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Final
Edition
In
YEARS
OVER 100
ESTABLISHED
2 Sections-Section
Ul34<
JUL
fj)*
ommetcicLL
Reg. U.
S. Pat. Office
y
Volume
New
Number-4298
160
.
60 Cents a
Price
z
York, N. Y., Thursday, July 13, 1944
Copy
GOP United For Pension, Bonus And Profit Sharing Problems Of Monetary
Bricker Plans And The Revenue Laws
'
In
date
5, Gov. John W.
Bricker of Ohio,. Vice-Presidential
candidate
on
the
Republican
of .July
f
Re-
.
of
the
in
convention
C h i
g o
c a
1
,
is
e
united
and
p
Benefit Tax wise Under
death
systems
just
one
the
Social
of
have
as
running
of
all
been
selected
the
John
He
Dewey.
the
State
will
lead
will be
of
fighting,
a
aggressive and constructive cam¬
Dewey and I, during
that are ahead, will
by a
de¬
pends upon
the particular
company
paign.
V '
"There are many important is¬
sues
confronting the people of
America
this
Fall.
Governor
plan or sys¬
Victor
R.
the
of
tastes
Wolder
company's
the months
management and what end results
carry
the the management desires to
campaign to the far corners of this achieve and at what cost to the
country." \'v ■
■'
company. It will not be possible
in this memorandum to set forth
.
IN THIS ISSUE
Special
material
interest with
at
items of
and
to dealer
reference
activities in the States of Illinois
issue.
Illinois
in
included
Wisconsin
and
on
page
this
178; Wis¬
consin page 180.
length every type of plan con¬
'
V
®
*
by
the
the
CIO,
10-year housing construction pro¬
which represents an increase
$1,800,000,000 in the Canadian
version
of
the
cradle-to-grave
sponsors
of
of its
is to
Beveridge plan. A large part of
the
support
for
thismeasure
dis¬
stimulate
cussion
or
tion
(Continued on page 180)
i
E.
Edwin
Post-War
of
NEW YORK STOCKS,
INC.
Harry
Herbert M.
Hirsch, Lilienthal & Co.
Exchange
Exchanges
Members New York Stock
Geneva
HAnover 2-0(>00
Chicago
DI
of the
A m e r i c a n
delegation, with L. Stinebower as
secretary. Commission I is com¬
,
posed of four committees,'viz: (1)
Purposes,
Policies -and Quotas;
(2) Operations; (3) Organization
and
Management;
Status.
(4)
Form and
•
Commission II,
(Continued
headed by Lord
on
page
186)
Witte, "American
Security Pro¬
State and
Teletype NY 1-210
Cleveland
Bonds
for Banks, Brokers
R. H. Johnson & Co.
Established 1927
INVESTMENT
V.
■
SECURITIES
\
-
Prospectus
HUGH
Pittsburgh
Actual
BOND
Syracuse
Dallas
Trading Markets,
WALL STREET
48
NEW YORK
always
and
5
634 SO. SPRING ST.
LOS ANGELES 14
Central Soya
Members New
Yorjc Stock Exchange
Members New
COMPANY
York Curb Exchange
New York 4
30 Broad St.
Tel.
Co.
CHASE
NATIONAL BANK
OF
THE
CITY OF NEW YORK
Queensborough
Gas & Electric Co.
Welder Co.
BROKERS
Department
Tele. NY 1-733
DIgby 4-7800
Federal Machine and
•
Bond
THE
Hardy& Co.
Purolator Products, Inc.
ELECTRONICS
RAILS ;
Request
INCORPORATED
PHILADELPHIA
Albany
Buffalo
Williamsport
Troy
LOWG
W.
Mew York 5
64 Wall Street,
BOSTON
on
.
i
.
and Dealers
Rep.
4, N. Y,
Brokerage
tyyy? for
■
-
White,
Bratter
Social
Bond
VICTORY
London
Inter¬
Municipal
Henry Holt 5/69
25 Broad St., New York
the
expected.!
Buy War Bonds
Henry Holt common
other
handle
problems
etary Fund a It
is headed by
Engineering
and
to
national Mon¬
posals," American Economic Re¬
view, December, 1943, p. 825.
(Continued on page 177)
b
can
industrial¬
Canadian
from
comes
ists and labor leaders who believe
is
the
the
gram
expressed
purpose
on
problem of defeating the
precluded social se-.
curity
revision.
The
Canadian
Parliament is now considering a
Ad¬
Commission
I
England":the
major
ministration.
The
in
attention
Axis has not
Federal
the
—"
Canada and
concentration of
AFL,
and
Security
In
$
been endorsed
and
to make an analysis
regarding the application of the study. With
plan to every company or to go the cessation
into all phases of law applicable of active cam¬
to the subject. This memorandum
paigning in
however, will be sufficiently ex¬ Europe some
haustively complete in order to kind of decisive legisla¬
advise the client and for the client
ceivable,
Interstate Aircraft &
-
W.
also
mittee.
gram
passed,
although it has
is
general
steering com¬
a
increasingly evident that the social security pro¬
It is becoming
tem should be
just what type
of New'York
in
There
'
University, Oxford, Ohio
will be rewritten in a thoroughgoing manner as soon as mili¬
tary security is assured, perhaps even before the capitulation of
Tokyo. Congress has heard and recorded the new Wagner-MurrayDingell Bill (S. 1161, 78th Cong., 1st Sess.) introduced in identical
terms in both houses June 3, 1943. It is not at all likely that this bill
As to
among
three separate
'commissions.'
installed
has
to be an outstanding Gov¬
he
the
of
V'"
By LOUIS S. HOUGH
Assistant Professor of Economics, Miami
or
characteristics
Bricker
mate
of
ernor
and
W.
named.
Governor
proven
several
for
is di-
k
wor
*
provide
ers
am
happy to
Con¬
ference,
thp
preparatory
Post-War Period
Oth¬
Fi¬
and
tary
*>
vided
for
these
features.
of organiza¬
adopted by the International Mone-
Security In The
.
I
Fall.
very
WOODS, N. H., July 12—Under the plan
BRETTON
tion and methods of procedure
nancial
pro¬
vide
New Deal this
the
Some
like.
will
defeat
:
bene-
and
fits
se¬
and
can
To
retirement,^
'
;
.
.there
lected
One Covering
companies today as in the past have and are install¬
ing various types of plans covering pensions, bonuses, profit sharing,
that
ticket
Formally Organizes Into Three Sections;
Conference
The; Various Plans, As Well As
The Monetary j Fund; A Second Covering
And A Third To Deal With
Be Adopted—Pension Payments, Bonuses And The Like,
Miscellaneous Matters—Status Of Gold Debated—Agi¬
Which Conform To Internal Revenue Code, Permitted
tation For Silver Recognition Becomes More Pronounced
Under Wage Stabilization Laws
—Blocked Sterling Balances Under Consideration
1..—Various types of plans a company may adopt.
deter¬
mined
the
Author Points Out How A Concern May Or May Not
y : Progressive
Republicans
every w he r e
are
Chronicle"
Special Correspondent of "The Commercial and Financial
y
t el y
com
By HERBERT M. BRATTER
City
The International Bank;
pub 1 i c an
party, as the
result
R. WOLDER
Attorney and Counsellor-at-Law, New York
Conditions Which Should Determine Kind Of Plan
ticket, wrote as follows:
"The
By VICTOR
the
''Chronicle" under
the
of
Editor
to
addressed
letter
a
6% Preferred
INDUSTRIALS
'
International
Detrola Corp.
BULL, HOLDEN St C°
MEMBERS NEW YORK STOCK
EXCHANGE
14 Wall St., New York
5.N.Y.
TELEPHONE-RECTOR 2-6300
Kobbe, Gearhart & Co.
Members N.
Y.
Members New York Stock Exchange
Security Dealers Ass'n
120
Tel.
REctor 2-3600
Telephone:
Teletype N. Y. 1-576
.
Philadelphia Telephone:
Enterprise 6015
Broadway, New York 5, N. Y.
-
New
York
.
Bell
ira haupt & co.
Members
Security
52 WILLIAM ST., N.
Bell
New York 5
45 Nassau Street
HART SMITH & CO.
REYNOLDS & CO.
INCORPORATED
Dealers
Y. 5
Teletype NY
Assn.
HAnover 2-0980
^Teletype NY 1-635
New
York
Montreal
Members
of
Principal Exchanges
lli Broadway, N. Y. 6
1-395
REctor 2-7400
Toronto
REctor 2-3100
Teletype NY 1-1920
*•
w.
'
•.*
■
.<*r-■,v'
■
.■
■
170
Trading Market» in:
,
..
..
v
Thursday, July 13, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
.
Hart.
;
•
!
Goodbody & Co.
KING & KING
Established 1920
Telephone
BArclay
/
'
7-0100
.
Axton-Fisher Tob, B.
York
New
.
Lord Keynes Denies
Des Moines & Sou.
Common
1
Blocked In
Stock
Industrial
Tel.
Exchange
St., New York 4, N. Y.
HAnover 2-0700
NY 1-1557
'
New Orleans, La.-Birmingham, Ala.
Direct wires to
branch offices
our
a
specialist in Wall Street," present
Chairman of' the. Analysts Club
of
.
Baltimore Stock Exchange
Broadway, N. Y. 5
WOrth 2-4230
Members
120
;
Teletype N. Y.
Bell
British
the
D
l
e
e
made
g a t
a
ment
Cross, Austin & Ireland
Lumber Co.
ion
state¬
the
on
tude in which
he
a s s e r
t ed
that he would
Units
inject the
consideration
not
(1 share each
1st Pfd.,
—
2nd Pfd. and
Common)
the
of
Vanderhoef & Robinson
Shroff,
delega¬
dian
'
A
1-1548
Teletype NY
System
mem¬
ber of the In-:
New York 5
COrtlandt 7-4070
Telephone
statement
from Mr. A. D.
York Curb Exchange ;.
Street
brought
This
a
Members New
the
!
.'Lord
tion, urging
that the Fund
Keynes
lied 4to alleviate the
be
1
in
Yo
to the problem,
relation
;
the only country
here represented
large-scale
W. L. Douglas
primarily, to
''
■'»
* '
Shoe
(Continued on page 188)
1952
CO.
Street, New York 5
WHitehalL 3-1223
Telephone:
Teletype NY 1-1843
Bell
author of a plan for half
Congressman Dewey,
"A"
General Aniline & Film
Preferreds
plans
Nu-Ename9 Corn.
•
U. S. Finishing Co.
&
Common
" f 7
'1
.
v *"
•
I) % »*
1■
#
_
;-i
,
Members
Rep. Chas. S. Dewey
Ni Y. Security Dealers Assn.
N. Y. 5
Teletypes—NY
American
and
we
>
Lehman
started his
Middle
An industry
cated
Qall on the listed stock
years at $8.70
Y.
Security
120 Broadway, N. Y. 5
.2-8700
*
.
Dealers
Assn.
1-1288
Halsey
1923. In 1930 he
and for about . 14
East,
moved
in charge of distribu¬
tion for Halsey Stuart in upstate
New York, Canada, western Penn¬
was
years
■■■,*
.
ri
Netg York Curb Exchange
r-
'•
• •»
v
outlook
The
k
Great
for
with
Lakes
a
request
of
the
fast
i:Vi-,.'
WALL ST.
accordingto a
situation-is¬
sued by
Collin, Norton & Co,
'508-12 Madison Avenue, Toledo,
Ohio, members of the New York
and Cleveland Stock Exchanges
and'-other' exchanges. Copies of
this interesting memorandum dis¬
cussing the situation in some de¬
Simons, Unburn & Co.
Members New York Stock
25 Broad
Exchange
St., New York 4, N. Y.
HAnover 2-0600
*
<Tele.NY» 1-210
.
Exchange
CO.
&
'■ :'
Exchange
120 WALL
ST., NEW YORK
SlMu:
SECURITIES-
Quotations Upon Request
TEL. HANOVER 2-9612:
Teletype N.'Y. 1-2123
C
Laclede Christy Clay
Products
Indiana Limestone
6s, 1952
Memoranda
request from
on
Request
F.H. K0LLER & COMPANY
inc.
111
Broadway, New York 6, N. Y.
BArclay 7-0570
NY 1-1026
had by dealers upon
Collin, Norton & Co.
Automatic Signal
Eitingort SchiSd
Deb. 5's 1969
Elk
Horn Coal
Aviation
Gen.
Greater N.
Equip.
Y. Brewing
Happiness Candy
(FredT.) Co.
(Robert) & Co.
Ley
INCORPORATED
Troster,Currie & Summers
Dealers Ass'n
Members
Union
Rets
Keiter
Foster
Southwest Gas
Cleveland Stock Exchange
Commerce
BIdg.,
Cleveland 14
Telephone MAin 8500
Trinity Place, N. Y. 6
New York Cofjee & Sugar
.
WM. J. MERICKA 6- CO.
74
-
York Stock Exchange
industry,:
RIGHTS
Y. Security
.
NEW YORK 5
"HAnover 2-9f70
1-1140
Teletype NY
growing frozen
Henry Holt Common
N.
,
Members New York Curb
64
trend toward
cold storage for all
commodities and the ad¬
tail may be
outlook of¬
tremendous possibilities.
report on
•
Warehouse Co. appears
optimistic,
food
without compli¬
reconversion problems
...
Optimistic Outlook
i-
MOKAN
*
.■>
Frank C, Masteison & Co.
Virginia, a .
sylvania and West
HENRY HOLT
Members
Established 1926
Teletype NY
Dealt in on
memorandum on the
Nations
exchange value up
tariffs or revalue the dollar,
international fund, shouldn't countries with re(Continued on page 196)
Quoted
,
West, a joining
-
its post-war
Detailed
Co
N.
.
fers
for 41/2
Members
United
financial career in the
Stuart & Co. in
vent
dollars tends to force
clothing)
(Men's
.
-
this
of
critical
FASHION PARK, Inc.
warrants
Sold
are
; He was recently with
Brothers.
Mr.
Kerr
York office.
stored
With 20
Congressman not isolationists,
under consideration.
should be asked to lower
Also, in any
Cable & Radio
-
who
mand for post-war
Hanover 2-4850
1-1126 & 1127
.
Bought
*
wider use of
statement last month rec¬
ognizing America's moral and practical re:
sponsibility to help world reconstruction.
I'd like to know what American labor,: L. ;
industry, and Congress would say if de¬
•
SreenemviGompaYV^
37 Wall St.,
>
plan, I signed a
Preferred
'
now
Republican
Pfd.
Rubber 5%
fear among House
Republicans that Bretton Woods delega¬
tions may have impression House endorses
England Public Service
■
err as
HI
Terminal
himself as follows:
"There is a definite
Investment
General Tin
'
Reconstruction Bank under American con¬
trol, earlier expressed
-.'■■JJ'i.
'
listdrr Si Q(f.
attention and study." y>v
billion
Transport;
Common
Tudor City Units
:
Mrl
.
Kenneth A. Kerr has become as¬
sociated with them in their New
•
Diana Stores
Seiberling
s
of New York
University School of Accounts and
Finance, and for the last 11 years
has specialized in the securities of
.Blyth & Co, Inc., 14 Wall St,
New York City,
announce that
H., July 12.—In an exclusive interview
correspondent, Congressman Charles S. Dewey, Illinois Re¬
publican, said: "It has been said that my position regarding the
monetary fund and world bank proposals has changed since my arrival*- here. V That is not correct. - I
see many
changes made in the two plans that are beneficial,
but their fundamental theory is still believed to
be impossible at present time. I am-much in sym¬
pathy with the position just expressed by Senator
Taft's press statement. - I • think the -key to this
country's approach to stabilization deserves closest
-
H. G. BRUNS &
;
New
BRETTON WOODS, N.
Preferred
&
,
.
^^0."'':^• Members
with your
,
'
Gully is a graduate
V •'
Cpnf^^
Woods Monetary
Indiana Limestone
20 Pine
t
Preferreds
and
Stock Depart-
Gully
&
Terminals &
g-e r o f
search
Henry
V
&"5Vz %. Debentures
Common
.
•r-
-
Seen And Heard At Bretton
Preferred
Struthers Wells
*5%
"
as
had indeed Co, Lehman Bros., and J. R. Wil-
as Mr, Shroff
made clear,:to relate
asspmed,
difficult1
Teletype NY 1-1919
Central States Elec. (Va.)
Stock
Exchange,
on e n
debts to her
her."''
Broadway WHitekaH: 4-8120
Bell System
FAKR
Stock f
Common
Common
s
New
& Power
Amer. Gag
■ 6s,
e r
Allies and Asso¬
ciates also here present, these al¬ growing companies.
He was for-?
ternative
amendments
must be merly with Shearson, Hammill &
war
65
.
Kingdom is
incurred
has
v
New
b
m
m a n a
Lord
•
United
the
;
Mem bers New York Curb Exchange
.
the firm's Re4
Keynes said:
.
-
C i t y,
-'the
York
discussing Britain's position
which
with
k
r
me
of
Fund.
"Since
rVicana Sugar Co.
Members New York Stock Exchange
:
Alstyne,
■
Wall St,
the countries concerned, and
snould not be made a "burden", to
In
•
■
.
i Noel & Co, 52
by
the
J
• •. \
Edward A. Pureed & Co.
■*.
States
United
of
.
i t y
asso-
ciated
Van
I
<•..
become
delegation has taken a firm stand
that the problem should be settled
deliberations.
At 130
31 Nassau
probr
into
lem
Units
We offer 200
The
transfer.
its
t y
e
e cur
Analysts,' has
L
[situation of his country due to
inability to collect its sterling bal¬
ances by creating a machinery for
British ' atti¬
i
o c
rS
"v";'.;'
1—J-.;..: ~
behalf -Of
on
1-1227
/
active
an
Electric
Prior : Pfd.
.
the New. York
S
British Commonwealth of
Nations has come up for consideration at a meeting of. Commission. I
of the International Monetary and Financial Conference at Bretton
Woods, N.'H.It was brought up for consideration by India's delegates,,
who have a large stake in the solution of the problem. Lord Keynes,
Hi
■;y
member ; of
of Great
the large indebtedness
The question of the liquidation of
Portland
^
York
New
and
*
;
Southwest Gas Prod.
Gully, for the last; 24
well-known
research
Henry
years
Britain to her allies and associates in the
»*>tor
25 Broad
2-7815
REctor
Fund
England—U. S. Opposes Burdening
With The Problem
Talon, Common
Bell
Quoted
—
Southwest NatT Gas
Sterling Balances
Use Of Fund To Convert Her Large
Industries
4's, '56 &
Sylvania
'
Sold
Members New York Stock
:.p"v •:
BROADWAY, NEW YORK
120
..
.
From Fund To Meet
La France
New
■
Exchange
Stock
New York Curb Exchange
Great Britain Will Seek Assistance
Indebtedness—India Argues For
Coal, Com. & Pfd.
Elk Horn
Ft. Dodge,
,
request
on
Steiner, Rouse & Co.
Blocked Sterling Balances
A*
Bell
—
Co. Inc.
TELETYPE NY 1-423
BELL
*
Bought
'>:C
■
...
Members
.'.y..:
NEW YORK 6, N. Y.
<
Teletype NY 1-672
115 BROADWAY
HA 2-2772
PI., N.Y. 5
40 Exchange
COMMON
..
Analysis
Light
MCDonnell &fq
•
Exchange and Other Principal Exchanges
Members N. Y. Stock
Ass'n
8ecnrity Dealers
York
New
Weinberg
P. R. Mallory &
%i
Bought—Sold—Quoted
CANADIAN UTILITIES
Pfd. & Com.
,
.
V
CANADIAN MINES
N. Y. New Haven &
'■
t>
Power and
CANADIAN BANKS
Lines
V
Delaware
CANADIAN INDUSTRIALS
Bendix Home Appl.
American Barge
Markets in U. S. FUNDS for
We Maintain Active
Corp.
V-
.
.
Lanova
HA 2-2401)
Oil
Producing
MORRIS STEIN & CO.
Established
1924
'
Teletype NY
Private
1-376-377
Wires to Buffalo
Detroit
-
Pittsburgh
-
29
Cleveland
-"St. Louis
v
Broadway, New York 6
50 Broad Street,
WHitehall 4-3640
Direct Private
Wire to Cleveland
New York 4,: N. Y.
Telephone HAnover 2-4341
'
Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4298
COMMERCIAL and
The
CHRONICLE
FINANCIAL
Gisholt Machine
Reg.
We
are
interested in
25 Spruce
Street, New York 8
Herbert D. Seibert,
i
Thursday, July 13, 1944
DEALERS GET
Thursday
/
THE HORRORS
-—when
of the
Trask
>encer
Sp<
<
j
every
Utility and Industrial
PREFERRED STOCKS
j
Published twice a week
Stromberg-Carlson
'
:
<
Business Manager
William D. Riggs,
[
v:'
,
vWilliam Dana Seibert, President
Trico Products
AMP COMPANY
f
Editor and Publisher
■
Public
j
BEekman 3-3341
Flour Mills of Am.
LlCHTEnSTEir
"
High Grade
•
Publishers
Philip Carey Mfg.
offerings of
S. Patent Office
U.
William B. Dana Company
Am.Window Glass
171
Co.
&
Let
us
stocks
25 Broad Street, New York
Telephone HAnover 2-4300
;
quote
and
in and
come
we
see
buy for good
on
some
money.
"worthless"
your
bonds.
"Obsolete Securities Dept.
..Teletype NY 1-S
Members New York Stock
t
they
junk
Exchange
WALL STREET,
99
NEW YORK
Telephone: WHitehall 4-6551
*
(general news and advertising issue)
*
32
York
New
Security
Broadway
Board of Trade BIdg.
NEW YORK 4
CHICAGO 4
Harrison 2075
Teletype CO
V'
'
Estate
■
Call
•
•
.
.
Vi.V;..
1.•
*■'
,'•!:'V--
.
r
Dana Company
40 Wall
,r
St., N.Y. 5
Post-war employment presents a duplex problem.
I
must be made in New York funds.
of
nance
foreign subscriptions and advertisements
|
,
is the provision of jobs in the transition from
is the mainte-*>
NOTE—On account of the fluctuations
iii the rate of exchange, remittances for
WHitehall 4-6330
Bell Teletype NY 1-2033
full
under
"nor¬
Is, In Law
problem
For S. C. Parker & Co. Of
'I
d.
for
many
Graham
The
on
goods
rule, and with the manner of its
adoption. Several of the issues so
Exchange
C/ommission
raised
limits
The
arguments
conten-
there¬
follow
on
page
Oct.
25
stitute
in
Frank
J.
Maguire
a
Nov.
rule
or
.
v
full:
Last
*
(Continued
Sold
week, over
9,
another network, I asked
on
page
Carrying Water On Both Shoulders
[NASD Directs Enforcement Of 5% Policy, At The Same
Time Claiming The Interpretation Is Optional With Dis¬
trict Business Conduct Committees
Bell System
Teletype.
NY
1-2480
TRADING MARKETS
Bartgis Bros.
Federal Screw Works
Laclede-Christy Clay Prodncts
Memoranda
on
Request
am
enough
a
of
run
on
COrtlandt 7-6190
System Teletype NY 1-84
strong
the
most
powerful
leader
the
people to whom he
SUGAR
must
inter¬
SECURITIES
great tradition of the
Lincoln-Douglas debate has un-l
fortunately set no precedent in;
American politics.- One is com*Text
•
Norman Thomas
Mr.
velt's record.
President
Bell
The
must
Candidate
is
170 Broadway
election at
rogated in Congress like the Brit¬
ish Prime Minister in Parliament.,
has
Roose¬
an
Our President cannot be
compelled his
party to offer
him, his des¬
ignee
permit
to
Hmioo&hm
It is
for deep satisfaction that
render account.
nomination
he
now
should be subordinate to the will
of
refusal
who
this time and to remind the world
that
that,
in
the
wholly un¬
likely event of
his
men
American \ democracy
,
190)
.
hold the fate
a; cause
rules and, if so,
Dealers A«an.
Broadway, New York, N. Y,
This week I
To be sure, he
isnot
yet
con¬
Security
IiEctor 2-3288
questions of
some
narrow
1943
Ill
York
Listed St. Louis S. E.
three
,
Request
Members
New
:
Candidate Dewey on the grave problems of the hour.
that
Readers will recall
the
By NORMAN THOMAS *
of the world in their hands.
whether the Commission should
.
—
J.F.Reilly&Co.
Socialist Candidate for President
.
question¬
ing Candidate
by the Securities
Commission
on
and
Bought
*Circular on
pro-
198)
Roosevelt.
do
"whether the aforesaid letters of
con¬
tained
set
Exchange
5% rule of the
in
scale, in
public.
The
the
(Continued
and
the nomi n a t e d
scope of the hearing of June 13,
but
so
com¬
1944. The Commission, in its order
pletely
does
of June 1, 1944, ordered that the
he
dominate
hearing be held on the question,— the
situation
nullifying and'
and
of
not
not treated in this brief
the, reason that they
seem
to fall within the
revoking the
tions
are
for
order
NASD.
re¬
number of is¬
a
having to do both with the
subject matter of the so-called
and
an
extensive
an
choices
On Winning The Four Freedoms
sues
before the Se¬
for
hereinbefore
petition
ferred to raised
pending
curities
SPENCER STEEL
requiring temporary intervention,
peace-
time
The Issues
petition
*M0XIE CO.
WICKWIRE
behalf of the investment banking firm
falo, N. Y,, in
now
aspect
The other
one
—
Maguire of Albrecht, Maguire & Mills, Attorneys, Buf¬
Co., of Buf¬
the
The
to peace.
war
attended'by a, of it can be much alleviated by
lively pent-up good governmental administration
demand
Frank
of S. C. Parker
&
Teletype NY 1-1203
part of the workers that would be
but, unless it should happen that
on
HAnover 2-8970
turning hecessary to satisfy the markets.
Our problem here, a shortage of
ploughshares appropriate equipment, is a prob¬
is a retooling lem of material and of time, lit
problem. . We cannot, therefore, be forthwith
may,
with dispelled. It involyv.es not only
some
confi¬ employment
but
rationing-4to
dence, expect prevent an inflationary Tise -in
the advent of prices. It is, however, essentially
peace
tti
be a passing problem and the burden
"Interpretation" And
-"Rule" Is An "Obvious Attempt At Circumvention"—
Maintains- That "A Fixed Spread Can Drive Out The
Very Men Who Are Improving The Reputation And
The Standing Of The Over-Counter Business" >
Frank J.
Broadway
swords into
Between
falo, N. Y. has filed a brief
39
New York 6, N. Y.
of
Buffalo, N. Y. Submits r Brief To SEC Holding That
Distinction
J,v
The
illlii And In Fact, A lule"
NASD's
J. GOLDWATER & CO.
Members New York Security Dealers Assn.
tempo of the war should
slacken slowly and peace come
gradually, we shall, in the pro¬
duction of' those goods, be un¬
equipped to employ more than a
employment
;
tions.
Frank J. Maguire, Attorney
QUOTED
the
mal" condi¬
uThe 5% Rule
-
.
Record—Mth. $20 yr.
Monthly Earnings Record—Mth'.. .$20 yr.
I Members^New ^York Stock Exchange I
SOLD
-
Complete Statistical Information
chasing Power—Says Plan Would Stabilize National
Economy At A High Production Level And Prevent
Cyclical Depressions—Outlines A Scheme For A Federal
Commodities Corporation
Bank and Quotation
Newburger, Loeb & Co.
BOUGHT
*
.
$31.00 per year.
'
v
,
Inventories And Increasing The Public's
Supply Of Pur¬
Spain), Asia,
Other Publications
^ •-•••'-'".-.v-
CERTIFICATES
,
posite Units" Of Commodities To Eliminate "Frozen"
Greats Britain,
year;
per
Australia and Africa,
...
for quotes
us
;■ \
i:• •:''
v
$29.50
Cuba,
Continental Europe (except
'
I
.
William B.
TITLE COMPANY
,
Holding That Full Employment Is An Institutional Prob¬
lem, Dr. Graham Proposes A Monetary Authority With
Powers To Issue Currency In Buying And
Selling "Com¬
••••*'
Subscriptions In United States and
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; Soutn ana
Central
America,
Spain,
Mexico
and
CERTIFICATES
;'y-v
by
-.1
:.«*
3, 1879.
TITLE COMPANY
."
V v.!':<Vvv'r
Employment
By FRANK D. GRAIIAM 7 '* '
Professor of Economics, Princeton University
i'1-.
v*
St.,
25, 1942, at the post office at New
N. Y., under the Act of March
York,
Specializes in
•
Salle
Reentered as second-class matter Feb¬
ruary
Securities Department
f.
•.
1944
Copyright
:• ■
Post-War
.
Chicago 3, 111. (Telephone: State 0613);
1 Drapers' Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith.
129
V.
Our Real
S.'La
135
Offices:
Other
DIgby 4-8640
■■
.
.
Teletype NY 1-832. 834
•
<
(complete statistical issue—market quo¬
tation
records; corporation,
banking,
clearings, state and city news, etc.) •
Ass'n
Dealers
and every Monday
;
STRAUSS BROS.
Members
Roosevelt,
is
one
also
of
speech delivered by
Thomas
WEAF
Roosevelt
of
and
radio
station
National
casting Company
the
(Continued
Members New York Security Dealers Assn.
Broad¬
over
the
DUNNE & CO.
25
Broad St.,
New York U, N. Y.
Tel. WHitehall
3-0272
July 7, 1944;
page 195)
on
on
having directed attention to the attitude
our
of the National Association of Securities Dealers in the
I
proceedings
pending before the Securities and Exchange Commission to de-
now
termine whether the "5%
philosophy" constitutes
a
American Cable & Radio
rule, and if so,
During the
course
of the hearing on June 13, 1944, three oppo¬
:NASD
I
despite this,
made
<
5 -tion's
in
in
opposition, but
oral argument was
no
behalf
of
the
Associa-
stopped there. However, at the '
close of the hearing, counsel for
to file
plying
one
i,
position
to
—-
support
in fact
the
no
existing
5%
Clearly
Inc.
brief, but to file a re¬
In other words,
Wyeth&Co.
brief.
in after the whole; case
disclosed to it. This position j
the
Association
was
being
within its rights if it chose not
i
to
any
presentation
and
opposed
by
the
lawyers
NEW YORK 5
165
40 Wall St.
Broadway, New York
Members Los
for the Securities Dealers Com-
(Continued
on page
Second quarter analysis
available on request
C.E.
the NASD wanted to get the last
was
:•
make
a
*
word
yardstick.
.
& Trust Co/
HODSON& COMPANY,
the NASD applied for leave, not
oral
argument was presented .by:any¬
f
I
argued
Public National Bank
Becwutici
nents of the instant conduct of the^1
;
Warrants
Pacific Qoait
what the Commission will do about it.
•
■..
■
647 So.
Unterberg&Co.
Members New York
LOS ANGELES 14
61
Spring St.
Security Dealers Assn.
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
Angeles Stock Exchange
Teletype NY 1-1666
196)
»
*
*
y
srrs
4
Thursday, July 13, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
172
Art Metals Cons.
Oxford PaperCom.6- Pfd.
Croweil Collier Com.
Cespedes Sugar 7V2'39
Philip Carey (Mfg.)
Warren Bros. "B" & "C"
We
are
active in
Consolidated Electric and Gas Company
;
Gisholt Machine Tool
Interstate Bakeries
Bought - Sold
Quoted
-
Buda Co.
H. H. Robertson
115 BROADWAY
Wickwire Spencer
TELEPHONE
Pollak Manufacturing -
Seattle Gas Company
105 WEST ADAMS ST.
CHICAGO
NEW YORK
BARCLAY
Common
>r
:
Coav. Pfd.
^
5
1954
;T 5
Company
1958
\
•
* Prospectus
•'--"
Croweil Collier P. Com.
*
1958
•
4% 1966
j
Southern Cities Utilities
TELETYPE NY 1-672
7-0100
5
••'•/-
*„..
,
•
Common
>
*Moore McCormack Lines, Inc.
1962
6
*
Company
fLong Bell Lumber Corporation
Principal Exchanges
"A"
:
Corporaton
Iowa Southern Utilities
Goodbody & Co.
Members N. Y. Stock Exchange and Other
Company
'
request
upon
Merchants Distilling
ACAIXYN^COMPANY
Consolidated Textile & Bonds
Southwest Natural Gas
Dictograph Products Co.
-
Purolator*
Boston &
Com.
•••,
•
"•
.*
-•
•
f
;•
.
•
,
'.
.
.•••'
•
•' 1
Incorporated
New York
Chicago
$1.10 against 60c in 1943
1944 earnings are
Me., Prior & Stpd Pfds.
Conn. Light & Power
•
Boston
.
Milwaukee
Minneapolis
i
Long Bell Lumber*
Approx. Market 4—4%
«
PHILADELPHIA
BOSTON, MASS.
Nu-Enamel
Title Guar. & Trust
Troster, Currie & Summers
Liberty Aircraft
Member
Riley Stoker
74
American Hardware
Trinity Place, New York 6, N. Y.
Wires
Private
General Tin Investment
to
Public UftiL 5%s
G. Semler
January 1; 1975/59
Price: 118.433 & Interest
To Net 1.80%
Bought
if* y | j)
POST
-
Sold
-
Quoted
Circular
;
Corporation
Shenandoa Rayon
Terminal & Transportation
508-12
Uranium
.
,
,
New York Curb (Assoc.)
fCleveland Stock Exchange (Assoc.).
r,»
••'... '•:
•
*
always
Street
Pine
30
Long Distance: LD 71
Bell Teletype: TO 190
4
a
t
'
Bell Teletype:
-
NY 1-865
MSTA Advertising Notes
"B"
Industries*
National
inform members of the
we
$1,800 in
over
on
BUCKLEY BROTHERS
Members
♦
Don
E.
Los
Francisco
S.
F.
Bell
650 So. Spring St.
196
Phila.
Chicago,
Pub. Serv. 6% & 7% Pfd.
Amer. Gas & Power & Wrnts.
New Eng.
Light
&
Pub.
Southwest
Com.
Power
Serv.
Electric
Washington Gas &.E1. 6s, 1960
Gas
Derby
&
Illinois Power Div. Arr. and Com.
Peoples
Lt. & Pwr. Com. & Pfd.
American
Cons.
Utilities
Elec.
Service
Pfd.
& Gas Pfd.
Iowa Southern Util.
Central
Elec.
Nassau
&
&
Com.
Tel.
Com.
Suffolk Ltg. Pfd.
Queensboro Gas & Elec. Pfd.
IPuget Sound Pr. & Lt.
Mass.
Power
Scranton
I
&
Lt.
$2 Pfd.*
Springbrook
Water
Pfd.
Stromberg Carlson
A.
L.
Du Mont Lab. "A"*
I International Detrola
I
Please contact your
•
Majestic Radio & Tel.*
42
Heads Trust fiosiMtte®
Arthur
S.
Kleeman, President,
Stix & Co.
__
—
is
$6,400.
Can we double this now?
Harold
B.
Smith, Chairman,
Advertising
Committee,
Collin, Norton & Co., N. Y.; Alfred
W. Tryder, Vice-Chairman, NSTA
Advertising
Committee,
H.
T.
Greenwood & Co., Philadelphia,
Pennsylvania.
Signal
*Circular
on
(Special to The Financial Chronicle)
CLEVELAND,
Request
Kindred
(Special ty The Financial Chronicle)
120
]
broadway, new york 5
REctor 2-8700
NY 1-1288!
Direct wires to Boston & Phila.
ENTERPRISE 'PHONES
Hartford 6111
—
Buffalo 6024
St. Louis l.Mo.
F.
associated with the
have
become
First
Cleveland
CHICAGO, ILL.—Vernon J. Giss
has
joined
the
staff
Kindred & Co., 231
Street.
with
Mr.
Giss
of
Barcus,
South La Salle
was
the First National
Chicago.
Members St.
Corporation, Na¬
Louis
Stock
Exchange
Bank Building.
Mr.
Brandfass was formerly a partner
tional
City
in H. K.
Hastings & Co. of Wheel¬
ing, W. Va., with which he had
of
for
associated
been
years.
Otis
years,
a
number
of
Mr. Ehrhardt was Cashier
•
&
Co.
for
more
than
20
and recently has been with
Merrill
It
Lynch, Pierce, Fenner &
D.
Deyo
Vice-President,
as
Chairman
of
the Trust Committee of the bank.
Street, New York City, members
department.
a
Mr.
Rawls
Vice-President of the
Trust
Co.
since
1929.
Prior to that he had been with the
National Bank of Commerce since
January,
1917,
and
was
a
Vice-
LOS ANGELES, CALIF.—Miles
associated
A. Sharkey has become
with Stern,
West
Eighth
Los
the
Stock
was
Frank & Meyer, 325
Street, members of
Angeles
*
and
Exchanges.
formerly
an
President of that bank at the time
O'Melveny-Wagenseller
it
in
organization in 1929.
Sharkey
officer
Bank of
merged with the Guaranty
to
held
be
Investment
July
com¬
17.
Mr.
Vice-Chairman
now
of
Group, will succeed F. Ken¬
Stevenson, who has called
year.
fore
a
the membership
;
Members
committee
First
& Durst,
John
&
Bros. &
nominating
Frank
Corp.,
Maxwell,
and
for vote in
;
the
of
are:
Boston
Co.,
Barr
for the ensuing
The slate will be placed be¬
the fall.
of
charge of the trading depart¬
ment.
tee to pick a slate
New York
Mr.
formerly
was
the
of
meeting of the nominating
neth
bankers,
announce
that Edward H. Rawls has become
been
chairman of the New
as
Group
meeting of the executive commit¬
investment
Guaranty
of
Bankers Association at the annual
the
of the New York Stock Exchange,
that Frank A.
Reynolds & Co. will
reported
Willard,
Kidder, Peabody & Co., 17 Wall
had
York
mittee
Kidder, PeaMy Co.
associated with the firm's under¬
is
be slated
appointment of Charles D. Deyo,
Edward Rawls Joins
v
Willard
Charles
.
writing
Giss With Barcus,
Members N. Y. Security Dealers Assn.
OHIO—Ray
Brandfass and Edwin F. Ehrhardt
NSTA
Chicago Tractions
STREET
***
local mem¬
General Instrument*
OLIVE
509
Beane.
give them your assist¬
Last year we grossed over
SECURITIES
INVESTMENT
and
ance.
Magnavox Corp.*
Submarine
I
committee
being enlarged.
bers
I
I
above
PH 265
N. .Y. WH 3-7253
ST. LOUIS
of the following represent¬
Summerell, 0'Melveny,<$>-
the
—
RIT 4488
Angeles
Colonial Trust Co., announced the
& Durst Inc., Los
Angeles, Calif.; Kermit B. Sorum,
Allison,* Williams Co., Minneapo¬
lis, Minn.; Joseph H. Weil, Weil
&
Arnold,
New
Orleans, %a.;
Ralph C. Carr, Ralph C. Carr &
Co.,
Boston,
Mass.; Phillip J.
Clark, Amos C. Sudler & Co.,
Denver, Col.; Wm. M. MacRury,
Paine, Webber, Jackson & Curtis,
Milwaukee, Wis.; Jos. C. Phillips,
Drumheller,
Ehrlichman
Co.,
Seattle, Ore.; Ray P. Bernardi,
Cray, McFawn & Co., Detroit,
Mich.; Ernest E. Blum, Brush,
Slocumb &
Co., San Francisco,
Calif.; •; •;:
v::,
And
Philadelphia 2, Pa.
Teletype
.
ing affiliates:
Airlines
San
Bldg.
Wagenseller
Conn.
Philadelphia Stock Exchange
Walnut St.,
1529
advertising for our special supplement to
The National Committee is composed
>
Russ
to
Security Traders Association that
in issue of "The Chronicle" following our meeting in
Aug. 25 and 26.
Mid-Continent Airlines
Northeast
have
appear
Airlines
Airlines
Chicago & Southern
Airlines
Inland
Airlines
report
H. R. BAKER & CO.
to your National Advertising Committee
It is most gratifying
AIR LINfS
National
;j
Members New York Stock Exchange
"A" &
Export
request
on
*
Northrop Aircraft
Herrington
Setay Co.
American
Memo
SECURITIES
Green 9-2432
Send for our current
Marmon
American
Tax free in Pennsylvania
on
PACIFIC COAST
Shoe, Com. & Pfd.
Tokheim Oil Tank & Pump
Yuba Consolidated Gold
Great
available
Telephone: Bowling
Douglas
Drill
Company
and MARKETS
j;
New York 5, N. Y.
Ohio
"k ^Telephone: Adams 6131
Alegre Sugar
Sugar Com. & Bonds
United
FRANCISCO
H. H. Robertson
.
;
PHILADELPHIA
CURRENT INFORMATION
^
Madison Ave.
Toledo 4,
Pub.
McFadden
Members of
Chicago Board of Trade
Gay
•Talon
Punta
.'v
New York Stock Exchange
Whelan
Cigar
-
Teletype BS 69
.
"B"
International
Vicana
;
-
SQUARE
MASS. • .
COLLIN, NORTON & CO.
Remington Arms
Eastern
&
request
9,
1990
SAN
Car
Wilcox
on
Pfd.
Moncure Riddle & Co.
OFFICE
BOSTON
Tel. HUB
-
Axton-Fisher
for Copies
LERNER 8c CO.
.
Lawyers Mortgage Co.
San-Nap-Pak ...
A
Botany Worsted "A" and
Brockway Motor*
Triumph Explosives
Available—Send
Circular
Great Lakes Terminal Warehouse
Candy
United
3V4% Bonds
Stock 2 9/16-2%
10
Auto
City of Philadelphia
(Pa.)
Louis
Line
INDUSTRIALS
R.
$IQp,000
Div. Arrears Ctfs. 19-20
Panhandle Eastern Pipe
Loft
Industry
Giant Portland Cement
Buffalo—Cleveland—Detroit—Pittsburgh—St.
Hearst Pfd.
Cent.
an
Bright Future
a
Teletype 1-376-377
Telephone HAnover 2-2400
Magazine Repeating Razor
With
Association
Dealers
Security
York
New
Low-Prieed Stock in
A
Stanton,
Chairman;
Tucker, Anthony
W.
Manning
Co., Inc.
Barr,
173
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4298
Volume 160
Panama Coca-Cola Bottling Company
PEACE TIME POSSIBILITIES
r;
*P. R. Mallory
Emerson Radio
Bird & Son
*Moxie
*
York
Angeles
Coca-Cola Bottling Co. "A" of Cincinnati
Coca-Cola Bottling Co. of Chicago
Coca-Cola Bottling Co. of St. Louis
Coca-Cola Bottling Co. of New
Bendix Home Appl.
Scovill Mfg.
Circular
BOUGHT
request
on
Established
C®.
&
Phone:
1-1288
Enterprise
'Phones
;
QUOTED
5s, 1953
Aldred Investment Trust
4V2S, 1967
Brown
Company
1959
5s,
74
Trinity Place, New York 6, N. Y.
Telephone: BOwIing Green 9-7400
Teletype: NY 1-375
Wires to Boston & Phila.
Direct
—
York Security Dealers Association
Members New
V
' Members New York Security Dealers Association
1926
SOLD
—
Established 1914
2-8700
REctor
Teletype NY
Bell
Abitibi Power & Paper
HoiiRsseSTrsster
120 Broadway, New York
WAR®
SECURITIES^
Red Rock Bottlers, Inc.
Consolidated Cement "A"
*
CANADIAN
Coca-Cola Bottling Co. of Los
-
Consolidated Paper Co., Ltd.
5y28, 1961
Hartford 6111—Buffalo 6024
Internat'l Hydro Electric
6s, 1944
Steep Rock Iron Mines, Ltd.
5J/2«, 1957
Bendix Home Appliances
*Dumont Labor
ww-j.
i..
■
j
•
if" >• v
>- /•" ,":j -
./•
'■< ',«• '
fV,^
Atlas
Plywood Corporation
j.
.
Emerson Radio
HART SMITH & CO.
COMMON STOCK
52
Electro!
Traded
on
* Circular
..
;
Sold
—
on
^
Request
New
York
Dealers
Security
REctor
.
5s,
Association
6s,
which is
We have prepared an analysis
V-
available upon request
Boenning & Co.
.
PHILADELPHIA
NEW YORK
Municipal Finance
STOCK
5s,
EXCHANGE
i
6s,
Frederic H. Hatch & Co.
PHILADELPHIA 3, PA.
PENnypacker 8200
Bell System Teletype
New York Telephone
Race 32G6
PII 30
COrtlandt 7-1202
I
Nat'l
City Bank Holds Time Is Not
There Are Overlapping Taxes, Insufficient Regard By
Government For The Taxes Of Others, And A Poor Ripe
For Monetary Stabilization
63 Wall
Correlation Of Tax Resources
With Government Re¬
sponsibilities—Urges Setting Up A Joint Federal-StateLocal Fiscal Agency
problem of post-war municipal finance might
of a number of settings. For example, it might
in any one
relation
New York 5, N. Y.
Incorporated
Street
Bell
Teletype NY 1-81)7
American Locomotive Old Pfd.
be discussed
be examined
to
demands
general
of
co-ordination
local,
Sees Need For
Taking One Step At A Time In Making
Specific
Adjustments And For Settling Pressing
Problems First In A More Simple Manner
New
In the July
issue of the "Monthly Bank Letter" of
Minerals
Greendale
One
in
1953
Research, U. S. Treasury Dept.
Treasury Official Points To Need Of Post-War Co-ordi¬
nation Of Federal, State And Local Revenues — Finds
the
1968
Tyler Building (N. Y.)
(ASSOCIATE)
CURB EXCHANGE
5'/2s, 1951
>
Peoples Gas Co. (N. J.)
By WALTER W. HELLER *
The
1948
1606 Walnut Street
In The National Economy
<
1946
Eastern Minnesota Power
1014
,
NY 1-2480
MEMBERS
Assistant to Director of Tax
1975
East Coast Public Service
4s,
ESTABLISHED
MEMBERS
Post-War
American Water Wks. & Elec.
2-5288
System Teletype
Beu
4
Community Water Service
New York, N. Y.
111 Broadway
equity with exceptional
Post War Outlook
'• ■- v '•
J.I'.Reilly&Co.
Members
:
HAnover 2-0980
St., N. Y. 5
Bell Teletype NY 1-395
New Yorkv
Montreal
Toronto
New York Curb Exchange
An attractive
Bought
WILLIAM
/
^Majestic Radio
Strcmberg Carlson
-
-
Lehigh Valley Coal Sales
Bear Mt. Hudson River
.
Bridge
Chicago East IIL R. R. Old Pfd.
v..:
the National
City Bank of New York, the view is expressed that the convening of
Nations Monetary and Financial Conference at Bretton
the United
Woods, N. H., to formulate a general plan of international monetary
State, and Federal fiscal systems.
level of local
stabilization is premature. In view of the diversity of views, more¬
And, in turn, a sound, national
services or of
over, and the requirement that any measures adopted by the con¬
economy demands the harmoniz¬
a
specific
ference must be approved by the«>ing of municipal, State, and Fed¬ individual
service
like
governments of the that far ahead and in the face of
eral finance.
schooling
or
participant nations, there is not so much that is unknown. When
The moment we probe into any
fire
commitments
have
been
proteclikely to be much accomplished their
one of the fields of taxation, pub¬
tion.
Or it
toward setting up a permanent safeguarded to the extent they
lic
borrowing, and government
could be disthink necessary, almost nothing
and satisfactory organization.
expenditure, it becomes evident
cussed in;
remains but our commitment to
"All this points strongly to the
that the fiscal systems of our three
terms of over¬
put up the money."
stated
the
Letter,
levels of government lack har¬ conclusion,"
"In
the meantime,"
all city plan¬
continues
"that the time is not ripe for the
mony and are badly in need of
the article, "there are a number
ning and- ur¬
setting up of elaborate and de¬
co-ordination.
of much more immediate prob¬
ban redevel¬
tailed mechanisms in this area.
lems in the monetary field as.
opment.
Or
Conflicting Taxation
There is not yet sufficient real
for example, how to take care of
one might ex¬
Probably the most obvious un- agreement
on
principles — the
the relief situation in enemy and
plore muni¬
coordination that exists is in the statement of the experts to the
occupied countries. Then there is
cipal finance
field of taxes. Here we find over- contrary
notwithstanding — and
the question of the next step be¬
in terms of its
the uncertainties are too
great.
(Continued on page 192)
Walter W. Heller
yond relief—how to provide cap¬
mainstay, the
The plan says that it is not -in¬
ital for the rebuilding of warproperty tax.
tended to cover the needs of the
torn industries.
Should we use
But the American Planning and
transition period at the close of
the Export-Import Bank, and, if
Civic Association' — recognizing
the war, but ldoks to the period
how tightly the local economy is
so, how should its powers be ex¬
beyond when more normal ex¬
tended?
Questions such as these
interwoven
with
the national
change relations will have been
carry
much more into the field
economy and how important it is
CSpecial to The Financial Chronicle)
Gude, Winmill & Co.
Members New York Stock Exchange
1 Wall
St., New York 5, N. Y.
Teletype NY 1-955
DIgby 4-7060
"
American Maize Products Co.
General Tin Investment
Tokheim Oil Tank & Pump
Co.
Universal Match
Frederic H. Hatch & Co.
63 Wall
Incorporated
>
New York 5, N. Y.
NY 1-897
Street
Bell
Teletype
Bruse Sedion How With
Newhard, Cook & Go.
reestablished.
,
local, ; State, and
Federal taxes and fiscal policies
-—has asked for a
discussion of
to
coordinate
LOUIS, MO.—Bruce Seddon
has become associated with NewST.
hard, Cook & Co., 4th and Olive
post-war municipal finance in the Streets, members of the New York
broad setting of the national econ¬ and St. Louis Stock Exchanges.
omy.
And this, it seems clear, is Mr. Seddon,- a member of the St.
a realistic setting. For the munic¬
Louis
Exchange,
was
formerly
like it."
cannot "live alone and
They draw on the entire
national
economy
ipalities
for their
President
Mbrfit
Seddon,
"C
Harvey, Inc.
•
beyond their own borders.
Healthy municipal
finance de¬
mands a healthy national, econ¬
far
Efficient municipal finance
SPRINGFIELD, ILL.
—
Clifford
15, 1944. The
views expressed are the author's
own "and not necessarily those of
Nichols & Co. and Lowell Niebuhr
the Treasury Department.
Springfield.
Naturally,
tate
to
commitments
make
for
&
his
Co.
and
own
in
the past
investment
conducted
business
in
of
AUDITS
proposed United Nations
than into that of a stabili¬
the
Bank
-
EXAMINATIONS
TAXES
-
•Inaugurating
zation fund.
(Continued on page 195)
-
SYSTEM
an
accounting
and business management
ser¬
specifically designed to be
small bro¬
vice
of assistance to the
with
Trader Available
appointment, apply up to
Corbrey, Biltmore Hotel, Los An¬
Seeks
connection
Stock
Draft exempt.
Carter H. Corbrey & Co.
650 S. Spring- St.
135 S. La Salle St.
Chicago 3, 111.
-
Los Angeles 14, Calif.
experience. Own
clientele. / Large
York
\
-
without regular
are
which
businesses
are
clerical help or
hampered by reduced cleri¬
cal forces.
Desires to make a new connec¬
tion, 18 years
August 1st, to Carter H.
.
small
wholesale
For
all
unlisted security dealer and
Executive
WANTED
geles.
specialist, the
kerage house, the
'
geles office.
.
.
what
and retail contacts for Los An¬
Wright has joined the staff of
* An address made by Mr. Hel¬ Investors
Syndicate,
Roanoke
ler before the American Planning Building, Minneapolis, Minn. Mr.
and Civic Association Conference, Wright was formerly with Ryan
■
knows
or
England and other countries hesi¬
Experienced,
Staff
Syndicate
W.
f
one
(Specialto The Financial Chronicle)
.
St. Louis, Mo., June
no
REPRESENTATIVE
C. W. Wright Joins
Of Investors
But
that will take,
the conditions will be.
&
sup¬
port, and their responsibilities go
omy.
of
how long
production.
with
Exchange
New
firm.
Box R 1, Com¬
mercial & Financial
25 Spruce St., New
Chronicle,
York 7, N. Y.
Services
by
qualified
ac¬
specialists who have
had many years of, diversified
stock brokerage income tax and
financial experience. Inquiries
invited — moderate fees.
Ad¬
counting
dress
replies
to
Box
BA
8,
Commercial & Financial Chron¬
icle,
25
8, N. Y.
Spruce St., New
York
Tait Doubts Congress Will Pass
SPECIALISTS
Monetary Stabilization Plan
in
MARKETS IN
TRADING
v
Senator
Real Estate
REAL ESTATE
Securities
V
'•
^
Since
■
U
1929
■
40 EXCHANGE
Bell
)
PL.,N.Y.
A.
Taft
fund
monetary
July
predicted that, approval by
any agreement for an
drafted on the terms of the original
on
House would
or
Times"
Seligman, Lis bet kin & Co.
Exchange
Exchange
Incorporated
Members
-
Dl0by 4-4950
York
New
vv''
which
Security Dealers Association
Broad Street, New York 4
41
from
<*>-
international
Washington,
on
July 11,
also
"More
in
By JOHN WEST
Xll
adopt
AND
Past
H. TIPTON
SECURITIES
CORP.
Members N. Y. Security
Dealers Ass'n
BROADWAY
mi
commercial activities of the borough.
The property was reorganized^
Y.
NEW YORK 6, N.
WOrth 2-0510
in
1937, the original -mortgage
being $3,500,000 reduced at this
time to $2,885,300 through. serial
maturities prior to reorganization
and by operations of the sinking
Active Markets in
fund
3V4%
REAL ESTATE
per
interest
Fixed
since.
has
annum
since reorganization.
of
been paid
Part of the
reorganization plan provided for
a deposit with the trustee of $32,-
SECURITIES
be maintained
500 cash to
and to
insure
continuity of fixed interest.
the amount
this account
is $36,416.01, there having been an
increment
in the fund
through
of April 30, 1944,
held hy the trustee in
As
VALIQUET & CO.
135 So. La Salle St.
ties.
,
>j
■
coverage of interest requirements.
anriual-statement, even care¬
fully ahalyzed,
be misleading
and give a wrong impression to
ariy one considering the purchase
■
Incorpor¬
Group,
63 Wall Street, New York
is offering a new class of
ated,
City,
Group Securities, Inc., known
Bailroad
as
Stock
Shares, with an
initial authorized capitalization of
Formal
shares.
1,000,000
an¬
provide a diversified, constantly
supervised investment in selected
railroad stocks, was delayed by
the sponsors pending completion
may
securities.
of
A
concrete
very
example is the annual statement
of the Court & Remsen property
which shows that interest require¬
quite covered. A
little investigation, however, dis¬
closes the following facts. ;
•
•.
ments
were
The
designed
nouncement of the stock
a
An
Railroad Stock Shares
.
happen, occupancy
property will vary and cer¬
tain periods with a low occupancy
ratio may show a very narrow
Sponsors Mm TrustDistributors
:vUu
■
As will often
of
Distributors Group
investment of
on
Government securi¬
in
the funds
Central 4402
CG-81
earned
interest
CHICAGO
not
property
Reminding
investment
of their recommendations
dealers
on
rail¬
bonds three years
road
tributors
between
ago, Dis¬
Group draws a parallel
the bond- position then
and the stock
position today.
As
to the latter, they state "the re¬
covery of their investment status
is proceeding rapidly," and "in¬
trinsically,
stocks of
our
selected
common
leading railroads are
he has in the past to
22
said:
"I
number
of
classes
of
Securities, Inc., a mutual
fund with aggregate assets in ex¬
cess of $30,000,000 and represent¬
ing the combined investments of
more than 13,500 shareholders.
Merchants
Distilling
Corpor¬
ation and Standard Silica Corpor¬
ation
offer
interesting
situations
and
wage
controls
our
opinion,
can
easily attain a
r
York
Stock
Exchange.
"Of
bill
final form
v
compromise
price control
a
and form
cooperate
States
a
permanent consulting
body to study the problems which
submitted
based on
Sen¬
which in
goods
that
con¬
will
our
not
be
long
are
assets
gone
entirely made
up
i;
whole of the elaborate
machinery seems to be designed :
to
cover
up
the fact that our
money is, in effect, to be loaned;
away by a
board, in which we
have only a minority interest. The l
same thing is true of the United
Nations Bank,' and the total cost
to this country of the two plans is
likely to be more than six billion
dollars, with no assurance of sue-;
cess, and little chance that we will f
ever recover any part of our con¬
,
tribution.
think Congress will
plan which (1) places'
American money in a fund to be
dispensed
by
an
international'
board in which we have only a
minority voice; or (2) requires
our Government to regulate, re¬
strict and regiment transactions in
foreign exchange in this country
and impose complete Government,
"I
not
do
approve any
control of all international trans¬
fer of funds; or
in
(3) places power,
representative
of
the,
some
President,
without approval of'
Congress, to change the gold value
of the dollar."
Wage Rate Rise Ashed
By Frankensteen
^
Richard
T.
automobile
leader,
unions
aircraft
July 11 called for "in¬
on
creased
CIO
Frankensteen,
and
rates
wage
support
to
which
otherwise decline sharply as
purchasing
will
power
over-.
time is reduced" and said that he
foresaw
a prospect that munitions
employment might; drop by 3,-*
000,000 by the year-end. ,> This
was indicated, in Associated Press
dispatches from Washington, on
July 11 in the New York "Sun,"
which added:
,
elimi¬
by
Senator
Bankhead
would
its original form
the law
for
all
a
rigid
cotton
items, and a requirement
ceilings guarantee man¬
the
\
signed by
(Continued
on page
183)
_
.
on
L.
June
30, dis¬
regarding lab o r's
appeal
for
a
H.
Henry F. Cassidy Is
Bradshaw
Editor
"Investment Timing"
With Fairsfian & Go,
veto.
While
finally
as
passed
it
ANGELES,
CALIF.—
Hgnry F. Cassidy has become
associated with Fairman '& Co.,
.LOS
is
ference,
it
is
in
some
respects
weaker than the 1942 act which it
It
is
not
expected
to
material rise in the
general level of prices, but it may
1
that the
personally
States (should
make,
or
in
,
the goods neces¬
to revive their economic sys¬
tems.'
to- a provision that the
OPA adjust ceilings on.- "major"^ to
was
believe
from this country
sary
.OS
U;
"The proper course
would seem
agreement
with the British regarding the re¬
lation of the dollar and the pound
'and "then take up the other coun¬
tries, one. by one, and attempt to
assist them *by direct credits,- if
necessary, until their foreign ex¬
change can be stabilized without
be
loss..
to
reach; some
C.
H.
Hatch &
Wade*& Co.
Co.
and R.
other
dispute"
C, countries
financial
are
again
basis.
To
on
set
a
sound
up
an
the
within
agencies
government
re¬
garding resumption of civilian
production "is preventing the de¬
velopment of any scheduled re¬
of
any
non-military
production which would take the
place of war output."
sumption.
The
CIO
was
for what he said
its claim that
would
war
hindered
be
the
criticized
leader
War Department
by
production
a
limited
return to civilian production,
and.
said "the armed services' cries of
'Wolf!
Wolf!' in this respect have:
in the past so
be
often been found to
exaggerated."
•
With First Securities Co. J
to The Financial Chronicle).
(Special
VThe proposed
said > "the
Frankensteen
War Production Board and among
.
fund is not large
enough to deal with the post-war
650 South Spring Street, members emergency situation and no such
of
the-Los
Angeles - Stock Ex- fund could be large enough. It is
change.
Mr. Cassidy was for¬ much larger, than necessary to
merly with R. D. Bayly & Co., eliminate minor fluctuations after
and prior thereto was an officer normal production is resumed and
of
•Mr.
continuing
making, direct loans to
foreign nations for reconstruction
during the emergency period. The
Republican platform favors 'as¬
sistance by direct credits in rea-,
sonable amounts to liberated
countries to enable them to buy
erably
mittee confer¬
It
Nearly sub-committee, "to reassure work->
ers
regarding their future jobs."
Bank.
.
United
join
one
was
ufacturing costs plus a profit to
mills. The latter was eliminated,
and the former modified consid¬
nated in com¬
ence.
amendment
formula
pricing
of
amendments,
most of which
were
"I
Changes
have written into
carrying
number
Nations
United
Cotton Textiles—The most con¬
ate aftd House
bills
Chief
.
troversial
separate
replaces.
United
the
■with the other nations to that end,
complicate OPA's enforcement and the
legal problems.
plans.
was
result in any
request.
everyone
American expert outside of
Treasury has criticized these
in
Copies of these analyses may be
upon
recognizes
stabilizing in¬
exchange.
All desire
course
every
Bill
The
had from Faroll &
Company
of the
u- ■the desirability of
.
:
Compromise
the Senate and House sent to in¬
New
terms
*
:A;vU;:
enforcement procedures.
A
Faroll &
the
many
repre¬
it.
approve
better than either of the bills that
Company, 208 South La
by
press
are
according to analyses prepared by
Salle Street, Chicago, members of
the
what
sentatives
board, the
;
,
■
renewed for another year in the arise, • and -recommend national
"It
is U imperative * from
the
But v very v few
which extends to June 30, 1945 action.
approve
the Emergency Price Control Act of 1942 and the Stabilization Act the plan for a huge International standpoint of continued war out¬
of 1942 with some modifications in the present pricing, regulatory and Monetary Fund or the plan for a put," he told a Senate military
Price
Roosevelt
!
and
correspondents
as
President
Interesting Situations
asked
been
have
They will
Stabilization Extension Act of 1944,
a
the
stabilize for¬
eign exchange, it would not en¬
dorse any plan based on the terms
of the original statement.
In his statement, Senator Taft
Price Control Continued One Year
gram
Group
Robert A. Taft
as
of the May 1, 1944,
agreements now being negotiated
renting season, which was also
at Bretton Woods are to be, and
the beginning of a new fiscal pe¬
whether they have been or will be
riod, leases in effect on a 90%
approved by Congress. I can't an¬
occupancy basis showed an annual
swer the first of these questions
rent roll of approximately $315,because of the secrecy which sur¬
000, excluding vacant space which
rounds the Bretton Woods confer¬
is being offered at $30,000.
We
ence,' but I can say that in my
are advised that the current fiscal
opinion no agreement for an inter¬
year operating expenses as budg¬
national monetary fund on the
eted will be comparable to the
terms of the original joint state¬
$126,000 expenditure in the past ment of
experts will be approved
year.
Without giving any effect either
by the Senate or the House
to additional revenue that may be
of Representatives.
obtained from any leases for the
"This plan was sent out by the
present
vacant space earnings
should be sufficient to cover" the Secretary of the Treasury to the
representatives of the other United
fixed; interest
and to provide
Nations and they may naturally
about $37,000
for sinking fund
assume
that it has the approval
operations which would be the
of the Government of the United
equivalent of 4x/2% on the out¬
States. It is most important that
standing bonds.
v
•
At current levels the first mort¬ they realize that this is not the
fact and that Congress is more
gage fixed interest fee bonds se¬
cured by this property offer : a likely to disapprove the plan of
the Secretary of the Treasury than
yield slightly better than 8% and,
extension pro¬
to
fund
tion
that
substantially undervalued." Stocks
Railroad Stock Shares increases
use
ternational
presently selected for investment
by Railroad Stock Shares consist
of
the
common
and
preferred
issues of 22 leading railroad com¬
panies.
and
to
a
will
fund
"The
stabiliza¬
the
to
of the Fifth War Loan drive.
other
tary
the
of weaker worthless currencies,
would author¬
75%.
in
of
all
and the fund is
u o u s
ize the Secre-
through the major portion of the
fiscal year ended 4-30-44 with an
occupancy ratio of 65%, the last
few months' occupancy was in¬
creased to about 90%, the average
for the fiscal year being about
operated higher market level, j
was
It
ours.
before
countries
.
However,
dispensed by
than
a
with
office building known as Court & Remsen Building
is well located in the important business district of Brooklyn, N. Y.
and provides space for financial, insurance, law, real estate and misT
cellaneous business firms, one important tenant being the Travelers
Insurance Company. The section is the center of the business and
the
trol of which is held by countries
whose currencies are much weaker !
consultations
The 28-story
C.
in
assets
contin
Figures
from-
from this country.
providing
An Example Of Looking Ahead Instead Of At
f
TUDOR CITY UNITS
Prospects Bright :j'
be
Con-
would
pact
for
g r e s s
Court & Remsen Building Earnings
Stocks
come
he
although
believed
real
the
a
statement that
FRED F. FRENCH
important
standpoint, however, is
the substantial fact that nearly all
The Senator
Real Estate Securities
now
American
said
Buying
exchange fund
is to put the cart before the horse.
said:
HAnover 2-2100
Teletype NY 1-953
We Are Interested In
11
be made for
joint statement of experts, sent out by Secretary Morgenthau to the
representatives of the other United Nations at the Bretton Woods
conference, it was reporsed in a special despatch to the "New York
SHASKAN & CO.
Members New York Curb
Robert
neither Senate
international
SECURITIES
Members New York Stock
Thursday, July 13, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
irt
CHICAGO, ILL.—Frank K. Fet¬
ters
has
become
associated
First Securities Company of
cago,
105
members
Exchange.
with
Chi-,
South La Salle Street,of
the
Chicago
Stock
Mr. Fetters has been
with the Government since 1935.
THE COMMERCIAL &
Number 4298
Volume 160
FINANCIAL CHRONICLE
Specialists in Railroad Securities
•
Underlying Mtge. Railroad Bonds
Minority Railway Stocks
v
,•
Delaware, Lackawanna
Lease Line Railroad Securities
•
B"yMORE
ASION
Guaranteed Railroad Stocks
•
•
®
War Bonds
WAR LOAN
th
<
& Western Railroad
New York, Lackawanna
& Western Division
Reorganization Railway Bonds
Selected
Situations
all
at
ICTORY
Times
1st &
(
Refunding 5s, 1973
Income 5s, 1993
JB.&$).
GUARANTEED RAILROAD
I
61
INCORPORATED
55
Broadway
"
j
Members
New
■
-
New York 6
Broadway
Telephone—DIgby 4-4933
New York 6, N. Y.
Issued)
York Stock Exchange
''
XTS?
:
(When
PFLUGFELDER, BAMPTON & RUST
STOCKS-BONDS
American Cable
Bel1 Teletype—NY 1-310
!•
& Radio
Railroad Securities
Metallic Money Or
Warrants
The quiet that has pervaded the new issue markets during the
past few weeks is scheduled to be broken with a bang with termina¬
tion of the Fifth War Loan Drive. While there have been no new
,,
Managed Currency?
been
approaching the final
able at any time on
a
few months the
change are also going
only
ings.
L
April
.that
.
come,
sooner
-perhaps than many realize, when
•the flood of paper and alloys, is¬
sued in many parts of the world
"and misnamed money, will have
lost all value. We then, no doubt,
shall witness all over, again an
.attempt on the part of
the pro¬
ponents of managed currency to
foist their system on the unwilling
•masses. But if hindsight is an aid
foresight; if bitter experience
to yield us profit; if human
-to
is
needs
within
value
given area,
the bound¬
that yalue is put in question.
ary
Valid here,
cannot
;
fulfill
tomorrow
which
will
.
of
world
demand.
But
those
whether in coin,
Great
480
grains
specie or bar, and
weighs
still
metal
of
ounce
frontier.
distinct
As
from
in
satisfaction
of
"We have
heard' the ^argument
.that hard money is a relic of bar¬
^often
as
-of the
it has been tried because
obvious limitations of the
who, as human
beings, share those frailties com¬
mon
to us all.
But were they
:currency managers,
neither
could
they
supermen,
delegate nor bequeath their om¬
niscience.
>
•
f:; "In the archives and museums
.we.find beautiful samples of the
•engraver's. art in the form of
worthless Mark, Ruble and Lira
.notes,
Assignats,
"Shinplasters"
and what not, all executed on the
•
orders of
onetime currency man¬
There also are to be found
ancient coins, Ducats and Sequins,
Pistoles, Doubloons and Pieces of
agers.
:iEight, each, with; its historical, in¬
terest.
But
ference
as
to the material dif¬
.them
between
all,
■
the
-scales have the answer which all
.can
see
.needs
no
character
and
understand.
Man
as to the
usefulness of gold
explanation
and
•and
silver, which is why his at¬
tachment to them endures. Where¬
as
of
Louisville
Northern
&
and
upon J
of
needs
readjust
to
are
paper,
is
now
selling
at
105
at
1
on.Oct.
on
conflict.
"As
we
all
-
'?
know,; money
has
call the tyo un¬
of the junior mortgage
later
LaSaile
St.,
Chicago 4, 111.
SEABOARD AIR LINE
RAILWAY COMPANY
Specializing in
Underlying Mortgage
and
Leased Line Issues
Van Tuyl & Abbe
72
somewhere between
plate any reduction. Rather, it is
expected that debt reduction will
be confined to the Unified Mort¬
tremes seems
gage
able
derlying
Hens,
leaving
thfe two
3 Vas and 4s which are call¬
45 to 50 days' notice on
A substantial reduction in
mortgage
A solution
the two ex¬
likely,' with the un¬
last-named program
Special analytical letter
will apparently be scheduled for
This road's
it is the medium of ex¬ later in the year.
change and it is also a store-of; junior 3%s have also advanced to
value. In the first two particulars, a premium, which will facilitate
the refunding operation, but un¬
money is admittedly affected with
a
public interest; but as a' store; fortunately the high .coupon series
on
request
would
$48,000,000 face
of bonds of which perhaps
$5,000,000 to $6,000,000 could be
paid in cash. The first 3%s and
refunding 5
could both .be
of value,
\
41/4s» I960
involve less than
value
three functions: It is the measure
5
.
1rhe
on
YORK
BALTIMORE & OHIO
for
derlying liens and refunding 5 V2s
refunded and the 4V2S left until
later.
WALL STREET
NEW
consideration.
ing will presumably not contem¬
this
}
So.
ad¬
be
it would
series
is expected, with
the balance placed on a fairly rap¬
idly running-out serial basis.
The Great Northern refunding
in
Broadway, New York 5, N. Y.
231
be.
days' notice. There are about $54,000,000 of the three higher coupon
series outstanding and the refund¬
of
are
believe
visable merely to
Jan. 1.
the ; community,
because, as
matters now stand, those interests
may
program
Others
60
terest of the individual with that
called for Oct. l,,the
on
148 State
St., Boston 9, Mass.
Tel. CAP. 0425
:
:
Teletype BS 259
^ N. Y. Telephone HAnover 2-7914
former at 101
30 days' notice and
the latter
60 days' notice.
Toledo, St. Louis & Western
first
Post-War Period & Rails
The
at
4s
107%
on
callable
are
on
interest dates
McLaughlin, Baird
Wall
Street,
New
&
Reuss,
1
City,
York
members of the New York Stock
to be treated as, of this mortgage are not callable,
concerning the individual rather; at .this time. A refunding will be (also April 1 and Oct. 1) at par, Exchange, have prepared an inter¬
than the community. Thus,- if in¬
aimed largely at getting rid of the; but six months' notice must be
esting discussion of "The Post War
dividuals are permitted at will to
series G and series H convertible!
given.
;;
Period and the Railroads." Copies
store great quantities of money
4s, 1946.', Both of these bonds are;
of this
discussion
may
be had
and, in this manner, rarefy those; callable at 101 on nine weeks' no¬
stocks' which, because they con¬ tice on Jan. 1. As of the end of Walker With O'Rourke Co. from the firm
upon request.
(Special to The Financial Chronicle)
stitute the basis of the price struc¬ last year the aggregate amount
CHICAGO, ILL.—Fred M. Wal¬
In;
ture, are indispensable to the com-^ outstanding was $5-3,524,700.
munity, they become a menace to addition it is believed likely that ker has become associated with J.
of value it is apt
P. O'Rourke &
Co., Board of Trade
all its members. For although ex¬
the management will
of the unit,]
money
measures
prices by ; lts
quantity — not by its unit. Hence;
whosoever ' seriously - alters
the
volume of money at once injects
Mr. Walker was form¬
tage of tnis opportunity to elim-; Building.
mate
the^ two underlying liens, erly with the Tax Bond Company
($9,695,000
Eastern Railway of; and
prior thereto was special as¬
Minnesota 4s, 1948 and $35,668,000:
sessment trader for Goven, Eddins
pressed ! in
terms
(Continued
by law, may be endowed
Discussion
•
money
for" money
junior
long-term
to the
120
Plate
Nickel
the
In some
quarters it is
claimed that it
should be possible to refund the
entire
mortgage debt—first 4s,
1947; Toledo, St. Louis & Western
4s, 1950, and refunding 5%s, 1974
and
41/2S, 1978—but even with
some cash payment this would in¬
volve somewhat over $100,000,000,
which appears a bit ambitious.
the
Nashville,
York,
callable
can
1
three
on
Elimination of the
Apparently
New
trade flourish if it is continuously
which
1,
proposed refunding is not so far
advanced as the others, and there
is no information as to how broad
mortgage 33As
a substantial
premium and the higher coupon
series (4s, 4%s and 5s) arp all
cess
system
a
management —
ancillary. to trade
and not the other 4way around.
barism; but those who advocate)
metallic
money, system ,is
return to the use of precious met¬ The
suited
to
regulation
als are not indulging in fetishism eminently
which requires but common sense
.—-they merely have a genuine ap¬
in its; application. What is chiefly
preciation of • the utility of gold
and silver. They know that cur¬ needed to give it stability is the
rency. management has failed as successful harmonizing of the in¬
-
-
to
liest, and should come along al¬
most
immediately.
The
road's
regulation,
continuous pro¬
no
money nor price
withstand; nor can
management is
prior
Chicago & St. Louis. The firstnamed is expected to be the ear¬
either side of any
on
which
high credits in the industry.
Chief among the refundings now
under
active
consideration
are
weight and fineness are universal,
an
interest dates,
on
Oct.
and
months' notice.
the
not classified among the
railroads
war were
"Mon-
the
role
the
1
York Stock Exchange and other
leading Security and Commodity Exchs.
the fire, but by and
of
worthless there, paper
Courante"
naie
of
a
crosses
on
called
find
to
are
days to come, we shall have
the
'none
with
the moment it
f
.
will
time
"The
.•*>
...
be called
New
large such underlying liens will improve the
obligations were held in high re¬ position of the general mortgage,
gard even during the time of most giving it a first lien on the entire
abject pessimism towards the rail¬ properties, and should thus facili¬
road- industry as a whole so that tate refunding at a low interest
their refunding is no cause for cost. The refunding will also likely
call for a fairly substantial reduc¬
surprise. The effect of the change
in attitude is to be found in pro¬ tion in outstanding debt through
use of treasury cash.
posals for refunding by a number
says
deviate from sound
never
we
principles.v
tendency,"
MEMBERS
90 days' notice
Eastern' Railway 4s can
the
but
participate to an important de¬
gree in the contemplated refundto
Rene Leon in a booklet just, released,
with soundness by stressing the temporary character
,of monetary proposals designed to bridge over the difficult times to be
traversed in the direction of final objectives. But if we surrender a
little here and a little there, we may well find ourselves engaged
-far along a road become too difficult to retrace. Therefore,- however
slow our pace, it is imperative ♦>
V;
"There is a
"to compromise
The 414s are call¬
callable at 105.
rails for
A number of terminal issues are
j
QUOTED
—
sen-f>
timent in the past
That Managed Currencies Foster Inter¬
national Economic Retaliation And Strife
SOLD
community has
refunding have
stages.) Indicative of the complete change
there has been in investment
—Urges The Pricing And The Protection Of The Precious
Metals And Of The Exchanges By International Agree¬
ment, And Holds
—
offerings during the period of the drive the banking
not been idle, and preparations for a large volume of
As "A Con¬
Process Which No Price System Can Withstand"
Rene Leon Condemns Managed Currency
tinuous
BOUGHT
of
on page
;
"THE POST WAR PERIOD
194)
vi
take advan-j
Great Northern first and
Grand River
refund-;
ing 414s, 1961), both of which arq
&
Co.
A
We maintain active trading
\
V
Valley R.R.
1st 4s,
markets in:
SEABOARD 4s/50
i
■
1959
•*'
I
Circular
.
on
"
...
request
SEABOARD 6s/45
and THE RAILROADS"
•
•
:
'
Copy
■
on
Mclaughlin, baird & reuss
Members New York Stock Exchange
ONE WALL
TEL.
HANOVER
STREET
2-1355
SEABOARD 4s/59
SEABOARD-ALL FLORIDA 6s/35
request
NEW YORK 5
TELETYPE NY 1-1310
1. h. rothchild &
co.
52 Wall Street
HAnover
2-9072
n.
/
Adams & Peck
63 Wall
specialists in rails
y. c.
5
Tele. NY 1-1293
Street, New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
Thursday, July 13, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
176
Tomorrow's Markets
Common Stocks of
Walter Whyte
DERBY GAS & ELECTRIC
Says-—
FEDERAL WATER & GAS
UTILITY PREFERREDS
MISSOURI UTILITIES
PUBLIC SERVICE CO. OF COLO.
is eager to
G. A. Saxton & Co.,
ESTABLISHED 1879
70 Pine Street, New York 5,
WHitehall 4-4970
Public Utility
Making Rapid Integration Progress
Cities Service
buy.
?
By WALTER WHYTE
Inc.
*
N. Y.
kept
market
week's
Last
Teletype NY 1-609
*
the
up
has
started
tempo
about three weeks
Securities
No im¬
public
strength dissipating.
mediate reaction while
PUGET SOUND POWER & LIGHT
Paine, Webbeb, Jackson & Curtis
Leader
market.
dominate
still
fears
inflation
Market
NORTHEASTERN WATER
or
so
ago.
Broker-Dealer Personnel Items Up to this writing practically
every stock on the Board has
If you contemplate making additions to your personnel
gone up; not only the leaders
please send in particulars to the Editor of The Financial
but the cats and dogs as well.
Chronicle for publication in this column.
All of which brings us back
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
to the point of wondering how
LOS ANGELES, CALIF.—Helen
BOSTON,
MASS.—Harold
E.
Winch
has joined
the staff of M, Bryson, Edith G. Runyan and long before some kind of a re¬
„
its assets at
over a
to about $861
millions, is trying to get out of the utility business so that it will no
longer be subject to SEC regulation under the Holding Company Act.
Judging from available earnings figures it is an oil-natural gas sys¬
tem with utility "trimmings," and hence sale or distribution of its
gas and electric retail properties ♦
Company, which formerly carried
billion dollars but has now marked them down
Cities
not
will
Service
basic set-up
change the
greatly.
to
addition
In
Light
&
Power
Cities Service
and the retail
operations of Arkansas Natural
Gas, Cities Service controls a few
small
utilities,
principally dis¬
several
tributing natural gas, and
of the latter may
perhaps be re¬
set-up.
in the final
tained
& Light,
Service Power
Cities
Cities Service
1943
In
reported
$4.06 (before reserve for contin¬
gencies, but after substantial al¬
lowance for -depletion, etc.).
On
this basis the common stock is
over four times
However,
allowance
must be made for readjustments
necessary to dispose of substan¬
tial arrears on preferred stocks,
refund early bond maturities, etc.
It is possible that the company
will attempt an overall recapi¬
at little
selling
earnings.
sub-holding company, has
toward meet¬
talization since it would appear
ing SEC requirements. Last year
it sold an important subsidiary, practicable to refund all its 5%
bonds with a 3^2-4% issue, par¬
Public Service of Colorado, and
ticularly if secured by deposit of
disposed of several smaller com¬
the big
made rapid progress
the
oil-system stockholdings as
It was recently an¬
The
three
preferred
that
Empire
District collateral.
Electric will merge with several stocks, paying 6%, would also be
refunded into a lower coupon rate,
smaller affiliates, and the com¬
it is assumed, when arrears are
mon stock (held by Cities Service
taken care of.
The SEC would,
P. & L.) will be sold simulta¬
of course, have to approve such
neously with a bond refunding.
a
program.
By disposing of its
A substantial bank loan was ob¬
Trusteed
'
St.
tained
in
April in
order
to pay
stock;
thi^.in turn will.be paid off with
proceeds of sales.
Finally, the
system will be reduced to two
important Ohio companies, and
the
will
tendered
its
clear
kansas
rears.
Cities
Service
Company
had
a
good record in the old days—it
paid preferred and common divi¬
dends
during the period 19111932.
(Special
that time
Since
While
been
has followed
the
from the
refunding program, and
Federal taxes would absorb part
preferred dividends have
earned with a good margin
change. Allowing for the
result, the stock is perhaps
selling not far from 6 times ad¬
justed earnings on an oil basis,
net
nothing has been
paid except for a small amount
the first preferred in 1941. In
12
years
the property
account
drooped from
$1,143,000,000
to
$666,000,000 despite expenditure
on
some
it is estimated.
Temple,
Common stock of the Atlas Ply¬
acquisition.
Bonds, notes and preferred stocks
were reduced by some $251,000,000
t^e
while
system
More
net
current
wood
Corporation offers an at¬
tractive equity with an exception¬
al post war outlook according to
a
study of the situation prenared
by Boenning & Co., 1606 Walnut
for
assets
increased $72.000 000.
ranid' progress
could
have
been made in recent years except
Street, Philadelphia, Pa., members
for SEC rules which handicapped
of
the company
change.
Copies of this interesting
analysis
may
securities
at
in acquiring its
deflated
own
values
in
the
Philadelphia
/Y! ning & Co.
the open market.
for
years
many
with
Hawley, Shepard & Co., has be¬
associated with Hornblower
come
Weeks, Union Commerce Bldg,
&
Stock
Ex¬
be had from Boen¬
upon
request.
was
Bankamerica
Co.,
650
Spring St.
Mr. Buckhout
formerly with
Samuel B.
Franklin
&
and H.
Co.
R. Baker
with
associated
now
St.
Dale
Mr.
(Special
previously
was
CALIF.
has
Brubaker
—
Louise
Bldg.
S.
Reagan
Philip
B.
connected with
&
Co.,
609
now
are
Hopkins,
Stockho
is
MO.—Fred
Mr.
Ave.
BROADWAY, NEW YORK 6, N. Y.
Direct
Wire
to
Chicago
one
But
in the other direc¬
disregarding tech¬
nical factors there is another
which
market
this
to
*...
(Special
SAN
*'■')
v...'./''!v■'■'■"■a/••''.? *
discussed in
col¬
this
which
recent is¬
a
sue, is no longer an academic
subject. Marketwise the fear
CALIF.— of inflation has already taken
to The Financial Chronicle)
FRANCISCO,
ica Co. and Searl-Merrick & Co.
america
Montgomery St.
Co., 300
But
hold.
been
far it has not
so
recognized by the huge
masses
ito
market
Does Mot Look For Post-War
Last
sudden spurt
a
in commodities. Not to
this increase to be
the
to
"Fortnightly Market And Business
stock
whom
saw
we
the
nothing.
means
week
Increase In Pries 01 Gold
E. F. Hutton & Co.'s
#
*
'
Inflation,
umn
James II. Jones is now with Bank¬
consumer
Food is
expect
passed
on
naivete.
is
item that is not
one
Survey" Discusses The Gold Situation After The War
deferable.
"Fortnightly Market and Business
Survey," issued by E. F. Hutton & Co., members of the New York
Stock Exchange, there is an extended discussion and analysis of the
post-war monetary situation with reference to the status of gold.
After taking up such topics as "Gold Mining Securities as a Substitute
for Gold," and discussing the advantages and disadvantages of gold
as money
and as an investments
the author considers the question uting to the deterioration of the
of a probable change in the U. S.
banking
system," it is pointed
price of gold.
out, "have been (a) a sharp in¬
"The
principal arguments of crease in money in circulation,
bought and repaired and al¬
tered time and time again. Its
In
those
the
July
issue of the
6
contending
that the U.
S.
gold has been
$60
price ceilings
But we also
favor
deposits due to point.
of
little they mean.
whether or not you
inflation, is beside the
The question here is
financing
deficit
through the banking system, and
A con¬
(c) loss of gold reserves.
know how
Now,
how will the market,
most
sensitive to
Offhand the
true market
gold and that the U. S.
setting factors that deserve con¬
$35
sideration:
the
Advocates
free
prices represent the
of
an
ounce,
must be
raised.
tinuation of the trend of the
which is
underlying
sji
great expansion of
bank deposits and bank notes in
countries at war, a world-wide in¬
crease
in the price of gold
(in
terms of the
dollar, pound, franc,
and other currencies) is necessary
obtain
higher
ratios
of
gold
The
huge Government debt
during the war can be
only if post-war prices
greatly in excess of pre-war
*
*
•
year
low in the
"(a)
Because of
"2.
in existence.
market
ounce.
that
of
be
may even be de¬
But not food.
It is
true that certain
are
can
trends, take it.
contend
price
Government
ferred.
past
to $80 an
value
inflation
(b)
purchase
Clothing
could reduce the Federal Re¬
serve ratio to
a level considered
selling for the equivalent of from
past, but there are off¬
obvious:
the
answer
seems
market will go
But that is an oversim¬
requirements of plification.
First of all mar¬
up.
Reserve
member banks in other than
Cen¬
kets seldom discount the same
tral Reserve cities are double what
they
were
and
in
prior to August,
Central
Reserve
thing twice.- And the present
move is largely based on in¬
54% flation spread. But one thing
1936,
cities
York and Chicago)
Thus, there is hidden the market can't forecast is
strength in the banking system.
public psychology. If the pub¬
By reducing requirements to for¬
lic thinks things are going
mer levels, member bank reserves
could sustain a much greater vol¬ higher and thinks so strongly
(New
greater.
created
ume
serviced
the withdrawal of additional cur¬
rency
deposit liabilities and/or
of
without assistance from Re¬
banks. The. overall condi¬
Sys¬
enough, backing its judgment
cash, then things will go
with
higher. No matter how im¬
ponderable technical factors
tem is better revealed by. the ratio
may-be they can't stand be¬
of gold reserves to total note and
fore a stampeding public.
prices, and a gold price increase
serve
tion of the Federal Reserve
Considering the gold-price sit¬
29
equal
tion.
&
previously was with Wyeth & Co.
Mr. Reagan was with Bankamer¬
cline
Co,
The swing of
one direction
countered with an
be
R.
Co., Inc., Ill North Fourth St.
Lasher
price level."
&
current
pendulum in
*
II.
Slayton
with
now
Harbach
Grand
South
and
Lasher
uation with reference
Gilbert J. Postley
.
small shake-out
a
to be sufficient.
.
LOUIS,
is "essential to support this higher
request
...
tyros are in the
many
market for
facet
are
common
'
of the picture.
out
(Special to The Financial Chronicle)
"3.
upon
to
the staff of Lester & Co., Citizens
Bank
is
must
added
been
Too
the
to The Financial Chronicle)
RIVERSIDE,
M.
ST.
bilities.
Prospectus
Co-
levels
(Special to The Financial Chronicle)
LOS ANGELES, CALIF.—Ramsdell
*
must receive consideration.
holdings to note and deposit lia¬
South Bend R. R.
is
burn & Middlebrook, 465 Congress
& Co.
to
Chicago, South Shore and
Dale
R.
ME.—George
ANGELES, CALIF.—Gor¬
with
v/.;
Technically speaking, a
"
South
v,
*
*
-
(Special to The Financial Chronicle)
PORTLAND,
don E. Buckhout has become affil¬
iated
Y-'
St.
with F. L. Putnam & Co.
(Special to The Financial Chronicle)
LOS
action sets in.
Co.,
&
minor reaction from
OHIO —Robert
CLEVELAND,
T.
"I. In free markets,
property
Wyeth
Financial Chronicle)
The
price for gold will be raised," the
article continues, "are:
D
Post-War Outlook Good
$300,000,000 for construc¬
and
tion
the
of
in recent years,
of
difficult. In this con¬
recapitalization for Ar¬
Natural Gas, a sub-hold¬
utility properties but on the other
hand there would be some gains
com¬
a
to
a
.
program of
retrenchment and debt reduction.
pany
of
poined
647
have
Thompson
W.
staff
There
remaining prob¬
ing company which is about threequarters wholesale and one-quar¬
ter retail, may also prove neces¬
sary,
as
that company is over¬
capitalized.
Earnings would naturally be re¬
duced somewhat by loss of the
as
up
some
Lee
the
too
nection
part of a program
preferred stock ar¬
stockholders
to
prove
preferred
own
be
disposing of the smaller
utility interests but this should not
be sold
Company or
Service
to
Light
of
lems
probably either
Cities
by
&
interest would be divorced.
would
& Light
of the Power
stock
Power
holdings (to preferred stockholdfers or otherwise) its major utility
off. all bonds and preferred
Co.
Service
Cities
Broad
South Spring
panies.
nounced
89
Inc.,
Funds,
,
the
in
the
Federal
reserve
Reserve
to
the
position
Banks,
de¬
liabilities
deposit
banks
and
the
bined.
On Dec.
19.4%
article states that the U. S. bank¬
was
ing position is stronger than the
of
1926,
statements indicate.
as
a
"The
principal factors contrib¬
a
time
of
membdr
of
Reserve
banks
31, 1943 this ratio
whereas
at
the
close
date arbitrarily picked
when the condition of
(Continued
on page
*
*
*k
com¬
194)
■
I'll
admit
that
right
now
the market doesn't show any
urgent signs of a breakdown.
(Continued
on page
197)
Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4298
177.
ments
Social Security In The
are now exceeding Public
which has declined except
for aid to dependent children.
The budget for the fiscal year
ending June 30, 1944 shows trans¬
Aid,
fers to the federal trust funds for
old age
(Continued from first page)
it will prevent or
war
mitigate
a
-post-,
and
survivors
■'
•
••'
Health ■ Insurance
'/■'
The newly published cost esti¬
;
mates for the
national
proposed Canadian
health
scheme
challenging.
are
still
About
$150,000,000 annually is to be contrib¬
uted by individuals, and an addi¬
tional $100,000,000 by the Domin¬
ion Treasury.
Singl e persons
earning less than $660 per year
must pay $12.
Married persons
earning less than $1,200 and sup¬
porting one dependent pay $24.
For the next higher income cate¬
gories the basic annual levy is $30
for single persons and $50 for
married persons with one depen¬
more
dent.
•
'
Disbursements will
cover
a
$20.00
mo
n't h;
been
of
are granted and eligibil¬
ity is made less restrictive.
The
retirement age 'for women
(and
the eligibility age for wives) is
reduced to 60 years.
Casual, farm, and domest 1c
workers are undoubtedly among
those most in need of unemploy¬
ment coverage. In such cases the
problem of collecting contribu-;
tions from employers is so for¬
midable
that
no
protection is
likely in this generation.
If the
experiences of the post-war years
convince
the
American
people
that the program is desirable,
these workers may receive bene¬
fits
well as • all necessary
medical, surgical, nursing, hospital, and dental services.
The
Dominion Treasury is to support
selves
as
$10.00 per
Permanent
disability
instead
benefits
limited supply of drugs and appli¬
ances,
has
increased, and the minimum is to
depression.
be
i'
benefit
from
funds
and
on
levied
on
them¬
the' general
tax¬
• :
.r:i,
:
National Resources Planning
payer.
•
•
'
may
and
advice of both economists and
ac¬
be added;later. Physicians
tuaries to the effect that social in¬
hospitals are to contract with
surance
the
•
and survivors amounting
$1,392,000,000,
and
expenditures of
curity
The forced saving
000.
be proper during
boom, since one half is
may
from
wages
se¬
is not like the insurance
government, and patients are
sold by a corporation, and that ah
given free choice of physician.
actuarial reserve is neither neces¬
Grants-in-aid
are
provided for
nor
advisable.
A private
medical education, research, and sary
company must consider its ability
prevention of disease.
to pay benefits should any con¬
Other New Provisions
tingency arise (e. g., no new pol¬
Another part of the bill con¬ icy sales), and therefore needs a
tains complete and liberal pro¬ sizeable reserve Government in¬
visions giving social security pro¬ surance is, or can be, compulsory.
The original plan of a full re¬
tection to discharged service per¬
sonnel.
Public employment of¬ serve is gradually being aban¬
fices are to be continued under doned. Its growth has been checked
the
Federal
government.
(Un¬ by increasing expenditures (sur¬
employment insurance is to be vivors benefits, 1939) and by post¬
standardized
by •• federalization, poning the increase in tax rates.
and extended to cover temporary Nevertheless, some reserve is be¬
disability and maternity insur- ing accumulated. The Democratic
ance.)
Unemployment benefits administration has favored a re¬
serve because the present cash re¬
are to be uniform throughout the
United States, ranging from $5.00 ceipts could be used to cover the
About $10,000,to $30.00 per week for 26 weeks federal deficits.
in any year, or longer if the So¬ 000,000 in payroll taxes have been
cial Security Board has the fi¬ co 11 e c t e d. Some $6,000,000,000
nances.
The weekly benefit in have been paid into the treasury
each case depends on the prior reserve for old age and survivors
earnings and on the number of benefits,* The original plan called
dependents.
The latter determi¬ for a $1^,000,000,000 reserve by
nant is a significant new develop¬ 1950.
;v-'
,
ment in America.
Although
1943 was a record
The authors of the bill have ac¬ breaking year in terms of emcepted those recommendations of p 1 oyment there were nearly
the National Resources Planning 3,500,000. households deriving all
Board which suggest old age and or most of their income from one
survivors coverage for all except
government
employees.3
and local employees may
Stat e
come in
of
social
the
Almost
cards
security programs.
67,000,000 social security
are
held.
The
This is number
A. L. M.
thirty-nine of
a
series„
SCHENLEY DISTILLERS CORP., NEW YORK
American Bankers
a
11
mencement
and, the other half
But
largely shifted to consumers.5
the provision that old age
an¬
nuity recipients must be unem¬
ployed (still in effect) should be
during any period of
labor shortage. It is quite possible
withdrawn
that old age
NOTE—From time to time, in this space,;
there will appear an article which we
hope
will be of interest to our fellow A mericans.
An honorary degree of Doctor
of
Laws
was
conferred
upon
Wiggins, President of the
Association, by
$796,000,-' the
University
indicated
of South Caro¬
the war lina at its
com¬
deducted
social
exercises
C
o
at
Strange word at the top of lliij
today, isn't it?—"Usque¬
baugh. 'Ttisderivedfrom the Celtic;
in Gaelic it would be "Uisgebetha."
If you will just try to pronounce
the first two syllables you will come
pretty close to saying "Whiskey."-
l umbia,
column
S. C., on June
25. The degree
was
conferred
by Dr. J. Rion
McK i s s ick,
insurance may have President of
the, unfortunate effect of inducing the
University,
capable persons to retire while and was read
the manpower problem
is still
by Dean Brad¬
acute. However, more than 600,ley. In the ci¬
AU this from
tells
the rate of 6% each from the
em¬
ployee
posals
and employer.? The pro¬
in the Wagner-MurrayDingell Bill would require more.
Since the
recipients will be
producers America must give
non-
more
.
.
learned friend who
Vitae," France called it "Eau de
Vie," and in the Scandinavian,
countries it was "Acquavit." They,
all
.
Water of Life,
and termed what
know
we
i;
as
hol, "Elixir Vitae," which
.
alco¬
means
—Essence of Life. And the word1
"alcohol," too, has
blessings of small city and
small-town life, a vigorous think¬
er, writer and speaker on. public
questions and an outspoken cham¬
pion of private enterprise and of
the undiminished rights of Ameri¬
:
mean .;
During the Renaissance period,;
pharmacists went even a bit further
and
freedom."
us
interesting to learn that a number;
of other nations applied a similar,
term to the particular alcoholic
beverages which they distilled J
Way back in the early Middle;
Ages, the Italians made a distilla-;
tion from wine and called it "Aqua
workers, motivated by patri¬
tation, Presiotism or high wages, are still em¬
dent McKisployed though entitled to draw sick called Mr.
old age benefits if they would stop
Wiggins an
work.
"'7
"A '
A. L. M. Wiggins
"outstandingly
When the next depression
successful
threatens, the reserve may be cut newspaper
publisher,
merchant
down
rather, than accumulated. and
financier, a banker who be¬
Such action could help maintain
lieves that a bank should be not
purchasing power, and could avoid only a private business but also a
large collections from employers democratic institution
aiding in
based on payrolls which tend to
developing individual thrift, inde¬
augment the substitution of other pendence and
opportunity, and in
factors of production for labor.
upbuilding the community
an
(Congress is authorized but not ardent believer in the advantages
can
a
that
this rather strange
word means—Water of Life. It is
000
Board proposals rejected by the
Wagner-Murray-Dingell Bill in¬
children under 16, and for any clude federal citizenship educa¬
adults unable to contribute. Gov¬ tion (NYA and CCC?), relief em¬
ernment contribution is an almost ployment if private industrial ac¬
universal feature of old age and tivity declines (WPA?), and so¬
other pensions abroad,2 and there cial security appropriations from
required to maintain the system
is a strong trend in this direction general tax revenues.
on
an
actuarial basis, so that no
in the United States.
The Problem of Reserves
'
change in the law is necessary for
(The bill before our Congress,
reduction of the reserve.)
The
i
Original
Social
Security
like the Canadian extension, pro¬
vides for health insurance.)
For Act proposed a huge reserve with
Conclusions
the taxpayers' contribution tak¬
some
years the Social
Security
The social security experiment
Board has included in its annual ing the form of 3% interest on the
may fail unless we can maintain
•report a plea for a more complete special Treasury bonds issued for
this fund. The estimated receipts high levels of employment and
program,
Amendments suggested
productivity. The British program
include pregnancy leave, mater¬ plus interest were to exceed dis¬
bursements
during
the
earlier assumes that employment will be
nity income, and financial assist¬
years by such an amount that the 90% of the possible. According to
ance in case of accidents or illness
reserve
fund would reach $47,- Sir William Beveridge "full em¬
at: home.
(Present
workmen's
ployment" means at least 91.5%
compensation laws cover factory 000,000,000 in 1980. The American
of the working population em¬
program thus planned a reserve
accidents.)
The
health
insurance
in
the even larger than would be nec¬ ployed, limiting unemployment to
some
1.500*000 men in Great
Wagner-Murray-Dingell Bill is essary if each policy paid its own
Britain and 5,000,000 in the United
offered as an alternative to social¬ way. Such forced saving would
States 5 These considerations seem
have restricted the working class
ized medicine. In administration
standard of living and deepened tp warrant a small contingency
the medical care b e n e f i t s are
reserve, maintained and manipsharply distinguished from the any depression. By contrast, most
ulatedoto help balance the cycle.
cash benefits for temporary and foreign plans operate without any
reserve.'
A thorough simplication of the
permanent disability, the latter
The refusal of our present Con¬ tax structure might integrate the
being combined with unemploy¬
ment insurance.
The medica 1 gress to increase the payroll tax collections at source, combining
rates is partly based on the ex¬ the income
and
social security
benefits cover wives and children
of workers and will pay for spe¬ panded receipts from boom pay¬ taxes. As our own population ages
rolls. More significantly, it seems a "pay-as-you-go" security pro¬
cialist services and hospitaliza¬
to reflect acceptance of the early gram will require payroll taxes at
tion.
Dental and nursing care
the cost of this health service for
.
to
ADVERTISEMENT
Wiggins Honored With
Doctor Of laws Degree
an
interesting:
derivation. It comes from the Ara->
bic"Al Kohl." The process of distil-1
lation
was introduced into
Europe;
by the returning Crusaders—they !
learned it from the Arabs.
|
use of alco- '
beverages made from the fer-,
Ancient indeed—the
V
holic
mentation and distillation of,
Sierck & Cooke Forming
nature's
of
products. And ancient,,
too, the "profession" of prohibi-.
tors, Way back in the dim and.;
distant past, as today, there was
use and abuse of the
gifts of nature.
There were the many who used
these gifts with restraint and ap¬
preciation, and the few who abused
the Exchange for Mr. Sierck who
has been active as an individual
them. But the many always have ,
resented and always will resent any,
Herbert
the
New
W.
Sierck, member of
York Stock Exchange,
and A. Brendan Cooke will form
Sierck & Cooke, with offices at 42
York City, ef¬
Mr. Cooke will
Broadway, New
fective July 20.
act
as
alternate
on
the
floor
floor broker.
v-
effort
J'A
sure
on
the part of
small-pres-I
a
group to penalize them
in which they do not
for
in-;
excesses
Interesting Textile Issue
J.
dulge, and to which they do not1
subscribe.
j
Roy Prosser & Co., 52 Wil¬
liam Street, New York
City, have
Human nature hasn't changed
much has it, since the time they
called whiskey—"Usquebaugh"?
prepared an analysis of West Point
Manufacturing Company, a lead¬
ing unit in the textile industry.
MARK MERIT
Copies
of this interesting study
be had from the firm upon
request.
of Sghenley Distillers Corp.
may
FREE—Send
a
postcard or letter
Schenley Distillers Corp., 350
Fifth Ave., N. Y. 1, N. Y. and you
will receive a booklet containing
reprints of earlier articles on vari¬
ous subjects in this series,
to
productive power of future gen¬
erations.
;;
On the other
serious consideration to the ques¬
fect
tion,
hand, the net ef¬
social security pro¬
gram may
"How much
social security
of
the
be to increase national
Tqo much is spending on consumption, and re¬
about social security in duce saving and investment.
Ac¬
terms of what we would like to
cording fo Robert Nathan (former
have, omitting any reference to chairman of the WPB Planning
necessary sacrifices. The war has Committee) this is exactly what
can
we
afford?"
Cleveland Exch. Members
written
shown
limits to
ability
to tax the rich, but the principal
us new
burden must still fall
our
on
the mid¬
dle and lower brackets.
If less goods are consumed now,
more for the future?
will there be
This would be true if the govern¬
ment could invest the social se¬
curity receipts in such
increase
Many
future
ways as
national
i b 1 e investments, of
would be dangerous po¬
p o s s
course,
litically; implying either
istic
to
income.
government
government
in
lending
a
social¬
business
to
or
private
Distributing Analyses
Under New Program
:
i Interesting analyses of the Cliffs
pansion is to be expected for a Corporation and Cleveland Cliffs
Iron
Company are
being dis¬
generation and interest rates are,
tributed by members of the Cleve¬
approaching the vanishing point i
land Stock Exchange as a part of
Corporations that do expand need
a program
of the newly formed
not go into the capital markets,
Public Relations : Committee un¬
finding it easy to withhold divi- i
der
the
Chairmanship of Guy
dends.
The last depression year
Prosser.
Copies of these analyses
(1939) shows a clear deficiency of
may be obtained from any mem¬
new private investment.
But the
ber of the Exchange or from the
only way in which the produc¬
Cleveland Stock Exchange upon
tivity of labor can be saved for
the future is by storing it up in request. * v..
real capital.
Uf•
we
want.8
Little
industrial
■
ex¬
N. Y.
This situation encourages a
business with the concomitant in¬
philosophy of spending accom¬
vestigations and controls. Only a panied by reliance on increased
few of the
direct expenditures social security to cover illness, old
(public health and child care) of¬ age, unemployment,
and other
fer possibilities for increasing the
contingencies. More fundamental¬
ly, it must be seen that social se¬
5 Under
any degree of monopoly curity will only supplement posi¬
the employer may not be able to tive measures for
strengthening
shift. In a competitive situation the productivity of low income
employers' taxes will be shifted groups and for controlling the
to either the worker or the con¬ business
cycle. Legislation should
sumer,
assuming the tax | bears be concerned with basic causes as
equally on all employers. The cost well as the alleviation of symp¬
eighth .an¬
by voluntary action of their gov¬ nual report of the Social Security
ernments. The maximum old age Board reveals that disability, su¬
perannuation, and death of the of collection remains a business toms.
2 McCabe and Lester, "Labor breadwinner remain as high as burden.
6
normal.
Social
Insurance " pay
and Social Organization," p. 239.
Sir William Beveridge, "The
8
Robert R. Nathan, "Mobilizing
3 National
Resources Planning
Pillars of Security."
for Abundance."
This book has
* "Social
? Harold
M. Groves, "Financing been endorsed
Board, "Security, Work, and Re¬
Security Bulletin"
by Donald Nelson,
lief Policies," Washington, 1942,,.
(monthly report).
Government," p. 382,
WPB chairman.
;
Analysts to Hear
At the
meeting of the New York
Society of Security Analysts to be
held on July 14 Arthur Wiesenberger, senior partner of Arthur
Wiesenberger
on
"How
&
Co., will speak
Leverage
and
Invest¬
ment Trusts Can Be Used to Ad¬
vantage by Bulls and Bears."
The
meeting-will be held at 56 Broad
Street at
On
12:36
July
plm.
17,
Milan
head of the research
Popovic,
department
,
,
.
of
the
Blue
Ridge
will discuss.Tito
in
a
program
vs.
Corporation,
Mikhailovitch
prepared
Foreign Affairs group,
by
the
Analyses
Recent
Request
on
Earnings of the
Oil Companies
LIBERTY BAKING CORP.
Merchants Distilling Corp.
has
oi
Book Value $46.78
$10.34
Earnings
1943
petroleum
discusses
Standard Silica Corp.
Stock
Common
•
Market only
,
Share
Back Dividends $26. Per
,
on
.
:
<
BRAZIL
t-
industry
which
the
present' international
and gives current statistics
the
situation
*
-
New
<
Investment Research Department
just' prepared a
brief anaiysii
Our
Cum. Preferred
Stock
Common
Thursday, July 13, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
178
•_
V
..
Federal
i.,
-
Cities
-
-
t-V •
States
leading companies.
Copy
slightly more than hack dividends
on
request
Bought
Sold
—
Quoted
—
THOMSON & McKINNON
FAROLL & COMPANY
Members
;CASWELL & CO.
York Stock Exchange
arid other Principal Exchanges
Member
New
CHICAGO
St.
So. La Salle
208
CHICAGO 4
We have
an
6s
of
1950
.
>
Missouri Power Com.
this
Doyle, O'Connor & Co.
Incorporated
as
CHICAGO
known as the trades
division which per-,
vital function in the
drive.
CG 1200
was headed by
of Bacon, Whip¬
ple and Co., and vice chairman of
division
Jay N. Whipple
finance committee.
T.
Weller Kimball of Glore, Forgan
the
MARKETS
war
& Co. was a
BAYWAY TERMINAL
Stock
Available to
ADAMS
South
231
Dealers
brochure
page
CO.
6-
Salle Street
La
Chicago h, Illinois
Phone State 0101
Teletype CG 361
n
We maintain
in
est
send
an
trading inter¬
active
the following
circulars
Upon
y
Poor
Co.
&
D.
Altogether, La Salle Street in¬
Co.
the
in the wartime economy.
*
*
*
v' 'y.I
ANDover 5700
ends,
Loan Drive
War
the
As
firms
here- are
pre¬
paring for a rush of new financ¬
ing business. Estimates place the
amount of new securities to enter
Co.
the
135 South La Salle St.,
drive, demonstrating again
important place of brokers,
bankers, and dealers
investment
investment
"A"
Roper
Straus Securities Company
Tel.
the current govern¬
.
Publications
Chicago 3, 111.
Tele. CG 650-651
market in the near
future at
Approxi¬
total will
be in public utility bonds and de¬
bentures, and there is a large
close
to
$1,000,000,000.
mately half of this huge
financing
railroad
of
block
is
Gould,
due.
be
dealers here.expect to
pleasantly busy until the time
government bond cam¬
of the next
Public Service of Indiana Com.
paign.
associated
now
Power &
Light Com.
No. States Power
6
&
(Del.)
Co.
Bear, Stearns
Members New York Stock Exchange
South LaSalle
Chicago
State
3,
N. Y. Office:
Street
brief
analysis of the Petroleum Indus¬
try ' which discusses the present
international situation and gives
years
many
Service,
Smith,
with
:
Cbicago; tefflssilis X§
May At Higli
XX::
Co.,
of
member
the
firm's
,
research
IM Postwar
Program
To Froiide Ms For1 :f
business with
his
a
y
J
view to applying
experience later
Mr.
Koo
was
on
.
new
contracts
of
number
the
awarded for
projects in,Cook
in China. County rising 80.2% over the same
month of last year. X
graduated magna
laude from Harvard in
cum
gain,
a
made
1942
Bank
clearings which* dropped
Bachelor of Science degree,
China's
Ambassador
China's Minis¬
Great Britain, was
ter
to the
received
He too
States.
United
his
to
college
training
XXXyX
the United States,
in
;:-vX
••
in
the
number
ployed. y This
of
persons
em¬
in
increase
wages
had its effect in retail circles, de¬
partment
13.8%.
the
In
store
Chicago.
of
Chairman
education
tne
mounting
sales
of:
committee
associa¬
the
tion
which
deve
loping
is
and will be in
c
h
a r
g e
o
»
f
conduct¬
plan,
the
ing
Julien
described
it
a
as
purpose
^
program:
continued
power
Kitchen & Co. New
.
Dealer Firm in Chicago
CHICAGO,'
One of the most significant im¬
W. T. Kitchen
naturally keen in¬
with offices at 135 South La Salle provements was that shown indhe
Republican National
number
of passengers
clearing
Convention
shown here by La Street, to act as underwriters,
through the Municipal Airport.
Salle Street, and
statements of dealers and brokers in over-the- With several of the lines again in
GOP leaders, as well as the party counter
securities. 'Mr. Kitchen
possession of planes previously
platform, were scanned to deter¬ has been in the investment busi¬ loaned to the military forces, inmine the attitude towards busi¬
and-out traffic was 36% heavier.
ness for over 20 years and for the
ness that was exhibited.
y
The
opportunity for employ¬
years has beenVwith
At the first press conference of past four
ment again had its effect upon the
*
"
Governor Dewey after he received Otis & Co. \
relief rolls. The number of fami¬
the
presidential nomination, he : Formation of Kitchen & Co. was lies in i COok County receiving
into service,
and
DIgby 4-8500; NY 1-633
spoke at length about the Securi¬
ties
and Exchange Commission.
previously reported in the Finan¬ government doles dropped by al¬
most 10,000.
x
Xy.X
cial Chronicle of June 15th.
-.
ing by indoctrination of new men
in the business in sound
The
X
X*
will
which
program,
be
nationwide, calls for "condensed,
professional" courses of training
to
be
cities.
provided in all the major
,
Get It!!
Conv.
MIDWESJX
Locally, each group of the
1960
X
..X
■
Atlas Brewing
Ass'n
Board of Trade Rldg., Chicago 4
Telephone: Harrison 2075
Members
and
New
Company
Stock
Exchange
universities in pre¬
231
South
La
2400
CG
252
of Chicago
Member
of Chicago Stock Exchange
Tel. Dearborn 9200
men
tify
that
209 S, La Salle Street
CHICAGO 4
State
First Securities Co.
*
William A. Fuller & Co.
Members
Salle Street
Winter
of
Stock
course,
•
105
Chicago 4
Tele. CG 146
Chicago Stock Exchange
South La
Salle St.
CHICAGO
Andover
1520
3
a
ready
an
next
returning from the serv¬
start
volume to jus¬
the program by
on
Preliminary
time.
it
was
steps
said, and
association expects to engage
education director to take over
the program on a
the direction of
CG 1399
offering
for
in the event the number
have been taken,
the
Collins
Mr.
proposed to have the
ices has attained a
.
Other Principal Exchanges
Teletype CG 129
York Office
York
Common
Common
•
Sincere and
Co.
the
It ,is
said.
courses
COMPANY
and Common
STRAUSS BROS.
4s,
senting
APPLIANCE
America
for the
Security Dealers
PARKER
Flour Mills of
MARKETS
Wire to New
principles
of finance and investment.
association is to seek the coopera¬
Got It!
NEW YORK
Direct
y: •'
x
(3)' to
assist» in maintaining
high standards of ethics and pro¬
fessionalism in investment bank¬
.
CG 1279
York
'
upward. Electric careers to young men coming out
X X/
consumption
rose
8.7%; of the armed forces,
long' distance
telephone
calls
(2) to help the business recruit
originating in Chicago increased promising young men. from the
10.6%; and the local transit com¬ returning fighting men, and also.
panies all reported heavier fare from
college, campuses
when
ILL.—Kitchen & Co. paying passenger loads. :
graduates no longer go directly
trend
tion of its own
New
;
was
(Continued on page 179)
Members
H. Collins
three-
^XyxXyyx y'
X.
•
(1) to enable investment bank¬
"public utility field the ing
more
effectively y to offer
• ■
has been formed by
There
Com¬
&
pany,
,
slightly behind a month ago came
back to the plus column with an
and this year was graduated from
increase of 4.1% over May, 1943.
Columbia with a Master of Arts
Factory payrolls were 16.7% up,
degree.- His father, prior to being with slightly less than a 2% gain
with
Hall
,
His.
0933
La
<
Bought—Sold—Quoted
135
South
135
Co.,
Street, have issued a sum¬
terest in the
7% Pref.
231
&
cago
14 WalL Street,
City, members of the
New York Stock Exchange, as a.
Barney &
New York
*
*
*
Delaware
for
Investors'
Moody's
All in all,
Central Illinois Eiec. Gas Com.
* *
McKinnon,"
Thomson
fiefiping Veterans xy
vestment dealers have done an ex¬
cellent job on
Detroit Harvester
Geo.
Edson
with
ment
Co.
re¬
upon
X.:V'X.
quest.
department.' Mr. Gould was editor y With one exception, all princi¬
of Moody's Stock Survey, Moody's
pal lines of Chicago business ac¬
Robert A.
Podesta, Kebbon,
Bond Survey, and Moody's Advis¬
An
investment banking post¬
tivity during May showed marked
McCormick
&
Co.; Kinney ■; ory Reports, and in chafge of a
gains over the same period of a war program to provide jobs for
Smith, Halsey, Stuart & Co.,
division devoted to economics, in¬
year ago, it is disclosed in the an¬ returning fighting men aid train¬
Inc.; Andrew M. Baird, A. G.
dustry and stock market research.
alysis just completed by the Chi¬ ing for jebs was announced at
Becker
&
Co.;
Edward C.
Freeman Fu-Chang Koo, son of cago
Association of Commerce. Chicago July
:
George,
Harriman
Ripley
&
V.
K. Wellington
Koo, China's The lone laggard was the Chicago 10 by the InCo., Inc.; Homer P. Hargrave,
Ambassador to the Court of St. Stock Exchange where the num¬ ,v e s tm en t
Merrill Lynch, Pierce, Fenner
James's, has also become associ¬ ber of shares exchanging hands Bankers Asso& Beane; Walter E. Kistner, A.
ated with Smith, Barney & Co. and their combined market value
c i a t i o n
of
C. Allyn and Company; Dun¬
America.
in
the firm's New York office, dropped behind 1843.
y-Xy. y-:,,y.
can
M. Rowles, Harris, Hall &
Julien H. Col¬
Building construction again led
where he will prepare himself for
Company; and Kenneths L.
lins, of Harris,
the field in the proportions of its
Smith, Chicago Stock Exchange.
the
investment
and
brokerage
request-—
Black Hills Power & Light Co.
Consol.
divisional vice chair-,
assisting were these
STOCKS and will
American Barge Line
Hearst
Also
man.
Flour Mills of America
South La Salle Street, have a
f
&
South
will furnish latest
information regarding earnings of
had from the firm
financial leaders:
CORPORATION
Common
i
.
new
Kitchen
Sincere and Company, 231
La Salle Street,
of the prospects of the Chi¬ current statistics on leading conX
and Southern Air Lines, Inc,-- panies. Copies of this interesting
Copies of this interesting study analysis may be had by writing to
the Investment Research Depart¬
may be had from Kitchen & Co.
ment.
y ?xx: .V- .XX X;;
r...
;
upon request.
XX'X-'X.
Also With Fiitn
The
Four
RANDOLPH 4696
mary
Son Of Ambassador Koo
a
request,
Salle
formed
3
Dearborn 9600
ACTIVE TRADING
.
Smith, Harney 1
Mr. Clarke created a new oper¬
and industries
La Salle Street
upon
Edson 'Gould* Hot? Willi
ational group
-
which may be
and Cook:*>
guidance, busi¬
has played a greater part in
campaign than in earlier ones,
County. Under his
ness
135 S.
rV'
Toronto
Indianapolis
V
-
4
Chicago Recommendations
Chicago
in
mittee
Bakeries Preferred
Interstate
York
Brailsfcrd & Co., 208 South La
standstill, on
La Salle Street during the past month as the financial community has Salle Street, have prepared a com¬
analysis,
up-to-date
pitched in to sell government obligations during the Fifth War Loan prehensive
Drive.
Vr.•
>v■ :
X-X:
Xy.X;'\ earnings record and current com¬
Philip R. Clarke, president of the City National Bank and Trust ment on Chicago North Shore and
Milwaukee
Railroad,
copies!
of
Company of Chicago, has been chairman of the. war finance com¬
Douglas Shoe Common
W. L.
„~N>w
activity has been practically at a
Private financing
Midland Utilities Gs of 1938
Arkansas
CHICAGO
CHICAGO 4
Central 5690
Phone
1122
Street
Salle
La
So.
208
231 South LaSalle Street
>
Chicago Brevities
active interest in
Electric Power
Portland
CG
Teletype
all
and
Tele. CG 156
1430
Andover
Phone
ILL.
3,
ZIPPIN & COMPANY
Stock. Exchange
principal exchanges
York
New
V
SALLE STREET
LA
SOUTH
120
■■
full-time basis.
■
.
XX
;
•
•
*
./*
"
X '>'!■' '■
n.v
'
,
Volume 160
Number 4298
THE COMMERCIAL & FINANCIAL CHRONICLE
179
J
V
TRADING MARKETS IN
—
Yielding
over
8% each at
market
current
HOTEL SHERMAN 5s/57
MORRISON HOTEL
Maryland Dry dock Common
Miller Hart, Inc., Prior Pfd.
'
(Information available
on
Members New
v
'Si
:
York and Chicago Stock Exchanges*
^ '
BOARD
for the better that has
with
It
the
is
come
retailing
brokerage fraternity is
now
the
procedures
is. readily
and
investment
120 South La Salle Street
gradually breaking down the prejudice
V
CHICAGO 3
Tele. CG 640, 641 & 642
r
said
that
the
SEC
"has
not
done its best to stimulate the flow
Tele. CG 876
of
Illinois, Iowa and
for the surface and elevated prop¬
erties was, too little.
Wisconsin
capital into creating new
Meanwhile,, on other fronts of
jobs,"-although he declared that the- widespread traction battle,
"I have always felt the SEC was
two
other
developments
took
new
one
of the best things the present
ever did."
MUNICIPAL BONDS
place.
Bought -—Sold -—Quoted
.and the unfavorable opinions held by the public which have so long
administration
.prevailed.
Company, investment
Governor Dewey said that he banking firm, repeated their, offer
did not advocate new securities
to Mayor Edward J. Kelly to bid
legislation, but. felt that-."better for; any securities issued to fi¬
administration
and
better, .ap¬ nance the
proposed • municipal
pointees" of the present laws were ownership
plan.- The
company
necessary.
suggested the issuance of revenue
In this connection, a number
bonds and the creation of a city
of La Salle Street leaders were
transportation district similar to
the Chicago Park District.
questioned about their attitude
:■)■■■; -;; v.-
Tel. Randolph 6960
(Continued from page 178)
t.
securities
"
Chicago Brevities
back to the twenties, the change
of; investment
therefore, that
Established 1922
/
BLVD.,, CHICAGO 4
Tel, WAB. 8686 and Western Union Telephone
He
about in the methods and
wonder,
no
141 W. JACKSON
■
Security Salesmanship 1944 Model
memory goes
OP TRADE BUILDING
,
Telephone
Trinity 6845
f To those whose
C. L. Schmidt & Co.
KNEELAND & Co.
■■
The Securities Salesman's Corner
connected
United Stockyards Pfd.
i.
si
CHICAGO 4, ILLINOIS
CG 35
^apparent.
Nu Enamel
BISMARCK HOTEL
request)
«>» SouthXaSalle Street
'
Preferred
w.s.
CRUTTENDEN & CO.
.
&
Bunte Bros. Common
Reliance Steel
j
;
Common
w.s.
5l/zs/48
EDGEWATER BEACH 6s/50
i
■
■
—
Central Electric & Tel.
AMBASSADOR EAST HOTEL Ss/52
Chicago South Shore & South Bend R.R. Common
■
W.s.
Otis
&
,
A great change in the attitude of the individual salesman toward
.
his clients
has
taken place.: It. is no longer, considered good
good business, to treat the investor just as.someone
to whom a sale can be made.
This- type of operator went out of
the business along with the market crash in 1929.
Today the com¬
salesmanship,
petent and
as
also
or
successful
securities salesman
potential client with whom he
a
looks
intends to
the investor
upon
do
contin¬
business
uously year in and year out. This means that he must do a construc¬
tive, over-all investment job for his clients—selling a specific security
is only the
There
means
to this end.
still
are
a
/
minority
:■
,
of
security business who have not kept
the times.
•
salesmen who
pace
-
are
with this
active
new
in
towards the SEC.
:
in
trend and
run
smoothly.
more
said
that
they
of the acts.
;
-v-v<
to
.
*
.
today's modern methods we would suggest to those who are still
!trying to sell a security and who would like to break out of the
•rut, that the first thing to do is to acquire the proper attitude toward
the business of security salesmanship.
It is well nigh impossible
change the habits of many years standing unless the basic roots
pf Such thinking are completely eliminated and new ideas ar,e firmly
-put in their' place.
;'v.
satisfied
were
York Stock Exchange
New
and Chicago Board of Trade
,
141 W. Jackson
Teletype
Blvd., Chicago 4
CG
1276
Investment Securities
Public
Utility
Industrial
Railroad
-
Municipal Issues
-
We Maintain Actios Trading Markets
in the
Leading Over-Counter Securities
dicate to bid for the proposed ob¬
*'
&
syndicate is said to
firms, through¬
the nation.
A group headed
by Harris, Hall & Company, Inc.,
The First Boston Corporation, and
Blyth & Co., Inc., has also an¬
nounced formation of a large syn¬
with the present administration
■
Based upon the experience of successful salesmen who are using
out
also
Most
Otis
number about 100
t6 enable financial machinery to
Their, minds
the past.
efforts.
The
SEC
retained, but asked for revision
are still operating in the same old groove
They somehow manage to keep sufficiently active
.and make enough sales to meet their expenses but it is always a
struggle because a solid foundation of customer good-will based
upon properly constructed investment advice does not underlie their
as
The majority
said that they wanted the
the
DANIEL F. RICE & CO.
Members
;
j
■
ligations.
Now the financial
community is
looking toward the Democratic
Convention, which starts
here'
July 19, to discover how the heads
was
Incorporated
.
-
the rumored start of an in¬
South La Salle Street,
135
vestigation by the SEC into the
recent
speculation
of that party feel towards the in¬
securities.
vestment
to
business, and the whole
domestic economy.
E. H. Rollins & Sons
"
:
The other recent development
/
in
CHICAGO
traction
comment
on
was
Central 7540
Direct
the alleged in¬
vestigation, which
3
CG 530
The SEC has refused
Wires
Principal
said to
have been started at the rd^uest
of Judge Igoe. '
fi.s usual, traction problems in
5
v
Chicago are in a turmoil.
Al¬
though hearings,
court actions,
and proposals for a solution to the
;YOUR CUSTOMERS TO THE END THAT EVENTUALLY THEY difficulties, have been attracting
CAN PLACE SUCH CONFIDENCE IN YOU AND YOUR FIRM attention for years, the complex
THAT THEIR INVESTMENT PROBLEMS WILL BE TAKEN CARE
problem seems to be approaching
OF WITH A MINIMUM OF TIME AND TROUBLE ON THEIR at least a
temporary climax.;
>
CHICAGO, ILL.—H. H. Wilde•PART. This may sound like drastic medicine to all those who have
man has become associated with
In the latest move, Federal
been in the habit of waiting for a special situation to come along and
Ames, Emerich & Co., Inc., 105
Judge Michael L. Igoe, who has
selling it and waiting for the next one. It is not necessary to
South La Salle Street, in charge
been conducting hearings on a
completely forget old customers during such a campaign. It can be
plan to reorganize and merge
of their statistical and research
carried out in conjunction with calls upon established accounts.
the elevated and street car lines
department. Mr. Wildeman, who
But those new accounts should be approached as we have outlined.
under
private
ownership,
set
has been in the securities business
Two or three days a week devoted exclusively to this type of work
Aug. 16 as the date for the start
will build a backlog of prospective clients after even several months
for 20 years, was formerly with
of
To
Our
Offices
In
Cities Throughout
Country
the
v
Instead of setting out to sell a security to the same
old group
Call
upon a new group of prospects entirely. Don't try to sell anything
but vour WILLINGNESS TO SERVE, TO HELP, TO WORK WITH
•of clients and prospects THY A NEW FIELD COMPLETELY.
Ames, Emerids & Oo.
of steady work.
Once
salesmanship—or better still let us call it a
selling—is established firmly inJ the mind of the
this type of
philosophy
of
individual salesman it becomes the most, powerful selling, tpol that'
any one can
acquire.
."
.
The security salesman who is out to do a'good'job for his
customers and who knows that he can do it, speaks with conviction
when he talks.
He isn't in the position of the salesman who is
thinking first of selling a particular security—-he is offering some.thing much more vital and attractive to his potential customer—
jnamely a complete investment service..,
VVV.'—
A certain salesman who has used this type oi selling effectively
in recent years told us of a case which illustrates how effectively
this approach answers and overcomes natural sales resistance.
He
Was asked by his prosnect how he could benefit if he was given
an
order to sell some listed securities wh^n his firm were not
members of any exchange.
The salesman explained that he couldn't
make a dime on that particular transaction, but the immediate
^commissions were never of interest to him or his firm.
He was
equipped to render a comolete investment service in both listed
vand unlisted securities and that over a period of time his customers
found it advantageous to invest in the securities which he recom¬
mended and upon which, when the time came, he would make a
r
- •
profit.
bankruptcy proceedings
the surface lines. ^
Although
a
the
&
Co.
■'
;
Investment Business
CHICAGO, ILL.—Major Robert
hearing attended by more Showers has resumed business at
attorneys, representing a
.10 South La Salle Street, to deal
of
interests in
the
mat¬
tice
produces
can
up
to
current com¬
request.
on
,
Brailsford & Co.
S.
208
La
Street
Salle
CHICAGO
4
Tel. State 9868
CG 93
"hatchet man" to de¬
of
property, and implied that
the
approximately
price
that
the
city
$84,000,000
was
offering
We specialize exclusively in under¬
writing and distribution of securi¬
ties, providing investment dealers
with
attractive
issues
for
their
clients.
of the U. S.
invited.,
ities.
as a.
junior security holders
SERVING INVESTMENTDEALERS
cently placed on the inactive list
not act
corporate secur¬
Major Showers, who was re¬
Army after two years?
service, has been in the securities
business since
1919.
.
FLOYB B. CERF CO*
Exclusively
120
and
Wholesalers
South La
Salle
Underwriters
Street
Chicago 3
Kitchen
&
Co.
duplicate.
a
CARTER H.C0RBREY& CO.
No worthwhile investor expects something for nothing
salesman can find a better method of increasing his business
than through a sincere
under such a plan will
desire to serve his clients—profitable business
follow automatically.
UNDERWRITERS
•
-
DEALERS
>'
^BROKERS-
OVER-THE-COUNTER SECURITIES
Mallory Interesting
P. R. Mallory & Co.,
Inc., offers
interesting situation, according
o an analysis prepared by Steiner,
louse & Co., 25 Broad St., New
fork City, members of the New
fork Stock Exchange.. Copies of
his analysis may be had from
Wholesale Distributors
Middle West
A
detailed
study
of
Fashion
Rouse
& Co. upon re¬
Park^ Inc., is contained in a spe->
135 S. LaSalle
Teletype—CG 105.
-
and
Telephone State 4950
Copies of this inter¬
esting study
may
firm upon
HUFF, GEYER & HECHT
SCHERdK, RiCHTEK COMPANY
'
•
■■
135
S. La Salle St.
CHICAGO 3
Randolph 3002
request.
MARKET
Correspondents
-
be bad from the
SECONDARY
DISTRIBUTION
Co., 25 Broad Street,
New York.
Pacific Coast
UNDERWRITERS
St., Chicago 3, 111.
cial circular prepared by Simons,
Linburn &
—
For
Fashion Park Attractive
n
Jteiner,
vest.
analysis,
and
available
Maintaining no retail de¬
partment of our. own, we compete
in no way with dealers, but serve
them exclusively. Correspondence
in municipal and
their
earnings
ment
Rob!. Showers Resmnes
ter, the. judge said that he would
prive
■
that
than 100
variety
Comprehensive
date
Mason, Moran & Co., and McGraw
"carry the ball" for municipal
ownership of the transit lines.
At
AND
Milwaukee Railroad
for
city spokesman
bankruptcy would
delay their municipal ownership
plan for a year or more,.Judge
Igoe resisted what he described
as. efforts by the city to make him
asserted
Chicago North Shore
'
conviction and carried, out in prac¬
sales talk that no, amount of clever phraseology
The truth when sooken with
;—no
Specialists in
H. H. Wimrnm
Teletype—CGT 362
180
:
'
.
,
v:Vv.fTHE
5.—Another
of setting up a
way
qualified group of employees.
CONTINUOUS INTEREST IN:
I
I
Central
I
(a) further provides
set up a plan
Section 165
that
Ins.
Northwestern National
Nat'! Bank of Tul.a
a
company may
plans to cover a specific group
of employees provided that the
or
Water Power & Paper
Consol.
Paper
Central Elec. & Tel. Pfd.
|
Koehring Co. V.T.C.
I
|
Hamilton Mfg. Class
Pfd.
Compo Shoe Mchy. Com. &
Old Line Life Insurance
does
enue
Internal
of
Commissioner
'
International Detrola
I Nekoosa-Ed wards Paper Com.
Thursday, July 13, 1944
COMMERCIAL & FINANCIAL CHRONICLE
Rev¬
find the plan
not
dis¬
criminatory in favor, of employees
who
are
officers, share-holders,
A & Com.
Weyenberg Shoe
persons
whose
principal ! duties
consist in supervising tne work of
other
employees
or
highly
com¬
the
in
and
future
its
ability
to
meet
premiums on insurance and
annuity policies over a long period
of years,
establish
is generally better off to
which
one
is
solely
plan or trust that it may be, an
employer may not deduct any
contribution to the plan or trust
unless
such
contribution would
on
ceive
payments
from
the
period of
is
over
a
In this way the
years.
company
company
certain
event that it has
no
that in the
profits in any
it need not make any pay¬
year
EAST MASON
225
ST.
Teletype
Chicago: State 0933
PHONES—Daly 5392
(2), WIS.
MI
488
j
Mills of
Paper
Koehring Company, Milwaukee,
Green
Bay, Wis¬
a
Peshtigo,
Mills,
Paper
Badger
Wisconsin, sent out a notice of call
on
its 6%
Preferred stock, for
payment on Aug. 1, 1944, at $50 a
share plus accrued dividends.
Four
of
Sales
i
Drive
Wheel
Clintonville, Wisconsin* totaled $6,500,000 for the
10 months ended April 30, 1944,
of
Company,
which exceeds the volume for the
ended June 30, 1943.
entire year
Company,
Shoe
Nunn-Bush
Milwaukee,- reports consolidated
earnings for the six months ended
April 30 equal to $9.73 a share on
the 5% Preferred stock and; 56c
share
a
on
the Common stock.
Exchange
and
Securities
The
Commission has under considera¬
tion the
application of Northern
E.E. Pelerman Joins
of the Internal Reve¬
This means that the
(a)
Code.
nue
under
the
plus
plan
wages must
reasonable compensa^
regular salaries and
not exceed
tion for services rendered.
How4
general proposition, it
may be said that usually if a plan
qualifies under Section 165• (a) of
ever,
as
a
ment into the plan; that in the
pensated employees. Section 165
event its financial condition is bad
(a) further says however, that a and
there are no profits, it is. not the Internal Revenue Code, the?
classification of employees .shall
subjected to making a continuing payments made thereunder in con*
not be considered discriminatory;
payment.; and, ./the. investment j unction with other salary and
merely because it excludes em¬ which
is made under a group of ,wage payments will probably be ;
ployees the whole of whose com¬ insurance or
> v/'j •; '
annuity policies up considered reasonable.
pensation constitutes, wages sub¬ to such time will not be
{
\ '
'''
J *.'
' ». V,
i
1 "\'.p
lost.. /.
ject to Social Security benefits, or
13.—Amount deductible under
In the case of a company which
merely because it is limited to sal¬ is sound
pension plan.
/
financially and can see
aried or clerical employees; nor is
for a reasonable period ahead that
Next, with regard to. pension
such a plan considered discrim¬
its financial conditions and earn¬ plans and trusts which would gen¬
inatory because the contributions
ings are reasonably certain, and erally embrace retirement, pen¬
...
share for the first consin, to delist its Common stock
six months ended May 31, 1944. from the Chicago Stock Exchange.
The
company
reports that the
book value of its Common stock
Perfex Corporation, Milwaukee,
as of that date was $78.72 a share.
is offering 21,803 shares of its $4
$4.93
tion 23
'
Wisconsin Brevities
earned
ordinary and neces¬
an
business expense under Sec¬
sary
.
MILWAUKEE
constitute
profit-sharing basis and in which
qualified employees share in pro¬
portion to the income they re¬
a
or
benefits of
or
on
,
(
.
^
behalf of the
could over a long period of years sion, disability and death features,
employees under the plan bear a maintain continued;
payments of the deduction that an employer
uniform relationship to the total
insurance and annuity premiums, may take for its contribution un¬
compensation, or the basic or reg¬ will
generally find it a wise policy der a plan or trust meeting the
par Capital stock at $7.50 a share,
ular rate of compensation of such
when it establishes a plan to in¬
requirements of Section 165 (a) .
through
a
local
underwriting
employees, Or to that portion, of
corporate the purchase of insur¬ is generally limited to 5% of the
group headed by The Wisconsin
the employee^ remuneration not
ance
and annuity policies in the aggregate compensation paid or
Company, including Riley & Co.,
covered by Social Security bene¬
accrued during the year to all
The
Milwaukee
program.
Company
and
"/■ v/:
fits.
employees covered by the plan or
Loewi & Co.
;//
10.—The establishment of a profit*
trust, plus any excess over this
The proceeds, together with pro¬ 6.—Broad leeway is given.////';
;
sharing as against an actu- amount
necessary to provide the
ceeds from the sale of $550,000 of
Therefore,.it is apparent under
arily funded plan.
remaining unfunded cost of the
41/2 % Debentures, placed private¬ the provisions of Section 165 (a)
It is wise," of course, for a com¬ employee's past and current ser¬
ly, will be added to working that a company is given very pany to investigate what, would
vice credits, actuarily determined
broad leeway as to which of its be the cost of
capital.' /vH
maintaining a plan in terms of a level amount or level
employees should or should not established on an actuarial basis
percentage of compensation over
be covered by a plan.
•
'
(as distinguished from a profit- the remaining future service of
Available Ota Request
7.—-Is plan to be a profit sharing sharing plan merely) which re¬ such employees. As an alternative ;
Schenley Distiller* Corporation
quires the payment of fixed and to this method and in its place,
or continuing fixed payment
have prepared «n attractive book¬
continuing charges and which may an employer may deduct the cost
plan. /■/' /'■////'/-•
■
or may not require
the purchase of pension credits attributable to
let
containing; the
first
arti¬
As to just what type of plan or
of insurance or annuity policies.
that year's employment, plus 10%
cles in the »eries they have been plans a company desires to install
(1) In addition to establishing a of the cost required to complete
running in the "financial Chron¬ depends on the various factors set plan which is solely on a profitthe fund or purchase such plan
forth in paragraph No; 1 above/ In
icle/' Copies of this booklet may
this respect the management of sharing basis whereunder the fund or annuity credits as of the date
is to be later distributed among
be had upon request by writing
they are included in the plan, if
the company must determine for
employees in certain proportions past service of other supplemen¬
itself whether it desires a plan
to Marfc Merit, in care of Schen¬
in accordance with their qualifi¬
tary credits are provided by the
to have as its basis the sharing in
ley Distillers
Corporation, 350
cations at time of distribution, or
plan and are not covered by the
a percentage of the profits of the
Fifth Avenue, New York 1, N. Y.
(2) A plan which provides for normal
cost.
This
alternative
company, or have as its basis that
the purchase of insurance and an¬
method, I am advised, is used for
the company will pay the cost of
nuity policies, or
.
' =■.
most of the annuity plans under
Case For N. Y. Bank Stocks maintaining the plan each year
(3) A plan which combines both which an employer sets up an em¬
regardless of the amount of prof¬
features, (1) and (2) above.
A ployee retirement plan under a
Laird, Bissell & Meeds, 120 its earned by the company in any
company can set up a plan on a master group annuity contract is- r
Broadway, New York City, ^em¬ year, or even if it has losses. The
still different basis. For example: sued
by an insurance company.
bers of the New York Stock Ex¬ distinction and difference between
(4) Such a plan would be predi¬
the two is self-evident. Likewise
change, have issued a circular encated on a company making fixed 14.—Amount
deductible
under
too, in establishing a plan a com¬
payments into a plan determined
titled "The Case for New York
profit sharing plan.
pany must decide whether it de¬
on an actuarial basis, whereunder
Bank Stocks" giving their rea¬
sires'to administer the plan en¬
;•! Next with regard to Section 23
the/fund'tis later, distributed to
(pbif the plan is a stock bonus or
sons for favoring this group.
Co¬ tirely itself, or whether it desires
to use the contributions under the employees in, accordance with cer¬
profit sharing plan or trust which
tain fixed monthly or other pay¬
pies of this interesting circulai
plan in whole or in part for the
qualifies under Section 165 (a)
ments on account of death, retire¬
may be had from Laird, Bissell &
then a company may deduct up to
purchase of insurance or annuity
ment or disability or other rea¬
Meeds upon request.
15% of the compensation other¬
policies covering death, retirement
features either alone or together sons, but which fund is not used
wise paid or accrued during the
to purchase insurance or annuity
with death or disability, and per¬
taxable year .to all beneficiaries
policies but is entirely self-admin¬ covered
by the plan,
haps one or more other features.
istered by the
company
or by
8.—Benefits of self-administered trustees named in the plan estab¬
15.—Amount deductible when a
plan without continuing fixed lished.
.
.
-
.
The Milwaukee Co.
'
WIS.—Elsie
MILWAUKEE;
Peterman
has
become
E.
associated
207
Miss Peterof
Co., Inc., with
with the Milwaukee Company,
East Michigan Street.
was
man
formerly
Partridge-Player
treasurer
which she had been associated for
/The. latter: firm
years.
many
is
liquidated due to the deaths
being
Partridge and Mr.
of Mr.
Player
and its records and files are
turned
over
being
to the Milwaukee Co..
v
Pension, Bonus And Mil Sharing
Plans And The Revenue Laws
determinations that
to make such
it may
3.—A plan may
cover
all or only
certain employees.
initially desire to make in
the matter.
A plan may cover all employees
of a company, or it may cover a
not representative group of key em¬
benefit taxwise, depending on
ployees, or it may cover all em¬
plan.
ployees except those whose en¬
2.—A
•<v
A
^
company
may
or
may
plan that is adopted by the
not be of
company
taxwise.
Unless the plan which is adopted
comes
within certain qualifying
company
benefit
may
to
or
may
a
165 (a) of
Revenue Code, the
provisions of Section
the
Internal
probabilities
are
(but not always)
a hardship
tire
compensation is subject to
benefits, or it may
all employees of a company
have worked only for a cer¬
Social Security
cover
who
tain minimum
exclude
up on a
period of time and
others, or it may be set
basis of some or more of
these combinations.
that it would result in
taxwise, not alone to the company
setting up the plan but also to the
persons who are beneficiaries un¬
der the plan. If a plan qualifies
under section 165 (a) of the In¬
ternal
Revenue
Code
then
the
4.—One way of
employees.
Briefly, Section 165
Revenue
(a) of the
Code
provides
the
company
or
more
of
all of the employees if 70% of all
company into the plan would gen¬
erally be "deductible for income employees are eligible under the
the
a
Other
plan is entirely self-admin¬
will
plans
themselves
to
the
also
mind
present
of
that it reader.
does not purchase any insurance
or
annuity policies, then, if at a 11.—Application of Internal Reve¬
nue
and
Wage
and Salary
later date the company desires to
by
company
a
so
Stabilization
Laws.
drop the plan, then no portion of
plan
will be lost to the beneficiaries,
of
which otherwise would be the case
well
if
Salary Stabilization Laws. Within
certain
limitations
set forth in
the contributions made to the
had to be paid on
insurance or annuity policies. On
the other hand, the amounts the
employees
will
generally ulti¬
mately receive as benefits under
the plan, will be limited to the
amount which the company has
contributed to the plan.
In the
case
of companies that are un¬
premiums
certain
as
to
and
their financial
con¬
In establishing a plan
taxes
the
as
the effect
considered as
effect of Wage and
must
be
of the Internal
employer may
deduct his contribution to a stock
23
Section
Revenue
(p)
Code
an
pension or profit-sharing
trust created for the ben¬
efit of his employees, in the year
in which the contribution is made.
bonus,
plan
or
Several
of
the
limitations
con¬
long tained in the section are applic¬
period of years to come, a large able to all* employee benefit or
scale
plan for the purchase of deferred compensation plans. On
insurance and annuity policies for the other hand, other of the lim¬
dition
earnings
for
a
company or
.80%
or
more
it is
pension, or
profit-sharing trust. Then, too,
a
stock bonus, a
purchased unless a
the company and its management the
treatment of the deduction
are
willing to run the risks of varies according to whether or not
However, a company may being able to meet and pay the the
tax purposes in the year that the plan.
plan or trust meets the re¬
exclude from the operation of the insurance premiums. Such a pro¬
quirements of Section 165 (a) of
payments are made, yet the bene¬
plan employees who
have not gram would be economically un¬ the Internal Revenue Code.
ficiaries of such plan wbuld not worked for the company for a
sound.
have to report the receipt of the minimum period up to five years
12,
Taxwise,
all
contributions
9.—My general advice and recom¬
or whose customary employment
must be reasonable to be defund until the year that the funds
mendation.
should
not
be
is in operation.
;■
the
plans adopted by a large group of employees which itations
depend upon the type of
must cover either requires continuing preiftium pay¬ the
trust, as for instance whether
of all employees of ments
over
a
period of years
that the plan or
80%
payments which are made by the
setting up a quali¬
fied group of
Internal
If
istered
(Continued from first page)
combination of several plans
.
obligations.
Section
23
that where a
,
eration
two
also provides
company has in op¬
(p)
or
stock bonus
more
profit sharing trusts, they are
a
single trust for the
or
considered
of a
purpose
15% limitation, but
if the company has a stock bonus
profit sharing plan or<; trust in
conjunction with a pension trust
or an annuity plan, or with both
or
a
pension, trust and annuity plan,
and they all qualify under Section
165 (a), then the company may
deduct
income
for
tax
purposes
amounts that may run up as
high
compensation other¬
accrued during the
taxable years to the employees
covered by the plans or trusts.
as
25 % of the
wise
paid
or
16.—Excess payments in one year
deductible in following year.
Provision
Section
ments
23
made
is
(p)
also
that
by a
made
if
under
the
company
pay¬
to
a
trust in any year are
larger than the amounts it may
plan
or
properly deduct in the taxable
year for income tax purposes, then
subject to certain limitations the
excess may be carried over into
.
is for
are
distributed under the plan to
the beneficiary.
fications
as
There
are
quali¬
to this set forth below.
not
more
than 20 hours in
plan, a com¬
any one week or whose customary
employment is for not more than pany which is uncertain as to its
five months in any calendar year. financial condition and earnings
In
establishing
aPfihca ion of Wage
and Salary Stabilization Laws.
with regard to Section !
The provisions of law with reirrespective of the type of' gard to wage and salary stabiliza-
ductible.
a
First
23
(p),
the next year.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4298
160
tion at the present time are fairly
well
defined,; the law and the
rules and regulations of the Di¬
rector of Economic Stabilization,
the National War Labor Board and
the
Stabilization
Salary
Unit
than 20% of the amount of |
[prior to the establishment ,of The
employee's total credits (not plan*,
■! ' f. ■"/-•...
.;..vi t.
j
taking into consideration forfeited ;'• iv 1 1
23.—A
brief summary of some
amounts) is payable in any one.
other factors to be taken into
year after such termination.
:
.
19.—-Summary of applicable major
pension plans
and stock bonus and profit sharing
plans and trusts are not to be
deemed salary and wage increases
if they meet the certain require¬
ments of the rules and regulations
as well
as
qualify under Section
165 (a) of the Internal Revenue
Code.
With regard" to wage stabiliza¬
tion laws, the War Labor Board
has
salary stabilization laws.
tion laws the Commissioner of In¬
ternal
rules
Revenue has made certain
and
regulations which
summarized
(a)
are
follows:
as
Compensation
of
an
em¬
ployee may include insurance and
pension benefits/The' amounts to
be
taken
the
into
premiums
employee
by
the
amounts
of
or
employer
which
the
upon
the
receive
may
happening
are
contributions
paid
the
not
and
consideration
of
amounts
certain
contingen¬
cies. To the extent that the insur¬
and
ance
to
pension benefit inuring
is reasonable in
employee
an
such benefit is not
salary.
amount,
sidered
Contributions
(b)
con¬
as
made by
an
employer to an employee's retire¬
plan which meets the re¬
which
ulations
(a)
considered
the
of
are
of
amount
such
to
stock
a
ing
made by an employer
are
bonus or profit shar¬
they must provide for
only
distributable
on
plan,
benefits
death, retirement, sickness or dis¬
ability of the employee.
Other¬
wise, payments will be considered
as salary.
v
.
"(d)
Amounts
paid
by
an
em¬
ployer on account of insurance
premiums on the life of employees
who have the right to designate
the beneficiary are deductible to
the extent that they do not exceed
5% of the employee's annual sal¬
ary, determined without the in¬
clusion
of
insurance
and
pension
benefits and without the inclusion
/of bonus and additional compen¬
sation. Usually, this type of insur¬
ance
is limited to only whole life
ordinary
or
ums on
premium life policies, fixed pay¬
ment life policies and other sim¬
ilar policies are ordinarily con¬
sidered
salary.
The regulations
provide some exceptions for peo¬
ple who cannot qualify for ordi¬
nary or whole life policies.
(e)
Premiums paid by
ployer
on
of
em¬
an
life
group
without cash surrender
insurance
value,
policies
covering
the
lives
of
his
policies of group,
health or accident insurance, the
beneficiaries of which are desig¬
nated by
the employee, do not
constitute salary regardless of the
amount of salary
otherwise re¬
ceived
annually
by
such
em¬
ployee.
employees,
or on
(f) With regard to profit shar¬
ing and stock bonus, plans and
trusts,' the
Commissioner
of
In¬
ternal Revenue issued regulations
.in which he said that as to plans
.and trusts created after Oct. 2,
.1942, his office would approve
contributions to such trusts where
.the
emolcyer's contributions are
payable to the employee only in
•the event of retirement at
able
ness,
death,
age,
or
after
a
a
suit¬
disability, sick¬
period of
fixed
time not less than ten years with
distribution over a period of years
thereafter, for example, 10%
annum
per
for ten years.
follows
the
of
Commissioner
office would raise
a
sum¬
regula¬
of the Commissioner of In¬
exceptions
some
are
the outset of the establishment of
a
plan.
There
are numerous
to
considered
be
no
de¬
and
termined, such as:
(a)
Who
will
constitute
eligible employee?-
an
Section
an
to what rights of
as
employee are,
feitable
what
and
or
and
and
Salary
Laws.
under
under
premiums
on
Provide for what
conclusion.
plan
be short
may
it
or
be long.
It depends on what is
tion must be furnished under the'
in it. "As morale builders, they
plan from time to time by both are wonderful for a
As
company.
the femployer and employee, and
for putting away a penny for the
for
what
information
the
em¬
eventual rainy day, they are ex¬
cellent.
chief
■
It
applies equally to the
executives
and
businesses/as.-well
employee.
owners
the
as
'
,
Stabil¬
insurance on the life
limitations
if|l!f> The/// ///;
group
on
and hospitaliza¬
tion insurance .policies; and other
accident
be made under
plans and trusts which qualify
under Section 165 (a) of the In¬
ternal
Revenue Code,
exclusive
payments
of profit
trusts
may
New York Trust
*:
sharing and stock bonus
and
plans.
"? *
.
""
Company
r
20.—Effect of termination of Wage
Stabilization Laws.
and Salary
In
setting
do
of the Wage
limitations
the
M
plan, a company
up a
BROADWAY
IOO
with the realization that
so
MADISON AVENUE AND 40th STREET
TEN ROCKEFELLER PLAZA
and
;
Salary Stabilization Laws are only
result of temporary economic
•
■■■fix.
/>.'
-
>
•"%£ •./ V;V ;
./
J-V'' ' •V'A-
V.
v'*:#V.'-.'
'
v.-
•':::
'
'/
:
-•/>
;
.►
•'*. d:
a
conditions.
and
better
a
attained
is
When the
the
laws
:
;/-/.'/
over
degree of normalcy
and
economic
to
is
war
/.
......
At the close of business, June 30, 1944
,
stabilization
are
re¬
Evil;
/
pension
trusts
and
plans ; and
profit sharing trusts and plans
will be able to be amended
so
Cash
•
/
United
;
should
not
because
be
be
one
a
foresee
the
rights, v!.
of employees'
When
U* i
.
:
/.•*"
.
.
.
.
;
.
33,943,707.57.
.
.
.:
.
386,459.92
.
.
.
.
..
.......
.
,
;
.
.
,
1,534,251.38
.
.
84,979.52
;■NkVhhh
**/
;
-
2,542,436.96
./*•••- ;..;V-,s*/ " './
•
/••
/j''///.
•'/*
5333,420.179.97
•
V,.
.
to be made at
10%
a
.
cated to the then
to
are
be allo¬
may
of
employees
plan that is established
may
consideration
and
take
into
provide for benefits to be given
an
employee for the years of
he
has
with
a
company,
-
$748,300,480.56
3,391,217.05
;
525,000.00
528,593.71
15,000,000.00
30,000,000.00
7,138,292.91
.......
E
52,138,292.91
^ E.; E r
$833,420,179.97
obligations and other securities carried
statement are pledged to secure
United States Government deposits of $219,897,668.05 and other
public and trust deposits and for other purposes required by law.
$235,218,753.49 in the above
:
/
TRUSTEES
MALCOLM P. ALDRICH,
New York
FRANCIS B. DAVIS, JR.
President
United States Rubber Company
:
FJrLt,m'W* Co-
RUSSELL H. DUNHAM
ARTHUR A. BALLANTINE
Chairman of the Hoard
Root, Clark, Buckner & Ballantine
v<
Hercules Powder
JOHN E. BIERWIRTH
President
ALFRED
ALfucu
A
a.
.
p
Products Corporation
ROBERT ., REAM
C.
„
MORRIS SAYRE
/r
A-/
Executive Vice-President
NewYork
r?
.
V
HORACE IIAVEMFYER, JR.
Company
_
„Ex.ecutf vce Vice-President
RALPH S. DAMON
1 he National Sugar Refining Company
•
,
Corn Products Refining Co.
VANDERBILT WEBB
u. BREWSTER JENNINGS
American Airlines, Inc.
NewYork
Member
.
President
American Re-Insurance Company
WILLIAM HALE HARKNESS
v.
,SETON PORTER
.
y
rTTTTru
/
w
President, National Distillers
Company
Litchfield, Conn,
Goldmark & Loeb
at
^
HARRY T. PETERS, hew 1 ark
/
COOK
KAjyjry.
American Brake Shoe
HOWARD^W.MAX^WELL,NewYork
SAMUEL H. FISHER
Cook, Lehman, Greenman,
17
"■
Chairman of the Board
GRAHAM H. ANTHONY
Vice-President & General Manager
be taken into considera¬
tion.
■'
•
Payable, Reserve for Taxes and Other Liabilities
Vice-President
service
V.. '■ .•'.*•
$776,837,076.30
w/TTTTAAyr
employees.
....
'.'.f- 7"."'
28,536,595.74
at
As of such
remaining quali¬
;
v
United States Government
may
forfeited amounts
;
/•
Payable July 1, 1944
-
date, 10% of the credits
employee's account may be
be paid to
an employee has
either before or after the 10-year
date retired, resigned, quit, been
discharged, fired, etc., the plan
may provide that all or part of
the credits in the employee's ac¬
count may be forfeited—and Such
;
.
■
Surplus
year
ployee's account
him. However, if
;
Outstanding and Certified Checks
Undivided Profits
fixed date
paid to him—and each year there¬
after,
10% of the accumulated
credits then remaining in the em¬
i
V'*;-*'.7: V .k'.V: ; V /
Capital
of the credits
lishment of the plan.
77/
Acceptances
salary stabilization pro¬
cedure, a plan may in substance,
provide that payments under a
profit sharing plan may com¬
;of employment, provided that not service
.
Accounts
present
A
.
v
455,606,903.46
...
Dividend
not have the right to partici¬
10-year date,
C':';'
Deposits. *
part of them. For example, under
also
*
.
188,349,955.32
.
>.*/•?//"'.\
.,*>
j ;• s;;.y
•
apply to an employee's rights in
their entirety or it can apply to
10
Equities in Real Estate
vvvi >/•/(
•
pate in the proceeds of the plan
or
trust and their rights there¬
under
are
forfeited.
This
can
in the
.
.
LIABILITIES
certain qualifying date, or at the
time for distribution of the fund,
mence
Direct and
—
a
a
may
46,148,963.99
....
Liability for Acceptances
vv;
!
plan is established, the
provisions thereof can be along
the lines that persons who are not
in the employ of the company at
$104,822,521.85
....
.
Real Estate Bonds and Mortgages.
/•
rf
21.—The vesting or non-Westiture
.
InterestReceivable,AccountsReceivableandOtherAssets
Customers'
with certainty.
future
J
.
Other Bonds and Securities
kept in mind, it
determining one
cannot
Obligations
.
Loans and Discounts
earlier date. While this
an
factbr to
Government
States
Guaranteed
viewpoint of considering that prof¬
its might be able to be distrib¬
a
♦
'
of law which today
sufficiently attractive in them"
selves, can be made even more
attractive,
especially from
the
is
•
ASSETS
Eland and in Federal Reserve Bank
on
Exchanges, Collections and Other Cash Items
thai
the provisions
uted at
'•
relating
moved, the probabilities are that
are
>
V
CONDENSED STATEMENT OF CONDITION
of the Federal Deposit Insurance Corporation
New York
MEDLEY G. B.WHELPLEY)
Guggenheim Bros.
of
minor
employees may be paid up to
the extent of 5% of annual pay,
health,
may
informa¬
of
without
the
Stabilization
'
24.—A
A
(b) What will be the determin¬
Code
and
de-r
qualifies under
(a), of the Internal
not for¬
are
when,
165
the
to
as
it
conditions.
(j)
but
.of contributions upon termination ,to
by
or
so
ization which, in a sense, say that
In¬
objection to
(i) Provide
Board
that
Revenue
Wage
other
.
that his
plan providing for distribution
Revenue
Labor
termine
trust in accordance with law.
purport to enum-:
of Economic
Director
the
(g) Also in regard to profit'
.sharing and stock bonus plans and 22.—Fast
trusts
and
rules
a proper case, of a
trust by the Commissioner;
or
Internal
War
.
fied
ternal Revenue has .said
of
annuity policies will be purchased.
ofr-the various laws and : (h) Provide for proper amend¬
factors and major matters to which
ment,
modification, termination
consideration is generally given at and
liquidation " of the plan - or
life policies.
Premi¬
endowment policies, single
approval, in
plan
whether insurance and
or
ing factors for an employee
to
ultimately share under the plan?, ■
;
(c)
Provide
for
trustees
or
erate them here.
*/'.
'
others to administer the plan.
(b) As to other types of pension
(d) Provide for the disposition ployer, and the trustees under the
and retirement plans, the War La¬ of
plan must furnish to the Com¬
disputed questions.
missioner of Internal Revenue,,
bor Board has not issued any de-.
( (e) Provide for the manner of
tailed regulations. However, in¬
(k) Provide for !the formula
operation of the plan.. ./ / ./, ' V : terpretations of the War Labor
j »
-■«
V;
» V. »
•"
Bohrd follow the regulations of
contribu¬
(c) However, where the contri¬
istered
All-of the above is just a brief
factors
not of sufficient
can
butions
/(g)'Provide for whether the
plan will be entirely self-admin¬
consideration.
ternal Revenue for the most part.
reasonable, regardless
tions. /
hereby
are
reg¬
Concerning profit sharing
or
plans, the War Labor
trusts
ment
quirements of Section 165 (a)
and
marized:
There
salary stabiliza*
certain rules
made
tions
With regard to
under a plan or trust to an em¬
ployee may be determined.
(1) Provide for the obtaining of
* '
summary
Board
18.—Summary of applicable major
;
.
.
stabilization laws.
wage
provide that
enue
funded basis.
i.
f
of
the Commissioner of Internal Rev¬
■
whereby the benefits distributable
will
the
.J
(f) Prqvide for whether the plan
be on
a
profit-sharing or
*
more
181
R
THE
182
ANALYZED
—
Sold — Quoted
REVIEWED
-
„
COMPARED
-
Dr. H. H.
Booklet Service to Dealers & Brokers
daily 7 a. ra. to 5 p. m. (P. C. T.)
Special Bulletin and
Trading
Monetary
Orders solicited.
Inquiries invited.
f
In
a
BUTLER-HUFF & CO.
St., Los
210 West 7th
PRIVATE
New York
Chicago
-
TELETYPE
nancial
CALIFORNIA
L.
ference
•
■
•
Seattle
H.,
279
1
LONDON OFFICES:
3
Bishopsgate, E. C. 2
8 West
49
ample, in Honan Province, recent
military operations have cut rev¬
200
ing
account of
Smitbfield, E. C. I
Charing Cross, S. W. I
Burlington Gardens, W. I
production by
million Yuan monthly.
Tak¬
enue
throughout Scotland
'
....
.
Hsiang Hsu Kung, the head
<S>-
from tobacco
64 New Bond Street, W. I
the value of the
ASSETS
TOTAL
kind, the tax
iri 1943 exceeded 40% of
land tax collected in
pur¬
revenue
co¬
expenditures,
with
which
£115,681,681
compares
favorably with that in other allied
countries.
The difficulty, how¬
na¬
tions in estab-
ever,
i.shing
a
mechanism for
DEUSEN
By E. A. VAN
'
OFFICE—Edinburgh
HEAD
Branches
United-Nation's Monetary and Fi-
as¬
of
.
other
the
Stocks
This Week—Bank
.
Bret-
to
operate
.
-
being
gave
pose
Stocks
delegation to the
Con¬
surance
China's
Bank and Insurance
j
statement issued on July 4, Dr.
1727,
Incorporated by Royal Charter
Delegation To
Conference, Pledges Country's Co-operation
Woods, N.
ton
WIRES
San Francisco
L. A. 280
-
A.
at
held
Angeles
Royal Bank of Scotland
Kung, Chairman Of China's
of China's large
OF
Thursday, July 13,1944
CHRONICLE
China Will loin With Other
Nations In Monetaiy Reforms
SfocKs
Insurance & Bank
Bought
COMMERCIAL & FINANCIAL
Associated Banks:
Deacon's
Williams
is that with leading produc¬
Ltd.
Bank,
Glyn Mills & Co.
ing areas occupied, and in view of
the small surplus available to the
of Wall Street banks for June 30, 1944 con¬ international
average person in China, it has
Australia and New Zealand
Substantial gains in deposits and holdings of currency sta¬
not
been
practical to sell war
bilization and
U. S. Government securities over first quarter figures, were shown
bonds directly to the public to as
infosteringthe
by all the banks, except First National, whose Government's de¬
great an extent as the Govern¬
clined some $17,000,000 or 2.2%. Total earnings assets of 15 leading expansion of
ment would have wished.
Con¬
new south wales
foreign
trade
banks aggregated $21,227,997,000 on June, 30, compared with $19,577,sequently
the Government in¬
(ESTABLISHED 1817)
and wider inDr.
H.
H.
Kung
794,000 on Mar. 31, and $18,670,evitably had to rely largely on
ternati.on a 1
Paid-Up Capital
£8,780,000 ~
596,000 on Dec. 31, 1943. On June'
borrowing from banking institu¬
comme.rci a 1 ;
"
Reserve Fund
6,150,000 '
;
Our circular
30, 1943 they aggregated $17,753,Reserve Liability of Prop— 8,780,000
relations. He expressed confidence tions, which made unavoidable the
415,000; thus in one year earning
increase of purchasing power and
^23,710,000 ;
also that the Conference would
assets have increased by approxi¬
THE CASE FOR NEW
contributed to the rise of prices.
reach an agreement, since "it is in
Aggregate
Assets
30th
mately $3,575,000,000 or 20%.
The present price movement in
everybody's interest" to make it a
Sept., 1943
£187,413,762 «
Indicated earnings of the
15
China is uneven. Imported articles
YORK BANK STOCKS
success.
■
.'
.'.{7 '
SIR ALFRED DAVIDSON, K.B.E.,
are
much
banks for the second quarter aver¬
higher
than native
Dr. Kung is a leader in China's
General Manager
I
gives our reasons for
age approximately 12.7%- higher
products; and within the country
.political and economic affairs, j He
Head Office: George Street, SYDNEY
than for the same period last year,
prices of rice and other necessi¬
favoring this group.
is Vice Premier and Minister of
while for the
first six months
ties
vary
considerably because
The Bank of New South Wales is the oldest >
Finance of the
present Chinese
and largest bank in Australasia.
With over
they average 14.9% above earn¬
Government.' Like most of the goods that are plentiful in some
Laird, Bissell & Meeds
800 branches in all States of Australia, in '
ings for the first half of 1943.
regions cannot be moved readily
New
Members New York Stock Exchange
Zealand,
the Pacific Islands,
and
other
Chinese delegates to the
London, it offers the most complete and
to
centers of consumption. Re¬
Thus, the upward trend in earn¬
120 BROADWAY, NEW YORK 5, N. Y.
efficient
banking
service
to
investors,
Conference, Dr. Kung was edu¬
cent telegraphic reports state that
traders
and travellers
interested in thes*
ings which started some five years
Telephone: BArclay 7-3500
cated in the United States,^having
countries.
r
the crop situation in West China
ago, is being well maintained. In¬
Bell
Teletype—NY 1-1248-49
graduated from Oberlin College.
LONDON OFFICES:
dicated earnings, however,
can¬
is
Condition statements
tained
surprises.
no
baniTof
,
,
-
,
,
.
(L. A. Gibbs, Manager
Trading Department)
He received his M. A.
excellent, and that prices have
shown some reaction after the re¬
degree from
be taken at face value
Yale University in 1907, and later
cent rapid increase.
merely represent, from
In the last
The
accompanying - tabulation returned to China to take part in three or four years it has been
one
quarter to, another, the
the
revolutionary movement of
shows
second quarter
indicated
amount by which undivided prof¬
normal for prices to rise more
Dr. Sun Yat Sen.
In 1933, he was
its have been increased plus the earnings for 1944 compared with
rapidly than usual in the Spring
appointed Governor of the Cen-:
amount of dividends disbursed or 1943, also first six months earn¬
of
the year,
especially because
tral Bank of China hnd still holds
declared. They are, therefore, not ings for. 1944 and 1943. Current
surplus crops cannot be adequate¬
addition to i his
book-value is compared with the this position in
necessarily the equivalent of re¬
ly distributed in the period of
other offices.
I •
1943 year-end figure.
short supply prior to the new har¬
ported earnings.
Dr. Kung's statement follows: :'
Indicated 6
not always
since they
Indicated 2nd
'
;
i
,
•
•
:;-o
"Quarter Earnings
.
V
Bank
Bank
.
1943
$0.36
6.47
.
Manhattan——:
of
of
Bankers
\
New
York!
Trust.'.
0.88
1.30
0.77
Chemical Bank,' & Trust—0.69
Corn Exchange—:
0.91
.First National
32.69
Central
Chase
Hanover
——
National
___•
1944
$0.47
6.54
1.05
1.50
C.71
0.73
0.98
,34.37
to
resistance
Agency arrangements with Banks
throughout the U. S. A.
NATIONAL BANK
13.26
358.97
365.24
1.64
'1.92
50.15
51.37
2.55
2.80
99.15
99.95
*1.35
*1.42
36.88
37.60
With regard to exchange, it is
fought recognized that wartime condi¬
tions are abnormal and true val¬
single-handed for more than four
ues are hard to determine for any
years
before the Allied Nations
joined
the war against Japan.' currency, v The Chinese, Govern¬
41.78
China had
12-31-43
6-30-44
$0.30
$25.63
$25.53
12.05
1944
1943
"
$0.66'
41.23
I 1.44
1.31,
1.92
49.36
50.07
*49.83.
>58.02
1,246.60
1,264.63
*9.93
>11.97
323.77
328,95
0.50
,21.28
.21.48
*2.31
41.75
43.05
1.71
"years
seven
5.23
0.20
Trust
Irving Trust A
Manufacturers,Trust
—
.
4.99
0.26
„—1.25-.
0.38,
,
.
*2.17
1.31
started
Commercial
——
—
—
v
'
Cairo
principal
/
£3,000.000
AGENCY
William Street, E. C.
Branches
:V:
As
enemy
EGYPT and
in all the
Towns in
^
;
the SUDAN
-
-
NATIONAL BANK
of INDIA, LIMITED
Bankers
;;
earnings of $1.35 in 1943
1944, include security
profits of $.37 and $.19 respec¬
tively.
Guaranty Trust's figures
of $9.93 and $11.97, include se¬
half year
weeks from today.
; /
v
Attractive
The
shares
of
Speculation
cumulative
6%
H
&
B
preferred
American
Ma¬
chine
Company offer attractive
speculative possibilities from the
while National City's earnings of
point of view of yield and further
$1.30 and $2.20, include security price enhancement, according to a
curity profits of $1.46
and $3.02,
wartime
In
avoid
and $1.42 in
the
*
inflation.
seventh
country
no
| can
year
the
of
war
is
drawing-to a close, this de¬
terioration has not been as great
as most of us have feared.
It has
now
not
rapidly as the cur¬
deterioration in some of the
gone
rency
as
the situ¬
European countries 25 years ago
at the time of the First World
ation: issued
by F. M. Mayer, 30
Street, New York
City.
Copies of the memorandum may
War.
Broad
rency-has been only one'-of the
sacrifices which China has had to
be
make.
detailed memorandum
New Jersey
Municipal Bonds
obtained
from
the
on
firm
upon
J. S. Rippel &
Co.
1891
Newark 2, N. X
MArket 3-3430
Y. Phone—REctor
2-4383
of
sacrifice
Inflation
can
the
cur¬
best be com¬
request.
bated by large import
To Form Geer & O'Connor
to
of goods.
'!
in
Office:
26, Bishopsgate,
London, E. C.
in India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
Branches
Subscribed Capital.
Reserve
The
Bank
£4,000,000
£2,000,000
Capital
Paid-Up
Fund.—___._£2,200,000
conducts
banking
every
and exchange
Trusteeships
description
business
of
that
Executorship*
and
also undertaken
purpose.
,
and
£5,000,000 respectively.
Notwithstanding the further
strain which will have
China
as
of
one
the
to be faced,
victorious
ment and
gram
the
of industrialization, besides
development and moderniza¬
tion of
powers
with
*a
monetary
its
system
after the in¬
flations in Europe 25 years ago.
was
the
case
strong
that
China is
condition
to
and
well-being
peace
an
It is my firm
.economically
an
indispensable
agriculture.
will emerge from the war
conviction
much better prospect of
restoring
than
expansion after the war.
a
large-scale pro¬
includes
This
the
the
maintenance
of
improvement
of
of
the world. The
As to China's interest in silver,
its best
China
market has long been a
and I ;am; the Chinese Government intends dream which, I believe, will come
to follow
along.-with the other true after the war when the
pur¬
Garrow T. Geer, Jr., member of somewhat surprised that the ex-!
United
Nations with regard to
the New York Stock}, Exchange,, tent of taxation in China is not
chasing power of "400 million
The monetary standards. China has customers" is increased.
and
William
F.
O'Connor
will more fully realized abroad.
had
a
managed currency since
form Geer & O'Connor with of¬ 1944 budget estimates figure the
After the first World War, Dr.
was
exceptionally
fices at 42 Broadway. New York return from current tax revenue 1935,_ which
Sun Yat-Sen proposed a plan for
stable until dislocated as a result
City, as of July 20. Mr. Geer has at'52% of total expenditures! ; It
what he termed "the international
been active as an individual floor is, uncertain whether this can be of, Japanese aggression. The Chi¬
nese Government
intends, in the development of China." He em¬
broker; Mr. O'Connor will act as realized, especially because recent
reconstruction of its currency sys¬ phasized the principle of coopera¬
his alternate on the floor of the military operations have materi¬
tion with friendly nations and the
ally cut into revenue—for ex- tem, to make use of silver toExchange.
Y
Bank Stocks
The
Government
China already
has paid off some of the wartime
gether with nickel and copper for
credits, including the 1938 woodsubsidiary coins.
y
oil credit of $25,000,000 and the
China is looking forward to a
1941
American and British sta¬
bilization
credits
of $50,000,000 period of great economic develop¬
for
Considering that
the
to
Kenya Colony and Uganda
Head
,
N.
.•
£3,000,000
,
.
...
LONDON
,
18 Clinton St.,
CAPITAL
FUND
and 7 King
6
.
Established
1
No.
Register
FULLY PAID
RESERVE
'
'
Cairo
Office
China
ago.
to devote to the com-; ment has considered it necessary
to maintain the official value of
mon effort all the resources-that
it had accumulated and could pro-' its currency, as part of the pro¬
duce.
:
of EGYPT
Head
the war extended,; the; gram of sustaining the war effort.
A change under present conditions
occupied many of China's:
40.13
38.29
*2.20
*1.30
richest provinces and centers, of would' hurt confidence and un¬
National City 4
0.53.V
0.64
86.90
85.34
*2.86
*3.41
New York Trust——___——
1.41
1.71
production—destroying and loot-' doubtedly aggravate the price rise.
49.70
48.30
2.15
1.51
Public
'
0.82 4
1.15
The eventual adjustment cannot
1,520.98
33.47
32.52
ing as they went.
As a result of
1,517.50V. S. Trust
16.47
16.60
be
forecast.
The Chinese
the suffering and sacrifice for the; now
"Reported net operating profits.
Government realizes the difficul¬
profits of $.21 and $.93 respec¬ common cause, China today faces
It is of interest that some of the
difficulties which are greater than ties entailed for foreigners in view
'*
"
*"• '
"
*
banks are instituting the custom tively.
Out-of-town
•
' : | !
! of rising prices, and has been giv¬
banks, also,
are many can imagine. '
of
issuing f semi-annual earning
ing them an exchange supple¬
Destruction and looting by the1
reporting increases in deposits and
statements,, in addition to their
ment.
v;,.!>:;'v; ./i,:;'-v
earning assets, and further im¬ enemy, together with the block¬
condition statements.
This is a
Tn order to sustain the currency
provement in earnings.
Chicago ade which has been tightened
most
helpful and commendable
as far as conditions permitted, the
innovation.
The banks whose banks in particular appear to be more and more since outbreak of
Chinese Government has always
semi-annual earnings are reported reaching peak figures in deposits the Pacific War, Jiave progres¬
and
Government
securities, and sively 'reduced the supply of' es¬ attached importance to maintain¬
in the tabulation, instead of indi¬
Also, i n t e r n a 1 ing proper currency reserves. The
cated earnings, are marked with furthermore, the National banks sential* goods.
of Chicago' are reporting a sub¬ transport has continually deteri-; credits'given by thd American and
an asterisk, as follows: Chase Na¬
British Governments, and partic¬
stantial
rise
in- loan-s and
dis-* orated," both
from shortage of
tional, First National, Guaranty
counts. Data on some of the prin¬ transport equipment and gasoline': ularly the large credits granted
Trust, Manufacturers Trust, Na¬
following the outbreak of the Pa¬
tional City and New York Trust, cipal out-of-town banks will be and from enemy occupation of im¬
presented
in
this
column
two portant railroads, rivers and roads.- cific War, have been very helpful
Chase National Bank's reported
Guaranty
47 Berkeley Square, W. 1
•
,,::
vest.
"Japan's
drive for world domination
Book Value
Per Share
Per Share
-
•
,
China's
Months Earnings
E. C.
Street,
Threadneedle
29
^
China
has
maintain
been
doing
taxation,
,
Volume
183
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4298
160
the
Price Control Continued One Year
Regrets Italy's Omission Front Monetary Talks
textile
parity
reflect
to
items
$50, whichever is larger, to the
or;
actual amount of the
prices for raw cotton.
In addition to requiring item-
In
larger.
which defendants fail to
in
cases
by-item' pricing of "major" cotton
textiles to reflect .parity;-the re¬
overcharge,
whichever is
$25,
or
*
that the violations are nonwilful, courts may fix damages
anywhere between one and three
prove
omission of Italy from participation in the monetary con¬
The
ference
(Continued from page 174)
which
is
now
taking place at Bretton Woods, N.YH., is re¬
gretted by Luigi Criscuolo, long interested in promoting better finan¬
cial relations between the United States and Italy.
Mr. Cfiscuolo
said recently
that Italy should no longer be treated as a belligerent
in view of the fact that a great part of Italy is now in the
hands of the Allies, but because^
—_
of
debits
and
credits
between which should not be ignored in
not only
the
Italy and the United States are
President, acting through any de¬
very/large,
much larger than
partment or agency of the Gov¬ times the amoupt of the over¬
those with other nations whose
ernment, to "take all lawful ac¬ charge, or between $25 and $50,
amendment
vised
tion" to
empowers
parity prices or the highest prices
between January 1 and September
1942,
15,
basic agri¬
the
ail
on
commodities
cultural
larger.
resources
"
review
OPA Review Board—A
is
board
against
cotton,
—
is
whichever
farmers of either
assure
set
to hear protests
orders and advise
up
OPA
the Price Administrator
as
to
are
much
the calculations
Behind
a
smaller than
fabulous
if
sum
and: the
ac¬
in
sidered in lire at the present rate
wheat, rice, tobacco and tion on protests, and protests can
of 100 for the dollar.
But if we
peanuts—without specifying the be filed against any present, past
consider
debits
and credits be¬
steps he may take. The definition or future OPA regulation, but
tween
the
two
countries
on
of "major" items is left to OPA.
final authority js left with, the
.(
Cotton
received special treat¬ present Emergency Court of Ap¬ purely commercial transactions,"
ment also in an increase in the peals. /
said Mr. Criscuolo, "we have an¬
loan rate to 921/2% of parity, while
OPA Can Initiate Spit—Previ¬ other fabulous sum? to consider,
the rate was retained unchanged
ously only the aggrieved pur¬
at 90% for the other basic agricul¬
chaser could take action in treble
tural products. The 92lA% figure
damage suits against' price vio¬
for cotton was a compromise, an
lators. but the new law provides
95%
to
increase
agricul¬
all
for
tural commodities in the original
rejected.
Enforcement
addition
In
—
,to
to the stabili¬
amendments
benefit cot¬
control may be made
zation act designed to
ton, price
somewhat
appear
forcement.
for lack of compliance
the new law mod¬
penalties
more
severe,
them.
erates
v
price control
to weaken en¬
Instead of making the
which
act
the
by
difficult
more
to
amendments
While
*
-
criticism of
of the
the
that
80%
OPA" by lib¬
"eliminate
would
law
new
;
asserted
is
it
OPA
authorized
is
itself
Rent Control—Rent ceilings
adjustable
individual
in
delay.
regulation
and seek
price
litigate
have
taxes
stantially;
in
defendant
The
criminal
a
proceeding
can
file a protest
against the validity of a regula¬
the
with
tion
Court
Emergency
Appeals within 30 days after
arraignment, and the criminal ac¬
tion will be stayed while the pro¬
of
before
is
test
the
Emergency
maintain
Critics
'Court.
that
a
protest on the validity of a regu¬
lation could result in at least six
months'
delay in a criminal pro¬
ceeding.
Y- Defendants
increased
been
controls
can
in¬
for
apply
only temporary injuctions against
particular pro¬
vision of a regulation, while for¬
merly an injunction could be ob¬
tained
against violation of the
entire regulation. In addition, ap¬
peals on validity are likely further
to delay action in civil suits.
the violation of a
■'
Reduced —The
Penalties
new
for "nonwilful" price law violations from
the
present
standard
of three
law
reduces
times
the
penalties
amount
of
overcharge,
America
•
foreign
and
others
United Nations, I
active
an
part
in
of
the
hope, will take
aiding in the
increases.
rent
confident
that
the
dele¬
gates to the International Mone¬
tary
and
Financial
Conference
will
F
why
it
is
reach
agreement.
That
is
have come here. Clearly
in
everybody's interest to
will
Locust
;
tailers.
The
COMPANY.'//.
Eighth
St. Charles
-
LOUIS, MISSOURI
Y
is retained
abolished
but
turers,
-
ST.
JUNE
1944
30,
to re¬
required
as
regulation
retailers to limit their stocks and
to
offered
the highest price line
during the base period.
Subsidies—The
law
new
bans
the
broadening of the " present
$1,500.000,000-a-year food subsidy
program, and terminates subsidies
after June 30, 1945, unless Conr
gress
specifically
appropriates
■//::7/;-/;-*'":V'■//:■
'
Yy
,
Provisions—OPA
/Other
15
on
1942
account unusual
losses.
crop
■ •
y.
Among
the
amendments
which
amendment,
defeated
many
the
were:
-
Wiley
have
would
raising weekly wages
$37.50 for all workers, white
vYY-!'-v
•'VAV
-f.* '
■
V.'
:/:;//'
•:
Obligations, di->
Government;
VK--
166,599,910.78
23,158,824.41
Y
—.
50,043,611.19
collar
not,
or
Disney
the
proval;
without
WLB
420,000.00
Stock in Federal Reserve Bank in St. Louis„ y
(Company's Building) i—_—._ .V 2,790,536.40
Y Real Estate
Real
Other
merce
Overdrafts
of Com-
(Former Bank
Estate
Buildings)
Y
;
•
1,500,000.00
—
J
___
;
Acceptances and Let-;
Credit-———_____
Y
6,470.15
/
Customers' Liability on
ters of
1,228,453.12
—.
permitted
to
:
-
•
Demand and Time Loans_^___
c
«'
67,682,500.71
_—
Other Bonds and Securities
Y
Amendments Defeated
v
guaranteed (incl. $70,513,839.50
pledged*) Y-
must
on
yv;
and
rect
farm crops at.least
fish must reflect
price; and ad¬
justment is directed of fresh fruit
and vegetable prices to take into
ceilings
average
resources
the
y'
y
States
United
days before the planting sea¬
son;
>Y-Y.
Cash and Due from Banks
funds for their continuance.
fix ceilings
v> 'Y .y/V.
Other Resources
ap¬
amendment,
$313,634,475.08
-
I
204,168.32
;
\
r
'* 1 /
..
.
,
which would have raised the price
of oil and oil products: the Dirk-
which
amendment,
sen
have
rule
the validitv of OPA regu¬
on
Pace
amendment
which would have penalized pro¬
cessors who paid less than parity
the
lations;
the Kleberg amend¬
ment, which would have penalized
those who receive subsidies but
to
growers;
violation
that
plead
was
;
Y
Conclusion
"
•,
not
Y
wilful.
I
..
.* '
•
........
..
••••
Y
«"
s.,?;r
>YV
guards against inflationary price
and wage trends.—From the July
6th
number
ing
issued
Research
tional
of "Investment Tim¬
by
Economics
and
^Department of the Na¬
Securities
&
Corp., New York City.
LIABILITIES
THE
would
permitted district courts to
Research,
Capital Stock
Y
Undivided Profits
—■
Liability
965,073.49
—_—________
on
Acceptances and Letters Yy
of Credit L__
Other
—
$ 61,330,572.04
Deposits, Timey_-_—
49,743.00
j
192,144,283.52 j
Deposits, Demand
^
38,824,327.84 292,299,183.40
I
Securities
j
i
Public
Secured;
i
*All
1,228,453.12
_—
Funds
Other
3,074.55
Y
:
Other Liabilities
Deposits,
525,000.00
____'
Interest, Taxes, etc
Unpaid Dividends
Bank's
4,563,947.52
—_——
—.
Reserve for Dividends Declared——.
Reserve for
$10,000,000.00
4,000,000.00
___.
Surplus
$313,634,475.08
pledged
are
to
Missouri and the^City of St.
the U.
S.,Government or its Agents,
State of
Louis, to Secure deposit and fiduciary obligations.
MEMBER FEDERAL DEPOSIT INSURANCE
is not
CORPORATION
in¬
the
conference
and
pres¬
suffer drawbacks."
CONDITION :
OF
TRUST
AND
BANK
wholesalers and manufac¬
to
we
make the Conference a success.
tige
"highest
development of; China.
The Stabilization Extension law
protection to for¬ continues price, wage and rent
eign investments. As to American regulations and the OPA admin¬
participation,
China looks for¬ istering .them for at least another
ward to a long period of happy
year. While the law contains some
association and mutual assistance
amendments, in procedure/ and
between the two sister republics relaxation,
of
penalties .* against
across
the
Pacific.
China
will non-wilful
violators,
that may
welcome American tools and ma¬ tend to weaken and obstruct its
chines, American capital, Amer¬ effective
enforcement, <; on /the
ican
engineering and - technical whole it, retains adequate safe¬
am
interests
American
or
/•
Lines—OPA's
Price
China will give
I
to, reoresent
appointed
MERCANTILE- COMMERCE
sub¬
/post-war
services.
conference
terests of Italy at that
Apart from
abol¬
be
Can
capital for
the development of China's re¬ who do not
pay parity to grow¬
sources.
Dr. Sun's teachings con¬
ers;
and Y the
Chandler-Wicks
stitute the basis of China's na¬ amendment, which would have al¬
tional policy.
YY: ■
lowed defendants in civil suits to
of
Utilization
Woods
even an American, pri¬
citizen of Italian origin, be
vate
ians learn democracy.
STATEMEN T
The
government.
someone,
should stay in Italy until the Ital¬
ing this step would not result in
abnormal
the
junctions in Federal district courts
against suspension orders for vio¬
lating rationing regulations. OPA
may not deprive persons, because
of prior violations of price ceil¬
ings, of the right to sell rationed
goods. Moreover, OPA can obtain
are
group
going to help that situation very
much, and that is why I urge that
a'rmies
American
Fascist
Bretton
Poletti to the ef-
the
new
omission of Italy from the present
"hard¬
ished in communities where tak¬
sales
;
that
other
the
government
the
recognize the bonds
obligations issued by
never
cases
as;
to
and
Fascist
overthrown
would
thing I have heard of for a long
on the part
fact
the
if
that
were
to
and/upon a showing
that rents are substantially higher
5r lower than prevailing rates, or
if/landords'
operating costs,; or
ship"
price line" regulation
encourage
leader, wrote me some years ago
time is the statement
of Col. Charles
the
of
members
purchase commodities
against OPA regulations, another
view is that changes in procedure
may
that will get
Italian trade
the future. The most ridiculous
:one
the
of
One
anti-Fascist group, a great Italian
evidence of violations.
as
eralizing procedure as to protests
violators
the
win
will
during
years
helped in that rule by Amer¬
ican finance, the Italians had re¬
publics a thousand years ago and
do not need any lessons in democ¬
racy from us.
was
initiate such damage suits if con¬
sumers fail to act within 30 days,
and also to
f
these
that
which
one
confidence of the Italians will be
the
con¬
corn,
Bankhead amendment having been
it
all, I see not a little
rivalry between the United States
and Britain for primacy in Italian
financial
and
industrial
affairs,
Italy's. "Taking only the issue of
$100,000,000 in Kingdom of Italy
7%
bonds as an example, that
amounts to
being, made.
now
twenty-one
which Fascism ruled in Italy, and
;
THE
184
Thursday, July 13, 1944'
COMMERCIAL & FINANCIAL CHRONICLE
-
v'
v.: .•••.
r
■£. A"
New SEG Rules On
liquor Stocks Trading
the
two new rules.
the Commission,
"requires
reports
to
be
filed
promptly by issuers of securities
registered oh a national securities
exchange whenever they decide to
SECOND FUND
TRUST
MASSACHUSETTS INVESTORS
Exchange
Commission announced on July 7
v!
of
adoption
"The
MASSACHUSETTS INVESTORS
and
Securities
Tne
0'
A.'''
FUND
BOSTON
first,"
says
declare dividends or-distributions;
A
relating to any of these Funds
prospectus
/,
;
/
!
cash
"
he obtained from
may
STOCK SHARES
-'J.
STREET
Hi DEVONSHIRE
An investment in
-
diversified and
a
BOSTON
:
15
210
Exchange Place
on
of railroad stocks.
West Seventh Street
clared dividends
vent
before
amount
Securities
Research Corp.,
&
National Notes, contributes an
literature
from
forms
other
The
tax
long-term
is
capital gains
75%
leaving
25%,
in¬
Federal
maximum
taxes.
of
Federal
after payment of
on
gains
capital
long-term
and
come
of
the
individual in the
top tax bracket. The rate of tax
profit
the
to
of
dividends and other income,
on
Medium-Grade Bond
Fund
(B-2), between 1936 and
1943, total assets increased $482,000,000, while total funded debt
was reduced $639,000,000.
In the
same period, net working capital
increased $499,000,000 and aver¬
age
to
high
Group
Stock Shares,
Railroad
of Group
class
Securities,
Inc., representing "an investment
in
diversified and continuously
a
group
of
railroad
Copies of the announce¬
supervised
stocks."
ment
Prospectus
ad, together with
a
may
be obtained
from Authorized Dealers
tv'v:'
'
or
*..>.. *
In
the
current
r-t'rs---
of
Steel
'V'-Day'' and it contains a sum¬
mary
of the advantages to the
investor "through the shares of
any
well - managed investment
n
63 WALL
o
c
r
p
r
|o
a
t
D
e
STREET, NEW YORK
5,-N. Y.
basis
wise
tion
amount of investment funds, how¬
ever small.
•
' j
-T'"'.
News, Distributors Group reprints
a
bullish
from the
article
steel
on
stocks
June 24 issue of "Busi¬
Week."
The
the New York Stock Exchange
currently at a low point, despite
is
market values.
therefore, be con¬
fit. might,
cluded that the buying that came
largely
cash basis and it follows that
into the market was very
question posed
by "Business Week" at the con¬
on
clusion of this analysis is one that
will profoundly shock the pessi¬
mists
on
in the
the steel industry.
end
question:
we
Do
cannot
we
at the
j'
Keystone Corp.-^A revised cur¬
rent data folder on Keystone Cus¬
Investors
Long & Co.—A new prospectus on
Fundamental Investors, Inc., dated
The letter con¬
July 1, 1944.-. Y; Lord, Abbett—A
revised composite summary of the
credit foundation."
the
steel
escape
have
the
capacity for full employment?"
memorandum
current
a
from
management staff, comments
briefly on the plight of the "DoNothing" investor. The reason, ac¬
cording to this sponsor, that many
small investors do nothing is be¬
the
Keystone Corp. presents a chart
in the current issue of
"Keynotes"
convincingly illustrates the
vast improvement in basic values
of medium-grade bonds since 1936.
which
the
National
past five years.
cludes: "The decrease or elimina¬
tion of excess
be
of
special
Lord, Abbett group of investing
growth companies; a current prospectus on
American Business Shares, dated
profits taxes should
benefit .to
stocks."
they don't want to put all
into one security and
their funds do not permit them
to invest in a sufficient number
cause
their money
of securities to
June
Calvin Bullock's "Bulletin" dis¬
stocks" and gives
examples of eliminations from the
Dividend Shares portfolio in the
past few years of stocks prin¬
cipally in the "war beneficiary"
category. Another list, typical of
the major additions to the port¬
folio during the same period, is
given. The companies in this list
are
notable for their generally
satisfactory position with respect
cusses
Commonwealth Investment Co.,
in
in
stocks
higher levels now prevail¬
"For
get the
to
"peace
reconversion.
■
.-.V;W'
28, 1944; a letter giving cur¬
data on the Lord, Abbett
rent yield
group of funds. ... National Se¬
curities &
Research Corp.—Re¬
information folder
Securities Series
and First Mutual Trust Fund; the
current issue of "Investment Tim¬
current
vised
on
the National
ing," discussing price control and
the OPA; a portfolio memoran¬
dum
showing changes in the Na¬
tional
Securities
during June.
group
\
of funds
>
of
such
that
with respect
value of the
cise
security, it may exer¬
authority under Section
its
19
(a)?-(4) of the Securities Ex¬
change Act of 1934 to order a tem¬
porary ^suspension of trading in
that security on the exchange on
which it is registered, pending the
availability of adequate informa¬
tion.
vV'}'
.
second
"The
defining, and prescribing means
reasonably designed to prevent,
such
acts
and practices
as
are
fraudulent, deceptive
in
lative
Prospectuses
K-l, 2 in Preferred Stocks
upon
or
manipu¬
over-the-counter
This rule, X-15C2-2, is
against the same potential
evil in the over-the-counter
kets
which
sion
a temporary
trading
under
of
19(a)(4)
would
mar¬
suspen¬
Section
prevent
in
re¬
Rule
X-15C2-2 is not limited in its ap¬
purpose
to
trading
whenever
ex¬
19 (a)
(4), provided
suspension is for
S-l, 2, 3, 4 in Common Stocks
jp
BROADWAY,
NEW
YORK,
A
BALANCED
Dividends
FUND
Prospectus oh request from Principal
CHICAGO,
10
Post Office Square
to
MINNEAPOLIS, MINNESOTA
La Salle St.
(4)
So.
REPRESENTATIVES
IN
THE
PRINCIPAL CITIES
OF THE UNITED
Stock & Bond Group
stock of record July. 31.
Quarterly
(9)
208
on
shares, amounting to 37 Va cents
per share, payable Aug. 31, 1944
INVESTORS SYNDICATE
(5)
Institutional Securities, Ltd.—A
dividend
Underwriter
LOS ANGELES, 634 S. Spring St., (14)
BOSTON,
of preventing fraudulent,
or manipulative acts or
practices."
■0
Research Corporation
120
the
the
deceptive
request
National Securities &
Series
the
markets.
aimed
counter
Securities Series
'N
Series
STREET, BOSTON, MASS.
promul¬
situations contem¬
reporting rule,
X-15A-6 (e), but will operate au¬
tomatically to outlaw over-the-
NATIONAL
B-l, 2, 3 and 4 in bonds
SO CONGRESS
is
1934, which requires the Commis¬
sion to adqpt rules and regulations
summary
follows:
Tiie Keystone Corp. of Boston
rule
gated under Section 15 (c) (2) of
the Securities Exchange Act of
pended by the Commission under
Series
..
distribution is
inadequate to permit investors to
make a proper appraisal of the
Section
■
to the contem¬
or
change trading is summarily sus¬
Certificates of Participation in
Trust Funds
.'
other¬
or
available informa¬
plated by the new
Custodian Funds
Prospectus may be obtained from
your local investment dealer or
report
a
the
plication
protection
Through a mu¬
tual investment company they can
•et broad diversification for any
as
re-»
;»
spect of exchange trading.
:
of diversification.
investing their capital
distribution.
or
plated dividend
Mutual Fund Literature
Corp. portfolio are shown for the
ing, the market rests on a strong
ness
Similar
the
dividend
Broad Street
the sharp rise in
of
"If the Commission finds on the;
trust."
on
distribution.
or
required whenever the
contemplated divi¬
dend or distribution are changed
in any material respect, and also
upon the actual declaration of the
The current issue of "Abstracts"
i
ex¬
are
terms
designed by Lord, Abbett
"especially for use in a general
mailing to any list of present or
prospective holders of investment
company shares," The title of the
memorandum
is
of
"Approach
national securities
a
ports
Stock
y
issue
;
rules,
new
13
on
idend
^
descrip-
Railroad
on
,
the
cash, stock or a warrant for stock,,
promptly file a telegraphic
report with the Commission con-:,
taining a full and accurate de¬
scription of the contemplated div¬
Sales Corp., in the todial Fundsra general prospec¬
Vance, Sanders & Co. points current issue of
"Items," gives tus dated June 26, 1944, 'and sup¬
Shares and a memorandum show¬
out in the current issue of "Brevsome illustrations of the effect of
plementary prospectuses on Key¬
ing the current portfolio of this
its" that the ratio of brokers' loans
wartime taxes on growth stocks. stone S-2 and Keystone S-3, both
group, were mailed to affiliated
to market value of all stocks listed
Average earnings per share of the dated JUrie 23, 1944. . . V Hugh W.
dealers. ■,''-..-H*.
Vfff'
tivef; folder
of
it shall
.
jyy'--
s|i
was
its announcement adver¬
on
new
$
*
dis¬
change decides to declare a divi¬
dend or distribution, either with
or
without consideration, in the
form of some asset other than
as
Distributors
week
released
tising
as
individual.
the
This
a
be
can
tered
interest coverage on the bonds
from 1.19 to 2.30 times, an
improvement of 93%,
95%,
leaving only 5% of such income
however,
Group Securities, Inc.
Taking tne bonds currently held
in Keystone
rose
and
be
to
(e), is promulgated under
(a) of the Securities
Exchange Act of 1934, the section
dealing
with
periodic
reports^
This rule provides that, whenever
a company with a security regis¬
Section
income under present tgx l#ws. ,
A chart is used to show the <§>■
from
nature
X-13A-6
in the current issue of
interesting discussion to the current
sharp contrast in the net amount
which
an
individual
retains
.
asset
.;
first
"The
desirability of capital gains over other forms
the
on
the
is
information
the
to
as
of
tributed.
"Should An Investor Seek Profits?"
de-\
recently
payable in whis¬
adequate
available
of
Mutual Funds
National
based largely
They are intended to pre¬
potential abuses in trading
key.
class
are
have
which
turers
MM1.'"
a
rules
new
the
trading experience in the
stocks of .several liquor manufac¬
group
LOS ANGELES
JERSEY CITY
CHICAGO
South LaSalle Street
120
continuously supervised
second
The
The SEC also states: .V
"The
:T::"'f
asset other than
an
.securities.
or
rule," it adds, "prohibits over-thecounter trading in a security dur¬
ing any. period when the Com¬
mission, for the purposes of pre¬
venting fraudulent, manipulation
or
deceptive practices, has sus¬
pended exchange trading in that
security." ,::
■ v
v\>
& COMPANY
SANDERS
VANCE,
in the form of
INVESTMENT CORPORATION
STATE STREET
STATES
dividond
of
Income
11
conts
Shares—A
share,
payable Aug. 1, 1944, to stock
record
July
15.
of
.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4298
160
the amount that
South African Delegate At
Conference Urges
A Flexible Gold Standard
M
Holloway Says That International Monetary
Dr. JL E.
Fund, By Readjusting The Value Of Gold, Can Maintain
Proper Relationship Between Gold And World Currencies—He Is "Not Worried About The Future Of
Gold—It Will Continue To Play Its Part
In The World"
of the Union of South Africa to
the International Monetary and Financial Conference, Dr. J, E. Hol¬
The Chairman of the Delegation
•
formal statement made to a committee to the conference,
Importance of the proposed International Monetary Fund
as "a hope for an orderly change in the relationship between gold
and currencies of the future." Dr. Holloway reiterated this view at
loway, in
a
stresses the
conference on July 7, stat-^
That element of
"We are not worried about great republic.
the future of gold.
It will con¬ mobility and adjustment which
tinue to play its part in the world." helped so materially to ease the
His statement to the committee is unemployment problems of Eu¬
rope in the 19th Century has lost
given below in full:
a
press
ing,
I
must
crave
of
the indulgence
of its value.
most
We have, secondly, to reckon
is
of experts to whom the matters with a more rigid wage structure.
Wage legislation and industrial
to which I am going to devote
myself are matters of common organization have lent a greater
knowledge, for dealing with facts fixity to the remuneration of la¬
well known to its members.
My bor than the worker of the 19th
It is no longer
sole object is to bring into the Century enjoyed.
focus of consciousness the back¬ possible to adjust wage costs to a
this committee, composed as it
ground against the problem of the
tween
gold and the currencies of
Post-War Outlook for Rails
the world, with the need to have
B.
W.
Pizzini & Co., Incorpor¬
55 Broadway, New York
for the greater
City, have an interesting discus¬
tance.
If, however, more gold is rigidity in the economic structure, sion of the
post-war outlook for
required, a rise in price' brings the Fund will be in a position to railroad securities in the current
within the margin of payability measure strains and stresses, much
issue of their "Railroad Securities
large bodies of low-grade ore. It as an engineer does, when it comes
Quotations."
Copies of this pub¬
Will perhaps assist to illustrate to consider a
general and orderly lication, which also contains quo¬
how closely the production fol¬
tations on guaranteed rail stocks,
change in parities.
lows
the
price if I point out
As
the representative
of the underlying mortgage bonds, re¬
that Johannesburg is 5,700 feet
organization railroad bonds, mi¬
above
sea
level,
that a large United States of America (Mr.
nority
stocks
a n d
guaranteed
number
of
mines
are
working Brown) has said, such a change
telegraph
stocks, * may
be had
well
below
sea-level
and
that
should not be lightly made. Strong upon request from B. W. Pizzini
the amount of gold extracted from
& Co.
sanctions are therefore necessary
one
ton of ore brought up from
the bowels pf the earth to Johan¬ to ensure that there is general
Now A Partnership
nesburg, and finely crushed, is agreement, a based -■ on
accurate
SAN
appreciably less than the weight evaluation
FRANCISCO,
CALIF.—
of
the
information
of
an
American
quarter-dollar,
The business formerly conducted
which for the first time in the
and yet it pays.
.,
by Wilson, Johnson & Higgins,
The
mining industry on the history of the world will become Inc., 300 Montgomery Street, has
greater flexibility in the measure
of value to make up
ated,
,
Rand therefore gives a
available when the Fund is prop¬
further in¬
the correctness
of the re¬
dex
to
erly
lationship between gold and com¬
modities.
A disturbance of the
hand,
of
the
world's
make
a
the
other
should
hesitate
not
to
change when the diagnosis
which it
gold-bearing
On
way.
I have tried to indicate,
as
Fund
the
relationship in favor of commodi¬
ties immediately depresses below
the level of payability millions of
tons
under
make
can
on
its available
data shows that such
change is
a
ore.
With
as
to
these
the
indices
necessary
it
guide
to
V
of the world.
relationship be¬
proper
for the economic health
v
been succeeded
by Wilson, John¬
Higgins,
a
partnership.
&
son
Members of the firm
C.
ners.
^
are
In the third place
the great in¬
to
to
millions
Russell
-
distinguished company of
because Ithe Monetary
Fund approach to the problem,
which we are trying to solver is
the only one which offers a hope
for an orderly change of the re¬
lationship between gold and cur¬
rencies in the future. I would re¬
millions
mind
BANK
NATIONAL
tegration of capital in the indus¬
trial structure—the investment of
system.
Fund will
It
is
;
this
sketch
such
operate.
the more
'v
"
necessary
background, even
a
experts,
of the-experience we
went through when the last phase
of
the
breakdown
of the* gold
standard set in in 1931.
We were
so
accustomed to '* the traditional
you
and
of
hundreds
even
in integrated industrial
plants—has further reduced the
capacity of the economic system
to adjust its costs downwards to
fit into
a
fixed
measure
It
some
for
is
these
that
reasons
just
the
value from
I would go further
of
measure
and say
that unless the world can
achieve this measure of flexibility
its forward march into the future
will proceed from crisis to
This Fund which
precious possession—to - recapture
part of which we are now devot¬
ing much thought in this confer¬
ence.
I refer not only to my own
create
to
will,
we
crisis.
trying
are
h
I
refer
the
to
*
United
I refer, to the
States of America.,
for
y ;
the first time
RESOURCES
Cash
Hand and Due from Other Banks
on
>
United States Government Securities, direct or
guaranteed
Other Securities
.
J
.
.
.
.
,
,
*
*
,
,
.
[
.
,
.
264,775,152.39
,
.
fully
*
.
.
.
A
Stock in Federal Reserve Bank
in
country.
of Condition June 30, 1944
it
appear
essential to have
machinery by which we can ad¬
tween
of -us? hesitated . for* a
lengthy * period before we could
bring ourselves to discard that
Statement
would
time to time.
many
DETROIT
Complete Wartime Banking and Trust Service
of value.
flexibility there must
be. In a world of change we can¬
not
work an
ossified economic
Yet
stability
of the relationship be¬
gold and > currency that
OF
,
803,643,796.39
.
;
>
Loans:
history, make available the ex¬
data by which such adjust¬
ments can be accurately deter¬
mined. The Fund will, after it has
gold bloc in Europe.
It took us been running for a few years, col¬
five
years
to accomplish
that lect together a body of data and
change, for the. orderly >acconw experience for this purpose.
The Fund's own series of sta¬
plishment of which, if • the need
should again arise,< we are now
tistics for its gold holding will
trying to fashion machinery. Those give from month to month, from
five years were years of trial and year to year, a chart of the physi¬
error, of overshooting the .mark
cal condition of the economic sys¬
here,
of
under-estimating
our tem. If those data show that the
troubles there. .Mhshered in that gold -holdings
tend towards the
period of competilive exchange upper limit, it will be prima fade
depreciation,
evidence that not much is wrong,
may beggar - myneighbor policyVAvhich cost the and that the relationship between
world so dear. We hope to do bet¬
gold and commodities is reason¬
Loans and Discounts
Real Estate
.
.
.
.
,
,
.
Mortgages
.
.
.$127,735,308.38
,
Overdrafts.
Branch
.
,
.
11,045,747.70
.
.
*
.
.
Buildings and Leasehold Improvements
112,984.30
we
have
that
period in
Chairman,
entering into
are
which
ably satisfactory.
■
Mr.
believe,
a
cannot, even when we
achieved a measure of ex¬
we
change stability, hope to have that
continue for such a lengthy pe¬
riod,
the period which ended
as
Accrued Income Receivable—Net
I would remind you that
during
that period
the economic system
possessed a high measure of flexi¬
bility. It was possible on that ac¬
count to adjust prices downward,
and therefore to maintain a rigid
of value.
I do not want to
self
into
sidetrack my¬
of the
consideration
a
question whether the world would
not be better served
restora¬
tion of that flexibility of the eco¬
by
a
nomic system.
Those of our gen¬
eration
nurtured
schools
were
of
economics
of
in
Europe
and America in the belief that
a
that
mankind well.
realist I recognize that we
flexibility
As
the
must
moved
served
face
into
a
world
an
era
2,408,644.72
,
.
.
.
.
be considered. The Fund will have
statistical
exact
of
which
the
for
the
Bank
United
kind
all
to
I
.
.
also
as
long
in
.
*
.
,
«
.
2,157,761.27
.
■
•
Other Public
$913,846,103.98
269,964,559.12
.
.
.
.
.
.
.
.
.
.
13,683,504.07
♦
.
.
.
.
,
22,963,088.45 $1,220,457,255.62
.
.
,
.
.
.
.
Treasurer, State of Michigan
Deposits
.
Capital Account:
Preferred Stock
.
.
8,500,000.00
Common Stock
the
.......
10,000,000.00
Surplus
1931
in
•
.
.
.
„
.
.
11,500,000.00
.
10,282,363.80
Undivided Profits
between
value
It
commodities.
Government
of
Reserve for Common Stock Dividend No. 20,
August 1, 1944
as
ther data bearing on the
ship
•
40,282,363.80
its fateful decision.
would
that
203,848.87
:
Commercial, Bank and Savings
that
passing point
South Africa
continues to play the role which
it now does as gold producer, the
Fund will have at its disposal fur¬
out
,
U. S. Government
when the British Government had
to make
.
.
LIABILITIES
Deposits:
England had
of
Kingdom in
is
true
South
relation¬
gold and
that the
Africa'can
Reserves
Our
.
1
payable
.....
.
v
500,000.00
♦
4,870,098.03
...........
Liability Account of Acceptances and Letters of Credit
United States Government Securities carried
are
pledged
influence that re¬
lationship, but the influence which
it can exert is a comparatively
small one in comparison with nat¬
to secure
public and
trust
at
2,157,761.27
,
$331,437,895.29 in the foregoing statement
deposits and for.other
purposes
required by law,
by its policies
Member Federal Deposit Insurance Corporation
ural factors.
has
The circumstance
I allude to is
that gold mining in
South Africa
has been reduced to
ployment in Europe, obtain easy
The
decade after decade to this
for
data
similar
a
.
.
1,268,207,478.72
the Fund, it will
be a pointer to the possibility that
some change in its value in rela¬
tion to all currencies may have to
.
Liability Account of Acceptances and Letters
of Credit
flow away from
rigidity of economic structure.
No longer can
population by
the million displaced from em¬
access
Customers'
the other
on
greater
which
of
If,
Prepaid Expense
hand, the gold tends regularly to
world
in the early thirties.
measure
1,032,033.93
.
.
I
138,894,040.38
1
.
.
ter next time.
54,252,200.77
900,000.00
.
act
dustrial
basis,
many ways
a
similar
purely in¬
in
very
to factory production.
gold is scattered very thinly
through large bodies of rock and
BUY
U. S. WAR
BONDS
REGULARLY
Charles
H. Wilson,
Merrlam J.
Howells, James M.
Stewart, Madison L. Howell and
Ernest O. Kauffman, general part¬
ners; Zella A. Hyman, Joseph L.
Hyman, Edgar B. Stewart and
Laurence D. Higgins, limited part¬
Johnson,
fixed standard of value.
the
which'
machinery4 through
be extracted
can
largely on cost of pro¬
duction.
The discovery of rich
new fields has receded in impor¬
depends
OUT
OF
INCOME
THE COMMERCIAL
186
We offer,
Thursday, July 13, 1944
& FINANCIAL CHRONICLE
2, a silver hoarding member coun-v
try shall be entitled to buy from
the Fund another member's cur¬
subject:
$250,000
exchange for its own
in an amount not ex¬
Canadian National Railways
ceeding 80% of the gold value of
the
country's
silver hoardings,
Dominion of Canada Guaranteed
(Continued from first page)
which
will
be assigned
to the
4 V2% Bonds, Due Sept. 1, 1951
Keynes, is concerned
with the view expressed that the draft of Fund as collateral security."
Non-callable
:
Bank for Reconstruction and De¬ the experts' agreement does not
|Antonio Espinosa de los Monvelopment. The secretary is A. require the supplying of precise
Price to yield 2.50%
y:\:
teros, the Mexican delegate that
Upgren.
It also is composed of data on gold production. There introduced the
above proposal, is¬
four committees, as follows:
(1) are under consideration two cS«Jbsued and gave to the. press a state¬
Purposes, Policies and
Capital; orate sets of required informa¬ ment
supporting the recommen¬
tion regarding gold.
One set re¬
(2) Operations; (3) Organization
v
dation
Incorporated
and
explaining Mexico's
and Management, and (4) Form lates to the official holdings of
position on silver. This press re¬
gold comprising; (1) gold held at
14 Wall Street, New York 5
and Status./
I:l.I
v •. ;■
Commission III has under its home and abroad, and gold-con¬ lease,^ however, was withdrawn
Direct Private Wires to Toronto and Montreal
last night, and a new proposition
vertible currencies as defined for
jurisdiction miscellaneous matters,
substituted. In its tentative form,
stated as "Other Means of Inter¬ purposes of the fund, and (2) gold
the Mexican proposal would (1)
national Financial Cooperation." holdings of banking and financial
agencies,
other
than
official require the Monetary Fund to buy
This section is headed by Senor
and sell gold and silver together
Eduardo Suarez of the Mexican agencies, together with their hold¬
and" .jointly
at a fixed rate in
By BRUCE WILLIAMS
delegation. According to the open¬ ings of gold-convertible curren¬ terms of member currencies and
cies and other currency holdings.
ing announcement of its chairman,
in a ratio of, say, one ounce of.
To close observers of the Canadian scene, it is a little bewilder¬ the deliberations of this commis¬ The information will also require
a
statement of a country's pro¬ pure gold to ten ounces of fine
ing to note that recent commentaries here on the political situation sion (which has not as yet been
silver, and that member countries'
in the Dominion convey the impression that Canada is in the process separated into committees) is to duction of gold, its gold exports
would agree to buy and sell from
and imports distributed by coun¬
of taking a sudden swerve to the left.
be concerned chiefly with (1) the
^
and to the Fund,, and from and
Nothing is further from the
—
r
—* regulations regarding "earmarked" tries of designation and origin; as
to one another, gold and silver to¬
well as a statement of merchan¬
truth. Just as the whole world,
gold and (2) the international
dise exports and imports in terms gether Vand jointly, at the same
including ourselves, has gone in
monetary functions of silver. Un¬
of local currency values, segre¬ rate in the same ratio. The pro-this direction since the last war,
like the other commissions, Com¬
posal goes still further. It would
it is not correct to suppose that
mission III is not dealing with gated by countries of destination
and origin.
Among other infor¬ give the Fund the power first to
this trend has lagged in any
specific proposals which have
mation to be listed as required alter, by a four-fifths majority,
been the subject of extended joint
way in Canada. However, it is
from member nations would be vote, the proportions of gold and
true that it has been somewhat
consultations and study by the
silver set forth above, when
a.
(1) its international balance of
technical representatives of vari¬
veiled since- the Liberal
and
GOVERNMENT
payments, comprising (a) trade in pe rmanent and fundamental
ous nations, and the character and
Conservative parties have
change in the average yearlv rate,
adopted
increasingly
leftish
dispositipn of its recommendations goods and services, (b) gold move¬ of production and consumption of
PROVINCIAL
ments, and (c) capital transac¬
policies, and consequently the
is, as yet, undecided and it is a
both metals has taken place, and,
movement has gradually taken
question whether its recommen¬ tions, together with its interna¬ secondly to eliminate silver en¬
MUNICIPAL :
tional investment position,/h fe.)
dations, particularly with regard
place but still under the old
investments
within the
country tirely from its joint purchases
to the future status of silver, will
labels.
and sales, and to permit member
owned
abroad
and investments
CORPORATION
be approved by the conference.
In fact, the present Liberal Gov¬
countries
to
do
likewise, only
abroad owned by residents ©f the
The committee meetings have
ernment
has followed a course
when and as long as, due to an
already gotten under way, but country; (2) a statement of the increase in
strongly similar to that advocated
price of silver, the
national income;
(3) price in¬
no final reports have as yet been
price of one ounce of pure gold in
by the C.C.F.; and the Progres¬
submitted.
The deliberations of dexes; (4) exchange rates and ex¬
sive Conservative platform shows
the basic composite unit should
:
II. Commission I will undoubtedly change controls./<
even closer resemblance. As far as
CANADIAN STOCKS
be less than the agreed minimum
A separate set of similar data
center
around the policies and
the central bank is concerned, no
of $35 per ounce.
f quotas. There appears to be some is to be filed by central banks and
left wing administration in any
Under the U, S. Silver Purchase
sentiment
for
raising
Russia's the treasuries of the member
country has carried out the social¬
Act as administered by the Treas¬
quota to $1.2 billioils and raising countries. It is apparent that Rus¬
ist doctrine to a greater degree,
America's
subscription
to
the sia; is not yet willing to disclose ury^ any non-enemy foreign sill
as
exemplified by the definite
ver seller can get dollars for silver
fund to $2.75 billions.
Britain's her gold holdings and gold pro¬
A. E. AMES
State' ownership of the Bank of
bv sending the metal here.
But
contribution would then be $1.3 duction or data relating to her
Canada. The great Canadian NaINCORPORATED
Mexico's proposal would enable
j
billions and China's $0.55 billions. foreign trade position. One teational
Railway system and the
that country to get American dol¬
The uncertainty regarding the son behind Russia's secretiveness
Trans-Canadp Air Lines, which
TWO WALL STREET
lars, and still keeb its silver at
interpretation of the position of is that she views gold as good only
will probably have the monopoly
home.
Mexico's plan, in effect,,
gold in the operations of the for the purpose of acquiring for¬
NEW YORK 5, N, Y.
of the national airways, are simi¬
would make all members' cur¬
Monetary Fund has not yet been eign materials, which she will
larly controlled.
rencies monetize all silver offered!
removed, particularly the question need in large amounts after the
RECTOR 2-7231
NY-1-1045
Hydro-electric power installa¬
However, these efforts for the
war,
and
that these materials
as to whether a member country
tions throughout the country, even
will be compelled to buy or sell could be more easily acquired by monetization of silver are receiv¬
in the supposedly more conserva¬
gold in exchange for its own cur¬ not using the machinery of the ing a cool reception. It is firmly
tive eastern provinces, are pub¬
opposed by the British delegates!
The apparent British un¬ Fund.
idea that the left sNving in'Cariada rency.
licly owned.
In the field of fi¬
,}
Harry D. White, spokesman of Some members of the American,
has just begun-and that the C.C.F. willingness to clarify its future
nance the Liberal Government is
have
privately
re¬
policy of accepting gold from the the U. S. delegation, though denv- delegation
also carrying out the Socialistic version will be adopted by the
Fund in the event sterling ever /■!■'■'''I'llyl;;! •'. ing vigorously marked that all that, can be ex- Canadian, people. A development
objective of lower interest rates,
*
'
*?
that the gold pected to come out of the silver
should become scarce has greatly
of more transcending/importance
but here it has not been so con¬
a* Fort Knox agitation is some sort of a -'favor¬
some
important . non- 5
is the, impending .Dominion-Pro¬ surprised
sistent, and therein lies its oppor¬
gesture" from the United
may become able
British delegates. This far-reach¬
vincial
conference
which
can
tunity
completely to steal the
worthless, em¬ States, notwithstanding the indif¬
bring about an amendment of the ing and controversial point affects
C.C.F. thunder.
ference or opposition of all other
phasized the
the whole post-war status of gold.
Canadian
constitution and if
it'
fact that credit silver using countries, !, e., India!
As previously mentioned, the
When the point was initially raised
should result in a satisfactory set¬
balances in the Iran, etc.
i!..-! ;■/.
growth of the C.C.F. in the
at a committee meeting, it was
tlement of the grievances of the
^'4 v
Fund will give
western
As to the attitude of the Amer¬
provinces
has
been
western provinces, the political ef¬ agreed to discuss it only infor¬
the United
fostered by their long-standing
ican
delegation at this writing
mally. Thus, it may be assumed
fect could be decidedly beneficial
States
the they privately indicate the inten¬
that there was fear that a formal
grievance that the Federal Gov¬
to the Liberal Government.
ernment left them with a bur¬
|1 / same com- tion to yield to silver-bloc de¬
discussion, recorded in the official
With regard to the market for
den of debt incurred for Relief
<pi ' mand over mands to the extent of incorpora¬
minutes, would bring into the
the past week, there was again a
/< 'J
purposes during the depression
f or eign ex- tion in the final monetary-fund,
open the chasm between the Brit¬
state of ljstlessness as a result of
change as gold plan a mention or recognition of
ish and the American views with
years of the early thirties which
the War Loan drive and the forth¬
they claim should have been
reference to the future status of
fi
exports. This the monetary status of silver in
F
coming elections in Alberta and
has
led
one
considered a national obligation.
some manner that will be "quite
gold,
There is, however, some
There vyas little, change
Quebec.
foreign dele¬ harmless" and "at most a ges¬
Events are now quickly moving
slight optimism over the likeli¬
in prices hut some interest was
gate to state ture."
towards a solution of this prob¬
hood of an agreement among U. S.,
One may infer that silver
displayed in the Alberta issues on
the monetary advocates in
lem. Political necessity compels
British, Russian and other dele¬
Congress, notwith¬
persistent rumors that efforts were
fund
is
"as standing the recent endorsement
the Liberal Government, which
gates making acceptance of gold
Harry D. White
being made to refund the debt of
good -'as
the by 25 senators of the bimetallism
in any case has worked untir¬
from the fund compulsory.
this province before the elections.
ingly on this problem, to make
Considering the campaign of Mr. Francis H.
Under Russian chairmanship, a goia standard."
Whether or not these ..reports .are
still
more
urgent
efforts
to
committee on July 5 heard the strong possibility that dollar cur¬ Brownell, state they would be ap¬
substantiated, there is little doubt,
bring this matter to a satisfac¬
rency initially subscribed to the
peased by a "gesture."
/
as frequently mentioned, that this
Fund
will
be
soon
exhausted,
tory conclusion.
It is worth while recalling what
problem will be settled before we quiet but there was a burst of ac¬ there arises the question whether
a silver "gesture" in 1933 has cost.
Therefore, those interested in
tivity
in gold shares and the Reserve banks under! present laws
«
the Canadian situation would do enter the post-war period.
At the world conference in Lon¬
Canadian dollar in the "free mar¬ would be permitted to lend dollars
The .internal bond market was
well to be less obsessed with the
don that year, Senator Key Pittket" firmed to 9%%. Current re¬
to. the Fund. Moreover, Congress man. of Nevada,, one of our dele¬
ports continue to confirm earlier must decide whether .bur gold
gates, worked continuously to get
predictions that after the war dis¬ subscription to the Fund is to be
We offer:
the conference to take some ac¬
coveries of gold and other pre¬ considered as still comprising a
tion to improve the price of sil¬
cious
metals
in
the
Canadian part of the nation's gold stock.
$100,000
ver.
All that he could get an in¬
North West wjll attain spectacular
The post-war status of silver is
different group of 64 nations to
Province of New Brunswick
proportions.
another "sore spot" in the delib¬
do was to approve a resolution,
Turning to future market devel¬ erations of the conference. I have
adopted by a subcommissiori,
2y4s, due April 15,1948
opments, much will depend on the received information that during
suggesting that the countries most
a
meeting of Committee 2 of
results of the elections in Alberta
Payable in U. S. and
concerned with silver get together
Canadian funds
Commission I, dealing /with the
and Quebec and in the meantime
and work out their problem.
In
Priced to yield 2.35%
of the j International other
operators are likely to remain on operations
words, the resolution meant
the side-lines. As in the case of Monetary Fund, thb delegate of
rency
Conference Multiply
in
currency,
,
Wood, Gundy & Co.
Canadian Securities 11III
CANADIAN BONDS
!
,
.
.
& CO.
,
s
.
■
r
■
Taylor, Deale
&
Company
WHitekall 3-1874
by the Peru
Mexico,
favor the party which is
best organized. In Alberta, it ap¬
representative, proposed
ly
64 WALL STREET, NEW YORK 5
seconded
Saskatchewan, the voting is like¬
to
pears that the Social Credit party
has this advantage and in Quebec,
the Liberals.
the fol¬
lowing additional clause: :
"Apart from the
vided
under
facilities pro¬
Section
Article-HI,
that the conference did
to
be
bothered
not want
with the
subject.
regarded
the caption of the
How the resolution was
is indicated by
news
report of it in the New York
"Times" of July 9,
1933: "Saving
Volume
THE COMMERCIAL
Number 4298
160
of Faces Is Seen in Action of Con¬
■;*"
ference.'*
'•
■<
& FINANCIAL CHRONICLE
trial State like
Dewey 'Inevitable iatT For U. $., Says Mrs. Lace
viewed
was
a mean¬
as
"gesture," in December,
1933, President Roosevelt by pro¬
clamation
opened the mints to
newly-mined domestic silver at
a high premium above the market
price, giving as his reason for so
doing that it was "to carry out
ingless
of
sider
Connecticut,
July 11 to the New York "HeraldsTribune" by a staff correspondent. police force, with a reminder that
governments
that
adopted
the
Mrs. Luce on that date conferred Mr. Dewey in his press confer¬
resolution." Actually, a resolution
in Albany with Gov. Thomas E. ence at Chicago placed himself on
was
no
"understanding" at all,
record as
being against such a
'unless among the silver interests Dewey, Republican Presidential
candidate, in company with i the police force.
and
members
of
the
Congress
members of the Republican Con¬
"Well," she asked in return, "is
playing their game.
'■<?. .
;
gressional delegation from Con¬ any other nation in favor of such
The 1933 proclamation in turn
necticut.
The remarks by Mrs. a force?"
whetted the appetite of silver sell¬
Luce were her sole comment on
Explaining the Republican view
ers and speculators. Although the
the President, and the other mem¬ she said "force" would mean the
President
through a statement
bers withheld comment, said the combined efforts of Great Britain,
made in the Senate by Senator
special advices to the "Herald China, Russia and the United
Robinson
revealed
he
had
Tribune," from which we also States to prevent the rise of ag¬
thought to appease the silver bloc
quote:
i
V^ *" gressor nations.
with his proclamation, he had only
When Mr. Dewey was informed
"Why wouldn't that mean a
thrown fuel on the burning de¬
of
the
Roosevelt
announcement combined military force with an
sire for broader silver-purchase
earlier in the day he said he had independent command?" she was
legislation. The silver speculators, "no comment."
asked.
She
replied:' "Not any
Who wanted their holding nation¬
-Of
her
Nobody
impressions
of
Mr. more than there is now.
alized
by the Government,
un¬
Dewey she said: "I have not met is for that, including Mr. Roose¬
der
the leadership of Father
such a
capable, far-sighted and velt, and the other Allied nations
Coughlin and his weekly Sunday shrewd
The force
politican since the' last are not for it, either,
"discourses" on silver, demanded
used by collaboration
time I had a meal with Mr. Roose¬ would be
legislation.
The
House coinage velt. I was -enormously impressed
among- the
nations within the
'committee, chairmaned by Cong. with Mr.
Dewey.
I had met him framework of an international or¬
Andrew Somers of New York—
before but never had such an op¬ ganization."
who
is now
at Bretton Woods,
portunity fqr full discussion with
"Naturally," she went on, "this
where he creates "the impression
him as now.
the understanding between the 66
—
,
.
,
harm in bimetal¬
no
will
nation
She
asked
was
if she brought
out
two silverany tidings to Mr. Dewey
from
purchase bills. One of these, that Wendell L. Willkie, 1940 Presi¬
of Congressman
Martin Dies of dential candidate.
She replied
Texas, became eventually the Sil¬ that Mr. Willkie wasx not. dis¬
lism—reported
Apparently
rise
to
itself.
defend
every one
has in mind
this mo¬
League of
that what is projected at
is
ment
Council
a
or
Mr.
continued
to
access
talked
the
about
Brownell.
Mr.
the first State
has
Dewey
con¬
Mr. Rowell told Mr. Dewey
tion.
he
would
Massachusetts in
carry
the November election.
"We'll
get out and work, and
it," Mr. Rowell told re¬
porters, after seeing Mr. Dewey.
He said he hoped the Presidential
we'll
do
candidate would make
one
of his
major campaign speeches in Mas¬
but said no decision
today's conferences.
sachusetts,
made at
was
us
Public National Attractive
to
give Governor Dewey assurance
that Connecticut will go Repub¬
Stock
lican.'?
of
National
Public
the
Bank and Trust Company
if
Asked
they
of New
interesting possibili¬
ties for investment, according to
a
memorandum issued by C. E.
such
discussed
in connection
matters
with
in
minds,
of
achieved
cam¬
which
offers
York
paign policy, he said: "Not nearly
so much as that, but more as the
basis for a general over-all meet¬
ing
was
ferred with here since his nomina¬
general
It pleased
He
Chairman
of the wholehearted co¬
operation of
the Congressional
delegation in Connecticut in its
enthusiastic support of our con¬
nominees.
Meins,
with
ters
program
vention
accom¬
L.
discussed organization mat¬
Mr.
Dewey and Mr.
man,
revenue.
"We
was
former Massachusetts State Chair¬
of
sources
Rowell, who
by
Carroll
panied
of incentives to business, not
only for the advantage of em¬
ployee groups, but also from the
standpoint of assisting the Fed¬
eral Treasury to have adequate
—
sees
with
trade
discussed
countries;
up
■
that he
over night and
Rowell, Massachu¬
setts Republican State Chairman.
with George B.
the development
of
a
strong
domestic economy
Comment to the effect that President Roosevelt "may be the in¬
which we hope will be an ade¬
dispensable man for the Democratic party, but Mr. Dewey is the quate balance for the various ele¬
inevitable man for the U. S. A.," came from Representative Clare ments of our
economy.
We talked
Booth Luce of Connecticut, on July 11, incident to the announcement about
taxation, both on the indi¬
that President Roosevelt would accept the nomination for a fourth vidual and business
levels, having
term. The remarks of Mrs. Luce were indicated in Albany advices,
in mind particularly the opening
other
who remained
man,
con¬
prime importance,
also
"He
Although everywhere the silver
resolution
187
Unterberg & Company, 61 Broad¬
way, New York City.
Copies of
this memorandum outlining
the
we
mutuality of under¬
reference to those
problems."
He said
world cooperation was discussed
and
"particularly our complete
subscription to the foreign-policy
plank of the Republican plat¬
situation may be had upon
form."
is tax free i»
a
from C. E. Unterberg &
standing with
the
In
request
Co.
"
other
and
'' "
'■■■■iMIlMW—»
^
'
Attractive Situation
H. H. Robeitson Company
an
offers
(the issue
Pennsylvania), ac¬
attractive situation
cording to a* interesting memo¬
being
distributed
by
Buckley Brothers,
1529 Walnut
delegation besides Mrs.
randum
Luce and Mr. Danaher were Rep¬
Nations, call it what you will—a
League with more power in the
resentatives
R a n u 1 f
Compton,
John D. McWilliams, Beleslaus J. St., Philadelphia, Pa., members of
Then, when asked what hands of those nations which are
the New York and Philadelphia
Monkiewicz and Joseph E. Talbot.
:'/■ Even so, the silver bloc were
she thought Mr. Willkie would do
Stock Exchanges.
Copies of this
strong enough to bear the burden
not appeased, but high-pressured
Mr. Dewey also conferred this
in the campaign, she replied: "I of the
responsibility."
v
memorandum may be had upon
the
Administration
into buying
afternoon with Herbert Brownell.
think
Mr'. Willkie will do the'
She was asked if such views
silver on such a gargantuan scale
request from Buckley Brothers.
right thing. I don't know because I coincided with the viewpoint of Jr., Republican National Chair¬
that the coins constitutig the cir¬
haven't talkpd with him for some
Col. R. R, McCormick, isolation¬
culating medium in China and time about political matters.
I ist
published of "The Chicago
elsewhere
were
drawn
to
the
think he will support the Repub¬
Tribune."
She replied that she
.melting pot for sale to the United lican party."
had never spoken for Col. McCorStates, with consequent economic
Mrs. Luce said that Governor
i
mick and didn't propose to do so
disturbance that caused the Chi¬
Dewey
"brought a remarkably
"he has an organ of
nese Government to lodge
a se¬ fresh mind" to the problems under now; that
?elf-express7'on which he will use
ries of protests with the American
Fifth Ave. at 44th St.
Madison Ave. at 60th Su
discussion at today's conference.
in his own time."
Government. Other countries, too,
Matters
actually discussed with
London: 11 Birchin Lane, E. C. 3; Bush House, W. C. 2
She said Mr. Dewey passqd most
experienced consequent monetary Mr. Dewey were outlined to re¬
of
his
time >at
the
conference
disturbance and, in all, more than
Condensed Statement of Condition, June 30, 1944
porters by Sen. John A. Danaher,
a dozen countries
were forced to
head of the Connecticut delega¬ trying to arrive at a general phi¬
RESOURCES
losophy of government for the
embargo the exportation of silver tion.
;": •
United States in the years ahead,
Cash on Hand, in Federal Reserve Bank, and
to protect their currency systems
Mrs. Luce-»said Mr. Dewey fa¬
Due from Banks and Bankers
...»•••$
558,247,428.10
from, the
ravages
induced
by vored an international organiza¬ rather than discussing any partic¬
Purchase Act of 1934.
ver
cussed.
Guaranty Trust Company of New York
Broadway
.
.
.
,
American appeasement of
bloc.
ver
the sil¬ tion
.Vv
him
V; In
'the peace and quoted
directly, as using the words
to keep
1939, by further .fanagling,
the Congressional silver bloc ob¬
tained
legislation making :: per¬
"by force if necessary."
She was
asked if she. regarded the use of
petual the subsidy to newly-mined
panding the. foreign policy plank
of the Republican platform.
She replied:
"I was on the committee which
American
silver
launched for
which
had
been
supposedly-limited
a
period by the 1933 proclamation.
the
Now
States
are
ceive
mints, of the United
open indefinitely to re¬
maximum limit.
chase
without
silver
American
The Silver Pur¬
Act, which caused
so
much
those words by Mr.
seemed
that
U. S. Government
or
Loans and Bills Purchased
thing which might be useful
expedient in the campaign.
"He discussed the campaign, as
a.
campaigner,
said.
in
what
as
well
doubt among any of us but
it meant we would join Great
Britain. China and Russia in keep¬
foreign
of aggressor
ment
the silver bloc in Congress, well
organized and skillfully guided, is
as
insatiable
as
ever.
rmal
is
a
trouble¬
Lord Keynes in a for-
one.
statement made before
mission I
Com¬
July 10 reminded his
on
the United King¬
only country among
the represented nations which has
.incurred large-scale war debts to
her allies and associates, but de¬
spite the heavy burdens of the
"war, and the sacrifice of over-seas
^assets, "we do not intend to ask
.audience
dom
is
the
of
of that
She
was
asked
if there was a
"by force if
between
necessary"
and
an
international
that
the
assistance in this matter from the
could
be
used
years
blocked
to
What
existence of
the
mind
India
the
Keynes statement and the
unwillingness of the United States
and
Great Britain to consider the
subject of "blocked balances" fur¬
ther at the
conference, apparently
'was disappointing to India's dele¬
gation.
lief
They
on
"the
international
poses,
use
of silver
and I
use
his
own
words, 'by force
necessary.'"
whenever
and
he
wanted
her
to,
as
committee
members
we
Buildings
,
Other Real Estate
91691626 09
9,962,778.19>
•
.
•
•
•
•
•
...
•
»
•,.»„•
•
•••••
•
•
,
Total Resources
a
looted property and
of ment, which
that
we,
ycu
can
coming from
•
•
•
•
LIABILITIES
•
Total
•
.
•
«"
«
•
•
......
•
»
860,848.20
$3,601,236,269.04
•
.V-
'Mp" ip\
$ 90,000,000.00
170,000,000.00
36,054,427.91
$
Capital Funds
General Contingency Reserve.........
Deposits
.........
33,718,634.52
........
.
.
3,190,800,362.23
.
Deposits.
57,650,000.00
Federal Funds Purchased
Acceptances
Less: Own
.........
$ 3,499,552.88
Acceptances
Held for Investment
ances
Endorser
as
and
•
.
•
.
•
1,880,998.42
•
$
Liability
on
34,820,362.96
$3,157,081,727.71
Treasurer's Checks Outstanding
Total
296,054,427.91
1,618,554,45
Accept¬
Foreign Bills
Foreign Funds Borrowed
•
•
•
•
.
•
Dividend Payable July 1,1944 .
Items in Transit with Foreign
113,589.00
152,550.00
2,700,000.00
Branches and Net Difference in
between Various Of¬
Balances
fices Due to Different Statement
Dates of
Foreign Branches
.
.
743,598.78
Accounts Pavable. Reserve for Ex¬
penses,
Taxes, etc.
.....
16,582,823.70
21,911,115.94
Total Liabilities
........
$3,601,236,269.04
were
pur¬
expressed the be¬ information, and other means
of the fund financial co-operation."
thaLone-tenth
•
silver as a impression of Mr. Dew/ey by say¬
r f
ing, "I have just come from a
monetary
1,659,725.36
Bank
Undivided Profits
join an international or¬
to keep the peace, in
with other nations,
brought into close contact with
second on enemy assets, government problems, one could¬
related mat¬ n't but be struck by Governor
ters and a third to deal with rec¬ Dewey's
facility to turn from
ommendations on economic and topic to topic—such as post-war
employ¬
financial-policy, the exchange of opoortunity, continued
for
9,625,495.27
........
.
ganization
collaboration
fund," said election, she replied with a smile
Sir A, J. Raisman, Chief of In¬ cf confidence, "I think I'll win."
dia's delegation, adding that "In¬
Senator Danaher summed up his
July 10, one
The
Receivable
Real Estate Bonds and Mortgages
Capital
.
•
Surplus Fund
assistance it will
obligations."
•
Accrued Interest and Accounts
agree¬
gen¬
That the problems under con¬ meeting
with Governor Dewey,
give to the sideration by the Conference tend and I was enormously impressed.
.stability and expansion of trade, to expand and- multiply is indi¬ We had nearly three hours of dis¬
"may be expected to improve in¬ cated by the appointment of three cussion.
And to those of use who
directly our ability to meet other additional; ad hoc committees on are on the Federal scene, where as
eral
"
that
of
area
in connection with this
monetary, metal.",
the
in
of
vast
said no such thing as a national
sterling balances.
This appears to her delegates campaign tour by her had been
as more important to India's econ¬
planned.
"I've got campaigning
do in
omy than monetary recognition of to
my own district,"
she
silver.
"Silver is not important said.
Asked if she would win re-
pointed
that
the Fund, by the
be
a
really
dia is not interested in
however,
Credits Granted
Obligations
Acceptances
57,370,003.60
7,800,000.00
16,617,847.40
1,618,554.46
.
"He
a period of
She said she expected to cam¬
liquidate various paign for Mr. Dewey wherever
International Monetary Fund." He
out,
to
was
said,
like would be the but that Mr. Dewey has not dis¬
"dollarization"
of
the
blocked cussed the matter with her.. She
would
Stock of the Federal Reserve Bank
on
2,178,737,312.79
•
758,736,275.67,
&
Other Securities and
over
balances.
*
•
.....
Republican party
and in the nation that this country
if
five
Securities
Public
should
•
mind."
the problem of
balances"
"blocked
some
was
distinction
Aside from the post-war status
of gold and silver,
ber
the rise
nations. Every mem¬
platform committee
she
policy,
seemed
there
And
people in America for
Obligations
Explaining Mr. Dewey's views on
ing down or preventing
of the land.
be kept
great
the
to
the prosperity, decent,
fits of which went mostly
is still the law
she
interested
could
made
as
little,"
more
promises
of
masses
serious disturbance and the bene¬
abroad,
very
"He seemed
useful and
the
platform,.- and
it happy life of the ordinary fellow
to me there was never who gets less than $3,000 a year "
drafted
any
Dewey as ex¬
ular
understand
an indus¬
Securities carried at
powers,
In
89B2,390,024.08 in the above Statement
to secure public moneys as
are
pledged to qualify for fiduciary
required by law, and for other purposes.
previous Statements balances then in General Contingency Reserve were applied to reduce the;
th is Statement the General Contingency Reserve is shown separately.
stated value of assets, while in
This
Statement
includes the
194-4., French Branches as of
and liabilities of the English Branches as of June 26,
October 31, 1942, and Belgian Brunch as of October 31, 1941,;
resources
Member Federal
Deposit Insurance Corporation
which
to be avoided about the role
Blocked Sterling Balances
'
\
"The
k
this
of
members
suffered
have
in
mind,
body and estate from the effort
and exhaustion of war in. ways
differing in kind and in degree.
sacrifices .cannot
be
,
These
weighed
other.
against the
one
Those of
dir
who were most
us
rectly threatened and were never¬
theless able to remain in the fight,
such as- the U. S. S. R. and the
have fought this
"United Kingdom,
on
war
the principle of unlimited
liability and with a more reckless
disregard*1", to
quences
than
more
economic
conse¬
others who were
fortunately placed.
We do
plead guilty to imprudence;
for in the larger field of human
affairs nothing could have-been
not
prudent than hesitation or a
careful counting of the cost,
i
"But as a result there has been
less
equality of financial
sacrifice.
In respect of overseas
assets the end of the war will find
the United Kingdom greatly im¬
inevitably
no
poverished
United
others
and
the
of
considerably en¬
expense.
We make
Nations
riched at
our
complaint of this provided that
situation is accepted
the resulting
for
we
are
it
what
On
is.
grateful
the
to
these
Allies,
particularly to our Indian friends,
put their resources at our
disposal without stint and them¬
selves suffered from privation as
Our effort would have
result.
been
Play."
perhaps
gravely,
critically,
to
expected
be
can
held
whole¬
had
embarrassed
if
The statement of 4he U. S. dele¬
back from helping us so
gation follows:
heartedly and on so great a scale.
"We are all cognizant of the
We
appreciate
the
moderate, importance of the problem of war¬
friendly and realistic statement of time indebtedness so
ably pre¬
the problem which Mr. Shroff has
sented by the delegate of India,
put before you today. Neverthe¬ We are confident that the prob¬
less the settlement of these debts
lem can best be settled directly
must be, in our clear and settled
by the countries concerned, how¬
judgment, a matter between those ever, and we doubt the advisabil¬
directly concerned. When the end
ity of attempting this through
is reached and we can see our way
the International Monetary Fund,
into the daylight we shall take it
"We must be sure that the work
delay,
without any
honorably what
up
and generously
"But
given.
assistance in this matter from the
International
Monetary
Fund
—
beyond the fact, as the American
delegation has pointed out, that
the existence of the Fund and the
general assistance it will give to
the
stability and expansion of
trade may be expected to improve
indirectly
our
ability
to meet
other obligations.
We concur en¬
tirely in the'view which has just
been expressed by the American
that
delegation
of
the Fund is not
with war
technical
do not intend either
for,
or
avail ourselves
to
of, any special treatment from the
Fund, it appears to the United
Kingdom
delegation
that this
amendment could be of no prac¬
therefore better
discarded if misunderstanding is
tical effect; and is
this
the
of
principle
led
experts to recommend
International Monetary
the
that
problems if it confines its work to
the specialized tasks for which it
is designed.
"yv'V 'V-,?•'
HARRIS
TRUST
BUILDING,
>•;:.v'-.0'
V
Hand and Due from
of
opment
of
environment
an
orderly and stable exchanges free
from
restrictions
that
hamper
world trade—an environment in
of wartime in¬
amicably set¬
which the problem
debtedness
directly
countries
the
by
be
can
V
Fund
contribute
can
a
solution
be
can
sure
of do¬
To ask more is to impose on
the Fund the danger of failing to
United
delegation
States
to
India.
United
The
delegation hopes that the
alternatives proposed by the dele¬
Treasury Bills and Certificates. 115,346,999.51
U. S. Government Bonds and Notes__
107,617,091.20
33,560,180.98
Municipal Securities
Other Bonds and Securities—
that the Fund
nroblem
U. S.
State and
the problem of
It is all
of
indebtedness.
wartime
States
Banks__$110,650,197.96
36,324,096.60
—
ately situated
Na¬
Associated
and
that unfortun¬
be
may
politically
as wq are
guns" in the
accumulated credit balances dur¬ Conference may not attach great
ing the war.
In explaining par¬ importance to a country like In¬
ticularly the situation of India, I dia. But I am-bound to point out
also made it clear that consider¬ this, if you are prepared to ignore
ing the very close commercial ties a country of the size of India,
the
between
countries,
two
is
it
than likely that a very large
more
proportion of the sterling balances
accumulated
have
we
London
in
period of years will be used
both categories
capital goods
from the United Kingdom. At the
over a
in buying goods of
consumer
and
—
time, I pointed out that if
same
going
are
we
realists,
be
to
we
must consider the actual situation
in the United Kingdom today
and
post-war1 period. I refer,
instance, to the unfortunate
the
valuable
of
loss
foreign
invest¬
perhaps
with
four
pop¬
though
not fully developed, yet
incomparable to the natural
resourees of. some of the "biggest
powers on this earth, we cannot
be expected to make our full con¬
tribution to the strengthening of
not
the
of
resources
Fund.
the
Sup¬
don't accept our position*
you are placing us in a: .situation
which I may compare to the posi¬
tion of a man with a million
pose you
dollar balance in the bank but not
sufficient cash to pay
his taxi fare*
position you put us in.
That is the
by
million
hundred
ulation and with natural resources
the United Kingdom
and, I may add, the necessity to¬
day of rehabilitation of some of
the industries of the United King-
ments
"big
the
You want to facilitate the expan¬
sion
balanced
and
ternational
growth of in¬
You inciden¬
trade.
Mr. Morgenthau in
its sympathetic under¬
standing of the importance of this
on
It
being borne by the population of
the United Kingdom during the
last four and a half years.
All
"The
Cash
United
the
tions.'
arising out of
confident its op¬
erations will facilitate the devel¬
indebtedness
the war, we are
expresses
/:;ry
■:;•
Fund, when it
was set up, to take over straight
away in one lump sum the entire
of
.
Resources
national Monetary
countries of the world' known as
tally want to build up a high level
Mon¬
perform the other and more spe¬
cific tasks for which it is intended
and for which it is suited.
1944
this
on
ducing at least some of the tre¬
mendous
privations
which
are
International
the
ing.
:
CHICAGO
Statement of Condition
June 30,
Bank
strong feeling in our country
question. I am sure that
sponsors of this
Conference
seeking collaboration from all
very
Kingdom and the necessity of re¬
mate
1882—Incorporated 1907
and
/ Fund cannot deal directly
"While
"The
N. W. Harris & Co.
minds
intended the Inters
never
we
for
ing out of the war. The Fund can
contribute most effectively to the
solution of international monetary
good deal in this way to the ulti¬
as
that
or
concerned.
Organized
our
are
in
of relief or reconstruction
for meeting indebtedness aris¬
tled
Harris Trust and Savings
in
clear
the
poses;
with
ask
with
Fund should not be used for pur¬
indebtedness.
to
more
it
Recognition
undertake.
etary
we
made
not
burdening
by
fundamental
intended to deal directly
"Since
is
Fund
the
difficult
tasks which it cannot successfully
to ask
intend
not
do
we
was
to settle
honorably
*
solutely
ings of Committee I, I endeavored
to clear up that misunderstanding
y
.
fore this Conference, we were ab¬
when I spoke at one of the meet¬
United States' Position
they
contrary,
who
a
Fund
the
(Continued from page 170)
,
various
alliance
ho
Thursday, July 13, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
188
gate of India will not be pressed.
We are confident that the prob¬
indebtedness can
of wartime
lem
settled
be
best
countries concerned in
mutual
by the
spirit of
directly
a
understanding."
India's Stand
tend to reduce
these factors will
employment and real income
throughout the world as a whole;
his very fine
opening address said "Poverty is
a
menace wherever it is found."
fulfill the main
Do you expect to
of this Fund if you
large countries to be fes¬
with this sort of poverty?
United King¬
dom to give us the goods which
we
badly need.
That being so,
our
position is this: Considering
the primary objective of the In¬
ternational Monetary Fund, name¬
objectives
ly, the facilitation and expansion
of international trade and, sec¬
body here needs the collaboration
the capacity of the
ondly,
high level of employment
a
real income—we attach very
and
great importance to the definition
of the primary objective — and
taking into consideration the in¬
ability of the United Kingdom at
a fairly long period from
now onwards to meet the require¬
least for
ments of
mit
that
Conference
situated
country
means
some
multi¬
would be
has to be devised by which
convertibility
lateral
,
Commission to
would like this
question
in a : very
I am sure every¬
face^ this
realistic spirit.
coK
of everybody else, but if that
has
laboration
realistically,
you
obtained
be
to
will make it pos¬
sible for all countries in the world
with
be associated
to
I beg
you.
Commission, to deal very
dispassionately and sympatheti¬
cally with the problem I put be¬
of you,
fore you. Thank you very
much."
a
are is to
international
then
collaboration,
if
we
as
for
enthusiastic
be
tered
I
capital goods, I sub¬
our
this
to
allow"
*
given at least to a certain propor¬
tion of the large balances we have
accumulated in London.
I fail to
Max Jacqsin, Jr. Nsisted
Asst. V.-P. 8f HYSE
Emil
Schram,
President of the
Exchange,
Stock
York
New
an¬
July 10 the appoint¬
nounced
on
ment, of
Max
Jacquin, Jr.,
an
as
of the Assistant Vice-President of the
He has been an As¬
United States
delegate that the Exchange.
International Monetary Fund sistant Secretary since June, 1939,
would be overloaded if this item and has been with the Exchange
in various capacities for 15 years.
was included among the purposes
understand
argument
the
position taken by Lord of the Fund. We are here met at
the instance of the sponsors of this
Keynes and the U. S. delegation
Conference to tackle a very big
was
opposed by A. D. Shroff,
I ask, are we realistic
member of the Indian delegation, problem.
who made the following statement enough in tackling this problem
before the committee to which the without adequate resources in the
The
Loans and Discounts
_______
—
104,233,352.00
540,000.00
Federal Reserve Bank Stock
Customers'
Liability
on
Acceptances
and Letters of Credit
213,200.35
.
Accrued Interest and Other Resources
1,698,665.45
"Mr.
$510,183,784.05
Total..
Liabilities
outset
I should like to have your ruling
on one matter which would prob¬
ably facilitate discussion and dis¬
posal of this item. In Committee
I of Commission I, we discussed
on
two separate occasions .Alter¬
Chairman,
$
Capital
Surplus
6,000,000.00
these discussions, the Indian dele¬
which has not yet been discussed
$ 20,744,136.51
2,744,136.51
Contingencies,
Taxes,
Alternative
9,286,518.24
:
213,200.35
Acceptances and Letters of Credit—
Time
your
ternative
for
Interest, Etc.
Demand
I. I suggest, Sir,
consideration that Al¬
G, Alternative H and
Committee
by
for
Reserves
Deposits —$452,824,362.42
479,939,928.95
K
"I
will
$97,000,000
State
and
of
U.
—$510,183,784.05
S.
Government
delegation
To
of
Trust
and
to
qualify
for
which
facilitate
reads
the
as
multi¬
reasonable
a
portion of the foreign credit bal¬
ances
accumulated amongst the
member countries during the war
to promote
on
the
re¬
of the Fund.
we
balances.
I,
alternatives
on
inclusion
start
both
opposed
the
when
,
we
of
ground
this
of
will overload the Fund.
very
cular
Riverside Cement class A
on
which the firm believes is an out¬
standing cement stock with a div¬
;
:
idend arrearage.
.
Attractive Situations
Laclede-Christy Clay Products
Co. common, which is listed on
the
St. Louis
Stock Exchange,
offers an interesting situation, ac¬
of
Bartgis Bros, and Federal Screw
lateral settlement of a portion
balances.
our
item
From the
placed
our
alternatives for consideration be¬
the
If
Conference
prepared to accept the principle
of our amendment, then I see no
is
Works
out
To
out in
set
amendment
our
secure
are
multilateral con¬
vertibility for a reasonable por¬
tion of our balances and, secondly,
to
devise'
a
formula
strain
of the Fund.
undue
so
as
not to
the re¬
I think, Sir,
on
talking among friends, it may
as
well
this
to
speak
question.
guised
from
frankly
be
about
We have not dis¬
the
Conference
the
obtained
be
may
from
Rails Offer Interest
amend¬
The purposes
met.
be
in
our
memorandum issued
a
Herzog & Co. upon request.
difficulty at all in evolving a con¬
crete formula by which the two
sources
the
cular may be had
Co. upon request
What I ask for is a multi¬
a
whale.
place
that
Post Office Square,
Copies of this cir¬
from Lerner &
and also a cir¬
10
Co.,
Boston, Mass.
by Herzog & Co., 170 Broadway,
New York City.
Copies of this
memorandum and also circular on
United
these
in my judgment
look rather like
jellyfish to tackle a
&
cording to
sending
two principal objections were
raised.
The
delegate from the
States
The resources
a
the problem are
two:
discussed Al¬
ternatives G and H in Committee
mulated
sources
of Federal Deposit Insurance Corporation
Fund?
available to the Fund for tackling
fiduciary
powers,
not
ask whether it would be
set
$78,048,-
as
As I
we
are
And I
advisable
to ignore the existence of these
balances? My answer to the dele¬
gation of the United States is that
you will not unduly overload the
fund if you create machinery for
multilateral convertibility for a
reasonable portion of these accu¬
sort of rival to the
placing undue strain
secure
so
I,
simultaneously
with the estab¬
lishment of the Fund creating a
and $13,993,629.42
$300,000
"At the time
Member
in Committee
purposes
ment cSn
and
Municipal Securities are pledged to
Deposits,
said
is
Cement
Portland
low-priced stock in an industry
with a bright future and offers in¬
teresting possibilities, according
to a circular prepared by Lerner
inadequate and
place before Com¬
mission I Alternative K tabled by
follows:
billions of ac¬
are
cumulated balances abroad.
the purposes re¬
ferred to in Subdivision 2, without
obligations
739.41 of United States Government Deposits
of
dis¬
now
lateral settlement of
Total
be
all
may
cussed together.
our
27,115,566,53
Deposits
Alternative K,
gation has tabled
12,000,000.00
—
Undivided Profits-
the
at
As the result of
natives G and H.
There
Fund?
problem is referred:
Bright Possibilities
Giant
Gary
Railways
Memphis
ferred
offer
and
pre¬
interesting'possibili¬
according
ties,
common
Railway
Street
to
memoranda
issued by Bittner & Co., 80 Broad
Street,
of
New
these
are
York
City.
Copies-
memoranda, into'which
incorporated
news
of recent
the
situations
developments
in
and
may
earnings,
be had
Bittner & Co. on request.
from
Volume
Proposed By
Minneapolis-Si. Paul Group
earned
A
-
After
In
July 10 a post-war federal tax
who
means:
a
heavy
'relatively
come tax rates are
the
states:
k
.
r
un¬
time to attempt
to follow ingenious new theories
certainties, is
for
no
which
taxation
Federal
will
undetermined
repercussions
on
the economy and pile addi¬
tional uncertainties upon business
plan. The main object of the plan
of venture capital and the stimulation of pro*management.
of achieving the goal of providing jobs for all
It is believed that
herein set forth
provide each individual the maxi¬
mum opportunity possible to make
the
ate adoption of post-war tax pol¬
proposals that 4
corporate «in*- icies, in order that the American
not so:harmful
private "enterprise system
as
are
heavy, individual income
tax rates, for the reason that the
latter shut off the source of all
the
to
.>s'
."It is telt that the post-war
period,'with its innumerable
willing ^to 'worki 1 The®-
back of the
thesis
*
as
are
report,
its
Cities group
...
is the encouragement
•duction
the
the
of
by
concluding
Twin
financiers, tax lawyers and other business and professional men of have
the Twin Cities of Minneapolis and St. Paul, Minnesota made public
on
part
received
when
as
stockholders.
study, a group of. industrialists,
period-of 14 months
a
earnings
corporate
and only
a
dividends
Exclu¬
sion Of 40% Of Dividends Paid From Estimates Of Cor¬
porate Gross Income—Recommends A 5% Sales Tax
*
the
ing
Relatively Heavy Corporation Levies, And An
Of
ABA Staff Presents Gift To Paul F, Gadman
tion and the'stockholders by tax¬
Personal Income Taxes, Maintenance
Calls For Lower
the corpora¬
between
burden
tax
Post-War Taxation Plan
189
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4298
160
enterprise*
free
proposals
his
system may plan
which
ment
on
possibility of venturing capital by
vital
LULLyL'
Accordingly, the -plan advocates
that, after repeal of the excess
profits tax, the current high nor¬
in employment and income
are
necessary
if this
coun¬
try is to continue in the post-war
the progress which has
virtually full employ¬
under that system as being period
made
to sustain the high level of
phasis
in¬
to- further
contribution
creases
intelligently and successfully, the
Twin Cities plan lays heavy em¬
it
the
greatest
nation
on
economy
individuals."
ud'
;
ranging up
mal and surtax rates,
vail if
the
tions, and that substantial reduc¬
tions be effected
in the surtax
rates on individual incomes.
In¬
centive for investments in cor¬
fixed charges are to
"The
business
•
course
To
provided, the plan contends.
such
incentive, and
furnish
step \ toward : eliminating
the
inequitable burden and
allevi¬
ating the incentive-destroying ef¬
fects of the present - method of
a
taxing corporate earnings, once at
and again at
distributed to
full rates as earned,
when
full: rates
Stockholders, the plan- offers a
new method of taxing dividends,
that 40% of divi¬
by
individual
stockholders from domestic corpo¬
y.-'It
proposes
dends
received
rations
be
.
from
excluded
gross
and that the individual
the tax called for in his
bracket on the 60% reported.
income,
then pay
own
The
-
plan estimates:
debt which
•
national
A
$300 billion, interest on
which would be some $6 billion
•
or approximately as
much as was spent, on the aver¬
age, for the conduct of the enV tire Federal Government in the
high-cost, pre-war decade. •;
A post-war Federal budget of
$18 billion, without any provi¬
*
annually,
;
*
of
means
as
a
equal to three times the aver¬
annual expenditures and
L some five times the average ani nual tax collections during the
.
age
1931 through 1940.
years
tax
total
A
$27
bill of some
billion, the cost of State and local
governments
being
estimated at $9 billion in addition
the
to
billion Federal
$18
ex-
penditures.
,
national
A
of
income
$120
billion, based
on
1942 price
levels, will be required in order
to avoid substantial unemploy:
ment.
This
f
crease
of
an inthan one-third
over
the
highest previous
peacetime national income of
1929; is three times as great as
the national income of 1932, the
v
..
'
represents
more
twice
than
more
year,
and
the average
lowest
depression's
national income for the ten pre.
.war
years,
which
was
$59.1 bil¬
lion.
As
well
a
stimulus to
investment,
as
the ground
that there
justification for taxing gains
and
disallowing
losses,
certain
changes are recommended in the
present "capital gains" provisions
is
as
on
no
of the Internal Revenue Act.
that
urged
the
same
gains
are
losses
basis
as
be
It is
allowed
that
on
on
which
taxed, and that the rate
be reduced, both as to individuals
and corporations. Capital gains, it
is further recommended,
defined
enue
as
provided
Act of 1942,
should be
by the Rev¬
except that
as¬
months or less
would not be classified as capital
sets
held
for
six
asmfs.
Stressing the need for immedi¬
stock
internal
are
•
;
value
ex¬
as well as the
imposed for filing
consolidated corporate returns, to¬
profits taxes,
2%
penalty
gether with the tax on inter¬
corporate dividends.
Permit net operating loss de¬
ductions to be carried forward for
each
of
the
five
succeeding
Dr. Harold
and
executive
senting
.
profits, capi¬
declared
cess
the
the
by
,
excess
and
recom¬
revenue
made
plan:
Repeal the
which
at
Cities
tal
speedy
effective
become
tax¬
a
Stonier, director of The Graduate School of Banking
of the American Bankers Association, pre¬
manager
silver tray on behalf of the ABA's staff to Paul F. Cadman,
June 30 to become director of research and assistant
who resigned on
to
Henry Kaiser, noted industrialist and shipbuilder.
Dr. Cadman was economist for the American Bankers Associa¬
tion from January,
1940 until June 30, of this year. He was also a
of The Graduate School of Banking and one
member of the faculty
of its seminar lecturers.
other current tax payment
capital asset held for more than
six months.
If a net loss results
and
sions,
provi¬
effort to
make every
from such dispositions and con¬ improve them.
'piece¬
able years.
For the two taxable
Make any increase in tax rates
versions such net loss is deduct¬
of
taxes
years following the repeal of the
effective for the following taxable
V should be tolerated, as this pro¬
ible from ordinary income.
: y
excess
profits tax, permit net
cedure
prevents proper longA retail sales tax of 5%, with no year, and never retroactive, with
operating
losses
to
be carried
term planning by business."
relief amendments made optional
•
y;.
back for each of the two preced¬ exemptions.
Examples of how the present
;.
1
, •
Retain
the
withholding
and with the taxpayer.
ing years, or forward, at the op¬
Federal tax policy and high pro¬
tion of the taxpayer. .
gressive tax rates on individual
Retain for two years the unused
incomes cause the incentive for
excess profits credit provisions of
equity investment in corporations the excess
profits act, after repeal
to "decline to the vanishing point
of the
excess
profits act itself,
as
the capacity of the individual
and compute the unused excess
to make investments increases,"
profits credit just as though the
are contained in the Twin Cities
law
were
in effect,
permitting
meal',
adjustment
,
(
.
;V
plan.
Sanity In Expenditures
Sanity
much
in
Continental Illinois
such credit to be carried back for
the
is as
the tax program
expenditures
part of
a
two
preceding taxable years.
reporting capital gains and
In
losses, include 100% for corpora¬
levying itself, and tions, and 50% for other tax¬
therefore, expenditures must be payers.
kept to the minimum consistent
Allow as an alternate tax. on
with good government.
Waste— corporations the following:
for non-essential services, or over¬
(1) Net Capital Gain. Tax com¬
manning, or improper work meth¬ puted on the net income (exclud¬
ods, or. unnecessary public \yorks ing capital gains) at the regular
the
is
as
nation's
economy.
Proper
Tax
Planning
must
revenue
be
adequate
government. This
necessarily mean that
never be a deficit at
to meet cost of
does
not
there
the
must
end
mean,
National Bank
tax
improvements—is an unfair bur¬
den upon the taxpayers and upon
die
unemploy¬
approximately
is
one
changes
Twin
cessation of hostilities. No
relieving
This
ment.
work
creating
for
sion
would
;'
,
may
reach
*
-
as
a
for
code
and
orderly resumption of peacetime
operations
and
employment,
would be the ^enactment into
laws, as soon as possible, of a
tax program in its entirety that
risk ventures, held to be
job-providing
backbone of
national economy, must be
the
mendations
be overcome.
and
in
result
the following
mentioned,
na¬
greatest
incentive
to
to
plan its post-war
.now,
would
>.
porate
the
post-war
unprecedented
-
-
.In addition to those previously
tional debt and other war-fostered
40%, be retained for corpora¬
to
earth."
that will have to pre¬
the obstacles presented by
of
fiscal year.
a
It does
however, that over a short
plus' 123/2% of the capital
if, and only if, this tax is
less than the tax computed on the
entire net income (including the
OF CHICAGO
rates
gains
capital gains) at the regular rates.
(2) Net Capital Losses.
Tax
computed on the net income (ex¬
cluding capital losses) at the reg¬
ular rates less \%Vz% of the cap¬
ital losses
Statement
ple that all surpluses will be used
for debt retirement in the imme¬
post-war period, and must
also give assurance that as soon
diate
the
Direct and Fully
Loans and
at the regular rates, plus
of the capital gains if, and
79,635,008.52
367,077,469.58
Income Accrued but
an
effective rate
of
121/2%).
which, must be contem¬ losses) at the regular rates (which
is an effective rate of 12V2%).
plated when capital is ventured,
must be treated in a fair manner.
The existing methods of treat¬
Distributing
ing gains and losses from compul¬
The Burden
—..
...
of
a
.V...............
enterprise, and places too great used in the trade or business"
If the recog¬
on the business dollar. would be retained.
When a corporation pays a tax nized gains from such dispositions,
on
its net earnings, the tax is,
realitv,
ers.
a
Revenue
post-war
in plus
tax upon the stockhold¬
requirements in the
period
will call for
a
the ' recognized
gains
$2,320,155,664.36
Deposits.......
Acceptances..........................
Reserve for Taxes, Interest
10,045,921.90
and Expenses
Reserve for Contingencies
the
more
.........
.
257,657.16
60,000,000.00
Capital Stock..
Surplus.
60,000,000.00
...
Undivided Profits
14,219,601.72
..v.,,..
hi eh
tax on
$2,483,461,115.79
United Slates Government obligations and other
at
are
pledged
and for other purposes as
to secure
required
securities carried
public and-trust deposits
or
permitted by law
from
losses
from
such
dispositions and conversions, the
earnings.
The
least
harmful net gain is considered as a gain
method will be to distribute the from the sale or exchange of a
relatively
18,092,633.49
Income Collected but Not Earned.
than six months exceed
recognized
689,637.16
.......
such conversions of property held
for
11,250,000.00
$2,483,461,115.79
present
burden
623,341.20
5,970,871.85
.
method of taxing sory or involuntary conversion
corporate earnings must be allevi¬ and from dispositions of certain
defined
as
"property
ated.
It is unfair and repressive nroperty
The
3,600,000.00
liabilities
made available by not
losses,
...
N
capital must be
taxing the cluding capital losses) at the reg¬
investor so heavily as to preclude ular rates, less 25% of the capital
him from building up surpluses losses if, and only if, this tax is
and investing them in the hope of greater than the tax computed on
sufficient ultimate rewards.
Net the entire net income (less capital
Private venture
Bank
Not Collected
Banking House.........
(2)
Net Capital Losses: Tax
computed on the net income (ex¬
Capital
Obligations,
Customers' Liabilily-on Acceptances—......
gains)
is
Venture
$ 453,066,532.41
Guaranteed...........1,562,236,992.23
Stock in Federal Reserve
the
Private
.....
Securities..................
sufficient
nstituted..
...!
Discounts.............'. i....,—
Other Bonds and
Net Capital Gains: Tax on
25%
Banks
United States Government
the net income (excluding capital
peacetime economy assumes only if, this tax is less than the
form to permit such a tax computed on the entire net
course, a
definite plan for sys¬ income
(including
the
capital
tematic debt retirement will be gains) at the regular rates (which
as
:
Cash and Due from
following:
(1)
of Condition, June jo, 1944
resources
if, and only if, this tax
period of years the income must is greater than the tax computed
balance the outgo. Proper finan¬ on the
entire net income <less
cial and tax planning will make capital losses) at the regular rates.
this possible. The integrity of the
Allow as an alternate tax on
lational debt must be preserved. taxpayers other than corporations
Congress must pledge to the peo¬
Trust Company
and
jifrmbtr tfdtaf Ifrposit tniurdntt Corporation
THE
190
livni
n ^
n
i
*
v
to
V
'
The 5% Rule Is, In Law
And In Fact, A
Dealers* Inc.
Every such mem¬
ber knew, or thought he. knew,
that that rule and every other rule
would stand unchanged and un¬
Rule"
challenged until he had spoken.
knew, or thought he knew,
(Continued from page 171)
amended."
;
He
under of Nov. 9,
and
Thereafter
Director of the association, refer¬
any
that there stood above him
1943, the Chairman of the Board
of
the
and
Governors
the
or
administration
fairs of
of
comma,
of the
affected
•
rule
well
The
1.
subject
of the
the
of
matter
adoption.
Commission's jurisdic¬
tion of and function in the matter.
The
3.
been
oc¬
It
--'v"
/
could
be
ex¬
gullibility; did not
Association's
statutes
(By¬
of
Nov.
com¬
1943,
9,
The Facts
ards"
curities Dealers,
member
Inc. is a volun¬
Oct.
25,
31, 1943.
tary association created pursuant
to
so
the.
ing
authority contained in Section
is
that
clear
a
rule
amended, and
about Sept.
incorporated
was
"5%
I. The
on or
Rule,"
in law and in fact
•
*,
vote.
1, 1936.
II. The grant
Under the statute and under the
of legislative
to the NASD is
provisions of its certificate of'in¬
corporation, the association was
authorized to adopt, and it did
unless
so
called, is
so
rule.
a
power
invalid grant,
an
restricted
as
to
protect
the members of the association.
The Board of Governors had
III.
adopt, appropriate by-laws for the no power to adopt or amend any
regulation of its internal affairs as rule without submission of the
well as rules for the regulation of
proposal to the members for their
dealings between its members and vote.
■
^he investing public. Article III of
IV.
said
rules, entitled "Rules of Fair
Practice," in Section 1, provides
as
follows:
"A
his
;
,
striction
of commercial honor
and just and equitable
ciples of trade."
an
dealer's
prin¬
V. The Securities and Exchange
Commission should by order ab¬
rogate
forthwith
"5% Rule."
the
so-called
,
The affairs of the National As¬
of
Securities
Dealers,
administered by a Board
of Governors elected as provided
in its certificate of incorporation
and by-laws. Under date of Oct.
are
'
.
1
The Rule
sociation
Inc.,
its merits, is
improper re¬
on
member
a
on
freedom of action in his business.
member, in the conduct of
business, shall observe high
standards
rule,
uneconomic and
'■1
,
The
The
:
the
Rules
of
National
Fair
Practice
Association
of
of
Se¬
curities Dealers, Inc.
25, 1943, the Board of Governors
(Article III,
follows on
what might be called "the great¬
then
est and the first
in
office
announced
the
to
membership
Section
1)
speak
as
commandment":
"A
of the association,
that the above quoted rule (Sec¬
tion 1 of Article III) was to be
.interpreted as meaning that,—
member, in the conduct of
his business, shall observe high
standards of
and
just
commercial honor
equitable
ciples of trade."
"It shall be deemed conduct in¬
and
prin¬
consistent with
,
;
A
table
statement of underlying principle
with which no dealer, in fact, no
just and equi¬
principles of trade for a
member to enter into any trans-
action with
customer in
a
prop e r
right-thinking person in any com¬
mercial pursuit, would even think
of
disagreeing. That rule was
duly adopted and was subscribed
any
security at any price not rea¬
sonably related to the current
market price of the security."
c i n a in n at i
Statement
as
high-sounding
and
t
v
ohio
of June 30, 1944
Member Federal Deposit
Member Federal
Insurance Corporation
Cash
and
United
,
Due
States
from BanksBonds
___$69,827,774.59
(Direct
and
Guar-
anteed)
and
and
Banking'
12,820,088.10
345,000.00
,
Liability
$164,005,630.06
62,039,159.87
.
St6ck_____..,.__
Premises Occupied
Customers*
Other
Securities-;j-:j_*__^T^^_„u—
Discounts
'
Federal. Reserve
4,675,000.00
Under Acceptances.—„__i_
Resources
77,206.14
770,160.38
TOTAL '
$244,732,244.55
Undivided
;
for
Reserve
$6,000,000.00
III"~
5,500,000.00
Payable^*-„_w„___»i.^_„-._^I—«
1,229,306.44
75,000.00
_
for
Dividends
Interest, Taxes, Etc.
Liability Under Acceptances
858,140.96
..
77,206.14
DEPOSITS:
Commercial
U.
Other
Liabilities.
S.
Bank
and
Government-^
-
TOTAL
into
the
of
source
it claims
and
the
power
assumes
to
exercise.
;
Profits
Reserve
Maloney amendment and becomes
a quasi-public regulatory
body, its
power becomes a matter of great
importance. Then if it claims a
power to do thus, or to do so, it
becomes appropriate to inquire
which
LIABILITIES
Capital Stock
Surplus'
When, however, the NASD is
registered under the terms of the
v
.
94,177,855.47
Other Bonds
Loans
seriously devote a busy
working day to seeing it happen,
;
RESOURCES
„
Savings
183,043,853.13
47,859,281.26
.
■
89,456.62
Inquiring, we find that
it actually is vested with legisla¬
tive powers, for Article "Third"
of its charter provides that it shall
have power,
"To
adopt,
...
"
administer and
en¬
force rules of fair practice and
rules to prevent fraudulent and
manipulative acts and practices,
$244,732,244.55
The
■
person
would
v'
.
approved by the Commission as so provide.
>We
can
credit the Board of
provided in Section 15A of the
Oct. 25; then we had, on Nov. 9,
Act, they shall become effective Governors with entire good faith
an interpretation of the interpre¬
rules of fair
practice of the and an honest belief that this or
tation.
What comes next?
En¬
Corporation as at such date as any other change is in the inters
forcement! Not enforcement of a
est of the investing public, and of
the Board of Governors
may
the
association's membership;.
rule, but enforcement of an inter¬
prescribe."
pretation. And let there be no
In the charter of the NASD, They still have no such power as
mistake about that word, for in
they assumed to exercise. ; ; ^
v
among its* corporate purposes, we
the fifth paragraph of the Nov. 9
The alternative to democratic
find under the number (4),— \
letter, two officials of the Na¬
processes in the adoption of rules
"To promote self-discipline
tional; Association
of Securities
is, to vest the Board with plenary
among members, and to investi¬
Dealers, Inc. fixed the date for
power of regulation and eliminate
gate and adjust grievances be¬ entirely the membership's right
"enforcement," and so described
tween the public and members
it. We submit that anything which
to be heard.
Even if that would
and between members."
can
be enforced is, very mildly
be a good idea, the by-laws do not
So long as care is taken to see so provide.
speaking, a rule; and it is a rule
>
by whatever name called.
We that the enactment of a rule by
submit
further
that
anything the governing board which hap¬
which, changes the import of a pens at the .moment to be in power
The Merits of the Rule
rule is, again mildly speaking, at is submitted for approval to the
The dealer oil whose behalf Uiis
membership before becoming ef¬
very.ipast an amendment,
brief is filed seeks no license to
As to enforcement, we find that fective—as is provided by Article make unwarranted or unconscion¬
of the by-laws,
a member can be censured,
sus¬ VII, Section 1,
able profits. It does object to a
there can be a comforting feeling
pended, expelled, even fined (By¬
5% spread rule or to any other
Of assurance that self-discipline is
laws, Article VII, Section 3). We
arbitrary or fixed measure. ; It
find further that a dealer member really being promoted. But if, as
believes that any arbitrary ceil¬
is currently reported, some 85%
carl even be sentenced to deathing, be it 1% or 10%, is certain
of the membership of the NASD
economic
death—by being
de¬
to be wrong.
stands arrayed in opposition to a
prived of his standing as a dealer
In a stock exchange transaction
how possibly could it be
and being forced to buy and sell rule,
a service is rendered to the cus¬
both at retail (Rules, Article III, claimed that the membership is
tomer by a broker, the service be¬
Section 25).
Again we submit controlling its own actions, and
ing limited to the filling of art
that that should not be true, and how possibly could such a rule
In order purely on a price basis, with
cannot be true, except pursuant become of force and effect?
the
member
making no repre¬
to a rule.
As a matter of plain no wise other than by circumven¬
sentation and having no respon¬
fact, the enactment of the Board tion, seems to be the plain answer.
An attempt, an obvious attempt, sibility as to the intrinsic quality
of Governors, however described,
But
at
circumvention
has
occurred of the merchandise itself.
is equivalent to a law.
here.
Paying lip service to the only a minority of corporations
are listed on the stock exchanges.
law, grasping at the shadow while
H
the substance escapes, the gov¬ Yet, investors should buy, want to
Grant of Legislative Powers
buy, and do buy securities of un¬
ernors would have
us submit to
The certificate of incorporation an
listed companies.
To make this
"interpretation" rather than to
of the National Association of Se¬
possible is one of the important
a "rule."
curities Dealers, Inc., standing by
functions of the dealer in the
Ill
over-the-counter markets. At
itself, is a purely innocuous docu¬
ment. It might have been filed as
times such a dealer may limit his
The Board Had No Power
a charter by A. B. C. & Co., Inc.,
services to matching a buy order
Taken together, the two "inter¬
and would have no public force
and a sell order, and bring the two
pretations" herein discussed have together in a transaction over the
or public significance whatsoever;
it might arrogate to the incorpo¬ accomplished a substantive change counter.
In such a case a spread
rators power to make the sun rise in Rule 1 of the Rules of Fair of 5% may easily be adequate. No
If the change is valid, rule is
in the west and set in the east Practice.
required, however, in such
it no longer consists of the simple a
and, while that would be a bit
case, for wholly apart from the
22 words in which it was original¬
dealer's conscience economics
spectacular,
informed
no
Reserve System
.
upon
an
or
,
Board of Governors, adverse vote and make the change,
the adoption of any such effective anyway? Obviously not;
that must logically be the
rules of fair practice or amend- yet
ments thereto, shall forthwith view of the Board, for they conr
tend that they can by a circuitous
cause copies thereof to be sent
to each member of the Corpo¬ maneuver effect a change without
ration to be voted upon.
If any any vote of the membership what¬
If that be true, and if a
such rules of fair practice or ever.
vote be unnecessary, then a vote
amendments
thereto—^e
ap¬
If the
proved by a majority of the is a meaningless gesture.
members voting, provided, how¬ Board have power to pass the law
ever,
that a majority of all in the first place, and make it efr
members f of
the
Corporation fective without a vote, they nec¬
have voted, within 30 days after essarily must have power to make
the date of submission to the it effective even against an ad¬
membership, and are not dis-i verse vote. The by-laws do not
".
the
Argument
15A of the Securities Act of 1934
as
under the laws of Delaware
^
All of this change could appro¬
,
date of enforcement of the "stand¬
The National Association of Se¬
Committee that no violation has
occurred."
priately be accomplished if the
membership desired that the rule
be so expanded, but the Board of
Governors had np power so to ex¬
pand it against the will of thfe
membership whom they represent.
Suppose that the Board had com¬
plied with the by-laws and had
there must be some limit on such actually, submitted • to the mem¬
bers a proposal to change the rule
There is,. The delegation which so as to add to it the provisions
.would otherwise be so un-Amer¬ now under attack; suppose furr
ican and so dangerous is strictly ther that the members had re¬
circumscribed
by
the
by-laws jected the proposal 85 to 15.
(Article VII, Section 1) which Would anyone^seriously contend
.provides•'that,—
.y;r ;;
; v1 that the Board could override the
and that his signature has
placed upon a blank note?
By a play upon words the
pronouncements of Oct. 25 and
Nov. 9, 1943 are not so character¬
set forth was fixed as be¬
ized; they constitute not a "rule,"
date of receipt by the not an "amendment," but an "in¬
of the communication of
terpretation." We had a rule, a
but not later than Oct.
proper
rule
properly adopted;
next we had an interpretation on
munication
\';
provision stood alone, one
would be startled: a voluntary,
private corporation vested with
such power? A most unwise dele¬
gation, and patently invalid!
Surely, sight could not be lost of
the distinction between public and
private bodies in the delegation
of < legislative. powers.
Surely,
amendment must be submitted for
above-mentioned
the
In
violation has
no
curred."
protection of in-
If this
unwary
Com¬
Conduct
Business
mittee that
rule.
2. The manner of its
the
satisfaction
show to the
ber to
Commission therefore are:
the
vestors." ^
..
.
He
for his
placed upon it is
laws, Article VII, Section 1) as¬
that, when transactions show a sure him that the Board of Gov¬
mark-up of over 5% on the part ernors would
submit, must sub¬
of a member, it raises the ques¬
mit, forthwith to its members for
tion as to whether there is a
their vote any rule or amend¬
violation of the rule and inter¬
ments? Does he now find that, by
pretation. In such a situation, a double
talk, the whole arrange¬
duty is imposed upon the mem-; ment can be made a
trap for the
a
by the contents of the
complained of, and affected
by the manner of its
adoption.
As perceived by the
dealer on,whose behalf this brief
is
filed, the issues before the
himself and his fel¬
members.
cused
that should be
registered securities as¬
sociation;-All of these subjects are
as
a
"t" or dot
word or add a
except upon submission
proposed change to the
franchise of
low
construction
and the
statement
af¬
the
"i," to insert
an
Action by the Commission is, un¬ ring to the above-mentioned action
of
the
Board, announced
der the statute, appropriate in any
;
T,■/'J'.;<■.;
■
matter involving the - public in¬ .that,— '
"The
general
import of this
terest, the protection of investors,
no one
with power to cross a
Executive
for
trade
by every member of the Na¬
Association of Securities
tional
action pursuant to
Section 15A (k) of the Securi¬
ties Exchange Act of 1934 as
take
Thursday, July 13, 1944
COMMERCIAL & FINANCIAL CHRONICLE
and
and
in general to promote
equitable
principles
just
of
ly stated, but has had added to it would themselves impose a prop¬
by decree 41 additional words, er
limitation.
As
a
matter
of
reading:
fact, the Board of Governors of
"It shall be deemed conduct the NASD by their 1943 question¬
just and equi¬ naire found that 71% of the trans¬
principles of trade for a actions reported were handled at
member to enter into any trans¬ 5% or less even without any lim¬
inconsistent with
table
a customer in any itation be|ng imposed by law or
security at any price not rea¬ by rule. The new 5% limitation
sonably related to the current could therefore apply only to the
market price of the security."
remaining 29% of the transac4
action with,
and 74 more
words, reading:
tions handled.
are
the
ones
These transactions
to
which
the
new
import of this
rule would apply, and the Board
statement,and the construction
stated in its letter of Oct, 25, 1943
that should be placed upon it is
that its philosophy applied par¬
that, when transactions show a
ticularly "but not exclusively" tb
mark-up of over 5% on the part
riskless principal transactions.
of a member, it raises the ques¬
The Board also expressed its
tion as to whether there is a
violation of the Rule and inter¬ conviction that it would be im-?
pretation.
In such a situation, practicable and unwise, if not im¬
a
duty is imposed upon the possible, to write a rule as to fair
member to show to the satisfac¬ spread or fair profit, or to lay
down a percentage or dollar price
tion of the Business Conduct
"The
general
.
Volume 160
/which4 would
Board,
THE COMMERCIAL & FINANCIAL
Number 4298
or
the
at¬
.Yet
fair.
be
indirection,' has
by
any
interest
other, is against the real
of the investing public,
engaged in the securities business,
.clearly that the 5% is not a lim¬ and against .sound thinking, sound
itation on profit, but is a limita¬ economics .alid good morals.
tion on spread.
No doubt most
-VH—.y ''
dealers would be highly pleased
with a 5% profit on all of their It Is the Plain Duty of the Securi¬
ties and Exchange Commission to
transactions, but in many cases
:
they could not possibly eke out a Order the Abrogation Forthwith
.
.
of
livelihood, or have any proft at all
to 5%.
:True, the limit is not by its terms
•if
the
absolute
an
is limited
spread
one,
but the rule
as
makes it necessary that
a
pierce the ceiling only at
peril. He even is saddled
the burden of proving his
in
doing' so
and
•innocence,
posed in the. Securities and Ex¬
change Commission, The framers
of the statute plainly envisaged
a
of the
.Rules of Fair Practice ought to be
the
protection of the investing
;publie. Thabpurpose is not served
.by so limiting the dealer's liveli| hood and his freedom of action as
economically
it
make
to
impos¬
adequately to examine, ap¬
sible
praise and service his customers'
;i investments, and properly to adriskless
Most
retail sales
.
are
ommendation
over-the-counter
on the rec¬
the
despatch to the "New York Times" from a
correspondent in Berne, Switzerland,- Walther Funk, German Min¬
ister of Economics and present head of the Reischbank, addressed
a "gathering of German and satellite economists" at Koenigsberg on
July 7 in which he took occasion to denounce the International
Monetary Conference now being held at Bretton Woods, N. H. Main¬
taining that Germany would not^
tolerate any move toward foreign which require gold to pay import
'■■■"ydomination
of her currency
or balances."
seller,
and
to
McGay has become associated
with Chas. W. Scranton & Co., 209
Church Street: members of the
New York
a
Mr.
G.
A.
he
Saxton
in
was
&
Co., Inc., w'here
charge
stock
the
of
trading department.
>
price regulations, the chief Nazi
economistcharacterized
the
currency."'
rule of the association or standard and any system of in¬
thereto, the selec¬ ternational currency, maintaining
tion of its officers and directors, that money derives its value from
and in all other phases of the the
authority of the State and
administration
of
its affairs." from the labor of her people.
(Bold supplied.)
Exchange.
formerly with John
with B, W. Pizzini & Co. and
was
Situations of Interest
In support of
"We
i
Germany's policy
of independent action, Herr Funk \VF. H. Roller & Co., Inc.,
Ill
pointed out that the best method Broadway, Now York City, have
of promoting and facilitating in¬
^prepared a memoranda on Great
ternational economic cooperation
American Industries, Lacled e
is for each nation to exploit and
develop its own production re¬ Christy Clay Products and In¬
that
tives
and
draft
and
sources
its
direc¬
own
"attune
will
diana
financial
trade
problems." He con¬
the "Times"
des¬
patch, that "the starting point for
cluded,
rent
teresting
sound international currency reg¬
in
future
the
in
sought
levels.
says
ulation
which
the
firm
&
Copies of these
circulars
from
request
upon
be
must
limestone
believes appear attractive at cur¬
may
F.
H.
be
in¬
had
Roller
Co.
orderly adjustment
an
of national economics of all States
Postpone Hearing
concerned."
The
amendment
.depends upon the accuracy and
completeness of his investigation,
his capacity to weigh its results,
and his judgment in passing upon
the facts. The completeness of the
Stock
was
Witkowski & Co. and prior thereto
any
.the value of his recommendation
HAVEN, CONN.—Harold
McGay
According
"(5) the rules of the association
Herr
Funk, according to the
assure
a
fair representation of "Times" correspondent, then pro¬
its members in the adoption of ceeded
to
denounce
the
gold
made
of
S.
and has stabilized her
;vise those who seek his counsel.
.
NEW
Says Germany Will Oppose Interference With Her Cur¬
rency And Price Fixing Decrees—Opposes Gold Stand*
ard And a World Currency
the
The fundamental purpose
Harold Mcfia; Wills
Ohas. W. Scrata
Monetary Conference
possibility that, without super¬ Keynes (British) Plan as an at¬
vision, the legislative powers dele¬ tempt to rescue Great Britain
from its excessive foreign indebt¬
gated to the association could get
out
of
hand to
the
detriment edness, and thereby save its ex¬
either of the investing public or port position from American ag¬
of the membership of the associa¬ gression. According to the "Times"
despatch he declared that "Ger¬
tion.
Thus,, in subsection (b) of
Section 15A, it is provided that many can pursue these debates
and conflicting opinions with com¬
such an association may not even
be registered unless it appears to plete equanimity because she is
safeguarded by her social peace
the Commission that—
quasi-criminal proceeding.
•
other such association is re¬
any
own
with
Rule
amended, supervisory power over
the rules of the National Associa¬
tion of Securities Dealers and of
dealer
.his
Contested
provisions of the Se¬
curities Exchange Act of 1934 as
.'announced by the Board of Gov¬
ernors
the
Under the;
191
Chief JIazi Ecosiomisl Assails Work Of
against the, real interest of those
tempted SO to do.
-,
'It should further be understood
CHRONICLE
W. Howard Millar Dead
W.
Howard
of
ident
&
York
120
Co.,
the
tration of M.
Vice-Pres¬
Millar,
Doremus
hearing
whether
to
determine
broker-dealer regis¬
S, Wien & Co., New
City, should be revoked
in
'
'
'
or
Germany," he is re¬
Broadway, New York City, the suspended, and whether the firm
investigation depends upon the The rules did in, fact assure a ported to have said, "know that
advertising agency, died after a should be expelled or suspended
•availability of information, the fair representation of the mem¬ sound currency conditions call for
from membership in the National
sane and economic principles and
h^jprt attack on the golf course at
time spent in gathering facts, and bership,
in ? that
any
rule
or
the ability of the investigator to amendment before becoming ef¬ the attempts of our enemies to re¬ Valley Stream, Long Island.
Mr. Association of Securities Dealers
obtain them.
It takes ability to fective
must
be
submitted
for vive the automatism of the gold Millar had been in the financial has been postponed by the Securi¬
know what questions to ask, how ratification by a majority vote of standard in connection with eco¬
ties and Exchange Commission to
activities
is
therefore advertising business for nearly 30
to ask them, and of whom to ask the members.
The above-quoted nomic
Aug. 9.
The hearing will be held
years and had been with Doremus
doomed to failure.
'them. Vital facts are often avail¬ subsection, however, clearly im¬
Co.
since
1931, becoming a in the Commission's New Yorl£
"German currency is a national &
able only to a few persons, some- plies not only that the rules must
'
'
times
who
•
almost
know
what facts
are
essen¬
Facts are often made avail¬
tial.
able only to
office.
be proper when the association is asset and not the medium of in¬ vice-president last December.
registered, but that they must be ternational barter. For that reason
kept that way; also, that they Germany will never tolerate that
must be observed. To say that a the value of her currency shall be
by foreign Govern¬
rule is not controlling is equiv¬ determined
to active associates,
always only to those
only
and
the investigator who
by past performance
to saying that there is no ments or Wall Street bankers or
rule, and that is not the scheme permit Chicago to fix the price of
German grain. Whoever influences
tion is frequently acquired only of the legislation.
the value of currency also deter¬
/• over a long period of time, and a
But the statutory provisions on
mines the social life of a nation.
fund of facts regarding a situa¬ the
subject do not even stop there.
For that reason alohe it is neces¬
tion has a cumulative value. Fur- A rule
or amendment might still
thermore, if a dealer has investi¬ be adopted, legally or illegally, by sary that we give careful consid¬
gated and has sold to his custom- the governing body of the asso¬ eration to Anglo-Saxon currency
plans.
ers thp securities of a corporation,
ciation after its registration, which
he has acquired a special right to
"We need a new economic order
might be against the interest of
obtain information.
the public or the interest of the because the old system has col¬
'has
proved
that he can be trusted.
alent
Informa¬
•
•
!
•
•
A financial house that has for
members and. such a possible sit¬
carried on careful investi¬ uation is' covered by subsection
gation and developed an enviable < (k):vr, •
reputation can justly charge more
"(1) The Commission is author¬
for
the
same
security
than
a
ized by order to abrogate any
dealer can who rendered no such
rule of a registered securities
; service.
In fact, customers of the
association, if
it appears . . .
highest type will knowingly conthat spch abrogation is neces¬
tinue to buy from a high price
sary or
appropriate to assure
; house with a feeling of greater
a fair representation of its
security regarding their holdings.
members in the administration
•'
A fixed spread can drive the most
;
•
years
•
•
...
'
.
the
"
counter
'
'
very
men
securities
who
business.
'
Ac-
cording to some, if a dealer sells
securities to a customer at a price
close to the market
on
the day of
.
.
.
vis
alter
au-
or
One
cannot
bring
order
but must rehabilitate
with planned economy.
of June :.I09 1944
as
panaceas,
currency
"Monetary measures alone will
never
suffice to
cure
economic
the value of gold is
primarily determined by its mon¬
etary disposition. The Soviet Re¬
public is on the side of the United
States, which hopes, with the aid
of a world currency plan, to con¬
serve the stability of gold prices.
disorders,
RESOURCES
Cash &
S.
U.
Due
from Banks
Government
$ 51,210,370.22
.
.
139,293,695.31
Securities
as
"Such considerations would con¬
form to the interest of the Soviet,
supplement the rules . . . if . . .
.
that such altera¬
tion or supplement is necessary the Board's "policy" is not a rule
or appropriate ... to effectuate
but
"a
desirable
objective, or
the purposes of this section with yardstick, neither more nor less."
respect to i
.
the method for But, let us again remember that
adoption of any change in or the Board's letter of Nov. 9, 1943
$193,504,065,53
1,586,488.67
State, County and Municipal Securities *
Other
Securities
.
.....
...
6,476,181.20
14,811,836.43
8,062,669.87
Demand
Loans.
.
.
..
.
.
.
.
...
.
.
.
.
....
.
.
....
Time
Collateral Loans
Bills
Discounted
.
.
8,177,246.49
14,116,326.89
37,105,469.81
Bank
Other
2,787,032.08
132.883.01
Buildings
Furniture
Fixtures
and
Real
/ -i
.
37.077.47
Estate
.
•
2,956,992.56
it appears v
addition to the rules
<
provided for enforcement.
How
can a "desirable objective" be en¬
have, by whatever name
forced?
And, whatever a "yard¬
ration later falls upon evil times called, a rule or an amendment or stick"
may be, how can a yard¬
with large resultant loss, to the a change, and in its adoption the
stick be enforced if it is not a
customer. Real investment advice statutory
method has been ig-^
rule?
; requires
something more.
Cases nored. No fair representation of
We know nothing of the cir¬
come
readily to mind where a the members has occurred; in fact,
dealer spends months of his time the
by-passing device has pre¬ cumstances which attended the
and thousands of his dollars irt- vented any possibility of repre¬ writing of the two letters referred
vestigating and weighing the real sentation. The rule itself is un¬ to, but it seems signifcant that the
facts of a security, has recom¬ sound, as has been demonstrated amelioration of terminology which
'
Statement
into world economy with currency
Customers'
ances
Accrued
Other
.'
Liability under Letters of Credit and Accept¬
V
.
.
/
.
- . '
.
•
....
•
*
f
.
•
Receivable
Interest
Resources
.•
•'
-1
.
.
.
.....
.
.
.
.
.
.
.
.
•
•
5,037,456.97
T
.
.
.
557,641.16
60,740.00
.
.
.
/
.
sale, and can show him a few
points profit in the weeks that
immediately follow, the dealer
has done well, even if the corpo¬
'
.
"(2) The Commission .
v thorized
by order- to
improving the reputation and
standing
of the over-the-
/ are
,
out the
drive
can
.-
of its affairs
valuable advisers out of business,
•
.
lapsed,
$244,285,035.90
LIABILITIES
,
.
.
Here
we
U.
S.
'
'
mended
•
they suggest comes to view only
its adoption is clearly invalid.
It after the petition of May 2, 1944
was filed with the Commission. In
has no foundation of good moral¬
ity, good economics or good law. this correspondence we sense a
elsewhere herein.
it to
customers, and has
thereafter serviced the customer's
investment
by: representation
on
the
The method of
board, by active participation
management, by assuring It is the; duty of the Commission willingness to make a strategic
retreat, hut we suggest that it is
! the investor-that a careful watch to declare it a nullity. - ■ ■
'
'
too late for retreat.
Either the
is being continuously kept on his
The record before the Commis¬
financial safety.
It does happen sion contains references to an ex¬ Board's action was valid when
taken, in which case ho retreat is
that
business
and / professional
change of letters between the
men sometimes do not render the
chairman of the District 13 Com¬ necessary; or it was invalid when
the
in
Deposits
Government
Other
Deposits
...
Discount
Unearned
Accrued
Taxes,
.
services for which they are paid, mittee and the chairman of the taken and is invalid now, as we
contend, in which case no retreat
but that is no argument for set¬
NASD, dated respectively May 18, is
possible.
The so-called "5%
ting a fixed price on real service
1944 and June 6, 1944. In the lat¬ Rule" should be by order of the
when it actually is rendered. Applying an arbitrary measure, 5% ter communication it is stated that Commission abrogated forthwith.
,
,
,
f
.
';;
./
.
188,953,101.77
.
Deposits
.
.
.
.
Interest,
.
etc.
.
.
$222,642,195.79
.
.
76,984.96
,
.
772,283.09
........
5,039,048.32
...
....
.
.
....
-
Reserve for Dividend
Acceptances
113,750.00
Payable July 1, 1944
Letters of Credit and
Capital
Surplus
Stock
...
.
.
Undivided Profits
•
,
.
.
'•■»
.
.
.'
.
.
.
.
.
•
>
•
.
.
.
.
4,550,030.00
7,500,000.00
*
.
.
2,563,209.18
.
14,613,209.18
Reserves
•
•
1,027,564.56
•
$244,285,035.90
-
Corn Exchange National Bank
and Trust Company
philadelphia
.
:
$ 33,689,094.02
.-
....
...
.
.
Total
'
Established 1858
Member Federal Deposit
-
y
Insurance Corporation
Posl-War
Municipal Finance
In The National Economy
lapping taxes, insufficient regard sponsibilities for relief and public
works were thrust on the cities.
by one government for the taxes
In the face of limited sources of
of others, and, especially at the
local level, a poor correlation of revenue, they had to turn to bor¬
And in the face of debt
tax
resources
with government rowing.
limits or poor credit
standings,
based
cannot, of
federal system, they had to turn to State and Fed¬
We
retain our
course,
is on local self-gov¬
and a federation of 48
it
as
ernment
governments for aid.
RFC
its
from
Aside
and PWA
But
duplication and conflict.
j
their
; The Groves - Gulick - Newcomer
committee was appointed by Sec¬
retary
consumption. And they cut
expenditures on public
In other words, while the
Federal Government was fighting
ing
on
deflation with
gram
and
were
public works
a
pro¬
and deficit financing, State
municipal financial policies
inadvertently working in the
opposite direction.
At present, during the war, the
the
Government is locked
Federal
death
struggle
State
some
reversed. ; While
is
situation
a
the Federal Government
responded mainly by a great ex¬
pansion of the grant-in-aid sys¬
paying some price loans,
States, without
in
eral
deflation, they retreated into their j Messrs. Hansen and Perloff of the
financial
shells.
They
reduced Federal Reserve System in their
their borrowing.
They 1 e v i e d ( recent book, "State and Local Fi¬
new taxes, especially taxes weigh-1 nance in the National Economy."
works.
(Continued from page 173)
responsibilities.
reduced
with
local
and
in
inflation,
units have
By cutting prop¬
taxes.
price we are now paying
erty and income taxes* for ex¬
tem. These aids seemed to prom¬
unduly high.
T
ample, they have put unexpected
ise the locailities a means of car¬
In the old days, when the States
spending power into consumers'
rying out the services demanded hands
and localities drew their revenue
just when the national in¬
of. them without being .forced to
from property taxes,
terest
demands
that
consumer
while the
resort to unsound tax devices'and
Federal Government depended on
spending be cut to the bone. For¬
borrowing practices. ' At the same
liquor and tobacco taxes and cus¬
tunately, many States and munic¬
toms duties, conflicting taxation time, the grants-in-aid promised
ipalities are following the sound
the Federal Government a means
was hardly a problem. But, as the
wartime
policy of cutting their
of putting a nation-wide policy
sphere of government expanded,
debt instead of their taxes, and
into effect without doubling up
conflicts developed. With only a
putting their financial houses in
on
State and local services.
As
limited number of tax streams to
order for the post-war period. But
fish in the different governments yet, however, the aid device has when we find that only eleven of
not met these goals.
soon found themselves fishing the
our
48
States
have specifically
Most students of the subject feel authorized
same streams.
And, in looking for
their subdivisions to
elbow room on the banks of the that' the grants-in-aid fell short of build
up reserve funds, we realize
the
.
seems
government .in¬ expectations because they did not
each
stream,
have
evitably jostled the others.
The critics point
fair trial.
a
Thursday, July 13, 1944
CHRONICLE
THE COMMERCIAL & FINANCIAL
192
what
cal
enormous
in
1941
to
It submitted its
of fiscal relations.
findings to the Treasury early in
1943.
In its
report
("FederalState-Local Government Fiscal
Relations," Senate Document No.
69 (78th Cong., 1st sess.)) it rec¬
that machinery to
achieve co-ordination be set up in
ommends
of
the form
cal
Federal-State Fis¬
a
The 'FSFA
Authority.
(for
which, incidentally, our Washing¬
ton alphabet still has room) would
full-time
of- three
consist
mem¬
bers, one to be appointed by the
President, one by the States, and
the third (presumably an expert
in municipal affairs) to be named
by the first two. The Authority
would be assisted by an advisory
council representing a wide range
of
and Perloff
Hansen
interests.
suggest an alternative agency, the
Intergovernmental Fiscal Author¬
ity, to consist of seven members
appointed by the President with
advice
the
and local of¬
of State
ficials.
'
■.
Either
exist in fis¬
gaps
Morgenthau
study and report on the problem
the
of
proposed
joint
agencies would be assigned such
functions as conducting research
planning.
of
country and 21%
of the
need
total
hand,
On
ability.
financial
other
the
14 Southern
the
States, together, had 34% of edu¬
cational need but only 16% of fi¬
It is on discrep¬
nancial ability.
for
ancies like these that the case
grants-in-aid rests.v-";
(3)
Provision for review of
grants-in-aid by an intergovern¬
mental
agency
to which States
and localities could bring appeals
in cases where the national pol¬
variable
injustice
icy worked« an
particular unit.
•
Given these changes
aid
practices,
the
the
on
*
in Federal
and
States
cities could count, throughout, on
a
minimum standard of certain
essential
services
like
schooling
health, without starving other
and
essential
eral
the
And
services.
Government
Fed¬
have
would
a
logical mechanism to carry out
nation-wide policy.
W
a
1
The criticism will be made that
is
this
insidious
an
fbr
way
the
Federal Government to gobble up
State
local
and
of
absence
criticism
this
In the
safeguards,
powers.
adequate
would
substance. The power
have
some
of the purse
is very compelling. But
safeguards
provided in the
grant-in-aid laws, laws which are
passed by members of Congress
representing not only national in¬
surely
can
be
out
(1) that so-called matching
Even this very cursory survey
terests but also State and local in¬
of the
instead of variable, or of (1) intergovernmental tax con¬ and making recommendations on terests.
character¬ grants
;V.
,;>7i/'J'
co-ordination;
promoting
ized about 62% of all local, State, equalization grants were used and flicts, (2) the bad alignment of fiscal
Moreover, compared with alter¬
and
Federal
revenues.
Almost (2) that only a few selected, often municipal revenues with munic¬ better government reporting; act¬
natives,
expanded grants-in-aid
three-quarters of all State tax secondary, services were favored ipal responsibilities, and (3) the ing as a "board of appeals" on may well be the lesser of evils.
to the detriment of broader classes
collections and nine-tenths of all
"perversity" of local finance, re¬ such matters as Federal payments Without them, the cities would be
veals an urgent need for improved in lieu of taxes; promoting joint
Federal tax
collections in 1941 of services that needed support.
faced
with
the
choice
of
(1)
The matching principle requires fiscal planning at the municipal administration of taxes; and su¬
were
derived from tax sources
adopting taxes basically unfit for
And this discussion in no pervising the Public Work Re¬
the States and municipalities to level.
jointly employed by State and
local use, like the income tax or
Federal governments. With resoect match the Federal grants dollar way presumes to be exhaustive. serve.
sales tax; or (2) leaving impor¬
A co-operative agency could do
to specific taxes, the Federal Gov¬ for dollar—otherwise no grant is Such grave problems as those of
tant
services
without
adequate
ernment dominates (that is, col¬ forthcoming.
yeoman
service in promoting a
Since
rich States blighted areas and1 migration to
support; or (3) forcing the Fed¬
lects more than half of total rev¬ had more dollars to match the the city fringes are not within the co-operative attitude; getting the eral
Government
to
take
over
enues from the given tax source)
grants than poor States, they were bounds of this paper; that they are various governments around the functions which can really be ad¬
in net income, death, gift, liquor, able to get more dollars of aid nonetheless of vital importance is conference table to eliminate con¬
ministered
more
effectively
by
Government. illustrated by the fact that here flicts; and stimulating a co-ordi¬ local
tobacco, and payroll taxes. State from the Federal
officials. Seen in this light,
governments dominate in business Furthermore, the poor States so in the City of St. Louis alone, nated national fiscal policy em¬ Federal aids properly safeguarded,
taxes and in motor-vehicle license extended themselves to match the blighted areas annually cost $5.5 bracing all three levels of govern¬
are actually a device to strengthen
more
to run than they ment.
It
could
serve
as
the
and gasoline taxes. Local govern¬ Federal grants offered for selected million
and preserve, rather than under¬
watchdog
of
the
co-ordination
ments,
of course, dominate in services that they sometimes had contribute in taxes.
mine, local government.
7
True, the war, by inflating tax movement, protecting the inter¬
property taxes. Only customs du¬ to starve or undernourish other
In
discussing i development of
•
ties and property taxes are com¬ services.
yields and postponing many <ex¬ ests of taxpayers and government
Federal aids, one cannot ignore
alike.
pletely free from State-Federal
Thomas H. Reed, in his study penditures, has glossed over some
By 1941, overlapping use
sources
revenue
same
.:
.
overlapping.
entitled "Federal-State-Local Fis¬
together cal Relations," prepared for the
diversities among State and
Municipal Finance Officers Asso¬
tax laws, multiply costs of ciation
and 'published
in
1942,
Overlapping
with
local
collection
as
taxes,
well
as
costs and ir¬
For in¬
of compliance.
ritations
dividuals, it is largely a matter of
inconvenience or nuisance, as in
filling out two sets of income-tax
returns or going through two dif¬
ferent
each
property-tax assessments
This is bad enough.
year.
But for complex businesses a wel¬
ter of conflicting taxes is even
Merely in terms of keep¬
ing the necessary records and fill¬
ing out diverse tax forms, busi¬
nesses are subject to unnecessary
worse.
criticized
and
Federal
State
as¬
sistance
on the ground
of its in¬
equities and uncertainty, and be¬
cause
it
diture
stimulated
rather
local
tax burdens.
expen¬
relieved
than
local
.
Federal
grant-in-aid policy "to
date has not generally recognized
differentials
economic
It has exerted
for expenditures
units with unequal resources.
equal
pressure
Despite the strong national inter¬
often heavy
nesses
run
a
minimum level of
expense.
the risk
of double
or
multiple taxation.
Even if tax conflicts were con¬
fined
entirely
Federal
levels,
not view
thing
the State and
the cities could
to
the situation with
but
alarm.
subdivisions
of
The
the
,
nity for
cities
are
and
anything
clear-cut
policy
of underwriting or guaranteeing
a national minimum has yet been
all—no
developed. ■'/;■ >V
Perverse. Cyclical
any¬
States
Thus
not
find
we
Policy
unco-ordination
further lack of co-ordination.
weakening the State's
local government.
Unbalance Between Revenues and
Responsibilities
^so£S
S&
deeper,
not, of
found in the
pression of the 'thirties.
as
That
we
de¬
high¬
basic unbalance that had
great
depression
"the fiscal
perversity
of munic-
ioal finance in boom and depres¬
sion."
v '
•A.V/-''
Or,
to
put
.it
more
simply,
stead of
helping to even out the
peaks and valleys of our business
cycles, has helped build up the
peaks and deepen the valleys.
In
the boom of the late 'twenties the
lighted a
developed between the revenues municipalities indulged them¬
to
local
governments selves in heavy borrowing, exten¬
and the services they had to per¬ sive public works, and tax reduc¬
form.
Taxes fell off sharply in the
tions. In short, they magnified the
'thirties, but costs of run- boom. In the depression of the
ning local government were stub-1 'thirties, they did the opposite,
born and refused to fall off Instead
of
joining the Federal
correspondingly. In fact, new re-1 Government in a bold attack on
the
work
in
war.
to
reappear
Only if the cities
on
their post¬
advance
Device
of the major
One
Federal
a
State
could
agency
work
to
-
-
services that
local
fiscal
would be
perform
out plans
problems
for a national
can
Remedies
What
interests of certainty and balance
the municipalities
can
as
finances, the municipali¬
in their
do to serve the dual pur¬ ties should join hands to work for
of strengthening their own co-ordination and rationalization
finances and bolstering the post¬ of these grants.
war
economy?
Several possible
The grant-in-aid is not a curelines of action suggest themselves: all. But it can serve as a valuable
1. Active
participation in the lubricant for a Federal system. It
movement to set up a joint Fed- can in part bridge the gap be¬
eral-State-local fiscal agency.
; i;! tween the financial resources of
2. Co-operation with State and local units and the functions they
a
group
pose
Federal
out
a
rational
more
grant-in-aid policy.
3.
tax
It is
flexible a device whereby the national
taxing power can be brought to
in working
governments
and
•
Reploughing the field of local
especially
the
4. Reorientation of local finance
recognize and combat depres¬
sion and boom by such devices as
post-war and prosperity reserves,
public works programming, etc.
A Federal-State-Local Fiscal
Agency
The
problem of conflicting tax¬
ation has long since given birth to
proposals for establishing a na¬
tax
commission
or
some
similar agency. A number of bills
have been introduced in Congress
the
such
a
cities and localities.
How
past
few
years
grants-in-aid be made
Students of the
problem have suggested three ma¬
jor. steps:
' •'''•;
y;V-7 ■.
Concentrating aids on sev¬
(1)
eral broad services like
education
health, in which there is a
compelling national interest, in¬
stead of splintering them among
a number of minor functions. The
need for this step is dramatically
and
illustrated by the
Federal grants to
movement
amend
to
way
fact that in 1941
States for grade
incomes
on
and
rate of 25%.
tal
grants in
the field of public
already
un¬
Federal
approve
second
(2) Recognition of the need for
national minimum of services,
to
estates
amendment"
and
a
local
the losers.
Federal
If
income and estate taxes
back to
top
a
called upon Congress to
this so-called "twentywere
cut
top rate of 25%, State
governments
In
the
face
would
of
be
25%
a
maximum rate,
it would be diffi-y
cult, if not impossible, to sustain
the aids currently provided for
highways, for the aged and physic
cally handicapped, and for agri-1
culture. Moreover, the possibility
of extending Federal assistance in
such fields
as
education and pub¬
lic
health
be
destroyed.
of
establishing
imum
of
would almost
certainly
The whole concept
national
a
certain
min-f
services
basic
would go out of the window.
The
across
move
to put
is steadily
the 25%' limit
gaining grounds
Municipalities have
est
in
would
ening
people
and
a
vital inter¬
this
amendment, for it
indirectly result in weak¬
their power to give the
many important
would
make
local
harder
serviced
finance^
to
manage.
Purely as a
self-interest, and apart
folly of writing tax laws
into the Constitution, the munic¬
ipalities
should vigorously
oopose the 25% limitation proposal!
matter of
from the
Development of Local Revenue
Sources
The
point
:<
/!;:
foregoing discussionof
grants-in-aid
health.
a
now
the
Some 15 States have
crossings were greater than its to¬
to set up
body.
can
useful?
more
to
in
called upon to perform.
serve
property
field..
tional
are
ominous
der
Constitution to limit Federal taxes
they system of grants-in-aid. As noted
hope to meet the joint demands of earlier, our present aid set-up
sound
city
government
and
a really cannot be called a system.
It is actually a series of uncoordi¬
stable post-war economy.
nated individual grants.
In the
finance
war
We
available
early
after
find what has been aptly termed
.
Lack of co-ordination is
bound
are
revenue,
in taxation but also in
or rather, unbalance
between taxation and expenditure
at different levels of government.
When we add borrowing to taxes
and expenditures, we find a still
direct
serve
Improvement of the Grarit-In-Aid
planning, both the chronic
cyclical weakness of local
finance
only
that adversely affects
the States adversely affects local
government. The effect may be
direct, as in the case of State-lo¬
cal shared taxes; or it may be in¬
in
the
fi¬
But, in the absence of re¬
alistic
*
the balance,
ability to
local
.
est in at least
'More¬ education, of
public health, and of
over, since tax laws differ from public
welfare—merely the min¬
city to city and from State to imum consistent. with the demo¬
State, both individuals and busi¬ cratic principle of equal opportu¬
and
of
defects
worst
the
and the
among
States and regions.
on
of
nance.
the
salvation
is
not
way to
of
city
intended
the
to
financial
government.
True enough, inequalities of re¬
proposals which are that is, provision not only of sources and
services will always
attracting widespread interest are straight matching grants but also
require a Federal hand; weakness
those made by the Committee on of differential or equalizing grants
of one part of the Federal
body
Intergovernmental
Fiscal
Rela¬ favoring the poorer States and affects
,all other parts. But this
In some areas, needs for
tions (composed of Professor Har¬ cities.
does
not
mean
that
the
cities
outstrip taxable
old M. Groves of the University services far
Two recent
of
Wisconsin, Dr. Luther Gulick
of the Institute of Public Admin¬
istration,
comer
and
Miss
Mabel
of Vassar College)
New¬
and by
For example, the Ad¬
Committee on Education
estimates that in 1935 New York
capacity.
visory
hud
9%
nf
the
total
educational
should lean on Federal aids tobail them out of trouble after the
war.
If they regard such aids as
their
financial
salvation
rather
Volume 160
than
as
a
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4298
supplement designed to system, they have gone along with
the tide and have, in fact, con¬
guarantee certain services, they
will endanger both the vitality
and the independence of local
governments.;
Groves-Gulick-Newcomer
The
committee, especially, decries the
"picture of local units running hat
in hand to the central units. The
committee points
little
cities
for
sense
out that it makes
to
ask
the
Federal Government to solve their
financial
last
problems, since, in the
analysis, the source of the
funds
on
which the Federal Gov¬
ernment must draw is within the
local units themselves. The com¬
mittee snorts at what it calls "the
spectacle of a city like New York,
popularly regarded as the 'gold
coast' of a rich country, going
through one financial predica¬
ment
after
another, obliged to
adopt a sales tax which its mayor
had successfully attacked in Con¬
gress, and frankly conceding its
future
dependence
on
Federal
revenues.
In other words, a
.
balance
the
.
be
must
assistance
struck
derived
between
from
Federal Government and the
development
intensive
of
the
more
inde¬
sources of local revenue.
What direction should such de¬
pendent
velopment take?
It might,
on one
hand, take the direction of diver¬
sification and greater reliance on
taxes other than the general prop¬
tributed to those tides.
In pros?
perity, their credit has been good,
their tax yields have been high,
and they have succumbed to the
generally expansive feeling which
leads to heavy construction pro¬
grams, large-scale borrowing, and
tax reductions.
In depression, on
the
other
hand, they ran up
against debt limits, property-tax
delinquencies, and a weakened
credit standing—as a result, in¬
stead of bucking the tide of eco¬
nomic contraction, they quite nat¬
Attractive Situations
Co:, 120 Broadway, New
York City, have prepared circu¬
several
on
THE
currently offer attractive possi¬
bilities, the firm believes. Copies
of these circulars, on the follow¬
ing issues, may be had from Ward
& Co. upon request.
Du
Mont
Laboratories
s
that
and
that the
are
nation-wide
origin.
Rather,
it
cities and States have
a
vital stake in high levels of eco¬
nomic
activity and employment
aid materially in attain¬
ing those levels. The thing that
makes the local tax base produc¬
tive is prosperity.
Anything the
local units can do to co-operate
with, rather than frustrate, a na¬
tional policy aimed at a stable
and prosperous economy is all to
their own good. Acting alone, any
given city or State can do little.
But acting in concert, the cities
and
as
can
well
as
Bay way Term. Interesting
Bay way
telling
offers
stock
common
Corporation
Terminal
interesting
possibilities according to a four
page brochure prepared by Adams
& Co., 231 South La Salle Street,
Chicago, 111.
Copies of this bro¬
chure
upon
are
available
to
REPORT
the
chief
ment
feature
market
of
the
the
over
Dividend checks will be mailed to holder#
Common Capital Stock who have filed suit¬
able orders therofor at this office.
of
invest¬
next
D.
con¬
2s
Ninety-First Consecutive
an
total of
a
declared a regular
quarterly dividend of $1.00 per share,
payable September 9,1944, to stock¬
ed
l%s
as
seven
3P.M.
GEORGE L. BUBB
award¬
were
Treasurer
bid of 99.882.
on a
Chesapeake
Ohio Railway
&
due to open bids today for
was
»
offering of $2,500,000 equip¬
ment obligations dated
in
McGraw Electric
July 15
instal¬
equal
ment^ from July, 1945 to 1954.
This
will
leave
Company
of
issue
an
42 Broadway,
State, and Federal fiscal policies
into a national fiscal policy is no
help to free local governments
simple matter, a few devices to from
pressures to retrench unduly
get closer to that goal readily sug¬ in
grown during the war.
On one
depression periods. Too often
gest themselves.
in the past, they frave had to re¬
hand, locally shared State taxes
One of them is a system of
have contributed larger amounts
duce services and increase taxes
as State tax yields have risen.
On building up reserves during pros¬ as a prerequisite to obtaining
the other, many cities have turned perity for a rainy day to come. funds from private sources dur¬
The principle of building up war¬
to such measures as admissions
ing a depression. The Loan Cor¬
time reserves for the post-war pe¬
taxes, increased license fees, levies
poration, operating on the revolv¬
riod is now very widely accepted
ori
beverage sales,
and excise
ing-fund plan, would relieve them
as sound State and local finance.
taxes on utility revenues.
of this pressure by providing a
But
This principle can be applied just
£ince the use of these taxes often
back-stop whenever needed.
as well to a peacetime prosperity
involves piling taxes three deep
Imposing legal and economic
situation. Wartime reserves serve
and further complicates a revenue
barriers, as well as traditional
the dual purpose of neutralizing
system that is already highly com¬
practice, stand in the way- of
inflationary spending power dur¬
plicated; and since, in addition,
countercycle finance at the local
local units suffer too much leak¬ ing the war boom and providing level.
But the potential rewards,
a
bulwark against the post-war
both to local government and to
age in
applying taxes to bases
Peacetime reserves could the
other than property, it appears slump.
Nation, of a strong counterbe
devoted
to
strictly parallel
that the local revenue potential of
cycle fiscal policy are so great
ends.
that the municipalities should
such taxes is strictly limited.
The policy of maintaining high
This consideration leads us to
bend
every
effort to break
tax rates during a boom and cut¬
reconsider the backbone of local
through these barriers.
ting tax rates in a slump is good
finance, namely, the property tax.
national economic policy, good lo¬
Conclusion
A proposal that has aroused great
cal finance, and even better per¬
Interest in recent months, largely
Post-war planners in the munic¬
sonal finance. The easiest time to
through the impetus given it by
ipal field dare not ignore the
And cost of fiscal discord between lo¬
t h e
Groves - Gulick - Newcomer pay taxes is during a boom.
the best time to spend money is
committee, would recast the pres¬
cal, State and Federal govern¬
Off-peak expen¬ ments. Their fiscal
ent property tax into a service during a slump.
planning has
ditures on such things as public
to proceed in full view of the in¬
charge on landlords and an oc¬
works not only act as a shot in
cupancy tax on tenants and own¬
terdependence of the local and
the arm for an ailing economic
national economies.
er-occupiers. The service charge
system, but generally offer the
<on landlords would resemble the
Encouraging evidence that
municipality
a
chance
to
get
present property tax. The occu¬
municipal officials are aware of
needed work done at costs well
the need for harmony is provided
pancy tax, though long used in
below those encountered at the
Great Britain, would be something
in the widespread interest and ac¬
new
under the American fiscal peak of prosperity.
tivity which they have shown in
The use of a capital budget also
sun.
It would be more personal
the co-ordination movement. The
than the general property tax, be¬ suggests itself as an instrument of Municipal Finance Officers Asso¬
sound fiscal planning. Municipali¬
ing based on annual rental value
ciation, for example, is reexamin¬
ties
would
know
much
better
rather than sales value,
ing local revenues against the
where they stand and would have
f The major advantage of the oc¬
background
of State-local
and
a
much better basis for
fiscal
Federal-local relations.
cupancy tax based on rental value
In 1942,
if they divided their its Committee on Local Govern¬
is that it achieves better correla¬ planning
tion of taxes with income and budgets into (1) a current or oper¬ ment
Revenues
and
Activities,
with current ability to pay.
Its ating budget and (2) a capital headed by Dr. Thomas H. Reed,
budget.
Cprrent costs would be submitted a searching report on
chief drawbacks are that it would
loaded
into
the current budget
local
require a second valuation of each
State
Federal fiscal rela¬
and capital outlays would be
tions. Specific points of fiscal con¬
property in use and that its weight
loaded
into the capital budget.
would fall primarily on housing, a
tact between Federal and local
This would facilitate staying on a
field in which national policy calls
governments are being examined
for an improvement of standards. pay-as-you-go basis for current by its Committee on Federal Fis¬
Nonetheless, the occupancy tax expenses as well as proper writ¬ cal Relations. Another of its com¬
off of capital investments mittees is
remains an interesting possibility. ing
examining the funda¬
within the period of their useful
It would give the municipalities
mental
question:
"From
what
two-thirds of its bills with money
The Directors
Company have declared a
quarterly dividend of 25c per
share, payable August 1, 1944, to
holders of common stock, of $1
par value per share, of record
July 15th.
of $3,620,000 certificates,
Aug. 1 and maturing in 10
equal annual instalments.
fering
dated
-
ti
Kansas
City
cleared
the
Terminal
-
a
foothold in
a
new
revenue
field
sources
If they are to follow a success¬
in hand to
central
government. It might ful countercycle policy, the mu¬
prove to be just what is needed nicipalities must also find some
to prime the property-tax pump. way tot maintaining their credit
standing during deoression neriMunicipal Finance in the Fight
ods.
This again probably calls for
without
running hat
Against Depression and JBoom
The
this
point
was
made earlier in
i ntergo vern rn e" tai
Hansen
and
^o-nnerati on.
Perloff
have
sug¬
gested the establishment of an In¬
pecul¬ tergovernmental Loan Corpora¬
iar perversity in their fiscal pol¬ tion to provide adequate credit to
icies.
Instead
of
manipulating State and local governments. The
their tax, borrowing, - and expen? Corporation would be authorized
paper
that
State
and
governments have shown
local
a
diture policies to work against the
ebbs and flows of our economic
to
can
local
governments
best obtain their revenues?"
a
Railway,
51944, to stockholders of
ICC the
Company, Inc.
applica¬
necessary
tion for assuming the guarantee
of sinking fund and interest on
the projected
issue of $47,000,bonds
first mortgage serial
000
DIVIDEND
of the terminal firm.
■
Missouri
Pacific trustees pointed
out to the court that the refinanc¬
a
and
rhpprpd
bv
on
the stock of the
July 19, 1944
dividend for the fourth quarter
cents per
1944
to
share payable October
stockholders
of record
TP-
.
which greeted the first cor- corporate funds in hand, will be
porate undertaking in the wake applied to outstanding first pre¬
ferred stock and a number of 5
of the Treasury's Fifth War Loan
sponse
and
Drive.
6%
bond issues
now
in the
hands of investors.
The
of
marketing
at
2%% debentures, priced
99%, though not a bid deal,
as
such
Single Bid Rejected
year
these
ventures
days,
was
good "feeler"
fully
measured
are
regarded
after
a
as
lapse
a
of
month.
a
It
required scarcely two hours
syndicate managers hand¬
ling the deal to announce that the
Plans of Northern Indiana Pub¬
lic Service Co, looking toward re¬
financing of its outstanding pre¬
ferred stocks, struck a snag this
week, when the offering of new
preferred brought only a single
bid from bankers.
for the
issue had been oversubscribed and
the books closed.
New Orleans, Public Service
Orleans
New
Public
Service
wave
of
by
public utility
of refinancing.
way
It
is
now
company
25,
or
on
the
.
expected that this
will receive bids July
call for bids for an issue of 220,-
078
shares
of
5%
cumulative
preferred, was a single tender of
101, indicating compensation to*
bankers handling exchanges of
the old stock, or absorbing the
new
shares, of $659,769.
Directors
rejected the banking
bid, but without any formal ex¬
planation.
Presumably the pros¬
pective issuer will try again after
a
reconsideration of the deal.
pro¬
to
mature
company's
new
flotations
thereabouts, for its
,
the
Response
Inc., now looms as the likely first
issuer to reach market
y
$10,
the
000,000 of Quaker Oats Co. 20-
in
1974, along with
77,798 shares of new preferred
Municipal Finance
better
share
were
thp
bodies like the
has
.
October 16, 1944.
and dealers
Underwriters
per
a
of 50
31,
artmiittprilv
.
Company, payable July 31, 1944 to
Encouraging Response
•
.
stockholders of record
bonds.
new
f
dividend for the third quarter of 50
cents
ing, if allowed, would mean a sav¬
ing to the Terminal Company of
some $24,000,000 over the life of
the
'.{
The Board of Directors bae declared
jected offering of $34,500,000 of
new first mortgage bonds, due
ment
the cioao
Universal Pictures
with 11 others in placing before
Federal finance has gained great
momentum.
Through efforts of
Officers Association and the
American Planning and Civic As¬
sociation, the co-ordination move¬
of
y-\>y
The road is thus free to join
the
as
JAMES L. WIOKSTEAD, Treasure*
Of COUrse, tO jurisdiction
of the Interstate Commerce Com¬
mission.
record
of bU8lness
that issue,
tracks for
SUbjeCt
i
Brought into focus by planning
for the post-war
period, the move
to strengthen
municipal finance
by co-ordinating it with State and
g>penctr Helios & Song, 3nr.
osen declared on the stock, payable September 9.
m
...
life.
Jadson Large,
SecretarY'Treasurer.
Way Cleared For Big Issue
Approval by Federal court of
the petition of receivers for Mis¬
souri Pacific Railroad for permis¬
sion to participate in a plan to re¬
finance the outstanding debt of
i
of McGraw Elec¬
tric
following day on its projected of¬
-
.
Dividend Notice
road scheduled to receive bids the
from property taxes. The amount
contributed by other taxes has
-
August 11, 1944, at
holders of record
offering of $2,100,000
of certificates which
.'if:
of Columbian Carbon
Company have
receiving a price of 99.53, while
York, Chicago & St. Louis
bids for
of Buckbee
Buckbee
Quarterly Dividend
The Directors
New
Railroad received
Elect Buckbee Member
R.
Treasurer,
New York 5, N. Y,
CARBON COMPANY
Seaboard Air Line sold $2,760,^
000 of certificates, due 1945-54 as
and Maturing
Co.,
Assistant
Pacific yesterday was the larg¬
est, involving $8,120,000 of 1%
per cents dated Aug. 1, to be is¬
sued against equipment costing
Put and Call Brokers
Frank
WILSON,
120 Broadway,
Three roads disposed of blocks
an
&
C.
few
New York Wheeling & Lake Erie, consisting
tribution to post-war prosperity.
City, has been elected a member of two series $1,140,000 of Series
What can they do?
Although of the Put and Call Brokers and J and $926,000 of Series K up for
this direction over the years. The
the
bids on July 19, with Erie Rail¬
problem of welding local, Dealprs Association, Inc.
average city now pays only about
erty tax. As a matter of fact, there
has been a considerable trend in
Directors has this day declares
of such securities this week, of
which the issue sold by Union
request to Adams & Co.
■
1944.
weeks, it is indicated by a recap¬
itulation of prospective offerings.
dealers
———Wmmrnii
f
COMPANY
dividend of One Do.lar and Fiity Cvnts ui.5w>
share, being Dividend No. 126, , on th»
Common. Capital Stock of this Company, pay¬
able September 1, 1944, to holders of said Com¬
mon Capital Stock registered on the
books
the Company ,at close of business July 28, 1944.
the road $10,150,0000.
the States have the fis¬
cal power to make a
The Board of
TOPEKA AND
RAILWAY
York, N. Y„ June 29,
a
Bidding for railroad equipment
trust issues promises to provide
in
is
FE
New
per
,
scope
ATCHISON,
SANTA
which
situations
"A";
Merchants
Cro wellDistilling;
Collier Publishing; P. R. Mallory;
General
Instrument:
Long Bell
Lumber Co.; Great American In¬
dustries; Mid-Continent Airlines;
Massachusetts Power & Light $2
urally ran with it.
preferred; Majestic Radio; MagThe lesson to be drawn from
navox Corp.;
Electrolux; Purolathis experience is not, of course,
tor; Brockway Motors; Mohawk
that local and State governments
Rubber, Moxie, Scovill Mfg., and
bear
responsibility for cyclical American Export Airlines.
forces
DIVIDEND NOTICES
OUR
Ward &
lars
193
Post-War Possibilities
Moxie,
and
Dumont
Laboratories,
Majestic Radio offer interes¬
'
stock.
/
.
Banking groups
are
pretty well
ting possibilities according to a
circular on the situation issued by
chance than
-, J.
F. Reilly & Co., Ill Broadway,'
organized with the expectation of l New York
ever before of
City.
Copies of this
moving out of the
buy State and local securities sphere of talk and into the realm entering bids for the issues. Pro- circular may be had from J. F,
with
Federal
monies.
It
would
of action.
a
x*.
ceeds
from
this
financing,
plus .Reilly & Co. upon
request.
stocks, the problem will take
different and better aspect.
The
countries of
the Southern
Metallic Money Or
(Continued from page 175)
into the their system functions in the open.
whole price
structure.
This is Of course, metallism imposes a
certain discipline on all partici¬
what led our government to de¬
mand the surrender to it of all pants, but that is as it should be,
1933.
gold in coin and
bars in
7
1
"Such
inclined to hoard
are
as
in which to
practice, all of them open, with¬
out encroaching on the one and
only preserve which, by every
right, primarily belongs to the
have
fields
many
Some may properly
raise the question of the freedom
of the individual to do what he
community.
pleases with his own property,
and this point, too, deserves con¬
sideration.
But, as between tol¬
erating hoarding and facilitating
hoarding there is a broad distinc¬
tion which should be recognized
well-being are
born of orderliness and restraint.
Not
so
currency
management
which is non-cooperative in es¬
in
rules
or
restrictions whatsoever.
"When
victory
will
nent
is
in
won
Eu¬
great part of that conti¬
a
rope,
With
ruins.
useful
indulge
to
facilities
public
whim at the expense
his
of the com¬
No
common
carrier
should be permitted to transport,
munity.
no
to
on private account.
We
except—and license—pro¬
ducers,
refiners,
manufacturers
and banks.
Thus, when the cur¬
or
bar,
rency once more
of
becomes redeem¬
gold or silver on demand,
individual could transport his
hoard
his
in
conveyance,
own
own
privately
and stand guard
of action
would thus be respected while the
community could forthwith dis¬
it
cache
his
in
owned strongbox
it.
over
His
7
di¬
which
was
the
freedom
of
and
spread unemployment
everywhere. Thus was the ground
all
fears
of an undue rare¬
faction of its means
operations and"legitimate1 transac¬ the purpose of facilitating a com¬
tions.
For mass: movements of mon
war effort, would a common
capital seldom occur which are oeace effort be deserving of less?
not superinduced by speculative
Under lend-lease we didn't give
excesses
which, by undermining
away the products of our farms
confidence, ultimately : lead to and factories—we armed our allies
panic. Be it remembered in this against our enemy who, inciden¬
connection that a speculative ex¬
tally, was also theirs. When peace
change
operation
cannot
take comes, we need not .give away;
place without the cooperation of our stocks of precious metals, but
a
bank.
That no one can sell
we should lend-lease part of them
"short" a given amount of foreign
for our defense against our other
currencv unless a bank is willing
enemy—unemployment — which,
to
lend
contract ma¬
it until the
incidentally, is also our common
Regardless of the profit in¬ foe.
volved, no financial institution
"Scattered
throughout the
should be permitted to aid and
world are vast amounts of gold
abet
exchange
speculation.
All
and silver in the shape of coin,
contracts for the sale or purchase
of
foreign exchange for future specie and ornaments of all kinds
and description available for coin¬
delivery should be carefully scru¬
tinized and their legitimacy estab¬ age into money, provided mints
are opened for the purpose.
Mal¬
lished before being accepted.
A
distribution no doubt exists, and
simple order by the Central Bank
it is precisely herein that lendwould,, insure compliance by all
lease can bridge the gap, provided
member institutions.
tures.
"If hoarding is
discouraged and
exchange speculation is outlawed,
two
of
the
major
obstacles
to
monetary and price stability will
have been removed.
"Currency managers attempt to
control prices within national lim¬
its and, to do so,
it
is
international
first step
—
In lieu of
tical international
and
money
prac¬
system,
to
perpetuate their baneful
rule,
these
die-hards
proffer
clearing agreements to be super¬
imposed on a hodgepodge of dis¬
similar, often clashing, monetary
policies. Heedless of the shifting
sands at its base, these architects
are busy shingling the roof of our
future monetary edifice.
In con¬
trast, the advocates of metallism
offer a common medium, tested by
time
and
and
sanctioned
tradition.
by
Unlike
custom
currency
me^sement which is shrouded in
because
raising of the
to gold as to all other
so that "we cannot achieve
an
economy
of abundance on a
scarcity system of money."*
applies
things,
"Those concerned with the
lem
of
and prices,
money
while
static, and should give thematural
forces
room
for
that interplay
which
makes
for
equilibrium
dynamics
are
involved.
Because money is but one element
whereas
the price structure is
where
composed of
so
that monetary
it follows
many,
stability may more
easily be achieved than price sta¬
fixity of money is
whereas
fixity of
prices would entail so complete a
regimentation of all human activ¬
ities as practically to stifle life.
bility.
Even
conceivable,
contrasted
When
with
currency
management, metallism offers that
measure
of fixity which weight
and
fineness
constitute,
while
elasticity is provided by the con¬
production of the money
Thus is
the volume of
tinuous
metals.
maintained in a rea¬
sonable ratio to the growing vol¬
basic money
ume
of
those
things that
money
Moreover, me¬
tallism affords to all countries the
would
means
tional
tional
measure.
of
harmonizing interna¬
responsibilities with na¬
interests-in the economic
field because,
of
struments
identical
in
everywhere, the in¬
exchange would be
nature.
Under
me¬
tallism, money truly talks a uni¬
versal language. Why, then,-erect
a new Tower of Babel by adopting
managed currency?
"Never before
of production and distribution
been so highly developed; never
so
well geared as to yield divir
dends in well-being for all man¬
ery
tions
mon
reg¬
group
nor
neither transport, store nor
metal
once
facilities
insure
use
to
do
so
were
legally
maldistribution
of
■
discussions
it is to be noted that the matter
of national sovereignty has been
stressed with particular emphasis.
From this ostentatious refusal to
metals is being slowly cor¬
rected.
Gold is flowing .out of our
in
-
"In recent monetary
the
.money
country
•
substantial
amounts,
half
•
*Sir Charles Morgan-Webb.
Europe
j
until the United Na*,l
shall have agreed on a com-ii
monetary system, for the j
of which the Govrri
continue to strive,
panded
credit
contracted.
the
or
or
dearness
ex¬
Foreign
thereby at¬
are
or
are
equilibration
country's foreign commerce
by subsidies and quotas (exchange
and other controls being varia¬
principle). Sub¬
sidies create artificial cost differ¬
entials
nations,
between
while
quotas obstruct natural imports,
causing them to back up onto the
markets of origin, glutting them
and breaking prices.
"The
.
and
Third,
by
far
the
important, is the external
regulation of the currency by
manipulative exchange operations
most
whereby
of
value
the
the
cur¬
in its relation with other
currencies, is either raised or low¬
rency,
ered.
"As
costs
in
ured
are
earmarked?
fig¬
of
r
.
so.'
REMEMBERED', That?
thus be placed
IT
"BE
foreigners would
on
equal footing with Amer¬
convertibil¬
an
ican citizens to whom
ity of the currency into gold is
being temporarily denied.
That?
unmined gold in South Africa,"
Canada, Australia, Russia, Mexico,
Peru, etc., exceeds in volume the?
refined gold stocks of the United;
States.
That the future status of
gold constitutes a world — not?
merely an American — problem.?
That unless
priced by common
agreement, gold loses its monetary-'
significance and becomes a mere
to be exploited for;
unit, in its relation to
produces, cost differ¬
to -some, unfa¬
to others.
The ensuing
;V'|!
currency
favorable
entials
vorable
disequilibrium enforces, price re¬
adjustments to meet the new, arti¬
created,-.levels.. Thus,
act nor desire of their
ficially
through
no
countries
readjust
their
suit the
needs
alien currency
this
,
production of gold and silver at
the legal price, but will only buy:
or sell gold and silver in foreign
markets when, if and as it deems
it convenient or profitable to do
other units,
own.
j
the,Jpcal cur¬ commodity
alteration in the value of
profit."
rency,
a
everywhere
terms
be
against dollar balances, domestic
or
foreign.
The Treasury will
continue to buy all the American
"The Second is the
tions of the same
/.will
metal
No
according to
cheapness
of
rates as contrasted with
those ruling in other centers.
of the
gold and silver j
imports to and exports from theUnited States will be embargoed. ..
money
that carried
on
compelled to
are
price structure to
or
convenience of
management. And
is
process
as
continuous as
by management.
legitimate, ex¬
from
"Distinct
>*MVS.r
Does Not Look For Post
70i n
War Increase In
Price Of Gold
(Continued from page 176) ,.,'Jj
banking system was unques-;.;
tioned, it was only 8.7%. For puri-;
poses
of calculating this ratio,;
member
bank deposit liabilities
the
have been substituted for
bank
reserves
at
the
member;
Reserve
change transactions, based on the
flow
and
ebb
ofinternational
banks,
manipulative exchange
operations infringe arid impair the
most sovereign right of nations —
deposits with member banks hay.e
been
included although no re-:
serves
are
now required against
commerce,
that
controlling the value, or
of
purchasing power, of their own
currency. They are a' direct inva¬
sion of a country's -economy in
that
constitute-intervention
they
by one ration into another's in¬
ternal affairs. Any c<mntry prac¬
currency : management by
of manipulative exchange,
ticing
means
operations should, and can, at
once be stopped by being denied
the facilities essential to the com¬
of its
pletion
exchange transac¬
Vi'Av-'v/ST'y
tions.
operation is com¬
proceeds are
into
tangibles which
"An exchange
pleted only when its
can
be
exported
fronj the country
has fceen bought;
Otherwise it remains a mere credit
taken
been
such
interbank
deposits
haye-
net, and Government
deposits.
-Trri;
•
"(b) A potential source of irrvprovement in the reserve position:
exists in the stabilization fund. In
1934,
called
set
$2,000 million of the soprofit from devaluation was
aside
as
a
stabilization
fund.;
Of this amount
$1,800 million re¬
gold and could be added
the Federal Reserve System,,,
mains
to
as
The bulk of the demand
in circulation has been5
supplied by ^Federal R eservfe
notes.
On June 28,1944 outstand-'
ing Notes made a high of $18,832
million compared with a 1939 high
"(c)
for money
of
$4,980 million. The reasons can
be surmised, but the prin¬
whose exchange
only
entry on a bank's
country buys the
cipal ones are believed to be'^
higher payrolls to people not ac¬
customed to bank accounts or who*
gibles),
open
denied them.
"The
them?
they bought it, if the
in
and
establishment
jaooks.
If a
Exchange of
One cog is missing—that another,: then converts that ex¬
could seriously threaten it. Pro¬ kind.
vided the chief trading nations cog is money. All that is needed change into gold, and
either ear¬
adopted the metallic system, and to perfect the mechanism is but a marks that gold or exports it, the
agreed
to
protect it, currency modicum of wisdom, of ingenuity transaction is completed — the
management could no longer be and good will in applying those operation is 'covered;'
But if the
practiced against them. For non- elements which a kind Providence exchange
purchased:;; cannot be
coonerators might buy, but could has placed in our hands. Why not converted, into gold (or other tan¬
individual
no
hostilities
'When
cease,
operations, where¬
and
currency
converted
has the machin¬
-
"
of open market
prob¬
aiming at stability in both, must
realize that the economy is not
would be the economic
mystery and practiced in secrecy, and if we succeed in losing
mere
granted—is no solution,
the
quantity
principle
taken for
pricing of both metals by common
agreement. The second would be
the
protection of the precious
metals and the exchanges from
cause
a
The
fi¬
world
of
gested by its producers — whose
altruism, perhaps, need not be
a
money
gold alone is to
burden
the
price of gold, whether or not sug¬
workable
system.
A
restoring
of
from if
come
nance?
they needs must
abuse by hoarders and speculators
cope
with
external factors to
through the adoption of those le¬
which internal prices react. In so
gal measures already suggested.
doing, they at once invade for¬
We could then open the mints to
eign fields, inviting retaliation in free
coinage with the certainty
kind
which
leads
to
economic
that the system would work be¬
warfare
the straight road to
armed conflict.
But where is this hard money
carry
practiced with the sole ob-
iective
currency
hard money
to
Different expressions of
the
same
desperate nationalism
were found in tariffs, quotas, ex¬
change depreciation and controls
which only
backing could stabil¬
Chinese
the
tolerated.
ernment of the United States will :;
diverted
scarcity of goods; it is also evi¬
dence of the dwindling value of
This, of course,;-,
And so, by
prices.
be
ulation of the currency by means
funds
2,000% of the Chinese price level
is not alone an indication of the
']
the internal
is
tracted
purpose.
volume
First
"The
short-term
achievement
the
I
and
way of disillusioning those who 7i
might still plan on our tacit co-,$
operation in the management of j
their currency, it is suggested that
the following policy be adopted r
and proclaimed:
v
;r5
pends on the coordination of the
three.
b
tempting to control internal costs.;.
and prices, perforce must reach,*
out
and
interfere with foreign
one
internal, two external, each
indispensable to the others, so that
the success
of management de¬
petitive bidding for the few ounces
of gold so reluctantly offered by
government
at
its fortnightly
sales. The skyrocketing by some
adopted the system
management for the
reduced
common
management, by at*
that currency
management is
combination of
sets of operations,
by
of
trade
too,'
the
by
distinct
position, that India be starved
of
silver by import restrictions
and its masses subjected to com¬
prepared" and * the
road paved
which later was to be traveled by
of payment. the dictators. It will be for us
"There is a strong tendency to and our allies to decide whether
control the movements of capital that tragic blunder is to be re¬
over
the exchange.
Here again peated.
the freedom of the individual is
"By what practical method are
threatened by those who fail to
we to
avoid it? If the principle
differentiate between speculative
of lend-lease was established for
miss
gold. When contrasted with a
1 production ratio, a 70 to 1
ize.
which
"Currency
three
to
else's expense
currency
a
cannot
it
system unless all concerned
its creation. At this
achieved
cial
of favorable balances at some one
able in
the
desire
sole
1 to gold dur¬
in the ratio of 7 to
pressed itself in economic warfare
waged with particular ferocity in
the monetary field. Those whose
should
produced
Although
significance.
vided former allies and which ex¬
depository to store, no insurer
gold and silver, in coin
problem,
common
for,- as matters now stand, the
price relationship
between the
two metals has lost all economic
our experience
interbellum period,
when the sheer pressure of eco¬
nomic necessity engendered that
cover
the
simplify
review
nationalism
eat
costs
the
extreme
we
and
aspire to
we
cannot
accept competition on any terms.
In this connection, it might be
preserve the individual's freedom
of action, but let us deny him all
For
•
cake
our
can
juncture it may be useful to in¬
quire as to how managed currency
functions and how to cope with it:
its
by all concerned and dealt with
accordingly. By all means, let us
to
'have
nor
price ratio cannot endure in a free
economy. Nor does it make sense,
with that country's strong finan¬
normal
sacrosanct.
as
of
retention
do most good. Were silver to be
remonetized,
it
would further
life.
resume
succeed if all concerned insist
the
contribute to
Spurred by its dire needs and its
determination to survive, it must
during
premium markets, prices every- ,)
prerogatives where act upon, and react to, all)
which they would have us regard other prices, then it is equally true j.
can
on
money
ing the past five years, silver is
selling at about l/70th the price
to
'rights,'
and it is there that lend-lease can
decimated and impov¬
material resources dis¬
when not completely
Europe will require a
population
erished, its
organized
destroyed,
decade
in
be
greatest need of metal,
will be in
manipulative in character
practice, defiant of any
and,
soon
there is the risk — his the gamble —
currency
managers
don't j.
of and
— •'
f $
non-cooperation, which no amount gamble.
"If it be true, that by their im¬
of drenching with the essence of
ports and exports all countries ar&
'sovereignty' will remove;. It is a
lame excuse which does not ex¬ interdependent, and also true that, ?
plain how any cooperative effort as trade naturally gravitates to the (J
quantities. The same may be said
of South Africa, Canada and Aus¬
tralia. It is Western Europe, the
Near East and the Far East which
for confidence and
sence,
by the war,
produce in increasing
undisturbed
fields,
must
/
unmistakable;: odor
the
issues
Hemisphere will, by their very
possessions, have a new interest
vested in metallism. Russia's gold
the element of instability
stored
a
certain
'abdicate'
our
on
Thursday, July 13, 1944
& FINANCIAL CHRONICLE
THE COMMERCIAL
194
chooses
to
the buyer
know
operation ..remains
'uncovered.' Until he
liquidate;'his positing
is 'lockediin.', He will
the
and
what .he
pai-d
change in terms of
for his ex¬
his
own cur¬
he never can know
what he will receive for it until
rency,
he has
but
liquidated his position. His
have moved
lished 'new
more
*
and have not
estab-1
banking connections;
pocket money due to higher
and
prices
larger
incomes
per
use
of cash instead : of
checks for "black market" opera¬
capita;
tions
and. tax
rency
evasion; and curt;
payments to the
armed
forces.
The demand continues but
inasmuch
as
it is not the result
question as to the solvencyfpf
the banks, it is reasonable to ex-;
pect that in time it will be re?;
duced, and eventually, although
any
perhaps not until after the war}
Tin
VVH-dt-WIM
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4298
160
On Winning The Four Freedoms
use
such ticular suspicions of the intentions
this radio' broadcast of the man, 5>dnklin D, Roosevelt,
.to seek from the President, both but becaiise of my suspicions of
as • President
and candidate, in¬ the effect upon any man of so
therefore,
occasions
quite uhable to support their sov¬
ereignty?
And, today, is it not
inevitable that Europe between
the
(Continued from page 171)1
peiled,
to
as
borders
of
Russia
the
and
English Channel will be the foot¬
ball of the rival power politics
Moscow and London, unless
of
a
Europe of free nations can gain
strength through confederation on
pertinent to the great long a continuance of the vast
the Swiss order or at least through
decisions, upon which not only the powers of the Presidency.
Few,
strong regional federations?
On
destiny of America but the world's indeed, are the exceptions which the
basis of what happened at
history Records to the rule that
hope of peace depends.
Teheran, are we not underwriting
I begin by gladly assuming the "power
corrupts
and
absolute
Russian and British power politics
sincerity of the President's belief power corrupts absolutely," Please
and so committing ourselves even¬
in', his Four Freedoms and the remember this preliminary state¬
tually to a third world war?
value of the contribution which ment as I begin my questions to
Even more serious is the situa¬
She made in his first term to so- Mr. Roosevelt, first on the alltion in Asia.
Is it not true, Mr.
| cial progress. I am aware that the important problem of winning the President, that even the Japanese
i military forces over which he is earliest peace that will last.
have already granted to the ter¬
Commander in Chief, stand on the
It is true that the most stu¬ ritories
which
they conquered,
threshold of speedy victory.
Our pendous aggregation of
military a degree of self-government
great need is already not so much
power in history will soon bring which the United Nations have
'for Dr. Win-the-War as Dr. Win- the Allies
victory, even if that never promised?
Granting that
ithe-Peace. If, then, in this cam¬
military offensive is not paral¬ British Imperialism is better, or
paign, I ask sharp questions, for leled by any political offensive, less bad, than German or Japa¬
instance, about the effect of a based on a clear statement of
nese, can a restored British Em¬
! fourth term on democratic instipeace aims, directed not to Hitler pire in South East Asia last for a
'tiitions, it is not because of par¬ but to the minds and hearts of the generation
except as—perhaps—it
people of the enemy countries— may be held together for a while
| a return flow is anticipated. The yes, of the world. But if such a by American power at appalling
I return of a substantial part to the political offense even at this late cost to
every American home?
banks is an important potential date should so weaken enemy re¬
I am aware that some of your
formation
i
post-war improvement sistance as to shorten the war by
! tq the banking position. The sug- one day or spare one American
gestion has been made that if the boy from agonizing death, if such
: demand continues, Reserve banks an offensive would save one Eu¬
should " issue
Federal
Reserve ropean town from the kind of
that war,
■Bank Notes which are secured by devastation
even
for
of
! source
'
Government securities,
the issue
Notes which
continuing
| Reserve
jgoid
i
instead of liberation, has brought to scores
of Federal of the towns and villages of Italy
and
require a
France,
;
is it not unforgive-
able to neglect it?
reserve.
And since the
:V(d) The Federal Reserve Act principles behind such a peace
requires payment of a penalty if offensive are exactly the prin¬
a
Federal Reserve bank fails to ciples uppn which the winning of
maintain gold equal to 40% of out¬ a lasting peace depends, is it not,
standing Federal Reserve Notes, Mr. President, a thousand times
and gold and legal reserves equal to worth, while to assert them in
35% of deposits. These ratios may words that the humblest peasant,
be
law, and in the
minimum has been
25%
a
not
by
changed
past
mentioned.
only in Europe but in Java
Burma
It
Of course, neither a
reduction of
can
or
understand?
is
reserve
nor
issuance
Bank
Notes
terribly clear that there
requirements has been hp such statement of the
Reserve positive $ims; of the United Na¬
would improve the tions.
The dbmand for uncondi¬
Federal
of
real banking position, but they
dicate the expedients that can
used before
a
is necessary,
in¬
be
tional
surrender
for them.
is
no
substitute
That merely masks the
revaluation of gold divisions
"2
tions
■
.
among the United Na¬
themselves, while it tends to
unite to the'bitter end the peoples
;'t'The high prices for gold in the
gold markets,'' con¬
cluded the author, "are the Result
of special war-induced circum¬
of the enemy countries and their
rulers.
Surrender will not really
be unconditional..
In Italy, that
world's free
phrase meant in
are unlikely to have high-sounding
important influence on the reality a long series of negotia¬
tions, not with the forces of a ris¬
XL S. price for gold; the condition
of the Federal Reserve System is ing democracy, but with the King
and Badogliq, without whose sup¬
stronger than indicated by pub¬
lished
figures,
and can be port Mussolini : could not have
come to power, or held power, or
strengthened and its weaknesses
entered the war as Hitler's jackal.
qnitigated by various means; pres¬
And today we read that workers
ent indications are that interna¬
in liberated" Rome get less than
tional currency stabilization with¬
stances and
an
a free gold standard
attempted; and in the im¬
mediate post-war period the prob¬
lem will be to prevent an infla¬
tionary rise in prices until pro¬
duction of peacetime
goods is
again available and the deferred
out
a
return to
will be
demand satisfied.
:
>
words
those of your
given
a
little
encouragement
to
peoples to hope, but
declarations, notably
that at Cairo, have been omi¬
nously silent. And they, not your
private wishes, are what count.
It
is,
for example,
commonly
official
understood
that
effort should have
agree
been made in
nears
9
its
end
i
in
an
of
we
have had
concerns
the
post-war machinery for enforcing
peace, rather than the nature of
or
major
powers.
The
only
great
have
we
right to
a
know now,
not too late for cor¬
the
commitments
you
rection,
have made to
No
Socialists
that
road to peace
City Bank Holds
Time is Not Ripe For
Monetary Stabilization
(Continued from page 173)
"While
better than
there
in
Nat'l
Allies.
our
knows
one
is
no
we
easy
world in which
a
has
the
international
been
not
discussed
bank
much
as
the fund, the objections from
the standpoint of magnitude and
as
the complete elimination of Ger¬
credit risks
and Japan would leave so
many hates and so many rivalries
for power and profit.
But we
shall march straight into a third
world war, far worse cursed than
this by robot bombs and oblitera¬
fact, with the much more com¬
plex and technical nature of the
tion
rectors
many
bombing, unless
enter
we can
the road which leads to a federa¬
tion of free cooperative common¬
wealths.
History and logic alike
it clear that
make
rivals
can
power
of the
It
resented.
alliance of
no
endure
will
nor
Big Three
is
not
the
go
un-
cartel
a
tions
the
between
and
weak
strong than imperial exploitation,
will
democracy
bringe pace to
save
and
mankind.
I
have
not
than-raise
time
to
more
certain
other
questions.
are
all
bound up in the winning of a
decent
world.
Will
you,
Mr.
President, in this campaign tell us
specifically how you expect after
em¬
Dr. Win-the-War?
our
weather
tice
natural
Can
resources
olies
in
save
ourselves
sions
should
bank
the
not
be
that
deci¬
made
by
a '
majority of whose di¬
debtors.
are
"Fortunately, the choice before
conference is
not just be¬
tween the plan* of the experts and
the
plan at all. There
that can and
no
things
are
certain
should
be
done at this time.
"The first
vision
of
chinery
of these is the pro-,
some
for
permanent
continuing
tionaL-Consultations
on
matters.
This
of
kind of council
some
tution to
ma¬
internacurrency
might take the form
serve as
or
insti¬
regular meet¬
ing place and focal point for study
and discussion. Such an organi¬
a
leave
we
ful in
the
immediately use¬
dealing, for example, with
question of money for
occu¬
pied territories. In this way a
habit and procedure for collabora¬
tion would naturally develop that
would be
helpful later on in fix¬
ing the value of currencies and
in meeting other problems in connection with the repairing of the ;
.
pro¬
vided until Dr. New Deal became
countries, as it was made
Greece, to feed the children of
Hitler's victims, but in action you
felt
compelled to
appease
Mr.
involved, it becomes
important
more
In
zation could be
do
briefly
They
very
even
equally great.
are
bank credits
of
empires but economic and politi¬
cal cooperation of peoples who
will
begin to practice mutual
forgiveness and find other rela¬
in
and monop¬
shattered
fabric
of
international
trade and
exchange. There is no
reason
why consultation should
wait on the perfection of credit
then
by
arrangements which are in fact
Churchill.
The American people, orgies
of government spending not needed for gome time to
come.
at the price of a vast increase in
Mr.
President,
are
wondering
"The second of the steps that
what further concessions to new interest-bearing
debts?
Is this
needs to be taken now is the for¬
war
If not, what is?
you may have made to ap¬ your proposal?
mulation of a program for aiding
What progressive social legisla¬
pease Mr. Churchill or Marshall
Great Britain in reestablishing her
tion have you in mind, or had you
Stalin?
You have no right, on your own come to the end of your plans by monetary and trade positionrand
Where do you stand on particularly for dealing with the
record, to resent this question. 1937?
problem
of
her
war-^
You wqre insistent in the last thev> conscription of labor in w,ar special
And on permanent '! panded "blocked" balances, This^
campaign that you would keep" anci peace?
is one of the key questions that
our boys out of foreign wars and
military conscription of all our
needs to be dealt with as a pre¬
that your acts which logically led youth after this war?
No one doubts, Mr. President, liminary to determining exchange
to war, were directed to peace.
rates
and reestablishing
multi¬
Those acts, we have just learned, your personal good will to men of
lateral trade and clearings.
included the destruction by mili¬ all races, yet you almost killed
"It is wholly fallacious to think;
tary
violence
of
two
German your own Fair Employment Prac¬
three
bor. ^
I
the'
stations
months
,1
on
before
^>
Greenland
Pearl
V';.
Har¬
war
not the Machiavellian process
and
disaster
from
Commission, you have coun¬
racial discrimination in
the
peace,
private hands
tenanced
armed
-
opposed American entry into
never
hind
and
and
forces
have
you
put your official power be¬
the drive for anti-lynching
anti-poll
legislation.
tax
What
do you now propose to do
in this dark field of racial strife?
The
political
which
reasons
in
silenced
ill-prepared.
Only re¬
cently, Secretary Hull has insisted
that the Japenese attack at Pearl
Harbor was a pure and unpro¬
voked surprise.
I have questioned
so
most
world
of
the
countries
of
the
of
devoid
purchasing
power and dependent upon this
country for huge credits in order
to get going after the war.
The
fact is that, as a result of vast
expenditures by both Great Brit- *
ain and the United States, the
as
rest of the world has accumulated
bound up
are
you
party alignment' in America
which jeopardizes democracy.
Do
a
on
Bourbons like
bosses
Southern
the
Bilbo
were
of
huge reserves in dollars and sterl ¬
ing—to the extent that manycountries are threatened by seri¬
you believe that a party like your ous inflation. For example, South
American countries already have
own, which rests organizationally
have
and
the
Northern
by which you manipulated the
like Hague, both of whom, espe¬
people towards war injurious to a
democracy that rests upon truth cially the latter, you have con¬
tinuously appeased, can ever be
and
to
the
understanding
on
which lasting peace must depend? the vehicle for achieving plenty,
peace and freedom?
This seems particularly true of
My questions, Mr. President,
your relations with the Japanese
Government which you so long have followed the major divisions
of the Socialist platform, which
appeased and against which we
der such conditions, the purchase
difference will be that America
of./gold mining stocks as hedges
will be in rather than out.
Now,
against, possible dollar deprecia¬
as
you may remember,
back in Mr. Hull—so far without answertion does not seem timely.
This
I join in con¬
1932, when you and your party on his statement.
conclusion,
however,
does
not
did
not
approve
of America's demnation of Japanese imperial
preclude the purchase of stocks of
entry into the League, I, on the aggression and of the attack on
good gold mines for diversified
basis of my party's platform, ap¬ Pearl Harbor without declaration
portfolios, nor of speculative is¬
proved it under certain conditions. .of war.
But I still ask whether,
sues based on ore body develop¬
I can not therefore be. accused of as
Mr.
Churchill
believes, you
ments, provided they are reason¬
enmity towards the League.
But would have, put us into war any¬
ably priced without the benefits
will you not agree, Mr. President, how.
Did the British Prime Min¬
oh an increase in the price of gold.
that it is nonsense to say that the ister know more of your inten¬
^"The above conclusions are lim¬
League which broke, primarily on tions towards the Japanese Gov¬
ited to the war and to the post¬
European problems, * was. damned ernment than the American
war period during which; the an¬ by the failure of America to join people? That he did seems evi¬
ticipated post-war demand is be¬ it?
Was it not rather damned by dent from his uncorrected state¬
ing satisfied. Gold prices beyond its own. inherent
weaknesses, by ment to the House of Commons
that period have not been dis¬
the rival imperialisms which the on Jan. 28, 1942, that you led him
cussed
because
of
the
greater Peace of Versailles perpetuated, to believe at the Atlantic Confer¬
number of uncertainties and be¬ and
by the impossibility of man¬ ence, "that the United States, even
cause such time is too far in
the% aging a Eurone organized in a 'f not herself attacked, would
future to be of current financial* crazy-quilt
of
in the Far
nominally
sov¬ come into the war
importance."
ereign powers most of them East."
apd because
other
was
inferno
war
old controversies, but because
our attitude to enemy peoples in
part may depend on the answers,
pri¬
vately with the unanimous vote of the war, to provide the full
both Houses of Congress that an ployment which was never
you
mation
The
questions, Mr.
desire to stir
no
up
colonial
the
these
raise
more
destruction, yet our
.American boys are left to guess
the kind of peace for which they
fight and die.
What little infor¬
under German rule.
;
i'l
195
President, from
explicitly which alone
Vice-President, have in America
still
and
in the belief that, at
she could
better
serve
democracy at home and, in the
long run, throughout the world.
But
I
always
recognized
the
strength of the case that could be
made, openly and frankly, for our
entry into, war against the cruel
German- and
Japanese aggres¬
sions.
Whatever
your
motive,
""In our opinion, during the war
the peace wq are to enforce. Hence
the immediate post-war period,
this "inquiry.
it is unlikely (a) that an increase
Mr. President, the. plan which
in the U. S. price of gold will be
forced by monetary or foreign ex¬ you have called "the great de¬
change conditions, or (b) that a sign" sounds to most of us like a
revised League of Nations, more
voluntary increase will occur be¬
the Big
cause of the desirability of avoid¬ definitely dominated by
ing all. measures likely to stim¬ Four, in reality the Big Three,
than was the old League by the
ulate inflationary tendencies. Un¬
7
IS
in
busy life you may have
overlooked.
I
am,
therefore,
your
sending
know
ing
you
our
your
a
copy,
positive
4qur
more.
You
gestive,
as you
wlil
for achiev¬
so
case
you
freedoms—and
find
may
it
sug¬
have,found former
am
inviting
dollar
tional
$3,000,000,000 of gold and
exchange, while interna¬
sterling balances accumu¬
lated in London are estimated as
as $8,000,000,000. Even some
of the occupied countries, notably
high
France, have substantial holdings
of gold
in' safekeeping abroad.
The countries that will have little,
foreign
no
or
purchasing power
will be limited.
"The
question
thus boils
a
of credit needs
itself down largely to
British problem
British ought
the
which we and
to be able to
deal with between ourselves out¬
side
of
any
blanket
monetary
program."
socialist documents.
And I
over
you, my
lis¬
teners, to consider this speech,
Rail Situation of Interest
alongside of our platform which
Grand River Valley Railroad,
you
can get by writing to the first 4s of 1959 offer
interesting
National Headquarters of the So¬
possibilities according to a circu-,
cialist Party. 303 Fourth Avenue,
lar being distributed by Adams &
New York City.
Peck, 63 Wall Street, New York
We are in the deepest earnest
City. Copies of this circular may
when we tell you that we are in be had from the firm upon re¬
this campaign solely because we
quest.
believe that plenty, peace and
freedom
for
yourselves
and
the
generation of your little children, you.. You can save yourselves,
but not until you will make po¬
whom you long to save from war's
litical action mean far more than
worse
destruction, depend upon
it means today in America.
And
the nrinciples we have, set forth.
that requires a great Socialist vote
Leadership is important but no
blind trust in any
leader can save
in 1944.
Thursday, July 13, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
196
NOTICE OF REDEMPTION
1
Municipal News & Notes
idealistic
and grandiose, made with far
less consideration of costs and
ability to pay than hoped-for
able nature, there
is every reason
expect continued strength in
municipal bond prices for the du¬
ration of the war, at least, Halsey,
Stuart & Co., Inc., point out in
the current edition of the firm's
annual Mid-Year Review of the
Municipal Bond Market. It is also
to
firm
questionable,* the
whether
level
the
Divisions
dated
July 1, 1940, of the denomination of $1,000
each, numbered from 201 to 1250, inclusive,
bearing interest at the rate of thiee and one-
large
a
outpouring of new state and mu¬
nicipal bonds can be confidently
expected in the post-war period
tion
inclusive,
according to the Review, "in¬
fluenced too' much by acceptance
blue
prints
actualities and
as
by analogy with the situation fol¬
lowing the last war when, it is
true, there was a pronounced up¬
turn in the volume of state and
of
municipal flotations. The Federal
various
then
debt
vastly
however,
was,
shall have
we
approximate the peak of
potentialities, interest rates
can
hardly be lowered without
weakening incentives for accumu¬
lation and, with any prospect of
those who
now
contemplate
volume
a
of post-war
municipal borrowings
in unparalleled amounts it states
the volume of new issues
moderately
from
recent
levels must,
of course, be expect¬
ed. Very probably there will be
increase in the volume of
an
enue
further."
increase
"some
that
rev¬
bonds, together with reason¬
obligations
able increase in direct
Turning to the post-war out-
to
for accumulated needs of
years and the really es¬
sential requirements of the post¬
war period. Particularly will this
1 look, the
Review states that the
trend in prices and emissions
will be determined by national
and international policies and
be
by the general economic situa¬
tion, particularly in such mat¬
ters as the volume of produc¬
tion, taxation, inflation controls
above all, the
and,
latitude or
lack of it allowed to private en¬
terprise in working out its own
and
the
general problems."
While commenting on
which
areas
ex¬
perienced large growth during the
war
which
and
their
gains
low. As
in
able
are
the
hold
to
fol¬
to
years
certain
other
cities
and
opinion
the
ments,
"caution
that
based
on
is
expressed
is
ditions, we are inclined to be
overly optimistic about their con¬
tinuation after the
The cost
war.
of
municipal government will al¬
certainly be higher in post¬
war years. The higher wage level,
the increased personnel necessary
to resumption of normal, possibly
expanded operations, the increas¬
ing introduction of pension and
most
retirement
and the higher
materials, all point to
higher costs. A very large amount
cost
plans
of
of deferred
made
up
often
maintenance must be
from
and demand will arise,
which
sources
will
but little of the cost, for im¬
provements which if authorized
carry
will
add
costs of
not
only to debt, but to
as well.
upkeep
centum per annum.
Nebraska Division Revenue
briefs
changed
and
were
per
$1,000 each, numbered from 1041 to 22000,
inclusive, bearing interest at the rates of
two and one-half, two and three-quarters,
three, three and one-quarter and three and
one-half per centum per annum.
Revenue
Division
Nebraska
Western
dated January 1, 1942, of the de¬
of $1,000 each, numbered from
Bonds,
inclusive, bearing interest at
and one-half, three and
three and one-half per centum per annum.
Holders of the aforesaid bonds are noti¬
fied to present • the same
at any of the
places of payment specified in said bonds
on or before August 1. 1944, for redemption
at the respective redemption price on said
redemption date with respect to each such
bond as is set forth on the face thereof, and
are further notified that interest will cease
to accrue on said bonds after the date so
8300,
of
238
to
the
rates
within
filed
weeks, and the parties
have
comes
Securities
the
to
with¬
POWER DISTRICT
PUBLIC
CONSUMERS
By: V. M. JOHNSON,
General Manager.
Dated: July 1. 1944.
to
us
Dealers
now
Com¬
mittee filed its reply
'
-
circum¬
stances is the 5% spread policy
under
that
tends
enforceable
or
no
does it change or
of the elements de¬
terminative of business conduct
affect
any
enforceable!
Not
is
good
Association
What
its enforcement?
•
for
standards
forth in the letter of Oct.
V
rejected this request, the fact
effect
upon
upon
which decisions have not
been
rendered?
What is its ef¬
in
tees
letter?
The effective date for
enforce¬
of the standards set forth
in the letter would be the
of receipt by the member
date
and in
event later than Oct. 31,1943.
The standards do not
troactively.
apply
Therefore,
re¬
pend¬
remains that, for the second time,
the Association sought an advant¬
ing complaints and transactions
of a date prior to Oct. 25, the
age to which it is not entitled, the
filing of a rebuttal brief under
said, on economic conditions.
It the alleged guise that it is merely
will also depend on a proper allo¬ a reply brief.
cation of taxing powers between
This whole set up and attitude
date of the letter, would be con¬
"Whether
increased
taxes
will
parallel these increased demands
depends primarily, as has been
the Federal and the local govern¬
ments. Through income and ex¬
profits
Government
cess
taxes,
the
Federal
has first call
now
on
the taxpayer's purse.
If national
income is well maintained in post¬
war
years,
the
requirements
of
both branches of government can
be adequately met, but if reduced
to
a
not
point where taxpayers
meet
the
combined
can¬
demands,
the local governments will be the
chief sufferers."
On
the
question
debt control and
the
Review
"Post-war
of post-war
new
has
emissions
this
planning
to
by
say:
states
and municipalities has assumed
almost
universal
proportions.
makes
us
NASD's
whether
wonder
conduct
and
crassness
is based upon the belief that the
issues
are
before
a
friendly
forum sympathetic to the policy
which
has
been
foisted
upon
securities dealers.
We
re-assert
sidered and disposed of in
with
prevailing prior to that date.
Unenforceable! Then why
sup¬
port the policy before the Com¬
mission? What type of straddling
is this?
This
contention—
ment
new
a
stature in word
of
a
claimed unenforceable
—that those in .the securities field
cases,
since
the
5%
philosophy,
right to be informed what policy, interpretation and yard¬
conferences, if any, between SEC stick—all dodging substitutes for
and NASD preceded the birth of the word rule which it really is—
the 5%
spread limitation yard¬ has gone into effect. For the first
stick.
Won't
Security Exchanges Can Now fay
N. Y. Slock Transfer Taxes Thru Clearing Houses
The New York State Tax Commission, under
ter
508 of N. Y. Laws of 1944, has issued
July
1,
of any
1944, whereby it will
you
agree
for members
necessary
registered securities exchange in the State to affix the stock
on their stock sales, regardless of whether such
sales
made
were
Under
the
on
the floor of
arrangements,
new
the
member of
the tax
on
of
an exchange will pay
"sale, delivery or trans¬
stock
other' corporate
or
certificates" to the clearing house
with
affiliated
which
he is
a
the
exchange of
In cases
member.
broker
a
dealer
or
mission.
After
York
Stock
consultation be¬
a
the
of
Exchange
Exchange,
the
it has
report
to
the
Stock Clearing
Corporation, must itemize sep¬
arately the taxes due on
York
Stock
Exchange
through '
(Insert
Federal
and
applicable
this
to
been
have
paid
;
/'
name
of clearing corpora¬
tion)
;.
•
(Member securities exchange) Y
:
"Such certification shall bear the
facsimile signature of the broker,
(1) New
the
and
rubber
shall
stamp
be
kept in possession of the broker
and used only by him or his duly
designated representative."
A
similar
rubber
prescribed
certification of the taxes
paid .through a stock clearing
corporation, is to accompaany the
stock or other corporate certif¬
stamp
icate when presented
for transfer.
1100, and
STB
1101)
are
required to be
filled out by brokers and dealers
in reporting daily tax payments to
the clearing corporation, and by
the clearing corporation in report¬
ing remittances to depositaries of
Printed
the
forms
(STB
State Tax Commission.
transac¬
York Curb Ex¬
change transactions, and (3) all
New
(2)
tions,
State
taxes
transaction
New
and
been de¬
cided that, in the case of dual
membership in
the New York
Curb Exchange and the New York
Stock Exchange, State taxes shall
be
paid
through
the clearing
corporation
of
the New York
Stock Exchange.
However, each
broker or dealer in making his
Curb
York
New
stamp
more
officers
the
tween
the counter.
over
or
has
than one
exchange, such broker or dealer
may designate the clearing house
to which he is to pay the tax, and
such designation, when once made,
is irrevocable, unless a change is
approved by the State Tax Com¬
in
exchange
a<?-
"Trading With Enemy"
,•
other transactions. Brokers or
adhesive
stamps
as
means
a
making their tax payments.
It is required under the
of
new
that
each clearing
corporation to whom a report on
tax
payments due is made by
members, shall on the business
day on which it receives any such
report, remit to the depositary
designated by the State Tax Com¬
mission the aggregate of all taxes
received
by
it.
The clearing
corporations, in turn, are author¬
ized to charge the accounts
of
members with the amount of taxes
regulations
in
settlement state¬
their regular
determination
is
now
a
Govern¬
the
that
Republic of Finland
of the
ment
puppet of Nazi Germany,
and that Finland is
country oc¬
a
cupied by and under the control
of Germany he will invoke his
under the trading with
act with respectY to
Finnish property in the United
powers
the
enemy
Mr. Markham said that the
States.
Alien
Custodian's gen¬
issued and
Property
eral orders previously
applicable to other enemy occu¬
pied countries now apply to Fin¬
land.
It is further stated in the
announcement:
"Particular
•
.
attention
was
di¬
4 of the new reg¬
rected to general orders numbers
ulations, "Every broker executing
or
effecting a sale, delivery or
5, 6 and 20, which relate to prop¬
Under Article
paid
corporation
taxes
where
are
erty
an
interests of
or
enemy
country
persons
or
within
enemy
oc¬
clearing
cupied territory involved in court
shall impress by rubber stamp on or administrative actions or pro¬
the memorandum of sale for each
ceedings and to .general orders
transaction a* certification
sub¬ numbers 11- and 13 relating to
through
a
stantially in the
"It
is hereby
following form: patents,
certified, that the
this has time where a mark-up exceeds
been a most significant silence, a 5
%,• a duty is • imposed on - the has occurred,. all this in a trial
silence, as we believe, based upon NASD member to show to the before a committee of his com¬
fear of the consequences?
satisfaction of the Busines Con¬ petitors.
.
duct Committee that no violation
Clever, these Chinese!
Comes the highlight of reces¬
.
be
longer
no
authority of Chap¬
the regulations, effective
transfer tax stamps
transfer
is a change in
elements of business conduct
We'll say there
the
a
ieuikrs Gf
ments.
is
gymnastics, directing the enforce¬
hitherto met with complete silence
have
line
policies of the Committee
policy.
our
vY Y'Y;-; Y Y,'v'
* '
deal¬
Powers Invoked Toward ;;
ers who are not members of any
securities exchange registered by Finland
consideration of trans¬
of a date prior to the the Securities and Exchange Com¬
Alien Property Custodian James
mission in New York State will E. Markham announced on
July
continue to use the stock transfer
1
that
in
accordance with the
policies to be pursued
by Business Conduct Commit¬
fect upon
no
learn that the Commis¬
the
its
is
What
25?
of
pending complaints—complaints
to the Commission for more time.
sion
did the
Why
it?
direct
ment
we
* Y
surface.
where
sion! The Association now con¬
brief. Where¬
upon
the
NASD after
gaining
physical possession of it, applied
While
-3
and not only
membership
actions
reply.^?
Information
that
were
additional week
an
in which to
two
,
:'■/
Reportedly his cable wordage greatest of all delegations
consulting Moscow on fund-bank plans, but conducting
from here his regular official duties.
on
fer
fixed for redemption.
"What is the effective date
ex¬
:;v
Y'
Chief Russian
two
enforcement
be
*'
nomination
set
to
v
is being cut.
Variety commodity "stabilization" and "pool" ideas advance here,
,
all
Y/
Eastern Nebraska
dated April 1,
Eoffi Shoulders
that
insisting
centum per annum.
Division Revenue Bonds,
1941, of the denomination of
three
and
Carrying Wafer On
(Continued from page 171)
mittee, the Commission ruled
possibility, although
Delegate Stepanov, Deputy Foreign Trade Com¬
missar, rumored much more important Soviet figure than appears
from the NASD letter
of Nov. 9, 1943, sent to all District
Business Conduct Committees:
if,
necessary
per
We quote
existing favorable con¬
a
15,-1940, of the de¬
nomination of $1,000 each, numbered from
341 to 3981, inclusive, bearing interest at the
rate of three per centum per annum.
Central Nebraska Division Revenue Bonds,
dated January 1, 1941. of the denomination
of $1,000 each, numbered from 453 to 6750,
inclusive, bearing interest at the rates of
two and one-half,
two and three-quarters
areas,
war."
Another such conference is
predicted.
ment" and "reconstruction." Boys will be boys when the pie
Northeastern
Bonds, dated December
cases.
corollary to this, how¬
/Y'<;vY'//-/j
ever, consideration must be given
Well, sir, you can knock us
to the permanent losses in indus¬
over
with a feather. What next,
try and population suffered by and do wonders ever cease?
which, in consequence, will have
ing favorable financial status of less need and capacity for capital
most state and municipal govern¬ expenditures
than
before- the
'
i
world bank give approximately equal attention to "develop-
bearing interest at the rate
a
the exist¬
voice in
remains un¬
vote
;
difficult questions.
not here
15,
war
true of those
their
Harry White reveals the conference must end by July 19, con¬
ceivably may adjourn leaving some questions unsettled.
Parities
will be settled here only "in principle."
Quotas are proving very
Valley
pay
the
plan
Mexicans today disclosed Latin Americans are
850,
three
.;
Dewey's statement to me coincides with reports Poles and others
saying they will want constant and liberal post-war credits.
are
Division Revenue Bonds,
1940, of the denomina¬
of $1,000 each, numbered from 73 to
of
this
*
annum.
dated November
are,
of
Nebraska
Southern
Elkhorn
their
ts
annum.
per
,;
•
that
reason
present level of municipal this
time, nor had we at the end,
prices may well prove to be the of the last war the painful ex¬
absolute high, the bond house in¬
perience of a post-war deflation
dicates in saying that "it is diffi¬
to temper our post-war
enthu¬
cult to anticipate logically any
siasms."
'
■
further important gains." In elab¬
Although Halsey, Stuart & Co.
orating on this thesis, the review
Inc.
question the reasoning of
notes as follows: "Certainly taxes
•
centum per
per
existing facilities."
smaller than what
rather than contract
Revenue Bonds,
Division
Revenue
Bonds, dated October 1, 1940, of the de¬
nomination of $1,000 each, numbered from
34
to
1098, inclusive, bearing interest at
the rate of three and one-quarter per centum
The
Should expand at least
Division
Columbus
half
Under
changed."
particularly described
more
to-wit:
follows,
as
'
being
date, being
said
control?
fund's
District named below, the
called for payment on
the
of
bonds
said
170)
page
dundant currencies have proportionately diminishing
of the various
outstanding bonds
of the
all
"
Monetary Conference
(Continued from
-
government which must be ex¬
pected even without desirable»
but non-essential additions to
quarters.
peace,
called for redemption on
AUGUST 1, 1944
has
,
Those who
Woods
that the
Consumers Public Power District, Nebraska,
which debt must be paid
from the same pockets as local
needs. Nor can we overlook the
increased
costs
of
municipal
borrowings will attain the peak
generally anticipated in
:
•
GIVEN
HEREBY
IS
NOTICE
war,
be
whether
batable"
.
haphazardly, sight should not be
lost of the vast Federal
debt
which we shall inherit from the
says,
accompanied by
any significant change in the basic
factors responsible for the present
high price level.
:: v
On this point, the bond house ■
observes that until "the Fed¬
eral debt is put on a permanent,
basis,
interest rates must be
kept low," and while taxes must
necessarily5 continue at "burvdensbme' levels" even after the
.war ends.
Furthermore, while
the return of peace will result in
an expansion in the volume
of
municipal financing, it is "de¬
than
plan rather
building to a
-
Seen And Heard At Bietton
of the following Bonds of the
Consumers Public Power District, Nebraska:
of
and
ahead
looking
of
ity
Revenue Bonds
•
-
holders
To
benefits. Granting the desirabil¬
cessation of hos¬
a
even
will
tilities
$40,974,000 Consumers Public
/Power District, Nebraska,
Many of the plans are
•
Barring developments of an ex¬
traordinary and now unforesee¬
copyrights,
marks."The
office
to
of
:
-
Custodian
was
not
and
.
,
said
able
at
trade¬
■■
,
that
this
■<{
,v
his
time
give any estimate of the value
Finnish property that would
come
under his control."
/
;
t"
4?f
Volume 160-
|'
Number-4298
THE COMMERCIAL & FINANCIAL CHRONICLE
-
although deemed extraneous to monetary stabilization. Latin Amer¬
ican especially interested.; t1
'
ford
July 8
on
virtually an1 impromptu affair, with very little
was
advance preparation.
;
Half dozen
New Deal philosophers yesterday rein¬
more
Today conference
j.'
con-
sidering loans-to-capital ration of proposed world bank, with
»
discussions
more
;
Some Americans
!
Some
lively.
British
than
liberal
and
American
Dutch
suggestions
approve.
far
of foreigners in bank's to-be-authorized activities.
/
"strength," the
American
/
technicians themselves are split over this point. Proposals
range from ratio 75% to as much as 300% for loans and guar-
:
'
antees as compared capital.
;
taken
are
answer
investors, which is an offset to their financial
was: "No, not any more than the war debts
account."
into
This
touches
on
of
one
the fundamental
Tomorrow's Markets
Walter Whyte
Savs-—
foreign exchange, regardless of its debt record.
>
Incidentally when Congressman Dewey, arrived here, the con¬
were hard put to it to decide how
to list him on
delegates-roster. Congressmen from the House Coinage
Committee, who had made their arrangements earlier, were listed
as
technical advisors—although they have not been noticed doing
any advising of the American delegation.
Finally, it was decided
that Mr. Dewey, as representing the House Post-War Committee,
should be listed as "a' distinguished guest."
v'v
cationers.
from
a
$18 to $94 per person per day.> For their convenience,
stockbroker's office will be opened in the basement.
it is said,
are
present. L
South American
delegates travelled 11,000 miles to get to
'•i\
■ ■■ ':■. ] ' V;;v:y'
.v,.
Bretton Woods.
,
Strength is
here
Mrs. Cecilia Wyckoff of the Magazine of Wall Street
July 8 were
a lady companion, who have
on
and
back and forth between Bretton Woods and Twin
the proportionate system of voting.
viewpoint
the press sleeps.
.
■
:
•
*
*
*
I
that of the United States in such decisions.
cap
.
.
.
breast, the coat of arms of Davenport College > .
A courteous
European kissing a lady's hand:.*;
A knot of reporters talking
that day's ousting from the conference grounds of a silver lob¬
byist
". Six people in a large auditorium seeing movies of na¬
tional parks. ...
/ ~
•
.
.
representative
*
say
that,
as
a
leave Bretton
On
It
seems
no
safe to
.
.-v/v
.
•
■:
/"
An economist of
'Tr:'vv-^J-*:/■
foreign delegation observed to the writer that
it might have been better strategy to try to agree first on the Bank
and on the Stabilization Fund second, or perhaps to have sought only
a world reconstruction bank, inasmuch as the functions of the pro¬
posed Fund and Bank overlap so much that it really is not easy to
draw the line between them.
This view, of course, the American
delegation does not share.
■
~
a
,
„
"l,
While
v.;.,
,
no
silver, it seems safe to conclude at this date that there
understanding between Mexico and the United
States delegation here.
The Mexicans seem to have sold the Admin¬
istration on the idea that a "gesture" will prove harmless, and the
Administration, having the silver bloc in mind, clearly shows that it
tacit
H.';--v;;-
agrees.
From the standpoint of most countries
z-r/
countries
i
can
readily
adjust
their
strikingly similar to the argument long urged by
j
Mr.
,
Silvermaster, mentioned in
our
Mexicans,
who
thus would
doubtless
seem
are
more
be necessary to
hold another session of the Bretton Woods confer¬
\ :
J;
■
h.
: ■■■■'■■y'v
.
yyy;"'v' :-"y'
Some Britishers
*
*
v
afraid the American constitution will re¬
quire too much of the lawyer's approach in the management of the
Fund.
The British want not only flexibility in the written provisions,
but also wide latitude for the managers.
Their viewpoint is that the
proposed Fund is unlikely to be long successful unless managed by
persons with much experience in political dealings between nations.
The emphasis being placed on legal aspects is reflected in the pres¬
ence here of the well-known New Deal
lawmaker, Ben Cohen, and
at the press conferences and in the committee meetings of the youth¬
ful and capable Mr. Luxford.
v
American reporters get
V.'.
much or more information of the type
not released in the press conferences from foreign delegates and
technicians, as from Americans.
f
;
"
T
v
v-:
cans,
^
u
as
the
ki¬
office of the
ment.
,
$t.~
There
General
are
He
still
stood
fraction a few
is now down, to
about 104; Chrysler, 98 two
weeks ago, is now about 96;
high
a
These
ago,
not
harbingers of a
Somebody is
there selling.
That somebody is doing the
buying is also as obvious. But
are
good market.
obviously in
two
to
transactions
don't
jibe.
*
To this
-/vv,.
*
■/
So while I
1
delegates, he added, showed
up
very
poorly
meetings.
ties of
the
see
1
■
possibili¬
inflation fear psy¬
an
point to
glowingly
on
the wonderful change from
and beauty of the Presidential
peace
too, are thriving in this "point" less paradise;,
ming pool, his bathing trunks held
*
•
':v;t i
^
•
*
-v
up
by
a
piece of string.'
a
a
potential
down
*
e
Thursday.
—Walter
[The
views
do
buy¬
'
*
#
More next
Probably in
find
on
the reporters. v
here quite a few women reporters.
Miss Lam
repre¬
Commerce," Miss Porter the New
"Post," Miss Sigrid Arne the Associated Press, and Miss Frieda
Utley the Shanghai "Evening Post," etc.
*
• v'.v-rr,":'
"
r
city of the United States would
one
expect to
adherents to the gold-standard
banker, who prefers to remain anonymous.
banker, contrasting the plan which the Bretton Woods
Monetary Conference is about to consider with the gold standard,
That
holds that only through gold can the nations of the world maintain
stable currencies in a free economy.
Only by maintaining a fixed
•
Whyte
expressed
in
this
not
necessarily at any
those of the
They are presented as
coincide
Chronicle.
with
those of the author only J
Established
18S0
H. Hentz & Co.
'
*
Members
•
,v
New
York
Stock
Exchange
New
York
Curb
Exchange
York
New
Commodity
Chicago
New
Orleans
And
Cotton
Exchange
Exchange,
Board
Cotton
other
of
Inc.
Trade
Exchange
Exchanges
value in dollars for the great store of gold at Ft. Knox and
its free use can we hope to achieve
monetary stability of
permitting
foreign cur¬
rencies, he states.
N. Y.
Therefore, this banker continues, Congress should fix the
price of gold definitely and permit unlimited purchase and
sale of the metal at that price, thus returning to the tried and
tested base for our money.
Once that is done, other countries
can
tie in their currencies to
ours
Cotton
Exchange Bldg.
NEW YORK
CmCAOO
4, N. Y.
DETROIT
GENEVA.
PITTSBURGH
SWITZERLAND
and to gold, assisted if nec-
*
essary
with carefully extended credits.
What this banker in effect
seems to say is that we should ap¬
proach stabilization of world exchange rates not through the .multi¬
lateral Keynesian approach, not even through the bilateral method
of first stabilizing the pound-dollar cross rate, but by the unilateral
example of this country alone going back to a full gold basis.
Even
an
international bank such
as
the Fund under considera¬
tion at Bretton
to
*
no
faithful
known
York
•.
more
idea than in the
conservative capital of the Bay State.
That this is indeed the case
is indicated by an interview the writer has
just had with a nationally
Treasury Depart¬
of exposition, Luxford makes a
sents the New York "Journal of
Woods, this Boston financier maintains, should be tied
the solid foundation of the United States gold stock.
*
.
1
Sir Wilmott Lewis, well-known and popular Washington corre¬
spondent of the London "Times," is living up to his reputation as a
raconteur par excellence. His stories always have a point which is
tlm point.
In the press conferences, "Bill" sits against the wall and
emits
at the
*
LAMBORN & CO.
99
WALL STREET
NEW YORK 5,
N. Y.
•
*
line with Senator
a
low-pitched profundity
What he calls the
for
the
"lime juicer"
third time.
the less formal hotel
to
So the
move.
ing still obtains. ,■■■';
time
Harry White continues to impress reporters with his stamina,
His
right hand man, here as in Washington, E. M. Bernstein, who has been
in on the Fund and Bank plans from the
start, continues to add to
his reputation as a walking
encyclopedia on the subject of the Bretton
Woods gathering.
more
seems
advice to postpone new
article
hurry.
*
his hard work, his sincerity and faith in his plan as unassailable.
by Mr. Ansel Luxford, of
or
Counsel of the
From the standpoint
good impression
j}s
It looks like Greece will need stabilization in
ln the press conferences each day, the accomplishments
of the several committees are reported either by Dr. White,
by his assistant, E. M. Bernstein,
■
and
weeks
A Greek delegate appeared at the colorful outdoor swim¬
,
*
also
are
'J".}1'*':'
c
has
few weeks. West^
inghouse Electric, on the
other hand, which was 108
seem
on
Range, towered by Mt. Washington.
The British are not the only
ones enjoying the cuisine at the Bretton Woods
dining room. Ameri¬
.'.Yy.'-.. I'-'.'v-V'
ence.
ago is
General
so
65.
immediate
What will
■<.
Electric
delegates
agreed before coming here
about
at
Some of the American
default the real "silvermasters."
Y
which made
or
three weeks
chology taking hold, the
high altitudes,
field, and by American
happen if a Fund plan emerges from Bretton Woods
and later is amended by Congress, or what amounts to the same thing,
accepted with reservations, is anybody's guess. The differences might
be ironed out by diplomatic correspondence or otherwise, or it might
*
American delegates, other than White and maybe one other, was of
"weak quality," but that the American technicians were "first rate."
accustomed to
to remain possessors of the
:•
Mrs. Keynes comments
The
*
.v.
';,3.'
rocket-bombed London to the
last week's column, has left
un¬
tendency
65
there appears to be no exception.
in committee
4;/* ; ers in the United States that the bilateral approach is all that
"*;f is needed to set the world on the road to stabilization.
:
were
the general principles of the Fund and Bank plans.
bank-
Bretton Woods because "the climate did not agree with him."
;
that all the
,
thereto.
some
:
;
One foreign delegate commented to the writer that in his view the
The foregoing view, also from above-mentioned economist, is
For if this
go
General Motors
the
*
Then other
currencies
own
'
from the start
from the United States
v*.'
represented here,
the pound and the dollar prevail after the war.
'
,
It has been clear
^>'v,
the important goal is that a stable rate of exchange between
heeded.
indica¬
an
not
for the past
"
V {
should
that
in which the individual countries have
on
a
general—it is
tion
still
issues
already
.
v"
'
•
daily up moves.
if this situation is
result of the daily press seminars, most of them will
Woods impressed with the Fund's advantages.
particular
local interest, Latin American countries are strongly inclined to sup¬
port one another.
Mexico, for example, counts heavily on this fact
in its silver efforts here.
A country like Brazil, which has no interest
at all in silver, will none the less support Mexico in the final show¬
down.
Silver in this case is just an example.
The same principle
applies to any other question among Latin American countries.
It
is log-rolling such as is quite familiar in the American Congress.
is
in
even
Signs of hesitation are
mostly present in the leaders.
,
,
ticipate
And
*
of its
*
clear picture of what the Fund was all about.
very
over
.
Fewer and fewer issues par¬
Under it there will al¬
some
Most of the correspondents who have come here arrived with
few days after it
Saturday night in the hotel lobby:
Lord Keynes carrying a
Dean Acheson wearing a brass-buttoned coat, with, on the
,
one
*
a
started, appeared at one of the committee meetings with 14 visitors
whom he had escorted past the gate. They arrived at this particular
committee just at what some regarded as an unfortunate moment,
for the Mexican, Antonio Espinosa de los Monteros was vigorously
defending the theme that currency parities must be fixed by the fund
under "democratic procedure," that is, Mexico's voice should be as
as
on
member,
the management.
any
-
\Jr: Senator Tobey, who left the conference for
loud
for
be,
ways
Mountain, where
gen¬
to be scattered.
all recent and cur¬
profits can go up
like dry straw on a hot stove.
tion of the management of the proposed international Fund
chauffeur to drive their limousine
a
longer
no
seems
')
'
rent paper
out of corporation experience in recommending for the selec¬
the otherwise dwindling press contingent
to
It
$ '
spreads,
The guiding brains of this conference have taken a page
Late recruits
.
y
He
He
not
Two
„
r
if the urgent signs are
missing the undercurrents
that tend to pull stocks down
4
Once the conference ends, the hotel will be full of ordinary va¬
Not exactly ordinary ones, perhaps, but those able to pay
ference officials
the revised
\
t
(Continued from page 176)
eral.
v
:
;■
But
criticisms that have been made of the Fund plan, namely: That each
member will have a "line of credit" to draw against the Fund for
s
.
.
At a July 9 press conference a spokesman referred endorsingly
to the financial strength of the Latin American countries today. When
asked whether in the committee discussions of this as a factor that
to American and other
-bank's capital, some American technicians outdoing liberality
■
;
,/v
should play a part in Latin America's voice in the Fund any account
was taken of the fact that Latin America still owes a lot of
money
here regret that, with United States supplying biggest slice of
i
•
"y;
y
forced large contingent already here.
197,
only those rare occasions when
viewpoint seems to be going down
on
His'titillation of the
diaphram is reserved for
lobby, the bar, and most any other place.
He
The CBS broadcast of
a
*
*
*
"press conference" of youthful Mr. Lux¬
Erie
and
Cocke, Vice-President of Fulton National Bank, Atlanta,
since Sunday in
George's idea that commercial banks be represented
Regional Chairman of SWPC, has been here
conference.
guished guest"
Mr. Cocke
came
to the
conference
as
a
"distin¬
invitation of Treasury Secretary Morgenthau and
Vinson, Stabilization Director. He believes that International
Monetary Fund will increase outlet for farm products and has rep¬
resented in Georgia various Federal agencies, including the
CCC,
SUGAR
Exports■—Imports—Futures
on
Fred
RFC and the Federal National
Mortgage Co.
DIgby 4-2727
..
price rise, however,
since money would
have been drawn out of circu¬
war-goods, as a pre¬
against possible, if not
caution
eventualities,
adverse
probable,
continued for
the armistice.
This will do much to ease the
shock of transition. The provision
of new peace-time equipment will,
moreover, absorb a good deal of
labor. But there will still be many
will
doubt
no
be
after
time
some
potential workers which private
industry will not, at the moment,
be able to absorb. For these work¬
ers transitory occupations should
be
made
available.
This will
necessitate a great ad hoc expan¬
sion of such public works as can
offer a large volume of employ¬
ment without the use of equip¬
ment not currently at hand.
Pub¬
licly supported housing and other
building projects on a great scale
would seem to fill the bill,* while
and
construction
highway
con¬
fore¬
the land (to
stall
erosion,
restore
fertility,
check floods and dust), could ab¬
of
servation
numbers of workers in
present and pay> handsome
sorb large
the
social welfare.
The necessity for these, and simi¬
lar, projects cannot too early be
foreseen nor provision for them
made. Even so it will be difficult
dividends in future
to
avoid
temporary
some
unem¬
ployment.With dismissal wages
equivalent,
however,
of the Army
from war industry, this need
their
or
whether for those out
Because the
flation.
crisis struck.
economic crisis occurs,
an
Y
however, the originating thirst for
liquidity is not assuaged- but, on
the contrary, is intensified as the
need and advantage of it becomes
of
establishment
the
the
be little
can
proximate
Y Y ; '; ; Y' -;
2
•
(
remedy is to apply to in¬
dustry the technique we now use
liquidity
to the industrial enterpriser as we
and to offer
for finance
it
offer
now
to
There is
low.
his financial fel¬
no
good reason why
appropriate institution should
an
inventories,
just as we now liquefy frozen
financial instruments, and, when
the
thirst > ; for
liquidity
is
quenched, return the goods, in ex¬
change for the money issued in
not
liquefy
their
frozen
acquisition, just
their bailors
as
we now
instruments
financial
return
to
wherithe passion for
liquidity subsides.
all
standard, storable, raw
materials (goods unspecialized to
For
particular
a
the
production.
memories
past,
whereas
continue to devastate
our
financial
central
sate
banks
the
liquidity.1
have
level.
and put in/ reserve, the
money paid for them, if spent
at all, must be spent for other
commodities.
This would tend
to raise their prices, and, since,
the
occur,
for
the
temporarily frozen assets of
mercial
banks.2
To
all
com¬
intents
and purposes this monetizes these
assets, but there can, in the cir¬
cumstances, be no danger of in¬
*The
building
of
many
described below,
purposes
warehouses,
for
would be desir¬
able.
1
Britain,
panic
half
in
2 Central
evitably
tender.
e.g.,
a
bank
liquid
Central
liquid since they
has
had
no
financial
century.
notes
by
are
making
rendered
them
bank deposits are
can
in¬
legal
equally
always be exchanged
for notes.
profits
at
would
The consequently
the
fixed
increase.
increased pro¬
goods would
duction of finished
central bank freely issues its own
credit (debt), which is, by defi¬
nition, liquid, in exchange for the
production would, as
price,
to'
units,
materials necessary
raw
redeemable
be
to
prevailing passion
At such
times
withdrawn from the mar¬
were
ket,
crises
learned
tendency toward sta¬
of the general price
Whenever raw materials
(3) A
bilization
lives.
crises
to
(2) A limitless market, at a
average price, for the
basic commodities of industry.
their
When
response
constant
disordered
a
economic
in
vary,
Y case.
Financial crises,
are
becoming
of
use)
changing demand and supply
conditions, as has ever been the
have failed to apply it to indus¬
consequence,
to
free
world, discovered
remedy for this condition but
in
.
deposits), quiring relatively small stocks
being acquired by
the Corporation.
On the contrary,
the purchases are then necessary
to
prevent deflation. and wide¬
spread shutdowns. When business
picked up, however, the Corpo¬
ration would have a perfect hedge
v
The
raw
mere
bank
created
(newly
3 The term
to
connote
a
"representative bale" is used
composite unit of various
in fixed physical quantities corre¬
sponding to their relative importance in
the economy.
The price set for a "repre¬
sentative bale" should be somewhat below
goods
cost
the
at
the
the
of
goods, in private markets,
of the procedure.
This
inception
price, like the price of gold, would, there¬
after, be unchanged.
The prices of indi¬
vidual commodities would vary, however,
conditions of supply
and
demand.
The
original proposal, of
this
character, was made by Benjamin
Graham and
is elaborated in
his book,
In response to general
"Storage
and
Stability":
McGraw-Hill,
1937.
In
ducers'
no
need
and
release
a
pro¬
Corporation
them
Corporation will
repurchase con¬
otherwise unsalable
the
-standard output of responsible
■;
v>
manufacturers of storable goods,
:'i It will
for these goods in
pay
newly issued bank credit.
(2) The
chases
are
;
j
Corporation's
pur¬
on
the
conditional
of
undertaking
small
sale
spread
price
be compen¬
outflow of
reservoir.:
This
would
the
effect
only
of
not
have
relieving
the
depression phase of the cycle
by the
release
of .goods,
would prevent the inflation and
misplaced investment now more
but,
or
less characteristic of booms,.»
So
ment
far, however, as unemploy¬
is a chronic rather than;a
no
The fact is,
day%
however, that the issue
turer to repossess
the goods, as
soon
as
private
demand re¬
vives,. at the price paid by the
Corporation.
(3) The price paid, is, in con¬
sequence, a matter of compara¬
tive indifference but should, in
principle, be no more than suf¬
without
ance
cyclical
or
working
the
manufac¬
the
would
the
of production and trad£;
consumer,
take over, on a
the
liquidity,
sated by the intake and
would be compelled to do
couraged, and
passed.
The following procedure is sug¬
gested:
(1) On the appearance of de¬
tract,
for
phenomenon
(arising
rationing of the from a tendency of monetary sav¬
governmental "di¬
ings to outpace private invest¬
rectives" to producers would be
ment in goods) the goods in the
necessary.
Workers would be reservoir would
steadily accumu¬
steadily receiving money incomes late.
If ever the accumulation
and, if they did not spend them, should reach an amount which
could -clearly be in no very exi¬
seemed
adequate
to
meet any
gent circumstances.
probable drain the remedy would
If we. should
ever find
that, be to remit taxes, (especially,on
with the money to buy, we had the lower incomes) and meet govmore
goods
than Y we
really ernmetal expenditures with ne~
wanted, the remedy is easy—we issues of money without corre¬
need merely reduce the length of
sponding; production.
Any ex¬
when
the desire for liquidity had
pression,
one
a
negligible proportions.
Fluctua¬
tions in private demand, the re¬
flection of shifts in the preference
ac¬
anything against his will; efficient
producers and sellers, carrying on
business precisely as at present,
would make money while the in¬
efficient would be eliminated; re¬
striction of production and other
social inefficiency would be dis¬
(FRC) should absorb these goods
at
as
unemployment j 'is
cyclical phenomenon, the
use
of
the
reservoir
of
goods
would reduce ebbs and flows to
trifling
such
indication of op¬
far
merely
interference with the ordinary
processes
\YYYY,
goods.
A Federal Reserves
at
a sure
possesses.
So
There would, moreover, be
cost.
no
of economic
reduced,
tivity
This would include most
and
now
the present mer¬
and
character
curial
give to the entrepreneu¬
portunity in specific lines, or the
lack of it, rather than the very
inadequate and problematical "in¬
formation" that any enterpriser
sustained, the price level
stabilized,
(which cannot, however,
quite so automatic) for those
finished goods which, though stor¬
able and not rapidly obsolescent,
are
not, over time, fully stand¬
goods
moreover
rial world
other way could employ¬
no
ment be
be
consumers'
fashion, and without any stoppage
in general employment.
It would
long
are
goods and the retirement pf the
money paid in for them.
*
cedure
durable
would,
indeed, operateY to
adjustments,
of
relatiye
supply to evolving demand, in qn
orderly rather than in chaotic
against inflation in the release of
sistently high. But, for periods of
greater stress, stronger measures
might be necessary.
We should
therefore, adopt
a
similar pro¬
large part of the output of
so
or
whole mechan¬
effect
.
just outlined would prove enough
to
keep economic activity per¬
ardized.
goods
impossible
is
Inflation
as
The
ism
Corporation
The
.
all.
at
none
might be given title to such goods
and dispose of them for whatever
cessive accumulation in the reser¬
of money,
Tha
voir would then disappear.
corresponding appear¬
a
of goods on
part of the population which de¬
sired to hold money in the fori:
of
uncashed
claims
on
good
would then have its desires satis¬
the mgrkat, will
produce
the
certainly
almost
"shortages" we are now experi¬
encing. But we should then have
the means of relieving them.
The
fied, without any stoppage of pro¬
duction, while the larger part,
"reservoir," disgorging goods in \vhich is eager for goods, would
exchange for money thereupon get the goods.
rYYY ZY
ficient to cover the- manufac¬
A final word should be said on
retired, would thus preclude the
turer's actual outlays for the
appearance of either phase of the the
advantages
of the present
labor, raw materials, user-cost
problems attendant on inflation.
proposal over expenditures
on
of equipment, and mechanical
The reservoir is the means we public works as a means of over¬
power, involved in the produc¬
use for smoothing out irregulari¬
coming cyclical or chronic depres¬
tion of the goods he delivers.
Both, indeed, are forms of
ties of flow in the physical world sion.
(4) The goods acquired by
the Corporation will be stored and it has equal possibilities in public saving in goods (and it is
the realm of economics.
If, as a only in goods that social savings
under seal on the manufactur¬
can
be
made)
whenever
the
ers' premises, or elsewhere, and minor supplement to the program
insured with, and for the bene¬ outlined above, we should use the people want to save in money,
and
both
would
prevent
the
same principle in connection with
fit of, the Corporation.
Title to
the goods, subject to the Cor¬ normal (that is to say, per se de¬ people's savings from running to
But investment in
public works projects, utter waste.
poration's lien, remains with the sirable)
manufacturer. The Corporation, spacing them so as to compensate goods of private use would: Y
(1) Obviate the necessity of
for fluctuations in private invest¬
therefore, could not sell them.
widescale transfer of workers
(5) The manufacturer will be ment, we should be able to clear
from one occupation, and resi¬
entitled to sell the goods to any up the last vestiges of all but
dence, to another, with a prob¬
transitional unemployment.
This
buyer, at any time, for any
able re-transfer at a later date;
price he can get.
: would, moreover, operate to sta¬
bilize
building, at present the
(2) Provide a means of elimi¬
(6) Except with the consent
nating inflation, and of avoid¬
of the Corporation the manu¬ most unsteady of industries.;.;
ing the taxation or growth of
facturer agrees not to fill from
The chief administrative diffi¬
interest
implementing the pro¬
in
new
culty
for
posals lies in the necessity for dis¬
crimination by the FRC to pre¬
output any private orders
goods of which the Corpo¬
ration still has a stock, of his
vent
make, in storage.
finished
acquisition of
the
as
the depression con¬
tinues, it will keep its aggre¬
gate purchases at the level nec¬
essary
to maintain full amployment.
«
special Federal Reserve credits pre¬
like other Federal Reserve deposits
except that they
would not carry the
privilege of serving as a basis for multiple
expansion by member banks.
The credits
should be 'at
zero,
or merely nominal,
rates of interest.
Redemption, as distinct
from transfer, of such credits, should be in
Federal Reserve Bank notes, which should
also be denied
the privilege of serving,
after redeposit with the Federal Reserve
long
in
acquisition of the goods by
Corporation
would - cost
nothing i. but a few strokes of the
the
.j
.
;•
j;
j
'
a
-
r
•
.
Banks,
of
■k
-
a
v
,
basis for .multiple
extension
•'
as
credit.!
;
•
.
#
»■
.t
i
»
i
.
.
-
bearing
Government
.
with
,
public
(according as the public
works
are
*
financed
with
new
which could not readily
be withdrawn when the prefer¬
ence
for liquidity diminished,
or are paid for out of the trans¬
money,
fer
of
idle
funds
to
Govern¬
ment);
(3) Reduce
private
bank¬
ruptcies to a mere functional
Y Y.
level;
cisely
(8) The Corporation will bear
storage costs.
-
associated
debt
works
(7) The
Corporation Y will goods in proportions greatly at
shift the emphasis of its acqui¬ variance with past or prospective
sitions,
to
correspond
with demand, that is to say, in the
evolving demand, whenever it necessity for-shifting the empha¬
sis of the FRC's purchases.
The
appears that it is accumulating
difficulty
is,
however, not so
an excessive supply of any type
of goods relative to other pur¬ great as, at first blush, it might
chased commodities.
But, so
5 Payment for the goods could be(made
The
between the purchase
might be established, as
with gold, to defray storage costs.
4 A
and
consequence.
orderly re¬
an
output. This would
effected concurrently with ? an
increase
in
the
production ^ of
goods of which the FRC was ac¬
the
The
in
FRC
the
duction of his
go
goods involved should be carried
by
the
monetary
authorities.
This cost could, if desirable, be
covered out of profits in a spread
of perhaps 3% between the buy¬
ing and selling price of the ware¬
house receipts.
In comparatively tranquil times
it is probable that the procedure
rency.
in the financial
trial
tionary boom.
with
they would bring. Y Y-. -YY
materials, or intoler¬
able persecution of enterprisers, is
a net increase in the public's pref¬
erence
for
liquidity.
We have,
the
out of business. But, since all
goods purchased would have
been bought with costless money
be
disposed to cooperate
therefore be
f
•
had
off, or without the
of the FRC.
He would
consent
price paid by
inventories
large
cleared
been
Corporation.
The manufac¬
turer might never
wish to re¬
deem them, and would prefer to
infla-
an
until
ket
the
kers, under the incentive of profit,
but the cost of storage
of the
the attendant
.
nomic depression, except such as
arise from shortage of equipment,
lack of
be
hard to move at the
pro¬
lack of
that
of every eco¬
cause
otherwise
would
these
under
happen
markets, fall in prices, and can¬
cellation
of
bank
deposit cur¬
greater in
appro¬
doubt
a
this would be a. matter of no great
priate institutions.
There
could
accumulation, delivery, and
redemption of warehous receipts
covering
representative
bales
could safely be left to private bro¬
monetary
authorities
should at. any time
or
cause no great distress.
To many, stand ready freely to buy (with
a
temporary release from work newly issued means of payment h
might even be welcomed (pro¬ and freely to sell, warehouse re¬
vided it were of only moderate ceipts
covering
representative
duration) and educational oppor¬ bales of such commodities, just as,
tunities should be given to all formerly,
they ' were
prepared
those who desire, and can make freely
to
buy and
sell gold.3
Whenever depression threatened,
good use of, them.
v.yY.
Whatever the troubles of the and the aggregate price of the
transition
period they will be goods in a representative bale had
minor as compared with those of declined to the established level,
a
great depression, such as that there would then be a ready mar¬
of the early thirties, and it is on ket,
at a fixed price, for any
number
of
the / representative
.a not improbable repetition, and
perhaps worsening, of the evils of bales of goods.- By reducing the
-those years that men's fears are supply of such goods on private
chiefly centered. Even after re¬ markets, and at the same time in¬
tooling is completed we may, pert creasing the public's supply of
haps, expect a boom.
But the purchasing power, this process
shadow of depression will be in would, sooner or later, reverse the
the offing.
It is to the mainte¬ trend of prices.
As soon, how¬
nance of the production of plough¬
ever, as the market price of the
shares, and all other peace-time aggregate of goods in the bale be¬
goods, that our chief attention gan to rise, the documents giving
should therefore be directed—On title to them would, of course, be
transitional
The money paid in
employment
the redeemed.4
writer has nothing very novel to for them would then be retired, t
The results would be:
suggest. When the transition from
war
to peace has been effected,
(1) Stabilization, within nar¬
however, full employment be¬
row limits, of the price of the
comes
not a physical but an in¬
aggregate in the representative
stitutional problem and its main¬
bale.
All price relationships,
tenance is, in consequence, capa¬
however, and the price of any
ble of complete solution through
given commodity, would be as
the
small storage costs the worst that
high level of production,
through use of a reservoir ab¬
sorbing commodities whenever
hoarding (high liquidity prefer¬
ence) caused private demand to
slacken and disgorging them: as
demand
quickened into what
repurchase their assets; the
money they pay for them is re¬
tired, and all is as it had been
:/
continued
goods on which he was making no
profit and which he could not, in
any event, sell in the private mar¬
relatively
from
posals, then, is that some goods
would be stored that would prove
at
then
When
Aside
the
vendable
corresponding
a
asset.5
bilization of the whole economy,
passion for
thus assuaged, how¬
ever,
and because liquidity is
costly, the thirst for it is quickly
slaked.
The commercial
banks
liquidity is
before the
have
manufacturer
interest in
production
of
No
be.
would have any strong
would
Corporation
of the raw
materials,,.....Y Y.;; f, -Y-YY'
(4) A tendency toward sta¬
lation in redemption
(Continued from page 171)
of
the
to
seem
and for every dollar of credit
issued
especially
Post-War Employment
duction
pen,
the
check
Thursday, July 13, 19441
FINANCIAL CHRONICLE
THE COMMERCIAL &
198
(4) Provoke little opposition;
(5) Act immediately in time
and directly to the desired
(6) Leave intact the
of
choice
in the
end*
freedom
disposition^
o
income; and
(7) Keep
uniihpaired.
private
enterpris
.
,
•
»
THE COMMERCIAL & FINANCIAL CHRONICLE
Jtolume.;16Q,;;.;:Number 4298
'
first mortgage sinking fund 5% bonds
March
1, 1952, assumed by Empire.
Co.
due
Security Flotations
Calendar Of New
priced at .cost or market which¬
Pending a physical check,
of the inventories-was taken at
$1,800,000.
Contemporaneously
or
just
prior to this transaction the company sold
to the underwriters 150,000 shares of com¬
mon stock at $11,375 a .share, and
sold to
the New York Trust Co. $800,000 3% five
year notes, and sold to Mutual Life Insur¬
ance
Co., New York,
$500,000 4% first
mortgage bonds due 1956.
The proceeds
from the sale of these securities were us: d
ventories
ever
lower;1
was
the
value
HOWARD STORES CORPORATION filed
■jha: j-egistration statement for 27,736 shares
rJSi'Vt %
cumulative
preferred
stock,- par
;value
$100, and
50,000 shares common
'stock/par $1.
The shares registered are
/Issued and outstanding and do not repre¬
sent new financing by the company.
.//Underwriting-—Underwriters are A. G.
1
Becker & Co., Inc., Chicago; Merrill Lynch,
Pierce, Fenner & Beane, New York; H. M.
to purchase thef! California company and to
'•Byllesby & Co.,
Inc., Chicago; Central
provide
initial' working
capital require¬
Republic
Co.,
Inc.,
Chicago; 'Graham, ments.
The common stock being offered
"Parsons & Co., Phila.; Hallgarten & Co.,
is that purchased by the underwriters from
iNew
York; Shields &' Co.,' New
York;
the company on July 1, 1944, the net pro¬
.Stroud & Co., Inc., Phila.; A. E. Masten &
ceeds from the/sale at that time were re¬
(Co., Pittsburgh; Milwaukee Company, Milceived by the obmpany.
Underwriters are
"waukee; Moore, Leonard & Lynch, PittsW- E. Hutton $ Co., 80.000 shares;-Hemp¬
"bUrgh; William R. Staats Co., Los Anhill, Noyes & Co. and E. H. Rollins & Sons,.
Ogeles; Stein Bros, & Boyce,
Baltimore;
Inc., 30,000 shares each, and Stein Bros.
.Edward D. Jones & Co., St. Louis; Singer,
Boyce,
10,000 shares.
Filed June 29,
'Beane & Scribner, Pittsburgh; Frank B.
1944. Details.'in "Chronicle," July 6, 1944.
''Cahn & Co,, Baltimore, and Newhard;
i/Codk & Co., St. Louis. Filed June 9, 1944.
".Details in "Chronicle," June 15. 1944.
'//
WEDNESDAY, JULY 19 '
'
Offered July 12 1944, the preferred stock
JOHNSON
JOHNSON have filed a reg¬
at- $101 per -share and the common stock
istration
statement for 36,218 shares of
/at $13.50 per
|* >7 .cumulative second preferred stock, .series
owned
of
Both
for
;
Jf/LERNER
"I
par).'
(no
stock
common
filed
has
CORP.
STORES:
a
shares of
registration statement for 35,000
The shares
are
being sold to the
Joseph J., Lerner, presi-
30,000 shares
tered
are
^underwriter? by
dent,
and
5,000
shares
Shops of' America,
stock
Montana;
the
Of
ment/"::-
Associated
of
shares
lative
Minneapolis,
rights to
utility
at
Proceeds—The
the
of
the
from
proceeds
entire
pref erred stock will be used to
-
the> company's
redeem
outstanding $1,950,000 of,. 3^2 %, ■ serial .notes, due serially at
the rate of $390,000 on March 15 in each
of the years 1946 to 1950 inclusive, and,
together • with general funds of the com¬
pany, /..to reueem, outstanding
$390,000 of
,2iA%-yerial notes due March 15, 1945.
/ Underwriting—The
underwriting group
is headed by Blyth & Co., Inc., and Merrill
Lynch, Pierce, Fenner & Beane of New
York. Other names will be filed py amend¬
77,252
and
■
.
.
.
Co., Hemphill, Noyes & Co., Merrill Lynch,
EASTERN PIPE 'ONE/CO, (Pierce, Fenner <$& Beane and Smith, Barney
;has filed a registration statement for 531,& Co. :;The offering of common. stock is
0638 shares of common stock, without par
not being underwritten.',: Applications for
"value.
The shares registered.;, are issued
purchase. 6f common stock may be made
and outstanding
and are owned by Mis¬ ,to Robert W.-Johnson, J. Seward Johnson#
souri-Kansas Pipe1 :IAnev.Co;^|fol4«r?-'wOl; and the company in, care) of J... P. Morgan
common stock and class B stock of Mokap
& Co. Incorporated.
Filed June 30, 1944.
;of record July, -12 are given the, right ...to Details, ih. ^'Chronicle/'. July 6, 1944/
purchase,
pro
rata,
163,710 z shares
of
Common .stock of# Panhandle,
at $30 per
JACKSONVIlIE ' GAS > CORPORATION
share, - on basis of one share of common
has filed a registration statement for $1 stock of Panhandle for each 10 shares of
745,000 first mortgage bonds// 4%
series
Common or'200. shares of class B capital
due June
1, 1969.
Net proceeds will be
/: stock of Mokan.
Such purchase offer will
applied to the redemption, at 100, of out¬
-expire oh Aug. 21, 1,944.
!' 1 standing $1,745,000 first mortgage bonds,
JNet
proceeds will be used to pay off
5 % series due 1967.
Central Republic Co.,
$$,050,000. indebtedness to banks and in¬
Chicago is named principal underwriter.
surance
companies.
After
payment by Fild June
30, 1944. # Details in "Chronicle,"
Jjdokan ,of the indebtedness, it will offer to July 6, 1944.
I
■
' \
.each holder of its common stock or class B
Stock according to a plan adopted by the;
NATIONAL
FIBRES, INC.,
stockholders on March 27, 1944, the right
and
privilege of
exchanging all or anv has filed a registration"; statement for 86,310 Shares of common stock (par $ 1) /,. / ;t/part of. -bis holdings of such Stock for full
Address—19925,1 Hoover Avenue, Detroit.
shares of. the common stock of Panhandle,,
4)PANHANDLE
j
»
„
'
AUTOMOTIVE
?
the*' basis of
'on
class
Panhandle
or 180
two# shares, of
of Mokan
shares
^shares of
B
common
capital stock of Mokan,
or
any combination, of common and class
"B capital stock of Mokan equivalent there"to!
The/exchange offer will expire April
..15,; 1945., Filed May 31.; 1944., Details in,
.
>
^'Chronicle," June 8, 1944.
,.//
*
-
,
.
:
QUAKER OATS CO. has filed a regis¬
tration statement for $10,000,000 20-year
.debentures- due July. 1, 1964.
Net
proceeds from, the sale of the debentures
together,-with $5,000,000 to be received
;2%.%
,
-from'the sale of serial notes will be. added
used as future de¬
velopments of the business may, require;
'Underwriters are Harriman Ripley & Co.,
>to- working capital and
.
Inc.
and associates.
int..-
'
/.Proceeds—To
be
to
used
increase
com¬
pany's .working-, capital, for war purposes,
and to place, it in a position to carry addi¬
tional inventories and 'additional notes and
post¬
anticipated
receivable .for
accounts
particularly in the automo¬
P;////?;V/
business,
war
tive field.
Underwriting
Reynolds
& Co.,
New
is principal underwriter.
Registration Statement No. 2-5422. Form
5-l". (6-30-44).
York,
-j
Co. by change of
Marathon Paper Mills
to
1944, has filed a registration
5$> cumula¬
July 6,
name
statements
were
grouped according to dates
registration statements, will
days ago,
which
on
in
normal
course
become
effective, un¬
at the discretion
less accelerated
'SEC.. 1'
registration
filed less than twenty
issues ' whose
of
of the
V";!
.
TUESDAY, JULY 18
-
'
BROOKLYN UNION GAS CO. has filed a
registration statement for $12,000,000 25year sinking fund debentures due Aug. 1,
1969,_ Company plans to refinance its en¬
tire outstanding debt by: the issuance" and
sale ta the publicr of $12,000,000 debentures
and tne concurrent, issuance and private
Sale oj $3O.Q00,DOO general mortgage sink¬
fund bonds, 3%% series, due Aug. 1,
1969. The net proceeds of the sale of the
ing
securities will-be applied together with
^approximately $6,000,000 from the general
pew
ifupds of the company to the following pur-;
poses: payment at maturity May. 1, 1945,
tof; $14,000,000 first
y&(/i
bonds;
.first
Series
.
on
lien
first
mortgage
pay
A, 6%,, due May
(-to/redemption
000
consolidated
at maturity. $6,000,000
refunding mortgage bonds.
to
and
lien
1, 1947; $10,000,000
Nov. 1, 1944, of $10,000,refunding
mortgage
and
(bonds, series B, 5%, due May 1, 1957, and
$18,000,000 to redemption on Sept. 9, 1944,1
of
20-year
5%
debentures.
The
last
two
ceeds from
Jest;
and
$360,000
in premiums,
plus inter-
F. S. Moseley & Co,,
Boston,
is named principal
underwriter.
.Filed June"29, 1944. Details in "Chronicle/'
July 13, 1944.
respectively.
Oct.
r > ROTARY
has filed
000
a
shares
ELECTRIC
STEEL
iThe shares have been issued
;
^ffered
".Was
;
by
CO.,
DEL.,
the
incorporated
and
underwriters.
in
Delaware
.are
being
Company
June
(1944, to acquire, the business, physical
sets
ana
inventories
and
-Rotary Electric Steel Co.
1-944,
-23.
as¬
properties of the
(Calif.).
On July
purchased from the Cali¬
fornia corporation, all the physical prop¬
erties of the latter for $650,000, plus in¬
company
principally to finance,
to
the
corporation's
whollysubsidiary,/the erection
of i bleached sulphate pulp mill at Penin¬
sula, Ontario,
Canada.
The balance of
the.proceeds wilhbe used to provide addi¬
tional conversion; facilities of the corpora¬
advances
Canadian
owned
States plants and to augment
working capital. ? Underwriters with num¬
tion's United
of
ber
shares underwritten, are as follows:
'Corp., 10,000; Smith, Barney
6 Co., and the .Wisconsin Company, 5,000
each;
Blyth & Co., Inc., .3,000;
Merrill
Lynch, Pierce, Fenner & Beane, 2,500; Mil¬
waukee Company, Eastman, Dillon & Co.,
Paine, Webber, Jackson & Curtis and P. S.
Moseley & Co,/2,000 each; Clair S. Hall &
Cq., 1,750;- Dean Witter & Co., A. C. Allyn
6- Co,,' Inc.,.. Central
Republic Co., Inc.,
and Harris, Hall & Co., Inc., 1,500 each;
Reynolds & Co4 Werthelm & Co., Bacon,
Whipple & Co. j and Loewi & Co., 1,000
each; Piper, Jaftfray & Hopwood, Whiting,
Lee Higginsoh
Weeks
&
Stiibbs; Inc.,
Kebbon, McCormick
Perrin, West & Winslow, Inc., and
& Co.,
Tucker,
Anthony & Co.-, 750 each; Farwell,
Richter Co.,
Chapman &.Co.;^and Scherck,
500 each. Filed July 1,
1944.
:i'-
'Cif/
.'
EMPIRE
filed
000
Details
in
to
unknown
are
:■
..
DISTRICT
'
■
Light
Co.
The
net
Service
Power
to
proceeds
be
&
re¬
Empire District from the sale
together with the net pro¬
ceeds from the sale of 6,500 shares of 5%-
ceived
of
the
by
bonds,
cumulative
■which
the
preferred
stock,
expects
company
par
to
sell
$100,
con¬
temporaneously with the issue .and sale, of
the bonds are
to be applied to
the re¬
demption
at
mortgage and
due
at
March 1,
105
101%
of $10,044,900 first
refunding bonds, 5% series,
and to the redemption
.
1952,
of $851,200
METALS,
&
INC.
.
the record date
well.as
as
time when
and
.subscription1 warrants
will be
filed
by
amendment.
The public offering price of
will be jfiled by
the debentures
The
of Ozark Power & Light
public
holders
the
voting
May
be
will
Bioren
will
offered
asked
Co.
'/
•'
ajnendment.
net
proceeds from the sale of the
debenturess and stock will be applied, to¬
gether/ with
additional funds
from the
company's treasury, to repay a $3,000,000
temporary bank loan which was incurred
in the purchase last March of control of
the United States Gauge Co.
Hornblower
& Weeks; are, principal underwriters.
Filed
May* 31,#11944.Details
"Chronicle/'
in
1944.
Filed
8.
June
v;) CO.
MANUFACTURING
'•
has
registered 100,000 shares of common stock
$.2 par value. Net proceeds will be receiver
by .Porter Associates, Inc.
The moneys
paid to the corporation by Porter Asso¬
ciates, Inc., on account of the purchase of
said shares will, in the estimated amount
of $187,500, reimburse the corporation in
part for the $200,000 expended by it in
purchasing such shares.
Porter Associates,
Inc., underwriters.
Details in "Chronicle,"
May 31..
Filed May 25.
tration
statement
has
CO.
filed
regis¬
for 60,587 shares of 4%
a
$100 par value.
Under¬
writers are Blyth & Co., Inc., and Lazard
Freres & Co., New York,
45% each, and
Wegener & Daly, Inc., Boise, 10%.
Com¬
pany will
offer to holders of its 32,130
shares of
7%
and 28,457 shares ,o£ $6
preferred
stock,
preferred
the
stock
to
opportunity
Aug.
open
The exchange offer will be
from about July 1 to July 22. The new
1,
1944.
not
by
at
subscribed
a
price
.
to
proceeds
Net
amendment.
to
used
be
will
cash and working
capital positions of the company and to
the acquisition of additional plants.
No
underwriters named.
Filed June 21, 1944.
improve
J
BEN-HUR
Feb,-
1,
debentures,
1951
shares
ferred
to
capital.
Pacific
retire
bank
Details- in
pre¬
of conversion).
and working
Calif,
named underwriters.
1943.
1944/
prior
loans
of
Co.
— $300,000
series of 1943,
11,400
and
(for purpose
Proceeds
& Co.
INC.
PRODUCTS,
convertible
due
and
Wyeth
Filed Dec.
V'-V
"Chronicle,"
1,
stock
will
cumulative
be
Any shares of the
1944.
has ..filed
registration
a
subordinated y debenture
$250,000
notes
beaming interest at rate of 4% per annun
and maturing in five and ten years fron
date of issue.
Notes are to be sold at theii
face value,
1944.
COMPANY,
INC.,
has filed
a
reduction
of
bank
loans.
& Co., Columbian Securi¬
ties Corp.
and Seltsam & Co., Inc., are
underwriters.
Filed June 3, 1944.
Details
through
Beecroft,
in
the
Cole
"Chronicle/' June 8,
GENERAL
PRINTING
INK
CORP.
registration
a
]EC 5%
value,
ferred
their
lor
of
outstanding $6 cumulative pre¬
the
privilege of exchanging
stock
shares
the
on
new
a
share
$4.50
for
preferred
share
stock
CO.,
INC.,
preferred stock and $300,000
preferred stock, both $100 par
Serurities
will
be
by
offered
rison-Knudsen Co., Inc., at par.
of
the issue
haj
statement for $200,000
.Inc..
and
basis
&
;
associates,
was
Tho
PERFEX
„
CORP.
has
filed
statement
shares
mon
stock,
The
for 21,803
$4 par value.
Mor-
Any part
official?
will
be
sold
through Wegener & Daly.
Inc., Boise, Idaho, as underwriters.
Com¬
pany
in. an
amendment
filed
June- 10
proposes
to offer $100,000 4%
series F
demand' certificates and $100,000 4% series
Y
Proceeds for work¬
certificates at $100.
Details
capital.
Filed
in
"Chronicle,"
May
SERVICE
INC.
May 23.
NEW ORLEANS
has filed
500,000
PUBLIC
a registration statement for $34,first mortgage bonds series due
1974 and
par
and
$100.
/■
registra¬
a
of
com¬
shares
are
being offered for subscription to holders cf
stock at the rate of
for
each
five
conditioned
holders
and
the
not
the
aggregating
used
shares held.
.upon
shares
chasing
writer.
June
500,000
5%
and
series
Stock
for
is
will
Light
share
on
of
&
:
:
$6
stock
mortgage
Feb.
1,
1971.
preferred
Power
offered for sale
be
ding.
first
share
for
:
1
OKLA.—$1,-
preferred
due
exchange
Southwestern
sidiary)
3Va%
be
The
/
OF
$6,600,000
A
will
capital.
1944.
CO.
cumulative
$100)
.
bonds,
loans
principal under¬
1944.
Details in
22,
SERVICE
pur¬
stock¬
by
Proceeds
working
named
"Chronicle," July 6,
PUBLIC
offering? is
procuring
company
is
Filed
The
underwriters
$550,000.
Co.
share
new
subscribed
additional
for
Wisconsin
one
Co.
of
(sub¬
basis.
Bonds
at competitive
bid¬
Registration effective Jan.
10, 1944.
1943. Details in "Chronicle,"
Filed Dec. 21,
March
16/ 1944. /,^.' /
^ a
.STERLING ENGINE CO. has filed
istration
statement
for
204,075
reg-^
a
shares
of
stock, of which 23,225 are being
by the company through underwrit¬
and
180,850 shares by three present
common
issued
ers
stockholders.
204.075
che
exercise
of
of
warrants to
for
Warrants
&
Burr.
writers
&
registration
which
Inc.,
as
will
the
retain
the
under¬
the
remaining
underwriters and war¬
50,000
of
statement.
be issued
will
of
manager
distribute
the
shares will
among
for
be
issued
com¬
Burr
management
New York are
Filed
April
of
principal underwrit¬
24,
"Chronicle," May,
1944/
Details
CUBA.—696,702
registered,
owned
443,850
the
by
SUGAR
shares
of
CO.
common
Of shrs.
outstanding
and
City Bank, N. Y.
agreed to pur¬
first mortgage (col¬
are
National
underwriters
have
of
convertible bonds of company,
5%
Oct.
in
1944.
4,
VERTIENTES-CAMAGUEY
due
to
the
Proceeds for working capital.
•
Co.,
ers.
of
purchase 100,-
50,000 shares will
Co.,
and
members
pany.
on
from
years
thereof
25,000
public
at $4.50 per share,
and after the
common,
three
to
effective > date
to
to
is $3.75 per share.
An ad¬
100,000 shares is'reserved against
000 shares
prior
Offering price
shares
ditional
1,
owned by National City
Underwriters propose to con¬
or prior to closing and
1951,
Bank, N. Y.
vert these bonds at
the 252,852 shares of common
are
received
by
stock which
the underwriters on such
conversion, together with the 443,850 shrs.
previously
will
mentioned,
total stock to be offered.
make
up
Harriman
the
Ripley
&
Co., Inc., N. Y., principal underwriter.
Filed Mar 29, 1944. Details in "Chronicle,"
April 6, 1944.
ICC Rail Comment
Vilas & Hickey, 49 Wall Street,
New
York
City, members of the
New York Stock Exchange, have
of
ICC
an
rail
interesting summary
giving fig¬
comment
for the first five
ures
months of
1944.
Copies of this summary are
available to dealers
on
request
from Vilas &
Hickey.
not sold by company
has
35,000 shares of $4.50 preferred
stock, series Accumulative (no par). Com¬
pany is offering to holders of the 33,926
shares
Blodgett,
prepared
MORRISON-KNUDSEN
31.
registered
by
July 10.
Webster
CWT
received, which the company rejected.
price named by the bankers was 101.
chase' $1,663,500
filed
an
stock
received
were
a.m.
by Stone
lateral)
has
ing
1944.
10
made
MISSISSIPPI VALLEY PUBLIC SERVICE
series
registration statement for 2,500 shares of
preferred stock, 5% cumulative ($100 par).
Price to public $103 per share.
Proceeds
will be used to increase working capital
stock
to
up
bid,
Several
series L 6%
FLEMING
preferred
one
and
only to members of the issuing
Mutual
/
.
company
Only
stock ($6.50 par), U. S. currency.
9,
Co. for investment.
Filed May
Details in "Chronicle," June 8,
.■■'/;
5%
the
OF
CO.
be sold to Lumbermens
will
Casualty
29, 1944.
the
stockholders.
Proceeds will be
used to increase working capital and re¬
duce
bank
loans.
Filed June
12,
1944.
Details in "Chronicle." June 22. 1944.
corporate
registered 15,000 shares of 5%
cumulative
preferred
stock ($100 par)
EQUIPMENT FINANCE CORP. filed a Company is offering to holders of its out¬
registration statement for 14,000 shares standing 7% cumulative preferred stock;
4% non-cumulative series 2 preferred, par
series
A,
and 6%
cumulative preferred
$100.
Price to the public $100 per share. stock, series B, the privilege of exchanging
Proceeds
for, acquisition
of factory and
their old
stock for new preferred
on
a
warehouse buildings and additional trucks.
sh&re for share basis, with a cash adjust¬
Filed May 19, 1944. Details ia "Chronicle,"
ment amounting to $7.8314 a share on the
May 25.
■
/•• 7% stock and $2.66% a share on the 6 %.
preferred.
The exchange offer will expirf
at noon
on
May 20.
Underwriters an
EXCESS INSURANCE CO. OF AMERICA
Milwaukee
Co.,
5,750 shares; Wisconsir
has filed a registration statement for 48,981
shares
of
capital stock
(par $5). Co., 4,750; Morris F. Fox & Co., 1,500
Loewi & Co..
1,500: Bingham, Sheldon &
Shares are to be offered for subscription to
present stockholders
of record May
31, Co., 1,000 all of Milwaukee, and A. C
Tarras & Co., Winona, Minn., 500.
Filed
1944, on a pro rata basis at $8 per share.
1944.
Details in "Chronicle,"
Net proceeds will be added to company's April 25,
May 4.
; '/.'■■/
capital, and surplus funds.
Unsubscribed
shares
the
on
corporation and individual members of its
20,
March
i:./"
filed
proposing invita«
bidding
under
rule U-50.
Offering
data to
be
completed by post effective amendment.
\\
Proposals for exchange and purchase cf
rants
WHOLESALE
statement
fo*
COOPERATIVE
MIDLAND
12
May
on
competitive
25,000
1944.
the
Details in "Chronicle," June 29, 1944,
5%
preferred
Aug.
De¬
ex¬
change their shares for new 4% preferred
stock on a share for share basis togethe:
with $8 in cash and accrued dividends tr
from
7% and
$6 preferred stock not. deposited for ex¬
ARDEN FARMS CO. has registered' 35,-' change will be redeemed on Aug. 1, 1944.
714 shares of $3 cumulative and partici¬
at $110 per share plus accrued dividendr
that
date.
The
Underwriters
have
pating preferred stock, without par value. to
Company
has#1, offered to holders of Hs agreed to purchase any of the 4% pre¬
preferred
stock rights to
subscribe for ferred shares not Issued pursuant to the
shares of the new preferred at the rate
exchange offer.
The price to the public
of one share for each 2Va > shares held
will be $102 per share.
Filed June 13.
1944.
Details in
Company proposes to sell to the public any
"Chronicle," June 22,
June ;8, 1944.
be
of
(par
POWER
IDAHO
1944.
17,
tion
23.
May
Company
tion
■"
-
"Chronicle,"
Filed May
amendment with the SEC
bonds, series D, 3Va%, due Feb.
X, 1964.
Proceeds will be used to pay
company's $3,500/000 3% collateral prom¬
issory notes due June 1, 1948; to pay for
additions, improvements and betterments oi
plant and properties to be made prior tc
the close of 1945..
Dillon; Read & CoNew York,
and Dean Witter & Co., San
in
statement for
cumulative preferred
in "Chronicle," April 27,
1944.
Exemption from competitive bidding rule
denied by SEC in opinion' issued May 5,
mortgage
underwriters.
registration
a
tails
HAWAIIAN ELECTRIC CO., LTD., filed
registration statement for $5,000,000 first
Details
29,
-.
.
$100 per share.
par
by amendment.
years.
Filec"
,/.-/_
June
'
..
share basis plus a cash payment to be filed
gen¬
"Chronicle,"
in
'
■
Company plans
to Issue the 220,078 shares of 5% preferred
stock .to effect the retirement by exchange
or
redemption
of
an
equal
number
of
shares of its 7%, 6% and 51$% preferred
stock, the exchange to be on a share for
deposit shares in
Details
filed
has
stock,
All stock¬
a period of 10
underwriters.
are
1944.
to
"Chronicle,"
'
'
NORTHERN INDIANA PUBLIC SERVICE
CO.
stock
the
to
price.
same
trust for
&
29,
.June 8, 1944.
,a
be
at the
HAYES
us.
.'/■V.-
1969, and 350.000 shares of common stock
(par $10) .
The .shares of stock are issued
and outstanding and are being offered foi
Cities
MACHINE
subscribed
not
eral
in
■'/ /
common
registration
a
Details
;
220,078 shares of 5%
pre-emptive
common
Co.,
6%
gold
mortgage
1, 1946, and $283,000 Saint
Street
required, exclusive of accrued interest and
dividends, is $44,039,275.
Filed June 22,
proportion to the
respective premiums paid by them upon
tnsurance policies issued by Mutual.
Vot¬
ing trust certificates representing share
1944.
statement for $2,000,000 4 \<2 'fn
15-year sinking fund debs., due
June, 1959, and 68,450 shares of capital
Stock,
without par
value.
The 68,450
Shares of capital stock are to be offered
for subscription to the holders of capital
Stock at the rate of one share for each
four shares" held.. The subscription price
CO. has
ELECTRIC
registration statement for $10,600,first mortgage bonds, 3Vz% series due
of
AMERICAN
filed
_
a
account
/
1944.
"Chronicle/' July 6,
.
registration statement for 150,of
common* stock
(par $10).
1944, of $5,000,000 debentures,
1,
used
be
the
'
received
prior to
will
through
with the proceeds to be
corporation,
together
.'from the sale by the
'redemptions involve the payment of $300,000
(par $100).
The pro¬
the sale of the preferred stock,
preferred stcick
tive
NEW FILINGS
v>
List
or
shares
CORPORATION, successor
statement for 50)000 shares of
t
mined
have
the
addi¬
Railway Co. first mortgage
4% gold bonds due Jan. 1, 1952.
The total
share. in
list
a
due May
Charles
and
stock.
1944.
of Issues
whose registration statements were filed
twenty days or more ago, but whose
offering dates have not been deter>
below
present
named
THURSDAY, JULY 20
MARATHON
?
July 10, 1944 at 99% and
Offered
I /•';
Business—Textile specialty business.
Offering—Offering price to the public i?
to be filed by amendment, but is to yield,
the company'"WfrfTt price of not; less than
$10 per. share.'
,//,")
,
1944.
29,
June
Z>
Mich.
Details in "Chron-
rtf. Filed June 20, 1944.
*
icle."
We
to
for
are
subscribe
per
(Francisco,
^^UNDETERMINED
.
.
'fotr-nine
OF OFFERING
DATES
f
$20
Rule
such
from
company's treasury as
required will be used to redeem
securities: 77,798 shares of $7
Railroad
borne
bonds
1944.
said
bidding
with
stock; $11,849,500 first and re¬
funding mortgage gold bonds, series A, 5%
due Oct. 1, 1952; $17,856,000 first and re¬
funding mortgage gold bonds, series B„ 5%
due June 1, 1955; $4,625,380 6% mortgage
gold Income bonds, series A and series B,
due Nov. 1, 1949; $392,000 Canal & Clai¬
stock, $20 par,
common
certificates /for
Germantown
•■
pany. •
of
trust
together
preferred
Policyholders of Mutual Fire Insurance 0'.
;//■/' •//y;
operating, com¬
Z#11;; •..v- /
// 1 .•
Minn.
Business—Public
sale
voting
South,
Avenue
Second
shares
000
pursuant to the
cash
be
following
1941
/■''// :///'// V1'//"#
.
proceeds
may
-:
,
sale
«
f
tional
'
;•
for
competitive
-
Net
GERMANTQWN FIRE INSURANCE CO.
has filed a registration statement for 50,-
series preferred stock, cumu¬
(par $100).
U-50.
Offering price to public' of stock not
exchange will be filed by amend¬
Filed June
17,
1944.
Details in
dakota utilities col
statement for 20,894
.
Address—831
shares-are
21,252
common
the- company'streasury,
.shares each .ihefidr; by Robert
by
^..'/
'
offered
Commission's
per
$105
ment.
held
28,000
Inc., a whollyW. Johnson
owned - subsidiary; y Merrill Lynch, Pierce1,
: :
•'and J. Seward/Johnson.V-- Proceeds to the. ment/;
Fenner & Beane, head the group of under¬
to the public will be
company will w|*used7 for general corporate, // Offering—Price
writers.
Fijed June 21, 1944.
Details in
supplied, by amendment.. •
.purposes. -.-The (underwriters of the pre¬
^'Chronicle," JUhe 29, 1944 '
"
ferred stock- arc Morgan-. Stanley .& ; Co.,. ViRegistration Statement No. 2-5423. Form
/ Offered July 11 at $42.50 per share.'
Dominick
& Dominick,
S-l.(7-7-44).;. V
Clark, Dodge &
by
.
7 Lerner
price
stock,
issued in
Details
registration
a
shares of 5 %,
is issued and outstanding
1.138 shares held by the com¬
Seward j Johnson.
J.
offered
be
bidding
Filed
July 1, 1944,
"Chronicle," July 6, 1944.
filed
pany-in- its treasury,...,19,587 shares- held by
Robert W. Johnson and 15,492 shares held
by
will
stock
and
competitive
WEDNESDAY, JULY 26
registered
-
bonds
redemption
preferred
$6
"Chronicle," June 29, 1944.
$100) and 77,252 shares of
stock (par ,$12,50).
Th§ preferred
and includes,
issued, add .outstanding and do not repre¬
sent new financing.
Of the shares regis-
aggregate
stock, $10
Electric Co.
amendment.
in
(par
common
District
under the Com¬
bidding rule U-50.
of the underwriters will be filed by
Names
*
4%
common
Empire
competitive
mission's
//§
A
the
of
shares
the
of
par,
.companies
constituent
the
of
by it, in exchange for an
350,000
the
to be
are
share
plus- ac¬
crued
dividends
from
July
1,
1944,
to
the redemption date, over the Initial pub¬
lic offering
price of the $4.50 preferred
stock.
Cash proceeds from
sale of any
unexchanged shares, with treasury cash,
will be used to redeem/ at $105 per share
plus accrued dividends, all unexchanged
shares of the $6 preferred stock, and to
the payment" of the cash adjustment pay¬
able to holders of the $6 preferred stock
making the exchange.
Shields & Co., New
York, is named principal underwriter, with
names of others to be supplied by amend¬
of
Cities
securities
the
of
excess
Service Power & Light
Co.
proposes
to acquire
by merger the
properties of Ozark Utilities Co., Lawrence
County Water, Light & Cold Storage Co.
and Benton County Utilities Corp.
In con¬
junction with this merger Cities Service
Power & Light Co. is surrendering all the
by
in cash per share equal to the
amount
an
Empire District Electric Co. which is con¬
trolled
OFFERINGS
199
#*'
..v-A,
77,798 shares
The interest
dividend
rate
plus filed by amendment.
oh
of preferred
rate
the
on
stock,
the bonds
stock
will
be
The bonds and stock
Interesting Situations
International
Paper
Co.
,
and
Holding Co. offer inter¬
Amerex
esting situations, according to de¬
tailed
memoranda
issued
by
Amott,
Baker
&
Co.,
of
these
memoranda
150
Copies
Imh.
Broadway, New York City.
discussing
present possibilities and post-war
outlook may be had from the firm
IIAnover 2-0050
it is important to you, that the entire business
CUBAN SECURITIES
of
SUGAR
RAILROAD
GOVERNMENT
Electro!, Inc.
/
Majestic Radio & Tel.
Markets
Firm Trading
•®/
REMEMBER...
Teletype—N. Y. 1-971
•
Thursday, July 13, 1944
FINANCIAL CHRONICLE.
THE COMMERCIAL &
200
our
Home App.
Bendix
organization
England Pub. Serv.
New
IS making accurate and firm trading markets for :
Howard Stores Corp.
brokers', dealers and institutions only, in
no. INC.
PARL MARKS &
OVER
AFFILIATE: CARL MARKS &
CO. Inc. CHICAGOr^
.
v
Members
?
the greater
philadelphia
.
However, it was reported that just prior to the ending
Drive a large block of partially tax-exempt
Securities were liquidated by insurance companies and other investors
to provide funds for the purchase of a like amount of the 2% bonds
due 1952/1954:. *> - . {
• •
.
.
of the Fifth War Loan
,,
.
-1
/
Common
1-576
Memphis St. Railway
•
■
unforeseen developments take place new
financing, by the Treasury is not expected until late fall, since the
funds obtained in the recent War Loan: drive, together with the
anticipated income purchases of government bonds, by insurance com¬
panies and saving institutions, as well as other revenues of the gov¬
ernment,: should be sufficient to carry them'. along for several
However, unless some
*;
\
Likewise, 1944 is an election year
financing if possible until
and the Treasury no doubt
after the election, and ap¬
banks outside
-i
'
...
•
•
our-
®,
in late November or early
Drive may begin. ...
scale until sometime
the Sixth War Loan
memoranda
'•
•!,
4
..
Bittner & Co.
;
80 Broad St., N. Y. C;
v
■
.
'
(4)
Teletype
NY 1-492
;
Outstanding Cement Stock
An
December when
*
.
BOwling" Green 9-2590
parently with sufficient funds to carry them along, the govern¬
ment is not expected to be in the money market again on a large
in their govern-
,
r.
developments—earnings
;incorporated in
Telephone -
will avoid
; the New York area have been making changes
ment holdings, resulting in a minor lengthening
Preferred"
'
■■
Recent
months.,..
;
number of commercial
is indicated that a
It
•
Gary Railways Inc.
Teletype
york
new
Future Borrowing
(
Portfolio Changes —
Bell
telephone
market in the pas!
particularly in the
primarily to purchases by the commer¬
tax-exempt obligations, which had been
quite heavily liquidated in previous war loan drives, were offereo
again in the market, but this time: in considerably smaller amounts,
-due to the decreasing supply and the need of present holders for tax
.
/•
YORK- 5
Enterprise 6015
2-3600
rector
»
Association
NEW
STREET,
NASSAU
45
long term tax-exempts, due
cial banks.
.
.
The partially
protection.
incorporated . .
Security Dealers
York
New
v
of comparative inactivity during
part of the Fifth War Loan, the government bond
week has been quite active with prices improving,
1-1397
Y.
n.
Kobbe, Gearhart & Company
Governments"
CHIPPENDALE,
i
By JOHN T.
HAnover 2-8780
St., N.Y,
Teletype
"Our Reporter On
Following a period
Security Dealers Ass'n
Y.
N.
25 Broad
telephone
:
M.S.W1EN&C0.
Members
;
?
COUNTER SECURITIES
New York 4, N. Y.
50 Broad Street
;
-
(Actual Trading Markets, Always)
SPECIALISTS
=====
THE
-
FOREIGN SECURITIES
V
With
a
Dividend Arrearage
v
of maturities
As for the commercial banks, very little in the way of new issues
Riverside Cement
in order to increase income.... It is stated that these institutions
of government obligations is in the immediate offing for them and
have completed very comprehensive surveys of their deposit sitClass A
the most that would appear to be available to them would be limited
/ nation/and the probable effect the ending of the war will have
new
offerings of Treasury bills and Certificates of Indebtedness
$1.25 Cumulative Participating
on deposits and the business and industry in their localities. ...
which would not result in any substantial increase in deposits. . . .
.-v«
Slock
\ Based on such studies these banks have decided that they are
Limiting of the commercial banks' participation in War Loan drives
I well entrenched for any changes that may take place in deposits
Market 13% -14
and in the recent financing of the war is a favorable development
through their holdings of short term government securities, and
since it has effectively retarded the deposit growth with its infla¬
Circular sent upon request
In order to make more effective use of their funds are going into
tionary implications. . . .
somewhat longer maturities.... An example of this was the sale
LERNER & CO.
recently by one of these institutions of the 1%% bonds due June
Trading Action
*
10 POST OFFICE SQUARE
15, 1948 at about 101 8/32 and the purchase of the 2% bonds due
BOSTON 9, MASS.
Trading started this week in the 2% bonds due June 15, 1952/1954
Sept. 15, 1951/1953 at approximately 100 16/32. .
Tel. HUB 1990
Teletype BS 69
and they were recently quoted 100.9/32 bid, offered at 100.10/32
Now that the Fifth War Loan has been successfully concluded
indicating a premium above the offering price of 9/32. . . . This
without offering securities to the commercial banks, the question- is
premium was somewhat more than had been anticipated and is
being raised, when will offerings of new government securities be
prbbably due in part to the fact that the dealers, who had subscribed
Willi Biseieis As
made to these institutions?
Likewise, when can the Sixth War
to these bonds during the drive, were not in a position immediately
J Loan Drive be expected to get under way. ... An early ending of the
to use their bonds to meet the needs of the commercial banks while
Real Estate
war would
be the best answer, but since that cannot be forecast
individuals with bonds, were supplying the demand only at advanc¬
financial circles are looking at conditions as they may be aside from
N. Edward Veron is now asso¬
ing prices.
The heavy demand for the new 2%-bonds, as well as
the purely military aspects of the situation. . . . The next fiscal period
ciated
with
Dunne
& Co.,
25
the remote prospects of any new issues being offered to the com¬
should see some further contraction in government spending barring
mercial banks for some time to come, may mean that the entire Broad Street/ New York City, as
unforeseen vvar developments since military expenditures appear to
manager
of
their
real estate
government bond market may seek higher levels. ., .
have passed the peak,
®®/-■'//;•' ®;®®;'K//;://■■• ®®®:
securities
department,
handling
* '
The 114 notes due Mar. 15, 1947, proved to be popular with
real estate bonds, title certificates,
investors desiring a high degree of liquidity with a return some¬
Deferred Payments
and whole mortgages.
what better than that available in the certificates.» .. They were
Mr. Veron's experience in real
Despite conversion problems tax payments should remain high V
recently quoted 100.8/32 bid, offered at 100.9/32. , . . Because of
so that the government deficit financing should not be as large as in
estate matters dates from
1921*
the shortage of 1947 maturities, the commercial banks have been
the past.
./. The Treasury recently announced that insurance com¬
Eight years ago he entered the
active buyers of these securities.
real estate securities field. /Mr.
panies and saving institutions could anticipate future income and sub¬
scribe to additional amounts of government obligations offered in
Veron, who is also an attorney at
the Fifth War Loan Drive before the close of the drive (July 8
law,
specialized in real estate
matters prior to that time.
1944), but payment for them need not be made before Sept. 30,
He was recently with Central
1944
.:
A veteran Washington observer estimates that our minimum
/®/®;'
® ®®
Investors,
Inc., of New
The use of deferred payments for securities is not a new
national post-war budgets will approximate $20 billion annually and Group
York City.
(///'.® '
breaks up his estimate under the following headings:
development by the Treasury, since it was used in the Third War
-®® Billion
Loan, although at that time it was limited to insurance companies,
and the payment date was extended for a shorter period after
Ordinary government expenditures, incl. interest on the FedInteresting Situation
the ending of the drive.
This method should enable the gov®. eral debt.
' $6¥2
•
•
•
.
.
...
Manager®
.
.
.
.
....
.
;
-
.
®;«|Posl-War Expenditures And Taxes
•
.
.
•
ernment
to
would
which
recently
further
be
in
.
considerable
receive
addition
completed drive.
.
.
.
from
sums
these institutions
obtained in the
This would seem to indicate no
to the banks during the
need of government offerings
.
.
.
j
1 and Sept. 1 will no doubt
will the maturing bills. .
.
The amount of Treas¬
Certificates of Indebtedness due Aug.
be "rolled over"
ury
as
.
decide to
notes due Sept. 15 is not large and the Treasury may
payments to veterans..
———u————
Aids to agriculture-——-————.—————.
Public works and relief
———
All other items, iricl. Social Security & foreign relief—.
With these figures as a base he®
Aid and
'
period ending Sept. 30.
expenses—5Vz
3
1V2
All military
funds already
to
potential national income
the likelihood of tax reduc¬
surveys
and
IV2
2
H. R. Baker &
jCo., Russ Bldg.,
Francisco, Calif., have avail¬
San
able
an
-
interesting
Northrop Aircraft.
report
on
Copies of this
report may be had from the firm
upon request.
.
is going to shape up as one of our
many huge post-war problems
Attractive Situation
do we reduce taxes as promptly
and as substantially as possible,
Panama
Coco-Cola
offers
an
he comes to the
conclusion that the budget can be leaving the debt at high levels, or interesting situation according to
ing of Treasury bills could be increased by $200,000,000 starting the
do we keep taxes at their approx¬ circular
being distributed by Hoit,
early part of October. .
.
The Oct. 1 maturity of Certificates of balanced and the tax on corporate imate
present levels and try to Rose & Troster, 74 Trinity Place,
eliminated.
Pro¬
Indebtedness can be readily refunded, but in the event the Treasury excess profits
bring down Federal debt?
New York City.
Copies of this
feels it has needs for additional funds, the refunding of this issue cedure along this line, however,
them off instead of refunding them. ... If funds should be
needed due to the payment of the maturing notes, the weekly offer¬
pay
could
be
ment...
a
medium
to
.
index
Page
Eastern States Pfd.
Pressurelube
Bank
and
Stand. Coated Prod. Pfd.
Insurance
Broker-Dealer
Calendar
of
182
Stocks.
Personnel
New* Security
Cent, of Ga. Mobile 5s, 1946
Flotations 199
186
Canadian Securities
Mutual Funds
Bell
COrtlandt 7-0744
Teletype NY 1-886
184
■
Reporter's Report...
Public
Telephone
„
Utility
196
Governments..... 200
Reporter on
Our
New York 5
....
..
.....
Our
W. T. BONN & CO.
176
Items
Municipal News and Notes
Broadway
At
$110
national income level
a
billion
provide some new money for the govern¬ will leave no margin for any re¬
duction of the national debt.
'
„•
,
At a national income level of
Tennessee Products
120
tions.
of
193
Securities...;.......1.
176
Railroad Securities.,
175
Real Estate Securities
174
Securities
Salesman's
Tomorrow's
Says
Corner
(The) 179
Markets—Walter Whyte
.
176
This is not a too
tion
to
tempting ques¬
about .in these hot
think
but it is a problem
that is going to be with us for so
$120 billion a substantial margin
many decades to come and none
would be left over and above a
of. us
can
afford to be casual
balance of the budget, a margin
about it.
It is a problem for each
which would permit not only the
and
every American, to wrestle
elimination of excess profits taxes
with—we cannot "let George do
but reduction of excise taxes and
it."—Ralph E. Samuel & Co.
individual
Here
normal
however,
again,
eliminations
or
taxes
as
reductions
We
cannot
say
that we found
encouraging, for.
certainly if they are accurate they
figures
indicate
long,
too
that
it
is
going
to be a
long while before we can
reduction and debt
And this undoubtedly
have both tax
reductions
be
had
from
the
Raymond
&
Co.,
Empire Sheet & Tin Plate 6s
Liberty Baking Pfd.
Street/Boston, Mass., have
interesting
situation
may
letter on
the
be had from Ray¬
mond & Co. upon
request.
& Coke
issued
special analytical letter of Bal¬
timore & Ohio 4%s of 1960. Copies
this
Davis Coal
148 State
a
of
Dept. Stores 4s-6s
Quaker City Cold Storage 5s
Empire Steel Corp. Com.
Interesting Rail
for debt re¬
duction.
the
may
American
well.
along these lines
would leave nothing
circular
firm upon request.
and torrid days
« *
Hill, Thompson & Co., In<
Markets
120
and
Situations for Dealeri
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY l-26<
@FedFRASER