineffective.
another
found in many
gold producing countries.
What
the Fund Agreement does forbid
is a subsidy in the form of a rise
in the price of gold because such
a
subsidy casts doubt on the
agreed parity and tends to under¬
mine the stability of the parity.
one or
form they may be
Finance:
The
Fund
recommended
have
tion
of
in
resulted
the
the
by
stabiliza¬
prices, reduction of
cur¬
in
circulation, removal of
all quantitative restrictions on im¬
rency
ports and
complete freedom
capital. This has been
even
to transfer
done in less than
a
year.
From
a
situation where contingent liabil¬
ities on • import licenses and con¬
firmed
letters of
credit
exceeded
the
W.
Carroll
normal,
and
are
vorable
international
pay¬
nearly in, balance.
conditions
is
moreover
and
the
are
being
Fa¬
cre¬
have
avowedly temporary,
Ecuadorean
given
authorities
undertaking to
light of experi¬
comparatively short
an
it in the
review
ence
within
Fund.
time.
The
porary"
a
of the word "tem¬
use
certainly guarantees
part of the gold produced nothing afrout the future, but the
would constitute an increase in undertaking given is much more
or
price and therefore would not be
permissible.
The
subsidy
now
operating is, however, dependent
upon cost conditions and therefore
than
does not constitute
taking
the
an
increase in
price of gold.
formal undertaking.
a
4.
Exchange
•been
a-vis
walking
Ecuador
a
others
has
already
been
would
made
in
developing friendly and effective
cooperation lor the elaboration of
sound and constructive policies.
for
than
more
a
it has engaged
actions
totaling
The aid
$600 million.
over
thus made available in
critical time,
funds
of
year.
In this time
in exchange trans¬
when other
a
sources
not
readily avail¬
able, has been of enormous help
were
to the members of the Fund.
It
has enabled them to continue in¬
ternational payments
without re¬
quiring new restrictions and fur¬
ther clogging of the channels of
international payments.
is
the
evidence
do
not
regard
Fund
bers
an
easy
that
mem¬
the Fund
as
of funds for en¬
scale of imports.
source,
larging
their
Their cautious attitude toward the
Fund's resources indicates
that
the
members
of
clearly
the
Fund
recognize its essential character
a
line
second
used
only
in
ance
of
temporary
for
Morgan Stanley Group
Sells N. Y. Tel. Issue
An underwriting group headed
by Morgan Stanley & Co.
30
offered
publicly
on
June
$90,000,000
New York Telephone Co. refund¬
ing mortgage 3% bonds, series F,
July 1, 1981 at 101 Vs and in¬
terest,
to
yield
approximately
2.945%. The group won award of
due
the
bonds
at
competitive sale
oil
its bid of 100.67.
The proceeds will be applied to
of
short-term
bank
repayment
notes, which
were
outstanding in
the amount of $62,000,000 on June
1948, and the balance will be
15,
used for the
company's construc¬
Fund
as
be
resources
will
use
of the
indicates that the
remain
an
influential
aiding members in deal¬
ing with their international finan¬
problems, both through the
financial
technical assistance it
in
are
close
consultation,
and
and
continuous
the
Fund
aid
it
can
give and the
can provide.
The
Fund's
With William R. Staats Co.
(Special
SAN
Achievements
to
The
Financial
FRANCISCO,
Russell M. Dickson is
5.
To what specific achievements
of
the
point?
-
In
do kwork
Fund
to
date
can
you
;
general,
the nature of the
of the Fund is such that it
common
share.
stock,
All of
par
value $100
stock
common
is owned of record and beneficial¬
ly^ by American
Telegraph Co.
Telephone
8c
Phoenix Glass Common
Offered by
Kaye,
Real
Kaye, Real
& Co.
on
June 28
publicly offered 149,000 shares of
common
stock (par 50 cents per
share) of The Phoenix Glass Co.
be used for expansion.
an
-
of
per
at $2 per share. The proceeds will
is
active and lively inter¬
est in the course of developments
tion will consist of $350,000,000 in
debt and 4,213,000 shares
funded
assist¬
This
factor in
cial
Following the financing,
the
company's outstanding capitaliza¬
time of great need.
careful attitude toward
Fund's
to
reserves
ities
treadmill—if
and
The
Rates
indeed the Fund's policies vis-
as
Fund and the Ecuadorean author¬
there.
Multiple
results
proclaimed
to the
specific achievements.
very high the progress
rate
that
the
be
tion requirements. The bank bor¬
rapidly diminishing reserves,
situation has changed to one
Perhaps more important than rowings were made to provide
in which reserves are no
the fact that members purchased funds for its construction
longer
pro-falling, contingent liabilities are $600 million of exchange from the gram.
proposal was not inconsistent with
the general policy stated by the
a
world
We
that
to
the
the
A subsidy in the form of
uniform payment per ounce for
idea
the
The Fund has been in operation
fact is that in Ecuador
measures
with
have
direction could proceed.
ments
made it possible for the Fund to
determine that in the present cir¬
cumstances the revised Canadian
in
and
that the Fund has
try¬
ing conditions.
The fact is the
Fund has done and is doing a good
deal to help its members in es¬
tablishing the conditions necessary
for achieving the objectives of the
Insurance
Life
ineffective under these
been
The important thing, however, in
each case is that the new setup
clude that at best the Fund has
for
to
not
with
Mutual
Mead,
practically all of its
Mead, Miller & Co.
members, in some instances pro¬
was likely to facilitate the move¬
of
Securities:
Leo
technical
assistance
in i Delivery
ment of the economy into a posi¬ viding
>
tion from which later a further working out exchange and cur¬ Kriegel, of H. Landon Davies.
Business Conduct: Charles W.I*.
programs.
Much of this
no
statistics
of the volume
of movement to a single rate could rency
hjac& market transactions exist be made without intolerable strain. activity involves contacts and ne¬ Johnson.
But the fact that black market The choice in Ecuador was not gotiations with members which it
Commissions
and
Quotations:
would- be improper, to publicize Mr.
prices of gold in Syria and in between the system which ihe
Armstrong.
and some of which indeed could
several places in the Far East Fund approved and a single rate.
Xaw: Mr. Johnsoti.
some
Strengthening of their balance of
condition
is
through
In the matter of multiple rates
of exchange, is it unfair to con¬
essential
last
international economic difficulties
mendations.
the
an
the
In
analysis, it is only the national
policies of members that can make
it possible to achieve the objec¬
tives of the Fund. But to say that
the world is still faced with major
necessarily confidential.
necessary
for the settlement
of international transactions is
and
lems.
all
Fund, the
Fund.
by
Fund
on
sulted with
altering the form but not the
the
outside
action
the
easier, when the necessary fis¬
credit policies have been
and practicable was also taken to put into effect, to move nearer
to a single exchange rate.
comply with the Fund's recom¬
believed
was
gold-subsidy
efforts
policy into operation, Canada con¬
elimi-
East, Latin America, and
;
v
through
will become associated
England
problems.
require concerted
members
tion's
re¬
be
test
ated to move promptly toward an
Fund, and when
nate the premium-price traffic
the Fund raised certain objections, orderly and stable exchange sys¬
In gold disclosed complete or
tem.
Canada made significant changes
partial impotence in the Near
The present Ecuadorean system
in its original proposal,
which
among
is
in
effect, to take into account all the
will
exchange
of the First Boston Corpora¬
Washington,/ D. C., office,
ager
by bal¬
monetary
cal and
as
Before putting its
Fund's
tion
and
serve,
troubled
be
most other member countries such
consideration and have been
its members have been of
rights
of
or
adapt
existing practices during the tran¬
sition period, it is in any event
necessary, if the Fund's interven¬
to
payments,
action
recommendation
Fund's
resources.
Consultations
between the Fund and several of
the
maintain
of
proposed will place the economy
in a position from which it will
fed
em¬
aside
to
continues
importance to
the Fund's purpose is the great
progress made in collecting infor¬
mation and in preparing studies
is in fact clear that the views of
the Fund have been given careful
bodied in the policies of members
that have not made use of the
Leaving
members
relevant
line.
unsatisfactory situ¬
ation,
I have myself kept a close
and very friendly contact with the
agree
note
member
concerned
regulations of
exchange
of thinking, but in
the belief that by so doing solu¬
tions may be hammered out for
way
imports where that is desirable.
would, however, be foolish to
Lucius F. Hallett, Jr., for thepast two and one-half years Man¬
The world
assurance.
sary
are
Mutual Life Ins. Go.
if not spectacular.
The
clearly has not restored a
practices
and
the
substitution satisfactory exchange environment
therefor of a single integrated rate in which international trade and
of exchange adequate to
permit payments can be carried on with
its members of
in regard to all the intricate issues
which arise out of the decision
to carry out their responsi¬
in this matter.
In many
which has been made. The French countries important measures have
Lucius Halletf Joins
specific achievements.
.
tions.
described
be
cannot
occurred?
25
ated
Ill
was
with
William
Sutter
Street.
Chronicle)
CALIF.—
now
associ¬
R. Staats
Mr.
Co.,
Dickson
previously
with
Walston,
& Goodwin, and Wulff,
Hoffman
Hansen &
Co.
The
Phoenix firm, established
1880, makes a widely diversi¬
fied line of glass products and
sells a large portion of its output
in
to the building construction in¬
dustry. Its plant is located in Monaca, Pa.
\
The above securities are offered
as a
speculation.
26
(26)
THE
I
■
.
Financial
abandoned and
; money
rates.
a
plan of managed
to provide
a
credit
To
low
at
whole to provide mankind with
reasonably satisfactory standard
of living. The big majority of the
world's population exists at a bare
subsistence level, with few of the
subordinated to the im¬
mediate objective Of inflating in¬
omy was
to
come
prices.
the
best
own
realization
interest
lies
that
in
a
our
far-
sighted international program
however,
was unable to cope with the basic
problems of the depression or to
to
improve the unhealthy economic
r
conditions
abroad
which
breed
reduce
substantially the enormous wars and totalitarian governments.
unemployment. In 1938 our econ¬ The Marshall Plan, which aims at
omy was in a strait-jacket with a' self-supporting Europe, is our
little prospect of recovery.
-But biggest step in this direction.
when the outbreak of
war
in Eu¬
stimulated armament activ¬
rope
In
it
the light of this background,
is
at
once
apparent
that
the
ity, - our e con o m i c situation problem facing the world today is
■changed with lightning rapidity. not one which can be quickly
Unemployment disappeared as solved.
The shortage of basic
millions of young Americans were I necessities is of tremendous
magdrafted into the armed forces. We
i nitude
and is worldwide in its
'soon found ourselves confronted
scope.
It seems clear that expan¬
by a wide variety of shortages, an sion of domestic production is pre¬
inadequate labor supply, rationing
of many products, and allocation
and controls for others.
Probably
never before in our history had
We experienced so complete and
fundamental
sition
in
reversal of
a
such
our
po¬
relatively short
a
period of Time*
Economic
Confusion
and
Misunderstanding
;
Accordingly, it is not surprising
.
that there exists today much con¬
fusion and misunderstanding about
the major economic problems that
confront
now
following,
In the period
us.
the,
great"
depression,
made to bring,
prices! Today our
every, effort- was
"about
a.
chief
rise in
concern
is still with prices.
requisite to any constructive pro¬
gram. In spite of the fact that our
industrial productive capacity ex¬
ceeds that of any other country in
the world, it still falls far short
of what is heeded to satisfy our
own needs.
The expansion of our
productive machine, contrary to
popular belief, has not kept pace
in recent years with our popula¬
tion growth and with the require¬
ments necessary to insure a nor¬
mal growth in: our own Standard
of living. While it is true that our
living standards have risen, the
gain has been spotty and not of
the uniform character necessary
to provide maximum, satisfaction
and to eliminate the devastating
r
economic costs of class warfare.
But now* the problem is to prevent
them from getting out of "hand
-ahd developing into a disastrous
spiral of inflation.
CHRONICLE
Our efforts to
solve
this, problem" are handi¬
capped by; the carryover of meth¬
ods
and
policies previously
adopted to accomplish the very
thing we are now endeavoring to
situation
time" other government of¬
same
required by law to sub¬
those
same
high prices
are
sidize
of goods and' restricting
with
the output of certain
metals is even more
respect
Correcting
to
Current
Business
Fallacies
non-ferrous
These basic factbts affecting our
discouraging
capita basis, when com¬ present situations TireT generally,
pared with that of about two dec¬ known to bankers, but unfortu-;
ades ago.
We are short not only nately, we bankers are not doing
of copper, but also of lead, tin, as much as we might in bringing
zinc, and manganese. It is gener¬ them to the attention of ; the,
ally agreed that these basis metals American public m oraer to cor¬
on
a
per
Production Exaggerated
The United States has not made
nearly the progress in the
expan¬
sion of industrial
the government is
accomplishing
pounds of iron and steel per capita,
as
compared to 1,040.5 pounds
has become the fashion in recent;
blame management for
prices and shortages.
Some government spokesmen give
the impression that the panacea
to
little in the way of acquiring ade¬
years
quate supplies to
current high
While
nature
generously
has
with
its need.
cover
endowed
both
us
anthracite
is additional controls in the hands
the cost of
so
much blood
bituminous coal,
our
production of these basis
terials has
ment
annual
raw ma¬
been
time
capital,
as
but
well.
To
a
considerable
large extent
per
149
million
tons for
It
has already been steel^making
capacity
of
this
by the threats of a new country is 91 milliion tons of in¬
aggressor
in
the
international gots and steel for castings per
arena.
Instead of the peace which year, an increase of about 18 mil¬
we had hoped to achieve, we find
lion tons above that of 1929,
The
ourselves faced with a new strug¬ importance of this increase, how¬
gle requiring sacrifices practically ever, in view of our changed in¬
akin to those called for during the ternational
position, is relatively
that
1940.
treasure
diluted
;
But this time
war.
are
depleted and
our
of
We
a
are
resources
minor.
burdened
~
,
Federal
and
credit
Bank
serve
Re¬
policies must be ■ carefully
evaluated
order
in
to
insure
-t
art
.
We must remember
that
;
loans is desirable. No veteran will
benefit
from
house for
buying
$6,000
a
$12,000. What is needed
is selective
control
rather than a
bank credit.
blanket reduction in
Selective control
Federal
can
administrators,
■
quested
Congress to
them
grant
what
may
we
seem
axiomatic to say
only have and enjoy
produce. Notwithstand¬
can
we
ing this fact,
we
are
continually
risk,
of
Investment
stimulate
additional controls to restrict the
capital and promote plant ex*
growth of business to pansion.
An increase in capital
essential
needs.
The
policies formation through investment is
adopted, together with the warn¬ the only way that we can lay the
ings, have resulted in a general foundation for long-run prosperity
tightening of money rates.
and a rising standard of living,
further
.
The problem faced by our fiscal
Tho chief reason why it is dif¬
authorities is extremely difficult j ficult to obtain constructive action
and the skill with which the deli¬ in tax and
monetary policies is
government spending is so !
high. : Federal, state and local
governments should postpone all
public works except those of d:
strictly emergency nature in or*
that
der to reduce government
spendtransfer scarce sup*
plies to productive enterprise. The
Federal cash surplus should ^con^
tjnue to be used to pay off .the
ing
and
•
to
bank-held public debt.
reduce
the
money
This will
supply by
an
equivalent amount, since it is the
purposes.
In other words, they reversal of the process by which*
would like: to keep money cheap^ the
money supply was expanded. H
and .at the same time, make it' Since the
public debt cannot; be
hard to get.
They would like to reduced during depression and
.
credit
confronted with evidence that this
contract
homely truth is much misunder¬
stood.
Production is continually
restricted by government regula¬
tions and by work stoppages re¬
sulting from the non-cooperative
the
hand
and expand
on
one
our
international^ committments
-
it on the other. These promise to remain+ high, we can
are
good tricks if they can do ill afford to delay fpajor'curtail-,
them..! Regardless of! that, how¬ meiit of domestic
government, ex¬
ever, the powers of the reserve
authorities at present appear to be
penditures.
our
debt of great proportions.
still faced with shortages
tions.
could then resort to rationing and j
requirements are greater than attitudes of labor and manage¬ ample to accomplish any desired
they were in the past, and that ment.; As
a
At least they are ample
consequence,
our purpose.
our population is increasing
rapid¬ problems are aggravated and class to accomplish thenpossible and no
and inadequate productive capa¬ ly. Since 1940 the increase in
amount
of,' additional
popu¬ feeling needlessly inflamed.
powers;
En¬
city. Our dreams of a better world lation has been about 10%, or about tirely too many people are de¬ would enable them, to accomplish
have not come true. That the frus¬ 14,000,000
people — the
equiv¬ luded by the belief that govern¬ the impossible. The plans recom¬
tration inherent in the existing alent of the population of Canada. ment will somehow
provide for mended to Congress, giving re¬
situation should produce tensions, As a result of the war world steel their needs. The fact that govern¬ serve authorities ^powers to in¬
misunderstanding and! confusion, production has declined, particu¬ ment itself produces nothing and crease reserves * and to require
is not surprising.
There is Tittle larly in Western Europe, more distribute only as much as it col¬ special reserve* funds, might be
doubt that the depression of the than ours has increased. Because lects in taxes is not generally un¬ very effective irf
restricting credit, j
'30s, with its unemployment and both our domestic: and export derstood. .Taxation
may
arbi¬ if that were theirlonly objective.
lowered
standard, of living for needs are greater than ever be¬ trarily result in distributing some Neither Mr. Eccle$;hor any of the
millions of people in most parts of fore, the over-all situation is much things more or less equitably, but Reserve Bank -^authorities, how¬
the world, was a basic factor con¬ worse than it formerly was. •, .
it can add nothing to the sum ever, have ever! "explained how
with
we are
tightening of bank credit
of open market operar
!
a
means
.
The
and
by
only be ex¬
who! ercised
by individual bankers, not
by directives from Washington.
lagging and per
price-fixing when. their wisdom; At
present the Federal Reserve J
capita-wise is considerably below
dictated.
It should at once be
the levels reached in the past, not¬
appears to be ready to buy uh*'
obvious that rationing and pricelimited amounts of government
withstanding improved mechani¬
fixing add nothing whatever to securities to support
zation.
Our needs for electrical
pegged
available supplies, but merely at¬
prices. Bankers, however, should
power capacity are so great that
tempt to divide an inadequate arrange their government bond
curtailment of industrial custom¬
supply at an arbitrary price. In-,
ers
and the rationing of power
portfolios so that they could stand
stead of solving the problem, it
whatever shock might result from
has become commonplace in many
aggravates it by increasing de¬ a further lowering of the support
sections of the country. While the
mand for scarce goods and by; level or the
pulling of the plug
power industry is endeavoring to
freezing an unsatisfactory condi-!
entirely.
While the latter con¬
expand, it is retarded in its efforts
tion, without of itself stimulating tingency—that is, the withdrawal
because of bottlenecks in the pro¬
sound measures for corrective ac¬
of all support—does not at this
duction of generators, steam turr
tion.
Many of our present diffi¬ time
appear likely,
conservative
bines and transformers.
Another
culties can bq traced directly, to
bankers will arrange their affairs
of the serious handicaps to larger
past policies of the government; so as to be
ready for it.
production
is the
shortage of and our ultimate economic health
freight cars. Steel production has lies in refusing another dose of
Increasing Capital Investment aijt
been held up frequently by the
this same bad medicine.
: Important Objective
lack of an adequate supply.
It
As a result of the war, our sup¬
In
outlining
a
constructive
was only about file middle of last
ply of money and bank credit in¬ fiscal program to cope with our
year that the steel companies be¬
crease d
approximately
three problems, possibly the most im*
gan to apportion even sufficient
times.
The supply of goods and portant objective we can work
steel to freight car manufacturers
services available .for purchases toward is an increase in capital
to permit the building of enough
increased only moderately, and in investmenfvThe American people
new
freight cars to replace the
some - lines ^actually
decreased have .a colossal volume mf ; funds
number currently wearing out. In
relative to the increase in popula¬ which they are currently holding
lumber production our decline on
tion.
This
is particularly ; true unemployed in the form of cur*
a per
capita basis since 1929 is
with; respect to housing.; TheMis- rency and bank deposits, largely
approximately 25%. Even though
proportionate
increasev in
our because interest rates are held
the war has been.
ox^^Si^tb^ee, mtoney supply in relation to goods near the artificial wartime levels.
years, we have failed by a wide
constitutes the5hard! core ofnour While a further reduction of rates*
margin to produce any thing like
inflation!:! problem; Neither 5 the in the lower tax brackets should
the same number of automobiles
banker nor the businessman is re¬ be avoided as inflationary, some
we produced annually; at- the end
sponsible for this situation since levelling of the steep gradation of
of the 1920s.
it was an inevitable consequence surtax rates would greatly stimu¬
The late capital investment and, there¬
Need for Capital Goods Industry of financing our war effort.
pressure of our swollen money fore, would be anti-inflationary.
Expansion
supply on prices continues to be Elimination of double taxation on
This brief review of the inade¬ one of our danger potentials. Fed¬
corporate dividends and reduction
quate supply of certain essential eral reserve authorities have re¬ of the tax on
capital gains also
and
-
won at
from
.
existing
problems
cans
be
capita in 1929.
Even at the our
peak of our war effort in 1943 we traced to the failure of American cate situation has been handled
reached a production of only 1,- Industry to expand in the past two thus far in the
post-war period
tion in which we find ourselves
300 pounds per capita and accom¬ decades as it did steadily through deserves
great praise.
Actually,
today are easy to understand, but
booms
and
depressions
before
plished that for only a short pe¬
government authorities are at-,
the means for solving them are
1930. American industrial growth
riod under wartime conditions. We
tempting an almost impossible
complicated and difficult.
declined since the task.
have not been able to maintain it has actually
On the one hand they are,
At the same time that-our econ- since,
third
decade
of
this
century. hoping, to prevent a serious rise
largely because of labor
Whether or not government re¬
omy was turned topsy-turvy, we conflicts in allied essential indus¬
in interest rates for
long-term
as-va nation found ourselves sud¬
tries.
World steel ingot produc¬ strictions on industry and invest¬ government bonds, while at the
denly catapulted into a position tion reached a total of 170 million ment, after the great depression same time restricting the available
of leadership in. a world divided tons in
1943, and dropped to 121.6 were causes of this decline is a supply of credit for business and
ideologically and prostrated eco¬ million tons for the year 1946. question that could well be prof¬ increasing its cost in order to dis¬
nomically. The victory which we This latter figure compares with itably explored.
courage its use ; for
speculative
when, support levels are reached.
The reasons for the changed posi-?
credit through
of higher? re¬
serves
and by means of special
reserves would produce a result
different in its ultimate effects
bank
Hi the V requirement
services available to society.
production that
is often assumed.; This is particu¬
larly true in the production of
consumer durable goods.
If we
prevent.1
Our confusion in this
compare the per capita iron and
regard is well illustrated by what
steel production today with the materials and the shortage of pro¬
is happening with the priced of
per capita volume reached in 1929, ductive facilities in many basis
foodstuffs. On the one hand the
we
find f' practically no growth industries clearly shows the neces¬
high cbst of living is. forcing up¬ whatever in almost 20
years: in sity for a very substantial expan¬
ward wages and industrial
costs, this most basic; and i essential of sion in the capital goods industry
and high food prices are deplored
our durable goods.
For example, in this country. This task requires
by government officials. ; At the we
produced in 1946 only 944.6 not only a large amount of invest¬
ficials
Thursday, July 1, 1948
■
comforts of civilized life and with
chasing power. The long-run ef¬
fect of these policies on our econ¬
legislation,
FINANCIAL
■;
adequate supply of funds for inshould be generously stockpiled rect current business fallacies. All dustrial expansion and,
at the
by the government as a military too often the tendency is to place same'time, avoid a disastrous in¬
the blame for unsatisfactory eco¬
little hope of substantial improve¬ precaution, since we are dependent
flationary spiral.
Some curtailment in the near future.
on* imports.
Our civilian demand, nomic. conditions on! either the. ment of installment credit and
businessman or the banker.
It;
We in the United States have however, has been so heavy that
easy terms available for housing
adopted to create jobs, to subsidize
the jobless and to distribute pur¬
Federal
be¬
are
a
implement these ideas
and
We
a
interest
program of deficit financing was
comes
>
ginning to recognize that much of
the problem existing today results
from the inability of the world as
was
adopted
was
abundant
standard
Our
tributing to the conditions which
led to World War II.
production and increasing
prices.
Our currency was de¬
gold
&
,
total of the supply
(Continued from first page)
the
•
Aspects oi Business Ontlook
trial
valued,
COMMERCIAL
.
,
*
All' these
contribute to
a
>
;
fiscal
reforms
more
stable
.
will
econ¬
omy based on an increase in pro-*
ductive capacity.
In addition, it
is
to
be
hoped that an improve- H
managerial techniques
and in more efficient machinery:
and equipment will raise our pro*
ment
in
duction levels td new1
it
is. only
heights. Fo*X
production
production :%ich will
United
States
a
perous economy
and more
-
a
sound and pros-* '
and
an
ing standard of living.
ever-ris*
!-
^
Volume 468
Immediate
"As
far
Business
the
as
look: for
business
it
as
just
about
been
cycle
to
come
extended
FINANCIAL
&
CHRONICLE
The State of Tiade and
pertains
(Continued from
:
my
increased
merchandise
had
vend has
page
moderately and
for
re-orders
numerous
which
an
goods .continued to improve.
'
.
»
,
Industry
buyers
continued
to
of
be accompanied by a social security package ordered under the con¬
foretold
cation
/
extended
but
that
remain
•
;
at
through
there is
business
siguea in 1947.
Negotiations between U. S.
other
under way for more than a week, states "The
metalworkmg weekly, in its current summary of
tract
indi-
every
95.2% OF CAPACITY
;
The steel workers are going to get a raise in pay within a few weeks
and when the exact figure is determined the wage hike will probably
be
cannot
steelworkers
activity will
high levels, at least
Unless there is a
1948.
The
capitulation
WHOLESALE COMMODITY PRICE INDEX MAKES FURTHER
SLIGHT GAIN FOR WEEK
The
Steel Corp. and the
features nave oeen
the group insurance ana
on
.
a
;
it
been
Dun & Bradstreet' daily wholesale commodity price index
irregularly in the week. The index figure for June 22 regis¬
290.45, up slightly from 288.82 a week earner and compared
moved
Iron Age," national
tered
the steel traae.
with 259.73
the
the Lke date
on
major shift in government policy,
price
averages
should
remain
fairly level during this period
steel wage issue will come after steel
leaders have admitted that their attempt to stem inflation by cutting
the week
prices and refusing wage increases has failed.
and
tne
•
inflationary forces at work
being counter-balanced by
deflationary forces which have
j
While interest rates
2.
•
on
to
slightly, the chances
good that long-term
be
ing
the
near
conclusion, I would like to
.say that this is a time which calls
for caution.
We may be sure that
J,his boom is not going to last forof
We have enjoyed a period
eight
almost impossible to make a bad
loan.
During six of these years
effort
sets which
thirties.
were
in
fact
as¬
been
a
couldn't lose.
'
We
over.
peacetime record of 85,000,000 tons made last
are
back in the
i
pacity
suffering
the
point,
the
week
beginning June
1%, from last week*
or
28,
A month
ago
a
of
our credits—not only from the.
standpoint of co-operating in the
ABA
anti-inflation program by
restricting loans to those for essential productive purposes, but
also selective in the quality of
-
"loans
for
any purpose, however
These are good times to
be building up reserves for losses
"Worthy.
•
which
to show up somewhere down the line.
In this re-
-
;
•
are sure
spect,
the
recent
ruling
of
the
Treasury Department which pbr?
fnits
the
setting
for losses
of
the basis of
oh
experience
up
constitutes
reserves
a
20-year
great
The plan is, of
break for banking.
course,
one
which
Should adopt.
a
bank
every
•
\ 'The banks
of the nation
are
to¬
day in a very strong condition.
>The greatest service we can ren¬
der this country during these un¬
certain times j s to keep them so
Halsey, Stuart Group
Consumer
the indicated rate
for the week
Halsey, Stuart & Co. headed a
of underwriters who op
June
25
due 1968,
publicly offered $7,000,bonds,
of Gulf, Mobile & Ohio
RR.
at
000 collateral trust 3%%
Co.
group
•
June 24
\.
.
?
:•
,
was
on
101
and
awarded
a
bid of
interest.
the
The
issue
100.08992..
i
other company funds, will be applied to the purchase of equip¬
ment estimated to cost
approximately $8 540.000, consisting of 16
electric
four
sleeping
gate
locomotive
and
an
units;
aggre¬
1,500 freight train carsj
consisting of 650 gondola cars, 550
hopper
cars
and 300 box
cars.
to
an
and trucks in the United States
units
in
made
ances
and Canada
and
-'
77
a
week, ago
and
the 46 in the
concentrated
same
week
among
last. year.
Retailing accounted for most of the week's rise in mortality,
with 50 casualties against. 37 in the preceding week and 24 a
year
ago.
prices
w?t
Sandwich spreads, soft
a year ago.
of the like week
a
year ago.
Department store sales on a country-wide basis, as taken from
the Federal Reserve Board's index for the week ended June 21, 1948,
failures
Totaling 89, they outnumbered
was
high
1*';
in
While buyer attendance at wholesale markets increased slightly
during the week, total wholesale volume remained steady at a high
level. The dollar volume of orders was moderately above the level
increased by 21% from the like period of last year. This compared
an increase of 1%
in the preceding week. For the four weeks
with
ended June
week
moderately from the very
a year ago by the fol¬
lowing percentages: New England iind; Pacific Coast, 7 to-II;
East, 12 to 16; South and Middle West, 9 to 13; Northwest, 14 to
18, and Southwest, 13 to 17.
1p -VJ
by 7%.
or more.
most
Regional estimates exceeded those of
on
Concerns failing were almost twice as numerous
corresponding week of 1947 when 60 occurred and exceeded
the 14 failing in 1946 by a heavier margin. Despite the
sharp increase,
casualties continued'to be less than half as high as in prewar
years.
increase this
were
of household appli¬
high levels of recent weeks with ventilators,
conditioning equipment selling well. Interest in garden
lawn furniture increased slightly.
Paint, hardware and
corresponding week
-
the
articles
building supply volume continued to compare favorably with a year
ago.
The demand for used automobiles and auto accessories also
remained heavy.
Retail volume for the country in the period ended on Wednesday
of last week was estimated to be from 10 to 14% above that of the
the United States and 3,615 cars and 2,355 trucks made in
of
The
continued at the
.
19, 1948, sales increased by 8% and for the year to date
'
.
V"
Retail
verse
-
in New York City
trade
effect
v~
.
the
All
attention.
fans and air
from
involving liabilities of $5,000
increased
reduction
No noticeable
street, Inc. reports.
the
volume
priced
The supply of most foods was adequate.
picnic items sold well.
After the previous week's decline to 100* commercial and indus¬
rose to 111 in the week
ending June 24, Dun & Brad-
v
all lines moderately
food
trial failures
in
considerable
The demand for nationally-known brands
BUSINESS FAILURES RISE IN WEEK
as
received
drinks and other
Friday because of parts shortages also contributed to the decline in
last week's output.
Output in the similar period a year ago was 103,203 units and, in
the like week' cf 1941, it was 127,926 units.
' '
This week's output consisted of 64,472 cars and 22,848 trucks
Canada.
also
reported from any
area and any resistance to high prices on the part of the con¬
sumer appeared to be sporadic and for the most part ineffective.
in¬
Ford assembly line at the Rouge plant
hats
summer
Retail
109,259 (revised) units the previous
week, according to "Ward's Automotive Reports."
Chiefly responsible for the drop from the week before was the
closing of General Motors' outstate assembly plants. Their suspension
of operations more than offset the reopening of the
company's Michi¬
gan plants and/paused a net decline of 22,000 units in output of the
Tlie closing of the
and
level of the previous week.
tools
cars
was
In nearly
popular.
above the corresponding week in 1947,
or 5:6% above the same week in 1946.
93,290
,
,,
frequently requested.
cars or 0.6%
Production-, of
declined
of
cars
slacks
•
below the preceding week, but
„
Father's
demand for women's summer street dresses, beachwear and lingerie
continued to be heavy. Formal, graduation and wedding gowns were
AUTO OUTPUT SHARPLY LOWER FOR WEEK DUE TO
ASSEMBLY PLANT CLOSINGS
on
The net proceeds, together with
Diesel
and
.02%
or
for
Interest in men's apparel centered on shirts, neckties, handker¬
chiefs, hose and other items suitable for gifts. Men's sport shirts,
Loadings for the week ended June 19, 1948, totaled 906,774 cars,
according to the Association of American Railroads.
This was a
cars
gifts
in the similar week in 1947.
CAR LOADINGS. DECLINE MODESTLY IN WEEK
^
group
;
prewar year.
ended June 28, 1947, and was
1,124,018,000 kwh. in excess of the
output reported for the corresponding period two years ago;
174
of
moderately above that of the previous period and
year ago, according to Dun &
Bradstreet; Inc., in its current review of trade. Collections in, most
sections of the country were prompt although slightly slower than,
kwh., according to the Edison Electric Institute.
This was an increase
of 97,443,000 kwh. over the output in the
preceding week, and was
the highest production reported since that for the week ended March
13, 1948, when 5,284,641,000 kwh. were turned out.
It was also 581,950,000 kwh., or 12.4%, higher than the figure reported for the week
5,478
48,351 cars
MAINTAINED AT HIGH
well above the corresponding week a
The amount of electrical energy distributed by the electric light
and power industry for the week ended June 26 was
5,256,698,000
of
purchases
totaled 6,500 bales in
bales a week earlier.
Day boosted retail
volume during the first half of last week. Added to this during the
week there was a general overall increase in sales of seasonal goods
except in a few areas subject to poor weather. Total dollar volume
a
PREVIOUS WEEK
crease Of
•* '
Reported sales in? the ten spot markets amounted to 48,200 bales
the week, against 40,200 bales a week previous and 31,700 a year
LEVEL FOR WEEK AND YEAR
ELECTRIC OUTPUT CLOSE TO 100,000,000 KWH. ABOVE
decrease
generally dull with mills taking only
RETAIL AND WHOLESALE TRADE
Chevrolet division.
Offers Gulf, Mobile «
Ohio RG. Cellat. 3%
i:
1940, the highest
was
period.
ago; Sales registered under the export program
the week ended June 11, compared with 57,400
ingots and castings as against 1,734,000 tons last week,
1,730,000 tons a month ago,. 1,259,900 tons, or 72.0% of the old
capacity one year ago and 1,281,210 tons for the average week in
in
heavier offerings met with
•
a narrow range during the
visible in the closing sessions
for
steel
X think that now is a good time
yfor. us to become highly, selective
V
\
.
•
This week's operating rate is equivalent to 1,716^000 tons of
bad.
as
^
Demand for cotton
reachnigy
decrease
weaker tone at the close
a
small quantities for immediate needs.
year;
1948,
\
Some improvement in tone
due to Congressional action restor¬
ing foreign aid cuts, the approval of the $150,000,000 revolving fund
providing for shipments of cotton to occupation areas and the adop¬
tion of a farm bill extending 90% of parity loans on major crops
through 1949.
96%.
was
for
penalities
for
■
showed some improvement, although sales
of small lots for nearby shipment. Butter prices
ing in
few million tons,
a
'r
•
Sheep and lamb prices were lower, but cattle prices remained
steady and firm,
'
r
*
Activity in domestic cotton markets remained relatively quiet
last week. Closing prices were slightly under a week ago after mov¬
The American Iron and; Steel Institute Announced on Monday
of this week the operating rate of steel companies having 94% of
the steel-making capacity of the industry will be 95.2% of ca¬
-business of taking risks—of reap¬
ing rewards for good judgment
dnd
by
good buying prompted by high
demand
ment.
f.o.b. mill system of selling.
year may surpass,
on
.
In livestock markets, hog receipts again failed to meet the
•heavy demand and prices continued their sharp upward move¬
y
opinion the picnic is just |
In my
developed
was
industry this
-
slight demand.
4
that the steel
the
sharply
market.
standstill in the week.
a
consisted mostly
The settlement of the main issues of the coal controversy means
.
cash
of
than those prevailing ill
'<
Domestic
About
an
the
remained at
f.o.b. mill system in steel sales.
an
with prices averaging higher
Offerings continued light and cash prices moved ahead as ship¬
ping demand showed steady improvement. Some easiness developed
in late dealings as much needed rains fell in parts of the Midwest.
Wheat prices turned upward after early easiness, aided by strength
In corn and absence of. any material hedging pressure, despite the
expanding movement of new winter wheat in the Southwest. General
crop conditions remained favorable with rapid progress in wheat
harvesting reported in Texas and Oklahoma. Export flour business
and how much
are,
——but steel people say the result will be much more far
^period of almost riskless banking.
[We have had a picnic in which we
;dbout
r;:
An f.o.b. mill system will mean one of the biggest changes in
steel marketing practices since Pittsburgh Plus went out in 1924
charged off in the
has
It
;■
old
on
costs
After steel
leaders
inatory. And 63.5% did not favor
of inflation have,floated many an
old wreck, thus enabling us to
:
year ago.
strong and active towards the close
were
Corn futures advanced
8%, of them! told "The Iron Age" that the elimination of
the present way of selling steel would mean they would have to move
their plant. Moreover, 68.4% said the basing point was not discrim¬
During this period the rising tides
.enjoy large recoveries
will be
*
part.
on our
Steel
follow.
deposits have expanded very
rapidly due to deficit financing
our
rather than any
new coal
markets
premiums in
the commission does not want a complete elimination ofj present
selling practices. But sometime after July 9, when the cement indus¬
try goes to an f.o.b. mill system the steel industry is expected to
in which it has been
years
steel wages will go up, so will steel prices.
Then the customer will
i
pay the freight. This is what the Supreme- Court in effect calls for,
say steelmakers.
And that is what steel companies must do if they
are to obey the law of the land as
they think the Supreme Court has
interpreted it.
4
An industrywide survey among steel users by "The Iron Age"
shows that 70.1% do not favor the elimination of the basing point
system. Arguments from Federal Trade Commission men are that
;
support levels indefinitely is un¬
ever;
It was a good gesture
will not have to take
once
inflation spiral, the trade paper states.
privately feel that they cannot stand by and see
by high prices and high wages. They feel, the
magazine points out, that they did their part and tried to stem the
tide. Now, in fairness to their stockholders and in order to secure
j their investment and provide for new equipment and proper replace¬
ment, prices are going up.
Tne big blocKbuster which is expected to hit steel customers soon
warranted.
1 In
industry for
Grain
their profits eaten up
seem
future, at least, at
present levels.
Any assumption,
however, that the reserve authori¬
ties can or- will, maintain present
v
as
new
a
companies find out what their
-
gov¬
be supported dur¬
will
ernments
that the steel
means
Just
on
steel wages will add to steelmakiug costs, up will go steel prices.
short-
term governments may be allowed
to rise
it
blame for
'J
:
set in.
,
a
the preceding week.
since
are
:
•,;>
20 failures.
Food price movements were irregular in the week. There was
slight downturn in the Dun & Bradstreet wholesale food price
index from $7.18 on June 15, to $7.16 on June 22. Individual priceadvances, although more numerous than the declines, were out¬
weighed by the latter. The current index represents a rise of 14.7%
over tne $6.24 of a
year ago.
many
FOR WEEK AGAINST 72% A YEAR AGO
"
largest number of casualties, 30, appeared in the Pacific
mortality was over three time^ as heavy as a year ago.
No other region had as many as
place
Deliveries
STEEL OPERATIONS SCHEDULED AT
by tax
27
FOOD PRICE INDEX EASES IN LATEST WEEK
merchandise.
seasonal
(27)
States where
5)
reduction,
the governments program of re¬
armament and its European re¬
covery program.
Just how much
has
The
•
out¬
banking is concerned, it is
opinion that:
boom
COMMERCIAL
Outlook
immediate
to
1. The
THE
Number 4712
>
as
last week showed little ad¬
Department store
result of rain and Tiumidity.
a
sales for the period
rose
about 9%.
>
Reserve Board's index, department
store sales in New York City for the weekly period to June 19, 1948,
increased 16% above the same period last year.
No change was
According
recorded in
when
sales
to
the
the
week
showed
June 19, 1948, sales
a
Federal
of June
decrease
12 from
of
8%.
that of the week
For
preceding
the four weeks ended
increased by 7% and for the year to date by 6%.
28
(28):
THE
COMMERCIAL
&
FINANCIAL
Thursday, July 1, 1948
CHRONICLE
attending the Convention, has any information of conse¬
about who is to be selected as the standard bearer
of the party. It is usually drafted by professional politicians
(Continued from first page)
who think they know how to get votes with it. It is written
from the address
by Herbert Hoover, with whom we have
usually in the full knowledge that at least some of the can¬
in years past been
obliged to differ on more than one occa¬
didates, most frequently all of them, are not ready at that
sion, but who as "elder statesman" has, we believe, earned
moment to commit themselves on many of the vital ques¬
the respect and confidence of all
thoughtful men as he was tions of the
day, and in full consciousness of the fact that,
somehow never able to do while in the White House.
delegates to the convention are primarily concerned with
Having delivered himself of these basic and pungent the selection of a candidate for the
Presidency, and that
observations, which should of themselves have given every
they can be counted upon to approve the platform in what¬
delegate at Philadelphia pause, he adds these warning notes: ever form it is
placed before them.
7
'•
"If you produce nothing but improvised platitudes,
In
the present instance the nominee, Governor
you will give no hope.
Dewey, has — again as is the invariable custom — en¬
"If you produce no leadership here, no virile fighter
dorsed the platform without reservation, at the same
for the right, you will have done nothing of historic
time that he had high praise for it. We do not profess
significance..
>;-v
,7777^7
to know what goes on in the mind of the Governor, but
J'"If you follow the counsel of those who believe that
on the record one can
scarcely take such an endorsement
j
politics is only a game to be played for personal advan¬
as meaning very much.
For light upon what Governor
tage, you are wasting your time and effort,
Dewey as President would do and what a Republican
;
i
"If you will calculate what will please this or that '
Congress under his leadership would do, one must of
little segment of our population, and satisfy this or that
necessity await further developments, in the hope, but
not in the certainty, that in the months to come prior to
pressure group or sectional interest, you will be betray7
the time when the voting has to occur a reasonable basis
ing your opportunity, and tragically missing the call of
for selection among the candidates will emerge.
your time.
7
As We See
It
777
quence
f
.
-
"If you
temporize with collectivism
'7-;' ulate its growth and the defeat of free
One
i
ical
battle
,
to
safeguard
our
nation
and
civilization
-
,
7
leadership with full recognition
that only those can lead you who believe in your ideals,
who seek not only victory but the opportunity to serve
in the fight, then you will issue from this hall a clarion
call, in as pure a note, in as full a tone as that call to
arms which
your political ancestors issued at Ripon,
Wisconsin, when this party was born to make all men
your
nor."
;
time, ho
question
us
"wisdom of these words.
to
see
At the
—
same
one can
The country will await the unfolding of the coming
campaigns with extraordinary interest, we think.
pede and not enhance progress.
oil is the most impor¬
search for
element
tant
>«
active
and
(1) Continuous
and
maintaining
in
increasing the supply of oil: Suc¬
the
only be
of vigorous competitive
this
in
cess
requires
sector
efforts that
multiple
the result
can
activities conducted by many per¬
of strong in¬
under the urge
sons
centives. 7 Other procedures, of¬
ten tried in other countries, have
ineffectual. 7
proven
(2) The production of oil must
be conducted according to mod¬
methods
and
continuously im¬
engineering
ern
to
gain
^optimum effici¬
in
resource
development:
conservation statutes of the
The
coordinated
states,
oil-producing
by the Interstate Oil Compact to
Conserve
Oil
and
Gas,
have
helpful instrumentality
a
proven
end, assuring the minimum
of decentralized regulation with¬
to this
impairment of competition.
technological progressiveness
the industry is a major creative
out
The
of
and its pattern
force in this field
of
operations should be preserved.
(3) Our petroleum resources are
exact physical quantities but
are materials subject to effective
not
innumerable way3
powerful
ill
expansion
.
of productive
expansion
capacity to a level containing a
margin of safety to meet all con¬
tingencies, the following guiding
principles are inescapable. Any
policy which does not recognize
all of them is faulty and will im¬
under the influence of a
Did the
Republican party meet;
meeting, these challenges? The public must await
It did not get one, or
certainly not
from the convention last week.
Platform
a
Oil and National
or
(Continued from
an
convincing
strain
on
The platform adopted is as meaningless as such docu¬
nearly always are. Its "declaration of principles"
could mean almost
anything or nothing — except that no
interpretation of it could possibly cleanse it of its taint of
*:.
The claims made for the
Republican
majority in Congress are at many points obviously "phoney."
The same is to be said of the "promises" — if such
they may
be termed
for the future. At one point it boasts that the
Republican Congress during the past two years has enacted
a
long-range farm program; at another it solemnly declares
that "there must be a
long-term program in the interest of
agriculture and the consumer which should include: an
accelerated program of sounder soil conservation; effective
—
local
spot
rounded
system
short¬
be
uses
and
other
of
existing crops, and control of
animal diseases and crop
pests;
hoof-and-mouth
support of the
principal of bona fide farmer-owned and farmer-operated
cooperatives and sound rural electrification."
This and much
throughout
more
this
like it is to be found here and
extraordinary
document. Yet
throughout it also are sentences and passages which
profess to honor and which promise to promote tradi¬
tional American free
enterprise, individual initiative,
1 • and rigorous self-reliance! But nothing in particular is
to be gained by laboring the
point. The platform is a
hodge-podge, but platforms usually are. It definitely
is tinged with New Dealism, but there never has been
any good reason to suppose that it would not be.
Not
since Mr. Hoover went down in defeat in 1932 has
platform by
any
of the parties failed to
pay
,
a
homage to
the Marxisms of Franklin Roosevelt.
before the writers of
it,; the Convention itself
one
fear that oil will not
meet
This
of demand,
the
while serying to cre¬
ate most of the
build
two
inextricably
are
joined
together.
capital needed to
additional productive;Ca-
large
one
should be
upon
guard not id act
cyclical
and
seasonal
a
phenomenon
of its
being
on
the
on
a
deal
with
other.
assumption
the
For
without
one
purposes
of
the
national
security, it is not sufficient .to con¬
template the military use of oil
permanent condi¬
tion.
alone. The effectuation of national
A
hasty view of the current oil
is likely to
raise the
defense
situation
oil
and
on
this idea is fortified by the appar¬
to
involves
in
thought of permanent scarcity and
ternal
are
for
use
tanks
no
of
and
good
planes
job, and to provide
for mechanized farm¬
ing. Proposals; therefore, to base
an oil policy upon the objectives
power
of estimated
are
likely,
ing effects
crippled by action ex¬
to them.
oil
the
worker to his
the
military needs alone
through their retard¬
upon
normal industrial
Wrong measures
operations and expansion, to cre¬
imposed at this time can greatly ate conditions harmful both to na¬
prolong or even make permanent tional security and the economy iii
a
condition of shortage.
Policy, general, and therefore to defeat
therefore, should not be governed the very ends to which the rec¬
by the current episode but attuned ommendations are directed.
to the fundamental probabilities.
Objectives of a National Oil
National
Welfare
and
National
Policy
Security
To
The
petroleum ■ industry
has
noteworthy and widely
recognized contribution to the na¬
tional welfare.
So much so, in¬
deed, that any threats to a con¬
made
keen
the
of
this
process
a
national oil
(1) It should promote
tional welfare;
our
oil.
World War I, the 'Allies float¬
to
victory on a sea of oil,"
both here and
(4) It
tions
and in World War
II, the "United
Nations flew to victory on the
wings of petroleum." Today there
favorable
maintain
to
is
serves
ing of oil Upon
our
se-
curity^and
this
subject; is sur¬
quickly
would
industry
the
condi¬
entry
of
persons into the industry;
(5) It should be consistent with
accepted political institutions;
a
decline. Unregulated
(5) Competition in all phases of
the industry is the best assurance
of
efficiency
and
\
.
.> (6) It . .should ^contribute
world peacQ,-7
-.'."li..
to
This
progress:
force is automatic in its effect and
arises out of the
tivities
that
diversity of
characterize
ac¬
ef¬
the
fort. Competition operates to keep
prices functional and to maintain
progress and growth. Price is the
most efficient regulator and allo¬
cator
and
left
be
should
perform its
proper
free
to
functions.
7
(6) Central planning in the pro¬
duction
of
oil
has
yielded
poor
results wherever tried: Oil activi-*
ties conducted by centralized gov¬
ernments illustrate the results'of
this method. There is
a high de¬
of correlation between politi¬
cal climate
and
oil production.
Government monopolies have in¬
variably resulted in high prices
and subnormal consumption/7
gree
A Design For A National
Judged
States has been very
oil.
;•
by results,
Oil
;;T;
T
I
the United
successful in
The achievements
are
visible
hand:
The highest percapita consumption in the world;
on
a
every
body
none; an
of technology second to
unbroken record of out¬
standing
; j>.
prices and
capital markets freely functioning
are the best guarantees of
suffi¬
cient capital formation.
for the
and
exhaust
its available resources and go into
new
tH£!bear-<-
natibnHl
facilities and re¬
of the
integral part
an
productive process: Without it, the
our
is widespread interest in
improvement,
replacement,
and expansion of
our
abroad;
should
as
(4) A financial system provid¬
Policy
7
•
(3) It should support and en¬
courage our established industries
upon
requires imagination
knowledge.
as
to
force,
ing adequate capital formation for
na¬
national security;
public
apprehension.
At
time, both world wars
important
creative
this
;
:
(2) It should contribute to
arouse
same
highly dependent
effective,
policy should have the following
objectives:
a
tinuation
be
well
is
It
resource.
maximize
transportation,
It does
if there is inadequate oil to oper¬
ate, industry,
to transport the
supply, unless the
economic forces making for ex¬
pansion
also
industry,
the farm.
have
the
the
up
The military and civilian de¬
pacity. Thus, in time, the existing mands for oil are so- closely com¬
bottlenecks .will %be broken and' mingled that it is impossible to
•
or. any
a
to
which
ed
platforms do not usually mean very much in actual
practice — except, possibly, for the purpose of catching
votes.
Certainly, in recent years they have meant little
enough. They are regularly written, as was this one, long
by
by failing to evaluate
the multiplier. To a
degree technology
deter¬
the effective magnitude of
technology,
mines
In
But
7)
able
barrels
the
policy
static inventories of
in sight will prove
upon
erroneous
be
were
As Usual
Policy
based
condition, however, fully in a third emergency. Hence
expected to be temporary, there is a tendency to think of
because price is operating to ex¬ oil and national security as a thing
pand supply and retard further apart from oil and national wel¬
But as a matter of fact,
growth of the marginal elements fare.
or
protection of reasonable market prices through flexible sup¬ ently Increased difficulty of; find¬
ing oil in the United States.
Yet
port prices, commodity loans, marketing agreements, to¬ what is really happening is a
gether with such other means as may be necessary, .and transition from a very low costlevel to a higher one, and this shift
the development of sound farm credit;
encouragement of
does not denote a permanent con¬
family-size farms; intensified research to discover new crops, dition of short
new
page
ti
requirements
ages.
Meaningless
the distribution
resulting in
can
ments
essential New Dealism.
:
Any
technology:
namely,
how any
answer.
7
"shrewd politician"
a
successfully deny that he is deeply tinged
with New Deal notions, even if many would prefer to call
them by some other name.
;
intelligent citizen
good of his country at heart can doubt the solid
with the
.there
the
77/"''
paramount need
In view of the
for
National
multiplying and generative force;
It is difficult for
one,
He is without any
attribute of real value in the White House.
an
free."
is it
Guiding Principles for a
Oil Policy
ency
meanwhile
may
erally speaking, selected advisers more intelligent, more
realistic, and more capable than many that have of late
years been called to Washington.
He is fairly generally
regarded as having been what is known as a "good Gover¬
foundations of faith, of morals, and of right thinking.
choose
observations
be made.
Governor Dewey as administrative head of New York State
has proved himself to be an able executive. He has,
gen¬
which, under God, have brought us to a life of liberty,
then you will be guided in every
step to restore the
"If you
two
or
overlooked or
one
no
A balanced and inte¬
grated approach is required.
i
proved
Light to Come?
men.
"If, on the other hand, as a mature and inspired
political party, you face the truth that we are in a crit-
;
and
impeded.
these techniques
will stim-
you
All these aims should be recon¬
ciled
growth; a
gressiveness which
future;
ture effective
an
dynamic ag¬
augurs
well
industrial struc¬
in practice;
servation
a
con¬
system
based
upon
decentralized^ regulation by- the
jvtsnvQ trt**
Volume
COMMERCIAL
THE
4712
Number
168
FINANCIAL
CHRONICLE
(29)
i
oil-producing states; an active de¬
velopment of foreign oil resources
by American nationals; a social
consciousness worthy of wide at¬
tention; and an attitude of co¬
operation between; industry and
government which reached high
fruition
during the war in the
form
of a
government-industry
team, the Petroleum Administra¬
tion
,
for
War
Petroleum
the
and
Industry War Council.
Aa
The American Petroleum Indus¬
try is
of
successful working model
a
enterprise system; and the
our
contributions of the United States
Government to the outcome must
balance
on
colade
of
bear
be
accorded
praise, for
witness
though
been
the
to
the
even
have
in
never
terms
enunciated
ac¬
results
success
efforts
formalized
clearly
an
of
a
oil
policy.
for criticism
a
There may be room
of both government and industry,
but
assuredly
such
derogation
earnings
accounting procedures, these
earnings constitute the principal
source of the capital required for
replacement
and
expansion of
productive facilities. Even so, the
industry in 1948 will find its re¬
earnings (after paying only
one-third out as dividends) plus
its charges for depletion and de¬
preciation falling short of its fis¬
cal needs, so that it will have to
tained
raise
We already have a national oil
funds
substantial
Thus ,.price
markets.
and would
interfere with the al¬
location function of price essential
to a free market.
»
*
(3) Peace-time controls should
be
avoided
since
for the
their
oil industry,
retarding
effect
a
toward
American
capital:
attitude
enterprise
Nationalistic
and
in
trends
of the countries south of the
many
Rio
favorable
more
Grande are interfering with
discovery and development of
the
vast
potential
interests of
oil
The
resources.
the
industry and the
are clearly those
advantage, for oil is a
local inhabitants
of mutual
great
creator
of
wealth
in
all
in which it is produced.,
areas
the
from
is
playing an essential role in capi¬
tal formation, and any interfer¬
ence with it will impair the ability
of the
industry to outpace de¬
mand. Likewise, the imposition of
special taxes. designed to influ¬
ence the end use of particular oil
products would be an unjust dis¬
crimination
against 4 .consumers
capital
must apply to
details and not to
the grand' total* ': "7". a \
calculated by ortho¬
as
dox
about
upon
(9) In the interest of accelerat¬
t
ing domestic oil development, the
Federal claim to title covering the
offshore lands bordering the oil-
producing states ?hould be aban¬
doned: This could be accomplished
only by the Congress through spe¬
cial legislation, such as that now
pending, since the Supreme Court
has
declared
that
government has
the
.
"paramount in¬
a
areas
[undoubtedly hold billions of bar¬
rels
of
oil
and
undertakings to this end: It should
ital required for expansion.
Such
recognized that the technology; now qxists.
'
Given the operation of a free
shale, is not
yet perfected on a commercial economy in the United States
and
scale and that a significant sup¬ abstention
by
our
government
ply of oil from these sources is from measures
interfering with
impossible in any short period of the economic laws
underlying its
time.
Recent proposals embody¬
functioning, I see no reason why
ing
governmental
construction our domestic oil
economy should
and subsidies seem premature and not continue to
make the optimum,
in some cases irrational.
Industry economic and social gains inher-,
is actively engaged in bringing to ent in the
resource.
If, in addi¬
a commercial
stage the techniques tion, by diplomatic measures our
for coal conversion, while plants
government succeeds in reducing
are already under installation for
the political risks of oil
operations
be
,
at least for coal and
the manufacture of
oil,
constitute-one" of
the most practical and immediate
sources of new domestic oil
sup¬
gasoline, diesel
and
chemicals
The
government might
gas.
confine
its
from
efforts
to
natural
well
basic
de¬
velopmental research and to the
provision of accelerated amortiza¬
tion
for
Federal
terest" in these lands. These
commercial
installations.
Caution should be used in
(15)
implementing
suggestions
;
stockpiling oil
although
the
on a
massive scale,
armed
■,
for
services
i
should assuredly be prepared with
adequate inventories to meet im¬
mediate
needs:
The
stockpiling
policy even if ill-defined. Our the productive mechanism would limited
idea is very appealing on first
degree
under
Federal
problem is more to conserve and in practice outweigh such advan¬
ownership, but not so effectively, glance, but, aside from great cost¬
strengthen what we have
tjian tages as might be claimed for completely, or quickly as under liness, it would be impossible to
to experiment with new form? at them: No shortness of
put it into substantial effect for
supply is state authority.
odds with our traditions of free¬ in
a considerable period of
prospect in sufficient degree
time, be¬
(10) The details of the special
dom. Our problems are great but to warrant such drastic action.
cause of a lack of margin between
tax provisions applicable to oil
not novelr or unmanageable, The
(4) Our national security in oil have become an integral part of supply and demand.' It would be
same
ones
were
present
after can most
more practicable to stockpile
coal,
expeditiously be en¬ the
operating
mechanism
and
.World War I, but with the differ* hanced
by, the active development should not be disturbed: The Rev¬ which not only could release oil
ence that foreign oil has assumed
in an emergency.but would also
of oil in
foreign countries by enue Department is
contemplat¬ serve to
a more important role. Apprehen¬
contribute to the solution
American nationals, the cultiva¬
ing new regulations requiring the
sions of permanent shortages are
of the instability of the coal sup¬
tion of friendly relations with
capitalization
of
all
geological
scarcely justifiable in the light of such
In * the actual event of an
countries, and the command and geophysical expenditures now ply.
Unlimited hydrocarbon resources
emergency, there would be time
of the sea lanes to their shores in written
off
as
expenses.
This to
in
the
United
States
and
a
create stockpiles of oil by im¬
event of emergency: The promo¬
change would constitute a tax on
plethora of low-cost petroleum re* tion of these conditions
mediate rationing of civilian con¬
constitutes
exploration, resulting in the find¬
serves abroad.
This is especially
sumption in advance of the full
he quickest means to the assur¬
ing of less oil, and would handi¬
true in view of American enter¬
incidence, of war demands. The
ance of ample oil
supplies for the cap in particular the small wild¬
prise, its incomparable body of
expansion of naval reserves can
future.
catter whose efforts are essen¬
technology, its genius for capital
have
only
slight
effect
upon
(5) The activities of American tial to maximize the effectiveness
formation, and its vigor in pro¬
emergency
requirements,
while
nationals in the development of of search.
Proposals to alter the
moting
new
approaches
to
its
the locking up of proven com¬
oil in the Middle East should be principles of depletion are
also
problems. In addition, we have a
mercial reserves would have5 a
despite the universal
democratic form of government supported by all reasonable means recurrent,
disruptive influence upon the op¬
consonant
with peaceful
objec¬ use of the depletion allowance as
under
which, in contrast with
erations of the industry and do
a source of
qapital for further ex¬
other types of political organiza¬ tives: This, source^ qf; expanding
more harm than good,.
j
oil production should be 'fecOg^ ploration.!^^ downward revision
tion, oil exploration and develop¬
(16)-The authority: of the Fed¬
nized as essential to the recon¬ in this allowance would be a re¬
ply. They
be developed to
can
a
ment are enabled to flourish. The
need
is
for reaffirmation
rather
than reconstruction.
The
working out of an effective
national oil policy, therefore, is a
simple procedure and does not re¬
quire further Federal laws
or
ad¬
ministrative
-
machinery.
It in¬
volves merely a continuation of
an efficient and enlightened pri¬
vate industry, support by the
government of .our system of in¬
dividual enterprise with avoidance
of
harmful to its func¬
measures
tioning,
and friendly diplomatic
by
the
government
measures
directed toward the reduction of
political risk surrounding oil
erations abroad. Thus
national
series
a
proaches
a
op¬
competent
oil policy boils down *to
of
attitudes
and
ap¬
on
the part of both gov*
•ernment and
industry, which may
•briefly be outlined as follows:
(1)
The regulation of oil and
production should be left to
gas
"the established machinery of the
•oil - producing
states
as
coor¬
dinated
by
the Interstate
Oil
"Compact to Conserve Oil and Gas:
This
system has worked
well in
practice, is steadily improving and
the advantages of supply¬
ing the degree of regulation de¬
sirable for effectuating conserva¬
tion without preating the evils of
'Offers
^centralization
•
and
regimentation
impairing the effectiveness of
♦competition. Full support should
or
tbe accorded this complex of statedirected activities and the Federal
'
.government
:measures
-successful
should
refrain from
interfering with / this
handling of the prob¬
(2) The functional aspect of price
causing
expansion
and
con¬
traction should be recognized, and
interference with this mainspring
of action should not be sanctioned
Although oil prices have risen
substantially since the war-end
the change has followed a long
period of subnormal prices anc
serves
levels
,
<of
to reestablish
and
to
more
reflect
maintenance
"While
the European Recovery Program.
This oil is not primarily needed
tarding influence
exploration
and production, unless offset by
a compensating rise in
prices, in
which event the effects would be
and
norma
rising costs
expansion
the price structure is
producing what
appear to
now
be large
on
clarified
so
thereby
of
the
to
United
States.
Develop¬
or stop
the Middle East oil < production
will adversely affect the economic
growth of the entire world and
provement
place
moved in the granting of leases.
ments
which
will retard
,
oil
excessive burden
an
of
resources
Hemisphere.
The
this
of
the
con¬
problem
and
peace
(6)
economic
ad¬
end that American
capital, enter¬
prise, and technology will be en¬
to
couraged.
develop
Once
oil
in
that
major oil-pro¬
ducing area and a prime factor in
oiling World War I, this country,
immediately south of our border,
contains
great oil potentialities
which
are
now
a
fallow because of
political conditions. Beyond ques¬
tion a large oil ..production could
be built up there,, given an encouraging: setting for the effort.
(7) Emphasis should be placed
upon
the maintenance of friendly
relations
with
Venezuela, which
greatest
early expansion of oil production
offers the prospects of the
(12)
any
Monopolistic
practices, distorted views
tegration,
such.
or
bias
country
long provided conditions fav¬
oil
to
developments >' by
American enterprise,; with the re¬
sult that it is the second largest
oil producer in the world.
Its oil
developments have been of great
benefit to
this nation
and to Eu¬
and the United States.
maximum
For
mutual
continuation of
a
advantage the
political climate
receptive
of
to further investments
capital is highly desirable.
<•
'•(8) Throughout Latin America
we
should
endeavor' to
bring
on
against size
in¬
robust competition.
The govern¬
ment should desist from
retarding
the
development of unit plans in
production
by
removing
the
these
in
and
states:
The
1938
;
of
double
taxation
developments
from
desirable
so
the interests of conservation.,
(13) Recognition should be
the production
throughout the
gas
Natural
Gas
Act
of
designed to regulate
the rates charged by gas compa¬
was
nies for the transmission of natu¬
ral
interstate commerce,
but through la series of court de¬
cisions, interpretations of the Act
in
gas
have
led
to
wider
a
and
more
pervasive application of authority
ac
of production itself.
Spe¬
legislation by the Congress,
cial
such
that embodied in the Riz-
as
ley-Moore
Bill,
is
needed
to
clarify the Act and. safeguard the
system of oil and gas exploration
and production which has yielded
such good results.
The best way of promoting our
national welfare and national se¬
curity in oil is through private
enterprise.
This is the only sys¬
tem
which has succeeded
covering
sources
in
dis¬
secondary
tion
of
which
as
imports
time
goes
on
rising propor¬
production: Ex¬
a
domestic
cessive
recovery
of
fact, the government
should do everything in its power
to facilitate the operation of this
effective
mechanism
sedu¬
and
today,
could
harm to
the
oil
our
proper
economy
of
charted in advance.
Our
lishment
A:
conducive
by
to
private
the
estab¬
industry
of
world
of
national
our
se¬
'.a.::.-..* ■<€>;■ a ■v1 :»."ki'-V'A-A•'
It is unfortunate that one can¬
not propose a
single and dramatic
approach to the oil problem, but
realism and common sense tell us
that the situation requires a mul¬
tiple and integrated effort. Noth¬
ing could be more dangerous than
to
expect
answer
or
find
to
seek to
one-shot
a
implement
one.
Halsey, Stuart & Co.
Offers 3%% Bonds ;
Of Louisv. & Nash. RR.
Halsey,
Stuart
&
Co.
Inc.
and
associated underwriters today are
offering, subject to authorization:
of the Interstate Commerce Com¬
mission, $30,000,000
of
Louisville
& Nashville RR. Co. first and
re¬
funding mortgage 3%%
bonds,
series H, due April 1, 2003, at 100
and
accrued
award
won
interest.
of the
petitive sale
The
group
bonds at
com¬
its bid of 98.26901.
on
The net proceeds will be used
for I capital
expenditures to be
made
in
the near
future.
The
..
company has contracted for addi¬
tional equipment,
deliyered or te
be delivered in 1948 and
1949, of
the
estimated cost of
$28,648,000$;
expenditures for improvements to
roadway are estimated at $7,850,000 for. 1948, and at
$6,250,000 for
1949; and improvements to equip¬
are
estimated at $1,350,000
for 1948 and at $1,480,000 for 1949.
ment
The
at
bonds
prices
will
be
scaled
redeemable-
from
105%
tc
100%, and through operation of
sinking fund, beginning in
April, 1950, at prices ranging from
102% to 100%.
■
the
New York Stock Exchange
Weekly Firm Changes K *
The New York Stock
Exchange
following firm
changes: Walter W. Crawford re¬
has announced the
tired
best
therefore, is to
maintain a dynamic oil industry
competent to meet the problems
as
they arise and able to create
new approaches to new challenges
—an industry fortified with skill,
procedure,
experience,
and likewise
for
from
Borland &
Acheson
30.
partnership
in
Betts,
Co., June 30. A. Gleii
withdrew from
partner¬
Lawrence K. Rachlin retired
from
ler
partnership in Stanley Hel¬
Co. May 31.
Interest of
&
the
late
Lewis
B.
Hall,
Jr.
ill
Dobbs & Co. ceased May 29.
With Saunders Stiver Co.
A
(Special
and
'
aggressiveness
equipped with
advancing
to
The
Whitwell
with
technology
and
forming the vast amounts of cap¬
Chronicle)
has'become
Saunders,
associated
Stiver,
&
Co.,
Building, mem¬
bers of the Cleveland Stock Ex-*
change.
Mr. Whitwell was pre¬
.
Terminal
viously
Tower
with
Livingstone, Wil¬
Finley & Co,
liams & Co. and
Tomlinson With Hirscfo
New
nounce
Co., members of the
Exchange, an¬
Stock
that J.
become
as
&
York
A.
associated
Tomlinson has
with
the
firm
registered representative in
the main office, 25 Broad Street,
New York City.
a
Wm. S. Beeken Co. Adds
.
v
(Special
WEST
means
Financial
CLEVELAND, O.—Clarence W.
~
climate
be
may
to
curity.;:.
Hirsch
rately
(14). The ultimate development
of synthetic oil can best be pro¬
moted, by creating an economic
contribution
assurance
!,;
our
could disrupt the development of
these more expensive sources at
accordingly,
should be attuned to maintaining
a
healthy domestic industry and
to supplementing, rather than re¬
placing, domestic supplies.
skill,
recovery and world peace.
The
two combined should be the best
problem impossible...
accu¬
s,
leading
a
and render
resolvement
oil future cannot be
t
with
managerial
know-how
immeasurable
do
Our
p o r
capital,
technical
counted upon to continue to make
developing oil re¬
large scale. In recog¬
oil
home., Im
low-cost
and
and
on a
nition of this
lously avoid any steps restrictive
tween
oil
produced from large, of the
initiatives
and
energies
flush fields and that derived from that motivate it.
Improvised and
underwater deposits, deep hori¬ hastily conceived measures, such
zons, synthetic processes, stripper as many exposed to the public eye
and
their
ship in Lazard Freres & Co. June
I. Conclusions
corded the wide cost disparity be¬
wells,
abroad, American nationals
which threatens to extend to the
process
as
competitive sources of energy are
positive proofs of the existence of
threats
that it cannot assume
regulate
oil
The
vigor of demand and
outdistancing by oil of the
the
should constitute
rope
of
ductive processes by unnecessary
attacks based upon strained in¬
projects,
orable
practices
kind should be prevented, but
in the entire world today outside
has
has
terpretations of established trade
Efforts should be made to
to terms with Mexico to the
country:
this- respect
integral in
policing this field the govern¬
and. their ment should not
impede the pro¬
vancement.
come
in
been recently witnessed, but it is
desirable that bottlenecks be re¬
are an
prompt resolution is essential to
world
ing them from red tape: Some im¬
Western
disturbed
ditions in Palestine
part
the
on
modernizing procedures and free¬
■
the power to control the produc¬
tion of gas at the wellhead and
in
States, but its entry highly inflationary and very cost¬
large measure into oil trade ly to the economy.
will replace supplies now going
(11) The discovery and devel¬
from the Western Hemisphere. to opment of oil on the Federal
pub¬
Europe and make them available lic lands should be facilitated by
>
eral Power Commission should be
in the United
of the Middle East: This
lem:
In
struction of Europe and Asia, and
to the successful carrying out of
29
to
The
Financial
PALM
Chronicle)
BEACH, FLA
Earl A. Nelson has been added to
the staff of Wm. S. Beeken Co.,
Guaranty Building.
•
;
30
tion, therefore, is to let-the
thing ride, y To make money
in the stock market, one has
to take profits.
The hardest
thing to do is to sell when
Tomorrow's
Markets
Walter
everybody is bullish; But if
Wliyte
don't want your paper
profits to dissolve you have to
sometimes act against every
impulse.
you
Says—
=
i
COMMERCIAL
THE
(30)
By WALTER WHYTE=
Persistence
*
$
dullness
of
*
in either di
if it breaks out
FINANCIAL
CHRONICLE
Credit Policy—Constructive or Catastrophic
(Continued from page 2)
factors also affect
restrict the retail volume of many
credit
consumer
of
case
consumer
credit
we
have
little
focuses
volume
and
tion.^ But by
seems as
;
atten¬
as
shortage of credit, as
the very real threat of the
up
to the hilt. It is almost
as
hard
was
in
yield, safer busi¬
and wait..
The list
tive
nothing but following stocks: Anaconda
flies buzzing arburid it.
at 321/£, now about 40, stop
*
*
*
at 37. Avco at 41/£, now about
6V2.
No
stop.
Just hold.
y V All this makes a pretty dull
picture to wax enthusiastic
about. If I could get out of
this lethargy I might say a
couple of words about infla¬
tion and what an awful thing
it is and that the buying of
stocks is one way to beat it.
But actually I doubt if infla; tion
hedgers can find the pro¬
tection they seek in the in-!
discriminate buying of com-;
Bethlehem Steel
at
31,
supplied
by
finance
companies is having a very real
effect
ness
.
Lockheed
about
United
about
at
15,
now
22j/2, stop at 20, and
Aircraft at 15, now
29stop at 2IV2.
*
*
*
businesses.
some
failures in
Consumer
now
36. Cater
pillar (see above). Dresser at
22, now about 293£, stop at
on
It
is
contracting sales in many lines,
causing operating losses and busi¬
about 37 ^, stop at
27.
terms:
consists of the normally
now
siesta < with
its
and more conserva¬
This lack of credit
ness, on more
#
*
it
large
if the market
on
goods
In
the
field
instances.
some
of another advance.
eve
is?
Caterpillar
a
in
case
point., We bought that stock
weeks and. weeks*ago at 55.
We saw it go up to about 68.
failures,
before you
case
you
read this. In that
get out of it.
*
Mqre next Thursday.
—Walter Whyte
retail
Shortage
to
cooperate
restraint
ficult
consumer
goods
are
having their sales restricted be¬
for their
sales.
Dealers in
heavy construction equipment arc
finding their sales most restricted
credit paper.
too
are
Many banks
following the
same
pro¬
cedure.
by adopting credit-
policies find ;it:most dif¬
determine
to
whether
not the credit should be
or
restrained
On
the
or
granted
inflationary.
as
other
hand,
we
Frequently the violation of a
stop price is unattended by
hurrah, and the tempta¬
any
Howard, Labouisse
Consumer goods; Frankly, I think
all of the restraints that
we
have
in this field today are due
to credit shortages rather: than to
patriotic restraints.
seen
I don't
mean
that banks haven't
wanted to cooperate, but by and
large all the conservative policies
selectivity that i$
Admit Westervelt
mitted to gen¬
eral partner¬
short
extension
of
going
on
consumer
credit today
is largely one of i
credit shortage rather than want¬
ing to do a better job for our
country. But even then, \I !don^
a
native
geles, C a 1 i fornia,
was
formerly; as¬
sociated
with
B1 y t h
and
Company,
in
was
New
stationed for
Orleans.
He
some
joined
Howard, Labouisse, Fredrichs and
Company in their Sales Depart¬
ment on February 1, 1947.
Orders Executed on
With A.
M.ladder
& Co.
(Special to The Financial Chronicle)
ST. PETERSBURG, FLA.—Al¬
New York Stock Exchange
New York Curb Exchange (Associate)
San Francisco Stock Exchange
.
.
„
Chicago Hoard of Trade
New York 5, N. Y.
14Wail Street
COrtlandt 7-4150
r
.Teletype NY 1-928
Private Wires to Principal Offices
San Francisco— Santa Barbara
Monterey
—
Oakland
Fresno
—
Sacramento
'
-
Every credit
category,
govern-?;
Second—Business today is gen^f I
erally undercapitalized as a result.
of high - price levels
and poor»
equity capital markets. In an effort to help undercapitalized busi- ;
ness
handle ' an
unprecedented ;
volume, the banks are - simply,;
lending many businesses, particu-.
larly medium and small business,
too; much money; and, as I said
before, I think there is a tendency
lend
to
individuals
^
much.
too
money, In the end' this oyer-exr ^
tension of credit cannot heip but;
hurt the business,
our
the bank, - and £
economy.
r
have
Third—Banks
tion
an
t
to
„
more
difficult times
and I
apologize to Chairman Lacey
Knapp. I would like to
for just one j
and Mr.
The recent Federal Reserve re¬
lease on the increase in' consum ex
-
rates
,
time
ago
that trailer sales
controls
or
other bank credit
con¬
common
bert B. Gilbert is with A. M. Kid¬
der & Co., Florida National Bank
and
contract carriers
companies
were
It will, again, be the case of send¬
seller, which is directly or indi¬
rectly the manufacturer, simply ing out a drummer boy to figh*
because ' these I > same
purchasers the war instead of adopting the
cannot
obtain
c r e
d i t; locally.
really effective
measures
dsk your permission
more -word. 1
*
i
,
A Roman dramatist named Terence
said
in 185 B.C. said:
now
-
"Nothing is
that hath not been said
Nothing could better il¬
lustrate the truth of this observa¬
before."
following
the
than
tion
article
Melvin Bahret Opens Office
EAST ORANGE, N. J.—Melvin
Bahret is engaging in the securi¬
ties business from offices at 665
Park
Avenue.
He
was
formerly
associated with J. Albert Williams
& C
caldron seethes with uncertainty; f
Russia hangs as usual, like a dark ;
cloud upon the horizon of Eurone; v
while :all :the influence; of the -
is sorely tried in
British Empire
copi ng with disturbed
t'Qf our own
see
can
is
the
relations in
troubles
end.
.
no man
And
.
.
yet
very" haste to be rich, wldcb
the
the
occasion
of
this
calamity,
destroy the
moral forces with which we are
to resist and subdue the calamity.?*
The article I have just quoted
also
has
tended
91
anoeared
to
years
Oct.. 1<V
ago.
in "Harpers Weekly," and
renrinted in the June. 193?
issue of the "Readers:Digest/*
1857,
was
Lindgren With
Christopher Co.
(Special
that car
to
The
Chronicle) .!
Financial
KANSAS CITY, MO.—Axel W;
do the job. If we are diverting
Heavy tractors follow in this same
too much steel and other raw ma¬ Lindgren has
become associated
category and the manufacturers
with; B,. C. Christopher & Co^
of
smaller
trucks
are
getting terials into: consumer goods > as
Board of Trade- Building^ memt
ready for the inevitable period of against military needs, then -it is
certainly the wrong way to go bers of the Chicago; Stock Exr
a heavy volume of time sales.
about changing this condition by change. He was formerly with A.
Automobile and appliance fi¬
trying to reduce purchasing oowe^ H. Bennett & Co. and prior therer
nancing has in no way suffered, bv curbing consumer credit.
F to was Kansas City/ Manager for
at least not up to this time, since
this situation exists, then priori¬ Slayfon & Co.; Inc.
;
both finance companies and banks
ties and allocation, even price
consider this, the best paper ob¬
tainable and will throw out all controls, would be far more ef¬
McDonald &
,
.
^
•>
,
Co. Adds
But
Congress has the
order to handle fective.
automobile and appliance habit of ducking the effective bu*
the other paper in
Building. He was previously with their
Herrick; Waddell & Co.
business: It has .affected wholes politically
dangerous tools and
sale lines, particularly the used may well resort to the ineffective
Members
and
foreign policy: >
comes within thi$;
> \
•
«
.
trols, I think. I can definitely soy
largely that there is no danger of our
on a cash basis as far as the seller
getting any of these controls be¬
was concerned.
These purchasers fore the next session of Congress
were
obtaining their credit lo¬ following the election. In viev
cally from I banks and finance of our present military prograir
companies, and paying cash for and our European Recovery Pro¬
their trailer purchases. Now, how¬ gram, I can foresee heavy pres¬
sure for the reimposition of con¬
ever, a high percentage of trailer
sales have to be financed by the sumer crbdit controls next year
to
of Los An¬
time
Schwabacher & Co.
controls
1 {
obligasupport and strengthen
sound national fiscal policy/and;
to restrain inflation and expansion
of private credit while participate ?
think there has been enough re¬
ing fully in any needed expansion ^
straint, not that: the increase ir of
government credit. Moreover; i
the consumer credit outstanding
they have; a n obligation; to :
has been an inflationary factor
strengthen their, domestic indus¬
but'rather ^St our; economy anf"
try,, particularly industry of war
our
customers would be bette?
potential, while minimizing th^
served by financing less. This k
impact of monetary expansion on
no
time for heavy personal deb< the
country. + ;
^
^
of any s kind.
Credit should bf
But I have taken too much tim^
the
and
and other
Navy and
Pacific Coast Exchanges
ernment
.
in their
Los
Angeles
Paul T. Westervelt
office. During
the war he served with the U. S,
Securities
*
ment domestic and
credit
Interest
lective
Inc.,
Pacific Coast
;
.
suddenly realize that: during
whfchM^ppieared #^ln ^one; nf;^out
have about all they want of this a month increase over the rate of nation's greatest magazines: )
"It is a gloomy moment in histype of paper, and as a result increase last year. On an annual
that,, would
be ,tory;v.'; . In France the political
they, too, are becoming-highly se^ increase basis
Mr. Wester¬
happened in Caterpil¬
lar happened, and will hap¬
pen in other stocks you hold.
I
Many banks
velt,
What
Some Advice to Banks
,
.
mus
facilitate the distribution of man}
of the items of the much-needed
in
cause of this shortage of credit.
Dealers selling very small house¬
hold appliances are also
finding
it
difficult to obtain sufficient
credit
ment loan paper. This is the field
where the banks which are trying
outstanding has been widely
charged finance publicized,
but
it only shows
[The views expressed- fa this companies have moved up sharply, $250,000,000 increase in - the last
article do not necessarily at any and im
six month's'-over the rate of in¬
hi^jupinibn^will moye;up
time coincide with those of the even more as time
crease the year before when Reg¬
goes on.
*
Chronicle. They are presented as
Bank consumer credit is tight¬ ulation W was in effect. That is
those of the author only.]
about forty*odd million dollars
ening everywhere.
ship.
*
*
othef credit
nor:
refusing to finance $500,000,000, or approximately
Last iweek, and: two weeks
many types of equipment. Some Vz of 1% of our national income
NEW ORLEANS, LA.—Howard, of our; largest manufacturers- of which cannot be a very grea'
ago, you were advised that it
industrial and farm ' equipment factor.
should be stopped at 61. Lat¬ Labouisse, Friedrichs and Com¬
I know, of course, that the $6'
pany,
Hiberpia
Building,
an- find' it necessary to move into the
ter part of last week it closed
field, using their own funds to question as fgr as everyone here
nounced ' that
at that figure. "The assump¬ P a' u 1 ' T,
supplement finance companies and is concerned is whether or no*
we
bank credit.
are
soon
likely to have tbf
tion is that it will break the. Westervelt
had been ad¬
For
example, it was only a reimposition of - consumer credit
61
price before long; maybe
of Congress adopting
curbs before then.
distribution of
and
Credit
some; furniture stores
sumer
Slllll
at- the
accept*profits* even
risk of stepping aside at the
par¬
it will result in very feW business
Should any of these break due to this credit shortage. Fi¬
nance
companies, formerly very
their stop points, act on the
active in this type of financing,
mon stocks.
Don't misunder¬ advice given above. Mean¬ are now rapidly retreating to use saved for the
their funds for shorter-term* con¬ ahead.
stand me. Stocks can go up while hold—and wait,
but to; msdke^ moneyi-out -of
such advances you have to
items,
and
unduly' affect the this discussion I have done noth- 9
our national prod¬ ing but; remind you of familiar *
problems,
without
reimposition of government credit ucts.
contributing I
controls. The latter would not be
Installment loans to small busi¬ any constructive suggestions as v
to their solution; and, frankly, I
a
credit factor, but conversely ness have; undoubtedly felt the
would
strengthen
rather - than pinch, because as banks become ; haven't any. However, I would>
to close with some 'rathe*
weaken the credit structure.
more and more loaned up, they, : like
,
» »t
The nation's finance companies, too, like the finance companies, general observations:/
First—Every bank credit, small.
both time sales and small loan become more and more selective;
or large, should be
given a search¬
companies, have for all practical and, accordingly, prefer automo¬
ing analysis as to the possible ef-r.
purposes fully used up their avail¬ bile paper, for example, to the
able bank credit and are loaned higher risk small business install¬ fects of existing and future gov- {.'■
acute
an
well
stove
a
consumer
policy, although not the individua_ ticularlyfurniture* small appli¬
credit itself.
Then; too; in the ances, radios, soft goods, etc.; but
today —- at least rection. Through the use of to get additional lines of credit
for even the best finance company
that's the way it feels where stop points you protect your
today as it was, until recently, to
I'm sitting pecking this thing self somewhat against losing
get a satisfactory presidential can¬
out on the Underwood — so all your profits. By the same didate for the R^
what
the
market's
This means that these compa¬
doing token you have a share in any
leaves me dull-eyed and un¬ advance that may come out of nies are becoming more and more
selective
and
investing their
impressed. Here and there a this dullnes.. So merely hold money in higher
of
Thursday, July 1, 1948
„
From the looks of things at
anticipating
moves
hazardous to figure. Continue present, the market is; still
to hold long stocks, keeping marking time. I see no point
in anticipating something that
stops in mind.
will be evident when, as, and,
makes
It's hotter than the inside
&
car
dealers, appliance dealers and
means
less
dangerous politically
'
(Special
KANSAS
dried
up
capital
loans
for
the
prevent the reimposition of Regu¬
lation W next year, and I imagine,
The
FinanciaiJ
Chronicle)
,
:
-
of McDonald & Co., 1009 Bal¬
timore Avenue,
;
."
.
,
/
With Bache & Co.
;
,
'•
\
(Special to The Financial Chroniole)
:
CHARLOTTE, N. C.—George N.
;
The time is not too far off wber we won't be able to prevent it Bass is with Bache &
Co., Johnsthis consumer credit shortage will' but I don't foresee the possibility. ton Building,
^
'
CITY, MO.—Hartweli
K. Johnson has been added to the
staff
distributors, and it has virtually Yes, it will take a real fight to
automobile business.
to
1
i "f
^
-
*
>
■
Volume 168
THE
Number 4712
COMMERCIAL
&
FINANCIAL
CHRONICLE
(31)
and I agree with] for all the products, agricultural
not again kid our¬ and
industrial,,; of
the
United
stay in the eco¬ States, and for that matter, of
nomic stratosphere forever; some¬ every nation, and there is no un¬
says
International
(Continued from
;
which- they live.
Ours is the
noble task of reminding the world
that
we must return to the prin¬
ciples, unfortunately looked upon
by many as out of date and an¬
tiquated, of thrift, work and pro¬
duction.
Only in that manner can
have
we
and
peace
prosperity.
Utopic
experiments, such as we
seen
so
frequently, in the
have
last twenty years mean, sooner or
recent
international meet¬
ing at Havana, and the one taking
place in Bogota, demonstrate that
there are many obstacles to over¬
come irt the arduous labor of ob-
taining economic cooperation be¬
the
tween
nations.
We must
re¬
alize that the United States is still
nation and that, in.my
opinion, by tradition and for other
a
young
obvious and very natural reasons,
is not as yet perfectly prepared
in
the
as
a
psychology of its people,
whole—although the strong
efforts to prepare itself are highly
encouraging—-to assume the -full
responsibility of being the bank¬
of the
ers
entire world.
On the
other
hand, we need to exercise
clear judgment and thoroughness
iq the preparation of the projects
desire to finance through
Official
institutions of
the
that
we
the
shall be better
Bearing in mind the importance
of increasing the flow of foreign
capital towards; Mexico, and to
accelerate
the
development of
our international trade, there was
created
recently
a
Mexican
American Commission of private
interests in which are represented
the
various
banking sectors of
Mexico.
The
work
of this
Com¬
possi¬
bilities as it can prepare technical
studies and provide exact data,
often unknown to the American
presents
investors
and
.
enormous
businessmen,
re¬
garding
business
opportunities
hero, the protection given, by our
laws, the advantages .of our tax
structure as compared to theirs,
the freedom of exchange restric¬
ourselves
with
a
strict
control of
imports and even with an increase
in our tariffs, than to devaluate
currency in this critical time,
which, what the world needs
most is a period of calm and rest,
our
.
in
not
and
the
alarm
lack of
and
confidence that devaluation would
bring about.
of
clared
States
We must insist that
Finances, has de¬
publicly that he believes
our
free of restrictions
he has
of
a
commerce
same, must
and that
publicly stated that what¬
ever restrictions exist today must
disappear as soon as possible. We
must give full publicity, to the
private
fact that strenuous efforts are
had
any
knowledge, the projects have been
well studied and documented. The
happen with those of
enterprise because., un¬
sound : promotions .leave
a
bad
taste abroad and cause great dam¬
age to the credit of the country.
Mexico already enjoys ample
credit abroad to finance self-liqui¬
dating operations and for rela¬
tively short terms.
The impor¬
tant problem,
and, one which
deserves our full attention, is to
create a condition of complete
confidence that will justify loans
on long terms and the investment
of substantial capital that, joined
with
our
be *used
the
financial resources, may
for the
development of
country.
There
think, the
the
.
exists
in
I
concept that
erroneous
Commercial
.
midst,
our
American
North
policy is opposed, for reasons of
blind selfishness, to our indus¬
trialization and development.
With all sincerity, and with a
profound knowledge of the NorthAhierican psychology I caft as¬
sure you, without fear of contra¬
that this theory is
diction,
not
based upon the facts. To back up
this statement I will quote you the
words of
an outstanding and dis¬
tinguished- figure iq the business
and political life of
our neigh¬
boring country.
Mr. James A.
Farley, Chairman of the Board of
the
Coca-Cola
Export Corpora¬
tion, said recently in an address
entitled "World Trade: On it De¬
pends Prosperity at Home." "The
•warning that by rebuilding for¬
eign industry we are putting com¬
petitors
for
overseas
markets
back into business is not valid.;
:The.; history of the world trade,
jshows that the best customers
those, who
tare
able
are
to
sell
abroad, generally in direct compedion^with each other, r Their in¬
dustry
makes
them
tomers for their
>well
as
better
cus¬
products as
the goods of the others."
own
The
people of the United States,
whole, know full well that the
as a
industrialization
and
•
nomic development of a
•its
standard
of
life
the
eco¬
nation lift
and
increase
its purchasing power. They know,
-too, that their best customers have
•always been the
ized
countries
more
such
•
industralas
;;
Great
Britain, .Canada and others., There¬
fore, :it. is to their own selfish
•interest, if not for reasons of a
.higher level, to cooperate in in¬
creasing our purchasing power by
means of our industrialization, as
for
any one
tell
going
back to the depression level of the
if the
the
thirties
but
mitted to prevail.
cannot
maintain
Federal
Reserve
not
are
kneeling in fear. On the contrary
they begin to see the likelihood
of orderly readjustment. They can
even
hope that the inflationary
spiral has reached its top.
There
stepped into the situation a
has
law
older
immune
than
to
Parliaments
tests
of
and
action
fact,
of
business
but
rather
terference
conceive
by
in
economic
to
in¬
which
political
elements
themselves
to
be
wiser
our
you
I
Do
that
do
and
down
come
ride.
a
permanent nature,
be¬
ing made to balance the interna¬
1929
started:
there
exists
and
a
Today,
surplus
however,
credit
of
in circulation, cre¬
ated by the deficit financing of
the war.
This surplus can be re¬
duced only with favorable Treas¬
ury balances* therefore, we! can¬
not expect a sudden or rapid liqui¬
currency
dation
of
credit*
It is true that
both, the Treasury and the Fed¬
eral Reserve have been
urging the
commercial banks to follow
a cau¬
tious policy and tighten the vol¬
ume of credit available.
There is
no
doubt that the break in
earlier
prices
this
bankers
year has proven to
the
wisdom
of
such
policy.
'
we are
that
mean
the *
we
psychology of fear is
Increased
]
per-
ing that fundamentally the econ¬
omy of the United States is sound
but that certain dislocations have
that
favorable
to be
will
serve
100-yard
dash speed of recent months." He
concluded
his
observations
adjusted.
When
is
stat¬
•
this] - readjustment
to
ment
production,
to
debt
Treasury balances
the
reduce
and
in
this
govern¬
turn, will,
begin?
Nobody can answer this
question, but it is probable that
it has
already started and we
reduce the volume of credit avail¬
that either now or in
months to come the readj ustment
will take place.
clude representatives of both po¬
litical parties, as well as leaders
maybe
The
sure
Department
Affairs
the
of
Points
of
Economic
United
completed recently
to
1947."
in
Nations
study
a
the
on
the
Economic
1945
In this study,
importance
of
the
the great
international
trade of the United States and its
impact
upon
the
economy
of other
In
countries is clearly stressed.
1938 the United States was
merce.
In
1947 such
creased two and
able.
Three
exports in¬
half times in
Committees,
which
in¬
of
banking, industry and com¬
have been making an anal*
ysis of the economic situation of
merce*
,
:
the United
States, to find out just
they can go in extending
aid to foreign nations.
Their work is of primary impor¬
tance, because it will serve no
good purpose to extend financial»
help, if by doing so, the source
from which it comes is destroyed.
how far
financial
The eminent and erudite econ-:
al¬
ready the largest exporter in the
world, and its
exports repre¬
sented 14% of the world's com¬
omist,
most
John
H.
interesting
some
months
■;
essay
ago
of 3 "Economic
name
Two
Williams,
in
a i
published
under
;
Lessons
the
of 1
World
Wars," compares the,
volume and five times in value, postwar effects of the first war
representing
one-third
of
the with our present situation.
This
world's
commerce.
A
country is most valuable, because there
with such large exports must ex¬ is no better teacher than history,
tend
credit and
export capital. that is, if we have the perspi¬
Mr. Carillo Flores in the address, cacity to learn the wise lessons it
which
I
a
mentioned
before,
said
teaches
this:
"The
In view of the fact that the first
employment.
He
expresses
the
let. opinion that an economic crisis '
can only be created, at this
time, 1
not
less ex- )
ports and less buyers, due to the j
high prices, will arrest the infla¬
tionary movement. We must not
forget, as we mentioned before,
constitution¬
ality, namely the judgment of the
marketplace as it interprets supply-and-demand in terms of price.
Danger lies not in the normal re¬
have to
"Salient
in
have
we
pay
Situation of the World from
many official credit transactions
between Mexico and the United
I
time
again their prognostications
go awry, but the strictly financial
agencies, such as the Treasury and
tions, the fact that our Govern¬
Important cycles of depression
Budget is balanced, and that
have a free gold market, etc., come
always
accompanied
by
etc.
We must let foreign capital liquidation of credit.
That is the
know that we. prefer to sacrifice way the depressions of 1920 and
chief
which
Washington
we
the world know that the supreme
of
us
we can
ment
American Government
can
The
panic.
a
once
than Providence."
American
or through
private enterprise. ? I
point with pride that in the
into
"Let
selves that
economists may tear their hair, as
,
mission
later, chaos and ruin.
The
manner we
clients.
further,
him:
AsfeitsioflMexicanlEconomy
in that
12)
page
31
permanent
solution,
(he
refers to the economic dislocation
us.
Williams thinks that there
Dr.
three
outstanding points of
comparison between our situation
are
serious dislocation in the price of the world), under the circum¬ now and the decade of the twen¬
He
that structure took place in the grain stances, can only. come from the ties.
says:
First, "Though
we .may have a favorable balance,
market, it is of interest for us to United States, not because we food was supplied by relief or¬
and; this," in my opinion can be hear the observations of Mr. H. A
want to impose upon it an altru¬ ganizations in the immediate post¬
dork?J with ' Relative ease, with;, a; Bullis, Uhair®an of the Board of istic donors role, but for its own war period, no international plan
program
of
intense
and well General Mills, who is recognized welfare.
This
idea is
gainmg was developed to provide other
planned development of only two as an authority on the subject, ground in well informed circles goods, particularly raw materials,
industries: petroleum and tourists. and as a liberal business leader. in the
United States." According essential for European reconstruc¬
These points were covered with He said
recently, and rightly so, to Mr. Carillo Flores, the United tion. The problem was not faced
great eloquence by Mr. Antonio that the principal factors which States must adopt a broad and as an international issue until the
Carrillo Flores, President of the have contributed to the
high price liberal program of foreign invest¬ Brussels Conference of October
Nacional Financiera, in his ad¬ level in the
grain markets are: ments. The only alternative is a 1922, when the Ter-Mullen Plan
dress delivered last summer, en¬
inflation, world chaos, unfavor¬ radical increase in its imports, for raw material credits was pre¬
titled:
"Import Restrictions and able crop weather in Europe and which
he, rightly, considers as im¬ sented, but failed to materialize.
the Defense of our Currency." We the increase in
Countries were left to obtain raw
population and probable.
must convince the North Ameri-;
materials and other needed goods
consumption in the United States.
The problem of the moment in
can
that
Mexico
has
out
of
their
own
financial re¬
already He points out, on the other hand,
the United States is obviously that
passed
through
many
experi¬ that Europe will produce more
sources and with their interna¬
the credit expansion caused by;
ments of a social and economic wheat this and next
tional positions already acutely in
year; that it war deficit financing has brought
deCicit." American exports, initial¬
order, through which other coun¬ is probable that it can be arranged
about inflation, which, in turn, is
tries, possibly even the United so that Eastern Europe may pro¬
ly very large, underwent a severe
so
difficult to control.
There is
States
may
have yet to pass. vide grains to Western Europe;
decline. Wartime controls in Eu¬
a
mad race between wages and
Therefore,
capital
invested
in and finally, that it is probable that
rope, internal and external, broke
prices. On the other hand, if, toi
Mexico will not be subject to the
production in the United States
down, prices rose violently, the
remedy this danger credit is dras¬
convulsions and risks which such will continue at its
foreign exchanges collapsed, tax
highest level. tically
restricted, it will reduce
experiments
bring
about,
for We come then to the conclusions
receipts declined, while expend¬
the productivity of the country,
people know here, through their that the readjustment in the price
itures increased, the deficits being
causing unemployment and reduc¬
own
experience, that we cannot of grains, though intense and se¬
covered by government demands
ing the nation's income to a pre¬
reach Utopia with good intentions,
upon the central banks, until govvere, is quite normal' and should carious level. In other
words, we ernment
high ideals and fantastic pro¬ not be interpreted as the first
credit
collapsed; and
ask ourselves, is another major
grams, which do not include hard sign of a general
inflation undermined
crumbling of the depression inevitable after this monetary
work and solidity.
not only the power to produce,
price structure.
period of inflation and bonanza.
but the social and political fabric
Mr.
Raymond
Rogers,
noted
U. S. Economic Situation
.The index,, of business activity of the Continent."
economist and Professor of Bank¬
in the neighboring country reveals
What symptoms of importance
ing at the University of New York,
Second, "The reparation pay¬
are we now observing in the eco¬
that, after the readjustment of
made
a
recent
ments and war debts helped to
analysis of the
nomic
situation
of
the
United
January and February, there has
economic situation and has this to
an
already
unbal¬
been a rapid expansion again in complicate
States and which may have an
anced international position."
say:
"The monetary authorities the volume of business.
effect upon
Repre¬
the Mexican econ¬
continue to make efforts to re¬
Third, "The outflow of Ameri¬
sentatives of the American Bank¬
omy?
Has the time arrived for a
duce the volume of credit, and in¬
ers Association visited
13 impor¬ can capital served as the great
depression to take place in our
terest rates are increasing. Prices
but I think, it
tant business centers of the coun¬ counterweight,
neighboring
country
with
its
continue to go higher than the
detrimental
reaction
try and they: found that the main, must be concluded, as we look
upon
our
purchasing power of the people' and almost sole concern of bank¬ back today, that though our capi¬
own?
We have already seen an
and foreign trade, even
if the' ers is the
problem of inflation. tal exports alleviated the situation
important break during the month
Marshall
plan
is
approved, is They felt however, according tq they did not give a permanent so¬
of February in the prices of agri-bound to decline. These,
Epid many information published, that they lution to the difficulties of Eu¬
Cultural products and we have
other basic factors point to a down¬
did not expect a serious business rope, as it intensified the eco¬
seen
an
increase, perhaps small,
ward trend in business.
How¬ reaction before the final months nomic dislocation and contributed
but still an increase, in the rates
ever,
there are other powerful of this
greatly to the intensity of the
of interest.
These
tional trade of the country so
,
.
symptoms
re¬
veal, without doubt, that the price
forces
in
the
direction
.
.
year.
of
more
Mr. Marcus Nadler, Professor of
inflation, such as, the demand for
Finance in the University of New
higher wages, and an abundance
reached a dangerous point, and
of credit and money which tend to York, and an eminent economic
that it is urgent that intelligent
has. expresed the
create a higher purchasing power counselor,
measures be
taken to prevent a
in the hands of the people." Ac¬ opinion that a readjustment will
debacle in the prices and to pro¬
take place in 1948 and that it
cording to Professor Rogers, we
mote an orderly readjustment. A
should
be
welcome.
He feels,
must not expect the authorities in
well informed source, The Whaley
quite naturally, that if inflation¬
Washington
to
take
decisive
Eaton Service, which publishes a
ary trends continue with the cor¬
measures to stop the inflationary
weekly analysis of the situation
responding increase in prices and
movement
this
until the
year,
from Washington, makes the fol¬
wages, that the readjustment later
election
is
over.
He
seems • to
lowing comments:
on would be more dangerous and
think, on the contrary, that ad¬
"The
severe.
A readjustment this year,
economy- is -barricaded
ditional fuel will be poured on the
I think,. would not be quite as
a
against
precipitate 5 collapse.
Such a calamity can occur only fires of inflation by reducing the severe nor quite as
long, as there
if mass hysteria whips the nation taxes of millions of voters.
He exists a tremendous world demand
structure
and
inflation
have
world
depression which took place
later."
the
In
the
decades of the
United
States
twenties
invested
large
in foreign countries.
In the
opinion of Dr. Williams: "That was
sums
first experience and we did
badly. The optimism engen¬
dered by the long period of pros¬
perity from 1922 to 1929, the high
our
it
interest rates
task
our
on
of
obtainable, the
salesmanship,
easy
destroyed
vision and put the emphasis
the
apparent profits rather
than in
productivity.
(Continued
The^event-r
on page
32)
32
THE
(32)
COMMERCIAL
FINANCIAL
&
CHRONICLE
Thursday, July 1, 1948
ficient
to reach that goal in a lessness
and
discouragement
Why Penalize the Flower of
:
Our Youth
relatively short period of time. among the people.
"
It may be that this is what
Therefore, we should cooperate
Military Hysteria
with the government, and insist
"world leadership" imposes, but
Our enormous present and pros¬
the parents of the boys who are
upon an accelerated program and
pective military expenditures, and to be drafted are
a rigid and firm policy, which can
deeply con¬
overcome
all obstacles, and de¬ now the draft, are not only up¬ cerned. One can only hope that
(Continued from page 31)
setting our educational system but our leaders will see to it that
velop these two industries on a
Hal losses have been an almost constructive trade and investment
are
endangering our economic policies will be adopted tHat will
sound and lasting basis.
unsurmountable
deterrent
to policy abroad."
and financial system as well. By
minimize the adverse effects of
Gentlemen:
members
of
the
In closing, gentlemen, and bas¬
further
private foreign invest¬
piling up debt and taxes, we are the draft on our boys and that
Mexican Bankers Association, I do
ment ever since.
;
ing my opinion on the symptoms
increasing the inflationary spiral
not want you to consider these
steps will be taken to preclude
"The great dividing line of the of the economic situation in the
and doing more to weaken our
peace-time training from becom¬
inter-war period is the year of United States, and backed by the personal observations as an in¬
economy and sow the
seeds of ing
permanently grafted on our
fallible program for the salvation
1931.
Thereafter, the world in¬ authorities which I have cited, I
communistic discontent than all
of the country.
way of life here.
I do not consider
creasingly turned its back on the come to the conclusion that there
the Russian propaganda put to¬
gold standard and multilateral will not be a crumbling or utter myself capable of giving advice to gether. In hysterical panic we A Fairer and Better Way to Meet
a group as well prepared, as alert,
trade. The thirties were a period dislocation of the economic struc¬
The Situation
seem
to be imitating Stalin by
and as patriotic as you are. Rather,
of greatly restricted international ture of the United States, with
It is significant that recently the
militarizing our government, reg¬
I would want you to think of the
trade and investment.
During the
corresponding
dire
conse¬
imenting our people and replac¬ Army has not been accepting men
ideas which I have expressed, as
that period most countries tried quences that it would bring to
ing freedom with a form of total¬ for 18-month enlistments. Such
those
of
one
who
is
thinking
to do the impossible, that is, to our own internal situation and to
itarianism.
are the demands of modern tech¬
search for internal stability and the world at large. However, we aloud, and who has great faith in
nical warfare that apparently it
A Better Way to Avoid War
the future of Mexico and who has
i
must expect, and we should wel¬
security without international
does not pay to give full training
a deep and abiding desire to serve
Communism can
best be re¬
trade. We watch it go through its come, a readjustment during the
to men for short periods of serv¬
it.
I thank you for your atten¬ tarded
final months of this year and this
by keeping our own econ¬
Various
International Aspects
of Mexican
Economy
t
;
.
phases,
.
.
leaning
the
the depreciation readjustment, undoubtedly, will
pf currencies that ended only in be reflected here in Mexico.
In the long run the law of sup¬
a vicious circle, the spread of re¬
strictive trade and currency de¬ ply and demand will be felt and
vices
bilateral clearing agree¬ it will check the forces of infla¬
ments, quotas and other direct tion, but without taking us back
towards autarchy,
-—
controls
import
exchange
and
controls."
Let
us
'
direct
now
our
thoughts
to
World Bank, the main purpose of
which is to destroy obstacles and
world
the
back to
international
anced
this
and
own
our
on a
basis. -We must
sound and solid
never
of fear
decisions..
to
permit the
mold our
1
.
A Proposed
1
have
foregoing and in
order to attract foreign capital to
Mexico; to facilitate and expand
our
international commerce;
to
foster our industrialization 'and
pur
eral
agriculture; and for the gen¬
our
national
welfare
lowing;
(1) That
all
of
segments
of
than
more
$10
billion
given, more than
outright
grants.
.
and
has
they have taken an active partici¬
pation in important international
problems such as foodstuffs, the
atomic bomb and many others.
/
and
give full support
spite of daily alarming
to
be
on
a
firmer
trade
and
exchanges,
tend
rates
tells
of
us
fixed
the
exchange.
Williams
Dr.
that the world has its eyes
the United States in
that that country may
upon
hope
maintain its domestic
stability and
high level of production and
employment. The fear of a major
depression in the United States is
a
an
obstacle to the
success
of world
reconstruction.
Notwithstanding
the
fact,
that
the authorities and the economists
in the United States cannot
to
a
complete understanding
which world
•the manner„ in
come
as
to
of
credit
short and long
in the end, will
rates of in¬
with the cor¬
responding benefits to agricul¬
ture, commerce and industry.
(b) The financing of a well
coordinated plan to irrigate new
areas and develop our agricul-
which
strengthened dur¬
ing the second World War, have
prevented a wild fluctuation in
volume
to reduce the
terest
established in the decade of
were
the
available, at
which,
ground
the thirties and
sup¬
of
Inter-American
terms,
the period following the
first World War. The restrictions
in
banks
commercial
increase
in
than
officials
proposed ■
a view to:
(a)
The encouragement
of
foreign capital, which coupled
with our own resources, private
and governmental, may serve to
news,
seems
public
Bank, with
world,
in
the
our
the "
:
<
on
ture.
(c) The financing of a broad
program to create new sources
of motive power,
the
stabilization'
can
be
eco¬
ob¬
■
National Guard for ; another
and rather long period,
As
member
a
of
the
National
Guard, he would be compelled to
and
drill at least
of
matter
summer
15
once
week
a
for
camp
days each
will that
a
summer.
country
without which,
be indus¬
cannot
and
For nine months of the
would be away
and
its
.
fast-moving technology
our
ing, with industry geared to mili¬
tary necessity. How long can even
our
country
and
keep
such
stand
a
pace,
fundamental
its
doms?
Who
Then
again, many young men
all, or at least part,
of their expenses in order to go
to college, and most students de¬
pend heavily on what they can
earn by taking a job for the sum¬
mer.
But what employer would
earn
to
hire
a
student
this
for
vacation period if he knew
in ad¬
that in the middle of
vance
sum¬
the young man would
have to
go' away to camp for 15 days?
These are; real handicaps. Prob¬
ably ways can be found to meet
them, but fairness to our young¬
sters dictates that real
thought
mer
be
given to the dilemma of
boys under discussion.
free¬
Starting Their Draft
Period
control
manent
of
consumer
credit, they would favor the tem¬
porary reinstatement of controls
definitely limited as to a period of
time. The companies with which
executives
these
connected
are
•
...
number
substantial
would
ecutives
such
of
not
this matter of
Seriously?
public in general has been
those who ought
led to believe by
that
there
fear of war;
is
no
imme¬
that the draft
chiefly necessary because of
its
alleged psychological effect
upon Russia, to prevent her from
extending her communistic con¬
trol to other countries. But would
is
temporary reimposition
of
present military policies ac¬
complish this? Is it not possible
that the Russians are quite con¬
tent with any disquieting fears
which may exist here, knowing
The
who
Those
trols say
credit con¬
oppose
that they want to be able
extend
credit
credit
where
is
due without any
interference from
government agency or bur¬
any
These
men
contend that
and to define the conditions under
" their
organizations
are
willing to extend credit. More¬
over,
they argue that controls,
imposed, tend to be perpetu¬
once
ated; that once the government
gets power, it never wants to let
it go.
who
did
not object to
reinstatement of
credit controls put their position
upon the grounds of expediency—
Those
the
temporary
that such controls would curb any
tendency to speculate in unsound
terms at a time when the prices
of
consumer
durable
economic
same was
dislocations?
true of Nazism and
which thrived/. in the
between the wars when
economic
depression, > financial
Fascism,
period
collapse
and
widespread
unem¬
ployment bred a spirit of hope¬
goods
are
high and when future uncertainty
may
exist concerning:; the peak
breaks in such prices. Thus it ap¬
that these executives are
thinking in terms of the use of
pears >
government restraints to contrib¬
ute
to
sound
facilitate
investments and
liquidation.
attitude
The
of
a
of
to
our peace as
a
Financing
lating itself, thus making for more
and
more
government
controls
and
and
regimentation of commerce
industry. When we have pre¬
sumed in trade circles to criticize
of the extreme merchandis¬
some
ing practices the
other
from
answer
houses
is
get
we
that
every
businessman has the right to
fit.
is
It
on
has
he
true
sell
terms he
any
that
" ;
one
of
credit
stated thus:
executive
controls
at
terms
a
is
:
houses that have
"The
time
when
slashed
it
was
wholly unnecessary to do so have
so
disgusted many of the other
dealers that; they are pressing for
some
It
is
seems
legal right but sometimes I won¬
if
der
he
that business
wholly incapable of regu¬
great pity
moral
some
re¬
1948 Outlook
Finally and very briefly, what
is the general credit outlook for
the remaining part of 1948? To
this inquiry we shall make only
a few general observations. In
my
opinion:
(1)
Inflationary pressures on
making for upward pres¬
on prices, will continue.
costs,
sures
(2)
At the
ment
same
to
pressures
central
credit
time
govern¬
the
constrict
reservoir
of
central banking system are
to continue.
our
likely
,
,
,
(3) With increasing prices and
the .current tendency toward a
decline
in
savings among the
lower
income
groups,
these
groups will turn more and more
to
credit
as
a
means
of
procur¬
ing the durable goods they desire.
This
means
continued
a
increase
in the dollar volume of credit.
(4)
ume,
.
With this upswing in vol¬
while pressures are being
exerted
to
construct
commercial
bank
credit, the tendency will be
for credit agencies, and particu¬
larly sales finance companies, to
become
credit
their
selective
more
risks
net
and
also
in
to.
their
stiffen
rates.
Increasing costs
securing capital
tendency
y\.\
and difficulties in
will make this
inevitable.
(5) All in all, however, the re¬
maining part of the year will ba
a
good period in the consumer
credit field. Volume will be ade¬
and earnings should ba
reasonably
good.
Nevertheless,
this period Of sunshine should not
quate
lull merchants
tives
restoration of Regulation W.
a
hasn't
sponsibility to his own industry or
perhaps to other industries."
" \
resources
large finance company on the
subject
Copimunism thrives best on
and
be
suring
the
such
controls.
our
wars
better method of in¬
well as check¬
army,
ex¬
oppose
which
that
not the holding of the draft act in
abeyance, or repealing it entirely,
while building up a fully trained
sees
-
Thus, it appears that sales fi¬
nance
company
executives are
overwhelmingly against perman¬
ent
credit
controls, although a
before being called to the
colors? Is there such a rush about
diate
this
of
'
eaucrat.
courses
know
attractive?
be
manent credit control.
they, as executive officers of their
companies, are in the best posi¬
tion to
determine credit policy
to
country
his merchandise
Frankly, would it not be fairer
and much more practical if the
prospective draftees were
per¬
mitted
to
finish
their
college
The
more
interests
operate 316 financing units.'
■
(3) One executive said that he
would favor the imposition of per¬
to
industrializa¬
the
not
ing Communism?
*
although they are opposed to per¬
the
Suggests Students Finish Courses
Before
Would
(Continued from page 4)
Students
Handicaps
want
term enlistments
Trends in Consumer
he
year
at school, and for
Work Their Way Through College
have to
prac¬
better served if we
had a fully-trained army of mod¬
nothing is more certain than that erate
size, but with the best and
military equipment will speedily most
up-to-the-minute equipment,
grow obsolete. To
build up an always on the alert and ready for
enormous
army and keep them instant
service, rather than to
supplied with up-to-date equip¬ have
many times the number of
ment would mean keeping pur
drafted men with little training
country on a permanent war foot¬ and little or no equipment? Would i
In
the other three at home.
(4)That, since the prosperity of
nation
-
with
bring
inevitably
war
them.
more
be
,
tion
for
Would it not be
tical, therefore, and more econom¬
ical in the long run, to make long-
his school
military prepared¬
trialized.
ness
that we
must disrupt the
(3) That we continue working lives of a whole generation of
actively toward the creation of a young men, not only taking two
real market for securities, bearing years out of the most important
in mind that the ability to liqui¬ part of their lives, but imposing
date investments is fundamental educational handicaps from which
and that lack of a suitable secur¬ they are likely to suffer for the
ities market is one of the ob¬ remainder of their days.
stacles in channeling foreign cap¬
"
Will Russia Take the 'Draft'
ital toward Mexico.
•
»
.'
the
ice.
strong, prosperous and free
hampering
Governmental
controls that war and preparation
omy
from
possible, if his
are perhaps
hundred miles or more apart?
How
home
a
to
go
loans,
depend, to a great extent,
upon the efficiency of its means of
tained and maintained, it is com¬ communication, we should coop¬
forting, according to Dr. Williams, erate -with the government and
that in spite of inflation and the we should insist upon a construc¬
readjustment which must come, tive and efficient administration
there is a probability, almost a of the railroad system, its mod¬
certainty
that
production
and ernization and its expansion. We
employment will remain at a high should support to the limit of our
level for a long time to come. He resources the building of roads,
ends his observations with the and the further development of
significant and important phrase: our communications by air and
"In any event, it does seem clear by sea.
that the greatest contribution we
(5) Last, but perhaps most iirir
(the United States)
can
make portant, intense efforts should be
toward preserving
our kind
of continued, ever* at the cost of
economic system, here and else¬ great sacrifices, to obtain a favor¬
where
in
the
world, will
be able balance of trade and thus
through the maintenance of a protect our currency. We must
stable and prosperous economy at recognize
that
two
industries,
home, coupled with a liberal and petroleum and" tourists, are suf¬
nomic
country
firm and
"
(Continued from first page)'
Draft
we
port actively the organization
.
The reconstruction of the
That
(2)
$5 billion as
Furthermore,
a
life, I urge the fol¬
a
made loans to foreign countries of
us
the
attend
Mexican Policy
In view of the
million, and
expanded the opera¬
guide
New Draft Law
economic house in order and
finances
psychology
British loan of $3,750
they
all on
solid economic path.
readjustment can be calm
orderly, if we maintain our
trade.
tions of the Export-Import Bank.
The
American Government
has
and to
the economic level which pre¬
bal¬ to the work of the MexicanThey American Investment
Commission,
have helped to organize and con¬
which was created some months
tributed the largest share of the
ago,' under "the auspices of this
funds for UNRRA; they made the
Association.
bring
of all sectors of the
fare
vailed during the years of 1929 to
1935.
We must have faith that
to the present
problems and com¬
pare
them
with the previous
postwar era.
Although it may
seem impossible to believe it, ac¬
cording to Dr. Williams, there has
been
an
improvement.
In the
first place, the United States in¬
stead
of
refusing
to join the
League of Nations, as it did then,
has taken an active part in the
organization and work
of the
United Nations. They have dem¬
onstrated a prime interest in the
world's finances by participating
and contributing to the Interna¬
tional
Monetary Fund and the
tion, and I trust that my thoughts
may serve to speed up the vigor¬
ous
efforts to improve the wel¬
into
a
and credit
false
execu¬
feeling of
se¬
curity. After the sunshine always
comes
the clouds—and rain.
j
Volume 168
Number 4712
THE
COMMERCIAL
&. FINANCIAL
CHRONICLE
(33)
Indications of Current Business
The following statistical tabulations
shown in first column
Indicated
STEEL
are
INSTITUTE:
Previous
Week
steel
operations (percent of capacity)
Equivalent to—
Steel ingots and castings produced (net tons)
—July
4
.July
4
1,716,000
1,734,000
72.0
,
"Crude
oil
Crude
INSTITUTE:
of
output—daily average (bbls. of 42 gallons each)
to stills—daily average (bbls.)
PERMIT
June 19
5,492,350
5,479,600
5,439,200
5,114,500
BRADSTREET,
June 19
5,566,000
5,592,000
5,507,000
5,076,000
Month
17,248,000
15,760,000
2,129,000
7,106,000
5,882,000
8,967,000
9,284,000
■f
-105,849,000
106,934,000
90,942,000
West
DUN
—
output
(bbls.)
June 19
17,648,000
17,928,000
Kerosine
output
(bbls.)
June 19
2,149,000
2,270,000
June 19
6,758,000
June 19
8,963,000
June 19
104,603.000
i
•
;
'
51,874
9,258
51,077
Not avail.
8,423
&
CITIES
■1
•
vv'-'
'■
of
May:
England
New
:■ -r 53,277
:•
8,530,000
Gasoline
215
—
Ago
is
hi!.';.
2,116,000
7,143,000
VALUATION
INC.
Year
Month
4
aluminum—short tons (end of Apr.)
BUILDING
.
runs
MINES)'
OF
'
1,259,900
1,730,000
(BUREAU
Production of primary aluminum in the U. S.
(in short tons)—Month of April
,
(
Previous
•
Month
ALUMINUM
•
96.0
'?
Latest
Ago
"Ago
96.2
95.2
|v
Year
Month
Week
Stocks
AMERICAN PETROLEUM
Activity
production and othqr figures for the latest week or month available (dates
either for the week or month ended on that date, or, in cases of
quotations, are as of that date) :
cover
Latest
AMERICAN IRON AND
33-
'
$15,783,492
$18,839,410
distillate fuel oil
and
output (bbls.)
'Residual fuel oil output (bbls.)
Stocks at refineries, at bulk terminals, in transit and in pipe lines—
Finished and unfinished gasoline (bbls.) at
Kerosine (bbls.) at
$14,614,828
Residual fuel oil
(bbls.)
,
(bbls.)
ASSOCIATION OF AMERICAN RAILROADS:
24,523,504.
fc.3,359,155
72,955.559
49.480,840
47,664,798
22,400,668
10,703,903
49,051,107
30,005,541
22,797,913
11,303,521
12,716,989
75,605,873
78,773,714
39,634.753
$364,453,745
C
17,575,000
16,897,000
14,885,000
14,224,000
June 19
at
37,796,356
45,750,375
Mounta
43,783,000
42,288,000
37,333,000
38,469,000
Pacific
58,726,000
57,481,000
54,452,000
49,001,000
June 19
at
64,982,146
30,726,324
South
June 19
Gas oil and distillate fuel oil
,
.
86.795,445
$353,039,658
Gas oil
'
Revenue
freight loaded (number of cars)
Revenue freight rec'd from connections (number of cars).^.
ENGINEERING
RECORD:
Total U.
Private
ENGINEERING
June 19
710,847
700,630
eonstriiRtinn
879,158
715.297
,
*
COAL
'•
$126,883,000
$189,903,000
67,953,000
99,513,000
69,090,000
58,930,000
90,390,000
74,380,000
56,560,000
70,636,000
33,488,000
63,929,000
N
June 24
,
48,395,000
15,534,000
2,370,000
19,754,000
(U.
BUREAU
S.
OF
America
To Europe
To
Asia,
To
Beehive COke
*13,380,000
1,210.000
13,720,000
1,180,000
140,300
145,000
148,200
..June-19
1,183,000
:
STORE
TEM—1935-39
SALES
INDEX—FEDERAL
RESERVE
In
1,221,000
123,200
h.h-V,'
LINTERS
(net
tons)
June 19
310
295
*304
DEPT.
—
BALES
Month
of
ELECTRIC INSTITUTE:
(COMMERCIAL
STREET,
AGE
INDUSTRIAL)—DUN
steel
(per gross
PRICES
Electrolytic
(E.
&
112
All
60
Apr.
30
785,140
2,006,017
.
30
All
3.24473c
3.24473c
2.85664c
$40.53
$40.53
•'? $40.53
$33.15
$40.66
$40.66
$34.75
Non-durable
4
Non-durable
.June 23
21.200c
21.200c
21.200c
,'(. 'n\
21.250c
21.750c
22.175c
21.625c
21.425c
103.000c
103.000c
94.000c
80.000c
17.500c
17.500c
17.500c
15.000c
17.300c
17.300c
17.300c
12.000c
12.000c
12.000c
-
.
.
21,723,000
'
U. S. Govt. Bonds—
.June 29
corporate
101.54
113.12
113.31
113.31
117.80
117.80
115.82
J«nP 29;
116.02
116.02
112.37
112.56
112.56
106.92
106.92
107.09
109.42
109.24
109.24
108.70
Utilities
..
.
113.50
113.70
114.27
Govt.
116.41
116.80
117.00
\.
•
benefits
2.45
2.43
2.85 V
3.04
3.03
3.03
3.33
OF
2.99
•
3.21
f-
.June 29
j
|
Cotton- .;
Grains
2.85
2.64
•
.-•••
$142,339,000
40,157,000
8,356,000
19,881,000
—
IRON
CASTINGS
June 26
3.24
41,898,000
.2.72
2.80
2.61
MOODY'S
2»M>
WEIGHTED
COMMON
438.0 f
•
427.2
401.0
'•
Utilities
86,767
50,017
for (sale
242.0
AVERAGE
^
•
4^168-.
47.303
43,921
199,578
—
YIELD
of
41,994
.
203,351
275,415
OF
May:
'
.
.......
' '
'{*\
*5.28
*5.50
*5.35
*5.21
yield
238.0
287.3
279.2
207.3
•276.2
265.9
249.4
PLANTS
348.3
351.9
358.5
356.1
FACTURERS' ASSOC.)
*3.80
*5.46
*5.37
*5.43
.:
.;
s
*4.60
.
•
217.4
287.8
278.4
*3.29
*5.26
(200)
*5.50
*3.09
(10)
*5.87
*4.43
(15)
*5.55
*5.80
i—;
June 26
.
MOTOR
VEHICLE
IN
SALES
FACTORY
U.
FROM
(AUTOMOBILE MANU¬
S.
Month of May:
—
261.6
257.1
233.1
Number
of
228.6
172.2
Number
of
176.6
176.9
177.2
161.1
Number of motor coaches.---.
26
214.6
209.4
214.2
*218.6
June 26
165.9
165.9
165.2
148.7
26
...June 26
228.5
230.1
158.8
158.0
158.6
154.4
Aluminum ' ( thousands
June 26
134.6
134.5
136.1
125.5
Copper
June 26
142.9
142.9
143.8
134.6
Magnesium
June 26
139.4
139.4
139.4
126.6
Zinc
227.6
226.6
223.3
197.9
Lead
June 19
173,264
170,701
166,639
....June 19
182,205
171,337
193,156
189,359
182,909
....June 19
97
101
100
102
^.L.June 19
369,348
380,421
363,959
487,877
commodities—.......
June 26
_■_——
„
__—
:—.......—....—
_
—
1
)
:
:
PAPERBOARD
„
263.4
232.9
.
Total
256.1
MERCE)
REAL
...
—....
—
-
;;
J
CASTINGS
of
OF
Month
pounds)
of
OF
U.
S.
OIL,
PAINT
AND
DRUG
wyj AVERAGE=100
REPORTER
PRICE
LOAN
—
Individuals
.June 25
146.9
147.4
146.9
143.2
165.3
164.9
163.5
147.8
June 19
194.5
193.5
189.2
178.7
-_June 19
—
180.7
!
180.1
177.2
162.6
187.7
<
186.7
—
Miscellaneous
WHOLESALE PRICES—U. S. DEPT. OF LABOB—1926=100:
lending
704
684
41,521
40.355
1,219
1,482
1.3&3
■
$313,000
products..
; 3 "Foods
;
,
;
i
I
i: Hides and leather products-.....:
Textile products.
FUel
? ^Metal
and
and
80,974
58,912
228,489
248,907
45,383
171,571
132,515
44,890
54,000
181,000
$994,000
Housefurnishings
(, Miscellaneous
Special
156.6
141.5
197.2
>
196.9
196.6
176.3
136.0
,
137.1
135.6
.
145.1
1
145.1
144.7
131.0
June 19
j
'
'
'
'
'
121.1
120.9
121.4
115.8
-
'
*
products
182.7
181.6
178.6"
$955,441
'
153.0
152.5
142.7
159.3
June 19
V-;'
31
may
f
c-*
4
•.
4;^.
$941,020
v
LIMITA-
.
'
V*
(000's omitted):
be outstanding
$275,000,000
$275,000,000
$275,000,000
252,236,480
at any one time
252,239,912
258,343,439
Outstanding—
;
Total
public debt
1-Guaranteed obligations not owned
gross
by
i
the
74,596
■'Treasury
Total
public
obligations
gross
anteed
subject to
debt
and
75,418
177,295
guar¬
$252,311,677 $252,315,331 $258,520,730/
public
debt
debt obli¬
limitation.'.—
828,043
..
832,390
/
/
392,349'
161.5
153.6
159.5
158.7
158.8
158.5
157.8
141.1
June 19
149.5
149.3
149.2
132.1
Grand
tot^J outstanding
$251,482,910
$257,628,335
$23,516,966 -L $23,517,059
$17,'371,61^
$251,483,033
142.9
June 19
;
May
that
As
gations not
June 19
All commodities other than farm
products
All commodities other than farm
products and foods
of
amount
—
face
Deduct—Other outstanding
:_June 19
articles
^Revised figure.
Total
DEBT
166,094-
122,527
124.3
June 19
goods
Raw
Manufactured
104.5
157.1
June 19
:
commodities.
materials
Semi-manufactured
138.4
157.6
...June 19
products
groups—
148.6
133.7
STATUTORY
GOVT.
; • TION
169.4
148.8
133.8
S.
.
I
allied
188.6
148.5 ?
134.0
June 19
products
| i Building materials
19
June 19
June 19
lighting materials
and metal
Chemicals
-_.._.___lJune
U.
$299,690
$296,509
I -
82,000
232,000
132,000
institutions—
Total
commodities
•■
'
•
All
•;f Farm
98,253
BANK
of
April (000's. omitted):
Savings and Loan Associations——-——
Insurance companies
Banks and Trust Companies
———
Mutual Savings Banks
INDEX—1926-36
Jung 19
...
41,607
96,344
673
NON-FARM
IN
HOME
—
41,794
/
89,035
39,070
FINANCING
ESTATE
BOARD—Month
1,853
38,269
____
pounds)———-.^--
of
96,430
April:
(thousands of pounds)
(thousands
284,357
1,048
■,
COM¬
(thousands of pounds)
die.
382,640
308,071
128,963
1,281
—
pounds)
of
438,082
225,461 ,4
(DEPT.
Shipments,
—
i
338,531
111,789
passenger cars
trucks
(thousands
AREAS
'(tons)
vehicles
of
motor
NON-FERROUS
185.7
ASSOCIATION:
number
—
;
34,587 '
'
sale
for
STOCKS—Month
81,890
36,-750
4
34,661
(25)
Average
449,000
460,000
OF
'
(125)
(25)
Railroads
\
•
t
•
516,000
80,602
231.4
Percentage of activity..
Unfilled orders (tons) at
;
7,583,000
18,482,000*
31,782,000'
$250,576,000
45,941
274.7
Production ,(tons)
JV'
38,468,000'
55,083,000
(short tons)__i.__rJ
own use
231.4
Orders received
''
$112,363,000
April:
266.5
NATIONAL
•*
n,
41.704,000
3.10
2.94
2;81
Industrials
242.9
of
277.8
Farm machinery.
*
.
19,438,000
-.•v.
(DEPT.
(DEPT.
June 26
.,
Fertilizers
!
,
$307,077,000
'.
June 26
.
.
k *
-
April:
!
•..
434.5
of
June 26
...
Metals...
j
PRODUCTS
June 26
...
"Building materials
Chemicals and drugs
; Fertilizer materials.—
i
,
44,446,000
June 26
Textiles..^..-—-.iL——.*...-..^.--____^_._._..^___June
I >
,,
7,963,000
40.498,000
WROUGHT
Insurance
—
.....
Miscellaneous
j
'
TO
(in pounds)
producers'
i;Banks
...
...
•1.219
$123,590,000
booked; less' cancellation
(short tons)___:
Unfilled
orders,
end of month,
(short tons)
t
....
*1.356
LIFE
OF
Orders
COMMOD¬
—.:
_______—
Livestock
Fuels
■
2.56
2.97
;b
". 1
i
2.81
2.76
GROUPS—1933-39=100:
i
*1.291
H<
April:
All groups combined...June 26
'
;
•
2.99
2.76
3.21
! 2.98
2.83
......
PAYMENTS
COMMERCE)—Month
Shipments
3.20
V-V.'V
...
'
1.363
$273,084,000
MAGNESIUM
2.83
3.34
U
Foods
——i—
]'•: Fats and oils.....
i
Farm products
-
,
i_
For
2.86
Railroad
ASSOCIATION—WHOLESALE
>,
(short, tons)
3.34
FERTILIZER
\r
(short; tons)
2.76
.June 29
INDEX BY
40.0
:U 36,706,000
For sale
.1. ^; 3.00
INDEX__
v.\
r.--—
2.25
2.39
...June 25*
Aa__
ITY
■
40.4
1.229
1.......
COMMERCE)—Month
__June 29
.June 29
NATIONAL
of
Shipments
Bonds
COMMODITY
mi
116.41
._.June 29
MOODY'S
■
120.84
.June 29
Aaa.
Public
w»«»i
*39.6
1.299
•'
.....
120.22
MOODY'S BOND YIELD DAILY AVERAGES;
S.
"
•-
*48.26
40.3
V
•
goods
,
MALLEABLE
U.
;• >
v
>
Total
118.60
::June29.
w——
/• v
;
u.—
Policy ^dividends'
111.25
Group
Industrials
1- '«:t-: fi-)
*54.82
39.6
Annuity payments
Surrender values
121.88
29.
-June 29
iJ.
!■:.
Grmip
Group...
,
71,773"
21,631,000
*51.68
,
39.9
i.- ,V:;v:
goods
Disability -payments.
116.80
117.80
Jnnft
'
t
8.7,423
248,925
!, v
54.91
Matured endowments
103.82
June 29
.
Baa—
•
100.98
.June 29
'•
....
? Puhiln
100.79
.June 29
Aaa.—
.
■
.
■
■
.......
21,694,000
48.60
INSURANCE—BENEFIT
Death
10.500c
MOODY'S BOND PRICES DAILY AVERAGES:
Railroad
70,345
$51.89
INSURANCE—Month
.
A
280,544
75,816
:
POLICYHOLDERS—INSTITUTE
14.800C
! *-
"
'J,1 ^
'
LIFE
-
,
97,459
250,908
.
...
Hourly earnings—:
All manufacturing
;
Durable goods
copper—
'
1,842,566
S.
May:
Durable
$40.66
Sv Export refinery at
.June 23
Straits tin (New York) at
■
June 23
Lead (New York) at-.—.
;
.—.June 23
Lead (St. Louis) n.t
i nn,.'_TV!-,!.
.Tuna 93
Zinc (East fit. I.nniR) at.
•;
■: ' :■
" ...
:
r.Tiinp.93;
Average
807,135
1,926,659
2,860,277
"
U.
—
of
manufacturing
goods
3.24473c
QUOTATIONS):
Aa.
f-29,730
2.195,881
,98,893
,
manufacturing
June 22
J.
>:
2,232,274
HOURS—
Month
;
Hours—
ton)
M.
47
•;:.r;Vr;
of
ESTIMATE
—
Durable goods
Non-durable goods
June 22
Domestic refinery at
,
LABOR
11,002
Earnings—.
'r
100
AND
AVERAGE
OF
June 22
ton)
gross
DEPT.
•
111
EARNINGS
WEEKLY
4,674,748
..
METAL
j
6,076,023
t
PRICES:
(per lb.)
Ecrap steel (per
».
5,159,255
BRAD-
&
.June 24
Finished
!
AND
INC.
COMPOSITE
Pig iron
■1
5,256,698
v
FAILURES
IRON
.June 26
443,271
—
as
In
FACTORY
Electric output (in 000 kwh.)_
226,483
*
COM¬
May
of Apr.
as
OF
„
EDISON
11,203
'•1
.
Month of
April
consuming establishments as of Apr. 30
public storage as of Apr. 30
Cotton spihdles active as of Apr. 30
256
414,794
2
In
—w
880 317
377,861
273,687
......i.
....
consuming establishment
public storage
Linters—Consumed
604,367
23
America
RUNNING
—
v
670,771
397,062
(net. tons)^.
(net tons)...
In
SYS-
AVERAGE=100—
Central
Lint—Consumed
12,840,000
•
DEPARTMENT
—
(net
MERCE
13,410,000
MINES)
(net• tons)!—i.,
tons)
Africa,
40,892,000
MINES):
Bituminous coal and lignite (tons)
June 19
Pennsylvania anthracite (tons)19
K-.'
and
COTTON AND
COAL OUTPUT
OF
!i>>.
To South
$143,470,000
96,319,000
June 24
(BUREAU
To North
$160,248,000
.June 24
municipal
Federal
EXPORTS
tons)
June 24
—---,
18,971,177
196,365,295
Month of April:.
U. S. exports of Pennsylvania anthracite
(net
June 24
,
$215,336,472
34,559,626
329,894,119
901.296
698,067
-.
■/J *
•
v
and
906,948
NEWS-
construction
State
906,774
June 19
construction
Public
4
[
S.
CONSTRUCTION,
.
47.943,465
305,096,193
"
CIVIL
6,563,055
Balance
able
♦Revised
fflice^ amount of obligations ^su¬
under "above
figure*
authority.——~i_'
34
(34)
THE; COMMERCIAL
&f FINANCIAL
CHRONICLE
tolerate.
America's Best Export
;
pair.
(Continued from page 6)
v
in
the
that
sense
know
we
sale
of the product you
of this
zens
and
citi¬
as
:
Things
wasn't
were
curiously reversed in
know it today. It
are
as we
many
that we
ago
years
looking with
scorn upon
the
Russians and the Communists for
their Godless point of view—their
materialistic
approach
to
the
problems of living.
We accused
them of selling humanity short
When they said that the needs of
every man could be fulfilled once
he had
It's
a
how
things have
Now, America is
the lanttthalrholds out a promise
full stomach for
a
which
■
can
ward providing enough food to
feed starving peoples; ours is the
y
only "industrial"plant which
put
;
the
v
back,
on
industry
of
the
can
world
its feet; we are the great
breadbasket of the earth..
.
respect,
;
we
In this
not only operate in a
1
seller's; "market, but
of
time
viding the wherewithal to back
up that claim.
As
result, the Communists all
a
through Europe today don't prom¬
ise food to the starving prole¬
tarians.- They don't promise un¬
sold material gain.
They can't.
Because America is close to being
sole source of exportable mate¬
rial well-being.
But, in France today, the Com¬
-
"
munists have convinced about 25%
8
of the population of the Tightness
of their cause.
And in Italy, in
spite of the set-back at the recent
elections, the Communists or the
Communist sympathizers number
over 30 % of the pulation,
They
acquired this following by prom¬
ising the people something our
ancestors fought a war to achieve'
almost a 175 years ago.
They
promised the people of Europe lib¬
eration from, tyranny, and free¬
,
dom from
foreign domination.
I think it's about time
up
woke
we
to the realization that
can't
we
rally the people of the world to
our
democratic cause by promis¬
ing them just bread. In the long
run, we can't buy people's politi¬
cal
sympathieswith
material
benefits alone..
This is not to say that we must
hot pay careful attention to the
economic plight of. the peoples of
the world. All talk about freedom
and democracy will fall on unre¬
sponsive
whom
an
if
ears
such
empty
talk
the
is
directed
stomach.
shall Plan is
a
*
to
person
The
has
Mar¬
good beginning.
,
We must stand squarely for as¬
sisting those nations which have
been
devastated
by
the
recent
the
experts at promising a "pie in
the
sky."
continent of the world.
man
believe* basic to the peace*
But it will do the job only if
back up our own promises.
It
is„ easy to. say. that the. Commu¬
the
world.;
an
lievers in? democracy owe :a great
debt of gratitude to Senator Van-
denberg for- his strong and cour¬
ageous. attempts
the. past few
weeks to keep, America's . word to
the- rest of -the world.
If
get the aid program off
we will be on our
way to winningr: the/ peace; But
it is important to remember that
the European recovery program is
just a beginning. It is not an end
we
the* ground;
in itself,
We
must
that' the
gram
of
absence of
world-wide
tion will leave
a
stand willing to assist, all men
everywhere who aspire to human
wp
four
the
promised
We
dignity.
freedoms and i a a; sense? we prom¬
One* World
ised
ise—or at
we
so
many
good that prom¬
least to try harder than
to be.
seem
not
time has' come
years ago.
The
for us to. make
•
•
•
This, I believe, is the greatest
selling mission confronting Amer¬
ica today.
What have- we
er?h ^ *<- •1
election
an
we / can
year,
We cannot stop at economic as¬
We will have to
sistance alone*
than radios, refrig¬
erators and washing machines.
export
more
What kind of other exports?
Well, we have a vast reservoir
of things to send abroad.
Even
now,
we
ship
overseas
many
things that don't classify strictly
as economic/ goods. and services;;
■; I'nx sure for r
example that; we
export the best brand of bobbyideas
the
And
world
we
has
ever
export the finest
summer
don.
We
in power, or we can
turn-them out for another set of
hold office
office
holders.;
vote- for
any
even
a
*
reconstruc¬
vacuum
of des¬
,
in most
of
candidates, we can,
states, write in the name
We
/
'
export many things which
can't be bought with dollars and
mapping
out
ancl take
his>
his
convention
the se¬
of the polling booth.
Having a free range of choices
polls is one thing;. But per¬
haps even more important is the
fact that whatever party wins the
election, the other party is not
doomed
to
extinction.
We
hold
dearly the right in a democ¬
to organize an opposition to
the governing party; And we will
oppose
with all our vigor any
force which tries to liquidate op¬
racy
,
position.
k- Some of
as
a.
have the knowledge
perience of the people themselves. of^howrto
blow/our civilization;
experience comes off the. face of the
map before we
ideas
which
arev swapped
and reach that goal. That is
why time
argued anjd hashed over until fi* is of the essence.
pally democracy works.
If we are to have One
World,
But with this democratic open
each nation, must make one
con-^
hearing and "free trade in ideas" tribution: its national
sovereignity.
go : certain responsibilities.
We And the. one tenet of basic agree¬
can afford to wait until every¬
ment must be freedom of com¬
body has spoken his piece
subject.
But we cannot
on any
munications.
affbrd
world once the problem is
S.
U.
Must
Lead
As
dom-is one*which is -always ready
to
clear.
free people, we must take
the lead in extending these same
a
buy.
The climate of opinion,
.
is ripe for challenging new ideas.
After a long depression and an
in
Extending. Freedom.
,
The market for peace for free¬
the luxuty of inactioP: or titf' a
lack* of moral leadership in the
equally long. w&r* the people of
the world have lost many of their
inhibitions in- thinking.
We lhust step up the tempo of
everywhere. We
the sales message America has for
abroad the kind of
world order which will allow men people everywhere who are hugto live by the basic standards gry for, freedom; and peace: and^
dignity. .Our
Age
is
which have given men freedom human
freedoms to
men
seek
must
marked
here in America.
I don't mean
We
the
.
are
on
the
great promise.
threshold
It is
of
a
privilege to
pefiod/when it is pos¬
sible to achieve it., It, Is. an obli¬
live- in -
a
a
gation to help achieve it.
—mmmrnrnm*
.
«
Wm. B. Robinson
& Ga. Opens
CORSICANA^ TEX A- William
Robinson
B.
investment
is
engaging
business-
in
under
an
the;
fair andfree elec¬ firm name of Wm: B. Robinson &;
But to be able to determine for
themselves in
by jet .speed and atomic
decisiveness..
by this that unless
that
what
a
unless
flourish
form- of
such
a
government
climate
in at least much
can
of" the
world, it may not flourish in our
part. .of the world forever.
I
would state flatly that free com¬
munications
is the
,
Co. from offices at 111 East Collin.
ting
f
men
The
free.
United
Nations- -reports
that roughly; 50 %
66
of the world's
Beacbri/Street/fHe was former*/
& Nightingale,
ly* with Learoyd
Milo Ebley^ Jr» Opens
key to peace.
It< is >the one basie- means- of set*
>
LUBBOCK, TEX:—Milo Rob¬
ert Foley, Jr.v/is engaging in a.
securities business from offices in
the Lubbock Hotel,
population is illiterate — they
can't/readp or: write; .You ^ may
us
ihight take voting
Or
as an
ob¬
Building,
Trade
in Ideas
I Charles Bigley Dead
justly ask;; well", how:, can. these,
Chas. W, Bigley, who was with
people be- communicated with?
W. E. Burnet & Co., New York
How in ; the i world carr we- ever
City, until his retirement in April,
ask: these people to make intelli¬
died June 28 at his home,:
% / :
gent decisions for themselves? I
t
r
•"
good many; other think: there are many ways to
things which the totalitarians can¬ tackle thisc problem; And, £; think
not offer. We have in this country we will ultimately lick it.
But,
what Justice Holmes chose to call, oner' way I know we wiiLneyer
We
One
frightening thing is
now
,
matter of fact.
Free
-
they want and to be able to solve
their problems in a free market
Wmi" Stanwood m Boston
place of ideas, are* universal prin¬
BOSTON, :MASS.~r,William E.
ciples toward which' all men on Stanwood is engaging in the se¬
earth can aspire. Moreover, 1 hold curities
business from offices at
at the
very
achieve
The
right to hold
and I cast his own vote in
crecy
we
four decade^
or
century; to;
World.
that
decade:
us a
a:
tion
nominating
• own
of,
The individ¬
nominee.
our own
.
■"
executive
And out of that
of these
any
The
in Lon¬ ligation to be discharged.;
lay claim to truth is it i% a precious privilege;
With Dollars
pro¬
„■
sales campaign. We come up with
answers which stem from the ex¬
.
of
such
an
Swedes' come
up, with..a
Frgnkie .Swensen the - equal of
dozen shades in between.
We Frankie Sinatra they can't qual¬
can vote for the regular" parties, ify/in: the same league; T^on^t
the Democrats or the Republicans. mean that all the people of the
earth should overnight become
|-Orrwe can ^vote for Henry Wal¬
lace's
party, or the Vegetarian gadgeteers like we are. I don't
mean
that
the Chinese- should
Party; or the Socialist Party, the
Socialist-Labor Party, the Prohi¬ trade in their rice-eating habits
bition Party, and probably three for/the meat, and potatoes and
gravy diet of Americaor four more. And if we-don't like
at the games
can
dent immersed in his studies,
a
ual American has the
,
increasing, exporting a good deal of our cul¬
productivity, both at home and ture when; "Forever Amber" is
abroad. And this productivity and reprinted in 37.
langues, and disc
development and expansion will jockeys the world over play Bing
bring in its wake an increase in Crosby's records.
living standards for everyone.
It
Exporting Things Not Bought
is
important to recognize
era
home, but
live democracy here at
: We
can cast a
shade of- political
nists promise bread and can't de¬ opinion. We can mark our ballot
liver, but what: about ps if/we for a Candidate who might seem
promise almost $6 billion in aid to be living back in straight-laced,
mid-Victorian; days. Or we can
over the next 15 months and then
renege on our promised yet? this vote for the most wild?eyed rad¬
is/ what is happening today in ical any land has ever seen any¬
parts of the-Congress. I think be¬ where. Or we can vote for a half-
we
this
of,
only
government of our own choos¬
ing. -We can keep those who uow
at least the- other democratic
tions.
than talk.- We have to
more
show- the world that we not
and reconstruc¬
recovery
find ways now of extending recip¬
rocal trade between ourselves and
work toward
dp
program which Paul Hoff¬
is administrating today, is, I
The
tion
heavy-weight fighters to be found
anywhere. We will probably ex¬
port the ablest Olympic athletes
na?>
.
point to our fair and free elec¬
tions. We have the right to elect
known.
in. every
We have to
from
In
ERP Will Do Job
cally
areas
can
are
sox
backward-
Communism
of
seeds
grow.
The Communists might
not be able to provide it, but they
' We should be ready to as¬
sist the development of economi¬
war*
ranging
.
,
.
folk
our
totalitarianism
we have, for
being, almost a mon¬ They, voted the Communists down
last April; 18 and voted in- the
opoly on the production, distribu¬
Christian
Democrats.
tion and marketing of the prod¬ moderate
Our side had won a victory Over
uct.
v
the forces of despair.
I think .there is a very important
We've Stolen Communists'
lesson in the Italian victory. That
Thunder
In "short, we've stolen the Com¬ lesson is this: people who are de¬
munist's thunder. We can promise pressed economically and see no
hope for an improvement in their
a chicken in every pot-for men
lot any time in the near future
everywhere. And what's more, we
provide a fertile; ground in which
can go
a long way toward pro¬
the
of
some.
traditions,
,
men every¬
Ours is the only country'
even make a start to¬
where.
Even
and"6
,
been reversed.
of
forms
..
full stomach.
strange
cents.
ways
.
democracy, have for
the rest of the world.
the world
be
goes
,
export
and I,
will
It
democratic
thrive.
by giving one fact and one fore¬
cast, I'd Jike to return to my ear¬
The
vacuum
to the heart of matter: the form in which they
spirit. We may are presented/
nave large "idea" machines which "B-Once we cut off the channels of
propagandize our people in mass communication between men, we
circulation newspapers and mag¬ have cut the breath of freedom.
-
jur
jitterbug contests to marble azines. But at least we have more Freedom as we know it suffocates
tournaments,.
A nd everything than one of them. And we have when the facts aren't available
from spelling; bees—to: our latest them for j ust about every shade an&wheri. new .ideas; can't be pro¬
No more than a, few months ago,
You can still buy posed,
novel device,: the quiz showy I'm of opinion.
we
I think there is one idea which
learned;— or should, have potsure quiz shows don't also the "Daily Worker" and the "Wall
learned—a very profound lesson
overriding today that we
.Street Journal"
on
the.
same is so
come under /the heading of mate
along these lines*
I am thinking rialistic
must push it for all we are worth.
things, what with the newsstand in New York City.
about the recent election in Italy,
There are certain responsibilities
We don't have pat answers to
person who can name the mystery
in which the moderate, democratic
that go with livingin a democ¬
melody and thus stop Ithe music every problem which* our govern¬
iorces won a smashing-victory at
winning a small, private Marshall ment hands down to the people racy. We must show that lout; of
the • polls;" As innumerable sur¬
our
democratic system we v can
Plan all for? himself!
»,y v\
;
as gospel truth—to the exclusion
veys
among
the Italian people
We. export all these and much of every other possible point of provide the moral leadership, the
has told us, they were in a des¬
more.
v
'
•
View. We have one basic "line" statesmanship if you will, to help
perate plight at the close of the
But
perhaps we have fallen which We do insist upon, however. guide the rest of the world.
war.
This doesn't mean that we are
They had great shortages of short in
exporting the most pre
We insist that every man have
the self-annointed few on earth
food, were plagued by runaway cious
and most abundant and most the right to
disagree with the
and are beholden unto ourselves
inflation, and worst of all, they
important asset we possess: human nexj; and that he be free to put
saw no way out of their miser¬
to come. up. with the only answers
forth his pwn solution to "any
dignity and freedom,
able .plights
there are.
But we do have an
\ .
y To;* some people, even - here in problem he has in common with
As a result of this depressed
America, the words freedom and his neighbor. We- do;- of - course, obligation/to provide leadership*
state, ih the- first postwar elec¬ the
Leadership in ideas as well as in
dignity of the individual have ask that this free thought and
tions of ,1946*. the ' Communists
loans and ? g|f$s of turbo-electriQ
become shop-worn and are-passed free; speech be -responsible.
' We generators and new kinds of fer¬
were^able to. win over 38% of the
will send a man to prison who
over lightly—-words reserved for
tilizers.
vote,
and
became the largest
the use of political orators or ad¬ cries "Fire" in a crowded theater*
One such commanding idea was
single party in, all of Italy.
<
mitted: sentimentalists. But, every¬
From the different shades- of Wendell
But, then, in the latter stages
Witlkie's concept of One
where
in the
world * from thb
thinking among our diverse peo¬ World. / In,: some quarters these
of-1946,/ and through 1947, Ameri¬
tropics of Indonesia to the battle¬ ples, we come up with common
can
aid to the Italians began to
days, it is popular to look with
grounds of the Middle East to the solutions to our problems as a
pour in,' Most important of; all;
scorm on the' idea ;Df One World}
old capitals of Western Europe
democracy, We come out with a
earlier, this year* before the elec¬
We must not be too easily per¬
and here in bur own Jandr'jnfen democratic fabric woven by a
tion in Italy, we- passed the Mar¬
are
stirring, in their .quest for worker on a machine, and a suaded; that the concept of One
shall
Plan./ The
Italians
saw
World must be abandoned because
freedom.
farmer tilling his crops, and a.
some hope for their economic sal¬
illeeipsdifficult of, attainment on:
The Communists know this and
vation.
housewife, doing" chores- for ' her because
They saw the/means to
quite obviously we don't
they talk a'great deal hbout lib¬ family and her home, and a stu¬
put themselves back on their feet.
have One World today. It might'
eration and freedom. We have to
all
Now that I've made my gesture
toward earning my speaker's fee
theme:
a
by the disorder and confu¬
sion;/: on which Communism; and
pressions—no, 1 can't forecast that.
lier
Such
iilled
de¬
Thursday, July 1, 1948
1
f
/j"'?1
^
-
have {a
"Free trade in ideas."
This is
an
chain of
human freedom:. It is something
which
one-party rulefs. cannot
important
link
in
any ;
solye it is to cut off from these
backward
| .and
;
underprivileged
peoples the free flow of ideas, no
..With Paine, Webber Rrm
.
.(sneelal
to
The
Finahciax.
Cotqnxcwc),
•
MILWAUKEE, WIS.—Harold d.
Main is now- associated with Paine,,
Webber,
Jackson - &: Curtis*
North Broadway.
He
was
.
605
former¬
ly with the Milwaukee Company.
*-
Volume
168
Number 4712
VTHE
COMMERCIAL
&
FINANCIAL
CHRONICLE
'
Strength and Weakness of Business Situation
(Continued from page 8)
ments in the
Engianders
yet settled with John L. Lewis.
LIf employment holds up, We can
i be fairly sure that the amount of
income
derived
from
wages
■consumers' resistance. The
and
simply aren't spending
did
on
,
•
long time.
Our
Now let's turn to. another element Of strength in the business
been
—including
any
policy
previous
in
and
end.
Unlike
the
has
sudden
days preceding
1929 when the stock
market
was
industry., Liquor pumped up by successive injec¬
night clubs, fur coat tions of
credit, credit extended to
and
manufacturers
producers
and
other
many
sellers
or
the
of
so-
called luxury goods have
felt a, slump.
buy securities today is negligible
and the trend has been downward
the
technological improvements
have* come along, it is not
.surprising to find that industry is
planning to spend this year more
..than it did last year for plant and
equipment. Moreover, the higher
of credit sales in the retail stores
is up and the frend of cash sales
is down. Eventually, we shall face
.
wages go, the more profitable it
becomes to introduce ;labor-sav-
securities
bought
on
margin
uninformed speculators.
ting machinery and equipment of
all, kinds andthismeana increased
I capital investment for business.
Now let's take a look at what
the consumer is doing. Many have
been impressed by our Federal
goods
his
fore the
Reserve department store figures
in. recent, mopths showing that
credit than
\
prosperity.
A
definite
stand
is
also
any
event whether additional control
of
bank
credit
constitutes
the Federal Reserve's demand for
ory
such
on
trend
measures
Of
more
a
hope
course,
addition
panied
of
gains made by the
durable goods stores—those sell-
-
.
ing things like automobiles,
frigerators, building materials
cost
.
•
creasing but sales of non-durable
goods, and of some durable goods
like
radios,
.
even
with
;
cases
,
are
last
even
only
year
breaking
in
or
falling
some
behind
last
year's volume.
by
gressive
for
Warren
the
be conferred
'strength
.
country
diew
important
is
struction
to
be
element
found
in
of
con-
and
housing. For the
whole, the number of
as a
homes started
so
far this year
-is
running ahead of the number
started during the same
period
last
and
year
situation
for
the
most
tight
supply
building
ma¬
terials—or at least the high
prices
,for building materials which re¬
flect the tight
supply situation—
appears still to be with
Reenf orcing
i.
strength
the
are
estate
of
two other factors: (1)
expansion
real
us.
these: elements
of
and
consumer
credit
and
the
(2)
faster
use
in" the
pansion and the
use
ex¬
of past sav¬
ings will be dissipated, but they
'appear to have enough strength
>
left
in
them
to
last
for
a
while
;-;ye
of
weakness, such
I When
we
direction
prised
review
working
.in
all
of
an
should not
we
to
,
note
that
these
way
the
up. The cost of
tinuing s. its
movement.
7
•;
Weak
What
the
about
picture?
to
living is also con¬
creeping
upward
than
we
ous
holding-of-the-line against
not furthered by the
ticket, particularly when accom-/
greatly-enlarged responsibilities to
on
prospects
the
of
the Vice-Presidential
demands
for
Federal
on
office.
the
other
audience of
some
all
into
have
see
in
depres¬
bigger stake
a
a
the
every
was
the Democratic as well as
State of California.
,
*
Under our system of American
democracy, as a practical matter
the electorate is not given the
privilege of designating the policies
on
own
dollar
which
the
nation
shall
follow.
It
merely
can
Despite this fact, only
dealer
one
ception, and I think this would be
true
of
the
stores*in
great
all
reason
for
Importance of Budget Surplus
As much
like it
as
you and I will dis¬
personally, it will be
thing, to have
a
a
good
treasury surplus
of receipts oyer
expenditures.
If
we cannot reduce
expenditures—
and
it
doubtful
seems
be
able
to
the
anti-inflation
themselves
save
program
money
at
and
the
time if they made it attrac¬
tive for people to pay cash instead
same
of putting it on the cuff.
our
foreign assistance
we
any
military
programs—
shall have to raise
by taxation.
This matter
of keeping a budget
surplus is
more important than at first
sight
,
infer
modernize.
based
of
over
cannot
in
a
reduce
period
doubtful
the
of
public
prosperity
that
we
shall
be able to reduce it at
any other
time.
Having
however,
a
budget surplus is,
important
I
have
said
not
expand
Expansion, soundly
careful
consideration
trends
several years,
extending
should, in my
opinion, be carried out if
perma¬
nent
financing is available. Like¬
wise^ modernization, especially of
the type that will save labor and
is not only
increase labor productivity, is not
the public
argument to demonstrate that
we
upon
what
should
long-term
debt, although it should require - only
and
no
from
business
more
revenue
it appears to be.
It j
a
matter of reducing
to
that
we
very
for
another
campaign
speeches
of
the
winners
of
between
the
attempt to divine more or less intuitively
the many varied pressures of office.
Party conventions—and
how they will act under
Important P, S.—Our democracy has,
nevertheless, worked!
)■
7
Looking Through the Crystal Ball
(Continued from
in bonds, and the red light of this
indicator should be respected.
Public
Coming In
page
tive currency controls, leaving it
to Great Britain and other coun¬
tries
7(3) I
am. always impressed by
extent to which the public
is in the market.
During the rise
the
3)
is not too strict about the
respec¬
to
decide
for
themselves
when and how revaluation should
take place.
The pound sterling
may struggle along for still an¬
June, the public other six months but this
possi¬
has been on the selling side as
bility or rather probability will
evidenced by the odd lot statistics
be hanging over our market for
which we compute every day.
the next 12 months.
Hence it is interesting to observe
from March into
that the trend which had been
"minus" for* the last two months
is
beginning to swing over to the
"plus" side; in other words, the
public is beginning to come intc
the market just a little bit. That
of course does not mean that the
Coal Settlement—Not Bullish
(7) Settlement of the soft coal
dispute should not be regarded as
bullish
just because it has been
the price that has been
is considerable.
It means
settled;
paid
higher prices for coal and greater
going to collapse, but consumers' resistance.
tinue their reluctance to borrow
Eventually
it does show that the public is
we
must reach the point where
from banks for the
purpose
of now
getting into shape for that because of
consumers resistance
carrying inventories which they
second
leg of the bull market, prices cannot
do not absolutely need and that
go any higher. Once
characteristics of which were dis¬
the reluctance of the banks to ex¬
prices start to go the other way
cussed a few paragraphs above
and liquidation of labor costs do
tend credit for this purpose is
(4) Our recurrent tension with not go along contemporaneously,
wholly commendable.
Soviet Russia in Berlin may be
most, if not all, coal producing
It would be incorrect, however,
a passing phase and yet it
may be companies could get into very bad
or
make
large cuts because of
that
the
majority of
every dealer
lines,
choose
personalities—heavily discounting the previously-made platforms and
3%
sales.
of
.
,
almost
preserva¬
us. to do to help preserve -a: satis¬
factory level of prosperity.
"'
of
of the weak ele¬
States
our
business
about what it is within
then it is
side
of
realize in
"
certainly-do not
remind, a New England
dealers
front, in addition to vigor¬
philosophy which has entitled
left-wing support for his place
Republican tickets in his
cost of credit sales to the
or
on
From what I have said so far,
a high level of business ac¬
you would be correct, indeed, to
tivity in this country and I want infer that I
believe it would be
to end by saying a few
things desirable for businessmen to con¬
debt
I
cents
His record shows ag¬
in housing, and for
intervention
the domestic
furtherance ot subsidy abroad—a
him to
farm¬
tion of
if
Elements
collapse
We
then
February, did not persist and that
prices, including those of automo¬
biles, have subsequently moved
have
the
United
sion.
be
drop in
wholesale prices, which
began in
t-
of our system and
of life would like more to
enemies
than
and
the
to
durable goods field
disclaimed
all
in¬
are, from a interviewed
long-run point of view, real ele¬ terest in making credit sales and
ments of strength if we are look¬ stated
that
he
extended
credit
ing toward the preservation of a only as a means of meeting com¬
stable high volume of business
petition.
The
retailers
of
this
activity. There is nothing that the country could add their support to
upward
sur¬
the tighten¬
as
up on credit and the return
real competition in the non¬
shall
forces
extended
some
of
the, deflationary in six gave any discount for cash
forces elements of
weakness, ac¬ and only One dealer in seven
tually I think we might well re¬ charged any interest on book ac¬
verse the
order. Some elements counts.
Yet without a single ex¬
savings accumulated
the, forces, exerted by credit
of
strength in4 the current situation
past. We do not know when
of
stores
the
credit
and
ing
Construction and Housing
Another
of
Will
steadfast
a
to
other vast social benefits
by 170 dealers showed that the
average
Although I called some of
inflationary forces elements
of
,
ers
>
And Weakness
re-
and
hardware, and the like. Retail
sales are holding
up and even in-
^
Reversing Order of Strength
,
to be taken.
government encroachment, is
Mr.
'
; enormous sales
are
control, or the contradict¬
low interest rate, be chosen?
reserve
policy of bond price-support -and
Socialism and
people retailers, in particular, do not get
are living from hand to
mouth, rid of the costly practice of sub¬
"department store sales are barely however, and also because of the sidizing their charge customers,
:
holding their own with last year. operation of our tax laws, the rate or at least of forcing their cash
7 As we have pointed out in our of
saving is going down. It is not customers to subsidize their
bank's
"Monthly " Review"
for surprising, therefore, to find in¬ charge customers. In a great many
May, the slowing down of depart¬ creasing difficulty in
financing the stores it costs you no more to buy
ment store sales does not mean purchase of new
homes, especially on credit than to buy for cash, but
that retail sales
generally have at today's inflated prices. The it does cost the store more to sell
weakened seriously. Department bgnks are
A study being
doing their part by the to you on credit.
store sales reflect, for. the most
mqre judicious financing of real made. by. the Vermont Agricul¬
"part, the. sales of the so-called estate to reduce, or at least to tural Experiment Station with the
non-durable goods like
clothing moderate, the inflation in that aid of a grant from the Federal
«and shoes. They do not reflect the field.-*' '7
Reserve Bank of Boston on the
p i
questions as whether
inflationary threat; and in
an
Warren
goods or houses. I cannot under¬
p stand why, at a time like this,
v*
due
the
did be¬
we
war.
Because more and
State, in having piled up large budgetary surpluses and kept
purse-strings fairly tight during recent periods of general
own
the
by
of
on
How Much Intervention?
y
We must
Discourage Credit Expansion
reckoning because we
have
been
We should discourage, by all
living beyond our
means. That day may not be close means
possible, the further ex¬
by, however, because we are still pansion of credit to consumers for
selling a smaller proportion Of our the purpose of buying durable
day
a
and despite
"7:7 7:7''. t/7' ;\V' t..'/
courageously
bear in mind that it is not
very far from the tempting
expedient of "just a little management if needed" to whole-souled
embracing of full-employment-guarantee philosophy, and under-consumption-oversaving and compensatory spending theories.
In fact,
it can be authoritatively reported that Governor
Dewe.y feels that he
has already demonstrated the best side of
compensatory spending in
already during the-last two
years.
There
is certainly less danger now than
I have already mentioned the there has been in
past booms that
fact that probable too,much of the
props will be knocked out
current buying is supported by from under the level of business
the expansion ,of credit. The trend because of a sudden
liquidation of
that
economize
Perhaps it is too much to expect restoration of the convertibility
of the currency and the return to a real
gold standard (despite the
platform's "sound currency" plank). Perhaps it is too much to expect
a specific and
forthright abandonment of economic management and
planning. But the absence of at least some specific and auto¬
matically disciplining check on interventionism, as at least a budget
to be balanced at all costs—not just when convenient—and a definite
program for ending our printing-press creation of
money, would
breed confidence in the new Administration's
willingness to subject
itself to an automatic discipline.
•••
.'
+
j
securities
a
to
unpopularity.'.'7-':7::'-v7?7
.
has
reduc¬
which
willingness
likely political
feature of most
a
booms
in
helped to bring them to
machine tool
stores
than
far
so
speculation
which has been
has
so
Reserve
successful
ing the
jewelry, industry has fallen
behind the procession and
our
.
•
.! Federal
textile items at retail have
all reflected the weak situation in
Capital Expenditures
-
be deemed unwarranted, let there be a firm statement of the
useful under
more
circumstances
efficiency, and a housetop-heavy bureaucracy. If this conclusion
opposite
cleaning of the present
other at their disposal.
and
-
,
present
textiles,
clothing, and the sale of clothing
picture; expenditure by industry,
for plant and equipment.
Considering the under-maintenance
of our plant during .the
1930's,
Xthe depreciation of the war, and
.
tool which is
the continuation of "the best" of the New Deal's
but carried out with business-like
measures
It, therefore, gives to the
monetary authorities a flexible
purpose..
the non-durable goods industries.
L
purposes
does not have to be used for this
are
time. The manufacture of
.
"
nor
.
,
a
much
they buying as
shoes, nor are the
men either, for that matter.
The
principal non-durable ♦ lines in
New England—textiles, especially
woolens, and shoes — have been
feeling buyers' resistance for some
two-thirds of the country's total
income. Despite the drop in farm
prices that we had early this year,
farm income is also running ahead
7. of last year. Even that forgotten
man
of
the
1940's, the stockholder, is getting a little better
break, at least in terms of dollars,
than he has had for
last,
many; new
,
:
women
as
clothes this year as they
new
Observations
gives to the Treasury ■;-7,7CContinued from page 5)
,7•,/•■ 7/
and the Federal Reserve System
lower taxes (albeit far milder than the
promises made by President
one of the most
important means Roosevelt and the Democrats in
1932). ; it is this writer's own con¬
of checking further inflation, if
viction, gleaned from Mr. Dewey's past statements and policies
further
inflation •, should i be
a
and the beliefs of his advisers, that he is far more
government in¬
problem. It is a means which can
terventionist-minded than is generally believed; that we will see as
be used for this purpose but which
his main
are
gloomy
will increase and don't forget that
wages and salaries make up over
;
i
apt, to look first to
side of things. You
the
35
It
reason.
have all heard about and noticed
'salaries and the amount of spending of such wages and salaries
•
i
picture, because New
(35)
desirable
but -is
necessary
market
of
a
is
sufficient
importance to reach
"crisis situation" where it could
have
on
temporary adverse effect
security prices.
a
(5) Then there is currently
ever
present that subconscious fear that
the Democrats might in despera¬
tion
try
to
draft
Eisenhower
at
their convention in July.
(6) It would be
sometime
now
and
that
the
should be pushed vigorously.
Programs which increase produc¬
end of the year, sterling revalua¬
tion is not unlikely and the prin¬
tivity, which increase the amount
of-production for every dollar
would be those which
spent for wages or raw materials,
are not only sound
business; they
are
also desirable
ing prices down
means
or
for keep¬
reducing them.
cipal commodities to be
industry is mighty close to being
over.
One/fundamental characteristic
of all stock markets is that dras¬
tic
my guess
between
shape almost overnight. This pat¬
can be applied as an object
The
sellers' market in business and
tern
lesson to all other, industries.
affected
are
world-
declines
seldom
if
until there has been
ever
an
occur
excess
on
the
upside.
The lack of public
participation in the market thus
far, indicates
a
nical situation.
hangover
very
strong tech¬
"You can't have
without
first
a
getting
priced in terms of sterling. When drunk," and thus far the market
the 16 foreign delegates in Wash¬
has barely had one cocktail.
So
ington have completed their ERP
arrangements
it will be found by and large the outlook contin-i
that
on
the
surface
this
country
ues
bright but not brilliant.
36
(36)
THE
.••.
COMMERCIAL
•
.
*
r
:•
.v •
•
Securities
•
Affiliated Fund,
June
10
// $1.25).
.
filed
Inc.
5,332,673
Underwriter—Lord,
J York.
Price, at market.
Air
•
1,060 shares of capital
value), of which 600 shares will be sold
publicly at $100 per share.
Underwriter
Burnham &
<
'
/
'.'
Air
-
American Bosch Corp. (7/19)
June 2 filed 535,882 shares of class B
($1 par)
Lehman Brothers
for
agreement
like
a
number
of
shares
Underwriter—None named.
through McDonald & Co.
•
to
Harold /F.
>
the
construction
and
equipping
(par$l). Price—$8
foon, McCormick & Co.
barlow
May
A
share.
per
Seelijg Manufacturing Co., Ripon, Wis.
^24' (letter, of notification) 8,820
shares ($1 par)
stock.
Price—$8 per share.
Underwriters—
McMaster Hutchinson & Co. and Charles W. Brew & Co.
Nov. 21
•
Batesviile Telephone Corp.,
Batesviile, Ind.
25 (leter of
notification) $200,000 of 4M>% first
mortgage sinking fund bonds, due July 1, 1973. Underwriters—City Securities Corp. and Engineers, Inc. Pro¬
ceeds—To redeem outstanding 5% first
mortgage bonds
and to pay for improvement
program.
r'
•
•
ceeds—For general corporate
purposes.
Berry (D. N.) Co., Denver, Colo.
May 27 (letter of notification) 133,000 shares of
stock. Underwriter—John G.
Perry &
common
Co., Denver. For
"working capital.*
/
California Liberty Mines
Co., Carson City, Nev.
June 14 (letter of notification)
50,000 shares of common
stock (par $1) to be offered
publicly at $5 per share, and
250,000 shares to be issued to the organizer and promoters
securing the lease and option to purchase the mining
properties of the company.
Underwriters
Le Fevre
for
—
new
common
Power
&
for
Light Co.
Service
•
•
/
off bank loans and for working capital.
Flotill
(par $1).
Underwriter — Floyd D. Cerf Co., Chicago.
Price—preferred $10; common $6.
Proceeds — Stock¬
holders will sell 260,000 preferred shares and 250,000
common shares and company
125,000 preferred shared
and 75,000 common shares.
Company's proceeds will bq
used for general corporate purposes. Effective
May 5.
;
Fundamental
v
June
Proceeds—
Underwriter
Ohio
($100
shares of
share);
common
•
of the
stock.
UnderwriterA-None.
Co., Martin, Burns & Corbett, Inc., Berwyn
Mullaney, Wells & Co., William R.
Staats & Co., Van Alstyne, Noel & Co.,
Dempsey & Co.,
A. G. Edwards & Sons, Herrick, Waddell &
Reed, Inc.,
Hiekey & Co., Mason, Moran & Co., O'Neal-Alden &
Co.; Inc., Wilson-Trinkle & Co., Inc. and Holton, Her-
rington, Farra Co. Proceeds—To
pany's treasury for expenditures
-Nevada
$1,000
bonds.
with
obligations, working capital, etc.
vately.
Globe-Wernicke
Dean Witter
v
.■
Boston
'
•
•;
•
Private IVires
Pittsburgh
-M
'•■
to
•
Ir.giU
Chicago
•>.!
Offices in othet- Principal Cities
•
-
■
14
&
on
the basis
Price—Par.
of
one
new
O.
share for each six shares held.
Underwriter—None.
Proceeds—To
•
•
Gulf States Coffee-Cola
Co., Hattiesburg, Miss*
June 28
(letter of notification) 25,000 shares of common
par
($10 per share).
Underwriter—
None; Proceeds—For; working capital,
stock.
•
•'
Price—At
Hawaiian
June 29
ferred
filed
stock
Electric
Co., Ltd., Honolulu
mm
CO
K.
ded V&6S
Co.
j
DEALERS
■.?
I
UNDERWRITERS
;
•
(8/2)
HONOLULU
•v
~
50,000 shares of series D cumulative pre¬
(par $20) and 100,000 shares of common
York
Exchang"
NEW YORK
LOS ANGELES
redeem
part of preferred stock.
and
Telephone BArclay 7-4300
"•
Norwood,
fouiv
'
SAN FRANCISCO
Co.,
-
,
San Francisco Stock Exchange
Los Angeles Stock Exchange
WALL STREET,
price of certain real
(letter of notification) 42,410 shares of common
(par $3.50) to be offered to common stockholders
MEMBERS
-
veneer
June 11
stock
SECURITIES Iff
,
new
(no
fi
Wires
com¬
i
AND
New York
equipping of their
the
connection
Savannah, Ga., the cost of whicli
Issued in part payment of purchase
PACIFIC COAST
Private
in
estate.
Equitable Gas Co., Pittsburgh, Pa. (7/7)
May 6 filed $14,000,000 first mortgage bonds, due 1973
Underwriters—Names to be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
The First Boston Corp.; Kuhn, Loeb & Co. and
"Smith,
Barney & Co. (jointly); W. C. Langley & Co. and Glore,
Forgan & Co. (jointly); Harriman Ripley & Co.; White,
Weld & Co.
Proceeds—$14,000,000 of proceeds, plus
563,000 shares of new common stock, will be delivered
to the 'Philadelphia ..Co/' in ; exchange for h'atural
gas
properties now under lease,^ outstanding capital stock of
Equitable, notes and other claims owed to the Phila¬
Exchange
Honolulu Stock Exchange
made
Co., Cleveland
^
j
(letter of notification) 2,500 shares of common
par value).
Underwriter—The Chicago Pneu¬
matic Tool Co. plans to buy issue for resale.
Purpose-
(letter of notification) $300,000 of 15-year 5%
debentures, dated July 1, 1948.
Underwriter—None.'
Proceeds—For new plant and working capital.
New York Stock
reimburse
18
stock
Being placed pri¬
Dehydrating Process Co., Boston, Mass.
'Direct
and
Glidden
June
June 21
j'JHAWAIIAN
building
approximately $1,650,000.
was
bond with 1,000 common shares. Underwriter
Cunningham & Co., Pittsburgh. To receive cur¬
rent
the
and plywood plant at
Price—
per
—S. K.
stock, will be publicly offered after the registrar
Cruttenden &
Dayton Consolidated Mines Co., Virginia City,
of
f
T. Moore & Co., Inc.,
May 14 (letter of notification) $100,000 first lien sinking
Lund" convertible 5% bonds due 1953 and 300,000 com¬
conversion
Ply&ood Corp., Louisville, Ky.
Underwriters—F. S.
Yantis & Co., Inc., W. L. Lyons &-Co., H. M.
Byllesby,
& Co., J. C. Bradford & Co.,
Crowell, Weedon & Co.,
Crompton Co., West Warwick, R. I.
June 25 (letter of notification) 2,128 shares of common
stock (no par value). Price—$60
per share. Underwriter
—None. Proceeds—For general corporate
purposes;
for
General
•
tion statement has become effective.
•
shares reserved
warrant to Allen & Co. associates. Warrants
exercisable op, or before June 30, 1950, at $4 per
none of the proceeds.
filed 100,000 shares of 5% cumulative convert¬
ible preferred stock (par $20). A firm commitment has
been entered into with a group of underwriters
covering
half of the shares, and these, together with the balance
Proceeds—To reduce bank loans, etc.
mon
^
June 25
/
per
*
Builders
share. The company will receive
Corp. Proceeds—For working capital, to be
par
& Co., Inc.
investment.
15 cents per
are
Community Loan & Finance Co., La Crosse, Wis.
June 1 (letter of notification) 2,000 shares of 5% cumu¬
Price—At
Hugh W. Long
j
(par $2).
Price — At
Supply Corp.
;' }'
June 21 filed 40,000 option warrants to purchase com¬
mon
stock.
Holders propose a public offering of such
warrants. The options were first acquired by Allen &
Co., underwriters, pursuant to an agreement with 23
stockholders of the company at 10 cents per warrant on
May 29, 1946. Later 8,000 options were transferred at
•
lative first preferred stock 731
—
Proceeds—For
General
Edison
used for construction.
4
Investors, Inc.
750,000 shares of capital stock
filed
15
market.
Co., Chicago, III.
June 29 filed $50,000,000 first
mortgage bonds, series N,
due June 1, 1978.
Underwriters—Names to be deter¬
mined by competitive bidding. Probable bidders include
Halsey, Stuart & Co. Inc., Glore, Forgan & Co. and The
First Boston
Products/Inc.* Stockton, Calif.
March 6 filed 385,000 shares of 60 cent convertible
pre¬
ferred stock (par $5) and 325,000 shares of common stock
capital stock, ($1
Cleveland,
Merchandise, Inc., /Denver, Colo.
(letter of notification) $300,000 of 5% serial de¬
Underwriters—Peters, Writer & Christensen,
Inc. and Sidlo, Simons, Roberts & Co. Proceeds—To
pay
Corp.
Inc., New York
common
Fiaks
bentures.
Common stock will be offered to
stockholders through subscription rights and to
and preferred stockholders through
Commonwealth
of
June 23
placed privately.
Corp.,
conversion
mon.
filed 40,000 shares ($100 par) cumulative
pre¬
Underwriters—Lehman Brothers; Glore, Forgan
Public
stock.
(72,000 shares of common to be reserved
the preferred.)
Underwriter—None.
Price—$25 a share for the preferred and $10 for the com-*
share held.
Coleman-Pettersen
Bellevue
Mountain Development & Power
Co.,
Carson City, Nev.
June 24 (letter of notification)
300,000 shares of common
stpck. v Price—$1 per share. Underwriter—None. Pro¬
of
Corp., New York City
36,000 shares of 5% cumulative convertible
preferred stock ($25 par) and 172,000 shares ($1 par)
June 4 filed
for each pre¬
common
for
(letter of notification) 3,330 shares of common
stock (no par). Price—$8 per share/ Underwriter—None.'
Proceeds—No purpose given.
common
June
share
.
First Guardian Securities
June 21
a
Underwriter—Keb-
one-tenth
common
plant and to pay present short-term notes total-*
ing $130,000.
*
; •
\
/; > '
;i
(Mich.) Machine Co.
(letter of notification) 10,000 shares of stock
to be sold at $5Vs each (market
price), for selling stock¬
holder. Underwriter—Charles E.
Bailey & Co., Detroit.
Ampal-Amencan Palestine Trading Corp., N. Y.
.April 7 filed $10,000,000 10-year 3% sinking fund deben¬
Palestine, $2,500,000 in
loans to transportation and industrial
cooperatives, and
$2,200,000 in loan to Solel Boneh, Ltd., for public works.
Bareco Oil Co., Tulsa, Okla.
"June 7 (letter of notification) 2,000 shares of common
Exeter &
April 15
selling warehouse.
stock
Wash.
i
stock (par 20c).
Underwriter — Pacific
common
June 24
Clinton
•
tures.
Underwriter—Name to be filed by
amendment,
if any is used.
Proceeds — $5,000,000 in mortgage loans
lor construction of housing in
and
common
ferred.
•
of
share
new
par). Underwriter—F. Eberstadt & Co. Inc.
For' investment. Price—Market.
(letter of notification) 8,500 shares of 6% cu¬
mulative preferred stock (par $10) and 9,500 shares of
common
stock.
Price—$110.20 per unit of 10 shares of
'preferred and 10 shares of common. Underwriter—None.
For
the basis of one-half share of
Chemical Fund,
Marlboro, Md.
—
Seattle,
Proceeds—For additions, extensions and improve¬
June 4 filed 669,975 shares of
21
tobacco
Inc.,
Proceeds—For investment.
Company ia
open-end management investment company,;
an
Co.
subscrip¬
privileges. Proceeds—For a construction program
and repair of flood damages. Expected
by mid-July.
4
'Proceeds
V
"
Power
tion
American Tobacco Growers
Corp., Upper
June
Fund,
ments to
common
Options will be sold
purchase commercial paper, make small loans, and for
incidental expenses.
•
Equity
!
June 9 filed 400,000 shares of
None.
to be
Plan Discount Corp.,
Baltimore, Md.
(letter of notification) 10,000 shares of 6% cu¬
mulative non-convertible preferred stock
(par $10); 25,000 shares of voting common stock
(par $1) and 100,000
shares of .class B no a-voting non-convertible common
stock
(par $2). Underwriters— None.
Proceeds —To
•
delphia Co. and to the Pittsburgh and West Virginia
Expected about July 7.
|
company.
common
American
June
-
Gas Co.
.
,
March 30 filed $1,500,000 Series E first mortgage bonds
and an undetermined number of common shares
(no
par). Underwriters of common—Coffin & Burr. Bonds
&
Smith.
Maine
I Central Vermont
Body Co., Cleveland, O.
June 23 (letter of notification)
option agreement grants
Robert W. Hadley a three-year option to
purchase 5,056
common shares at $12 per share and a similar
option
;
,
(
nied effectiveness of registration statement.
p.m, (EDT) July 19 at office of Department of Jus¬
tice, Office of Alien Property, 120 Broadway, New York.
Coach
.
ISSUE
Co., Dewar, Robertson & Pancoast.
Proceeds—For
property additions and expenses. On April 15, SEC de¬
Bids for the purchase of the stock will be received
up to
American
PREVIOUS
Proceeds—To develop;
&
3:30
•
•
Hampston Electric Co., Exeter, N. H*
(letter of notification) 8,125 shares of common
(par $20). Price—$33 per share. Underwriter—
Central
(jointly); Blyth & Co., Inc., and
Merrill Lynch, Pierce, Fenner & Beane
(jointly). Bids—
:;
•
stock
common
stock.
"
SINCE
Price by amendment.
Pro¬
ceeds—For construction *and repayment: of banktoans.,
Underwriters—Names to be determined by com- j
/ petitive bidding. Probable bidders: Glore, Forgan & Co..
-
.
Price, at market (about $4.39).
ferred
U.;..
i and
.
.
Northwest Co.
each
t
*
■
Registration
They bid $13.75, less $1.75 under¬
writing commission. Now expected on negotiated basis
through Blyth & Co., Inc. Offering—To be offered to 6%
preferred and common stockholders for subscription on
working capital. Underwriter—Frederick
Co., Boston. ■
' , - . ♦
&
Thursday, July 1, 1948
r
by the
-',
-inent costs and
*'<C. Adams
'
Nov. 10 filed 160,000 shares ($10 par) common. Under¬
writing—Company called for competitive bids Dec. 8,
1947 and only one bid, that of Blyth &
Co., Inc. and
Kidder, Peabody & Co. was submitted and was rejected"
Lanes, Inc., Portland, Me.
/• April 26 (letter of notification) 10,000 shares of preferred
stock and 10,000 shares of common.
Price—Preferred,
$10 per share and common 1 cent. For plant and equip1
1
;Cal-Tex Oil Corp., Stockton, Tex.
/' Central
Co.
Proceeds—To be used to engage in limited
helicop¬
ter operation over routes which the
company is presently
certificated to fly or in limited
helicopter commercial
work.
ADDITIONS
*
'
Proceeds—For drilling.
par
—
/
in
CHRONICLE
•
•
June 24 (letter of notification) 50,000 shares of common
stock. Price—At par ($2 per share). Underwriter—None.
Commuting, Inc., White Plains, N. Y., (7/6)
(no
♦
Now
INDICATES
•
|
'June 17(letter of notification)
stock
FINANCIAL
MacClain and George B. Muser.
claims.
I
shares
of common stock (par
Abbett &; Co., Inc., New
Proceeds—For investment.
^ C
&
<
•
.
Rnsto" *
"Yo^
sTot*
c^°
Volume
168
Number 4712
THE
COMMERCIAL
held.
now
11
July 2,
1948
Common
—Capital
June 1 (letter of
Equitable Gas Co.----—.——-Bonds
lative
New Jersey Power & Light Co., Noon(EDT)_Bonds
Northern States Power Co. (Minn.)—Bonds
on
Pennsylvania RR., Noon (EDST)—-Equip. Tr. Ctfs.
Public Service Electric & Gas Co
notification) 10,000 shares of 5%
>
Kay Jewelry Co. of San Jose, Calif.
16 (letter of notification) 500 shares
June
Equip. Tr. Ctfs.
Mfg. Co
June
tablish
a
Corp.
Keller &
National Fuel Gas Co.-'
DebenturesA
Telephone* Co
-
:
>'
•*»
■
•
-*
•
•
Co.,'. Inc., ..Boston, Mass..
July IS, 1948
Refining Co.———Pfd. & Com.:
Roosevelt Oil &
Tanner & Co
Preferred
1
:
Westinghouse Electric Corp.
-—Debentures
July 19, 1948
American Bosch Corp.; 3:30 p.m. (EDT)-CLB Com,
Shoe Corp. of America—^..Preferred
preferred stock and 89,500 shares (lc par)
will be sold in
Kresge (S. S.) Co.——-Common
New England Power Co.—
——Bonds
July 22, 1948
Old North State Insurance Co.—,
unit and
$7.50
;
Co.
•
stock (par $20). Offering—To be offered common stock¬
holders &t the rate of one additional "common share for
■each
seven
case.
common
one
shares
share
held.
of
preferred for
Price—Par
in
each
Underwriters—Dillon, Read & Co. Inc. and Dean
Proceeds—To pay off short-term promis¬
Witter & Co.
and
Heidelberg Sports
Pittsburgh,
Enterprises,
Anna
E. Kresge.
Underwriters—Lehman
Watling, Lerchen & Co.
Pa.
shares of class A common stock and
5,000 shares of class B common stock. Price—At a pro¬
posed maximum offering price of $100 per share. Under¬
writer—None.
Proceeds—$600,000 to be used for spec¬
tator grandstand and balance for related purposes.
Heyden Chemical Corp.,. New York, N. Y-
June 29 filed 59,579 shares of cumulative preferred stock
(no par) to be offered common stockholders in the ratio
of one share of preferred for each 20 shares of common
five shares will be entitled to
to
Inc., Harrison, N. J.
~
a
certificate entitling him
credit of $100 against the purchase of a new dining
a
manufactured
car
work
by
the company, or against repair
alterations performed by the company for the
or
purchaser.
Credit certificates
issued
to
any
one
pur¬
chaser of said preferred stock shall be limited to a total
of $1,000.
Price—$100 per share. Underwriter—None.
Proceeds—For expansion of manufacturing facilities.
Lawrence Warehouse Co., San
Becker
cumulative^ convertible preferred stock (par $25), and
4,000 shares of common stock "(no par), to Ije"reserved
Price—By amendment.- Underwriter—A. G.
& Co. will aequife: the - unsubscribed shares,
proceeds—To be used in part for improvement and ex¬
pansion of manufacturing facilities.
<9
Hunt Machine Works, Inc., Greenville, S. C.
21 (letter of notification) $300,000 of '5Y2% serial
sinking fund coupon debentures (convertible). Price—
June
At par.
Underwriters—Frank S. Smith & Co., Inc.; Al-
for conversion
ceeds—To
fund present
unsecured
bank
indebtedness
©nd for additional working capital.
of
of
notification)
said preferred
10,000
stock
shares
on
of
6%
the basis of
one share of common for each 2Vz shares of
preferred.
Price—At par for preferred stock. Underwriter—Wagen& Durst, Inc.; Bingham, Walter &
Hurry, and
Lester & Co. all of Los Angeles.
Proceeds—To retire
bank loans.
McAleer
June
/Manufacturing Co.* Rochester,
•
Mich.
(letter of notification) 7,000 shares of common
(par $1).
Price—$5.50 per share.
Underwriter—
C. G. McDonald & Co.
McCall
Idaho-Montana Pulp & Paper Co., Poison, Mont.
May 17 filed 100,000 shares of 4% cumulative preferred
June
stock
Corp.
Proceeds—No purppse
given,
(8/4)
erect and operate a bleached
200-ton per day
sulphate pulp mill with
a
capacity.
Illinois Bell Telephone Co., Chicago, III.
(par $100).
Underwriter, none. Offering—To be offered pro rata for
subscription by shareholders of record June 2. Ameri¬
can Telephone and
Telegraph Co. (parent) will purchase
•387,295 shares. Proceeds—To pay advances from Ameri¬
Telephone and Telegraph, its parent; any remainder
improving telephone plant.
cif proceeds will be used in
y
.
87,167
shares of
value) to be initially offered to
held.
stock
common
common
(no
par
stockholders of
July 20, 1948 on basis of one new for six shares
Warrants will be transferable and will expire
Aug.
3.
Underwriter—White, Weld & Co. Price—By amend¬
ment,
Proceeds—-With a $2,500,000 20-year 3% bank
loan, to pay bank loans, to restore the working capital
position of the company and to provide funds for ex¬
pansion.
•,
June 4 filed 389,995 shares of capital stock
can
filed
Illinois Power Co., Decatur, III.
June 30 filed 690,098 shares of common stock (no par
value). To provide for conversion of 345,049 shares of
outstanding 5% cumulative convertible preferred stock
(par $50) which the company intends to call for redemp¬
e
Maduff
Electric
Corp., Los Angeles, Calif.,
June 21 (letter of
notification) $75,000 of 6% notes.
derwriter—None. Proceeds—For working capital.
Un¬
holders of record May 22 in ratio of one new share for
each 2% shares held.
Rights expire July 10. Unsub¬
shares
are
market
price
then
to
be
offered
prevailing
Exchange. Underwriter—None.
loan and for working capital.
to
public at current
on
the Detroit
Stock
Proceeds—To repay a
Midwest Packaging Materials Co., St. Louis, Mo.
June 25 (letter of notification) 3,500 shares of common
issued
fit of Ira B. Rosenblum.
to
be
conversion.
Underwriting and offering price
filed by amendment.
Proceeds—To redeem the
preferred stock and for construction.-'• 1%.!•
*
Indiana
Gas
Indiana
&
Water
Co.,
Inc.,
v
Indianapolis,
:
June 21 filed 60,000 shares of additional common stock
($10 par) to be offered to its stockholders on the basis
of
one
new
share, at $12.50
per
share, for each 10 shares
New Jersey Bell Telephone Co. (7/13)
11 filed $55,000,000 40-year
debentures, due July
15, 1988.
Underwriters
Name to be determined
through competitive bidding.
Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co.
Proceeds—To
pay off advances made by American Telephone & Tele¬
graph Co. (parent) for construction and general
purposes.Expected about July 13. ■
;
ate
New
June 8
&
•
(par $5).
Price—At market.
Proceeds—For bene¬
Underwriter—Edward D. Jones
Co.
National
.
Electric
Jersey Power & Light Co.
corpor¬
*
•
-.
*
(7/7)
filed
$6,000,000 first mortgage bonds, due 1978.
Underwriting—Names to be determined through com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Kidder, Peabody & Co.
(jointly); Lehman Brothers; Harriman Ripley & Co.;
W. C. Langley & Co. and
Glore, Forgan & Co. (jointly);
Union Securities Corp.
Proceeds—For construction and
Expected about July 7,,
North Canadian Oils
i
Limited, Calgary* Albert*
March 11 filed 903,572 shares
(no par) common stock.
Price—70 cents each. Underwriter—rF. H. Winter &
New
York.
Co^
being sold by
by stockholders. Proceeds for pur-
Proceeds—875,000. shares
company and 28,572
chr.se of
property and drilling.
North
Inca
Gold
Mines, Ltd.
March 10 filed 666,667 shares of common stock
(par.
$1)„
Underwriter—Transamerica Mining Co., Ltd., Toronto*
1*
Proceeds for exploration and development.
Northern States Power Co.
(of Minn.)
(7/7)]
June 3 filed $10,000,000 first mortgage
bonds, due July 1,
1978, and 200,000 shares of cumulative preferred stock
(no par).
Underwriting—Names to be determined by
bidding.
Probable bidders: Halsey, Stuart
Co. Inc. (bonds only); Smith, Barney & Co.
(stock
only); Lehman Brothers and Riter & Co. (jointly both
&
issues); Merrill Lynch, Pierce, Fenner & Beane; Glore,
Forgan & Co. (bonds only); Kidder, Peabody & Co. and
White, Weld & Co. (jointly on bonds). Proceeds-^-For
construction and to pay
Products
Corp.,
off bank loans.
Expected about
July 7.
•
O-Cel-O, Inc., Buffalo, N. Y. (8/3)
June 24
(letter of notification) 3,000 shares of preferred
(par $45) and 6,000 shares of common stock (par
$1) to be issued, in units of one share of preferred and
tw6 shares of
mon
common to be offered pro rata to com¬
stockholders of record July 2, 1948, at $50 per unit.
Rights expire Aug. 2. Corporation will also offer
Pittsburgh,
Pennsylvania
June 23 (letter of notification) 2,000 shares of common
stock (par $50).. Price—$37.50 per share, .Underwriter—
Singer, Deane & Scribner. Proceeds—To executors of an
estate.,: • i'jV,
pro
rata
to the
common stockholders who exercise said
right any
units offered but not purchased by other stockholders.
Priced-Preferred at $45 per share and common at $2.50
share. Underwriter
None. Proceeds
For expan¬
per
—
—
sion of plant facilities for the manufacture and sale of
cellulose products.
Old North State Insurance
•
stock
Ex-
June
•
tion at $52.50 per share and accrued dividends.
Each
preferred share is convertible, into two common shares.
Public offering is contemplated of the common stock not
in
com-
stock
Masco Screw Products Co., Detroit, Mich.
June 4 (letter of notification) 141,600 shares ($1 par)
common stock.
Price—$1.75 per share. Offered to stock¬
scribed
series B,
by/
bidding.
competitive
record
($100 par) and 500,000 shares ($10 par) common
stock.Underwriter — Tom G. Taylor & Co., Missoula,
Mont.
Price—$300 per unit, consisting of two shares of
preferred and 10 shares of common stock. Proceeds—To
24
(7/20)
pected about July 20.
15
stock
/
•
seller
«ster G. Furman
Co.; McAlister, Smith & Pate, Inc.; H?
T. Mills; W. F. Coley & Co.; V. M.
Manning; McCarley &
Co.; G. H. Crawford & Co.; and Thos. L. Lewis. Pro¬
(letter
in the
.
improvement of property.
June
<
' I-vW//
Corp.
that portion of the New Hampshire section of the Bel¬
lows Falls-Pratts J unction line owned by the Connecticut
Francisco, Calif.
stock held.
18
Research
—
Broth¬
Proceeds — Of 27,955
shares for general corporate purposes.
Kulfman Dining Car Co.,
June 25 filed 2,041
4
of
June 21 (letter of notification) 1,500 shares of
$5 cumula¬
tive preferred stock (no par vaiue). Purchaser of each
Inc.*
&
River Power Co. and for
repayment of bank loans.
000 shares for account of the estate
Price—By amendment.
Proceeds—For investment. '-
Weld & Co. (jointly). Proceeds—To purchase
properties
of the Bellows Falls Hydro-Electric
Corp., to purchase
Price—$1 per share.
(S. S.) Co., Detroit, Miclu (7/20)
June 29 filed 167,955 shares of common stock (par
$10),
-of which 27,955 are for account of the company and
140,-
sory notes and the balance for construction.
4
Calif., Sheboygan,
Kresge
ers
Securities
Probable bidders - include—Halsey,
Stuart
& Co. Inc.;
The First Boston Corp.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; Kuhn,
Loeb & Co.; Salomon Bros. & Hutzler and Union Secur¬
ities Corp. (jointly); Kidder, Peabody & Co. and
White,
Underwriter—George A. McDowell &
Proceeds—To certain principal stockholders.
cities.
and
petitive
shares ($1 par) common stock.
Underwriter—Heronymus & Co., Sheboygan, Wis. Proceeds-^-To open and equip bottling plants in California
——Cpmmon
-
Corp.
June 22 filed $11 million first
mortgage bonds,
due
1978.
Underwriters—To be determined
March 22 filed 1,500,000
August 4, 1948
Research
New England Power Co.
share.
per
&
Underwriter—National Securities & Research
Price—At market.
—For investment.
To start industrial loan business.
Kool-Aid Bottling Co., Inc. of
Wisconsin
Pfd. & Com.
shares held
(29,500 shares)
share of each at $10.01 per
common
Kent-Moore Organization, Inc., Detroit, Mich.
June 29 filed 56,000 of common stock
(par $1). Price—
—Capital
O-Cel-O, Inc.
ZVz
stock.
common
Securities
filed 38,700 shares in First Mutual Trust Fund
National
shares will be sold to officers
common
and directors.
August 3, 1948
<each
60,000
one
•
August 2, 1948
Hawaiian Electric Co., Ltd-——--—Preferred
McCall Corp,
Preferred and
units of
■
>
series, Low-Priced
Bond series, Institutional
series, Balanced series, Pre¬
ferred Stock series;" Incorix^
.series, Stock series- Specu-j
latiVe; series, Selected Groups series, Industrial Stocks
series, Low-Priced Common Stock series, Automobile /;
series, Aviation series, Building series, Chemical series,
Metal
shares, Oil shares, Railroad shares, Railroad
Equipment shares, Retail Trade shares and Steel shares.
Price—At market; aggregate amount not to exceed
$4,935,000. Underwriter—Sponsored by depositor. Proceeds
Kennedy Systems Corp. of Tennessee,
Memphis, Tenn.
June 9 * (letter of notification) 29,500 shares
($10 par)
No underwriter.
July 20, 1948
17
filed 500,000 shares of 21 separate funds
National Securities series, viz: Bond
..
.
'
June 7
,
;
plant expansion,
filed
(par $1).
"
'
May 28 (letter of notification) 9,300 shares of cumula¬
tive participating preferred ;stock and $200,000 of 20year 5Vz% debentures, due 1968.
Underwriter—General
Stock & Bond Corp. Proceeds—For
working capital and
.other corporate purposes.
V'
Debentures
-
4
National
stock
jewelry store.
For
stock ($25 par), and to purchase
48,500 additional shares
of Iroquois Gas Corp.
Expected about July 13.
(par $100), 1,000 shares of class B pre¬
(par $100) and 10,000 shares of common
stock* (par $1).
Underwriter—None.
Proceeds—To es¬
Common
—
additional
ferred
July 13, 1948
Proceeds
working capital.
Brothers (jointly).
Proceeds—To purchase 320,000
shares of United Natural Gas Co. common
man
.
preferred stock
1948
Winchester,
Fuel Gas Co., New York
(7/13)
A
$13,500,000 sinking fund debentures, due
1973.
Underwriters—Names to be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Harriman Ripley & Co. and
Glore, Forgan & Co.; Goldman, Sachs & Co. and Leh¬
class A
of
Co.,,; Inc.,
National
June
cumu¬
^
Product
37
(letter of notification) 30,000 shares of common
be offered publicly.
Price—Par ($10 per share).
and increase of
participating preferred stock ($10 par) to be sold
sell the issue.
Fruit
Underwriter—None.
behalf of three stockholders.
Preferred
Wheeling & Lake Erie Ry.,
Noon (EDT)
New Jersey Bell
stock to
Price, par. Underwrit¬
ers—Slayton & Co. have been employed as agents' to
"
States Television
June 15
Irwin-Phillips Co., Keokuk, Iowa
July 7, 1948
United
National
(
July 6, 1948
(37)
The company's parent,
Service at the rate of 9/50 of a share for each share held
on the record
date, July 2, Proceeds—For construction.
Air Commuting,
July 8,
FINANCIAL. CHRONICLE
Public Service Co. of
Indiana, .pldns to acquire, only.. 62 of. the 26,701 shares
to which it would be
entitled, but has agreed to purchase
all shares not-otherwise subscribed for
by stockholders.
Stockholders, other than Public Service Co., will be en¬
titled to buy the additional
26,369 shares of Public
NEW ISSUE CALENDAR
Plywood, Inc.
.
&
Co., Greenville, S. C.
(7/22)
June 24 filed
100,000 shares of capital stock (par $5).
share.
Underwriter—First
Securities
Corp, Durham, S. C.
Offering—26,667 shares will be
initially offered on a "when, as and if issued" basis;
J3,333 shares will be purchased by. underwriter for pub¬
Price—$15
lic
or
will
per
private offerings; and the remaining 40,000 shares
be
publicly
offered
on
a
"best
efforts
basis"
4
on
pppppletion of the subscription of the first 40,000 shares
and the
....
company's receipt of
/
■
(Continued
a
license to do business in
on page
38)
,rv,
..
38
THE
(38)
(Continued from page 37)
•
Carolina.
North
'
;
poses,
Pacific
June 10
Proceeds—For
general business
'•
Pacific
rights to subscribe to 100,000
& Telephone Co., San Fran.
two-thirds
•
Pennsylvania Industries Corp., Pittsburgh, Pa.
June 24 filed 214,987 shares common stock
(par $10) to
be exchanged for the stock of Pennsylvania Industries,
Inc. (old company), viz: 21,190 shares in exchange for
old
stock and 193,797 shares will be
offered by the old company to the holders of its out¬
standing $6 cumulative preferred stock.
common
company
.
•
Phaneut Hospital,
June 22
Inc.,
Mass.
Brockton,
(letter of notification)
1.200 shares of common
Price—$100 per
stock and 600 shares of preferred stock.
share
both
for
stocks.
Underwriter—None.
To enlarge and equip hospital and for
•
Proceeds—
furnishings.
June 24 (letter of
notification) 6,000 shares of 5% cumu¬
preferred stock. Price'—At par ($50 per share).
Underwriter—Wright, Wood & Co.
Proceeds—To Ac¬
quire common stock of Philadelphia & Western RR.
lative
•
i
Plymouth Rubber Co., Inc.
June
(letter of notification) 1,000 shares of common
Price—$5.12 y2 per share. Underwriter—John B.
Dunbar &
Co., Los Angeles, Calif. Proceeds—To selling
stockholders*
>
-
~
•
;
Plywood, Inc., Detroit, Mich. (7/2)
June
17
(letter of notification) 10,000 shares of common
(par $1).
Price—$3.12 V2 per share. Underwriter
—Baker, Simonds & Co.
Proceeds — To go to John C.
stock
Emery, Jr., selling stockholder;
•
Portsmouth' Finance Co., Portsmouth,
Proceeds—For
stock.
Price—25
cents.
•
Underwriter
—
R. L.
For working capitaL
Underwriters— Names to be determined
through competitive bidding.
Probable bidders: Morgan
Stanley & Co.; The First Boston Corp.; White, Weld &
Co. and Union Securities Corp. (jointly).
Proceeds—For,
property additions and improvements.
Expected about
July 7.
•
Radio
Systems, Inc., Cleveland, O.
June 24 (letter of notification) 17,500 shares of
stock
(par
evidencing right to subscribe to
None.
30,
stock for each
seven
one
shares held
1948.
Price—$4.50 per share.
Proceeds—For working capital.
as
of record
Underwriter—
individuals and
shareware held by eight
the estate of another, now deceased. For
N
per
rahan & Co.
Roosevelt Oil & Refining Corp., Mount
Pleasant,
Michigan
(7/15)
June 22 filed
135,000 shares of 6% cumulative convert¬
ible preferred stock (par $12.50) and 242,000 shares of
common stock (no par value).
Offering—All of the.pre¬
ferred
shares
and
44,000
common
shares
are
to
be
of¬
fered
publicly, 135,000 common shares to be resumed
conversion of preferred stock and the remaining
63,000 common shares are to be purchased principally
by officers and employees. Underwriter—F. Eberstadt
for
& Co.- Proceeds—Plus
$1,300,000 bank loan to acquire
168,422 shares of $1 par Roosevelt Oil Co. common stock:
at $9.04 per share, 2,500 shares of Simrall
Corp., no par
capital stock, at $444.45 per share, and 1,000 shares of C.
L. Maguire, Inc., no par common
stock, at $631.45 per
share, for a total consideration of $3,265,110. Expected
about the middled of July,
-^
a
former holders of
,
fcrnais, undistributed earnings and other funds cif fhe
jcoihpany and its subsidiaries, and about $125,000,000
from the sale of additional securities
at, a later datef
purchase one share of stock for each warrant held at
$3.50 per share.
tive preferred stock (par $100). Price, par. Underwriter
—Fidelity Securities & Investment Co., Inc., Asbury
Park, N. J.
Working capital.
Steak *n
Probable
underwriters: Halsey,
■First Boston Corp., or
stock of the Southeastern
common
Corp. dissolved June 27, 1947. Warrants are exercisable
between July 1, 1948-June 30, 1953, and holders may
Continental
Stuart & Co. Inc., Thq
Glore, Forgan & Co.
Motors: Corp,
June 25 reported proposed offering of 300,000
icommon stock in August.
Underwriter—Van
Noel & Co.
shares of
Alstyne^
Proceeds—For additional working capital.
Du- Mont
0
-
(AilanB.)
Laboratories* Inc.
r
r'
-
\
Stockholders will vote July 22 on creating 150,000 shares
of 5% cumulative convertible preferred stock f par $20 )i
JPrice—Expected
Noel
&
Co.
at
and
par.
Gearhart
Underwriters-rVan Alstynei,
& Co., Inc.
Proceeds—Fof
general corporate purposes.;;;.
Shake, Inc., Bloomington, III.;
1
participating
:•
♦-
•
*
•*"
I
- —
New
preferred
stock,
($1
160,000
and
par)
shares (50c par) common stock, of which 40,000 will be
sold and the remainder reserved for conversion. Under*
writer—White & Co., St. Louis, MO/ Price—$8 for the
preferred stock and $2.50 for the common. This stock
ts being offered by stockholders who are members of
the Belt family.
Tabor Lake Gold Mines/ Ltd.,Toronto,Canada
shares (par $1) preferred stock.
Price—60 cents
ments.
Daniels
?
share.
a
J.
&
Co.,
Toronto,
Canada.
Proceed*—For mine develop*
-
■
Indianapolis, Ivtcfr47/15)
dividends.
To be offered in Indiana only.
Un¬
derwriter—City Securities Corp.
Proceeds—To retire
$225,000 of promissory notes and for working capital. •
•
Television Fund, Inc., Chicago, III.
24 filed 4,987,500 shares of common stock.
Price
—Proposed* maximum aggregate offering price to the
public, $48,927,375. Proceeds—To invest in securities of
companies in the field of television, radio and elec*
June
Texas
,»
,
„
Gas
&
Electric
~V
financing will be necessary to provide funds for
contemplated plant additions aggregating about $3,000,4
000, according to the annual report, but the form and
finariein^ have fiotvyet
amount of the
Of said
been determined:
amount, approximately $1,900,000 will be spent
in 1948 and the remainder in 1949. Wtt
f.
I
J"fi
-
v
V
;
»
'v
i
pp/"'
f
»
•
New Jersey Power & Light Co. (7/7)
^ *
The company ^ ha^ issued invitations for bjd* to -be
ceived up to.noon (EDT) July 7 at its office, Room 2601,
.
61
Broadway, New York, N. Y. for $6,000,000 of first
mortgage bonds due 1978V Proceeds will be used to fi¬
company's construction program. Probable bid¬
ders:
(letter of notification) 3,000-shares of 5%%
cumulative preferred stock (par $100).
Holders of 492
shares of presently outstanding 6% cumulative preferred
stock will be offered in exchange 492 shares of the new
5% % preferred stock, share for share.
Price—Par and
accrued
Madison
nance
15
/,
,
.v
,
Halsey, -Stuart & Co. Inc.; The First Bostdn* Corp;
Kidder, Peabody & Co. (jointly); Lehman Brothers;
Langley & Co. and Glore,
Forgan & Co. (jointly).
and
Harriman Ripley & Co.; W. C.
Pennsylvania RR<V(7/7) >
Company/will^^ receive?^bids up fb
.
;
7
Pabst, Jr., Vice-President, Rooni 1811^
Bldg.) Philadelphia 4, Pa., for fhq
purchase of $9,900,000 equipment trust certificates,Series
T, dated May 1, 1948.
They will'mature $660,000 an¬
Broad Street Station
May 1, 1949-May 1, 1963/ Probable" bidders*
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; Har¬
nually
riman Ripley & Co. and Lehman Brothers
Harris, Hall & Co. (Inc.). 4
^
^
/
■.a
•
Union Oil Corp., Houston, Texas
,
at office of Geo. H.
r!
V "
v.;- ' ";•'/>
•'
'
\ V * (
Richmond Water
•'
, •
*
-i
/
Service Co.
■
*
(jointly);
\
•«
K '
t
V
,
June 18 (letter of notification) 800,000 shares of common
stock (par 100). Price—37.^0 per share* Underwriter—
June 24 reported considering refunding of
outstanding
bonds and preferred stock.
Traditional underwriter—r
Stewart J. Lee & Co.
W. C. Langley & Co.
pense,
Proceeds—For organizational ex¬
equipment, cost of drilling four wells and working
capital.
j
"h
Union-Standard Oil Co., Inc., Salina, Kan*
June 11 (letter of notification) $250,000 of common stock.
No
underwriter.
To drill test well.
United, Air
Lines, Inc., Chicago
June 7 filed filed 369,618 shares ($10 par) common stock.
Underwriter—Harriman Ripley & Co., Inc., New York.
June 22.
on
record
of
on
the
Offering
—
To be made to
basis of
common
share for
one
stockholders
each five
now
Proceeds — Expenditures for equipment and fa¬
cilities, retiring bank loans, and debentures.
•
United
April
Funds,
filed
13
Inc.
2.500,000
market.
United
Income
shares.
Fund
Underwriter—Herrick,
Waddell
&
Read,/Inc. Proceeds—For investment.
United
States
Television
Mfg. Corp.
(7/8)
June 16 (letter of notification) 10,000 shares of common
stock (par 500). Price—At market <about $3 per share).
Underwriters—Willis H. Burnside & Co., Inc., and Mercer
Hicks & Co.
Proceeds—For account of three selling
Stockholders.
•
Westinghouse Electric Corp.
(7/15.)
June 24 filed $80,000,000 of 25-year debentures and
900,000 shares of common stock (par $12.50).
Price — By
amendment.
Underwriter—Kuhn, Loeb & Co. (for de¬
bentures).^ Stock will be offered
to employees of (com¬
an employees' purchase
Proceeds—Of debentures to be applied to prepay¬
ment of bank loans, stock proceeds for
general corporate
pany
and its subsidiaries under
plan.
purposes.
•
,
_
j
„..
^
„
.
,...
;
William
S. Bowling and Francis E. Gardiner,
Bethesda; Md.
June 21
®
Syivania
!
Electric
•
,>
.
;,»»
,
Products, Inc.
On June 28 company announced as a second
step in its
financing program, plans are being discussed with Paine',
Webber, Jackson & Curtis for the sale of 200,000 shares
of common stock which is already authorized but uh*
issued. Corporation: is planning a Sizable expansion for
the production of cathode ray tubes for the
growing television market.
rapidly
■
*
Temporarily post¬
held.'
Price—At
June 3 (letter of notification) 7,000 shares ($3 par) com¬
mon stock.
Price—$11% per share. Underwriter—Han-
.
Proceeds
(letter of notification) 76,032 shares of capital
stock (par 100), reserved for issuance against 76,032
stock purchase warrants, issued or issuable to holders
poned
Riley Stoker Corp., Worcester, Mass.
V
share purchase warrants
common
Underwriter—Lee Higginson Corp.
Price—By amendment.
Republic Aviation Corp., Long Island, N. Y.
general funds.
[•
Commonwealth- EdisonCo.,Chicago,l II.
iln addition to the $50,000,000 of first mortgage bonds^
^series NV due :1978 filed June 29 with the §EC, the. com4
jpany expects to spend an additional $350,000,000 from
1948 through 1952 for its construction
program.
About
$225,000,000 will be provided out of depreciation ac-r
Southeastern Public Service Co.
share of
June 4 filed 42,000 shares ($1 par) common stock, issu¬
able upon the. exercise of stock options. V Options for this
stock, exercisable at $7.25
purposes. Expected in July.
working
June 10
common
Red Rock Bottlers, Inc., Atlanta, Ga.
June 23 (letter of notification) 45,327 4/7 shares of com¬
mon stock.
Warrants will be issued to common stock¬
common
For
—
—For general corporate purposes.
500).
•
June
Proceeds
of America, Columbus, Ohio (7/19 >
(no par), with class A
attached.
tronics.
Price—10,000 shares will be sold to
public at $7 per share; balance reserved for options to
officers, directors and employees; 3,000 shares at $3.50
per share and 4.500 shares at $7 per share.
Underwriter
r-^None.
Proceeds—To meet operating expenses and re¬
plenish working capital.
holders
Shoe Corp.
Tanner & Co.,
V ^Public Service Electric & Gas Co. (7/7)
Juiie 11 filed 200,000 .shares ($100 par) cumulative pre¬
ferred stock.
000, and for additional construction and other corporate
Price—100.10 per
June 28 filed 25,000 shares of cumulative preferred stock
June
Denver, Colo.
May 11 (letter of notification) 400,000 shares (100 par)
common
None.
sell
Probable bid-}
Inc.; Blyth & Co., Inc.; Kidder,
iPeabody & Co. and W. E. Hutton & Co. (jointly); Mer-y
rill Lynch, Pierce, Fenner & Beane and
White, Weld &
Co. (jointly); Salomon Bros. &
Hutzler; Harriman Rip¬
ley. & Co., Inc. .Proceeds to be used to.reduce.outstand¬
ing short-term construction notes aggregating $6,900,4
capital.
working capital.
Powder River Gil Co.,
Hughes and . Co., Denver.
—
(par 100).
applied to the SEC for authority td
through competitive bidding $5,000,000
company
and
first and general mortgage bonds series Q.
ders: Halsey, Stuart & Co.
and
Underwriter
unit.
stock
common
22
issue
con¬
(par $100)
share of
one
share of preferred stock
Underwriter—Mark
Va.
(letter of notification) $25,000 of 4%% 10- year
income bonds, due June 1, 1958. Underwriter—Virginia
Securities Co.
»Fune
Associates, Inc., Chicago, III.
(each unit
one
April 2 filed 300,000
June 23
t
Central Maine Power Co.
•
Feb. 2 filed 40,000 shares of 50c cumulative- convertible
18
stock.
Science Research
Squankum Feed & Supply CoM Inc.
Farmingdale, N. J.
May 24 (letter of notification) 1,000 shares $5.50 cumula¬
Philadelphia Suburban Transportation Co.,
Upper Darby, Pa.
v
a
sisting of
or
•
of
June 25 (letter of notification) 330 units
Oil
Corp., Los Angeles
May 21 filed 450,227 shares ($10 par) capital stock. Un¬
derwriting—None.
Offering—To be offered by the own¬
er, J. Paul Getty, President of the Company, from time
to time on the floor of the New York Stock Exchange,
or "to specific persons, firms or corporations," in sales
outside the Exchange.
Price-*-At approximate market.
Proceeds—
Prospective Offerings
shares at the rate of
share for each share held.
The other
new
50,000 shares will be issued to officers and others at $2.50
per share upon the exercise of warrants. An unspecified
number of shares may or may not be offered for sale to
the public.
Price by amendment.
Proceeds—To be
added to the general funds of the company.
before
Western
advanced to the issuers by B. F. Saul Co.
No purpose given.
■
June 8 filed 150,000 common shares (250 par) * Under¬
Offering—Stockholders are to be given
July 7 at $100 per share to
the extent of one share for each six shares of preferred
or
common
held.
Proceeds—To reimburse company's
treasury for additions, etc.
\
B. IV Saul CoVis not named specifically as underwriter^
the firm will sell the
notes, the- money for which was
writing—None.
May 28 filed 601,262 shares ($100 par) common stock
Underwriting, none. Offering—Holders of preferred and
common stockholders of record June 15 are given rights
or
Thursday, July 1, 1948
Savoy Oil Co., Inc., Tulsa, Okla.
certificates, series A, dated July 1, 1948, and due
1951. Underwriters—Gearhart & Co., Inc., and
Paul D. Sheeline & Co.
For equipment.
July 1,
on
CHRONICLE
Sanger Bros.,; Inc.,Dalias,Tex.
(letter of notification) 2,000 shares of common
(par $2.50).' Price—At market (about $11.25 per
share). Underwriters—Walker, Austin & Wagener and
Stifel, Nicolaus & Co.
Corp., San Francisco, Cal.
(letter of notification) $300,000 4V2% equipment
subscribe
FINANCIAL
stock
trust
to
&
June 25
pur¬
Teiecoin
Pacific Telegraph
COMMERCIAL
(letter of notification) $80,000 of 5^% promis¬
sory notes, dated June 3, 1948. Underwriter^-AlthougH
•
Texas
Gas
Transmission Co;
*
<
*
•
,
June 24 company announced plans to sell $60,000,000 of
funded
and Xo/enter into a' standrby arrangement
with banks to make $5,000,000 available on a term Joan
basis.
A total of 23 purchasers have agreed to
buyr;
from the company 625,000 shares of its common stock
at $8 a share.
The company has. also entered into ati
interim bank loan agreement with three banks to
borrow
up
to. $7,500,000;
Proceed^.—To. pay
for construction
program.
$
'
Wheeling & Lake Erie Ry.
C7/7)
H
The company has issued invitations for bids to be re¬
ceived up to noon (EDT) July 7, for $3,200,000 in
equips
ment trust certificates series P, dated
July 15, 1948; to
mature $160,000 semi-annually Jan. 15, 1949 to
July 15,'
1958.
The proceeds will be used to finance not more
than 80% of the cost of new .equipment.
Probable bid¬
ders: Harriman, Ripley & Co., Inc. and Lehman
Brothers
(jointly); Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler; and Harris Hall & Co. (Inc.).
'
•
•
Wisconsin
June 21
Electric
Power
Co.
reported North American Co. has arranged for
the immediate sale and
public distribution of its remain¬
ing holdings (as of July 1, 1948) of 26,742 shares of Wis¬
consin
Electric
American
on
common
stock.
Stockholders
July 1 will receive 239,731
of Wisconsin stock ras a
of
North
common shares
dividend.;■
Volume
168
COMMERCIAL
THE
Number 4712
,
&
FINANCIAL 'CHRONICLE
(39)
issues
95% of all the deposits which, as
recommendation
of
000
of Dec.
tion
law
involving about $240,000,the potential list, includ¬
ing several large stock projections
scheduled to go within the next
on
three weeks.
Largest
house
is Westing-
of these
Electric's
issue
of
$80,000,000 long-term debentures, a
negotiated deal with New Jer¬
Bell
sey
000,000
Co.'s
Telephone
of 40-year
$55,-
debentures
next in scope.
Underwriters, in discussing the
,.
rousing
of the Pacific Gas
success
& Electric Co.'s flotation Of
lion shares of $25
ferred stock, 5%
mil¬
a
value
par
series,
pre¬
lost
no
time in pointing out the fact that
this
was
"negotiated"
'
1
a
taking.
under¬
And they proceeded to make
/©lit a strong case for direct ne¬
between
.bankers
in
issuer
and
such
instances, not¬
hing that in instances of competi¬
tive
bidding
there
is
strong
a
tendency to "overprice"
and,
sue
.
In
the
of
case
•
make
move.
Pacific
Electric's latest issue, it
is-
an
as a consequence,
•It extremely difficult to
*
include
prospects
Gas
first
mortgage
bonds,
due
States
$10,000,000
1978;
first
plus 200,000
Power, (Minn.)
mortgage bonds,
due 1978
shares of
preferred; National Fuel Gas Co.,
$13,500,000. debentures, due 1973;
American
shares
Bosch
common
535,882
Corp.,
for
office
the
of
Alien
Property; and New England
Power
Co.
$11,000,000
of first
mortgage bonds series B, due 1978.
:
&
thatbankers "were able to obtain
the stock on a basis that permitted
.
Other
outstanding preferred issues
The issue
r
./
ja price of 28 ^4
•
r
(Continued from page 9)
to "yield the in-
maintain
return afforded
on ,any
of. the
preferred
other
the
stocks
big 'Pacific
Coasts
terests; to maintain
outstanding 6% preferred
selling H around 33 Vz to
return a yield of approximately
*4.48%j while the v5%% preferred
is
moves
at
afford
a
price of around -30 to
a
a
national fi¬
the local bank to
its
serve
Recognition of the need for
national credit policy
establishment of the
a
led to the
these
the
issues, nor the small
5% preferred now out-?
^standing, is subject to-call -but thd
company reserves the
idepm the
right to
re-
Marketing of New York Telephone Co.'s $90*000,000 of new
ri refunding
mortgage bonds, due
f July 1, 1981, bore all the eari marks of a
quick" operation.
Although some of the New
England
insurance ' companies
were
reportedly a bit cool to
i
the
$
several
']
Issue, it
learned that
was
the
of
so-called
The
>
for
33-year
the
new
maturity
series
F
fixed
issue
ap-
parently fitted well into various
■}
portfolios,
'<
thus
making
it
ad-
ditionally attractive.
The
V
successful
j paid the company
'for
3%
a
banking group
a price of 100.67
and
coupon
reoffered
J at 101 %
i
to yield the investor a
of 2.945 per cent to ma-
return
;
*turjty.
•
about
The
41
competing bid. was
basis points lower at
f 100.269991.
conditions
nessman
First
secure
a
responsive
and
banking
so
that the
would
other
or
was
local busi¬
tion
a
of
by the
banking
an¬
jit placed in registration this week
of
new
30-year, first
•mortgage bonds.
The big Chicago power com-
•
pany
proposes
to
offer
the
bonds for competitive bids upon
effectiveness of the registration
about July 19 next. Bidders will
set the
coupon
rate and -re-
demption
>
prices
will
be
fixed
meeting
the
requirements
7
busy month in the
field:
new issue
vacation-shortened
underwriters
apparently
With
staffs,
"are
in for
There
about
a
is
a
trying period.
now
dozen
a
round
sizable
effort
every
banks
tutions.
exerts
forestall
to
by aiding the
sured
failures
of weak in¬
merger
with
insti¬
stronger
There have been 159 such
mergers, with the Federal Deposit
Insurance Corporation disbursing
In
the meantime,
there is
at
least
$176,000,000
some
to
protect
total
of
end
pression.
protected and that there is
terruption to
absorbing
sound
banking service in
The successor, or
bank,
assets
of
takes
the weak
difference
All
;over
for
care
Circular—Gross,
Rogers &
Co.,
Spring Street, Los An¬
geles 13, Calif.
s
there is only one bank in a town
or where existing competitors will
not assume liabilitities and assets,
are
obvious.
It
is
the
logical
vehicle
for
depositor
munity protection, in
will
and
our
be used wherever pos¬
The Federal
required
not
only
legislation but Federal
banks
Mass.
Dealer-Broker
Winters
subscribed
Parker
Analysis—Ira
Haupt & Co., Ill
Broadway, New York 6, N. Y.
I''
'
■>
Appliance
du
—
31 Milk
7^7%:.'.
t''
.
M,;? "V
'
^
Dean Witter Adds
<Special
,
randum in current issue of Fort¬
nightly v Investment
Letter
H.
Hentz & Co., 60 Beaver
Street,
New York 4, N. Y.
In the same issue are memo¬
randa
on
Brooklyn
Union
Gregory,
DIVIDEND
Gas,
NATIONAL MSTIllERS
Portsmouth Steel Corporation-
CORPORATION
PRODUCTS
Data—Buckley
Securities
Corp.,
DIVIDEND NOTICES
'"The
the
extreme
traction
to
ease
expansion
which
we
and
con¬
have
been
:
_
400
commercial
banks
and
trust
50c per share
June
24,
1948,
twenty-five
dividend No.
a
cents
(25c)
238
of record July 10, 1948,
tutions
close
of
business
September
10,
THOS, A. CLARK
June
1948.
Thirty-
24, 7948.
as
shown
Vanadium Corporation
OT IS
on
Company.
of
.
of
all
America
ELEVATOR
COMPANY
Common Dividend No. 163
CONSOLIDATED TEXTILE CO., INC.
420 Lexington
A dividend of 50 0- per
the
no: par
share on
value Common Stock
has been declared,
1948, tp
June 16, 1948
at
Notice
of
Dividend No. 11
The Board
meeting held
the
a-
on
2,
New
Iron
•;
July 26,1948.
'
^
OF
■'
cents
NEW
A
YORK, INC.
v.
.7
Y".
'
Newhall, Treasurer
(Bo
and
to
mailled.
,,
.'i
BRAND, Secretary,
•
' Y/Y'-Y'Y
'
dend
of
50c
outstanding
share
per
capital
v
Preferred
stock
on
not
share
the
of
of the
be closed.
\.rs
'
June 24,1948
Treasurer
Stock
.
dividend
o£
(31.250)
per
share
on
this
the Common Stock
Company
has
been
7 declared, payable to stock!
J'
holders of record at the close
of business
Y
Secretary
on
June 15, 1948.
ROSS G. ALLEN
and Assistant Treasurer
A*.
\
•
on
twenty-fiye cents (250) per
Aug. 2,
1948, to stockholders of record at
the close of J business July 15, Ll
will
Common
Ihe Preferred Stock :and
day
Corporation, payable
Books
on
quarterly
cents
lEE DELUXE TIRES AND TUBES
1948.
j ■ ia v.
be
of
m.,
thirty-one and one-*quarter
Con»hohocktn,Pa.
declared the regular quarterly divi-
the
O.
p.
»
LEE TIRE & RUBBER COMPANY
The Board of Directors has'this
:
will
o'clock
Roofing Company
NDUSTRIAL RUBBER PRODUCTS
July 26,1948."
Framingham, Mass.
3:00
per
stock
1948,
RUBBER
share on the "A" Common and Vot¬
ing Common Stocks will be paid Aug.;
16, 1948, to stockholders of record
'^Wtu^On
•77;"''
;-Youngstown, Ohio
>
per
A. B.
at
9,
SAVANNAH, GEORGIA
CONSHOHOCKEN
REPUBLIC
the De¬
quarterly dividend of 20
common
July
1948.
Dividend
"A"COMMON and VOTING COMMON: A
•
:
held,
cents5
DIVISIONS
paid Aug. 2, 1948,
stockholders of record
21,
Directors
SOUTHERN STATES
CORPORATION
DEBENTURE: The regular quarterly
to
record
B.
LEE RUBBER & TIRE
YOUNGSTOWN
on
the
on
payable
Checks
June
of
twenty-five
York, June 23, 1948.
DIVIDEND NOTICES
share
of
1948.
Dated
FACTORIES
benture Stock will be
of
deolared
stockholders
C. A. San ford, Treasurer
Secretary
dividend of $2.00 per
dividend
was
Corporation,
July
June 16,
1948, declared 4Ck per share
as a regular
quarterly divi¬
dend on the Capital Stock of
the Corporation, payable July
a
stockholders of record
on July 6,
the close of business
meeting of the Board
a
Checks will be mailed,
Consolidated Textile Co., Inc:,
at
At
today,
share
1948.
of Directors of
Avenue, New York )7.
Dividend Notice
payable July 29, V
These insti¬
92%
Treasurer
F. DUNNING
Executive Vice President and Secretary
A. S. POUCHOT
comprise
the outstanding
on
July 9, J 948. The transfer
books will riot close.
declared
Georgt 1. Horrell, Vice Pres. & Trees.
insured
banks in .the nation, and they bold
de¬
on
share
per
John Morrcll&Co. will
companies and 200 mutual savings
banks whose deposits are
Directors has
Com7norr5f6ck,pdyablerorrAugust
July 30, 1948, to stockholders
that
a
new
era
of banking was
brought in by the Banking Act of
1933. Today there are
nearly 13,-
of
quarterly dividend of
a
the capital stock of
on
be paid
all
psychologically
Board
clared
YALE
by the Board of Directors
out
of past earnings, payable October
1, 1948, to stockholders of record at the
the Federal Deposit Insur¬
Corporation has been per¬
fecting a technique of merging
should
NOTICES
Philip Morris & Co. Ltd., Inc.—
Memorandum—Sutro Bros. & Co.,
120 Broadway, New York
5, N. Y.
ance
itself
Co.,
•
38 South Los Robles Avenue.
Cents ($0.375) per share
that
that
Jr., has been added to
Valley Debt Readjustment.
Onc-TIalf
and
Chronicle)
2,1948, to Stockholders of record
R. W. Gleason,
so
FiNANciAt
tile staff of Dean Witter &
The Yale & Towne Mfg. Co.
.DIVIDEND NO. 76
This is
protected. The mere
fact that this country is never
again going to be subjected to
widespread runs on the banks in
The
Foster Wheeler Corp., and
Lehigh
$289
JOHN MORRELL & CO,
over
are
to
PASADENA, CALIF,—Tyl6r G.
Pennsylvania Railroad—Memo¬
was
Seven
&
New
Wisconsin Power & Light Co.—
Street, Chicago 4.
Company —
Pont, Homsey Co.
Street, Boston 9,'Mass.
circular
of
dividend of
Corp.—
(Continued from page 8)
South La Salle
Illinois.
On
A
:
74 Trinity Place,
York 6, N. Y.
9,1948, to stockholders of rec¬
ord June 25, 1948.
where possible
Crampton
Summers,
Recommendations
DIVIDEND NOTICES
reference to the $5,000 in¬
surance
limitation or to the fact
deposits
&
Memorandum—Troster, Currie
Corporation's orig¬
inal "capitai^atrnhat
time.—^Upon
general statement without
a
Dye—Description
Company, 40
Birkins
agency for the protection Exchange
Place, New York 5, N. Y.
depositors created and spon¬
by the Government, yet fi¬
U. S. Finishing
Co.—Analytical
nanced entirely by the member
description—A. G. Woglom & Co.,
banks for the protection of their
Inc., 49 Federal Street, Boston 10,
depositors.
million to the
actually be available
When needed. The individual de¬
positor will have his savings al¬
him
Piece
Deposit Insurance
Corporation
Reserve
United
—George
an
com¬
opinion,
sible.
will
ease
1
of
the
situations where
Funds which busi¬
available to
Company—
458 South
bank.
between
promptly in cash by the Federal
Deposit Insurance Corporation.
The advantages of this latter tech¬
nique, when it is made more flex¬
in the banks for
safe-keeping and for use in hard
times
*:.■ "'v ;
■■
sored
in¬
no
the community.
have put
nesses
:''r77:;'7-A'7
an
Creation of the Federal
deflation.
available are data on Cen¬
tral Illinois Public Service, Semi¬
nole Oil
&
Gas- and Beryllium
Stromberg-Carison
We, as well as
banks, shall take pride in hav¬
ing
advantages of this type of action
are
that all depositors are fully
Deposit Insurance Corporation has
protected the depositors in the
banks against the strongest blows
of
Philadelphia
t Also
of this year.
one
easing the strain of de¬
Walnut Street,
'
Corp.
happy to report that all but $43
million of the original capital has
been repaid and that we expect to
additional 1,000,000 depositors. The
Ottumwa, Iowa.
intermediate step which Congress
has taken which gives promise of
by the Corporation.
corporate
poration to repay' this original in¬
vestment in amounts that would
not reduce its total
capital and
surplus below $1 billion.
I am
the
Corporation
the books of the
We of the Federal Deposit In¬
surance Corporation like to think
July Busy Month
Unless
something happens to
change the current market picture July shapes
up as likely to be
ja
of
Creation of FDIC
exposed in the past.,
when the issue is awarded.
■•
system
the local community.
banks
'
r
crea¬
permit control of those credit pol¬
icies which are by their nature
national in scope, but which also
protects the local bank in its duties
of
Deposit
1420
2, Pa.
-
Insurance
Washington in order
dual
Corpora¬
enacted
by
empowered the
Insurance Cor¬
1947
feel that "he
not
solved
the
have the balance repaid before the
which centers sufficient power in
the Federal Reserve System to
only
big issue to shoot for when
$50,000,000
pro-
a
By authorization of the Banking
Act of 1935, the Federal Deposit
Co. gave special
investment banking world
■
local
to
the period of hard times.
j the
Commonwealth -Edison
completely
were
tected.
had to explain his credit needs to
ways
Another Big One Looms
.
institutions
1946,
Federal
capital to get it started in 1933.
The Treasury and the 12 Federal
"Big
Five" had taken up substantial
allotments.
i
placed in receivership. More
than 330,000 depositors in those
The goal was to
problem
t
!
have
to have his requirements met. This
N. Y. Telephone 3s
•
that
Federal
New York
preferred.
new
banks
Second Banks of the United States,
sufficiently
to
insured
been
and
system which would carry out na¬
tional credit policies and yet be
return
amount of
1
com¬
of
•
\
in¬
buyer of
somewhere around 4.55%. Neither
.
■
balance
local
policy without putting un¬
due handicaps upon the efforts of
The
>
and
munity.
utility has outstanding.
iseries
245
ible to
nancial
which
;
satisfactory
a
national
between
several
I
promptly advanced $87,000,000 in
paid
Banking History
yestor a return of 4.72%, which
compared ^favorably
with the
/
V In the more than 14 years of its
operation,
the
Corporation
has
the
in
Congress in
sound assets and
the deposit liabilities assumed by
the
continuing
bank
is
The FDIC and
brought out at
was
-V"-:;;-; 7 YY'7
amount of these
satisfactory pricing in-relation to
-6f the company.
billion.
The
shown
was
Pub¬
Equitable Gas Co., $14,000,000 first
mortgage bonds, due 1973; N. J.
Power
&
Light
Co.,
$6,000,000
Northern
r
gotiation
Other
lic Service Electric & Gas, 200,000
shares
of
new
$100 preferred;
31, 1947, amounted to $154
39
;
THE
&
COMMERCIAL
Thursday, July 1, 1948
FINANCIAL, CHRONICLE
post will become equal in weight
to the present volume of air mail,
now first class.
Since the air car¬
BUSINESS BUZZ
riers
carry
mail
cilities.
BeVind-the-Scene Interpretations
from the Nation's
of
60%
this double volume of
without crowding their fa¬
can
:
operating overall
capacity, they
now
are
about
at
Capital
;i.
MM
of air mail,
doubled volume
A
however, will fall short of doub¬
ling the air mail revenues of the
air transport companies with mail
contracts.
In 1947 air mail pay,
around $30
which finally may run
million, will amount to only about
of gross revenues.
7%
This
not
million figure will
because of the
$30
doubled
be
provisions of air mail contracts.
Certain of the carriers, while
ton mile basis, receive
ton mile rate as
increases. Certain
other carriers, however, receive
paid
on a
diminishing
a
•the
tonnage
flat minimum air mail compen¬
sation.
-which
the
they may
at
handle
Hence
mail
of
Many
transport
these do not
total
tonnage
be required to
parcel
rate.
minimum
the
air
companies
such
for
post
will
first
at
lead to an increased load of air
without
mail
boost
corresponding
a
mail
air
in
Still
pay.
a
third class of contracts calls for
flat ton mile pay regardless of
a
volume.
will
having
Carriers
contracts
such
immedi¬
benefit
ately and directly in proportion
as air mail parcel post tonnage
increases their traffic in
In
1897
mail,-
received
Congress
its
bill
proposing to
attack
stream pollution. In 1921 the first
Congressional hearing ever to be
devoted- to water pollution was
held.
Just a few days before the
first,
adjournment
Hand
over
the
dough in all
.'v;
your
accounts except A-152967-
that's my account!"
>
•'*
j*<~
there
was
They failed to realize that their
because upon the continuance of
opponents
this easy money does the present
ciples,
building boom depend. Builders
Mortgage
would
be
desolate
if
this
What the public housers did was
as
finance is
or
an
U. S.
so
that Wol-
beholden to the real
estate builders that, if forced
the ultimate
corner
in the
into
last
hour of the session, he would ca¬
pitulate and
as
a
now
dead.
Lonsdale Co.
Postage rates for air mail parcel
post will run to three or four
Seatex Oil
times the cost of sending the same
tain types of business houses may
Title
easy
be
/
is
VI
money
is
haven't got their bill either.
expected
to
utilize
the new
indi¬
urgent parcels
service promptly, and many
viduals will
send
Postal
ESTABLISHED
Members N.
by air, t
stopping. And the public hous¬
ers
revenues
continuing Title
didn't.
The
Finishing
weight of package
by surface
transportation. Nevertheless, cer¬
VI another several months.
Wolcott
their
boost
to
public housing
take
condition to
year*
Dorset Fabrics
somewhat.
propaganda
a
aggregate of $125 million. \
Texas Gas Transmission
parcel post will be
started September 1 by a new law,
and
will help the air transport
carriers
own
total outside
million
mail
their
was
5-
a
Belle Isle Corp.
Air
to make the mistake of believing
cott
a
law
combating
turn¬
now
to sounder bases.
expired. Preliminary signs actu¬
title has expired.
well
as
prin¬
play politics.
have
can
ing back to long-run standards,
title
ally are that builders really are
pretty depressed now that this
also
Congress,
into
pollution at
of about $25
cost
80th
for
program
year
stream
present inflated values—to die,
of
enacted
officials
anticipate that
40
Teletype—NY 1-971
Firm Trading
Exchange PI., N. Y. 5
HA. 2-8780
Teletype N. Y. 1-1397
by the end of two years air parcel
HAnover 2-0050
1919
Y._ Security Dealers Ass'n
Trading Markets:
Ralston Steel Car
Markets
Oregon Portland Cement
Riverside Cement A & B
All Issues
Spokane Portland Cement
: r.ARL MARKS &
no. INC.
FOREIGN SECURITIES
SPECIALISTS
•J V.
50 Broad Street
■
Herbert H. Blizzard & Co,
::
;
;
LERNER & CO
'
i." I
;•
New York 4, N. Y,
AFFILIATE: CARL MARKS & CO. Inc. CHICAGO
Investment Securities
10 Post Office
Square, Boston 9, Mass.
Telephone Hubbard
LERNER STORES CORP
1990
Teletype BS
tt
Empire Steel Corp.
414% Cumulative Preferred
IN
Susquehanna Mills
PHILLY LAST WEEK
The
dawn
our
and
era
BOUGHT—SOLD—QUOTED
in
pursuit
happiness"
was
new
a
''lives,";
liberties
of
of
_
crystallized.
,
Hill, Thompson & Go., Inc.
Markets and
123 South Broad
St., Philadelphia 9, Pa.
Clear thra—Montgomery, Scott £ Co.
New
York & Philadelphia
Telephone
Teletype
BArclay 7-2663
NY 1-277
Situations for Dealers
120 Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1 -2660
@FedFRASER