Full text of Commercial and Financial Chronicle : July 16, 1942, Vol. 156, No. 4090, Section 2

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Final Edition

In 2 Sections

-<,

.

(Reg.U.6.

Volume

New

Number 4090

156

GENERAL

A direct Federal farm

loans
field

in

mortgage lending system handling all farm

country and eliminating all private interests from the
result from enacting the proposed Fulmer Bill (H. R.

the

would

7091), it is declared in a special report issued on July 6 by the Farm
Loan Committee of the Mortgage Bankers Association of America.

made

-The committee

exhaustive investigation of the

an

seeking to reorganize the
credit system.
The

measure

farm

Federal

Fulmer

new

the

is

bill

original

of

revision

a

which

measure

the

National

"The

Farm

As¬

Loan

sociations, the report pointed out,
will have

no

Vs

1%

an

of

from

total

offices

business

merely branch

correspondents

or

had

organizations
opposed.
The

farm

an¬

nouncement from the Association

"The

bill

new

Federal

Banks

Land

would

the

that

means

actually

but
the

longer be banks
become
agencies of

no

would

Credit

Farm

in

Administration

Federally-operated
farm mortgage financing, the re¬
port said. All stock of the banks
of

system

a

and

sociation

would be
These

cash.

for

As¬

National Farm Loan

the

retired

at

par

without
capital or stockholders, will de¬
pend entirely on government ap¬
propriations for guaranty funds.
banks,

have

would

tions

J,

Editorials

farm bor¬
rowers
would
risk
nothing to
cover
possible losses except the
membership fee." It is added:
will be determined

"Losses

:

Page
Framing The Great Alibi........... 186
-n'

Praise

From

Fiom

Caesar.

Regular

\

185

,...

Situation

185

Washington

Ahead

the

of

185

,

>

Common

Stock

Banks and Trust

NYSE

Valuations........

Bond

Debt Limit

At June

Cos.,

and

nually

for

an¬

the

of

losses

the

then

and

that

extent

is

Association

50%

business

its

on

each

but

special

only

to

distribu¬

tion of

profits and dividends from
the banks and from memberships
in

received

that

will

year

meet

that share of the loss.
"The

;

;

inequities of this plan of

(Continued

'

192)

page

on

200
197

197

30

General

of

Trade
.188

.......

Record

For

Six

First

Months.,,..

193

Paperboard Industry Statistics
Weekly Lumber Movement

195
198

Fertilizer

196

Price Index.

Weekly Coal and Coke Output
Weekly Steel Review.
Operating
Results In First

19G
193
Six
196, 197

Moody's Daily Commodity Index.... 194
Weekly Electric Power Output...... 194
Weekly Crude Oil Production...... 198
Non-Ferrous

Metals

Market,.,.,...

June Bank Debits
Finance

Operations

194
195

—

Companies

Report

May

195
195
Financing Curtailed
197
Commercial Paper Outstanding.
193
Coffee Import Quotas.............. 198
June Department Store Sales
199
.......................

Cottonseed Receipts Continue Lower

Mortgage

June

Retail

Bankers

Prices

Dollar

a

spectacle that the nation is obliged
Congress in this year of our Lord,
1942, when the whole world is locked in a deadly struggle

from

which

Recede..........

193

Acceptances........

193

ourselves

we

FROM WASHINGTON

Of

Aliens

.

191

Says Federal Price Control Does Not
Impair State Statute
191
1942 War Output $45 Billion..
191

AHEAD Of THE NEWS

Wholesalers'

Sales, Inventories......

191

Cotton Acreage Report...191
Nazi Saboteurs On Trial
188

By CARLISLE BARGERON

Says Public Has "Fear"- Phobia.....
AEF

is

propagandists,
who are making their money in that new and well-paying industry
which has burgeoned in this country—worrying about the com¬
placency of the American
people—that the case of a fellow
It

Elklund has

named
war

commentary on the Washington

strange

a

managers

absorbing the interest of all Washington,

been

He was being tried for

and civilian population alike.

sniping and killing six colored^
people. He had been arrested, and fore Paul McNutt, adopting the
hailed in the local press as the party line, had made a speech to
"sniper" but nobody paid any at¬ a Harlem gathering, saying that
tention to the case until one day it was an "utter outrage" that al¬
he

escaped, handcuffed,

he was

as

being returned to the District jail.
the

In

meantime,

turned
a

verdict
A

der.

the

nied

opportunity in industry, and

so

that

he

jury re¬
happened
degree mur¬

verdict—it

a

of

though Negroes were fighting for
our country they were being de¬

second

Washington

intended to

blaz¬
oned the headlines—Elklund jury
in; Elklund still out.
That
fascinated
people.- They

it

turned their minds from the war,

seeking

paper

.

the

and

conversation

hereabouts,

from

high

officialdom

on

clealt

with

whether

had

captured
three

or

days

he

been

period of

not.

Over

the

fortunes

a

down,

of

Mr.

Elklund held the local newspaper
headlines.

that

the

about,
about
race

There is the

Administration

moved
it

to

involved.

has

was

just

something

say

the

because

was

tration

impression

question

of

The Adminis¬

been making

quite

a

the

and

see

that they got this

concentrated

industry's

labor in the
early century and its bringing in
of

Eastern

that

cheap

of

now

European immigrants,
largely to do with

has

in.

The

the condition

we are

plaint,

have always under¬
that industry looks

stood

as we

it,

is

com¬

labor as a commodity, a sit¬
uation that organized labor has
upon

not lessened—and

cheaply.

that it seeks to

U. S.

188

Supplies.. 188
188

189
189

Distillers

Must Convert Plants......

Revenue

189

Tonnage and

Mileage Fig¬
Gauge......
189
Post War Reorganization Needs
189
States May Tax Land Used By Mili¬
tary Forces
.189
U.
S., Brazil Extend Stabilization
Traffic

ures

^....

Pact

v

Non-Agricultural

189

.

Employment

In¬
190

creases

Savings Essential to National
Solvency
190
Treasury to Reissue Gold Notes..;. 190
Automotive Industry's War Produc¬
tion

No

..............................

Licenses

lators

U.

for

Export

Rule

S.,

Stabilize

Cuba

Rate

problems which

even in ordinary times are the curse
startlingly in evidence on Capitol Hill
today.
It is no less than a national disgrace. It is precisely
the sort of thing which tends to discredit
democracy, which
nonetheless continues to be the by-word of
Congressional
oratory.
Members of the national; legislature have on

than1

more

when
to

recent

one

make

about

194

Lend-Lease Farm Deliveries.........

195

Prepay REA Loans........

FDR

Reports

Funds

On

their

is in these episodes, which have been all too
plentiful of
Tate, relatively little neglect of public duty at a time when
our future calls for a united effort to
bring this horrible
conflict to an early and successful close;
The case of Con¬
gress cannot be so lightly dismissed.
Consider its recent
record in such important matters as taxation, price control,
and the management of government stocks of commodities
which should never have been acquired.
As to taxation,
Congress has had before it for heaven knows how long a
program prepared for it by the Treasury.
Committees in

both houses have been stewing and fretting over these pro¬
posals and others, and accomplishing almost exactly nothing
(Continued

During this calendar

Only

a

few days be¬

(Continued

on

192)

page

will turn out

196

approximately $45,000,000,000.

"Blank

Check"

will

prices.

OPA Alaska Price Formula.,........

197

Aitchison

197

Heads ICC.^

Pay On Porto Alegre Bonds

automotive

198

Financial

000,000

Y.

Fund

Increases......

Reserve

of that total
199

Notice To Our Readers

Purchasing

Agency

Due to
of

the constantly expanding volume of current

obliged, owing to

news

we

are

Farm

Pending

193

185

May Require Compulsory Saving..

,

July War Bond; Quotas

192

Opposes Rubber Supplies Agency...

192
192

In

Scrap Rubber Drive Results

are

mindful of

the

value

of

our

the

pledge to make

"Chronicle"

by

all of the information essential to
the

manifold changes

originating
the

many

in

in tax and

Washington,

every

our

readers,

effort to increase

reporting, without
a

we

delay,

thorough knowledge of
legislative matters

other

together

with

the

activities

Government agencies whose functions

are

of

of in¬

creasing importance to the conduct of business in the present
emergency.




Government

Vetoes

May Requisition Tires.;192

Higher.......;....

Citizenship Loss Bill

of

production

represent

192

Those

connected

Advancing.......

187

can

187

—Donald

Reorganized
Disapproves

a

beginning.

V\

;;•

••

'

reached under present plans this in¬

are

year.

a

.,V

\

V

When the peak

war

goods at

a

rate of approximately

This is three times

as

large

as

the

approximately one-sixth of the entire

War

produc¬

great

are

amazing

with

the

figures,

automotive

and

I

think

that

every

one

industry is entitled to feel

a

deal of honest pride in the fact that such great reliance

be

placed
M.

upon

this industry in

our

time of national peril.

Nelson.

186

of

Steel

Wage
186

Increase

OPA Administrators Have

Subpoena

-

186

Power

Rise

than

tion effort of the whole United States,

New Consular Office In East Africa.

Price

v.;'"

"

more

industry's estimated 1941 sales of $4,000,000,000, and it will

187

Estate Prices

than $5,000,000,000

:

little

dustry will be producing

Luxury Goods..

Predicts Absence of

WPB

year; more

T

192

FDR

than $8,000,-

placed after Pearl Harbor.

V/'T'VV-?.,.£•

....

Real

more

192

Rayon Deliveries

bringing this matter to the attention of

!c:v

$12,000,000,000

Mortgage

limitations, to divert to Section 1 a
considerable amount of material which, under ordinary con¬
ditions, is usually contained in this section of the "Chronicle."
space

at

had been placed with this in¬

goods

war

value of

a

I expect that that

$75,000,000,000,

or

193

Bill.;,.;

paramount importance to business and industry,

were

Yet that is
rates

In

Engineers to Meet......

Opposes

year

major role had been assigned to the

A'v
:
•

200

Brazil

Tool

another to

or

Next

Contracts for rather

industry.

dustry by the end of April this

199

Requirements

Amendment

Establish

kind

$70,000,000,000

to

worth of

one

199

...

Departments Supply Bill
Completed .......................
of

rise

In this great program a

...198

S., Bolivia Tin Pact......

goods of

war

figure

Text

187)

page

the factories of the United States

year

195
195

'

play of race.

on

Praise From Caesar

current

N.

Disheartening Record

disheartening enough to find the President of the
United States and his close associates and advisers wasting
their energy in local political feuds and conflicts, but there

197

Greater

defense has

own

manner at a time like this is,
however, worse than
of the other failings which have been apparent of late,
worse indeed than all the others
together.

......

Sign

resentment

any

196

Russia

keen

manlike

Five Nations Establish Wheat Pool..

Accord

shown

uncomplimentary remarks

conduct, but their

Bill............

.....

Britain,

had

usually left their standing among thougthful citizens worse
instead of better.
The pension and the gas rationing epi¬
sodes did nothing to help matters.
The utter inability of
these lawmakers to attend to public business in a work¬

New Photograph Exposure Meter...,

U.

^occasion

have

commentators

190

194

Supply

un¬

194

i

Army

emerge

Exchange

.....'.

Signs

to

Vio¬

;....;,..................,

Retires From New York Tax Office.

Federal

cheaper labor, that it is discrimi-

Lend-Lease

Bank

Urges Sub-Parity Grain Sale..
To Aid Free French Group....

hear that

to

Get

Funds.............

industry is discriminating against

buy

Now,

To

Insure

FDR

Administration

opportunity* >
Well, to appreciate the irony of
this, you have only to realize that
was

To

fail

of election years are

A

............

well

It is

Policy On Employment
•.........

could

:;A11 the wincing and relenting and refraining, all
the petty squabbles over
patronage, all the small-minded
efforts to get into or to keep in the
good graces of the "folks
back home," and all the apparent callousness to
urgent na¬

Miscellaneous
Government

sorry

scathed.

tional

Review

Commodity Prices—Domestic Index. 196
Carloadings
.199
Weekly Engineering Construction.. 193

Months

liable

194

.....194

Yields

Items About

Federal

It is indeed

to witness in the halls of

Features

Moody's Bond Prices and Yields....

in the

stake

no

Future

system.

new

'

says:

cage,

State

According to the announcement

vigorously

2s

the

of

"present farm borrowers making
up
membership of the Associa¬

and

reports

appear

Banks."

Land

other

items, not covered in this in¬
in Section 1 of this issue,
explained in the notice given on this

fixed income except

and would become

Copy

a

news

dex,

•News

Association and many other bank¬

ing

2nd

Price 60 Cents

CONTENTS

Note-—Various

Financial

by S. M.<$
Committee

dent, and is signed
Waters, Minneapolis,
Chairman.

Editor's

released by Frederick P. Champ, Association Presi¬

The report was

Pat. Office;

York, N. Y., Thursday, July 16, 1942

Pending Bill Would Result In Eliminating
Private Interests From Farm Mortgage Field

Section 2

-

Preferable to

Subsidies..

188

This

is

indeed

Remember the

praise

from

Caesar—and

well

deserved.

days of the Reuter Flan, and all the rest?

THE

186

Reorganized; New
Deputies Appointed
Board,

Production

War

the

nounced

an¬

July 8 a realignment

on

y

:

dorse

of

Donald M. Nelson, Chairman

:

Thursday, July 16, 1942

Similarly the Treasury has persistently refused to en¬
any other method of absorbing the excess of pur¬
chasing power in the hands of workers, such as compulsory
investment in war bonds. It has maintained this position
even when it was
patent to many critics that voluntary bond
From the outset the fight against dnflation,-such as it is,
sales would not absorb half of the 1942 inflation
gap.
been maladroit and one-sided. Recently, when it also

Editorial-

WPB

,

COMMERCIAL & FINANCIAL CHRONICLE

has

What is far worse, the Administration was at the same
began to be apparent that the fight might fizzle completely, time
granting wage demands to war workers that tended to
the Administration's leaders began to lay the ground for
widen the inflation gap and aggravate the problem. Its re¬
their alibi, and decided to pick the goat to blame for the fail¬
fusal to oppose the
wage demands of the unions, its opposi¬
ure.
Congress won the nomination. Not until the Americari
tion to the enactment of a freezing law applicable to wages
public understands this fundamental fact will it grasp the are factors
explaining why the farm bloc could continue to
full import of all the fulmination against Congress recently
demand that "farmers get theirs also."
indulged in by Leon Henderson, and even by the President
In fact, even the actions of the farm bloc leaders in Con¬
himself.
77V... '
777'7-7 7
gress y trace
back to the Administration.
It was
the
It is necessary that, the public understand that Congress
Administration, not Congress, which decided farm prices
is not solely, or even chiefly, to blame for the inadequacies
must
be
raised
early in 1941.
It was the Admin¬
of the anti-inflation fight. This is essential not only in the
istration, not Congress, which first introduced the tech¬
interest of fair play, but also because it is not too late even
nique of boosting farm prices by the crop loan methed, a
now to frame a sound policy that would avert much of the
method which was used in 1941 at the urging of the Admin¬
danger of inflation. <
'
7' 7
istration.; It was only after the farm bloc seized upon the
Congress does rightly deserve blame for failing to enact
-

designed "to tie the
military strategies

WPB

the

of

and

economic

closely together and to make
effective the board's deter¬

more
more

of policies and progoverning the flow of ma-

minations
!

grams

1terials."
Nelson said that under the

Mr.

.

i reorganization the

of

balance

,a

available

the

WPB will keep
allocation of

materials

of

supplies

and the

between the armed forces

civilian economy.

except for the
the country had
completed its industry conversion
He revealed that,

;

smaller

the

in

effort

war

the

that

and

task now
is production
the "tooling-up" period is

major
since
\

plants,

sound fiscal measures,

over.

William

.

Bath

L.

S.

James

and

appointed Deputy
Chairmen of the WPB by Mr. Nel¬

Knowlson

were

by Administration strategy.; At least twice it has allowed
Henderson and the President to jockey it into the'position of

will act as Mr. Nelson's
"chief of staff," while Mr. Knowl¬

seeming to be the only foe, the only obstacle to a successful

of

man

mittee,

former Director of Industry
-Operations, will have charge of
the production program develop¬
son,

ment work.

of

All

the

work—

operational

'

including the industry and ma¬
terial
branches, appropriate bu¬
reaus and the field organization—
is

under a Di¬
Operations. This
post was given to Amory Houghton, formerly Deputy Chief of the
.Bureau of Industry Branches., ;

brought

together

rector General of

-

Mr.

said

Nelson

that

the

reor¬

ganization has the following five
objectives:
"Clear

of

*

the

trolling

decks

and

make

to

expediting

materials

the

*

-

con-

the flow
central

Board's

effort.

"Bring

the Board into closer
military, and interna¬
productuion requirements,

touch

with

tional
and

increase

ties

in

activi¬

Board's

the

over-all

production

war

7 "Strengthen the "topside" policy,

programming and progressreporting
organization
of
the
WPB.
"Concentrate

the

■

operating

parts of the WPB under
.

:
.

and

put

the

work

one

head

increased

emphasis on
industry and commodity branches.
of

"Lighten

<

load
he

administrative

the
the

upon

chairman

that

so

devote his time to essential

can

decisions and to the in¬
creasingly important relations of
policy
the

WPB

with

other

the

war

agencies."

President Roosevelt at his
conference

•\

on

July 7

press

reported

was

to have indicated his disapproval
of

v

general

a

increase

wage

during the
debate on the price control law. Most students branded this
law inadequate and unfair when it was first introduced
Yet when the farm bloc began its greedy fight for even
higher prices than the measure would have allowed, public
attention shifted from the many deficiencies in the bill, and
the Administration to a great extent was able to implant in
the public mind the thought that Congress was holding up
the fight on inflation.
' 77
Henderson has set the same trap for Congress in the
current debates over the appropriation for the OPA, and
Congress again seems likely i to fall-for the bait. Actually,
Congress had a good case against the Henderson fund re'quest, one that could have been successfully defended be¬
fore the Nation's voters. The public would not have sym¬
pathized with the army of 60,000 or 100,000 ''snoopers"

this; happened

which Henderson wished to saddle

came

the Federal

on

payroll.

Too, the public probably would have;sided with Congress in
disapproving of the Henderson plan for subsidizing busi¬

They

pinched by the OPA general price ceilings-

would have believed that such subsidies would have handed
too

great a control over business into the hands of the Price

Director.
But

•_

The

War

Labor

Board

has

under consideration.

approval for

increase

United

the

A fact¬

a

$1

asked

a

by

day wage
the

CIO's

OPA

Subpoena Power

Price Administrator Leon Hen¬

sign

on

July

7

granted

administrators

and

issue

OPA

power

subpoenas

in

tioning. investigations.

to
ra¬

focused

$1

a

And in the

did not bar these wage
boosts in farm

spring of 1942 they

boosts, why should it bar successive

prices?

Administration failure.

mission

by Congress

Each

sacrifice their increases,

their

a

fair, and all-

farmers their premium prices and

incomes and not just

merely pile

new

business. If Congress had insisted upon such a

7 But if the

could

inflation fight. 77

make the Administration the goat of the

the game

com¬

that requires wage earners to

at the outset, and if it insisted upon it now, it

program

see

profits, which calls for taxes that will

soak the increased
burdens upon

of omission and

error

its failure to adopt

inclusive program, a program

businessmen

will

be traced back and laid to the Ad¬

can

ministration's" door, to

-

,

„

Look at each hole in the inflation dike and you
an

came

If the anti-inflation fight

day further rise.

a

legislators ignore this major issue and play

of the greedy farm bloc they will probably be iden¬

tified in the
inflation

public mind

as

responsible for the failure of the

fight—and they will be held liable at the polls. 7

on

77'

777:f

-.

in

point, consider taxes. The real cause of in¬
of purchasing power, over and above the
diminished volume of goods available for consumption. Hen¬
derson figures that this excess, or "inflation gap," will
amount to $17,000,000,000 in 1942, and Jesse Jones has just
a case

flation is the

excess

estimated that the

excess

might reach the startling total of
:

7

v

777

• ■

;

Easily the most effective method of sopping up this ex¬
cess to keep it from
forcing up prices is the imposition of
heavy taxes upon the sources of the excess, which means
taxes

salaries of war workers, and upon
profits of war industries. While the Administration has en¬
dorsed heavy taxes upon business, it has steadfastly opposed
upon

wages and

taxing the wage earners.,

Only its opposition prevented
action, it is said, will per¬
so
many authorities con¬
mit OPA to require concerns be¬
sider the only effective method for reaching the lowering investigated to produce books, bracket beneficiaries of war spending. Nor has it ever sup¬
records and other physical evi¬
ported a payroll deduction tax upon the lowest incomes (al¬
»

enactment of the sales tax which

The

dence,

back for

bloc seized

briefest of summations will show that it is the Administra¬
tion which must and should bear the blame.

$30,000,000,000 in 1943.

derson

10% wage increase, with the aid and encouragement

a

of the Administration.

Price Rise Preferable To

Subsidy Policy

the appropriation bill as one more occasion to boost
prices at the expense of the consumer and attached a 7 In answer to the query as to whether or not there is any differ¬
rider to give the Secretary, of Agriculture veto-power over ence between paying subsidies to an industry which is adversely
affected by rising expenses, and letting the price of the industry's
Henderson's actions. This gave Henderson an opportunity,
product rise, Dr. Lewis Haney, Professor, of Economics at New York
which he immediately seized, to shift attention from the
University, had the following to say recently in the columns of the
issues of a bureaucracy of snoopers, and the subsidy issue New York "Journal American":
"From the beginning of scien-<£to the question of fair prices for the consumer.
;
tific economics the leading econo¬
clothing, we pay higher prices for
Thus, Congress continues ' to let issues slip from its mists have
opposed subsidies. No the Government activities in sub¬
hands, mainly because it allows the farm bloc a free rein, better criticism has ever been
sidizing
the clothing
manufac¬
and as a result it seems likely to become the scape-goat for made than, that, presented by the turer.
In
oneJ. case,; the
price
the failure of the anti-inflation fight. " Actually, even the famous father of political econ¬ rises enough to cover the in¬

Steel Workers.

regional

tained

upon
farm

As

finding panel recently expressed
its

100%, that the Administration parted company with the bloc.
7.
Yet in pushing these demands, where did the farm bloc
gets its inspiration? In the spring of 1941, the unions ob¬

7; .7*.

was unable to keep the debate
these crucial issues. Instead,: the voracious farm

Congress

Certainly, the Administration at no time has ever pre¬
workers in the "Little Steel" in¬
sented to Congress a program that could fairly be expected
dustry.
The President said that to avert inflation:
And on some occasions when Congress
such a wage rise would be a fac¬
seemed about to take a step that would have helped im¬
tor in increasing the cost of
living
measurably to win that inflation fight," the Administration
and hence would conflict with his
stepped in and blocked the action. -

case

techniques of the Administration to seek 100% of

parity instead of 85%, and then 110% and 120% instead of

.

for

anti-inflation program.

;

The first occasion when

ideas and

.

Opposes Steel Wage Rise
J

1; 7.

rout of the inflation menace.

nesses

strategy.
■f

and for its blind insistence upon the

high-priced policies of the selfish and unseeing farm bloc,
But it is even more to be blamed because it has been-gulled

Bath, who was Chair¬
the Requirements Com¬

Mr.

son.

-

.

as

well

as

company

ficials.




of¬

though the Treasury has favored payroll deduction for taxes
upon present income tax payers).

The only de¬

Adam Smith.

omy,

fense of subsidies has

who

economists
ward

or

from

come

backr

represent

decadent nations and in¬

dustries. These have vainly argued
that

giving

by

weak

industries,

crutches to their
those industries

could learn to walk.
"Such

argument, however, is
for our pumppriming.
Unless you create con¬
ditions of supply and demand that
are
favorable,
the
expenditure
an

like the argument

will

never

be

more

than

a

tem¬
;

"Originally, the OPA proposed
to

the burden of fixed

Toll back'

retail

it

till

prices

manufacturer.

fell

on

Then if the

the

manu¬

facturer couldn't bear it he
be

subsidized.

this

But

ago

might
Congress opposed

policy, and it was not adopted.
the Administration has kept
its

after

scheme,

Senator

introduced
gress seems

what

more

a

and

Brown

not

long

of Michigan

bill for it.

Now Con¬

to have become some¬
friendly to the pro¬

Such industries as oil,
sugar,
and clothing have been
especially in mind.
"In
the first
place, note that
subsidies do not help to prevent
posal.

They merely change
the form of inflation.
Instead of
'inflation.'

paying

higher

prices

taxes
to

for,

say

pay

the

In

other

raised and

are

give

of production, and
when we buy. a suit

costs

and I

or-coat:

or

lend

Government

we

case,
are

more money

that

so

it

olir

forced

to the

can

pay

large subsidies to producers who
can't make money at lower fixed
prices.
"In the second place, the sub¬
sidy does not 'hit the spot' as the
price rise does.
Everybody who

is

a

taxpayer or

bear

to

and costly stimulant.

porary

creased
you

Only

the

those

cost

who

bondholder has
of the subsidy.

the

buying

are

particular product bear the rise in
its

price.
'
"Accordingly, the subsidy policy

does

not

tend

to

establish

any

equilibrium between production
and
consumption.
It promotes
costly production.
It encourages
wasteful consumption.
"It is like the New-Deal ''social

security,' only this

time the 're¬
lief' would be given to the enter¬

priser.

Businessmen,

however,

should be the last to fall for such

paternalism.
"The subsidy policy means a
further injection of politics into
business

affairs.

If

we

want

win this war,

direct
ness

to

be military experts,
the fighting and let busi¬

men

direct business."

■\

"

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4090

156

the utter lack of constructiveness

Sees End Of Luxuries
Here By

in

the attitude-and

the

actions of

,

.

■

187

Close Of Year

for

Congress in this matter, or to the many reports,
apparently well authenticated, that one of the difficulties

(Continued From First Page)

.

long while. ' Now that modifications have been made
which apparently are expected to take some of the political
a

has lain

in Henderson's failure to
play the patronage game
according to the usual political rules.
The difference be¬
measures, and versions advanced in each
tween the amount of
money Mr. Henderson is demanding
house,
comes word from Washington that "sentiment" in
ficult1 for citizens of the United
and -whatever he
finally fries out of Congress is not the
States
to
purchase any luxury Congress for doing nothing at all until after the elections difference between constructive
action on the issue in-4
goods—or, for that matter, any¬ is growing. -V'
'
volved and
unworthy action. Neither would omission of
thing beyond the essentials of
Henderson vs. Congress
the special provisions some of the soi disant friends of the
living."
Mr. Wickard went on to
For weeks on end a feud has been
stewing between farmer would insert into the measure render
Say
that
"taxation
is
heavier,
any bill now
Leon Henderson and both branches of Congress.
credit * facilities sharply curtailed
It is not in contemplation sound and acceptable to
thoughtful patriots.
^nd citizens are asked to buy War
yet clear how nearly Mr. Henderson will come to obtaining

T Secretary of Agriculture Wickard declared on July 6 that "by
the end of this year it will be dif¬

Bonds
/

of luxuries."

instead

'

culture at Mexico City, Mr. Wick¬
ard
cited
war
sacrifices
being
made in the United

States listing

these stoppage of produc¬

among

tion of

automobiles, tires, electric
refrigerators, washing machines,
radios,

cleaners and other
devices, as well as non¬
goods contain¬

vacuum

electrical
essential

cal metals.
"we

The Secretary stated
increase

must

produc¬

tion

despite shortages of labor,
farm
machinery and fertilizer,"
and added that these valuable as¬
sets

Cannot

essential
•

•

The

now

wasted

be

surplus

or

serious

facing

on;■.? non¬

crops.

economic

the

problem

Western

Hemi¬

sphere, Mr. Wickard said, is that
the

cotton,
crops

coffee

wheat*
other
basic

and

increasingt while there

are

deficits

are

of

surpluses

pre-war

products.

of

other

agricultural
He said ways must be

■

considered to

alleviate this prob¬

lem.

YY'
YYi-'Y':Y
Secretary VWickard further de¬
clared:'--;,
YY/;;-T 5 • Yv'Y-Y
"For
must

economic

continue

also

reasons

efforts

our

we

deal

to

with

surpluses.
Movement
of
many items will be curtailed, even

though markets are still theoret¬
ically open,; The limiting factor
is

shipping.
in

sugar

We are rationing
United States, al¬

the

though there is sugar in this hem¬
isphere to meet our normal re¬
quirements plus a large part of
the

needs

Britain

of

The sugar is
not

are

and

Movement

of coffee and bananas is

becoming

sinkings.
but

Wheat is piling up

difficult.

have

Ships

the

been

lost
in

loss has been

greater

been

wasted, their machinery and
animals

draft

taken

from

the

•

land, their livestock herds and
poultry flocks greatly reduced.
The immediate problem when the
war
ends will be relief; the na¬
tions of this hemisphere will be
able to prevent large-scale suf¬
fering and starvation by prompt,
action.
The
plans
for > action
should be ready.
*
"But relief is only an expedient;
.

,

reconstruction
It

lem.

the

is

to

seems

chief

ommendations

prob¬

that

me

should be able to make

we

rec¬

some

much

slower

"I

see

likelihood

no

shipping situation will

that

so

the

improve

:

culture

since

peaceful trade.

forts

1919

made

were

self-sufficient
stuffs.

covered.

un¬

.

"Apartment space is not so
tight; However, an undersupply of
apartments is reported in 52% of
,

all

the

in

61%
"As

of the

cities

of

areas.

result of

a

cities, and in 44%
areas.
/
- ;
;
:

other

did

to

in

not

en¬

Great ef¬

make

Europe

essential

food¬

land better suited to

on

and protected by high
walls to keep out lower-

uses,

tariff

cost' wheat

people
their

of

from

unable

the

to

protective

could

have

pro¬

The problem of surpluses

duced.
will

paid more; for
were

their land

foods

V The

abroad.'

Europe

bread, and
enough
of

buy

be

lessened

if

the

post-war

production of
which each produc¬

economy encourages

the

to

crops

tion

is best suited.

area

The

re¬

and

of the cities

re¬

73 %, of. defense

but there is need for re¬
modeling or reconditioning indus¬
areas,

trial

in 44% of defense
vT'Y. :Y...YY

space

areas.

.

.

."The private home building in¬

dustry,
time

almost

paralyzed for a
for defense housing, in

even

localities,

by the lumber
modified, and by stop¬
page of FHA financing, relieved
by/recent amendments, is defin¬
itely ready and able to meet the
demand for war housing, if given
its promised chance, where dwell¬
ings will be permanently needed.

many

ban/

now

This the local boards

culture

a

and

Real Estate

Survey
Finds Prices Rising

War
real

conditions

estate

have

decreased

but selling
estate are higher

turnover,

prices for real
today than they

a

were

year

brium

,57%

real

the

of

estate

market, compiled
National Association of

and

the

of

There

areas.

is

defense

areas.

,

rising

of

volume

able/but the
used to
ties

of

avail¬

tonnage

ships will be
ever-larger quanti¬
new

move

materials

and

include

line,

larger numbers1 of fighting men.
They will be used to increase our
striking
victory."

ing

thus

and

hasten

In conclusion Mr. Wickard said:

"In planning for the future, let
us
think in
terms
of increases
rather than curtailment.
tion of surpluses is
in wartime, chiefly
so

most

of

large cities,
along the
Association which

many

Produc¬

wasted energy

because there
deficits.
There are

advanced in 64%

of report¬

cities, are under last year's
in only
4% of the cities.

The

survey

planning for a post-war
agricultural economy, we cannot
overlook

the

It will be

some

nations

of

Europe-

time after the

war

before they can resume full-scale

production,

for

their

lands




have

a

year

of

war:

"The real
been

Yet

serious

no

effort

has

been

in

a

sprung up in

For

areas.

39%

over

a

country,

the

cities

estate

price rise has

report

of

the

oversupply,
'/■/-•'
\

short.

are

"The

for

outlook

the

six

next

rise in real estate prices, the sur¬

finds, but the

probably

Higher

turnover

continue

prices

war's effect

are

to

will

decrease.

predicted

real estate in

on

fidential. reports
cities of

on

42%

the country,

as

Prices

of

the

57% of the

at least

as

high

as

the present level are predicted in
90%

restrictions1

the

volume

in 57%

areas.

as

heavy

New Consular Office

as

it was

the rate has decreased

The State Department

ington announced
consular

office

on

Wash¬

July 4 that

will

in 43%

of the

a'

cantly,

in

in

Mombaza, Kenya, East Africa.

It

will

cities, and signifi¬
41% of the defense

areas.

"Demand

single-family
dwellings has become greater than
the supply in 64% of the cities of
the

be

in

for

country, and in 71% of the de¬

Miller

of

New

charge

be

opened

of

Ralph

York, who

present

second

Havana

(Cuba) Embassy.

secretary

is

of

no one

has either the

or worse.
acumen or

The

the

magnitude.

its attitude has been little less than
of

Even the

good

stench in the nostrils

men

in all conscience to make friends
the

a

with the good of their country at heart.
Administration, which has always gone far enough

thoughtful

of the farmers, has had

to see that the situation has changed, and that
certainly not the time for the farmers, or their

sense

this is most

:

political allies, to attempt to get the last farthing from the
public. How we do need a forceful, constructive leader some¬
where who is willing to call a spade a spade in discussion of

agricultural questions. What an opportunity many
Congress has missed and is still missing!

a mem¬

ber of

It is this utter

incompetence of Congress which made

possible the rise of the New Deal with all of its madness.
The people were starved for bold leadership, and once it was
provided, even though it was false leadership, they were

nar¬

■'

to be that

As to agriculture, the record of Congress has been un¬
speakably bad. Its chief idea apparently has been to "get
something for the farmer," and since Pearl Harbor much of

of the cities of the country,

and in 92% of defense

transfers.

of the Cities turn¬

is at least

year ago,

have

of

.

con¬

largest cities, and 46% of defense
areas.

of

10% of these defense
all

seems

to take the steps which lessen the strength, so far
as
may be, of the forces generated by artificial war condi¬
tions, and certainly no one has had the temerity to point to
the obvious truth that rigid control of virtually all prices,
even if successful, carries with it
dangers of the first order

There is

footage

square

median of 10%.

a

"War

"

"In

end of half

at the

tion

While

needed.

re¬

Association, it finds this situa¬

rowed

most

urban

of local member boards of

ports
the

should be to divert pur labor, our

commodities

301

covers

areasr~Made from confidential

As
agriculturalists, our objective

capital, our machinery and the
fertility of our land to production

fear!

courage

third of the cities, but on
other hand a
shortage has

about

vey

trouble

in equilibrium

of defense areas.

surplus

some

the

says the
that there real estate prices

have

deficits in peacetime as well.

of the

8%'

level

*

are

In only

have the best story, all

says

power

Estate Boards.

business,
brought a price
drop.
Defense areas, which now

ever-

war

much

of violent economic forces must end in fiasco

„

"Office space is

8%

a

so

people. So also with matters that
price fixing. Congressmen apparently fear
rising prices as they do the plague, yet they must be aware
that any scheme of holding prices rigidly down in defiance

a

months is dominantly for further

be

from the Very sources most

have to do with

Shortage of business space, how¬
ever, in 5% of the cities of the
country/both in defense and non-

mal

will

revenue

dence of the American

in

An equili¬

areas.

supply and de¬
happy situation in

the

is

the

the

country

of the cities surveyed has the war,
it is noted, in draining away nor¬

There

Henderson

between

mand

ago

half

the

38% of defense

to the 39th semi-annual survey

than

of

cities

of

needs.

of much needed

made in any

45% of

the

in 56%

more

Real

war

a source

;.,/T ■' Y;'.■

the
essentials.
Shipping authorities
must grant priorities on the basis
but

Unheeded Opportunity

What

quarter to tap it; The field is, and has been
The Association further reports:
"Retail business space, affected right along, wide open for any member of Congress, or any
by the ban on sale of various group in Congress to prove himself or themselves statesmen
civilian goods, is somewhat in ex¬
of the first order of merit, and, we believe, to win the confi¬
cess of current demand in

(56%) of the
cities of the country, and the trend
is expected to continue, according

in

able

anything

those of the Administration—have

likely to breed that "inflation" that both Congress and Mr.,

emphatically

report.;/%'•;I

as

Congress somehow appears to be constitutionally
unable to understand is that
rarely if ever has opportunity
been so great for real
statesmanship in any of these or re¬
lated fields, and that, if the American people are half as
ready in these troublous times as we suspect they are to fol¬
low sound and vigorous
leadership, members of that body
who must face the electorate this autumn have
consistently
overlooked the surest way of winning those votes concern¬
ing which they appear so anxious. Neither the Treasury nor
any other office, organization or individual of influence has
presented a tax program, for example, which even ap¬
proaches the needs of the times. More men are employed in
this country than ever before in our
history, and they are
earning more than they ever did in their lives before. What

_

in

well

v*

sult will be

by

move

-■Y

"Usable industrial space is still

porting

as

Y;.

•

the very largest
of all defense

own

brought into being. The truth is that in most recent instances
thoughtful observers, if compelled to pass judgment, would
have been obliged to give a verdict in favor of the Adminis¬
tration as concerns these
agricultural issues—and that is
certainly no compliment to Congress.
T;/'YvYY-

country, and

defense

the

sins —its

tire, auto and gas
bans, near-in" urban residential
areas are beginning to experience
a
lift in real estate prices.
The
price job is observable in 78% of

Wheat, for example,-was

produced

in the year ahead that we will be
to

significant / fact

most

available in 74%

design of European agri¬

courage

Ships move
speeds in war

handling at ports
is more difficult.
Many merchant
ships have been diverted to trans¬
port duties, moving troops and
maintaining supply lines.
Every
change in war strategy means a
change in ship movements.

This is in many ways

areas.

the

controversies which

so
long deferred the regular
agricultural appropriations that stop-gap legislation became
necessary were certainly not of a sort to reflect credit upon
Congress. On the contrary, the chief objective of legislators
appeared and still appears to be currying favor with those
agriculturists, or their organization leaders, who would
wring a profit out of the war—precisely the type of action
so
heatedly condemned by these same' farmers and their
friends when taken by other
groups in the population. No¬
where at any time has
Congress shown any earnest disposi¬
tion to proceed constructively with the
problems which past

.

"The

Cargo

zones.

fense

to the nature of

as

that reconstruction.

shipping efficiency.
at

The

.

sounder worid agri¬
trade, and a better
in
Argentina,; and
the
United
living for the people of all the
States.
v;v• Y'Y;/ Y'YY /Y
producing countries."
/ "This
difficult shipping situa¬
tion is not-primarily caused by
more

Agricultural Controversies

freedom of

attempting to regulate prices. We can well un¬
derstand why any intelligent and conscientious Congress
would be reluctant / to do what - Mr
Henderson demands,
and we still cling to the hope, if nothing more, that sound
motives at some points at least have been responsible for
the difficulties that he has had and is having with Congress.
Nothing is to be gained, however, by shutting the eyes to

Russia.

available, but there

enough ships.

in

or

action in

consumer

ing steel,
rubber,
copper,
tin^
nickel, aluminum and other criti¬
that

the

he wants either in terms of funds

what

.

Speaking before the Second In¬

ter-American Conference of Agri¬

from

curse

at

the

irresistably attracted to it, and since Congress was wholly
Wanting in this respect, it naturally sank into the pit in
which it now mills about.
The United States Senate wasonce,

acording to Lord Bryce, the greatest deliberative body
It may be that before we again are able to

in the world.

develop sound leadership in public affairs we shall have to
something quite radical about Congress—even unto revo¬
lutionary changes in the ways in which members are

do

selected.

t

%?>>

>\A'\

'» W '

-h

TVM ,s ^w„tfPiJHu>uuar^»A«s?

HWnlii «L#*WW»VftiWTO43fc5^trfi' iMitYPttiifljritt*

ewtttottAwVH'w#f*

wjmwmwh*W»*6W J»K ^SK.* tart

«Wt.#tfir KJ1p' liSifitl^ »P'^T* 1 ftfqfWYW * WfiCV>1 juwVjfMKWHWin#

i

THE COMMERCIAL & FINANCIAL CHRONICLE

188

at the fourth .day-s

room

The State Of

sides stated to the Commission'

Institute reported a 1% de¬
cline in electric power production for the week ended July 4th,
compared with the previous Week, although output continued well
above comparable 1941 figures.
V
:i
Total distribution
for the week
was
3,424,188,000 kilowatt

holiday

The Edison Electric

week.

,

>

.

in this

proceed-,
Counsel* for both

ingS (July 11).

activity showed only a slight contraction during the

-Business

/"2.

on

July 10 that the great volume of

war

evidence to be introduced

war

was

has

ures

■

Carloadings for the week ended
July 4, were 753,855 cars of rev¬
enue freight.
This was a decrease
of 99,586 cars, or
11.7 %, com¬
pared with the preceding week,
an increase of 13,496 cars, or 1.8%
compared with a year ago, and a
decrease of 116,686 cars, or 18.3%
compared with 1940.

now

declined to

a

near-

all time low.

Failures

war

Thursday, July 16, 1942

be giyen a clear green

Signal;

ex¬

'

i';>'*

y

*

•'

Since "a

program of post¬
prosperity
will
encourage
production-now and aid in

"IL

The

winning

the

such a pro¬
President directed that the prose¬
gram should be encouraged in
cution be conducted by Attorney every way that does not interfere
General Francis Biddle' and Major With our victor# effort;
Espe¬
General Myron C. Cramer, the cially should, our esentiai freedom
Judge Advocate General; of the be safeguarded in this war to pre¬
serve

peace,

freedom

and democracy so

Royall.

during

-

C

o

1

o

that they may be our strength and
hope in' the future, b
v.

nel- Kenneth

a

of

rate

of capacity, against 97.7%

99.1%
last

to

week, the American Iron &

Steel

The

announced.

Institute

current, rate indicates an output of

that

cannot

into

fitted

be

effort will face liquida¬
tion over the next several months.
the

war

War
are

Production Board officials
expressing skepticism as to

the number of

that

concerns

can

issued

a

proclamation
enemies

certain

"denying

"5.

the

accessto

That

since

maintenance

of

democratic principles depends

against

issued to those
but with no final
disposition - of the charges. Sup-|

,

Government

made V actual pur-",
chases and cash settlements, put-,

ting

From fFear' Phobia

|

~

$434,established in the
week of May 7 of this year,
955,000,

was

This

r

week's

total

is

84% %

above the preceding week's total
and 34% above the corresponding

high week of 1941 which totaled

$298,718,000.
trade

Retail

improved

slightly

this week under the influence of

clearance promotions and more
favorable weather conditions, but
still lacked the drive of buying in

the earlier months of the year

the

weekly review of Dun & Bradstreet, Inc., reported.
Buying in
the

markets

wholesale

was

con¬

servative, in marked contrast to
last summer's rush to accumulate
inventories.

Retail trade this month may

.

show much of
the

a

not

dollar gain over

excise

month last year, observ¬
one

taxes. ;

The

Federal

Re¬

Board index of department
sales rose to 115% of the

serve

store

1923-25 average in

July and then
record of 134 in August.

Went to a
is

It

tioning

stated
on

that gasoline ra¬
the Eastern seaboard is

cutting down shopping trips. The
rigorous credit terms are re¬
ducing :hard
goods sales even
where supplies are still available.
Furthermore,
the
forthcoming
freezing of many charge accounts
will tend to restrict buying.
jnore

Surveys made by a number of
retail organizations indicate that
15 to 20% of all charge
likely to be frozen,
As consumers pay off these ac¬
as

many as

accounts

are

their purchases of other
goods will tend to be restricted,
counts,

observers state.

The trend of insolvencies which

has

AEF Is To Gel

■

: ">

including regular weapons, trans*?
clothing,
equipment
and

port,

much

of

the

food..

.;

•

>?:'

"It is desirable from the stand¬

point of equitable distribution of
war

burden and to

time

and

space

possible

save

shipping

to obtain' every¬
locally, officials

v.

•

;

War Risk Insurance

;
For Bank Funds Soon

War

;

risk

insurance

protecting

banks against losses in money and
securities as a result of air raids
other enemy action, or defense

or

of the United States
forces* will in all likeli¬
hood be made available *by the
War Damage Corporation within
the next month or two, according
operations
armed

the

to

Insurance

and

Protective

Committee of the American Bank-;
ers Association.
In a letter sent

by the committee to the Associa¬
tion's

membership, it is pointed
against loss or-

out that insurance

damage

Leiid-Lease

u.

Supplies

to

real

estate

on

which

banks hold mortgages* as well as

banking premises, is now avail¬
Colo.
"The polls show that •; The War Department announced able through the War
.Damage
high1 percentage of people do on July 5 that lend-lease opera¬ Corporation.
The letter'/ suggests
war production and the dramatic
not have enough solid faith; to¬ tions have been expanded .to per¬ that banks
interested in this type
shrinking in civilian goods pro¬
day in our way of life to face the mit cashless acquisition of serv¬ of war
damage insurance should
duction.
tomorrow of 'after the war' with ices, facilities, equipment and sup¬
consult
insurance
brokers
and
Wrangling continues over the
courage and confidence," said Mr. plies
by
United States
Army agents,, who will' prepare applica-:
price control effort.
The Senate
Fuller, who added that "it is this forces from the governments of tions for policies. Financial insti¬
clined

from

127

to

92.

This

re¬

veals both the sharp expansion in

action in restricting OPA control

food prices, if enacted into

over

law, will deal a serious blow to
the

entire

anti-inflationary

pro

informed observers state.
This action by the Senate follow¬
ing on the heels of House action
to withhold operating funds from
the OPA, indicates an apparent
attempt by Congress to wreck the
price control effort.
It is pointed out that food costs
gram,

ver,
a

fear of the future that is the last

foreign' countries in

remaining bottleneck of all-out
war
production."
He continued,
"It is this fear that after we have

are

licked

will

Germany

find

that

and

we

in

Japan
turn

we

have

located.

which

United Press,

they

Wash¬

ington, advices of July 6 said:

"New regulations set up

;

chinery to
scribed

as

carry

ma¬
out what is de¬

"lend-lease in reverse."

tutions

in

the

coastal

areas

and

other regions are requesting mort¬

to

apply

for

and carry
mortgaged
real
estate,
the
letter
states.
"Whether
mortgagees have the
right to compel mortgagors to pay
for such insurance depends upon
the wording and intent of the
mortgage
agreement,"
it
says.
gagors
WDC

insurance

on

of making purchases
a bigger than ever
depression.
It is fear that the from foreign firms and individuals
production line of today leads through regular market channels,
only to the bread line of tomor¬ Army representatives abroad will
row.
It is fear of the ghosts of deal directly with representatives Should
mortgagors
decline
to
idle men and idle plants and idle of foreign governments.
carry WDC policies, the committee
constitute about 30% of the wage
"These governments, it is ex¬
money.
points out in its letter, Rule 10
earner
family's budget.
Conse¬
"If we could banish this eco¬ pected, will undertake to supply of
the regulations of the War
quently a rise in food costs is re¬
nomic fear from the minds of the as much of the needs of the Amer¬
Damage Corporation provides
flected promptly in living costs.
American people, we would break ican forces as they can within the banks with an
A rise in living costs would of
opportunity to pro¬
our own amazing records in pro¬
limits of their ability as a matter tect their
mortgage interests. The
course, increase pressure by or¬
duction of the tools of victory, of reciprocity under Lend-Lease letter
says:
'.'Under
this
ganized labor for higher pay, thus
rule,
and we would have half of the arrangements.
banks and other financial institu¬
imperiling the present price struc¬
battle of the post-war era already
"Thus it was expected the new tions
may purchase blanket cov¬
ture, it is pointed out.
won.":
arrangement largely will elimi¬
Ayi/A'S^AAiS:-,- '
The restrictions on control of
erage; to protect their interests in
nate purchases by the Army di¬
When
describing
the
"hidden
real
estate
food prices are held to be more
mortgages,
chattel
rectly
from
private
suppliers mortgages held as collateral to
dangerous to the price control power in our democracy and free¬
■
doms" with which to combat the abroad.
consumer
credit
program than the withholding of
loans, and other
"Under
the
new
fear for the future, Mr. Fuller
regulations property
funds.
If
operating
constituting
collateral'
Congress
Such items as are obtained from for commercial loans."
said;
withholds
funds,
the
shortage
"It is power to accomplish mir¬ foreign governments will be in¬
presumably can be made up from
Although money and securities
acles.
There is hidden power in ventoried and eyaluated: Receiv¬
the President's, Emergency Fund
of banks are specifically excluded
freedom of opportunity in Amer¬ ing units will send in regular re¬
or
through the, use of volunteer
from
insurance
coverage
under
workers, it is asserted, however, ica, the freedom to experiment, ports to the Adjutant General of present
regulations of the War
invent and adventure the Army and to the International
that curtailment of the OPA's explore,
Damage Corporation, the Associa¬
that no
coddling under super- Division of the Services of Sup¬
power over processed foods would
tion's Insurance and
Protective
statehood
can
These transactions will be
begin to match. ply,
push prices up.
Committee stresses in its letter
There is hidden power in our free¬ consolidated six times yearly and
the likelihood that insurance of
dom of press which knits the pat¬ the
foreign
governments
con¬
these intangibles will be made
tern of national unity and pro¬ cerned will receive
appropriate
available by the WDC as soon as
against their lend-lease
gress through truthful informa¬ credits
conferences between representa¬
tion and common understanding accounts with this country,
tives of the Committee and the
"The new program is designed
that no Gestapo can marshal and
Corporation's officials are con¬
There to bring about a more equitable
President Roosevelt on July 2 no Goebbels can destroy.
cluded.
The letter adds: "Such
appointed a military commission is hidden power in freedom of en¬ distribution of the cost of war
protection has been the subject of
of seven generals to try eight al¬ terprise which constantly batters among -the
United Nations by
several
conferences
in
recent
leged Nazi saboteurs who were at the frontiers of new products, what is in effect a big-scale bar¬
months, and we believe it will be
new
methods
and
new
ter
system, and to save transpor¬
recently arrested after landing
opportuni¬
made available to interested
tation by supplying as many re¬
from submarines on the coasts of ties."

been licked by

"Instead

■

same

state. For

thing, sales dur¬
ing July of last year were gather¬
ing considerable momentum as
consumers began to spend heavily
in anticipation of shortages and
ers

that war the National Association of Man¬
production, in terms of points in ufacturers said on July 2 while
the total index, rose from 32 to 88,
addressing the National Education
whereas civilian production de¬
Association Convention at Den¬
economy is the estimate

covei*

"Most supplies, of course, have
been shipped from this country,

the United States," ex¬ upon the teaching of the necessity thing
that "the safety of the for preserving our freedoms, in¬ said."
United States demands that all dustry should offer all possible
enemies who have entered upon aid to educators in the further¬

Finds Public Suffers

second highest week of the year.

dollar exchange to
items;V'A' \ A' ! 7 -

up

such

plaining

.

The all-time record to date,

receipts

governments

■

-Engineering construction awards
for the week totaled $401,603,000;
the second highest weekly value
ever. reported.
It was also the

"

abroad from United Nations gov¬
ernments ' have
been
acquired

"

have taken key men for the ser¬
vices" the survey observes.

con¬

."Heretofore, supplies and serv-1
ices obtained for American troops

courts of

1,683,300 net tons for the week,
against 1,659,600 a week, ago and be brought into the war effort by the territory of the United States ance of their
program..
1,572,900 tons in the like 1941 the Smaller "War Plants Corpora¬ as part of an invasion of preda¬
"6. That future prosperity de¬
tion.
week.
Legislation now being con¬
."A
tory incursion or who have en¬ pends largely upon acceptance of
One * of
the
chief
problems sidered would help tide over some tered in order to commit sabo¬
the principle of unfettered, abund¬
The speed with which
which will confront the steel in- concerns.
tage, espionage or other hostile or ant, competitive production com¬
dustry in the next six months is1 this legislation is passed will have warlike
acts, should be promptly bined with aggressive selling and
that of obtaining sufficient skilled a good deal to do with the rate of
tried in accordance with the Law marketing and that a broader un¬
labor, "The Iron Age" asserted insolvencies later in the year, it of War."
' ;
;
V
■ derstanding of the fundamentals
in its mid-week survey.
Despite is believed.
of
our
economy
be developed.
The extent to which war pro¬
efforts taken so far by the Gov¬
That in fostering such an under¬
ernment to keep essential produce duction now dominates industrial
standing, every effort be made
tion Workers in their jobs, the activity is indicated by a Fed¬
to discourage false doctrines of
magazine reports, industry is be¬ eral Reserye Board estimate that
economic control and planning as
coming
more
concerned
each almost 50% of the board's in¬
well as legislative actions which
week over the drafting of some¬ dustrial production index is now
"The greatest and strongest na¬
would weaken the power of our
war production.
■,
times irreplaceable labor.
tion in all history", is suffering
freedoms."-V;;
A further sidelight on what has from "fear"
"While draft boards have ac¬
complexes, Walter D.
knowledged, the vital part played been happening to the nation's Fuller, Chairman of the Board of
by, various craftsmen in steel and
other
industries,
other
boards
have shown less discretion and

with

governments

.

,

cerns

still
some
of

cerned.

.

week

i n

a

are

' r

;

-

this

negotiation

foreign

ert

plies and services obtained from
private suppliers were commercial'
^ "3. '
That; since- the problems of transactions wherein the U,
t;
S,:
Besides Major General McCoyy the postawar.
period depend upon
and

Dowell

June, for ex¬
ample,. were at the rate of 46 out those named to the military com¬ the solution "
of social and eco¬
of eyery 10,000 concerns in busi¬
mission hre, Major - Gen. Walter nomic
problems, cooperative, ef¬
ness, according to Dun & Brad- S.
Grant, Major Gen. - Blanton fort of educators and industrialists
street, Inc. This compared with a
Winship, Major Gen. • Lorenzo D, and other groups be encouraged
rate of 45 out of every 10,000 reg¬
Gasser, Brig. Gen. Guy V. Henry, and continued. /v is:-''* J
v
istered during January, the low¬
"4. That the vital functions of
Brig. Gen. John T. Lewis, Brig.
est rate since the depression years.
Gert. John T. Kennedy /
V.7
education in the American way Of
Betterment in the scrap situa¬
Expectations. of a higher rate
It is believed that, the death life,
both during the war < and
tion and completion of furnace re¬ of insolvencies are based directly
penalty will be sought by the gov¬ thereafter make mandatory ade¬
on
the
iikelihood
that
a
large vol¬
pairs on some units' accounts for
ernment.,;" ■
S ". quate public financial support for
a rise of
1.4 points in steel pro¬ ume of small manufacturing con¬
Mr. Roosevelt on July 2 also educational institutions.
duction

c

of the program

under
the

understood;

was.

phases

,

pected to prolong the trial,

hours, compared with 3,457,024,000<$.
the previpus week and 2,903,727,-1 months, informed observers beArmy, and. that, counsel :for the
The rate, of business fail¬
QOO a year ago according to the lieve.
^ ^
defense
be-' Colonel
CassiusJM.
Institute.

i

r,

steadily downward in
months, is likely to be re¬

been

recent

versed

over

the

next




several

„

,

For Nazi Saboteurs

A

Long Island and Florida.
The

Military Commission,
headed by Major General Frank
R. McCoy, convened in Washing¬
ton on July 8 and began its pro¬
ceedings.
Although the trial is
secret members of the press were

permitted

to

inspect

the

court¬

that

six-point program "to the end
wewin
the
wars
against

Fascism and

depression" was sug¬

gested by Mr. Fuller.

He

quirements
sources.

as

close to

possible

from

forces are

serving.
"The new procedure is expected

called
to

simplify considerably book¬
cooperate:
keeping detail in connection with
"1. That everything which will foreign purchases and in many
contribute to an American victory instances speed up supplies.
upon

industry

and

education

to

banks."

The Committee's letter encloses

where American
a

copy

of

the

regulations, rules

and insurance rates established
by,
the

WDC, for guidance of Asso¬

ciation members who wish to
cure

war

risk protection.

se¬

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4090

Volume 156

President ^aysSab«Pariky

Grain /-Sale-'v;*.-;.;/::!

..duqtiye effort with

1

unnecessary.

^Tegislativfe shadkles.r 1: .* !*'•' j
It is»my ; earnest hope that

Revenue

Tonnage and Mileage Figures To
<
Supplant Garloadings Data As Traffic Gauge

•••

,

Is Vital to theWarTime Effort
L

President

Roosevelt

"

-Administration,
/'whether

agreement on the major
dispute • in order that
adequate agricultural proAuction may be achieved and
maintained. Freedom to utilize

real- issue

only

that, the

stating

involved

'

is-

/our Government stock of grain
in accord" with the principles!

1

.

over,

Senate : have^-

-and

for

some

•'*

the matter of permitting; the;

sale " 0f
wheat

125,000,000

.

at

:bloc 'has; been

Insisting

*

to produce

its feed

will- not i
prevail and that the action taken;
by the. Congress will reflect' the;
nation's; needs;
1
:
•
:.
i

•%.

ever-normal

granary

is

a1

necessary means to this end.
is no time to hamstring
supqessful principles.1 Only thus!

food for the \

: This

When this fact!

vve

can

group tactics

pressure

the

of

re-.

becomes clear-1 ain certain that:

y-

onvfull

use

"Z-

/

•'

wartime effort.-

-

J The ./House*, farm!

ing purposes.

;

sources

•

of

feed^-;

fot

of- corn

85 %

<

bushels

.

'

should be free to

time

?

insure

increased

pro-

*■

-

r;

>

'

*k

-

5

_

tactics w.iU nott;prevad"'Fben thej
real issue-become? -clear/r ,//Thef

farmers-

tilling :their own land; /:Seriate " provisions" represent' a
should be given -such support as!
miriimurii step In /utilizing our.

'

t

-

•.President,;;among <0tbe?;:things,! [ r is: necessary :to utilize * their re* i
•said:
■■,-V ;;r.; )^r:;
: sources fully.
They must be as-!
:
sisted to stay on the land and to:
"The [ approvalof the Senate
,

.

rT'fafrii
•

increased'

manpower: for

food production..

:

1

.

of

recommendations

the;

Farm

:

Security': Admimstratibn.^prpgram

:.

are, in my judgment,' essential to
.the.nation's ;war effort,
They are;

:,

.

:minimuriri"/

have

or

to get a

life's stake: in it.;

Tj^is, [ the; Seriate/ recommerida-1

-tforis [for iarm -security^^-adminis-l

1

U.S.Oonsullants^

tration loan /authorizations;

arid;
in / a i

-

;;.!///>: -:/v

appropriations- will do •
-r;/;j
Mr. Roosevelt gave his views in; v measure ■ that, however inade¬
letter to leaders of seven farm,!
quate, is infinitely better than
-labor and religious organizations! :/ the inadequate proposals that
are being mistakingly urged on
Iwho had written to him jointly, on
the Congress by certain selfish
June 20 in behalf of the wheat
:[/'/

To Aid Free French

;

a

*

and

proposal and in support of larger
funds for the Farm Security Ad:./■? ;/.;: ;

ministration.

He

The

'/-/ {

expressed confidence
•that,- should resistance. to these;
'.proposals persist, "the people will
■hold

those

to

responsible

were

sential

strict

fort.

James

to

sent

of the

on

the Farm

G. Patton,
National Farm¬

to

the

nation's

war

ef¬

minimum. Quite
properly, billions have been al¬
located for the financing of war
industry, large and small. Sim¬

\

ilar

They

are

balanced

aid

to

make full

ers'

Union;
Murray; - Lincoln,
use for war of our varied farm
Secretary of, the Ohio: i{ resources should not be denied.
[Farm Bureau Federation; William
You have! [asked me to take
Green, American Federation ;.of
/ this issue to the country. I think;
Labor; Philip Murtay,* Congress
%;• that;
[your/; (excellent letter hasof Industrial. Orgahizations; J. G.|
done this" in large measure.
I
Xuhrseii, ' Executive Secretary., of
^will /support' and,/emphasize: it.
[the ; Amerjcari : 'Railway:: Labor;
at every- Opportunity.
Should;
.jExecutiVes"s .Association;;vL;> G.
resistance - to/ these, proposals;
^Executive

,

;Ligutti; Executiver - Secretary; of;
[the National" Catholic; Rula L;Life|
;As'sociationvandBensonY.Lahdis,!
the

"of

Federal

'

Churches.

Co

u nc

'/*;;**/'

,

i l

-

of

fortunes

war

clearly than

;

called for

|

speedy settlement of the
dispute when- he

Congressibrial

When the declared

In these dark ..days

more

.persist;jr.am/con^iderit that: thei

"-people Will hold ;thpse respon/ i sible to, s trictacCQunt.
;
.of
% The President on July 9 again

Mr. Roosevelt's letter follows:

„

/

ington announced
Admiral

Harold

mander ' of

Forces

in Wash¬

July 9 that
Stark, Com¬

on

R.

United

States

Naval

in Europe,

and Brig.-Gen.
Staff of
in Eu¬
rope, have been designated as this
government's representatives to
Charles L/ Bolte, Chief of
the United States Army

-

-the I -'matters; on:

that

tional
all

Committee

matters

duct of the
ther

in

relating

of. the

to/ the

the

United

Mr;
as

.

W

'

Eastman

pointed-out, while
loadings declined 17.8%

lrc-1

result

a

of

Order No. 1

ODT's

General

'

and of the railroads'

efforts

prior and subsequent
the * May 1 effective date.
The .order .set

to

six-ton weight
limit per car for less-rthan-carloqd
freight, rind provided for a stepup to. an eight-ton minimum, ef*
a

fective July 1. . A ten-ton mini¬
mum will be- established
Sept. 1.

ures

efficient

While the number of

compiled

months

by

the

Interstate
an

of

Indications

1942.

are

that this increase is being main¬
nouncement ; of the State Depart-: tained during the second quarter;
meht said: that this further col¬
The Interstate Commerce Com¬
laboration ..Ts/ .Consistent
with mission figures show the major
President / Rooseypit's
statement railroads mov^d. 576,211,670 reve¬
.

On; at

-

v

v.

least

:

.

60%

;.v

,

of

•;-/■. ' *

the

121

major railroads—the Glass I sys¬
tems—approximately 20% of all

•

-

'

merchandise carloads had already
reached the ten-ton limit, and al¬
most 50% had attained the

-

ton

eightloading by the end of May.

effort

with

legisla¬
Theseveri signatures on this,
tive shackles." '
/ / * >•
joint appeal spell a new under; The
text, of President Roose¬
standing and a new: unity, born,
velt's statement, of J uly 9 follows ;f
of War; among farmers,- all three'
I have just signed H. R. 7349;
national
labor
organizations,;
under which the Department of
and two great religious groups
Agriculture appropriations are;
of men and women of good-will.
:>

:
•

control."

:
*

continued for the month of

Our fighting men need this kind
of unity in support of them. As

,

\
-

Commander

their

,

-r

'

in

Chief, I
■' >•">; ' y,'V'//
?

welcome:it. \ v>
The authorization to sell
f '

some

bf the' government's1 holdings of

grain

i

:

for; feeding" .purposes

"at

85% of the' parity price for corn
Is essential* if the;armed servifces'

r

July.;

I am glad. that this bill was
finally approved by both Houses

the various
as a

country

Mr. Pace told of the

development
termed

of the

zones

whole."

of

now

he

what

"shock

State Tax On Land
Legislation providing for taxa*
by the States and their po¬

tion

litical sub-divisions of certain real

acquired for military
by the United States
since January, 1942, was passed
by the Senate on July 2 and sent

property

purposes

:

to the House.

*

The real property acquired

for

purposes includes
taken/over for fortifications,
coast, defenses,
military camps,
cantonments,
proving
grounds,
training areas, bomb testing areas,

general miltary
that

heretofore

Discussing/ the need of
i

ized teamwork

to

meet

organ¬

post-war

Plants to War Alcohol complications, Anderson
been

ordered

distilleries
to

convert

have
their

plants by Nov. [1 to the exclusive
production of industrial, alcohol,
heeded

.for

the

from

set

by

Congress

"not

ment accorded the District of Co¬

lumbia by the Home Owners' Loan

Corporation, the Housing Admin¬
and

ernment

Distillers Must Convert
Nation's

taxes

only during the last war but more
recently with respect to the treat¬

State

The

collected

the private owners." He explained
that the bill follows the precedent

Reconstruction

the

,

unnecessary

.

■i:

industrial information to the ben¬
efit not of Realtors alone but of

Corporation."
Senator
McNary stated that "the burden,
would be thrown upon the Gov¬

•

<

,

Finance

.

■■u

.1

n a
Kentucky,
Tennessee, Louisiana, and Missis¬
sippi/suggested that there be ere*
ated an informal body that could1
"bring about the interchange of

istration

-

- [■■■■

Wisconsin, I rid la

heretofore

De-. of 30.2%.

1 before;

>/; •• 4-vv:

*

ii

i

emending lend- nue tons of all classes of freight
miltary and naval in the- quarter ended March 31,
forces, pf. Free * France and with 1942, as compared with 478,521,the "policy of- the United States: 196 moved in the first
quarter and the [manufacture of munitions.
Government in aiding all peoples of 1941, or a gain of 20.4%. Reve¬
Senator McNary of Oregon, the
who: .are resisting Axis aggression nue Ion-miles rose- from 101,375,leader, / said
the bill
to maintain .and uphold their own 401,000 in the first quarter of 1941 minority
''would merely relieve the dis¬
to
liberty,":
:.v/.'y i/-;:;!-..
/'■
132,028,605,000 in the: compa¬ tressed counties and States Which
*.A ^memorandum; to: Gen. de: rable period of 1942—an increase
of last-November,

lease aid to the

rpached embody the. issue of more partment, made it clear that this
f the dependence of our fighting: abundant production Of the things step does not amount to diplo-:
men upon adequate supplies, it;
matic recognition of the Commit¬
we need."
/•
Is heartening to receive the let-,
tee as the Government: of France.
In signing the "stop-gap" bill
ter'pf June 20 signed by you
On this point the memorandum
appropriating
funds
for
the
De?
and six other leaders of farm,
said that "in pursuing the com-!
partmerit for July, the President mon
labor, and religious organiza-,
war
objective the Govern¬
issued a statement saying that
tions asking help in giving all
ment of
the United States will
"pur
war /needs do
not
permit
:
our farmers the equipment with
continue to deal with the local
which to.produce enough food compromise or partisan / discord" Free French officials in their re¬
and that "we cannot afford to
i;
for victory and a peace that wili
spective territories where they are
cripple any part of our productive in effective
'•
endure.

>

1

_

_

cars

increase of 16.9% in 1-c-l tonnage
originated during the first three

operation more effective in the
prosecution of the war." The an¬

_

loading by the rail¬

Commerce Commission showed

French, headed by Gen.
Gaulle, was taken to make "co¬

_

The 1942 decrease

loaded dropped considerably, fig¬

and

T\

troops" in j local
bodies located in Mid-Western and
Mr. Eastman pointed but specifi¬
Mid-Southern communities1 which
cally that railway analysts and will
provide a trained force ready
observers should, as a result of
to handle post-war complications
the merchandise car savings, care¬
resulting from dislocations of pop[*
fully scrutinize- the weekly : re¬
Ulatrpn and industry; during the
ports arid distinguish between car-1
emergency war period.
Indicat*
load traffic
loadings, and total
ing that such problems will havb
carloadings; which include the cars both
important
industrial
anri
loaded with merchandise.
Until
deep social implications, he ana¬
a full year after May 1, he
said,
lyzed from the point of view of
total carloading figure compari¬
permanent usefulness the agencies
sons will be distorted.
already at work on post-war plan¬
During the 25 weeks ending
The convention was called
June 20, less-than-carload freight ning.
used 3,194,811 cars, as compared by the Society of Industrial Real¬
tors.- '
with
3,885,072 in the first 25

more

common

a

a a

roads.

demonstrate: which agreement has not yet been Gaulle,- released by the State
eyer

a

690,261 cars, Mr. Eastman said,
is due entirely to heavier and

on

Eastman, Director
July 1, Total carloadings
gain of only 6.7% over the

on

period last year.
However.^❖
'
—1
1^
freight with the ex- System, who is a member of the
A-P
Innr*' 4-V»
v»l aa/4
ception - of less-thart-carload in
Illinois Development Council and.
creased by an average of 13%, consultant to like state bodies in

of

the Free
de

in

all classes of

fur¬

States

cars

same

con¬

This action,

war.

coordinating

efforts

London

Transportation, announced

weeks of 1941.

Administration
pro¬
are, in my judgment,. es-i consult with the Free French Na¬

gram

Copies of the President's letter

.President

of the Senate

-/Security

'account."
.

approval

recommendations

also

.,-[!

power-hungry groups.

The Statp Department

of Defense

for the first 25- weeks of 1942 showed

the

duc'tion bf live stock and dairy

pTo'dupts so essential to pur war'
On* the; [question, of
/needs. /v ' ■ '/■:
' ..•/"
the* Senate Voted j
//My .'rePbmmeridatioris for the1
$222,800,000. but the/House/.only;
,v..<po meet the nation's war foodi
5- Farm
Security . Administration
.voted $127,000,000/
goals, we must haVe the full-timeI
Will
>*/ enable . "underemployed'
-.
.The President assailed:"certain j r; employment of all farmers; big:
;/ farmers to* produce; more so that:
:
selfish1 and powers-hungry groups''
and little. ; T agree with your! ^ their
:pV6duction'may be avail-'
and declared that;"pressure-group
3-'stateinent'-ffa^t;they;'-as-working| •' able 'for Purwar. needs.
The

.parity price:
;funds,

-FSA

loading and longer haul of railroad

the last few months, revenue tonnage and revenue ton mileage fig¬
ures now provide a more accurate measurement of the volume of
railroad freight traffic than carloadings, Josph B.

.

..

deadlocked

Because of heavier

in

more

the

House

The

been

an-

item's

government? should be free< to-aise its feed resources;
produce food for the wartime effort;" '
/
•
; ^

-to
'

by

/.the [Congress; will/move quickly
.' to

July 3 entered the Congressional con-;
■troversy relative to the Agriculture Department appropriation bill/
^concerning * Sub-parity grain sales and funds .for the Farm Credit;
on

189

manufacture

of;

Pace, of
Chicago, at the closing session of
the

National

Conference

On

In¬

dustrial Real Estate in Pittsburgh
on
.

June; 26-said:

"What

are

we

to

meet

taxes,

counties

and

the county

as

so

and

to enable the

States

to

continue

the normal administration of their
affairs."

- ■

•

:•

.

■

..*•>;

The bill authorizes the taxation
of such property at

the rate previ¬
ously charged against it.
\
;

-:/;
going to do after

the war-to fill the industrial gap
in
those- areas where raw ma¬

U.S., Brazil Extend

Congress without the1
munitions and synthetic rubber.
:,[/
Stabilization Pact
-prohibition against; the sale of
;;An /agreement
extending, .for,
y Gbyernriient-held stocks of feed; .Matthew; J, MacNamara,. special! terials have been used in tre¬
assistant! director of: the materials! mendous ■
grains, butregret that 'the
quantities - during the five years the monetary stabiliza^
[//operations of-a: department/ so .division of/ the. War. Production war, and where they may be used tion pact between the United
Board, ph June 16r.told, a- meeting only in limited quantities after States and Brazil was signed in
/essential to pur/ -domestic and!
war needs should be left in
such; „6f representatives; of the liq uor; the war? What are- we going to Washington on July 6 by Secre¬
a: predicament- at • this critical' producing interests- at Louisville,1 do ribout the workers who have tary of the Treasury Morgenthau
Minister. Fernando
Lobo,
period; in the nation's history; • i Ky,,- that -their quota, would be migrated in large quantities from and
The Department' of /Agricril-' upward of 200,000,000; gallons an- home arid may return after the Charge D'Affairs of Brazil.
The
i:ture is charged - with the^re- .nually*%-It is estimated that their war? Teamwork of the *'.ght kind agreement
extends to .July 15,
V- -sponsibity -of- giving leadership -total present output of; all spirits by
national
industries, Federal 1947,: the stabilization pact entered
to-the greatest agricultural pfo^i is .about 600,000 gallons monthly* agencies, state agencies and trade, into five years ago. ■■£
/of /the

'

*

•

;

*

and the civilian
to

t

population are
be assured adequate: supplies

of 'pork,
and eggs

beef; milky chicken,
aty prices /that * will
neither break through the ceil¬
ing nor require1 excessive subsidies. - * * The ' government: Will
continue to assure fain prices to
farmers -for their products; Cer-

:

;

:
-

<

'

tainly; the"government; orgam: ized
for total war;3 must > have
the authority to deploy its. rev
sources
promptly And in suf¬
ficient volume to .speed vic^
tory;
We have surpluses 'of

r

:
.*

r
t
*

►

grains; we have, oncoming. string
gencies and shortages in.certain
meats, fats and' oils.
i
: The only > real issue- involved
here is whether the government

-

-

-

-

-duction
*

•

'

:

.

f,;

jt

effort.. the

country- has1

Each day the .part*
that food must play in- the win-'
ever

known.

-

ning of - the- war, becomes- more
apparent. • The matters on which
agreement has not yet been
reached, embodyr the- issue of
more
abundant production of
the things- we. need. • Our war.

,.

.

....

needs

inise

.

:

-

issue.

:

/

do.. not'

or;

permit compro-z
partisan discord on that
.We

cripple ' any

.

cannot-»afford

part

of

our

to;

pro-

Mr. MacNamara said

ana

machinery

equipment for the conversion!

had been located:and its

use. au-*

thorized.

Payment for the shift
liquor to industrial alcohol
made
by the Defense
Plants Corp,, a subsidiary of the

fronci

will. be
,

Reconstruction: Finance Corp., aci
cording to the Associated PressPrevious reference: to plans for

converting the liquor industry
made
page

in /these:, columns

2213.

-

,

June

was

lli

civic and business

organizations of
together in

-

Under the extended agreement,

according to the
will make dol¬
and other- problems of post-war lar exchange available -to Brazil
industrial transition.
Preparation to stabilize the Brazilian < milreis^
various kinds working

parallel

lines

-

could

solve

these

the United States,

Associated Press,

already

United

States

begun.
Good coordination and
good planning will be needed to
bridge the transition whether or
not industrial activity continues at

change

up

for

such

teamwork

has

*




»•

\

'

*:

dollar, rate
a

total

of

ex¬

amount of

$100,000,000 and will sell gold to
Brazil-

the

as

Govern^

Brazilian

ment may request up

to

a

total of

$100,000.009.: In the original agree¬
high level.
"
;
■'
Mr,
Pace,
General
industrial ment th*se two amounts were
agent of the Illinois Central R.R,; $60,000,000. ;
a

*

-.,c-

to

'

1'
.

'

K

I

ill-"

I

190

THE COMMERCIAL & FINANCIAL
CHRONICLE

Non-Agricultural Employment In Mid-May
At New All-Time High, Labor Dept. Reports
Total

from

civil

non-agricultural

employment increased by 327,000
to mid-May, Secretary of Labor Frances Perkins
June 30.
"The May total was 41,201,000, a new all-time
said.
"It exceeded the previous peak (41,073,000 in

mid-April

reported

on

high," she
December, 1941) by 128,000 and the level of May 1941 by 2,299,000."
Secretary Perkins further reported:
"A

substantial

portion

of

the^

increase from
in
a

ing plants, and plants manufac¬
turing
beverages,
butter,
ice
cream, and beet sugar.
The can¬
ing
and
preserving
industry

April to May was
manufacturing industries where
contra-seasonal gain of 76,000

workers

reflected

pansion in the
dustries.
showed
level

continued

ex¬

showed

production in?

war

Contract

construction

2.1%.

gain of 92,000, the May
exceeding
all
previous
a

•months since the fall of 1929.
creased

employment

on

and

govern¬

•

finance, service, and miscellaneous
.industries.
Employment in the
group of mining industries showed
a small gain, while wholesale and

the

com¬

ernment restrictions affecting the
sale of such items as
automobiles,
tires, electrical appliances, gaso¬
line, lumber and plumbing and
heating equipment accounted
the

decrease

in

various

for

lines

of

trade.

"The
principal
factor in the
expansion of nearly 2,300,000 in
non-agricultural employment over

highest

levels

on

manufacturing' over the year
nearly four times as large as
employment expansion due
largely
to
increased
working

was

Gov¬

the

'all

utilities

hours,, overtime

premiums,

and

wage-rate increases.

"Wage-rate increases averaging
7.9% and affecting 207,000 factory
wage

earners

reported

were

by

691 plants out of a

reporting sam¬
ple of approximately 30,000 plants
With about 6,000,000 workers, The
largest number of workers af¬
fected

in

were

the

cotton

goods,
men's clothing, machine tools, air¬
craft, boot and shoe, and paper
and
pulp industries.
Scattered
increases

wage-rate

were

re¬

the year interval was the increase

ported among the nonmanufactur-

of

ing industries surveyed, the pub¬
lic utilities group reporting the
largest
numbers
of
workers

1,135,000 in manufacturing in¬
dustries.
Federal, State and local
government services, contract

con¬

struction, and transportation and
public utilities also showed large
gains, while a smaller increase
reported in the finance, ser¬
vice and miscellaneous group.
In
was

the

remaining two major groups,
trade and mining, there were de¬
clines of 80,000 and 7,000 respec¬

tively,

A number of lines of both

wholesale

and

retail

trade

have

been seriously affected by the war

particularly automotive,
sharp curtailment in oil
drilling accounts primarily

"Employment in anthracite min¬

while

ported

less-than-seasonal de¬
cline of 0.3%, These changes were
a

coupled with pay-roll increases of
14.5% and 3.4% respectively, re¬

flecting
increased
production.
Quarries and non-metallic mines
expanded
about

half

well

crease

of

While

the

crease

of

the

group

decrease

in the mining
the year interval.
rise of 0.7%
in factory

over

"The

employment between April and
;May was in contrast to a season¬
ally expected decline of 0.5%,
while

the

corresponding increase
.in weekly pay rolls (3.2% or
$11,~
300,000) compared with a typical
rise of only 0.2% or about $700,000
for this time of year.

The durable

goods group of manufacturing in¬
dustries, in which war production
is chiefly concentrated, reported

in¬

of 1.0% from April to May,
bituminous coal mines re¬

crease

program
while the

for

contra-seasonal

a

raised

their

forces

the

average

the

the

gains

shown

were

the

over

by

2.8%,
May in¬

preceding 13

years.

small

employment

0.1%

in

metal

(Michigan and
Delaware). The largest percentage

increases

occurred

Arkansas,

District

in

Oregon,
upon information received from 432 plants of 157
com¬
Columbia,
panies, which, on the basis of labor employed make up 72% of the
Alabama, Washington, and Utah.
"All
industry,
and
covers
concerns^
Federally-financed
con¬
of

——

which
struction required
1,564,000 work-!

index

to

82.0%

of

"The
continuing
demand
public transportation facilities
the

in¬

by

eight

.

of

workers

em¬

railways

and

.

street

of

materials

and

parts

"Employment

decline

72%

during May: 7,400 inside

persons

the District of Columbia
300 outside.
Over the

and

inside

the

was

District

a

has increased 45% and outside the
District 62%.
During May total

employment in the Federal

execu¬

tive service
rolls

was 2,091,000 and
$331,645,000.

were

WPA

continued

personnel

cut

personnel

80,700

the

on

NYA

CCC

uted among the various
groups as

follows:

enrollees, 11,400; nurses;
educational advisors, 81; and
supervisory and technical, 834. All
work-relief programs
have
dropped a total of 1,356,000 names

OF

;

manu¬

goods

war

increased

from

$54,000,000

to

War

shipments

increased

tinued

to

ductions

cause

in

non-durable

employment

many

durable

industries.

re¬

and

Among

them

were cast-iron
pipe, cutlery,
hardware, plumbers' supplies,
wirework, steam and hot-water

heating apparatus and steam fit¬
tings, tin cans and other tinwear,
radios, typewriters, jewelry, light¬
ing equipment, carpets and rugs
.

and rubber goods. Gains in indus¬
tries
geared to the war

effort,

however,

,

than offset these
declines.
For the first time since
last November automobile
plants
more

reported an employment increase
(5.6% or 18,900 workers) indicat¬
ing a stepping-up of war produc¬
tion

in

converted

strategic

war

plants.

Other

industries continued

to show

sharp employment gains,
notably shipbuilding, aircraft, en¬
gines, machine tools, machine-tool
accessories, electrical machinery,
foundries and machine

shops,

am¬

munition, and firearms.
"Among the non-durable-goods
industries, seasonal increases
shown

by

woolen

and

were

worsted

goods mills, bakeries, meat pack-




drop

phone

of

and

creased

1.0%

while

87%.

64%,

$113,000,000 to $186,000,000.

telegraph

their

•

offices

forces

in-,

slightly,'

Among the service industries, in¬
of

creases

seasonal

a

character
(3.2%),

shown by laundries

were

.

TOTAL

dyeing

and
cleaning
establish¬
ments
(5.4%),
hotels
(0.4%).
Brokerage and insurance firms re¬
ported decreases of 3.9% and 0.8%

respectively.

j

'

employment

was

than usual for May due

greater

largely to

contra-seasonal decreases in
lines

ing

as war

government

fected

the

many

conditions and result¬

sale

restrictions
of

such

items

af¬
as

automobiles, tires, petroleum and
gasoline, electrical appliances, ra¬
dios, plumbing and heating equip¬
ment, furniture and house furnish¬
ings, and paper products.
These
factors also affected similar lines
of

retail

retail

and

trade.
Employment in
food, general merchandise,

fuel

however,

and

ice

establishments,

increased

over

the

month interval and the net
change
for retail trade as a
whole was a
decrease of only 0.1%.

build

up

addition

to

great

a

sound basis.

war

When that

of buying power is

in

reserve,

financing the

on

reserve

released, it will

stimulate our peacetime economy.
We've had spending programs be¬

fore/but

never in the history of
country has there been buy¬
ing power distributed through all
any

classes
will

be

of

citizens

after

all do

this

part

our

"Private

such

are

there

as

is

war

over—if

now.

enterprise
is
going
period of severe read¬

Many major industries
entirely converted to

being
others

being forced to

are

re¬

painful
The hope of these indusitries and of all private enterprise
is the buying, power that can be
built up through a program of na¬
tional saving.
>.
u
.

"I think that if this full
is

picture

given to the American people,

they will have

understand?

a new

kind

tin Thousands]

•'

:<

...

v

Chrysler,

Stude-

,

May,

non-agricultural

employment-

non-agricultural

•

of peace which will make
wqrth-while the sacrifices we are

going to be called
while

the

endure

upon to

lasts."

war

(pre- April,

41/201

40,874

,.

,

.

35,058

34,731

13,021

12,945

862

861

2,020

1,928

construction

.Transportation

and

service

public

and

May,-'

to May,

1942

1941

1942

utilities

.

miscellaneous!—.

.

i

,

.

+ 327

38,902

+ 327

+ 2,299

32,759

4-2,299

+

76

11,886

+ 1,135

4-

1

869

+

92

1,782

+

238

+

191

+/ 40

3,185

6

6,753

—.

80

38

4,235

+

69

4,049

+

746

3,383

3,343

6,673

6,679

' 4,304

4,266

+

4,795

4,709

+

86

—

work in the United States in

non-

addition
at

to

least

being

10%

come

in

War

must

be

convinced

urged

to

series

described

in
establishments"

excludes

proprietors

firm

and

self-employed
and

as

nonagricultural
,

also

members,

..casual
in domestic

persons,
persons

volume

of

Bonds,

their

Americans

that

the

on

savings

out

-

of

income depends the pres¬
ent and future financial safety of
current

the country, John H. Fahey, Fed¬
eral Home Loan Bank Commis¬

sioner, declared

on

than

more

dictated
at

eight

in

which

"Herald

years,

time

the

Tribune"

Washington that
would

in-

were

advices

press

July 2,

New

York

reported

from

as a conservation

the Treas¬

measure

release

soon

some $4,000,000,000 of these notes, in de¬
ranging from $10 to
$1,000. The account added in part:

nominations

"Among the
tion

reasons

Fine

were:

silk

for the
is

ac¬

used

in

of their in¬ manufacturing paper,,formoney;

,

The

"Employees

for
the
re-issuance of
Federal Reserve gold notes, which
have been out of circulation for

and economy

Safety
Depends On Savings

agricultural industries, excluding,
invest
military and naval personnel, per¬

employed on'WPA or NYA,
projects, and enrollees in CCC

Plans

ury

In

sons

Reissue Gold Notes

1941

to May,

1942

Treasury Plans To

May,

April-

establish

Manufacturing
Mining ;
'

July 4.

Mr,

silk

also

is

urgently

needed

for

parachutes; good paper is scarce,
and,; therefore, the Treasury will
all

save

around

by. reissuing the

gold notes."

"...
*
From United Press advices from

Washington
following:

July

3

we

take

the

:

\

//

Fahey added that "if people will r "When gold paper money makes
its appearance
shortly it will not
ployees in nonagricultural estab¬ only realize that money saved mean the United States has
gone
lishments," are shown separately during the war means the chance back on the gold standard. It
will
for each of seven major industry to make a down-payment which mean
that the Treasury is
saving
groups.
Data for the manufactur¬ ultimately assures the ownership $2,000,000 on the cost of
printing
ing and trade groups have been of a home a few years from now, new currency.
;. /
revised to include adjustments t6 or that it means reaching some
"Treasury officials revealed last
other cherished goal, they will en¬
preliminary 1939 Census data.
night they were considering re¬
The figures represent the num¬ list in the Government's program
leasing about $4,200,000,000 in the
ber of persons working at any for two constructive purposes." In
gold notes in order to save 240
time
during
the
week
tons of
ending part Mr. Fahey further said:
service.

"The drop of 1.7%. in wholesale
trade

to

a

Motors, ^Ford,

limincfry)
in

workers

V

people

NON-AGRICULTURAL EMPLOYMENT

ments

camps.

1

:

ing of the constructive, steps the
Government is taking to assure a

Graham-Paige, which operate 182

Trade

tele¬

"

say:

"The Government wants

These companies included General

1942

Finance,

to

on

$102,000,000.

Change

Contract

.

degree.

duplications.

"In the eight automobile

Change

Employees

to

plants."

•."

civil

over the post-war
period
point to some of the basic
objectives of financing the war
through current income. He went

concern

is

strict their operations to a

no

the

to offset expressions of

Value

duplications.

some

in¬

or

war;

therefore,

will

any

<t-

ESTIMATES

Total

of

would

.shipments,

at

cause

which

out

tal

to¬

baker, Hudson, Packard, Nash and

from the rolls in the past
year." •
The Labor Department further

to

on

from

13;

reported:

truck

or

that

wages."
declared that

Fahey

best way

through a
justment.

manufacturers

.costs

value

salaries

mobile

on

distri-

was

.

ment

Mr.

certain

companies and the figures

facturing companies, value added

24,000 (10% for the 2
programs).
The 12,300 personnel
the

added

$2,250,000,000

U. S. Financial

con¬

creased

"Some
shipments from
parts
companies may have gone to auto¬

.

program

for

value

of

an

$4,000,-

year.

added includes

student work program waseut 21,400 and on the out-of-school work

decline

the

rate

at

was

than

more

while
the

(at

during May. include

was

industry,

is

living
the

we

pay

"Contraction of the work-relief
programs

the

000,000,

past year

employment

of

annual rate of

71,-

buses, this being the fourth con-,
Federal/ State and local government—.
secutive monthly gain, and with
The
estimates
of
"total
civil^
but one exception the largest
per-;
goods group showed a decrease of
employment,"
centage increase in any month non-agricultural
0.6% (27,300).
given on the first line of the above
during the last 14 years. Electric
Shortages of materials and lay¬ light and power companies re¬ table, represent the dotal number
of
persons
offs
in
engaged
in
gainful
plants converting their ported a contra-seasonal employ¬
production

slash

on
a

4

feel

should realize fully what

that .it

higher

sup¬

plied.
These 432 plants had a
public housing
total value added on war work in
during
the month ending
May 15 of 8,900; April of $188,000,000, compared
with $123,000,000 in
and over the past
February."
year of 66,300.
"Thus the April shipments of
"Employment in the Federal
war
goods
from
these
executive service increased 78,700
companies,
-

projects showed

for
was

cost

I

under?

stand

from
$145,000,000
to
constituting 91% of the total num-1 declined
ber
'
employed
on
Federally-fi-' $72,000,000.
"Value added of war products
anced
construction.
Expansion
increased 53%.
Value added rep¬
during
May
was
concentrated
mainly on the construction of resents the difference between the
ships,
nonresidential ' buildings, money value of shipments and the
;

time

same

unnecessary,
loose spending
this time means.
We must

housing, employed 196,000 addi¬ shipments increased from $239,tional workers during
May, reach-1 000,000 in February to $349,000,000
ing a total of 1,418,000 persons and in April, while non-war shipments

;

self-

'

the

everyone

including

employment increase of 1.7%
,(102,100) while the non-durable

war

"At

-

an

facilities to

temporary

denial.

hired directly by the Federal
"These
Government numbered 239,000* or
companies
reported
15% of the total.
/
; April shipments of $420,000,000, of
which 83% were war goods. War
"War construction, not

and streets and roads.

»

—

will find great satisfaction in the
results of their

part:

ers

the

by the increase of 1.6%

number

ployed

include

large auto¬
mobile manufacturers, nine truck
ers during the month
ending Mayf
140
15, constituting an increase over companies and
parts com¬
April of 193,000 or 14%. Pay rolls/ panies.
The survey by the War Produc¬
amounting
to
$281,549,000, in-:
tion
Board
further
creased 18%.
reports
in
Construction work-,

mines

producing firms reported
0.4%
fewer production employees than
in the preceding month.

n

Reporting on the progress of the conversion of the automotive
industry to war work, the War Production Board on
July ^ announced
that war shipments by this
industry were 46% greater in April than
in February.
The report, compiled by WPB's Automotive
Branch,
was based

year

in all but 2 States

1929
average,
the highest May;
tevel since 1930, crude petroleum

reflected

April Shipments of War Goods by?Automotive
Industry 46% Greater Than In February

Vermont, Ar¬
kansas, Florida, and South Dakota;
showing slight decreases. Sizable

(9%),

affected.

ing showed

employment

;

shewed increases over the month'
in all but 4
States,

.

record, the gains since May of last
year being 9.7 and 33.7%, respec¬
tively.
The pay-roll increase in

.group, and 38,000 in the group of

retail trade establishments
bined reported a slight loss.

at

were

government employment
increased by 86,000 and there were
increases of 40,000 in the trans¬

public

millinery.

May indexes of factory
employment (137.0) and pay rolls
(192.6), based on 1923-25 as 100,

interval, Federal, State

and

re¬

manu¬

"The

and local

portation

were

establishments

oil, cake, and meal; confectionery;

small decrease over

a

by

gain of

facturing fertilizers; cottonseed-

In¬

projects accounted for this
substantial gain; private construc¬
tion showed

Seasonal declines

ported

ment

the month

contra-seasonal

a

"Nonagricultural

Thursday, July 16, 1942

The

"Em¬

estimates for

"The first purpose is, of course,

nearest the middle of each month.

The

totals

for

the

United

States

service

to

have been adjusted to conform to
the figures shown by the 1930

everyone.

Census

should

of

Occupations

or

the

number of nonagricultural "gain¬
workers"
less
the
number

ful

shown
for

one

to

have

week

of the Census.

or

been
more

unemployed
at the time

in

which
be

which will

our

country

in

victory is
The second

our

to

•

make

mean

trial activity,

extra

a

viljal to
purpose

am

sure

and

large

ink

quantities

which

would call for.

"They

•

emphasized,

of

bills

new

>

•

■

however,

savings that while the
notes, which have

continued indus¬

If people will only stick to

I

nylon

been

on

jobs for workers and issued,

general prosperity after the

objectives,

war

1,200,000 man-hours

paper,
labor and

of

that

war.

hand since
1934, but never
on
their face: 'Re¬

bear
deemable in

these the

United

gold
States

on

demand

Treasury

.

at
.

.'

they they will be paid only in silver."

THE COMMERCIAL & FINANCIAL

Number 4090

156

Volume

pared with the

Kclds Federal Price Control No Bar To Suit

prices under the New York State Fair Trade Law despite
istence of the Federal regulations fixing price ceilings was
down by New York Supreme Court Justice Eder on July 7,
the decision is believed to be the

Federal

regulations

price

first in the country on the relation

to*>———-

Justice Eder, it is said, over¬
contention

the

ruled

the de¬
suit that
the
Federal
of

fendant in an injunction

of

enactment

the

Price Control Act of
wholly impotent"
State law, which forbids the

Emergency
1942

the

"rendered

sale

retail

at

below

minimum

a

price fixed in contracts be¬
manufacturer and retailer.

resale
tween

Continuing the "Herald Tribune"
further reported the findings of
Justice Eder:
'"Justice Eder said that in order

regulation

Federal

the

cite

to

ldw

retailer

a

able

be

must

to

inability to obey the
law
was
occasioned
and

show

that

State

"compliance with the
the paramount au¬

necessitated
Federal law

thority

as

obedience

which

to

surrendered.

-

,

.

was

unfair

competition.
charge against Mr. Siegel
was
that the was selling below
minimum resale prices the prod¬
*

"The

; "Although he upheld the right
of the plaintiffs to bring suit un¬
der the State law in spite of Fed¬
eral

regulations, Justice Eder de¬
nied
their
application
for
a
temporary injunction to restrain
continuing alleged violations of
He said that all of

the State law.

complained of

violations

the

curred

the

before

effective

oc¬

date

of the price freezing order.
U. S. Authority Supreme
~

Eder said further

"Justice

it

not shown

was

ment that since

.

that

during the argu¬
that date the de¬

selling at prices other
than those set by the Price Ad¬

fendant

was

ministrator.

iv.

,

the question of conflict be¬
Federal -and
State Taws,

(

: "On
tween

Justice Eder said: Tt admits of no

doubt

It

is

Government

that

manifest

is

of

authority

the

that

Federal

the

supreme.

Federal

the

statute is dominant.

" 'The Federal statute does not

(

prohibit

bar a suit brought pur¬

or

suant to the State Fair Trade Law,

can

economy

than that sim¬
ply are not available, and as far as
we
can
see
now they
cannot be
stantially ..higher

But in any case,

made available.

to the 45-billion level
will
be
a
splendid
the level
billions next year will be

getting
this

up

year

achievement and raising

75

to

asserted:

Nelson

"In this

great program a major
assigned to the auto¬
industry.
Contracts for

role has been

motive

than

$8,000,000,000 worth of
war goods
had been placed with
dhis industry by the end of April
of this year; more than $5,000,000,000 of that total were placed

more

Harbor.

Pearl

little

;

than

is

Yet that

beginning.
When peak rates of production are
cached under present plans,* this
industry will be producing war
goods at a rate of approximately
$12,000,000,000 a year.:
This is
three times as large as the indus¬
try's estimated 1941 sales of $4,000,000,000; it will represent ap¬
proximately one-sixth of the en-;
tire war-production effort of the
more

a

;

whole United States.
"These
think

I
connected with
industry is en¬

amazing figures.

are

one

every

automotive

the

fixed

with

conflicts

resale

retail

price

the
as

of the
parties and as affected by the
State Fair Trade Law, in the ab¬
sence
of a showing by the party
complained against that the act of
.

and

good

faith,

Federal law

necessitated

by

compliance with the
as the paramount au¬
which obedience was

thority to
surrendered'."

"From

the emphasis

on

now

is

production itself.
From what
has been done so far, I believe
on

;,hat

we

with

a

look

can

the

to

future

good deal of confidence—

with

optimism mr, a
blind feeling that everything will
somehow come out all right,- but

not

empty

solid confidence of peo¬
ple who have, tested their own
strength and their own determina¬
tion

and

that

know

they

are

ready for the worst that (fate can
bring to them."
(:■
,

Wholesalers'; Sates, |{
Inventories And

Donald M. Nelson,;

Chairman of

Board, de¬
clared
on
July 10 that "during
this calendar year the factories
of the United States will turn out
war goods of one kind or another
War

Production

$45,000,000,000."
( •"Speaking before the Automfobile
to

a

value of

Council

for

War

Production

at

Detroit, Mr. Nelson said that next
year

he expected the

figure will
$75,000 prices. He

rise to $70,000,000,000 or

000.000,

at

current

added:
,

"I

can

do

not

believe that it ever
above that figure,
is just about

rise much

because I think that




May,

discharged,"
aliens

are

another

solely

or

because

former

of

country.

ment of aliens and other foreign
Sales
of clothing and furnishings (ex¬ born., the President said that "a
general
condemnation
of
any
cept shoes) wholesalers were up
group or class of persons is unfair
15%; shoes and other footwear,
and dangerous to the war effort."
10%; drugs and sundries (liquor
Mr. Roosevelt pointed out that
excluded), -9%; dry goods, 25%.
there were no legal restrictions on
Dollar sales gains for May, 1942,
the employment of any person in
oyer May,
1941, were registered

this year over April,. 1941.

all

three of

but

durable

the

trades for which separate
are presented in this report.

goods
data

Sales of furniture and house fur¬

industries,

non-war

if

industries,

labor

is

not

"even

and

the

in

particular

'classified'

on

tracts, which include secret,

con¬

nishings wholesalers were up 8%; tical contracts."
industrial supplies, 13%; plumb¬
The
text
of
the
President's
ing
and heating supplies, 4%;
statement follows:
jewelry, 2%; lumber and building
"In order to clarify the policy of
materials, 20%; and machinery,
the government in regard to the
equipment and supplies (except
employment of aliens and other
electrical), 5%; while automotive
persons of foreign birth the Presi¬
supplies,
electrical
goods,
and dent
today issued the following
metals were off 7%, 9% and 20%,
statement:
^"Inventories, in terms Of dollars
based on cost values, at the close
of

May were down 3% compared
April, continuing the month-

with

to-month decline which first

man¬

1. Persons should not hereafter

I

refused

be

at

sons

employment,

present

4.

for

or

per¬

employed

dis¬

charged, solely on the basis of the
fact that they are aliens or that

In passing upon applications
permits, the department will

special

give

Nations

of United

friendly

American

and

other

aliens,

aliens, who come
following categories:

Aliens

armed

States

any

enemy

within the
A.

con¬

nationals

republics,
including

the

expedited

and

to

and

sideration

who

have

forces

of

have

and

been

in

served

the

United

honorably

discharged.
B.

Aliens

have

who

have,

members of

had,

or

their

mediate

States
C.

con¬

fidential, restricted and aeronau¬

respectively.

forty-eight hours, and give its ap¬
proval wor disapproval, either of
which shall be subject to change
at any later time.

they

nationals

In a formal
statement designed to clarify the
government's position on employ¬

family in the
military service.
who

Aliens

the

United

who
im¬

United

have 'resided

in

States

continuously
since
1916
without
having re¬
turned to the country of origin
within the last ten years.
D.
Aliens
who have

married

who, at the time of mar¬
riage, were citizens of the United

persons

States

the

who

and

United

since

1924

turned

resided

in

continuously
without
having
re¬

the

to

have

States

country

of origin

within the last ten years.
E.
Aliens who have declared
their intention to become citizens
oi

the United States and who had

filed

petitions for naturalization
of
any
A before Dec. 7, 1941.
(From January, 1941,' to March of
5.
Any inquiries or complaints
general
condemnation
of
any
this year, inventories at the close
aliens, pertaining to specific
group or class of persons is unfair by
of each month were higher than
and dangerous to the war effort. instances of discrimination, or in¬
those at the beginning.)
Inven¬ The Federal government is taking tentional failure to carry out the
tories at the close of May, 1942,
the
necessary
steps
to
guard above procedure, should be re¬
compared with a year ago were against, and punish, any subver¬ ferred directly to the Committee
up 12%
as against the 16%
in¬ sive .acts
Fair
Employment
Practice,
by
disloyal
persons, on

ifested itself at the close of April.

in dollar volume recorded

crease

for

they

formerly nationals
particular foreign country.
were

citizens

as

2. There

•

"Collections

well

as

are no

Washington, D. C.

aliens.

legal restrictions

the employment of any person

consider

will

tee

and

such

take

This commit¬
complaints

the

An

May
increase in sales of

average

7% for May, 1942, totaling $278,-

669,000, compared with the same
month
for

a

year

ago

wholesalers,

was

recorded

according

released

to

on

an

June

by J. C. Capt, Director of the
It is pointed out that in

registered for each of the

pared with corresponding months

action

as

may

be

department concerned permission

in

Section 11 (A)
1940, (public
No. 671, 76th Congress, 3d session)

1941,

against the increase of
for April of this

as

recorded

20%

year over

April

a year ago.

counts receivable

were

Ac¬

at approx¬

imately the same level on May 1,

1942,

as

1942.

at the beginning of April,

-

stock-sales

"The

wholesalers

at

the

-ratio
of

close

for

May,

1942, was 155 as against 143 for
May, 1941; and 146 for April, 1942.

to

employ aliens.

Contains

registered

stock-sales ratio of 143 for

and

falling off sharply to 7% for

1941..

Lumber

terials dealers

and

and

building

ma¬

plumbing and

heating supply dealers also showed

compared with
stantial

the
a

ratios

pared with, a year ago in the-past

ers' of automotive

A loss in sales
of
9%
occurred
between (the
months of April and May, by far
the largest decrease recorded be-

and

were

in

close

in

stockof

ago.

year

increases

bi^ this series for any month com¬

eighteen months.

May,

1942, compared with 162 for May,

at

May, the lowest increase recorded

May
Sub¬

stock-sales

recorded for wholesal¬

supplies, paints

varnishes, groceries and foods

.

fween

these

months

in

the

past

July 1, 1942
The

(

acreage

vation

'

"No aliens

in

the

of cotton in culti¬
United

States

on

employed by a con¬
July 1, 1942, is estimated by the
tractor in the performance of se¬
Crop Reporting Board to be 24,cret,
confidential, or restricted
005,000 acres, which is 3.8% more
government
contracts shall
be
than the 23,132,000 acres in culti¬
permitted to have access to the
vation on July 1, 1941, but 22.8%
plans or specifications, or
the less than the
10-year
(1931-40)
work under such contracts, or to

.

participate in the con¬ nuts, The greatest percentage in¬
without the written creases in
acreage of upland cot¬
consent beforehand of the Secre¬
ton
occurred
in Texas,
North
tary
of
the
department con¬ Carolina, Tennessee, Oklahoma,
tion

a

sales, ratios

lessened

provision that:

.

month, declining gradually, from
37% for January to 23% for April,

have

a

average.
If the percentage aban¬
participate in the contract trials,
for; which stock-sales ratios are unless the written consent of the doned in 1942 is equal to the 10given in this report registered a head of the government depart¬ year average, an acreage of 23,decrease in their May, 1942, ratios
525,000 is indicated for harvest
ment concerned has first been ob¬
in 1942.
This acreage would be
compared with those for May, tained."
1941," Furniture and - house fur¬
greater than that harvested in
The Air Corps act of 1926 has a
1941 but smaller than any other
nishings wholesalers with a sales
similar provision:
y.ear
since
1896.
The
report
gain of 8% and an inventory de¬
( "No" aliens employed by s
added:
crease of 2%,- registered
a stockcontractor for furnishings or con¬
"Increases
above
1941
are
esti¬
sales ratio of 162 for May, 1942,
structing aircraft parts or aero¬ mated
for
all
States
except
as against 181 for May a year ago.
nautical accessories for the United
Georgia, Alabama, and Florida,
Wholesalers of industrial supplies States shall be permitted to have
where considerable acreages nor¬
with a 13% increase in sales and access to the plans or specifica¬
mally planted to cotton have been
tions or the work under construc¬ diverted to the
a 5% increase in stocks
production of pea¬

decreases

ago

Cotton Report As Of

of the act of June 28,

Eight of the ..32 kinds of business

appreciable

year

non-war

May 1, 1942, than at the same date

each

a

in

accounts receiv¬

on

.

Credits In

first five months of this year com¬

'

the

for

1942, compared with a year ago,
although generally less than the
increases registered for April of

the sober,

ncreases

Set At $40 Billion

sales

immediately forward same to the
department concerned.
Upon re¬
ceipt of the application, the de¬
partment will act promptly there¬
on,
in the normal, case within

industries, and warranted in the particular case.
<5. Any information concerning
(B) even in war industries, if the
industry in this time of national able for May, 1942, were up more
particular labor is not on "classi¬ disloyal activities in war indus¬
peril.
But I think we must also than 6% compared with collec¬
tries
or
elsewhere, or indications
fied"
contracts,
which
include
realize that this tremendous job tions for
May, 1941, but show a secret, confidential, restricted and of disloyalty on the part of per¬
is just getting under way.
The Slight loss compared with April
sons
employed in war industries,
aeronautical contracts.
*>eak is still ahead of us.
The
of this year.
should be reported immediately to
The,collection ratio
The laws of the United States do
decks have been cleared for ac¬
for May,;. 1942, was 82 as against
the nearest office of the Federal
provide that in certain special in¬
tion, but that action has barely the ratio of 77 for
May, 1941, and stances involving government con¬ Bureau of Investigation. Employ¬
begun."
ees
have the same duty in this
83 for April of this year. Accounts
tracts an
employer must secure
Mr. Nelson concluded:
matter as have employers.
receivable were 15% greater on taom the head of the
government

10

■'■{

dollar

(A)

Census.

1042

in

ments

that persons "should not
hereafter be refused employment,
or
persons
at present employed

on

announcement

War Output In

compared with April, 1941.
Most
non-durable goods lines showed
moderate to substantial improve¬

on

July 11

February, and March respectively.

derivation from the State law was
occasioned

1942,

pride in the fact that such great
reliance can be placed upon this

stipulation

the

by

April,

April and the 25%, 24%, and
20% gains registered for January,

a

though the maximum resale
price established by the Price Ad¬
minimum

for

President Roosevelt declared

great deal of honest

titled to feel

even

ministrator

gain of 54%,

a

war

Discussing the automotive in¬
dustry's part in the war program,
Mr.

recorded

60%

for

nothing less than magnificent."

ucts of 44 manufacturers.
'

our

needed to get production sub¬

be

after

which Justice
Eder ruled was brought by three
pharmacists, Hyman Schreiber, of
1878 Lexington Avenue; Herman
Smithline, of 80 East 116th Street,
and Morris
Raskin, of 69 East
116th Street, to restrain another
pharmacist,
William
Siegel, of
1614 Park Avenue, from alleged
"The action upon

'

"■

that

The materials which would

stand.

as

defense in a suit under the State

a

'

-

limit

the

State Fair Trade Laws.
;

the ex¬
handed

accord¬
the New York "Herald Tribune" of July 8, which stated that

ing to
of

high level with

Policy On

Employment of Aliens

salers' sales continued to maintain
a

191

Government

enforce minimum resale only slightly less than the gain of

that plaintiffs may bring suit to

A ruling

a year i

ranging - from 1 % to 54 %.
Meats and meat products whole¬
ago,,

To Enforce Nesafef rice Under State Law
^

month

same

CHRONICLE

(except farm products), wines and
liquors,

and

ucts,

the basis of

on

paper

and
a

its prod¬

comparison

or

to

trials

tract

.

cerned."
There

are

no

and
Virginia,
which
increases
other Federal laws ranged from 5% in Texas to 22%

employment oi in Virginia. An increase of 13%
private employers in na¬ in both New Mexico and Arizona
tional war industries.... There are is largely attributed to the ex¬
no Federal
laws restricting the pansion in acreage of American
employment of foreign-born citi¬ Egyptian cotton.
Increases of 1
zens
of any particular national to 3% took place in the remain¬

which restrict the
aliens by

origin.
i

Where, under the law, per¬
mission to employ aliens is re¬
3.

ing States.
-

"The

acreage

of

American

Egyptian cotton increased from
quired from the War and Navy 137,300 acres in 1941 to 207,500 in
1942.
About one-half of this in-'
Departments, the alien shall go to
then be submitted by the alien to crease occurred in Arizona and
remainder
in
Texas,
New
States Employment Service, which the

Mexico and California. The acre¬
will furnish him with application
May, 1941."
age of Sea Island cotton decreased
(This monthly study is conducted form, and assist him in filling it from
38,900 in 1941 to only 9,500
out.
The
completed form will
"Twenty-seven of the 35 trades
jointly by the National' Associa¬
in
1942.
This reduction is largely
for which separate statistics are
then be submitted by the alien to
tion of Credit Men and the Bureau
attributed
to unsatisfactory yields
oresented in this reoort showed
the employer who will fill out the
increases in May, 1942, sales* com¬
of the Census. :' reverse side of the form, and then during recent years.

five

reau,

years,

says

the Census Bu¬

which also added:

with

THE COMMERCIAL & FINANCIAL CHRONICLE

192

I

den, they heard the Germans were

Opposes Pending Farm ! running the
along, they
Mortgage Bill explanations
They

(Continued from First Page)
stock liquidation between stock¬

British over
were hearing
of what this
were hearing, too,

Russians

something for which it would
difficult

be

find

to

business

a

"The interest rate

Land

new

on

fixed

is

loans

until

4%

at

June 30,

1946, which is below the
market except in a few
favored sections of the country,
"This will tend to drive private
present

competition out of all territories
except these favored few. That is
actually a true picture of the farm
loan situation today.
Private in¬
stitutional lenders are by neces¬
sity confining their new business
to very limited areas where farm¬
ing conditions are most favorable
and
are
not
operating in the
larger part of the country.
This

law would tend

uation

capital for
their

still

look

to

private

mortgage

borrowings
since it supplies their short-term
borrowing needs. This law would
farmers

ofrthe

in

the

country with

mortgage funds
Banks

and

part
of

source

the Land

except

the

Mortgage

larger

no

Federal

Farm

Corporation.

future

rates,
bill, gives to

Fixing
proposed in the
small proportion

as
a

of farmers the

advantages of

credit

ernment

not

gov¬

enjoyed

by

others."

possible

pansion

of

Banks'

an

the

unlimited ex¬
Federal
Land

farm

mortgage business
practically no regard as to

with

whether their operations are suc¬
cessful.
It provides that the gov¬
ernment

fully guarantee all Land
bonds, now outstanding in

Bank

the amount of about $1,700,000,000.

; "Speaking personally, and

as

a

farm

mortgage lender, I feel that
the Fulmer Legislation means a
virtual socialisation of the na¬
tion's

farm

tem,"

Mr,

of the

credit

mortgage

Champ

more

said.

sys¬

"Some

inequitable provisions

of

the
original 1 bill have been
eliminated, it is true, but the
broad general principles of mak¬
ing
farm
mortgage
lending
a
wholly government undertaking
remain

intact.
that

asvever

I

feel

is

this

as strongly
perfect ex¬

a

ample of the sort of proposal that
absolutely has no connection with

winning the
left

for

have

and ought to be

war

consideration

after

we

the war."

won

From

nating against anybody, is about
height of ridiculousness.

the

Either,
to

industry has

elevate

the

been

standard

trying
living

of

by being preclusive in the matter
of its

ing

employees,

to

laboring

into

it's been try¬

the

by

man

comers,

or

down

run

the

lot

of

the

bringing

all

market.

Both

But what

we

started

about Elklund:

out to say

The fact that this

little commonplace murderer
and his escape, captured the fas¬
one

cination

of

Intellectuals

people,
It

up.

burned
was

the

utterly

amazing, they propounded, that
people could be interested in such
small

a

of

thing

the

as

GLOBAL

this, in the light
warfare.

were

doing?

Were they

not concerned with what

hap¬
pening in the Battle of Libya?
Well, frankly, we can't answer
the question. All we know is that
was

(

the

local

editors

considered

Elklund
and

case
a
fascinating
thereby played it.

We

suggested

lectuals
wanted

been
was

had been told that
sion

that
a

to

the

maybe

the

relaxation.

stunned

so

much

For many

the

that

then, of




thing

imagine.
They had heard Donald Nelson

he couldn't provide any steel
for synthetic rubber production
say

because

had to have tanks and

we

they had heard
being backed up
and

of their

of

tanks

our

the wharves

on

being shot to pieces

in Libya.
Is there really any wonder that

sought

from

jail

they had

relief

of

fellow

a

never

the

in

escape

whom

of

heard? Not

in

one

ten of them had paid the slightest
attention to the case until he es¬

caped.
read,

They had to
this

did

as

back and

go

writer,

crime he had committed.

the

of

But this

adventure; it was something
tangible on
which
the
human
was

mind

could

hang.

It

under¬

was

standable.
If there is
to

seem

one

be

German

thing that would

certain, it is that the

submarines

months

had

have

free

in

re¬

to

access

Accepting that, then
they have unquestionably landed

saboteurs

galore

The FBI under

in

country.

our

Edgar Hoover is

a

very
efficient
organization,
so
presumably it has been rounding
up these saboteurs day
by day.
Then why should the arrests of
eight men be picked out for the

of

publicity blowing
up? And then, having been select¬

purpose

ed

for

a

this

publicity blowing

up

wonder

that

escape

of

the

got

Elklund?
brilliant

But

it

has

propagandists

been

a sud-

way

quotas."

He

savings plan.
get

over-all

an

million

If

savings

workers

in

billion

a

be

dollars

that

a

will

one

no

be

reluctant

"In

month.

mid-summer of this year,

of

of

expenditures, including Gov¬
corporations. of about

"This
bill

tax

deficit indicates

that

the

Pointing out that "not the least
important aspect of total war is
finances"

the tremendous

Secretary

of

in

Boston

on

July

must procure

of money we

from other sources."

War Bond Quotas

ury securities to banks, insurance
companies, trusts and individuals;
and War Savings
Bonds," Mr. Sul¬

Secretary of the Treasury Morgenthau announced on June 29
State War Bond Quotas for July

to

on

say:
;,;v \
"The borrowing of true invest¬
ment funds is now
being acceler¬
..

with

the

..

cooperation

of

For
July Set At $ I Billion

totaling.. $1,000,000,000, : although
the June quota of $800,000,000 was
not

met.

.: y .v. t.
quotas ranged from

The

a

nation-wide

of

mittee

in

Victory Fund Com¬
bankers, businessmen,
security dealers.
They are
giving generously and freely of

New York.

their

with

of

and

time

and

doing

splendid

a

job.

I bespeak for the committee
here in the Boston district the co¬

operation

.

of

England.'
"The

in

everyone

New

"

third

waging this

of

funds for

is the sale of War

Savings Bonds to the people of the
United States.
It is the hope of
the Treasury that from this source
we

borrow at least $12,000,000,000 in the next 12 months.
may

"I Would be less than frank with
you

The amount of money we are

quired
taxes

to
and

raise
the

of

more

is

so

that

great

ordinary

re¬

type

of

than

$84,925,000,
Pennsylvania
$81,050,000, California with
$61,687,000, Ohio with $55,151,000
and
Massachusetts : with > $46,;::

be forced

to

need,

resort to

we

com¬

-

•.

The quotas were

of

formance
sales.

-

,

based on per¬
States in May

the

Comparison

was

made,

however, with the distribution of
national income by States for 1941
and it was. found the figures com¬

of

acquired
It

in

or

in

by

be

effective

be authorized

of the

bonds

own

in

to

in cash

cars

accordance

interpretation of

a

fair price. Any one receiving pay¬
ment in war bonds would also re¬
ceive

the

a

priority

after

on a new car

war.

Donald M.

Nelson, Chairman of

the War Production Board, told a

opposed to

was

legislation seeking to establish a
rubber
supplies agency because

"Stocks
in

the

months'

of rayon

hands

amounted

to

period.

filament yarn

of

as

quotas

6,900,000 pounds at the end of
May.
Stocks of staple fiber held
by
producers
totaled
2,300,000
of

as

June

30

figure has been set
which

must- be

"

y

-

per

v

month

minimum

as a

obtained

of War Bonds if the

ment is to

in- the
govern¬

successfully finance the
necessary
to
win
the
Axis .nations,
the

production

-

-

.

-

compared

2,100,000 of May 31."

Scrap Rubber Drive
Yields 334,000 Tons
The
drive

allocate

for

materials

construction

that

plant

collection"

rubber

scrap

yielded

334,293 tons up to '
3, President Roosevelt was
informed on July 6 by William R.
Boyd, chairman of the Petroleum

July

Industry War Council. The drive
at
midnight July 10 and

ended

final

figures

announced

inally

shown

to

be

It had been orig-;
for
a
two-weeks'

slated

to

expected

are

soon.

(ending

the

June

but'

30)

disappointing results

in

the first 13 days, whentons were turned in, the
drive was extended an additional'

219,000
10

days,

as

columns
The
tons

noted

was

July 2,

accumulation

represents

a

in

these'

18.

page

of

334,293;

national

'

pound

capita collection of 5.07, com- 4
pared with 3.32 up to June 29.

per

The
dered

President
all

June

on

30

or¬

government bureaus

in '

needed

for

the munitions program.
' y
;
This bill, seeking to require

and throughout theJ
country to turn in every possible

the

ounce

Government

to

are

farm

more

use

Washington

of rubber to

lection

drive.

the scrap col-

-

"

,'

"

and forest

under the

direction of

man

ap¬

pointed by the President with

a

ap¬

the importance of the drive to the '
public.

proval of the Senate, on a Gov¬
ernment salary of $10,000 a year
and

with

business
would

no

outside

interests.

financial

The

or

director

Vetoes Bill Which Would

charged with the duty
of obtaining adequate supplies of

alcohol, butadiene and

as
f

military demands:
Mr. Nelson conceded

were

to start the

as
.

President

Roosevelt

on
July 6 '
providing for the loss
citizenship for persons con¬

vetoed

well

of

•

victed

that if he

i

Deprive Of Citizenship

be

a

bill

of

.

fraudulent

connection

practices in

with Government

war

synthetic rubber

contracts, saying that the penalty
In indicating his
program "all over again, I would was "drastic,"
build a much larger percentage" disapproval, the President said:
of plants using alcohol for produc¬
"This drastic penalty has been
;
tion of rubber
substitutes.
The
confined under existing laws to;
proposed legislation,* designed to the crimes of treason and deser- i
create

an

agency

to increase sup-r

tion'

from

the

armed

forces

in-

plies of- artificial elastic* was in¬ time of war.
Under this bill, i£>
troduced on June 18 by Senator
enacted, citizenship may be lost *
Guy ;M.
Gillette, Democrat, of as a result of a misdemeanor.:
Iowa.

from

Associated
Press ^advices
Washington, June 18, said:

-

,

The extreme nature
tion

of this

;

sane-

not

only constitutes a bad'
"The. measure, conceived by the
precedent, but does' violence to:
Senate agriculture subcommittee our
democratic concepts of fair
.

of which Senator Gillette is chair¬

and reasonable
puhishment for a
would establish a rubber particular crime. Apart from the'
supplies agency with -sole author¬ undesirable features of this
pro¬
ity over production of synthetic
vision, there would seem to be
rubber derived from alcohol ob¬
adequate authority in the Crimi¬
tained from farm or forest prod¬ nal Code 4o deal - with the sub-

man,;

ucts.; \

•

{,;; Slantiative

evil

remedied.''

Rayon Deliveries Higher

:;■

The

sought

V;

.

to

-

be

i

•

President also objected

to

/

vx,v,

The* $1,000,000,000

i

at

compared with

.

v,v^

,

producers

5,800,000 pounds

the end of June

its director would have the power
to

an

with

staple fiber shipments
13,600,000 pounds as com¬
pared
with
12,600,000
pounds
shipped
in May and 12,400,000
pounds shipped in June, 1941.

Agriculture subcommittee

July 6 that he

on

compared

six

any

campaign

Supplies Agency
Opposed By Donald Nelson

Senate

18%

totaled

or

Under the bill the

owners

his

the

equip¬
Govern¬

cars

would

war

with

year

pared favorably.
another section of the bill which'
; Deliveries' of
rayon
filament
The July figure is' a boost' of
would
have
extended
for .two.
$400,000,000 over the initial quota yarn - to domesticconsumers
for May; which-was exceeded byY^dunted
to - 231,400,000 pounds years the present-overtime com¬
5.7%, and $200,000,000-over June,during the first .half of 1942^as pensation provisions affecting War*

against
Treasury points out.

shall

high

with

borrow

we

a

for the State. of
Next high was Illinois

sale

amount

to

a

$171,596,000

Treasury financing cannot satisfy
our requirements.
If, through a
voluntary savings plan we cannot
the

: ;

.

low
$1,000,000

State of Nevada

144,000.

source

war

slightly
the

are

introduced

rubber to meet all civilian

"roughly speaking, this
nation is today
obtaining money
through
three
main
sources:
Taxes; the sale of regular Treas¬

livan went

yet

$5,000,000,000 with which

the

pay

current

75,600,000 pounds,

on

owners

industrial

9

stated that

-June,

with

pay

during the first

the

products in the produc¬
Defense Petroleum Coordinator ;
deficit of tion of synthetic rubber, would Ickes on July 4
urged the Mayors
establish a rubber supply agency of
principal cities to reemphasize

now

sums

for

For

pounds

President would

anticipate iii the fiscal year 1943
collections of about $17,000,000,000

a

not

to separate the prob¬

was

of

of

ord

biles and other types of transpor¬

ment.

total $200,000,000,000.
'"Under the present tax laws, we

and

wide

-

Rubber

the Con¬

by

had

months

increase

He said that

problem

through 1944.

f

spent for the war effort. • "Military and naval appropria¬
already voted

six

due

national income will

our

nation

we are

for rearmament.
During the fiscal year 1943, about
55%

for business

cars

rationing.

as
re¬

gasoline.
giving the President pow¬
buy or requisition automo¬

ment

In

income was spent

be

"Organon" further reports:
"Rayon staple fiber deliveries

tation vehicles

entire national

our

to

decided and that efforts

to

to

spending on the war effort about
$4,000,000,000 a month.
"During the fiscal year 1942,
about 25%

question

a

planned

through

latter

fund of

to

1941, we
rearmament

for
$800,000,000 a

about

to

on

tires

of

July 13 by Senator
Reynolds (Dem., N. C.). Senator
Reynolds' bill would authorize a

of

spending

were

statement

is
of

use

the Senate

$72,000,000,000.

was

mid-summer

The

deliveries
of
64,300,000
pounds
make
during shipped in the corresponding 1941
period, and also a new high rec¬

A bill
er

'•;■"
In briefly reviewing "our finan¬
cial situation," Mr. Sullivan had
the following to say:
"On July 1, 1941, there was a
national debt of about $49,000,000,000.
On July 1 of this year
that debt

it

continuing

'

"•

'

willingly

that

lem of tires and

renewed effort to achieve

this."

the

gasoline

Treasury very earnestly
hopes that long before snow falls
everyone working in an industrial
plant in New England will be
lending voluntarily at least 10%
of his current earnings.
For many
of these enterprises this will re¬
quire a new drive to increase the
degree of participation. I do hope

added

necessary

response

purposes

"The

make

in

been

trying to

requisitioning

whether

the

is

He

will

sacrifices

strict

34

pending before the
Congress may be considered as
the start, rather than the conclu¬
sion, of the nation's wartime reve¬
nue program.
It also emphasizes

Assistant

to

than reached.

more

he

nation.

country

was

month will

a

the

possible

country
with plant payrolls, our objective
of

1941.

aggregated

but that

the emergency.
Mr.
Roosevelt's

can

from

May and
38,300,000 pounds shipped in June,

gasoline

any

the

$77,000,000,000, leaving
about $60,000,000,000.

Compulsory Savings
May Yet Be Imposed

we

all the automo¬

over

000 pounds delivered in

to American mills

the

Many of these firms

the 10% mark.

are over

on

government may

the period.
For June alone,,
shipments
aggregated 39,000,000
pounds as compared with 37,600,-

dent told his press conference that
he is not trying to save tires or
save

percent of those
plants employing 5,000
have installed a payroll

ernment

worried.

campaign to borrow $12,000,000,000
annually from current earnings.

here

that

said:

people

the

people preferred to read about the

month

"Ninety-nine

gress

any

our

in

come

industrial

tions

there

will

out

go

Only

meet

we

chamber

Is

have to take

he

organize,"

money

bonds

month.

can

should the proceedings be behind
closed
doors, a meticulous star

proceeding.

the

further

coasts.

our

Intel¬

hearing that the British were run¬
ning the Germans over the desert
sands of Libya and

worst

could

one

and

Hitler inva¬

a

the

story

grasp.

months they had

they

if I did not remind you of the
consequences of the failure of this

people
They had

something they could

about

was

Were

they not concerned with what the
Russians

they were
ruinous than a

told, was far more
Hitler invasion. Previously,

ated

can't be true.

and

after

luncheon

(Continued from First Page)

•

000,000,000 a
have to plan

that the

for

bile tires in the country if the war
situation grows worse. The Presi¬

bring us our $1,month quota." "We

which,

inflation

an

President Roosevelt Warned

July 7

individual month by

on

in

the Treasury John L. Sullivan ad¬
dressing a war savings campaign

Washington

not count

it, there would be

get

.

month effort to

he

didn't

Says Government May
Requisition All Tires

Mr. Sullivan stated that "we can¬

said, "so that the

cent

It is further stated that the bill

makes

pulsory savings—a prospect not
pleasant to contemplate." " *
Noting that "the keystone of
this war savings bond campaign is
the 10% pay roll allotment plan,"

wanting an organization of
100,000 people, threaten that if

they

than one-half of

more

farm

leave

of the
Ger¬

killing a million Russian soldiers.
They were hearing Leon Hender¬

to make that sit¬

permanent.

"Farmers

■

million

a

son,

parallel.
Bank

expert
meant.

soldiers, and of the Germans

man

holders and between Associations
is

killing

All

it.

Thursday, July 16, 1942

I compared with shipments of 219,1200,000 pounds reported for the

and

Navy Department employees.

The President said that he favored:

correspoding period iri 1941, states
the "Rayon Organon," published instead

a"

by the Textile Economics Bureau, viding for

Inc:,

New

York.-

Shipments

for

Civil
a

.

Service Bill

pro-1

uniform and equitable:

basis of. compensating the lower
the half year represented a eain
paid employees of the Federalof 6% and the total constituted
a new high mark for deliveries Government for overtime work.

Volume

June Retail Prices Recede

in each class of construction are: waterworks, $7,235,000; sewerage,
$3,682,000; bridges, $669,000; industrial buildings, $868,000; commer¬
cial buildings ancf large-scale housing, $6,874,000; public buildings,
$299,023,000; streets and roads, $9,994,000; earthwork and drainage,
$2,246,000; and unclassified construction, $70,987,000.
New construction financing for the week is made up of state
and municipal bonds totaling $1,374,000.
The total for the year
to date is $7,800,618 compared with $4,917,760 for the same period

Fractionally,

According To Fairchild Publications Index
fractionally in June, according to the FairIndex.
The decline was only 0.1%

Retail prices receded

Retail Price

Publications

child

this represents the second
slightly during the previous
month, to the extent of 0.2%. This is the first time in several years
that quotations eased for two consecutive months.
However, prices
are still 15.8% higher than a year ago, and 27.2%
above the levels
prevailing immediately before the outbreak of war in September,
the

below

month.

previous

However,

monthly decline, for quotations also eased

;
The firm's announcement further states:

1939..

•

'

'..v

:

'

..

....

last year.

Bankers Dollar Acceptances

totaled

$162,849,000,

figure and

low for the last 25

new

a

decrease of $11,057,000

a

from

the

May

29

according to the monthly

years,

beginning

week

month agu
This rep¬
resents an increase of 1.4 points,
or 1.4% from the preceding week.
The operating rate for the week
beginning July 13 is equivalent
to 1,683,300 tons of steel ingots
and castings, compared to 1,659,600 tons one week ago, 1,609,700
ago,,98.3%

95.2

and

one

one

year ago.

and 1,572,900

tons one year ago.

dollar acceptances outstanding on June

The volume of bankers'
30

and

wear

capacity for the week

July 13, compared with 97.7% one

tons one month ago,

Outstanding

On June 30 Decline To $162,849,000

major subdivision, men's apparel, women's apparel, infants'
home furnishings, declined, with infants' wear showing

every

J

,

of piece goods, which remained unchanged,

"With the exception

193

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4090

156

of Cleveland, in its
of the iron and steel
markets, on July 13 stated in
part:
"Extent to which alloca¬
"Steel,"

summary

have

directives

and

tions

super¬

In comparison with a year ago piece
seded priority ratings is indicated
report of the Acceptance Analysis Unit of the Federal Reserve Bank
goods still show the greatest gain, an increase of 22.9%, and infants'
by the statement of an eastern
of New York, issued July 13.
The
total
amount
of
acceptances
out¬
wear the smallest, 10.1%.
Piece goods quotations are also the highest
steelmaker that more than 83%
standing on May 29 was $173,906,000 and on June 30, 1941, $212,above August, 1939, an increase of 33.7%, and infants' wear shows
of its orders are covered by direct
932,000.
the smallest gain, 12.-3% above August, 1939.
In comparison with a month ago and a year ago, only credits for order and less than 17% is avail¬
"While the composite index shows a fractional decline, the fol¬
able for A-l-a or lower ratings.
domestic shipments and domestic warehouse credits were higher.
lowing commodities remained unchanged during the month: silks,
In the Chicago district mills esti¬
The Reserve Bank's report follows:
cotton wash goods, women's underwear, women's shoes, men's hosiery,
mate that approximately 90% of
BANKERS'
DOLLAR
ACCEPTANCES OUTSTANDING—UNITED STATES
underwear, hats and caps and clothing including overalls, infants'
BY FEDERAL RESERVE DISTRICTS
.
orders are on directives.
shoes, furniture, floor coverings and radios.
The greatest declines
June 30, 1941
Federal Reserve District—
June 30, 1942
May 29, 1942
"Reclassification of orders un¬
1 Boston
during the month were recorded by infants' socks and women's
$32,578,000
$31,939,000
$29,966,000
der the new
the

greatest reaction, 0.3%.

332109-— 0—
*

hosiery.

-

quotations as of July 1 only fractionally above the March
level, the base for the General Maximum Price Regulation set by the
Office of Price Administration, changes in retail quotations should
be comparativevly nominal in the near future, according to A. W.
Zelomek, economist under whose supervision the index is compiled.
However, some upward movement is not unlikely as readjustments
in individual items may be essential because of higher costs.
While
the recent piercing of price ceilings is not a forerunner of a break¬
down of price control, further similar steps are expected but these
should not become routine.
According to Mr. Zelomek, popular

2

New York

3

Philadelphia

4

Cleveland

5

Richmond

6

Atlanta

7

Chicago

"With

Louis

St.

Kansas

it

recognize

though

even

sympathetic."

present

at

'/

_...

PUBLICATIONS

FAIRCHILD

THE

JAN.
1

Composite Index
_______

__

Apparel

Women's

Infants'
Home

Apparel
Wear

Furnishings

Piece

PRICE

.

May 1,

1942

1942

Dallas

113.1

112.2

112.2
105.1

112.6

105.6 *

71.8

95.3

*112.1

113.2

113.0

70 4

98.1

107.5

108.6 '

108.3

70.2

100.4

115.1

115.8 :

115.7

,

•

■

.

!

111.3

:

Blankets

142.8

t

Aprons

-

108.0

Current

115.6

-

Dresses

Brassieres__

&

108.2
143.4

-

—

135.2

127.0

135.2

134.9

i

94.1

94.5

141.0

93.5

110.0

111.4

111.4

111.3

121.5

'135.3

'136.3

*136.1

*136.0

87.4

102.4

103.1

102.8

i

«

140.8

-

<

140.6

102.8
'

92.5

76.5

89.0

92.1

92.5

92.5

64.9

87.5

106.0

108.6

108.1

108.1

Underwear

69.6

92.8

114.4

115.6

114.7;

114.7

Nqckwear-^^--,—
Hats & Caps__
Clothing incl. Overalls

74.3

86.4

98.8

99.6

69.7

84.5

92.7

94.9

.99.2
94.3'

94.3

70.1

93.4

104.7

105.3

.76.3

95.9

108.3

109.8

109.6

109.5

115.1

114.4

Shoes

Hosiery

—__

•

&

Shoes

____

-—____

Shoes

Furniture

i.—__:

____

Coverings

i_

_______

—:___

___

Electrical

Household

Appliances
_________

_____—

Federal tax

excise

Aug.

105.1

105.1

Nov.
Den.

Feb.

113.4

95.3

103.2

103.8

103.8

103.6

May

95.1

105.8

106.4

105.9

105.9

June

69.4

113.3

129.1

129.3

129.2

129.2

79.9

133.6

145.2

147.0

146.8

146.8

50.6

54.5

♦66.7

'66.8

'66.8

'66.8

60.1

77.9

♦94.7

'95.2

'95.0

'94.8

72.5

82.9

♦93:5

•93.6

'93.6

'93.5

81.5

100.3

110.4

110.9

110.8

110.7

$123,107,000

15,800,000

24,265,000

14,312,000

11,886,000

10,934,000

37,837,000

30,714,000

31,574,000

397,000

1,128,000

3,128,000

3,796,000

13,329,000

19,924,000

taxes

on

„

Rates

for

month

Prime

on

'at retail is excluded in the computation of the fur index.
radios, and electrical appliances are levied on the

of 10%.

luggage,

■'

report continued

This week's

.

..

...

.

Bankers

13,

July

as

-

.

,

„

above the preceding week's total
corresponding high week of 1941 which totaled
,

1

,

.

same week;, last year, while
is 40% and 71% lower for the same weeks.

abqve

the

Federal construction continues at its
last week and 59% above a year ago.
;

private construction
-

%

following table,
bankers'

of

*»

r

1941—

31
30

Aug.

31—

Sept.
Oct

31——

30

235,034,177
215,881,724
221,115,945
222,599,000

Nov.

30—

30

232,644,000

Dec..

31

1941—

Jan.

229,230,000

31.

-$209,899,000

31_;

211,865,000

Feb.

28_

—217,312,000

Mar.

3l_

193.590,000

.

194,220,000

.

197.278,000

.

173,906,000
162,849,000

219,561,000

Apr.

190,010.000

.

182,675,000

.

30_

177,293,000

.

high

operating
efforts of

flects all

out

to

their

keep

many

be

would

for

down

will

Branch

announce

that

is

squeeze

but

to build the war ma¬
forcing
producers
to
-

"The
areas

-

situation in some
temporarily easier but

condition

is

not

656 tons.

and directives

in the steel indus¬

try, with some companies report¬
ing 80 to 90% .of their business so
covered

and

only

a

small portion

of the July output remaining for
A-l-a
orders.
Reports
have

cropped

that

up

fabricating

some

plants making essential

scrap

is

year

tons,
461,529 tons and closed the
with an inventory of 2,158,-

high in the volume of allocations

out every possible pound

of metal.-

sold

consumed. 43,704,038

producers

the pressure

chine

tons,

expected to

The current week's high value brings the total for the year to $5,last.
a gain of 72% over the same period last year.
Federal
."New, light is, thrown on the
construction to. date shows a gain ;of 180% over last year.'
;/I / Construction volumes for the, 1941 week, last week, and the steel scrap situation with the re¬
lease by the American Iron and
current week_are;,._
!..
1
;-

have

been

are

forced

to

departments

some

goods

war

shut

down

they

because

unable to obtain deliveries

on

A-l-a

material.

panies,

involve

tremendous

.

7-10-41

7-2-42

7-9-42

$401,603,000
.Private Construction
27,643,000
r
8,237,000
Public Construction271,075,000
393,366,000
State and Municipal28,707,000
13,804,000 ?
8,271,000
Federal
242,368,000
183,776,000
385,095,000
Public buildings and unclassified construction are mainly re¬
sponsible for the week's high total, while gains are also recorded
in waterworks and sewerage construction.
Subtotals for the week
Total Construction .------$298,718,000

—

■




$217,823,000
20,243,000
197,580,000

Steel
of

a

Institute, for the first time,
pig

analysis.

example,

iron

and

steel

scrap

The analysis shows, for
that the steel industry

opened 1941 with

an

inventory of

3,939,244 tons of iron, steel and
alloy scrap, manufactured 25,775,584 tons in addition to

of

554,506 tons

synthetic, purchased 16,059,889

The

steel

com¬

the other hand, because
of allocations and directives which
on

tonnages,, have

no

lend

to follow orders of the

The

-

lease

alternative but
WPB."

Procurement

States

agencies.
Caffery explained creation
purchasing commission was
necessary by the heavy in¬

Mr.

all

on a

"July apparently will set a new

repairs

the duties here of the Metals

United

re¬

furnaces melting
obstacles.
In peaces
units noty operating

despite; all
time,

rate

the

Co.,
Defense
Supplies
Commodity Credit Corp.,
Rubber Reserve
Co., and other

Nearly All Steel Orders

Steel

industry.

Associated
Press reported,
will start func¬
tioning immediately and will as¬
commission,

Corp.,

quota basis," according to
"The Iron Age" in its issue of today (July 15).
"Each mill unit will
be instructed to produce a specified tonnage of each product," states

"The

the

Reserve

to be directed

cation to the entire steel

of

Caffrey.

Jefferson

Ambassador
The

sume

Again Higher-Scrap Easier-

is being tested
prior to appli¬

charge

31_

29_

scale

take

to

purchasing
established

29-

1942—

30_

quantities,

Brazil

been

Dec.

Jan.;

ade-

States

had

commission

Nov.

M'ay

in

Established In Brazil
United

196,683,000

June

produced

Purchasing Agency

•

208,659,000

31—— 215,005,000

and

especially."

purchase and export of all stra¬
tegic materials from Brazil, ac¬
cording to an announcement made
in Rio de Janeiro on July 4 by

30—212,932,000

Iron

received.%This applies

in

May

minor

U. S.

is

184,806,000

June

a

sheets and wire

176,801,000

213,685,000

be

steel

to

197,472,000

206,149,000

will

as

.

29——

are

domestic

for

steel

_

28

WPB

per

_

31

the

requirements, about

month, are in¬
contracting supply of

tons

31.

Feb.

products

650,000

30-

Mar.

"Soon

much

30.

212,777,000

30—

have

not

Aug.

,

-

will

these

effect.

Oct.

31—

524,720,000,.

..

no

Sept.

229,705,000

this

.

present

186,789,000

233,015,000

Apr.

to

181,813,000

30——

"

pro¬

unable

176,614,000

'J V

—

weeks

been

this priority has
standing. Assign¬
ment of the higher ratings under
the new plan is expected to ap¬
pear soon but as long as the high
proportion of allocations persists
at

A

July

is the meas¬
most prod¬

promise
definite deliveries
on
major products with A-l-a rating

Z:

,

—$188,350,000

31

4

,

V

:

on

AA-2.

products and some finishing mills
are operating
only intermittently

compiled by us, furnishes a record of the
outstanding at the close of each

1940—

steel mill

i

have

ducers

acceptances

31, 1939:

.

high level and is 111% above
;

A
A

1

;

July

quate

/

follows:

Va

%

now

several

For

ucts.

semifinished

JJ>42

Dealers' Selling Rates

150

31——$236,010,050

steel

'
•
,
Public construction at $393,366,000 is 99% above last week and

'

Acceptances

A

Directives Cover

on

rating

deliveries

for

ure

creasingly

$10,571,000

publication, which further adds in part: "The new system, which
aims toward product balance so that short items Such as plates,
structural steel, tubing and shells
—

total is 841/2%

above the

$298,718,000.

:;'

Total—$121,942,000

is

Steel Output

/.

,

The latter

"Lend-lease
—$43,664,000

AA

that orders formerly rated at

even

Bills of Others!

223,305,000

Apr.

Major group indexes are arithmetic

ing News-Record" under date of July 9.
It is also the second high¬
est week of the
year.
The all-time record to date, $434,955,000,
was established in the week of May 7 of. this year;1 The Associa¬

45%

$101,049,000

12,557,000

Vas

31—

Jan.

104.0

Engineering construction awards for the week total $40.1,603,000;
the second highest weekly value ever reported, says the "Engineer¬

and 34%

$93,950,000

been

not

have automatically become

practically
June 30, 1941

has

etc.,

undertaken to any extent, except

and

May 29, 1942

-

1940—

80.9

Engineering Construction At $401,603,009
Second Highest Week Of Year

"'f:

$50,083,000.

CREDIT

June 30, 1942

.

——

31

Oct.

this

tion's

for year

OF

shipped

jg39

July

74.3

manufacturers.

-

—

Decrease

NATURE

TO

Dealers' Buying Rates

month since July

74.0

of subgroups.

♦The

The

$212,932,000

V2

The

115.6

Note—Composite Index is a weighted aggregate.
averages

$173,906,000

■fir

volume

Mar,

Underwear

China

99.0

Wear

Luggage

Market

180

Sept.

Men's Apparel

Rnriios

or

-

60

t-a

u'

1"

139.5

75.5,

69.2

»

127.2

107.9

66.8

—

U n de r wea r

Floor

$162,849,000

120

90

94.8

73.3

83.6

Furs

Infants'

credits

Days

84.9

108.4

92.7

59.2-

■

.Shirts

"~505~66O
23,799,000

$11,057,000.

Decrease

143.4

'

•'

'4'

■j

!

:

127.7

134.3

; 119.2

72.9

Comfortables

&

Apparel V
& House

Corsets

2,189,000
11,353,000

___

Bills——$78,277,000

112.9

,

84.9
•

144.1

,

126.7

99,3

'

<

2,143,000

AA-2,

BILLS HELD BY ACCEPTING BANKS

V

■

65.0

;—

Hosiery

-

warehouse

.

Sheets

Women's

108.5

107.8

91.8

69.2
68.6

85.1

84.7

70.9

57.4

-

<

Wash Goods

Domestic

month

for

Domestic

Own

122,000

30

—

Woolens
Cotton

____

-

shipments

Goods

'Silks'

Total

between foreign countries

105.2

113.4

111.8
104.2

506,000
\

13,071,000

;

—

Domestic

1942

113.2

-112.5

90.1

97.7

i

179,000

exchange
Based on goods stored in

July 1,

1942

91.3

;

65.1

550,000

113,000

...

San Francisco

Dollar

,

June 1,

70.7

69.4

\

;

Apr. 1,

1941

—„________—440,000

designations, AAA,

AA-1,

City

Exports

„

July 1,

2,319,000
5,112,000

ACCORDING

vV-V:1' ;•

839,000

2,745,000

2,661,000

Decrease

INDEX

Copyright 1941 Fairchild News Service
1933

Men's

1

RETAIL

3, ll)3t—100

May 1,

Piece* Goods

many

1,330,000
4,641,000

11

will be forced to
Congressmen are not
''V ■':/•:•

12,383,000

3,810,000

12

support for price control should grow, and Congress

134,636,000

9,577,000
2,631,000

2,408,000

___

_——

Minneapolis

106,856,000

,

2,707,000
1,255,000

___

8

Grand

9,148,000

__

9

10

95,176,000

—

of the

made
crease

in Brazilian

production and

shipment of materials vital to the
effort.

war

/
commission,

The

plained,

,

it

was

ex¬

established by agree¬

was

between

ment

the

two

govern¬

ments, "and in anticipation of new
agreements between the two gov¬
ernments."

Tool Engineers To Meet
Plans

be
of

now

are

under

way

for

production conference to
held by the American Society
Tool Engineers at Springfield,

the

war

Mass., on Oct. 16 and 17. National
officers of the Society and chair¬
of the New England chapters

men

launched plans for
It is stated that no
fall session held by the A. S. T. E.

have
the

in

already

meeting.

the

ever placed
as
the technical prob¬

has

past

much stress

on

the planned war

lems

as

tion

conference,

ready
sions

listed
on

which

five

produc¬
al¬

has

technical

the two days.

ses¬

The con¬

that

and Steel ference
committee, .headed .by
announced past national President, Frank W.
telegraphic reports which it Curtis, is composed of the chair-*

had

received

American

Institute

on

July

Iron

13

indicated

that

the

operating rate of steel companies
having 91% of the steel capacity
of the industry will be 99.1% of

men

of

the

seven

chapters and
New-Jersey
N. Y. chapters.

New

heads
and

of

England

Northern

Schenectady,

?; ,£^:X

**stomi»W»Mitt«Mt^^owxWiWtsL. I

THE COMMERCIAL & FINANCIAL CHRONICLE

194

Moody's Bond Prices And Bond Yield Averages

Non-Ferrous Metals-250,000 Tons Of Frozen

Moody's

Copper To Be Released—Output Data Gensored

given

in

the following

July

of

Bureau

went

Baa

R. R.

P. V.

Indut

95.77

111.44

114.27

118.28

106.74

116.41

113. 31

107.98

91.62

95.77

111.44

114.27

11

118.26

106.74

116.41

113 .50

107.98

91.62

95.77

111.25

114.27

118.26

106.74

116.41

113 .31

107.80

91.62

95.77

111.25

114.08

118.31

106.74

116.41

113 .12

107.98

91.62

95,77

111.44

114.08

118.25

106.56

116.41

113 .31

107.80

91.48

95,77

111.25

114.08

7

118.22

106.56

116.41

113 .12

107.80

91.77

95.77 '

111.25

114.08

6

118.05

106.56

116.22

113 .12

107.98

91.48

95.77,

111.25

113.89

censorship regulations.
price situation was
changed.

dustry Operations governing

spe¬

cial

ma¬

or

excess

of

release

250,000

frozen

of

tons

under

the

Banco Minero de Bolivia.

months of
the current year totaled
13,153
tons, against 13,210 tons in the
Jan.-April period of 1941.
Straits quality
tin for future
delivery was nominally as fol¬

conservation

now
meas¬

Intake of scrap is increas¬

ures,

the

during

equivalent

copper

first

The price situation on both do¬

foreign

copper

July

was

Lead
Most

of lead

consumers

convinced

that

are

now

2

_

July

3

July

4

July

6

July
July

7—_—i—

August

Sept.

52.000

52.000

52.000

52.000

52.000

_.

and

of

smelters

receipts

scrap,

are

of

and

refiners,

52.000

52.000

52.000

52.000

52.000

52.000

52.000

52.000

_

8

_

in

lead

prices

and

ore

pound

publication.

lead

fixing
to

be

the

aside

set

of

apply

for

the

pool

kinds and

monthly by the
Division of Industry Operations.
Instead, the 15% deduction for the
pool hereafter will apply to each
month "until further notice."

period

for

calculating

mercury,

95.77

111.25

113.89

of

91.19

95.62

111.07

114.08

91.19

95.62

111.07

113.89

ing

106.39

116.22

112.93

107.80

91.05

95.47

110.88

113.89

106.39

116.22

112.93

107.62

91.19

95.47

110.88

113.89

106.21

116.02

112.75

107.44

91.19

95.62

110.88

113.50

rector

5

118.38

106.21

115.82

112.93

107.27

91.34

95.77

110.70

113.31

The

May 29

118,35

106.39

116.02

112.93

107.44

91.77

96.07

110.70

113.70

112

22

106.56

116.02

112.93

107.44

91.91

96.07

110.70

113.50

106.74

116.02

113.31

107.62

92.06

96.54

110.88

113.70

117.79

106.74

116.22

113.12

107.62

92.20

96.69

110.70

113.70

117.90

106.56

116.22

113.12

107.44

92.06

96.69

110-70

113.70

ance

24

117.80

106.74

116.22

113.12

107.62

92.06

96.69

110.70

113.70

visory

17

118.08

106.92

116.41

113.70

107.62

92.20

96.85

110.88

113.89

118.06

106.92

116.41

113.89

107.62

92.35

97.16

110.70

114.08

will be made by

•

118.10

106.92

116.22

113.70

107.62

92.20

97,00

110.52

114.08

Mar, 27
Feb.

27

Jan.

30

High
Low

__

__

__

14,

91.91

97.00

110.34

113,50

113.31

107.62

91.62

96.85

110.15

113.31

107.80

92.06

97.31

110.52

i 13,70

118.41

106.92

116.61

114.08

107.98

92.50

97.47

111.44

114.27

115.90

106.04

115.43

112.75

107.09

90.63

95.32

109.60

112.75

120.05

108.52

118.60

116.02

109.60

92.50

97.78

112.56

116.41

115.89

105,52

116.22

112.00

106.04

89.23

95.62

109.42

111.62

119.42

107.62

118.40

115.04

108.16

91.91

97.31

111.81

115.04

115.61

102.96

115.43

112.93

102.80

84.94

91.34

109.06

110.34

prescribe.

-

„

116.22

107.62

113.50

time and

1940_

MOODY'S

(Based

BOND

on

YIELD

Individual

Avge.

Daily

„

13

10

2.83

2.99

3.28

4.30

4.02

3.09

2.94

2.99

3.28

4.30

4.02

3.09

2.94

2.83

2.98

3.28

4.30

4.02

3.10

2.94

2.83

2.99

3.28

4.30

3.29

4.31

7

3.36

2.83

3.00

3.29

4.31

6

3.36

2.84

3.00

3.28

4.31

_____

1

_____

-

:Z

26
19

5

_____

29

22

and all other
grades of mercury. The

15

%

—______

17

____

.%

ZI"—™

2

27

3.10

2.9b

4.03

3.09

2.95

4.02

3.10

2.95

4.02

3-10

2.95

4.02

3.10

2.96

••»■

•

'■

3.36

2.84

3.00

3.28

3.36

2.83

3.00

3.28

4.33

4.03

3.11

2.95

3.37

2.83

3.01

3.29

4.33

4.03

3.11

2.96

3.01

: 3.29

3.31

2.84

4.32

4.02

3.10

4.04

4.34

2.96

3.12

2.96

4.04

3.12

2.96

position

4.03

3.12

2.98

otherwise

3.38

2.86

3.01

3.32

4.32

4.02

3.13

2.93

ant

3.37

2.85

3.01

3.31

4.29

4.00

3.13

2.97

3.36

2.85

3.01

3.31

4.28

4.00

3.13

2.98

2.99

3.30

4.27

3.97

3.12

2.97

2.84

3.00

3.30

4.26

3.96

3.13

2.97

3.00

3.31

4.27

3.96

3.13

2.97

3.35

2.84

3.00

3.30

4.27

3.96

3.13

2.91

3.34

2.83

2.97

3.30

4.26

3.95

3.12

2.96

3.34

2.83

2.96

3.30

4.25

3.93

3.13

2.95

3.34

2.84

2.97

3.30

4.26

3.94

3.14

2.95

3.35

2.84

2.08

3.30

4.28

3.94

3.15

2.98

,

■'

27

3.37

2.87

2.99

3.30

4.30

3.95

3.16

2.99

preceding month.
prevailing between Oct. 1 and
The latest report
on
relative Oct. 15, 1941.
scarcity of raw materials issued
Quotations in New York during
the
last
week were unchanged.
by the Conservation and Substitu¬

3.34

2.84

2.97

3.29

4.27

3.92

3.14

2.97

High

1942________

3.39

2.88

3.02

3.33

4.37

3.19

3.02

Low

1942

3.34

2.82

2.95

3.28

4.24

3.09

2.94

2.86

3.06

3.39

4.47

V4.03

3.20

3.08

3.25

2.72

2.85

3.19

4.24;

3.89

3.03

2.83

3.30

2.73

2.90

3.27,

4.28

3.92

3.07

,2.90

second

more

.

tion

Branch

WPB

of

places lead
three, which embraces
generally available
in significant quantities as substi¬
in

for

During the past week the Silver
Market in London has been steady,
with
the
price
unchanged
at

less available materials.

23 %d.

Zinc

on

PRICES

OF

also

an¬

METALS

("E.

-Electrolytic Copper——
Domest., Refin.

July

Official

York

Treasury prices are
unchanged at 35V8C and 35c,
8 that circula-' respectively.

July

DAILY

New

and the U. S.

The American Zinc Institute
nounced

The

&

M.

J."

QUOTATIONS)

Straits Tin,

52.000

6.50

6.35

8.25

3

11.775

11.700

52.000

6.50

6.35

8.25

4

Holiday

11.700

St. Louis

Holiday

6

11.775

11.700

52.000

6.50

6.35

8.25

11.775

11.700

52.000

6.50

6.35

8.25

11.775

11.700

52.000

6.50

6.35

8.25

11.775

11.700

52.000

6.50

6.35

The

above

quotations

"M.

are

M.'s"

M.

&

appraisal of the

Copper,
In

the

delivered

on

lead and
trade,

at

quotations

net

prices

As

prices

on

at

refineries
per

both

prompt

and future

on

the

on

delivered

a

with

vary

Atlantic

basis;

that

is,

destination, the
seaboard.
Delivered
the

pound above the refinery basis.

reduced

are

charges

to net

at refineries

on

the

Atlantic sea¬

board.
On foreign business, owing to World War
II, most sellers are restricting offer¬
ings to f.a.s. transactions, dollar basis.
Quotations for the present reflect this change
in method

to

of doing

arrive at

business.

the f.o.b.

A total

of

,05c

is

deducted

1940-.%

from

f.a.s.

basis

(lighterage,

refinery quotation).

1929

to

monthly average yields for 1941 will be found
June

WEIGHTED

AVERAGE

Industrials

January,

1942

February.
March,

1942

1942

May,

1942
1942

June,

1942

___'

YIELD

Railroads

ON

200

on

that

of bonds used in computing these indexes

was

published

industry of the United States for the week ended July II, 1942,
3,428,916,000 kwh., which compare? with 3,178,054,000 kwh., in
the corresponding period in 1941, a gain of 7.9%.
The output for the
week ended July 4, 1942, was estimated to be 3,424,188,000 kwh., an
increase of 17.9% over the corresponding week in 1941.
PERCENTAGE INCREASE

Major Geographical Divisions—
New England..
Middle Atlantic

OVER PREVIOUS YEAR

page 2218

of the

order

denying

the

the

of

appeal,
unless
by the Assist¬

ordered

The

United

and

States

Cuba-

rate of the Cuban peso

dollar.

States

for

fective

The

one

Secretary

by

and United

document, ef¬

year,

was

the

of

signed,

Treasury *

Morgenthau, and the Cuban Am¬
bassador, Dr. Aurelio F. Conchesd.
According
to
the
Associated
Press, under its terms the United
the
of

undertakes

Government

Cuba

from

payment to
days

the

time

be

sell

to

of

gold toRepublic
with

time

to

made within

120

;

delivery of the gold
that
the
provided
unpaid-for amount of gold shall not at any '
time exceed $5,000,000.
}
after

Central Industrial
West

—

Central-

Southern

Rocky

...

United

13.3

•

States

,

RECENT WEEKS

"

.

4.3

10.4

4.8

20.7

17.9

9.5

,

3,003,921
3,011,345
3,040,029
2,954,647

+12.0

+

23

May

30
6

3,372,374

3,076,323

3,463,528
3,433,711

3,101,291
3,091,672
3,156,825
2,903,727
3,178,054
3,199,105
3,220,526
3,263,082

May

9

May

Average

June

16—.

Insurance

Yield

June

13

(25)

(15)

(10)

(200)

June

20

5.3%

4.5%

7.2%

June

27

7.2
7.7

7.4

7.7

5.6

4.6

7.1

July

4

8 2

8.5

6.0

5.0

7.7

July

11_.._

8.3
7.8

8.9

6.1

5.3

7.8

July

18

8.2

5.7

4.9

6.9

July

25

7.8

8.4

5.6

4.3

6.6

Aug.

1

'

3,457,024

3,424,188
_

-

3,428,918

over 1941

I

+12.2

1940

2

of

Taxation

R./

and

Finance.

promotion

of Raymond B. Slack,
Spratt's assistant, to fill the/

Mr.

^

,

,

1932

of

years

service

Department.

in

followingthe

State

He had headed-

Assessments,;

Special Franchises, Land Tax and
Equalization since 1923.
-

6.3
,

•

Mr. Spratt has retired

,

17.8
-11.1

,

•

1929

Moody's Daily
Commodity Index

1,429,032
1,436,928

1,688,434

+11.5
+11.2
+12.5

1,435,731
1,425,151
1,381,452

1,704,426

1,705,460
1,615,085

Tuesday, July 7
July 8
Thursday, July 9__J
Friday, July 10__
Saturday, July

9.6

2,598.812

1,435,471

1,689,925

Monday,

+11.7
+11.1
+ 9.5

2,664,853

1,441,532

1,699,227

Tuesday, July 14__

2,653,788

1,440,541

1,702,501

Two

2,659,825

1,456,961

1,723.428

Month

+17.9
+ 7.9

2,425,229
2,651,626
2,681,071
2,760,935

1,341,730

1,592,075

Year

1,415,704

1,711,625

1,433,993
1,440,386
1,426,986

1,727,225

2,762,240

,

Commissioner Mealey at the same
time
announced
the
provisional4

2,503,899
2,515,515
2,550,071
2,588,821
2,477,689

____

Daniel

by Carroll E. Mealey, Commis¬

sioner

the Bureau of Local

7.5

1942

1941

2,944,906

May

2—

.

New York State, effective July 1,
was announced in Albany on July

30

19.6

(Thousands of Kilowatt-Hours)

1942

3,304,602
3,365,208
3,356,921
3,379,985
3,322,651

May

of

local

of

assessments and "
special franchise tax valuations of

Tax

6.8

9,9

.-

19.9

25.7

.

,

7.9

FOR

-

director

6.1

4.8
4.3

,

25.5

4.8 '» '
18.5

,

15.1

,

June 20, *42

3.2

12.7

4.1

retirement

Spratt, Deputy Commissioner and '

——

June 27, '42

17.3

3.6
2.9

Coast

Total

3.3
.

14.6

States

Mountain

Pacific

July 4,'42

The

vacancy.

Week Ended

July Jl,'42

'•

and

10

1941, page 409.

was

7.6 %




/3.15

power

(25)

7.7
6.7
6.4

3.22-

weekly report, esti¬
production of electricity by the electric light and

the

Week Ended—

inclusive

COMMON STOCKS
Banks

4.32

on

within

Retires As Tax Official

7.2%

Utilities

4.79*

.3.58

yields

,

tThe latest complete list
the issue of Oct. 2,

7.4 %

(125)

Month—

April,

1941

11, 1942 issue of the "Chronicle."
MOODY'S

average

% Change

Moody's Common Stock Yields
years

3.01'

2.88

'

the basis of one "typical" bond
(3%% coupon, maturing in 25 years) and do not purport to show either the average
level or the average
movement of actual price quotations.
They merely: serve to
illustrate in a more comprehensive way the relative levels and the .relative movement
of yield averages the latter being the true picture of the bond market.
•

DATA

Yearly average yields in the

3.57

*

—r

for

sales

quoted

are

delivery

0.225c.

average

Export quotations for copper

based

are

13,

"■These prices are computed from

the

prompt delivery only.

copper

plants.

are

prices in New England

for

are

domestic

consumers'

shown above

figures

zinc

tin quotations

:

Exports

Director."

States
i

The Edison Electric Institute, in its current

major United State#

sales reported by producers and agencies.
They are reduced to
basis of cash, New York or St.
Louis, as noted.
All prices are in cents per pound.

deliveries:

July

mated

8.25

Average prices for calendar week ended July 4 are: Domestic
copper f.o.b. refinery, 11.775c.; export copper, f.o.b. refinery, 11.700c.;
Straits tin, 52.000c.; New York lead. 6.500c.; St. Louis
lead, 6.350c.;
St. Louis zinc, 8.250c.; and
silver, 35.125c.
markets, based

•

1941

14,

2 Years ago

Electric Output For Week Ended July II, 1942
Shows 7.9% Gain Over Same Week In 1941

—

7

Average

-

■

of

signed on July 6 an agreement de¬
signed .to stabilize the exchange

St. Louli

New York

11.700

'

•

-

3.91

of

charge

U.S.-Cuba Exchange Pact

Zinc

Lead

Exp., Refiq,

11.775

—

July

in

2

New York

1941
1941

1 Year ago

Silver

group

commodities
tutes

High
Low

4.05
'

of

An

4.33

30

the

order.

4.33

2.84

Board

in

the

of

privilege to obtain export licenses'will remain in effect pending dis-

3.30

3.35

denied the privi-.

Warfare

Office

the

3.31

3.36

;

./•:

days after receipt of a suspension)

3.01

Feb.

be

case<

proceedings shall

Director

Economic

3.02

Jan.

will

sistant

2.84

.

all

person

2.85

than the normal differentials

requirements

"Any

3.31

2.85

a

lege of obtaining export licenses
may appeal in writing to the As¬

3.38

3.35

24

Mar.

4.02
'

Exchange Closed

2

•

4.30

3.00
2.99

3

Apr.

3.29

2.83

of

be confidential.

2.83

2.83

he may

Indut

P.'U.

3.35
3.35
_____

R. R.

3.35

4

May

Baa

3.36

8

June

Corporate by 1

A

3.35

3.35

9

Aa

disposition

Branch

trol

Corporate by Ratings
Aaa

rate

as

■

by the Chief of the Export Con-i

Prices)

,

Corpo¬

such terms

on

"Pending

AVERAGESt

Closing

■'

Average
14

ad-*

be

113.70

1942—

July

will

115.63

1941_

13,

Commissioner

116.22

106.74

1 Year ago

July

Compli¬

the

of

106.39

1941--,—-

July

•;

-

findings

106.92

118.20

1941

"The

116.34

1942_

Low

follows:

as

117.08

——

1942

,

only and final disposition,
the Chief of theExport Control Branch, Office of ;
Exports, Board of Economic War-,
fare.
In any case where the Com-;
pliance Commissioner has found
that a violation has occurred, the T
Chief
of
the
Export
ControlBranch may issue an order deny¬
ing the privelege of obtaining ex- i
port licenses for such periods of

—

_

■

procedure is further ex~/
plained by the Office of Exports-

118.33

1

Apr.

of the BEW.

117.89

re¬

schedule, effective July
7, 1942, also provides that all
kinds and grades of mercury sold
in containers of 25 pounds or less
shall be sold and bought for not

pool

91.34

107.80

118,33

amended

The

107.98
107.98

112 .93

118.14

to

grade and kind sold in 76flasks.
Amendment 1 to

cury,
redistilled
claimed mercury,

will not be issued

base

quicksilver

price schedule now defines
"mercury" as prime virgin mer¬

separate

a

percentage

113 .12
113 .12

116.41

118.33

the

Beginning with July,
order

116.22
116.41

106.39

______

tin, 99%, spot, 51.125c,

on

every

longer available for

no

106.56

106.56

2 Years ago

52.000

operate under the Production Re¬ all week.
quirements Plan. However, those
Quicksilver
in need of metal should experi¬
Official
advices
from
Mexico
ence
no
difficulty in obtaining state that output of quicksilver
supplies under the plan.
Quota¬ in that country during February
tions
were
unchanged at 6.50c, amounted to 116,199 kilograms,
New York, and 6.36c, St. Louis.
against 112,710 kilograms in Janu¬
Owing
to
censorship regula¬ ary.
Price Administrator Henderson
tions, the monthly statistics show¬
ing total stocks of lead in the ruled last week that the maximum
hands

118.09

118.18

____

—HOLIDAY—
_

Chinese

they will have to

July
52.000

charged with a viola-'
given an opportunity'

person

tion will be

12

High

lows:

any

118.12

—

19

four

ing.
mestic and
unchanged.

to
Exports

Exports of the Board of Eco¬
Warfare.
Under this plan

nomic

_

8

according

of

^—+

15

year,

be denied the privilege of
obtaining export licenses was an- "
nounced on July 1 by the Office"

1.

amounted

last

persons

statutes, proc¬

may

2

3,244 metric tons (tin content),
against 3,899 tons in the same
month

by persons who are not
regularly engaged in the business
of selling
such materials.
The
will

April

Closed

Exchange

June 26

to

terials

order

during

Aa

any

replying to the charges in writ¬
or appearing personally be-,
fore a Compliance Commissionerappointed by the Executive Di¬

'

un¬

Exports of tin concentrate from
Bolivia

sued July 7 by the Division of In¬
idle

_

4

Tin

Copper

or

8

mem¬

The

Priorities Regulation 13 was is¬

sales

to

Aaa

Corporate by Groups *

91.62

9

zinc industry because

the

of

first week of
the
The publication further
to say in part:

the

on

of

bers

in zinc and lead usually released
month.

been restricted

put has

rate *

violating

lamations,
executive
orders
or
regulations governing the control,
of exports from the United States

Yields)

A

out¬

smelter

on

Average

on

Corporate by Ratings *

whereby'

procedure

found

PRICESt

107.98

3

held reports on smelter operations

during

statistics

of

tion

and the American
Metal Statistics with¬

Institute

Avge,

Corvo-

BOND

113 31

10

To Be Denied LicensesA

116.41

■_

Export Rule Violators

are

106.74

of strategic or

Zinc

averages

118.19

14

department which would disclose the amounts
critical materials produced, imported, or in reserve
is not to be published in the press.
Conforming with the censorship
regulations, both the American^

yield

13

government

proper

V. S.

Govt.
Bonds

Averages

Markets," in its issue of July 9,
stated: "The Code of Wartime Practices of the Office of Censorship
states that statistical information other than officially issued by a

bond

and

tables:
(Based

1942—

Daily

war,

"E. & M. J. Metal and Mineral

,

prices

MOODY'S

Note.—Upon request of the Office of Censorship
production and shipment figures and other data have been

certain

bond

computed

Editor's

omitted for the duration of the

Thursday, July 16, 1942

1,698,492

1,723,031

1,724,728

231.8'

Wednesday,

July

weeks

233.4

233.3
;

.

;

16

High—April 9—

Low—Jan.

2

230 4
228 4

ago,

Low—Feb.

232.4

232.4'

June 30

June 13-

July 14
1941 High—Sept. 19

1942

233.6'

13

ago,

ago,

231.8

206.8
_

219.9
1716
234.0
220.0

.

Volume 156

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4090

Diversified

'•■-V

An

of

increase

44%

for

1942,

May,

following state¬
received, crushed, and on hand, and cotton¬
seed products manufactured, shipped out, on hand, and
exported
for the eleven months ended with June, 1942 and 1941:

,in the number of new passenger cars financed was shown by data
reported by sales finance companies, according to an announcement
on July
2 by J. C. Capt, Director of the Census.
The dollar vol;ume of paper acquired in the financing of new passenger cars in'creased 43%.
For new commercial cars, the number financed and
The volume of paper

passenger car financing decreased 11% for
'of cars and the dollar volume.
In the financing

cial

18%

the number decreased
:paper acquired dropped 19%.
cars,

'

the

-.•■■■.,

V//

automotive

retail

1942,

April,

During

;

and

of used

dollar

COTTONSEED

:

1942

Alabama
Arizona

•registered for the preceding month.

■

North

South

financings, decreased

balances for wholesale automotive
May, continuing the downward

ing

swing

during

from

the

tons

in

201,582

161,363

194,998

3,626

9,653

269,059

416.195

8,334

27,803

279,641

389,519

85,798

133,055

85,482

132,946

842

363

568,048

497,131

561,465

492,156

10,609

11,489

215,099
239,381

276,379

218,378

268,845

6,457

11,144

not

include

237,279

Item—

t

increased
of

•volume

slightly.

In

acqured

by

paper

,24% from April to May of this year.

>

'

.

r

Refined oil

Hulls

271,804

664

3,043

18,955

33,257

delivered.

960,666

1,088,659

959,515

33,653

were

119,861

142,078

1,070,753
117,148

28,345

140,139

1,169

2,934

39,507

•

■for wholesale—other

•month
280

data

than

of

May

sales

automotive.

"indexes

should

used

be

the

indicate

to

MANUFACTURED,

financing

Volume

•

v

.

of

for

Acquired

v:'-T^

During

1942,

May,

,

.,

X:
v:,:

automotive

Wholesale

15,904,014

.Total wholesale—other than automotive

——

retail—Other

•Total

Consum.

goods

Industrial, 'commercial;-: and
equipment

;

sales

*Data

are

'■

.<5801,141,011

v

12,708,144

Number

-

of Cars

;

1941-42

151,439

976,549

1,054,095

1941-42

6,183

53,874

bales)

Aug.

sumers

and

1,

tlpclqdes

12,449

1940-41

J

13,192,000

and

39,298,000

7,859,000

and

3,976,000

1941 and June 30,
7,268,000

warehousemen

at

and

and

1942,

3,943,000

places other than

4,149,000.

pounds

in

pounds
held

manufacturing

refiners

transit

and
to

brokers,

and

manufacturing

manufacturers

shortening,

concerning imports and exports.,

and

We give herewith latest

the

;;

•

'

figures received by

The members "of this Association

;

dustry, and its

(/

the

represent'83% of the total in¬

production, and also

activity of the mill based

the time

on

week from

each

figure which indi¬

a

operated.

advanced to equal 100%,

are

so

;;

These

that they represent the total

t

}

•

5,740,037

/.'.y

;

■■■.

Unfilled

.

Production

.

Received

Ordsrs

Tons

Percent of Activlti

Remaining

•'V;:v

Tons

,."'i

-•

Apr.

;5

Apr.

18..;,__^__—

•

■

2_i_——

:

May

6

May

_^.u—_

16

May

\
iden-^
.-

May

:■:

30—

June

6

20.

June

27

:—.

July

Current

161,888

169,249
153,269

129,834

153,442

139,026

156,201

388,320

135,273

152,569

371,365

I

•

436,029

100

101

428,322

93

101

94

404,199
<;.v.

93

X'.x

90

;

Total

f v!*: Number

automotive-_»^«___-_---l---i.-J

retail

-

•

total'

69,329

Dollars:

,

.

t$27,756,760

100

% ot

>

'total.

•

passenger

!

cars

commercial

cars

6,833

10

5,224,375

522

1

590,240

—'

,19

the

2

r

debits

month

of

This

in addition to

was

and
interest
$15,155,941 made as
Ac¬

counts

past

due
59

as,i

much

totaled

as

only

30

days

Only
of 871 financed by
delinquent in : their

systems

REA

were

payments."

$246,181.,

4

•"•

"May set

all-time high

an

rec¬

for

ord

advance payments," ,REA
Administrator Harry Slattery said,

tion schedules are many operating
areas
in which electrification

as

that

99

loans

360,221

86

99

Alaska

82

98

120.224

V

140,650

113,059

;

132,901

'•

81

316,443
■

120,374

;

288,516

77

283,390

69

95

115,300

125,016

274,512

72

98,766

248,594

69;

104,178

117,924
120,359

94,257

100,337

223,809

231,368

.
.

96

.

:

reported

and

April

on

$344,620,369

borrowers

to

the

in

45

Virgin

1
on

States,
Islands.

line, serving 946,371 farm and

other rural

93

XX-

72

of

94

•

REA

The 788 systems energized on that
date were operating 359,549 miles

97
...

the

advanced

336,530

consumers.

92

59

.1

June

had

143,427

91

'•■•

•••■

•i'\.

•

Complete Army Supply Bill
President Roosevelt signed on
July 2 the $42,800,000,000 War De¬
partment Appropriation Bill.
Legislative action on the meas¬
ure—the

by banks

in 274 leading centers for
$50,110,000,000.
During the past
Used passenger cars^_l;i„'_-_vAy-!4---i—59,132
85 '• * 20,803,172 •.
75 ~ -" three months total debits for the same centers amounted to $145,078,( Used,, commercial
cars_-,_i^_-t-_-_--ii;
2,842
4
1,138,973
4
000,000 or 10% above the total reported for the corresponding period
^Total wholesale automotive____
;
.
____
,
v t$14,855,561
100,
a year ago.
At banks in New York City there was an increase of
3% compared with the corresponding three months' period a year
New cars (passenger and commercial).—
10,991,760
74
Used cars (passenger and commerc.al(___A
;.
-.i.;.;:.;",;, 3,863,801
26 ; ago, and at the 273 other centers there was an increase of 14%,
*<Data are based on reports from sales finance companies providing a breakdown
The report covering the month of May appeared in the June
'of their retail and wholesale automotive1 financing.
tThese amounts are less than
lo, 1942 issue of the "Chronicle" on page 2317.
those reported in column 1 of above table, due to the Inclusion in that table of data
New

month

scheduled in loan contracts.

141,745

Bank Debits For Month Of Jane
Bank

New

'

the

principal

payments of

130,510

"■

100

during

The Department added;

1.

119,142

'

-■

dates

regular

added

101

100

•:

.

1942

•'/-V
'I' Number of cars
X'.'X
Volume
J-% of:

their REA loans in advance

on

due

formerly thought to be not
economically
feasible."
It
was

"

-

340

of

Cumulativt

Note—Unfilled orders of the prior week plus orders received, less production, do nm
necessarily equal the unfilled orders at the close. Compensation for delinquent reports-,
orders made for or filled stock, and other items made necessary adjustments of unfilled
orders.

r:;V.-

Rural Electrification Admin¬

in

Tons

145,000

110,226

t--:

June
June

87

was

4

Apr. Tl________^_^__:

*4'.

$58,759,882 $1,401,616,416

■■X'

....

.

that

30

systems, financed by

"Among the systems
that are
keeping ahead of their amortiza-r

REPORTS—ORDERS, PRODUCTION, MILL ACTIVITY
.

-1942—Week Ended—

Apr.

l8;R-',->

..0.-

..

Orders

h-y

May

9,847,339

>

..''j V'

;''V

>' .■>

•

;'1'-

I"',*'

.>« ••

June

on

istration, in 24 States paid $502,-

June

from the National

us

program includes a statement each

■Period

41 "
5,;

,

said

"Prepayments on funds loaned
by the REA totaled $5,657,717 on

Paperboard Association, Chicago, 111., in relation to activity in the
paperboard industry. :V:
y':

STATISTICAL

outstand'g

Prepaid On Loans

rural electric

■;;

and

The U. S. Department of Agri¬

culture

respectively.

Weekly Statistics Of Paperboard Industry

industry.

acquired to,;

Financed and Volume of Paper Acquired During May,

r.:Class of Paper—

REA

and

of May.

member of the orders and

AUTOMOTIVE FINANCING *

•

totaled $5,109,791
non-foodstuffs, $121,378,244.

oleo¬

defense, the Department of Commerce
has decided to discontinue until further notice the
publication of
statistics

lards, fats, and oils,
Purchases of other

con¬

agents

establishments

of

1, 1942, were;'dairy
and eggs, $224,378,773;

foodstuffs

9,217

and

to

refiners,

Aug. 1, 1941 and June 30, 1942,
1,200,300,000 pounds of crude oil.

from

refining
transit

by

etc.

soap,

2,249

23,085

52,188

by

a

June

to

$27,714,251;
$56,006,163.

304
^

36,972

respectively.
pounds

refineries

in

held

179,321

35,252

48,956

pounds

50,645

31,923
r

May-aver¬
pound.
; ?

meat, fish, and fowl, $211,615,575;
fruits, vegetables, and nuts, $54,854,382; grain and cereal products,

73,893
181,430

s;

In the interest of national

of firms,

group

products

Grabbots, motes, &c.)

$ Produced

on

C'-iy-'C

224,275

1,133,910

:•/ balances!

paper acquired and their outstanding balances.
[Ratios obtained by dividing-paper acquired by outstanding balances for an

;,

1,773,312

30,393

bales)

margarine,

reports from all sales finance companies regardless of whether
or
not they could supply a breakdown and whether or not they could report their
outstanding balances.
--..v-X'■■■''XxX-XfXX. '• '-X'.^X--;
.[Data are based on figures from sales finance companies able to report both theii

tical

1,918,086

36,286

cates

247,722,326

628,511

$59,492,829

79,501

1,183,891

*

337,165,703

1,060,341

•

1940-41

/

3,903,000

X <XXX

639,505
_•

.

' $28,505,73415,857,152

iX:X-:■■'<■■,■

farm

financings.-

based

May 31,

1942t

1,108,270

up

250,715

__J

bales)

establishments

of paper

■;

.

Total

Outstanding

balances!

12,945,482

372,756

1,635,008

1,834

Ratio

outstanding

companies'1

autdmotive-JCfi^;^ $28^5,558

Total retail
•Total

XX+

.

$369,745

1,294,824
1,721,279

|

com¬

in

"Leading commodity groups de¬
livered, with cumulative values

164,444

1,215

X-X :'XX'XX

•X reporting-;"-balances

By all

Class of Paper—

:

$1,120,866

cost of all

delivered

aged 20.6 cents

[■?: :■■■£>

:

'XX companies

V

r;.

t294,005

129,340

figures

By all

5.

1941-42

1940-41

•

'.v-v

51,961

.

.;r>'

acquired during
May, 1942

"

*51,291

1,397,845

1941-42

"

Dollar: volume of paper

1,229,490

1,399,183

1940-41

'

/"v XXr-:XX'kX

1,228,850

37,352

J

>5'X
>"■

-

.

*29,708

)

and Balances Outstanding

May. 31, 1942

,;

August 1

925,459

*Includes

the

■

AUTOMOTIVE AND DIVERSIFIED FINANCING
Paper

Season

1941-42

1,234,994

fiber

"The per unit

1940-41

1 to June 30

and

meats

modities

Shipped out
On hand
June 30
Aug. 1 to June 30

of

amount

''/-vSales—Finance Companies

•

for

ON HAND

Produced Aug.

1,085,975

changes from April; to May, as- shown by data from
"reports for April and for May from sales finance companies report¬
ing comparable data, and by linking these percentages to the in¬
dexes previously derived for April, 1942.,,
V;:.'»V

,

AND

1,162,485

percent

^

OUT,

20,914

•

-

SHIPPED

123,154

financing
"by all sales finance companies in, the United States.
The data are
published as reported without adjustment for seasonal -or price
fluctuations.
All indexes for May were obtained by calculating
the

58,912

destroyed

Exports and Imports of Cottonseed Products

sales

total

tons

1940-41

(500-lb.

reports for April and for May from
Neither the dollar volumes nor the

on

companies.

66,103 and

nor

665

1941-42

'

•

of

trends

current

based

were

finance

,

the

on

1

include

\
__j

(running

"

These

Does

j

(500-lb.

4% for retail automo¬
retail-other consumers'
goods, 5% for industrial, commercial, and farm equipment, and 6%

hand Aug.

on

Department

largest transfers
dairy prod¬
ucts,
meats
totaling
52,098,154
pounds and dairy products 40,*•
383,556 pounds.
'

493,658

V

Hull

; ,
*
May, 1942, to the ouW

; „
The ratios of the paper acquired during
'Standing balances as of May 31, 1942, were
tive, 5% for wholesale automotive, 6% for
,

tons

respectively.

since

The

for

1940-41

-;•••.

•

Agriculture

307,460

1941,

points

reported:
'
v
"During
May,
200,914,489
pounds costing $41,528,179 were

1941-42

(tons)
Linters

•

-automotive).

_—

The

124,243

and

shipping

further

399,318

;

(tons)

at

I

(thousand pounds)

outstanding balances held by sales finance com¬
panies recorded slight to moderate reductions-during May.
OutStanding balances were reduced 4% for the retail financing of other
^consumers' goods, 6% for industrial, commercial, and farm equip¬
ment, and 14% for wholesale diversified financing i ,(other than

•

J

Cake and meal

Diversified

1,685

to

up

the program began in Aprils 1941,
has approximated $701,008,000,

274,333

130,529 and

-

(thousand pounds)

wholesale diversified financing the
finance companies was down

9,535

shipment

bought by the Agricultural
Marketing Administration arid de¬

399,591

PRODUCTS

oil

Crude

sales

236,102

rep¬

ucts,

livered

121,899

On hand

refrigerators, and of furniture-dropped 31%, 20%, and 12%,
respectively;
Financing of residential building repair and modern¬

ization

230,378

to

Total cost of these prod¬

397,605

-

COTTONSEED

of

<

158,494

—

reshipped for 1942

1941.

retail diversified financing by sales finance companies for
May, 1942, compared- with the preceding month; the largest de¬
crease (49%) was in the volume of financing of radios, pianos, and
other musical instruments.
The financing of household appliances,

'

20

42,851

In

:,

•

391

22,408

—

>Does

6%.

high

^February.

■

80,249

498,910

!

States

12,529

78,060

Carolina

other

All

4,771

198,217

1941

478,027

Tennessee

Texas

190,431

228,716

delivered

been

Lend-Lease

June 1.

1942

116,106

80,261

Oklahoma—

['Xr

r

June 30

1941

4,319,107

536,206

!

Carolina

3,946,664

78,234.

Mississippi

of paper

volume

had

for

475,505

Louisiana

sales

acquired by sales finance companies in
wholesale automotive financing decreased 19% for new cars and
*7% for used cars from April to May of this year.
The outstand¬
The

210,164

_________

California

1942

222,314
/.

Arkansas

of

jfinance companies decreased 10%, slightly more than the decline
%

on July 5 that more than
5,178,000,000 pounds of farm prod¬

resentatives of the United Nations

On hand at mills

•

Aug. 1 to June 30

1941

4,470,696

;

(TONS)

ON HAND

Crushed

3,932,241

Georgia

of

CRUSHED, AND

Aug. 1 to June 30

United states..—

•

outstandings

RECEIVED,

Received at mills*

commer¬

volume

reported
ucts

acquired decreased 27% and 24%, respectively.
both the number

;Used

Deliveries To June 1"
The Department of Agriculture

ment showed cottonseed

the preceding month

over

Lend-Lease Farm Product

Receipts Continue Small

On June 13 the Bureau of the Census issued the

Financing For Month Of May
:

Cottonseed

195

largest appropriation

re¬

quest in the nation's history—was
completed on June 30.

Passing the bill

aggregated

voice vote,

on a

•

the

t-

to

the

on

June 30 in two minor amend¬

v

•

;

r

,

.

-

Senate returned the

ments

This

than

House

was

•

the

companies

finance

sales

breakdown.

that could not provide a

,

SUMMARY BY FEDERAL RESERVE

[In

■

:

DIVERSIFIED FINANCING *

,

Volume

of

Paper Acquired

'

r..

Furniture
1
'

consumers'

»

;

given.

$1,000,000,000 in

total

direct

Miscellaneous

retail

93,331
879,934
293,847
3,594,841

'■*

consumers'

retail—other

wholesale—other

diversified

—

——-—•

.Total

Total

than

506,525

'

goods.—...

automotive

J._—

.

and farm equipment

financing.^

....

15,594,416
1,103,270
639,505
$7,342,191

companies providing a.
of their reta 1 financing of other consumers' goods.
tTlUs amount is less
reported in column 1 of table on "Automotive and Diversified Financing"
inclusion
in
that table of
data from the sales finance companies that
provide a breakdown.
*Data

are

total

based

on

reports from




1942
Boston
New

and electric) __——
Other household appliances
:
Residential building repair and modernization.:—

sales

finance

the

dollars]

June

% of :-.-.••

goods:

(gas

World

DISTRICTS

-3 Months Ended-

Federal Reserve District-

Dollar volume

r-

of

-

;

Radio, television sets, pianos & other musical instruments

.Total

,

;

,

;

■•'••

#.J1-'"'

1942

.

Cleveland

—„__—

—;—...—

Richmond

12
4
49

—~_.

Atlanta

i

Chicago

*—

....

Louis

St.

7

Minneapolis
City..

Kansas

76
15
9

San

Francisco

[Total,

,100

not

274 centers..
York City*—

June
1941

June

June

1942

1941

2,854

2,490

8,410

7,354

19,346

18,990

55,803

53,889

2,553

2,667

7,501

7,577

3,810

3,267

10,922

9,472

2,065

1,796

6,039

5,117

1,637

1,390

4,921

4,205

7,911

6,928

22,800

19,805

1,651

1,506

4,934

4,288

926

814

2,708

2,444

1,683

—

Dallas

breakdown
than that
due to the
could

———

York

Philadelphia

3
1

$225,938

'Industrial, commercial,
/

; ;

-:■

v

;

Refrigerators

.

'/

Class of Paper—

Retail—other

'

During May,

millions

outlay

1,384

4,738

4,011

1,305.

1,092

3,337

3,266

4,371

3,613

12,465

10,404

50,110

45,93 7

145,078

131,831

——17,394

17,282

50,402

49,063

centers*

28,295

24,866

82,000

71,760

$133 other centers

4,421

3,789

12,675

11,008

New
140

other

—

*Included in the national series covering 141 centers, available beginning in 1919.
[Excluding centers for which figures were not collected by the Board before May 1942.

War.

It

purchase

and

measure

concurrence

appropriation bill is

,

•from

where

about

excess

for

more

of the

the

first

carries funds for

of

23,550

airplanes

and for
equipping
and
maintaining an
army of 4,500,000 men by July 1,
100,000 tanks

1943.

Associated

Press

30 said:

advices-June

.; ■
■'
■ •'
"Of the total amount appropri¬
.

.

ated, $12,700,000,000 would be set
aside
for
lend-lease operations,
$11,316,000,000

allocated

to

the

aviation
for

program,
$9,948,000,000
ordnance purchases and $3,-

721,000,000 for transportation and
equipment."
House passage of the measure
on

June

June 25

23

was

reported in

issue, page 2392.

our

y

THE COMMERCIAL & FINANCIAL CHRONICLE

196

During the period of

Weekly Goal and Coke Production Statistics
snt£. Bituminous Coal Division, U. S. Department of the Interior,
latest report states that the total production of soft coal in thb
curtailed by the miners' holiday and the universal
observance of Independence Day, dropped to 8,135,000 tons.
This
compares with 11,425,000 tons in the preceding week, and 6,822,000

attempt promptly to report changing prices.

The indexes, however,

must

in 'its

and revision

be- considered

-

preliminary and subjectrto 'such adjustment
more complete reports.
table shows ; index numbers of the principal

as-

President Reports On Use •
I Of "Blank Check" Funds
-President-

•

Roosevelt,- in; aL report
1 as to the
The
following
status of the emergency funds of
groups of commodities for the past 3 weeks, for June 6, 1942 and $239,500,000 made available to him
July 5, 1941, and the percentage changes from a week ago, a month by Congress under "blank check"
ago, and a year ago:
l- •
'/
'■J ■'
authority, said that the money
J,
(1926=100) '
;
7 •, -. • 7
Y1 '
had "made it

week ended July 4,

corresponding week last year.

price controls,

of-Labor Statistics will

V

tons in the

rapid (changes, caused by

materials allocation, and rationing the Bureau

Thursday, July 16, 1942

,

required by late and

as

to

Congress on July

v

The" U. S. Bureau of Mines reported that the production of
Pennsylvania anthracite for the week ended July 4 was estimated
af 941,000 tons, a decrease of 297,000 tons, or 24% from the preceding
week,, Due to the miners' vacation, the output for the week of July
5, 1941-was only *"64,000 tons.
The calendar year to date shows a
gaimof 11.2% when compared with the corresponding period of 1941.
»■'
;ihe U. S. Bureau of Mines also reported that the estimated pro¬

■

.

.

beehive ovens decreased 33,700 tons during the same period.
OF

PRODUCTION

STATES

UNITED

ESTIMATED

'

COAL,

IN

■.

TONS

NET

.

•"

July 4;

^

•1942

Bitjii'ipinous' and

'

July 5;

'

coal"-

,iignlte

•Total',' tncl. mine
Daily ^'average

•

1942

•-

~

•

-

1941 ^

V

6,822

290,469

233,443

2,006

1,880

1,508

1942

1941

;

products
Foods
—1—a

——

YY

products

Textile products,——
Fbel and lighting materials

;

,—

1942

1941

*98.7

87.7

+

104.9

104.6

104.5

105.6

84.1

6-20

6-27

1942

1941

0.1

—0;2

+12.3

98.4

99.7

84.1

118.9- -118.9

118.8

•108.8

97.3

97.3

97.2

84.1

79.2

79.0

*78.9

79.0

99.3

118.9
97.3
79.5

.

+ 0.3

—0.7

+ 24.7

Metals and metal products.—— ' 104.0
110.6
Building materials—-

*104.0

*104.0

*104.0

98.4

110.0

109.9

109.9

101.7

97.2

97-2

97.2

97.2

84.6

104.5

104.5

104.5

104.5

90.1

90.0

90.0

90.0

181.2

99.9

99.6

98.7

100.4

•84.9

Chemicals and allied

products—..,

goods——.

Housefurnishing

—0.4

0

>

0

•

+ 0.1

.

0

+ 0.4

11,425

1,904

;

+ 18.1
,

+

,

Miscellaneous commodities—;
Raw materials

Semimanufactured articles

+ 15.7

+ 0.8

+;.

0.6

+

5.7

0

0

+ 0.5

+ 0.6

o

0

+, 8.8
' .+ 14.9

0

+ 10.8

0.1

+ 0.1

+ 11.0

+ 0.3

—0.5

94.3

-

92.8

92.8

92.6

92.7

87.4

♦98.9

♦98.8

♦98.8

*98.9

89.4

♦97.2

*97.1

*96.7+ *97.2

♦96.1

>96.0

*95.9

o

■

+

:

•

o

+ 17.7

products—.—_-—-jL-ui.i-

1937

+

0

+ 10.6

88.5

+ 0:1

0

89.2

+ 0.1

+

v

All commodities other than farm

products and foods—

1,465

•Preliminary.

barrels

*Tutal

5,860

5,958

*95.9

-

V

+ 0.2

•

*

4-

;

.

produced, during.: the week-converted tq equivalent coal assuming

on

.

1

.'

fj,';

,

PENNSYLVANIA

OF

PRODUCTION

ESTIMATED

(

-Week Ended

AND

'*•

The

Y

.

Y

COKE

§July 4,

1941

July 5,

July 6,

1941

1929

1942

941,000

1,238,000

64,000 29,997,000

production-1 894,000

1,176,000

61,000 28,497,000 25,617,000 33,672,000

total

States

26,965,000 36,284,000

States

operations.

and

wasliery

coal,

dredge

fuel.

colliery

[Excludes

%

1,184,600
and

shipped

coal

[Comparable

'

revision.

data

:

x

31,048,900

■

^Subject

available:.

PRODUCTION

WEEKLY

OF

COAL,

BY

STATES

[In Thousands of Net. Tons]

(The

current

and

are

estimates are

weekly

based

railroad carloadings

on

subject to revision on receipt of monthly tonnage reports from district

and State sources

or

of final annual returns from the operators.)
-Week Ended

June 27,

1942

Indiana.-'—i.——

4

3

19

17

138

130

103

57

80

;

47

Kentucky—Eastern——.

■•

'

,311

;

,

•

43
145

242
'

tt

16

90

72

116

+

.

.

.

•:'

;

2

•

40

Y

.

,

-

704

tt

;

.tt

.

WEEKLY WHOLESALE
-

88

'»

»

-

;

29 /

South. Dakota

52

48

30

22

Y

*

Each Group
;•

47

Total Index

12

1

:

a-

Y

*i

35

38

22

22

51

27-

757

-

.743

v

•

667

'

23.0

,

"

v

16
458

'

'

* *

12

—

2,850

2,778

3,030

2,192

1,934

154

152

153

117

98

Tennessee—
Texas
•

■

(bituminous

-

14

5

6

113

Ill

-j.—-—
.

—__

_

'

17.3

113

10.8

.

408

Virginia

<

7

-

47

"i

.v

410

44

Washington
;—
•West Virginia—Southern—

'.Y

403

40

29

89

277

231

27

30

40

1,891

1,620

1,380

'.3

-565

856

.3

tWest Virginia—Northern-—

889

883

893

582

Wyoming

108

108

108

71

—

2,382

•

•

1

tt

ti¬

:—

.—

Building

Chemicals and drugs

11,125

ll,285

8,199

7,233

10,866

1,212

1,314

1,065

937

1,956

12,337

12,599

Y 9,264

8,170

V

records

States."

of

Georgia,

the

ttLess than

of

Bureau

North

Carolina,

•

•+.

Farm

•1941

125.7

125.6

106.4

137.8

138.7

118.2

159.6

161.3

163.0

132.8

137.4

126.7

136.5

111.6

187.5

187.5'

111.6

114.1

133.3

132.2

.'108.8

125.2

119.5

110.4

-

"*

133.5 '

\

128.0

.

149.1

.

128.1

127.7

148.5

148.9

142.1"
99.5-

'1

of the

act-

Department and the

§Data for Pennsylvania anthracite from pub¬
HAverage weekly rate for entire month.
Dakota included with -"other Western

Mines.

and South

1,000 tons.

Wholesale Commodity Prices Continue Steady
In

July 4 Week, Labor Bureau Reports

The Bureau of Labor

nounced

industrial

on July

Statistics, U. S. Department of Labor,

have

continued

comparatively

steady

the effective date of the General Maximum Price Regulation.

•

104.4

104.4-

■104.4

103.9

L-

151.6

151.7

118.5

L——

120.7

120.7

120.7

105.2

117.8

117.8

118.7

111.9

115.3

115.3

115.3

102.0

104.1

104.1

104.1'

machinery

All groups

+

combined

1926-1928

on

base

were:

July

87.2.

•

be

tfris time.
In

•

■

..

addition to

,

an

,

7
advance, of 0.5%
.

.

-

:

12.3%

above last

7

1

11,

1

;
-

since

an

ident
and

a

to the

appropriated in these acts
report thereon submitted
Congress, on or before June

30, 1942, there is transmitted a re¬
port of the status of these funds
as of May 31,
1942.
"This report sets forth

these

under

location

such al¬

appropria¬

obligations

incurred,
in'
liquidation of those* obligations. +
"Of the total amount of $239,the

tions,

the

and

amount

expended

-

500,000 available, 87%
four

to

>

the. Navy

the. Federal

and

was

agencies—the

allo¬
War,

Depart¬

Commission,

Loan.

Agency.

Through this means: the construc¬
tion of cantonments. :and hemi¬
sphere bases
was
started,
the building., of ships expedited j and
the stockpiles of wool and copper

procured.

it

In

instances sub¬

many

-the

continuation:;of

these

in

but

programs,

possible to initiate such
without delay and thus

pro*

grams

99.3

terially expedite

•

•

*.

.

.

'

;

in average prices for build¬

ing, 'materials, fuel and lighting materials increased 0.4%; farm
products, 0.3%; and miscellaneous commodities, 0.1%.
Indexes for
the remaining six commodity groups were unchanged from levels
of the previous week.
The Bureau makes the following notation:
•
7

!

-

•

-

•

•

•

New

our

ma¬

effort."

war

Exposure Meter For

The

v

Photographers

American Standards Asso¬

ciation

announces

completion

of

standard which,
while intended for the Army and

a

new.emergency

world.V,

-

The June shipments were the highest on record for that month.
Total shipments during the second quarter and the six-month period
ended June 30

In

Dur¬

year

450,630 net tons.

,increase of

the

were

table

also the highest in the corporation's

below

periods since January,
1942

February
March

May

—

Y

June

July.

.

>
—

•

we

list

the

1940

1939

1938

570,264

•

r

-

1929

-

1,364,801

1,616.587

1,548.451

1,009,256

747,427

522,395

1,388,407

1,720,366

931,905

845,108

627,047

1,605.510

photographer.
tion is identical

tained

issued

be

by

The

may

any

-

in

amateur

civilian

to the

a

be ob^
edi¬

1.687,674

907,904

771,752

550,551

1,617,302

1,834,127

1,745,295

Y.084,057

795,689

509,811

1,701,874

1,774,068

1,668,637

1,209',684

607,562

524,994

1,529,241

1,666,667

1,296,887

745,364

484,611

1,480,008

Navy edition except ,
priority materials required by. the

615,521

1,500,281

services because of rigorous con¬

ditions.

r

1,455,604

885,636

1,392,838

1,086,683

635,645

1.262.874

1,851,279

1,572,408

1,345,855

730,312

1,333.385

1,624,186

1,425,352

1,406,205

749.328

1,110.050

1,846,036

1,544>623

1,443,969

765,868

931.744

-

—

-

page

_—

20,458,937

14,976,110

11,752,116

7,286,347

16,825,47*

Army-and
for use of

Thecivilian edition, a 24-

booklet

with

a

fabricoid

will retail at $1 per copy.
"Purpose of this Exposure Com¬

cover,
:

mos.

and .used

1,758,894

1,664,227

by

also

1,780,938

1,753,665

Total

will

870,866

_■

December

it

civilianf edition -which

1,145,592

August—:——

November

Yj.j

1,682,454

September
October

further

I, "It was prepared at the request,
of the U. S. Navy for use on ships
but

!

Association

history.
J*.
figures by months for various and planes by< the Army, and Navy,

1929:
1941

The

says:

1,738,893

——-—

puter is to provide a simple but
changes caused by price controls,
29,159
*12,827
*42,000
;
37,639
*44,865
Yearly adjust.—
accurate method of estimating the
materials allocation, and rationing- the Bureau of Labor Statistics
Total
enter
into
will''attempt promptly to report changing prices. The indexes,
20,417,000
15,013,749
11,707,251
7,315,506 •16,812,650 various factors: - that
•Decrease.
Y '
taking a picture, and thus to helphowever, must be considered as preliminary and subject to such
Note—The monthly shipments as currently reported during the year 1941, are subiect
the
amateur:
adjustment and revision as required by late and more complete* to adjustments
judge exposure time
reflecting annual tonnage reconciliations. These will be comprehended
and camera lens
reports.
.
In the cumulative yearly shlnments as stated in' the annual report.
opening."

'^During- the period of rapid

——

:

under

the emergency funds for the Pres¬

providing the emergency fund fob
the President the Congress made

128.9
128.8
127.7
' 111.9
1942, 100.4; July 4, 100.3; July 12,
Y
•+
:
"... i. .i.f

.

•

expendi¬

Shipments of finished steel products by subsidiary companies of Navy, will help amateur photog¬
United States Steel Corporation for the month of June, 1942, raphers all over the country to
take better pictures. • The new
amounted to 1,774,068 net tons, as compared with 1,834,127 net tons
in the preceding month (May), a decrease of 60,059 net tons, and standard is a Photographic - Ex¬
with 1,668,637 net tons in the corresponding month in 1941 (June), posure Computer—a simple pocan increase of. 105,431 net tons.
ket-sizeYdevicefor finding the
I Y ;:
Y
For the year 1942 to date, shipments were 10,503,507 net tons correct exposure for any time of
compared, with 10,052,877 net tons in the comparable period of 1941;, day in any habitable part of the.

April

1926 average and is

of the

all

authorized

or

;'

is

at 98.5%

of

kept

made

tures

the

January

now

year

1941,

30,

June

for

Corp. Shipments Decreased In
June-Six Months Total Highest In lis History

ing the week ended July 4 higher prices for certain farm products,
particularly livestock, cotton, and fresh vegetables, for gasoline add
some types of West Coast lumber caused the Bureau's
comprehen¬
sive index of 889 price series to advance 0.1%.
The general level
at

i'

an¬

9 that average primary market prices for most

commodities

fiscal

the

for

June

ending

projects 'and

134.7

151.6

•

making appropriations

for the Navy

-

;

+:■* s >'Y r

"Sir: Pursuant to the provisions

sequent appropriations were made

120.6

1—'

;

——

1942

125.9

113.2.

materials—.

Fertilizers

July-12

137.3

189.9

—

Ago *

Ago

May 30

U. S. Steel

12,822

the N. & W.j

California, Idaho, Nevada, and Oregon.

io Speaker of
- on- July -1,

letter

a

Amateur

C. & O.; Virginian; K. & M.; B. C. & G.;
.and on-the B. & O. in Kanawha, Mason, and Clay counties.
tRest of State, Including
the Panhandle District" and Grant, Mineral, and Tucker counties.
[Includes Arizona,

•♦Alaska,

..

--iUL
U—.'

materials

Fertilizer

100.0

'

lished

1942

——

1.3
.3

tt

•>

1,238

-

in

the--House -Rayburn,
YY.+—Y. >

follows: I

ment,;, the: Maritime

Year

Month

104

11,425

12,663:
♦Includes operations on

1942

1

♦Indexes
nite

July 4

commodities—Y—

;

6.1

1941,

{Pennsylvania anthracite—

The President's advices, as con¬

-

-

■

tt

;

240

81

..

Y

Metals

21

Week

July 11

—...LY——

Miscellaneous

7.1

18
34

2,297

-•

copper

Department,-

Preceding

125.2

Textiles

38

•

2,302

tOther Western States——,

Products

8.2
15

-

started,

was

building fof ships -expedited
and the stockpiles of- wool and

the

cated

INDEX

Week

;

Oil——L__

Livestock /i——w-—

3,613

+/...

Oils———J

Grainsr

lig-

and

nite)

Utah

.

L

v

—

Farm

888

416

•'

'

:

Foods
Cottonseed

'

■Y''

25

18

•

■•f

PRICE

Latest

-

25.3

-

(bituminous)

Pennsylvania

rj YGroup

+

Cotton
'

all-commodity

—

.

Bears to the

48

'

...

the

'

■

183

'

COMMODITY

-

'

%

661

'"

.

4 •'.

•Y. '

in

Compiled by The Natiohal Fertilizer Association
;•
: [*1935-1939
100]

•

128

Fats and

an

'^(lignite)

24-

trend

upward

due to higher

was

416
.

121

•

22

the

* a

■

,.

.,

hemisphere, bases

account

of

continuance

1,243

r.„'

246

48 :
786

-

210"

>

Y 39

5

-

,

61

and

"The

'

42
r

,North;i

.

983

-

978

;

70
175
■

Y+' 604-

272

;

387

246

tt

Y 748

451

*.'•

46

' Y *

973

Y

i

1,102 Y

1125

'

,

..241 <■
.

(bituminous

Moptgna

Y1 •,:•■

142*

.

'

284

21

402

—

'*

368

1,151

**

3

80

1,212

avge.

111923

1937

386

Missouri

Kentucky—Western
•Maryland-—
Michigan

June 26

29,,

1940

1941

r:

393

—

Kansas -and

June

'

5

'78

———

IowaJ-i.

June

4

1

Illinois——'-Y...U--7-"----;!

June 28,

June 20,

>

1942

State-

.

ship¬

and river

The Associations

tne 1935-1939 average as 100.

on

prices for farm products, textiles, and foods.
In the farm product group price increases for cotton, grains, cattle,
and poultry offset decreases in hogs and sheep.
Trends in foodstuff
prices were mixed during the week, with declines in canned beans
and tomatoes, potatoes, and cottonseed oil offset by substantial in¬
creases in other important commodities; the result was a
small rise
in the food group average to the highest point in several years.
The
textile group continued to regain a former drop.
The only other
group average to change during the week was the miscellaneous
commodities index, which declined slightly.
During the week changes in the index were nearly evenly bal¬
anced, with 12 price series advancing and 11 declining; in the preced¬
ing week there were 15 advances and 7 declines; in the second pre¬
ceding week there were 14 advances and 8 declines. ' • >

.

ESTIMATED

ments

111.9, based

index

authorized
to

truck from

by

not

construction of cantonments

"the
and

approved
11, 1940,' and the Military
Appropriation Act, 1941, approved
June 13, 1940,- requiring that an

report also added:

Y Y

Loan '

.,

tional Fertilizer Association and

ago

3,497,300

3,046,700

Maritime

■:

Federal

week, according to the wholesale price index compiled by The Na¬

,

totals—1,188,300

..'•*Includes

•

4,022,200

and

naval1 service

coke—

By-product
United

121,400

171,700

138,000

slightly higher last

was

published on July 13. In the week
ended July 11, 1942 this index advanced fractionally to 128.9 from
128.8 in the preceding week.
A month ago it was 127.7, and a year

Beehive coke—
United

general level of commodity prices

,

Calendar Year to Date

July 5,

1942

1942

-(

♦Total, lncl. colliery fuel_
tCommercial

7

-

June 27,

§July 4,

anthracite-

Penn

ANTHRACITE

(In Net Tons)

.

Gommedity f 1
Y Price Index Advances: Fractionally

working y/eek.

4-day

a.

al¬

been

Agency.' Mr. .'Roosevelt asserted
that through the emergency fund

;

National Fertilizer Association

per

the
supply
Yearbook, 1939, page-702).-tRevised.' fAverage, based

: v Departments,

Navy

Commission!

tained

barrel of Oil and 13,10Q B.t.u. per pound -of coal.] Notethat most of
of' petroleum products Is not directly competitive -with coal. (Minerals

6,000,000 B.t.u.

had

agencies—War ;and

procured" and that J,in
subsequent •; aprpropriations were, made for the
~
continuation-of-these projects and:
7.*i
programs." -• -

143,336

156,751

160,039

funds

the

of

9.8

+

4

Coal

5,281

87%

many ." instances*

•

♦Crudfe petroleum-

equivalent of
weekly output

The President stated that

fort.";

6.2

0.1

+ 0.1

All commodities other than farm

227,625

9.3,

+ 0.1

*

8,135

t2,034

fueL._

7-5

6-6

1942

-

Manufactured products———

)

7-5

1942

*98.1

6-27

99.3

———

Hides and leather

July 3,
'

6-6

1942

without delay and thus
materially expedite our war ef¬
programs,

located to four
Farm

WITH

July 5,

July 4,

July 4, 1942, from—

*98.4

1942-

possible to initiate

Y' * Percentage changes to

.

•98.5

7-4

-January 1 to Date-

t June 27,

.

'"

1

••

.,

Commodity Groups—

(Data)'for Pennsylvania."anthracite from Weekly. Anthracite) and-Beehive Coke Report
of the
Bureau-of Mines;
data-for-crude petroleum• computed from weekly Y .'
„•
statistics,of American Petroleum Institute.)
-Week Ended-

,

.

All Commodities

COMPARABLE DATA ON FltODUCTlON OF CRUDE PETROLEUM (000 OMITTED)

♦

•

,

showed an- increase of 4,200 tons when compared with the
for the week ended June 27. -The quantity of coke from

output

"

'

duction of by product coke in the United States for.the week ended

July] 4

..

*

..

.




•

ifWilfiS l&

Volume

Steel

Output In Half-Year Sets Record
of steel

Production

castings in the first six months
peak of 42,570,247 net tons, more than 4%

above

production in the corresponding period of the record-breaking
1941, according to a report released on July 9 by the American

year

fc*K>( .'V. <£ ilS?-&&tMUn^h,M*»l,*lA«VUrJ4l,lM.i il'jviti 1 nlMVVj W_"l, Ujiiw^liJ^U^1-. il#U,ilJti>!"l,i'lhi

Iron and

the half-

year

the first
tons was

$teel Institute.
Open hearth steel production in
just ended amounted to ,37,889,027 tons, or 2% above
half of last year, and Bessemer steel production of 2,798,856
8% higher.
Production of electric furnace steel in the
months of 1942 totaled 1,882,364 tons, or almost half again
as was produced in the corresponding period of 1941.

first six
as much

Treasury Department made public on July 2, its monthly
report showing the face amount of public debt obligations issued
under the Second Liberty Bond Act (as
amended) outstanding on
June 30, 1942, totaled
$74,154,457,607, thus leaving the face amount
of obligations which may be issued
subject to the $125,000,000,000

in

June,

1,667,470 tons
1941.

against

as

week in June,

per

produced per week
per week in May and 1,583,392
*

,

;

•

;

,

;• •.;

<

,

PRODUCTION OP OPEN HEARTH, BESSEMER AND ELECTRIC STEEL INGOTS AND

STEEL FOR CASTINGS

v
-

...

v

•

—ah

■

Total

Period

Net tons

1 "

,

.

1-—

/'

»

^

■

/• ,'i

face amount

Outstanding

___

4.43

Savings (maturity
Depositary
Adjusted ' service

■

'

.

''

\

4.43

.

value )•*__

96.3

12.86

1,635,994

97.7

""

V.

-.

\

•

"

98.2

1,667,470

indebtedness

7,022,155

96.4

1,636,866

4.29

21,531,358 f

97.4

1,654,985

13.01

exports, and for cooperation
by all five countries in stabilising

prices.
agreement

obligations,

on

dom

1st

months

6

1941

..."

t

.

.

.

'

.

January

42,570,247;

—

v"

-. V

——

;

——

March

1st

:

Quarter—,
»•••'

<

i

—

*

..>•:{

c

———

: '

U—

•

June

2nd Quarter

,

1st

.

6

Face

———

months

1,562,608

4.43

96.5

1,557,589

4.00

99.6

1,608,127

4.43

6,922,352

96.8

6,230,354
7,124,003

20,276,709

97.7

', V y

,

,

_

6,754,179

97.6

7,044,565

98.5

6,792,751

98.1

JUNE .30, 1942

$50,845,542,393

-

UNITED STATES TREASURY,

yly

;

"

....

20,591,495

98.1

40,868,204

97.9

>

outstanding public debt obligations issued under
authority of the Second Liberty Bond Act, as amended__^____
Deduct, unearned discount on savings bonds (difference between current redemption .value and maturity value)

-

.

$74,154,457,607
•

public debt obligations, outstanding
riot subject to the statutory limitation:

"

;

2,294,720,^39

Bearing

25.87

(pre-war, etc,)__
obligations on which interest has ceased.
interest_____

no

*

A

'

>

Interest-bearing
Matured

1,579,753

'j.'.i.*

but

-

'

—__—;

August

_

September

——

___—

6,812,224

93.3

6,997,496

95.6

6,811,754

96.3

20,621,474

1,541,227

;

;■'*

4.43

1,591,531

4.28

95.1

1,570,562

13.13

61,489,678

96.9

1,576,658

7,236,068

98.9

1,633,424

6,960,885

98.2

1,622,584

7,150,315

97.9

Total

3rd

Quarter

___'

_____

months

9

:

"

October^-'—:
November
December

4th

_

—s,„—
_______

quarter

Total

of

_____———

—————

—

tBased

100%

——

-----

21,347,268

98.3

82,836,946

97.3

Reports by Companies which

on

,the

and

Bessemer

87.8%

of

*'

*

1,624,602

7

4.43

1

4.29

Jan.

1,

4.42

Approximate

13.14

.

52.14

1,588,741

1941 made 98.5% of the Open Hearth,
Electric Ingot and Steel for Castings

as

tons.

Percentages of capacity operated in first six months in 1941 are calculated on weekly
capacities of 1,430,102 net tons open hearth, 134,187 net tons Bessemer and 49,603
net
tons electric ingots and steel for castings, total
1,613,892 net tons; based on
annual capacities as of Jan. 1, 1941, as follows:. Open hearth 74,565,510 net tons,
Bessemer

Beginning July 1, 1941, the
percentages of capacity operated are calculated on weekly capacities of 1,459,132
net tons open hearth, 130,292 net tons Bessemer and 62,761 net tons electric ingots
and steel for castings, total 1,652,185 net tons; based on annual capacities as follows.
Open

6,996,520

net

tons,

76,079,130

hearth,

electric

net

tons,

2,586,320

net tons.

6,793,400

Bessemer

tons.

net

.

net

Electric

3,272,370
\■ Y

tons,
'

.

maturity' value.'. - Principal amount
(current
preliminary public debt statement, $10,188,188,461.'

to

The

for castings, total 1,698,622 net tons; based on annual capacities as
follows: Open hearth 78,107,260 net tons, Bessemer 6,721,400 net

1942

electric 3,737,510 net

tons,

New

York

pares

with

listed

on-

1,166 bond, issues aggregating $61,956,472,933 par value
Exchange on May 29 with a total market value of

the

In

the

following

table

listed

June

the

that

29

Loan

mortgage financing operations

on

of lenders throughout

curtailed sharply during May, a month during
which mortgage recording activity is expected to closely approach
the peak for the year.
The volume of non-farm mortgages of $20,000
or less filed for public record during May amounted to $350,000,000, a
reduction of $10,000,000 or 3% from April and was 20% below record¬
ings during May of last year.
This contra-seasonal April-to-May
decline of 3% compares unfavorably with the 10% average increase
shown between these months during the last three years.
country

were

The Bureau's "Mortgage Recording
"Real

estate

financing activity

Letter" further said:

V

;

has in recent years followed

S.

Government

(incl.

State, Cities, etc.)
U. S. companies:

N.

a

cerned

in

the

international

wheat trade.

as

agreement provides

soon

conditions

as

general

ity during the latter half of last year fell off rapidly as a result of
material shortages and priority allocations, the mortgage financing
market remained quite steady up to the year's end.
This stability
in part from the emphasis placed by mortgage lenders on
purchase loans and the increased efforts of some lending in¬
stitutions to dispose of owned real estate. Relatively small reductions

Average

Price

Market Value

draft convention of

office

44,095,078,402

35,507,482

99.62

35,418,372

equipment-

equipment

and

metals

Mining (excluding iron)
Paper and publishing_________
Petroleum

103,23

13,496,486

103.44

92.94

94.77

14,925,000

99.50

17,555,370
15,037,500

be submitted

for

consideration.

If

and

maximum

would

provide

the

draft

convention

.were

adopted the basic export quotas.
for Argentina,
Australia,. Can- "
ada and the United States would

be

25%,

19%,

40%

and

4,6%r

respectively,

of the estimated
volume of international trad£ in
wheat and flour in each quota
year, less reasonable allowances
for exports of other nations.

98.26
103.77

57,287,184

99.63

222,058,168

103.83

222,068,122

103.93

9,353,100
45,179,879

68.10

9,176,304

66.81

ering all

99.13

any

56.94

44,327,159
87,896,329

99.16

90,141,762

:

55.97
100.09
102.42

6,231,242,478

60.59

companies oper. abroad
Miscellaneous businesses

formula has been established

commodity

manufactured
The

in

Associated

of

produced

or

the

Press

territory.
July 2

on

said:

;

.

77.26

11,127,840
17,130,120

97.00

wholesale and distributors' maxi¬

61.82

mum

547,358,766
26,649,130

99.86

direct

98.50

63.82
100.01

26,266,730

98.95

145,815,300

104.40

3,276,704,089

106.31

;yv.

99,766,793

-

99.11

1,193,272,890

106.34

57.73

58.22

84,955,359
104,511,667

102.47

31,265,000

102.51

87,704,945

59.59

105,852.556

31,252,500

"Under

57.48

cost,

which

the

77.14

1,197,259,719

53.47

701,415,751

81.05

13,106,364,300
1,208,511,098
702,119,145

+

76.66
54.16
81.25

59,112,072,945

95.50

must

be

retail^

based

on

plus

the
mark-up
seller included ip: his

involved between Nov. 7 and Dec.

6,*194i;

*"■ 'V- *'

■

"The

OPA

•

,

Administrator

charge of territories and

in

posses¬

empowered to make < any

adjustments necessary after appli¬
cation

prices
95.64

formula,

highest price for the commodity

sions is
13,225,442,340

the

prices

100.39

104.41

.

not

cov¬

deliveries

99.33

17,684,317

59,257,509,674

and

11,518,208

105.91
3,259,664,000
97.82
100,243,275 V
106.49
1,194,913,134 "

,

sales

72,984,463

"

government-

transportation
special price-fixing

a

77.71

,

—

difficulties,

99.08

548.159,660

139,565,967

___.

tion and because of

74,470,748

.

July 2 that,

on

in view of Alaska's relative isola¬

36,318,750

;

.

50.828,992

utilities___

Price Administrator Leon Hen¬
derson announced

99.89

«

(operating).
electric (holding)

OPA Alaska Price Formula

98.73

588,180,881

S.

Foreign

.

also

inter-,
tcy.Vfix

lowering of barriers ag&inst
imports and control of exports.

102.71

11,299,920

electric

Gas and

It

-

an

control

for

75,179,563

61.57

Textiles

Miscellaneous

wheat

minimum

prices."

57,418,613

11,727,660

Communications

by

up

Washington wheat meeting will

35,950,000

99.90

Tobacco
.

100.25

101.78

Steel, iron and coke

U.

13,469,068
17,215,735

50,732,342

Ship building and operating...
Shipping services

and

99.37

-

586,345,656

Retail merchandising
Rubber

Gas

105.72

6,364,830,543

;

Railroad

Utilities:

interna¬

an

agreement drawn

$

105.82

Automobile

and

wheat

meeting the

Price

$

44,133,391,864

Building
Business

convene

international
At this

that

warrant,

Y.

:

Amusements

'

construction. In fact, trends in
mortgage financing are usually very sensitive to changes in the
volume of new residential building.
Even though construction activ¬

June 30, 1942——

Market Value

$
U.

a

similar seasonal pattern to residential

classified

Average

Machinery

announced

are

May 29, 1942

Group—

Land and realty

Administration

Bank

bonds

by govern¬
mental and industrial groups with the
aggregate market value and
average price for each:
-v-1

Food

Mortgage Financing Down
Home

first step toward

as a

comprehensive wheat agree¬
ment between all countries con¬

basic

Exchange

$59,257,509,674.

Electrical

Federal

value),

Exchange announced on July 9 that as
of the close of business June 30, there were
1,152 bond issues ag¬
gregating $61,899,239,025 par value listed on the New York Stock
Exchange with a total market value of $59,112,072,945.
This com¬

Financial

The

redemption

Stock

Chemical

Y

$72,422,445,116

Market Value Of Bonds On N. Y, Stock

Note—1942 percentages of capacity operated are calculated on weekly capacities of
1,498,029 net tons open hearth, 128,911 net tons Bessemer and 71,682 net tons electric

ingots and steel

designed

the conclusion, after the
war, of

national

Production.

of

is

This would, call for

in

the

1942—

39.00

1,617,718

.

be determined later,

The memorandum agreement,
approved by the five countries,

tional

debt outstanding as of June 30,

gross

United

50,000,000

-r

conference)

355,727,288

4.42

1,579,570

according

'

y

a

'10,990,680

562,708,148

July

the

provide

These

the United States shall

.

$195,990,180

—

and

to

25,000,000

flour to the

or

,

-

$71,859,736,968

other

furnish

basis to be worked out by the

The
Add

4 29
13.01

V

1,582,744

;

•

Total face amount of

4.43

1,590,195

1,583,392

,

is

4.29

1,574,401
-

pool,

States

to

obligations issuable under above authority

■„

of

governments involved.
Argen¬
tina's exact quota apparently is

87,309,050

RECONCILEMENT WITH DAILY STATEMENT OF THE

12.86

1,576,727

of

amount

relief

a

2,508,298,000

which interest has ceased__

Associated

advices;

nations,c >with
Argentina, would furnish addi¬
tional supplies, as required, on

$51,375,061,207

'

p-i——

>

25.87

1,645,545

c '•

•

April
May

96.9

'

,

February

,

from

to

are

bushels.

74,154,457,607
i

is

,

,

regarding if the

Canada and the United King¬

;

.;

$74,067,148,557
Quarter

.

following

Press; Washington
July i:

22,692,087,350

Matured
2nd

+

a

and

w

4.43

,

post-war plan relating
by the four export¬
ing countries of production, stocks

$13,955,776,350
6,228,013,000

(maturity value)

which

June;27,'is

on

to the control

Y

;—

a

situation

agreement,

bushels of wheat

•

,

•

establish

to

the international

as

part of

728,665,857

..

.

—

of

Treasury bills

4.29

1,660,213

„

notes

;

v

$38,084,533,250
12,482,909,100
78,953,000

_

'

Treasury

1

$125,000,000,000

-

•

"■

time__

one

*

"

June

4.00

1,630,264

*

?'.

,

„

1,608,829

any

c

in month

7,386,890 '

_——

outstanding at

—_

soon

The

1942:

r

1,608,335
"

pro¬

agreed

wheat pool of 100,000,000 bdshels
for relief in war-stricken areas as

.

Bonds—

(net tons)

21,038,889
7,122,313

May

of June 30,

as

Interest-bearing;

Certificates

1st Quarter———-~

that may be.

capacity

96.0

amended,

as

1

Treasury

98.2

Liberty Bond Act,

following table shows the face amount of obligations out¬
standing and the. face amount which can still be. issued under this

of weeirs

'

time."

one

all companies

94.7

6,521,056

Second

The

'

1

any

the

of

7,392,911

———

>t

of

Number

7,124,922

,v

—

March—______

21

standing at

*

February

debt outstanding as of June 30 was $72,422,445,116.
following is the Treasury's report for June 30:
gross

production,

t

,

1942 t '

.

January,-.

total

Section

weekly

Percent

have

effective

Total

Calculated

companies—

\,

.

"

*

tina

became

limitation:

Estimated Production

.

Department > an¬
Washington on July 1
that the United States, Great Brit¬
ain, Canada, Australia and Argen¬

added

The

:

State

The

vides that the face amount of obligations issued under
authority of
that Act, "shall not exceed in the aggregate
$125,000,000,000 out¬

of 1,636,866 tons of steel was

The

permits.

the

Up

nounced in

statutory debt limitation at $50,845,542,393.
In another table in the
report, the Treasury indicates that from the total face amount of
outstanding public debt obligations ($74,154,457,607) should be de¬
ducted $2,294,720,639. (the unearned discount on
savings bonds),
reducing the total to $71,859,736,968 and to this figure should be

i
tons

i^^'ik.1.^

War Relief Wheat Pool

The

$562,708,148 (the other public debt obligations outstanding)
which, however, are not subject to the statutory limitation.
Thus,

average

ii,V*A ^(V,''-&W

Five Nations Set

steel production in the month of June was 7,022,155 tons,
equivalent to 96.4% of capacity.
By comparison, production in
May amounted to 7,386,890 tons, 98.2% of capacity.; In June a year
ago,
6,792,751 tons of steel were produced, equivalent to 98.1%
of what was then the industry's capacity. • :
• •>
' \ 1-

j * -Total

An

'•■rHtyV'-

V'ii

197

Statutory Debt Limit As of June 30, 1942

ingots and

of 1942 established a new.

I*

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4090

156

>»^~ fXt& 3»V$» "V''"! liwl bit" fltt?'htf't'4Vl'f(aAv»JifW»lr,lJi'lfl|lHfii 'Sim Aj/t'ii^laiitiWi &Bn&

of
on

this

formula

fix

and

items which the formula

fails to cover."

resulted

The

home

in

loans

for

the

of remodeling and reconditioning homes,

purpose

particularly in critical war production areas, coupled with increased
average size loans also contributed towards maintaining a relatively
high volume mortgage financing despite sharply curtailed construc¬
tion activity."
„

,

_

Cumulative Recordings

Type of
Lender—

May, 1942
% Chng. May, 1941
% Chng.
Volume
% of from Volume % of May,-41(000)
Total April
(000)
Total May, 42

Insurance

Cos.

31,870

9 1

—7.8

35,635

Bk.

Cos

77,563

22 2

—5.5

107,151

33.0 —24.9
8.2 —10.8
24.6 —27.6

15,904

4.5

+3.9

19,705

4.5 —19.3

S.

& L.
&

Assns.—$107,937

Tr.

Mutual Sav. Bks,

Individuals

Others
Total

63,807

53,196
$350,187

30.8 —0.6 $143,770

+1.8

69,836

15.2 —6.4

59,864

18 2

100.0 —2.7 $435,961




16.0 — 8.6
13.7 —11.1

January-May
(000>
'*
1942
1941
Chng.
$494,139
$567,870 —13.0
,

158,504
385,583
67,304
299,252
258,446

147,197 + 7.7
444,908 —13.3
75,202 —10.5
301,523 — 0.8
250,949 + 3.0

100.0 —19.7 $1,663,228 $1,787,649

—

7.0

son

following table, compiled by

of the

listed

on

total market value

the

and

us,

gives

a

two-year compari¬

the total average price of bonds

Average
1940—

Market Value
$

Price

Average
1941—

$

Market Value

Price

$

$

May

31.

46,936,861,020

87.87

June 30

June

29

53,237,234,699

94.80

47,665,777,410

90.14

July

31

53,259,696,637

95.04

July

31___

48,601,638,211

90.86

Aug.

30

53,216,867,646

94.86

49,238,728,732
49,643,200,867

91.33

Sept. 30

92.08

Oct.

31

53,418,055,935
55,106,635,894

95.25

50,438,409,964

92.84

Nov.

29

50,755,887,399

93.58

Dec.

31

50,831,283,315

93.84

Aug. 31

Sept. 30
Oct.

31

Nov.

30

Dec.

31—

:

1941—

94.74

Clyde B. Aitchison, member of
the Interstate Commerce Commis¬

sion,

was

serve

as

on

June

Chairman

29
of

elected

the

to

Com¬

mission for the remainder of 1942.
Mr.

Aitchison, who is the qldest
of the ICC, having >een

54,812,793,945
55,033,616,312

94.80

member

94,50

appointed by President Wilson 25

1942—

Jan.

31

56,261,398,371

95.24

Jan.

31

50,374,446,095

93.05

Feb.

28__

57,584,410,504

95.13

Feb.

28

50,277,456,796
52,252,053,607

92.72

Mar.

31

58,140,382,211

95.97

Mar. 31

Aitchison Heads ICG

Exchange:

93.73

Apr.

30

57.923,553,616

95.63

Apr.

30

52,518,036,554

94.32

May

29

59,257.509,674

95.64

May

30

52,321,710,056

94.22

June 30

59,112,072,945

95.50

years ago, has
been serving as
Acting Chairman since the begin¬
ning of the year when Joseph ,B.
,

Eastman was made Director of the
Office of Defense Transportation.

Lumber Movement—Week

In War Effort

-'O

t

production during the
holiday week ended July 4, 1942,
was
22% less than the previous

Daily Average Crude Oil Production For Week
Ended July 4,1942, Dropped 422,300 Barrets

Engineering Construction Hits New Peak

Ended July 4, 1942
Lumber

week, shipments were 17% less,
new business, 15% less, according

reports to the National Lumber
Association from

to

Manufacturers

regional associations covering the
operations of representative hard¬
ments

Ship¬

softwood mills.

and

wood

produc¬

above

19%

were

tion; new orders 19%

above pro¬

Compared with the cor¬

duction.

responding week of 1941, produc¬
tion was 14% greater, shipments,

and new business
8% greater.
The industry stood
at 145%
of the average of pro¬
14%

greater,

duction in the corresponding week

1935-39

of

167%

and

1935-39

of

shipments

in

average

the

same

Geared for war, the engineering

construction industry piled up

volume of $4,905,294,000 for the first half of 1942.
This
tremendous total eclipsed the $2,841,403,000 reported by "Engineer¬
the

News-Record" on July 1 for the opening six months of last
year by 73%, and surpassed all previous annual volumes, with the
single exception of 1941.
In the defense construction era of 1941,
however, it required nine months for the volume to reach the cur¬
rent year's half-time total.
The report added:
In
line
with the war effort,
$4,234,920,000, or 86% of the
total, was for Federal construction, just about three times the Gov¬
ernment-financed total for the opening half of last year.
Sharp
curtailment of non-essential construction had the effect of lower¬
ing state and municipal work to $328,966,000, a drop of 51V2% from
a year ago.
Despite the decrease in state and municipal construc¬
tion, the public total rose to $4,563,886,000, a new record high 117%
above the value reported for the six-month period last year.
Private construction, feeling the pinch of priorities and the WPB
stop order on non-war construction, totaled $341,408,000 for the
six months of 1942, a decline of 53V2% from the volume at the halfing

time last year.

1942

are:

production

the

for

Construction

Total

first 26 weeks of 1942 was 2% be¬

Private

low corresponding weeks of

Public

shipments
shipments,

7%

were

business Was 25%

above pro¬

duction, and shipments were 15%
above production.

Federal

stocks

gross

unfilled

of

68%

was

orders to

July 4,

on

1942, compared with 46% a year
Unfilled orders were 16%
greater than a year ago; gross
ago.

stocks were 22%
Softwoods

Record

less.
Hardwoods

and

for

the

ended July 4, 1942, for the cor¬
responding week a year ago, and
for the previous week, follows in

AND

1942

'+•

.

.

1941

1942

'

Week.

•%,,
Mills,

'

Previous

Week

Wk. (rev.)

437

437

474

Production

216,219

189,004

276,916

Shipments

258,035

227,336

309,188

Orders

257,674

237,712

301,606

-

Softwoods

Hardwoods

1942 Week

1942 Week

Wills

355

Production-

94

Shipments-

206,208—100%
244,688
119

13,347

133

Orders,-

245,733

11,941

119

119

10,011—100%

Pay On Porta Alegre 7l/2s
Ladenburg,

Thalmann

&

Co.,

New York, as special agent, is no¬

tifying holders of City of Porto
Alegre (United States of Brazil)
40-year 7 lk % sinking fund gold

bonds, external loan of 1925, that
have

funds

been

deposited with

it, sufficient to make a payment,
in lawful currency of the United
of America, of 13.975% of
amount of the coupons

States
the

face

due Jan. 1,
1940, amounting to
$5.24 1/16 for each $37.50 coupon
and
$2,62 1/32 for each
$18.75
coupon.
It is further stated:

-"Pursuant
the

the

to

Presidential

provisions of

Decree

of

the

the

be

bonds

accepted

such

and

in

coupons

of

the

claims

for interest represented thereby.
"No present

provision, the

no¬

tice states, has been made for the
coupons due Jan. 1, 1932 to Jan. 1,
1934 inclusive, but they should be

retained for future adjustment."

of

an

of

on

Commerce

Jones

June 30 the signing

agreement

Metals Reserve

Co.

between
and

the

Bolivian

producers increasing the quan¬
tity of tin ores and concentrates
which may be delivered to Metals

Reserve

Co.

during

the

period

ending June 30, 1943. The agree¬
for increasing

ment also provides

the

price of the tin content of the

material

delivered

during that
period to 60 cents per pound f.o.b.
Chilean and Peruvian ports.




tforth Texas

Previous

1942

Week

433,000

433,000

1376,050

283,200

' 283,200

T260,100

Hast

Texas

-

__7 1,214,400 tl,284,711

__

-__-7

Louisiana

North

Coastal Louisiana
Total

Louisiana

Arkansas

-

138,550

-

•

__

—

Mississippi
Illinois ___—i

319,600 '

337,600

433,050

12,000

272,950

78,500

700,823

84,050

146,350

128,450

195,650
■

76,300

309,500

300,600

65,150

134,150

176,850

*

171,850

-108,950

234,900

236,200

922,800

—401,500

1,198,600

1,220,700

91,350

650

89,750

218,250

1,750

219,450

237,950

303,600

1,100

309,200

315,000

400

74,100

450

83,100

33,850

278,300

3,400

340,350

22,000

118,750

100

112,600

99,700

1,250

98,650

90,450

Michigan

66,950

39,800

91,350

86,750

Indiana

commercial

111.

inch

(not

and

Ind)

310

23,100

totals.

Colorado

7,700

of gain or loss compared with the initial six months

% Gain

Mexico

New

of 1941 are:

'%

^

1942

1941%%

Total East of Calif.

$57,339,000
53,274,000
33,550,000
199,360,000
228,576,000
3,197,373,000
142,581,000
168,317,000
824,924,000

$38,171,000
52,473,000
66,324,000
Bridges
101,102,000
Earthwork, Drainage
Streets and Roads
302,799,000
Public Buildings
1,163,928,000
Industrial Buildings
303,957,000
Commercial Buildings --—L
298,502,000
Unclassified
514,147,000
————

-----—

—_———

—

50

+

2

+

*6. P.

-

i

-

-

,

i

—402,300

617,300
Ui,

State

19,500

6,650
62,450

111,350

20,000

—

2,961,000
648,450

3,034,600
623,600

--riii-

allowables

4,000

■

-

represent

».

ir.

3,658,200

3,609,450

—422,300

3,297,150
and

21,950

1,100

2,679,850
I,--

-

3,842,800

..

recommendations

C.

;
§739,500

739,500 •

-—

•

21,250

the production

of

all

petroleum liquids, including crude oil, condensate and natural gas derivatives recovered
from

condensate

oil,

that

97

wells

certain

fields.
Past records of production Indicate, however,
be incapable of producing the allowables granted, or may be

and

may

gas

production would, under such conditions,
The Bureau of Mines reported the daily average,
April, 1942, as follows:
Oklahoma, 27,500; Kansas,
4,800; Texas, 90,700; Louisiana, 15,300; Arkansas, 2,600; New Mexico, 5,300; California,
limited

-24

by pipeline proration.

natural gasoline

production of

-53

Actual State

to be less than the allowables.

prove

+174

in

•"'/

40,100; other States, 22,200..

-44
+

fc

,

-

450

6,350
65,150

89,500

3,103,300

?
:

1'

Total United States

-49

<

—-

—

Loss

+

89,500

■

California
.

or

72,550

73,800

T83.950

Montana

age

77,050

49,900

100

\'i':..■ V'-'-V'

218,250

87,500

77,400

277,550
19,450

Eastern

in each class of work, and their percent¬

4,850

3,700
90,550

6,850

1,400

volumes

241,150

27,500

95,900

-

'

304,100

_________

%.

1941

374,650

-19,750

74,300
98,450

Texas'

Total Texas

July 5

6,750
...

-

217,600

,

Southtvest Texas
Coastal

—

142,550
*

Texas__
-

Ended

1942

+

79,500

._

Central

Week

July 4

t3.750

4,100

____

iast

-

'

~

Vest Texas

Ended

July 4

j.

'anhandle Texas

From

Ended

92,250
21,900

"

.

.

.

;

.

TOkla., Kans., Neb., Miss., Ind. figures are for week ended 7 a. m. July 1.

60
.

TThls

..:

is

the net

basic 31-day

allowable

as

of July

1.

In the area

..

..

outside East

July 4, 5, 11; 12, 13, 19, 25, 26, 29, 30 and 31; in
Geographically, every section of the country participated in the East Texas for
July 6, 13 and 20, in addition to the aforementioned days.
gain over the opening six-month period in 1941> and five of the six
§ Recommendation of Conservation Committee of California Oil Producers.
sections are at their highest peaks in history.
The greatest increase
'%
CRUDE RUNS TO STILLS; PRODUCTION OF GASOLINE; STOCKS OF
was recorded in the War Western states, 144% over a year ago.
West
FINISHED AND UNFINISHED GASOLINE AND GAS AND FUEL
*
of Mississippi states were up 120%; Middle West, 78%; South, 69%;
OIL, WEEK ENDED JULY 4, 1942
New England, 25%; and Middle Atlantic, 6%.
The latter, though not
i
11
1
'
•
'
"'
achieving a new peak, was the highest since 1930%
(Figures In Thousands of Barrels of 42 Gallons Each)
•
Geographical distribution of the engineering construction vol¬
Figures In this section include reported totals
umes for the opening six months of 1941 and 1942 are:
plus an estimate of unreported amounts and are'
shutdowns

Texas

1942

1941

New England
Middle Atlantic
South

——$164,385,000

-

—-

,

—

—u————

Middle

—

West

West of Mississippi-——————

West

Far

—

-

—

647,070,000
611,823,000
536,773,000

519,705,000
361,647,000

Crude

tial

!

Rate

District—

1

Dally

% Re-

Gulf,

and

**

ArVoncflC

Inland TexasJ_

Okla., Kansas, Mo.

Rocky Mountain

157
739
366
95

65.3
90.2
94.3
87.6
68.8

90.9

639

81.2

4,684

86.9

3,551

75.8

4,684

86.9

3,581

76.5

-174
784
418
138

111., Ky

Ind.,

-s

Tot.

S.

U.

B.

of

84.5
84.9
81.1
50.7

.

%

M.

basis July 4, 1942-i
U. S.
B. of M.

!

•

787

California

1,555

89.7

2,383

Appalachian

Tot.

Coffee Import Quotas
The Bureau of Customs announced

on

for con¬

under the quotas for the 12 months commencing Oct. 1,
1941, provided for in the Inter-American Coffee Agreement, pro¬
claimed by the President on April 15, 1941, as follows:
June

Quota

Quantity

'(Pounds)

Country of Production—
Signatory Countries—

1,401,426,521

-

Cuba

475,086,450

__

Rica

30,144,642

-

12,109,603

______

Dominican

18,098,664

Republic

Ecuador

22,634,408

El Salvador

___

Guatemala

96,657,909
80,715,477
41,436,647

Haiti

Honduras

3,287,588

_

74,966,100

Nicaragua

32,078,385

_____

Peru

_

Venezuela

3,767,088

27,

Canada

As of (Date)
June 27, 1942
—*
June 27, 1942__—__
(Import quota filled)
June 27, 1942
——
(Import quota filled)
tJuly 4, 1942_
June 27, 1942

(Import quota filled)
tJuly 4, 1942—
tJuly 4, 1942_____
June 27, 1942—
June 27, 1942
TJuly 4, 1942
(Import quota filled)

5,542,283

Kingdom
its

Aden,

of

the

—

Netherlands

Yemen, and

17,674,322
19,669,574

Saudi

Arabia_

3,872,909

(Import quota filled)
June 27, 1942
June 27, 1942

—

'Quotas revised effective Feb. .26,

Commercial Paper

Fuel'
Oil

40,845
15,534
2,796 %
574
16,634
3,745
7,872
1,404
2,347 .
340
16,520

11,923

16,518
,
536
3,282
1,544
545
54,473

.

10,959

f 87,014

33,520

76,903,

10,713

§88,396

32,851

77,304

12,455

88,709

39,008

90,935

This total compared with $354,200,000 outstanding on May
$299,000,000 on June 30, 1942.
Following are the totals for the last two years:
#

1942—
June

30

May

29

-

30

Mar,

31

Feb

28

Jan.

31

—

^

Dec.

31_

1941_

315,209,000

June

354,200,000
373,100,000

May

Nov.

29

Oct.

31

Apr.

384,300,000
388,400,000
380,600,000

Mar.

374,500,000
387,100,000
377,700,000

Dec.

Feb.
Jan.

1940

-

-

Sept.

30

-

12,276,800

Aug.

30

-

1942.

July

(Import quota filled)
fPef telegraphic reports.

sidual

Fuels

Outstanding

July 10.

tOll-

13,107,191
875,809

285
1,771

of Re-

Oil and

Open market paper outstanding on June 30 amounted to $315,200,000 according to reports received by the Federal Reserve Bank
of New York from commercial paper dealers, the bank announced on

Apr.

Other countries not signatories of
the
Inter-American
Coffee

Agreement

company.

29 and with

and

possessions

terminals,

Appalachian

39,357,942
2,513,687
34-,598,080
21,002,030
3,110,901

4,610
V 463
2,553
1,277

of Gas

Distillate

79,450,000 barrels; Unfinished, 7,564,000 barrels.
J At refineries, at
in transit and in pipe lines.
SRevised downward 215,000 barrels In
district due to correction In figures previously repotted by a certain

tFinished,
bulk:

5,642,283

18,412,238
75,493,420

and Un-

'At the request of the Office of the Petroleum Coordinator.

;

(Pounds)
837,280,732

except Aden and
—

3,766

5,642,283

1942

38,094,430

—

Empire,

Mines

1941__

Bur.

for Consumption

Non-Signatory Countries—
British

1942

of

S.

July 8 preliminary fig¬

sumption

27,

basis July .5,

U.

showing the quantities of coffee authorized for entry

ures

June

basis

Finished

Includ.

tStocks tStocks

porting Average erated Blended Gasoline

Louisi¬
North

Gulf,

ana

T.niiictflRn

Stocks

% Op- Natural finished

•Combln'd: East Coast,
Texas

at Re-

fineries

Runs to Stills

Poten¬

Capital

half of 1942, $6,886,294,000, topped the volume for the corresponding period in 1941 by 106%.
Federal appropriations for war construction accounted for $6,538,955,000, or 93% of the new financing, and were the highest ever re¬
ported.
Non-federal construction capital amounted to $347,339,000
and was divided as follows: corporate securities, $149,459,000; state
and municipal bond sales, $150,461,000; and RFC loans, $47,419,000.

1

Gasoline

Production

Daily Refining
Capacity

.

Construction

New

thereiore on a Bureau of Mines basis

957,387,000

1,141,046,000
881,675,000

for

\

.

.

ordered

were

$205,948,000
687,996,000
1,031,242,000

New construction financing for the first

Mexico

tin

Nebraska

4 Weeks

ables

July
it

Change

Beginning
»
July 1

_i__„
j.:

Week

67,100

Costa

Secretary

—Actual Production—

Allow-

Recommen-

BARRELS)

(FIGURES IN

PRODUCTION

OIL

'O.P.C.

Xansas "i_,

v.,

•
CRUDE

AVERAGE

84,800

Colombia

announced

DAILY

10,959,000 barrels during the week ended

■

96,800

Brazil

U. S.-Bolivia Tin Pact

is estimated to have been

July 4, 1942.'

Oklahoma

in pipe lines as of

Wyomlng

Construction

of

week, 87,014,000 barrels of finished and unfinished
The total amount of gasoline produced by all companies

buildings, however, were unable to overcome the' handicaps im¬
posed by priorities and stop-orders, and fell below their last year's

must
payment of

full

end of that

though setting no new

and sewerage construction gained 2%,
Highways, ,bridges,
and private- industrial and

coupons,

and

at refineries, bulk terminals, in transit and

the

gasoline.

total was for erection

total,

United States of Brazil, such pay¬
ment, if accepted by the holders
of

4,563,886,000
328,966,000

86.9%

owning

companies

refining

age

dations

marks, were above a year ago as a result of installation of new fa¬
cilities in military camps and cantonments, and in strategic indus¬
trial areas.
Waterworks volume jumped 50% over the 1941 first
half

reported by the Institute follow:

as

from

ing the week ended July 4, 1942, and that all companies had in stor¬

4,234,920,000

;tv 1,427,953,000

and sewerage construction,

details

received

the 4,684,000-barrel estimated daily potential refining capacity of
the United States, indicate that-the industry as a whole ran to stills;
on a Bureau of Mines' basis, 3,551,000 barrels of crude oil daily dur*-

exceeded last year's
high. Unclassified
rose to new peaks,
and the latter 97%
higher than in the period last year.:■.}%...../■%,
Waterworks

as
Further

Reports

buildings.
This volume, $3,197,373,000,
mark by 174%, and established a new all-time
construction, and earthwork and drainage also
the former 60% above its 1941 six-months total,

Sewerage

HARDWOODS

%

—————

———.

Waterworks

thousand board feet:
SOFTWOODS

Municipal

recommended by the Office of Petroleum Coor¬

1942,

July,

dinator.

of public

week

current

—

—

Almost two-thirds of the 1942 construction

Supply and Demand Comparisons
The ratio

Construction

Construction
and

State

orders

For the 26 weeks of 1942,

period.
new

the

above

new
orders 8%
of
the
1941

and

the

above

1941;

of

preceding

;, ■

$4,905,294,000
341,408,000

—$2,841,403,000
734,418,000
2,106,985,000
679,032,000

.

a decrease of 422,300 barrels when compared
week, and 361,050 barrels per day less' than
the output during the week ended July 5, 1941.
The current figure
was also 545,650 barrels lower than the daily average for the month

the

with

1942

1941

dail^

the

3,297,150 barrels,

was

'State

•.

•

Year-to*Date Comparisons

that

estimates

Institute

crude oil production for the week ended July 4; 1942

and

1941

in

periods

six-month

the

Petroleum

American

average gross

*

.

for

volumes

Construction

Reported

The

huge

week;:

t

Thursday, July 16, 1942

THE COMMERCIAL & FINANCIAL CHRONICLE

198

-

370,500,000
353,900,000
329,900,000

Nov.

Oct.

Sept.
Aug.

July

31*.~—
28

31

299,000,000
295,000,000

274,600,000
263,300,000
240,700,000,

232,400,000

30

217,900,000
231,800,000

31

252,400,000

30

31_.

250,700,000
244.700.000

31

232,400,000

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4090

156

199

Total Loads

Revenue

Freight Gar Loadings During Week
Ended July 4,1942, Totaled 753,855 Oars

Loading of revenue freight for the week ended July 4 totaled
753,855 cars, the Association of American Railroads announced on
July 9.
This was an increase above the corresponding week in

Railroads
Southern District—

Atl.

620

881

& W.

P.—W.

R.

R.

Atlanta,

Birmingham

Atlantic

Coast

of

Ala—u—

& Coast

Line

—

Georgia.,.:.,

Charleston &

of

Illinois Central System—.—________
Louisville & Nashville—.

29,031

Gulf,

increase of 26,492

below the preceding week, but an

cars

1,726

alone,

grain

loading for

grain products

and

stock loading

to 9,508

amounted

below the preceding week, but an

cars

the week

of July

4

cars,

a

decrease of

increase of 1,538

1,168
above

cars

Coke loading
the

below

a

decrease

a

decrease of 1,545
of 60 cars below

Northern-

Air

System...

Chicago
Chicago,
Chicago,
Juluth,

Great

Western

Milw.,

St. P.

cars

Western——..—+___'

1940

740,359

637,169

20,591,091

17,551,704

-

The following table is a summary of the freight carloadings for

the separate railroads and systems for the week ended July 4,

1942.
During this period 71 roads showed increases when compared with

LOADED AND

RECEIVED

CARS)—WEEK

FROM

ENDED

555

425

4,301

43

1,504

2,144

Minn., St. Paul & S. S.

6,385

7,028

6,077

2,772

3,197

Northern

Paciflc__..C^.-*-—

8,658

10,191

7,662

4,478

4,853

•Jpokane

International

144

275

208

554

451

2,003

1,987

1,185

2,837

2,073

125,439

126,994

107,013

60,160

59,65(

>

.

■

Western

7V".

Denver

Salt. Lake.

&

f ort Worth & Denver

Mackinac—

&

Toledo

Line

1940

.1941

345

•'

503

1941

1942

.'

473

1,355

1,500

,

256

252

13,935

12,853

1,320

1,225

1,096

2,033

-27

7

11

1,243

,1,113

2,406

2,760

4,661

11,134

6,622

6,391

6,965

10,031

-

231

408

1,359

2,320

255

321

:

402

:

.

771
71

.

2,241

.

477

109

81

13,179

9,820

9,76.
95t

11,074

2,552

2,566

1,705

848

11,459

13,032

12,434

10,723

2,144

2,450

2,075

3,970

687

573

508

1.790

2,598

1,960

1,657

5,483

435

387

186

15

3i

1,499

1,232

89:

2,93f

....—.———'

Grand

Trunk

Western—

11,280

13,691

'3,953

5,563

Lehigh & Hudson River.—.—
Lehigh & New England
Lehigh Valley—........—
—

——

{

—.

Pacific..

Pelcin

1,112

1,423

1,916

1,472

2,041

1,912

1,065

837

445

'V/1 554

2,006

1,729
653

1,543

.101

lit

632

508

42::

968

Union—.—.

——;

8

14

8

0

28,825

25,292

19,422

9,828

6,831

275

232

197

1,555

1,567

: 12,866

14,049

13,344

13,261

10,33fc

(Pacific).————

Utah

'

V

458

187

169

45

1,608

1,399

2,635

114,412

114,456

98,983

79,175

Pacific—

Total

—

(

1,619

——————— ...I.-

Western

■:

;

2,812

,

District—

2,54i
66.14C

Coast

v:: 229 :

;

Lines————4—

Maine

Central.—i—

—

8,236

St.

Montour
New
N.

—

Central

York

120

Texas

&

Texas

&/Pacific—L

Wichita Falls & Southern.

New

18y

l,80w

1,832

7,282

5,964

6,249

13,501

9,601

"Previous

and

302

■

435

257

4,363

3,704

3,84s.

14,692

16,397

11.17C

4,267

108 !

>

409

*2,537

2,490

Note—-Previous

304

454

N.

2,114

2,468

2,356

5,208

4.296

." 2,067

40

28

36,659

52,532

47,074

9,788

7,491

:V, 18,969

782

931

5,868

4,563

16,645

437

260

1,351

2,268

.

240

iii

spite

of

7,806

5,52£

•2,752

2,321

;.Y: 1,773

6,956

New

3,37f

Yorkers

4,965

4,05(

they

6,441

4,925

strong.

6,541

4,986

3,242

129

109

11

22

21

51,482

43,994

58,934

Y

'YY

35 Y

lit

29

,

r

4t

-

-

•

•

-

""Tr"'

44,245

•

.6,298

9,379

5,920

4,633

6,167

,6,608

762

32

316

301

247

392

726

742

3,596

2,504

488

'579

1,071

1,155

4,735

5,730

11,283

5,061

4,710
4,343

.13,427

5,744

4,944

4.340

312
782

1

353

..

,

The
nounced
clined

on

in

Governors

of

was

Federal

146,126 '

126,860

223,414

further, in

June

and

the

391

1,036

1,064

33.759

34,412

28,784

24,108

22,710

6,592

6,144

5,621

2,665

2,441

Buffalo

Creek

Cambria &
Central R.

&

R.

—

of New Jersey.—......

;

—

Cumberland

&

;
•V

Pennsylvania..^

Ligonier Valley...

—.

Long Island

—

Penn-Reading
Pennsylvania

Reading

Seashore Lines
System—

—

Co.
(Pittsburgh)

Western

151

329

2

4

1,516

1,149

1,176

10

31

5,981 V

5,552

5,157

19,264

14,713

'■

Cornwall '

Union

230

Gauley———.:—

Indiana

....

—.

Maryland

659

594

487

55

60

215

214

191

16

25

112

69

60

46

52

601

754

596

3,715

3,363

1.426

1,510

942

2.439

1,651

74,155

58,056

60,625

54,088

12,693

10,945

12,193

26,480

22,895

21,110

19,587

16,956

7,572

6,391

3,152

3,124

2,688

11,899

8,485

76,978

seasonal

165,698

158,977

133,627
V

159,932

'

Federal Reserve
DistrictsBoston

——One week

Board's

System

an¬

seasonally

Philadelphia
Cleveland

.

________

Richmond

8

+

3

San

-

8

0

+

8

+

7

—

Pocahontas

&

.

—1

+ 23

2

+ 16

1

-

8

r—-10

4

8

*

0

2

+ 14

City

—

—
—

1

.

4

-8
-

0

total

Ohio

Virginian

5

0

+

13

+ 13

+

1

—

—

o
—

—

1
—

+ 11

+ 11

6

+ 12

—10

rO

+ 21

8

+9

—

+
—

2

+

3

—

3

+

3

rO

0

«

+

cent)

+

8

—

3

+

2
r

1

+
—

+
—

_

5

—

5

_

8
0

6

+

disclosed

than

the

in

that

of

amount

the

is

date

to

money

the similar period of

.

'

+

9

+

1

—

__

+

INDEX,

WITHOUT

SEASONAL

ADJUSTMENT

(1935-39

+ 10

+ 15

000,000 but the Senate

+ 15

+ 24
+

9

raised the amount to $425,000,000,

3

+ 11

+

12

2

+

6

+ 14

8

+

4

+

7

3

+ 13

8

+

6

+

7

4

+ 16

+

17

0

+

+ 13

9

+14

AVERAGE=100)

June

14

120

116

June

21

—107

June

27

100

June

28

43,890

21,769

20,848

indexes

from

:

84

refer

weekly

*Not

shown

to daily
sales.

separately but

average

sales

in

July

included

calendar

_

5.

—

in

United

month;

June,

109

86

...

States

Feb.

$220,May 21

4-. 8

117

4

on

3

13

Revised.

House

2

originally passed the bill

9

20

r

accepted

the

18 the aggregate was about

-

July

had

When

+ 17

June

40,178

29.

4

1941—

—

conference report

+

June

36432

June

a

House

3

6,009

2,022

on

the

+ 10

12,817

2,083

adopted

which

4

7,070

3,642

Departments supply bill for

the 1943 fiscal year was completed
on
June 30,
The Senate on that

+

12,616

3,054

$425 Million For Depts.

0

18,114

2,669

except

+ 15

22,134

14,459

campaign,

that of 1941.

9

16,933




the

and

+

20,191

—.

campaigns

chests

2

—_

—

two

contributed

previous

date

•

Year tG

...—

...

war

community needs,,"

total,

1942 figures

tMonthly
estimated

on

mainly through adding to the bill
a
$199,740,000 item for the de¬
velopment of landing areas by the
Civil Aeronautics Administration.
This

increase

and

others

ceptable by the House.
Roosevelt

WEEKLY

:

Total

2

+

9

.

100

(per

ago

7

—

2

+

2

+ 13
—

4

+

year

+

6

—

2

—

104

115
a

2

+

—14
+

117

July 4 June 27 May 30 Apr. 25 July 4

5

—

June, 1941

Apr., 1942

137,973

1

District—

Norfolk & Western

an¬

Congressional
action
on
the
$425,000,000 State Justice-Com¬

——Four weeks ending—

__—

Francisco

S.

+19

-14

....

Dallas

r—

8

r—-12

Louis

Minneapolis
Kansas

108

ending——

+16

—

Chicago

101

corresponding period

—12
+ 20

_______

Atlanta

St.

+

May, 1942
108

1942—•

Chesapeake

before

ad¬

(1923-25 AVERAGE—100)

106

July 4 June 27 June 20 June 13

_______

York

New

U.

Total

SALESt

June, 1942

variation..—
adjustment—

seasonal

Change from
617

Erie.—:

Lake

&

that

than

all

Hanes

merce

202,176

674

Akron, Canton & Youngstown——
Bessemer

for

collected

Reserve

at 106% of the 1923-25 average, as compared with

»

Ohio——-.—..—

hope

not more

any

the

May and with 117 in April.

Without

&

of

war,

July 9 that the value of sales at department stores de¬

somewhat

justed index
108

of

Board

Adjusted for

Baltimore

in

more

Jane Department Store Sates

42

485

562 )

141,152

District—

I

other for

figures revised.

INDEX OF DEPARTMENT STORE

Allegheny

the

other year we can get the people
of New York City to join hands

Mr.

1,216

7,472

Lake Erie..——...

.....——

contributions

toward

keeping the Home Front

$4,000,000

v

the

all

• •

-

Total

are

—one

13,853
.

7,117

■.

Wheeling &

16,734

4,783

...———

Wabash:

•

2,855.

9,194

,,;
!
:

.

congratulate the city on be¬
ing able to take it and give it. In

7,023

figure.

year's

u"'.

"I

165

3,508

leaders

women

'

315

Pittsburgh & Lake Erie
.
Marquette....——________
Pittsburgh & Shawmut.,——
Pittsburgh, Shawmut & NorthPittsburgh & West Virginia——.—
Rutland '

7

6,445
;

Y., Susquehanna & Western.—

Pere

:

professional

present:

7,849

62,127
week's

held in the Empire

124

143

Mr.

progress.

He told the business

8,321

4,365

•

of the Fund,

1,131,
;;

*153
360

V

16,538

1,223
■:

120

<

in

is

meeting of the Women's Council

a

l,95fc

10,412

W

still

Hanes made the announcement at

2,484

164".

contrib¬

of the current drive for $5,000,000 to help support 400 volun¬
tary welfare and health agencies,

1,465

432

York have

man

1,901
'
329

.

employee
boroughs of

$4,000,000 to date to the cur¬
rent campaign of the Greater New
York Fund, according to John W.
Hanes, former Under-Secretary of
the Treasury and General Chair¬

4,273

4,340

2,354

.

New

and

five

uted

State Club.

9,241.

•

2,344

8,660
8347

s

8,169

Greater

the

871

Weatherford M. W. & N. W._.

3,426

44,846

•

15,664

123

1,900

Y., N. H. & Hartford.——.

16,605

firms

in

groups

2,221

'

eco¬

Passes $4 Million Mark
Business

1,852

2,22:

and

Britain to

Great

Greater N. Y, Fund

2,956

124

—

232

1,839

'wide finan¬

a

military

from

*1,270

■k

Orleans..

1,634

44,033

New York, Ontario & WesternNew York, Chicago & St. Louis—

10,691
3,447

aid

194

231

:

for

1,464

14,596 Y

1,426

165

———

basis

1,542

*680

:

4,162

1,195

...——

Lines

they created

cial

248

2,097

:

Louis Southwestern

186

{4,031
1,432

Monongahela

said

2,465

_

Pacific....

126

2,028

the

additional

$100,000,000.
"Commenting on the signing of
the various agreements, the radio

*343

Madison..———————i
Valley

Quanah Acme & Pacific
Louis-San Francisco

'YY

j

recently
an

credit of

4,661

Litchfield &

Missouri & Arkansas———
Missouri-Kansas-Texas Lines..—

St.

143

2,374

2,350

—

Louisiana & Arkansas..—i.__.—_i—_

Missouri

.:
+

4,154

City Southern-———V

Midland

granted

which

:

Island

When that amount

exhaustion

British

3,67V

1,660

V

Peoria & Western.—
Union Pacific System.i.l..—.

;

1,086

....

—.i;.'v

1,784
!

Government.
neared

1,531

.

'

Erie

."According to the terms of that

the Soviet Union.'"

557

16,

Aug.

agreement, the British granted a
credit of $40,000,000 to the Soviet

nomic

15,803

previous

a

signed

7,85).

712

V.

;

covered in

3,02:

13,925

Toledo,

10,266

127

237

58

2.456
•

1,126

1,613
.

2,520
;

7':; IT,..;: 57

25

865

5,269

?;•

__>

4,500

Kansas, Oklahoma & Gulf..—

1,001

:

& Ironton..

Toledo Shore

&

10,266

2,650

City————

Northern—

Kansas

6,153

■'

23,666

3,217

...

Grande Western.-...—

International-Great Northern.

910

—

Delaware, Lackawanna & Western-

Total Loads

Connections

7,592

.————____

Hudson..—.i...—

,

Received from

867 :

'

26,054

2,881

& Garfield

Colorado. Si Southern

Gulf

5,610

& Aroostook.—

.25,749

Chicago, Burlington & Quincy_.i,____
Chicago & Illinois Midland
Chicago, Rock Island & Pacific
Chicago & Eastern Illinois...——

Burlington-Rock

4

Total Revenue

1942

Boston & Maine.—

800

District—

\lton

Southwestern

V

CONNECTIONS

JULY

Freight Loaded

j:y;'yy+:;
••••

11(

4,377

-

:

Detroit

101

4,627

1,733

&

Detroit,

438

18,303

2,117

Southern Pacific

Detroit

439

430

Peoria

753,855

year.

9,653
22,419

1,630

Denver & Rio

21,813,860

4—

_

&

which was

1,653

Bay &

Western

Vermont

19,750

and

general character,

a

10,37t

North

Indiana.——.......

equipment of

10,738

Nevada

Delaware

3,283

7,906

2,896,953

Central

13,041

3,147

434

materials

raw

12,902

2,015

•

1941 '

of

16,043

2,449

1941.

Vtch., Top. & Santa Fe System—..

the

liveries

19,712

9,132

con¬

financing of British de¬

2,193

22,525

does not

agreement

19,801

<ake Superior & Isnpeming.—...
.vlinneapolis & St. Louis._i_.C——-

reeti

22, 1941, the day the Ger¬

the

cern

.C—

a

\

invaded Russia.

"The

528

3,351,840

Central

88,838

450

4,160,060

Chicago, Indianapolis & Louisville-

110,985

1,204

3,510,057

Ann! Arbor—______—_____________

82,802

903

4,170,713

Bangor

102,146

835

3,385,769

District—

108,595

on
.<

>

"The pact was made retroactive
to June

understanding

—

Eastern

818

407

Missouri-Illinois

v

772

830

9,497
4,363

Illinois Terminal

+f' v.,Railroads

19,511

1,040

109

Union

Soviet

505

2,495,212

OF

23,304

411

141

signed
British

was

basis.

4,282

2,489,280

(NUMBER

17,511

461

87

the

9,780

2,793,630

FREIGHT

22,156

565

to

lease-lend

3,086

3,066,011

/:•++*

21,659

.

ered

21,187

3,351,038

+

6,32C

15,469

3,171,439

REVENUE

6,424

8,173

The

Ambassador, Sir Archibald Clark
Kerr, and A. I. Mikoyan> Soviet
Foreign Trade.Commissar. ,,
"Under the agreement British
military supplies will be deliv¬

3,543

*

corresponding week last

1,671

9,912

agreement

24,240

___

the

1,028

307

7,361

"The

June 27 in Moscow by the

3,263

2,465,685

July

401

355

8,803

on

dispatch further said:

16,443

3,215,565

of

394

397

Russia,

to

announced

according to Associated

30,

29,907

2,866,565

Total

801

radio

& PaC—.

3,454,409

Week

7,995,

836

supplies sent

Moscow

the

St, Paul, Minn-, & Omaha—.
Missabe & Iron Range...
South Shore & Atlantic..—_

3,858,273

—

13,75(1

10,978

112

District—

3,122, m

June__

16,614

18,826

183

,

474

...

Southbound

February

of

15,618

19,652

333

Central—_______

January

of May..

21,388

10,373

...

Line—_________

of

weeks

616

3,044

184

military

1,981

432

4,210

1,042

of

weeks

2,616

377

2,737

463

3,700'

weeks

Five

19,791

908

1,064

3,447'

599

weeks

Four

90

1,885

Four

March

742

208

4,595

Five

April

578

843

24

92

1»

.

of

919

329

35

1,528

Bingham

1942

136

376

40

2,413

Central

amounted to 12,578 cars,

175

912

3,935
23,719

____

Creat Northern

ing week in 1941, except the Allegheny, Southern and Southwest¬
ern
but all districts reported increases over 1940.

weeks

Press advices from Moscow.

i'lgin, Joliet & Eastern...,
Dodge, Des Moines .& South......

All districts reported decreases, compared with the correspond¬

weeks of

June

Ct.

1941.

week, and
corresponding week in 1941.

Four

301

Spokane, Portland & Seattle...

preceding

Four

234

'

Ore; loading amounted to 85,946 cars, a decrease of 2,221 cars
below the preceding week, but an increase of 14,190 cars above the

in

153

126

161

Juluth,

corresponding week in 1941.

week

408

Chicago & North Western—_________

products loading totaled 44,431 cars, a decrease of 7,921
below the preceding week, but an increase of 7,144 cars above

corresponding

367

2,079

Northwestern

Forest

the

2,734

mans

„

cars

2,694

3,126

Winston-Salem

corresponding week in 1941:
In the Western Districts alone,
loading of live stock for the week of July 4 totaled 6,797 cars, t
decrease of 848 cars below the preceding week, but an increase o:
995 cars above the corresponding week in 1941.
;

1,092

190

Tennessee

the

;

1,318

1,520

Southern

totaled 30,246 cars, a decrease of 805 cars below the preceding week
and a decrease of 7,671 cars below the corresponding week in 1941.
Live

1,609

1,529

3,241

below the preceding week, and a decrease of 8,581 cars
corresponding week in 1941.
In the Western Districts

the

6,327

4,662

1,493

.

cars

below

9,283

467

—...

Soviet

agreement
providing for financing of British

4,201

__

i

the

443

__

Southern

and

have signed an

Union

6,933

Norfolk

Seaboard

above the

1,008

3,497

Richmond, Fred. & Potomac—..

corresponding week in 1941.
Grain and grain products loading totaled 42,340 cars, a decrease

1,773

1,135

Nashville, Chattanooga & St. L—.
Piedmont

■/-'••/-V

2,513

Britain

579

Mississippi CentraL--.^..—

a

627

688

Great

9,105

—

Ohio—____________

754
905

172

4,312

____

Macon, Dublin & Savannah

Coal loading amounted to 120,350 cars, a decrease of 45,801 cars

of

&

410

453

& Florida—,

Mobile

Financial Accord

169

306

1,355

Georgia

decrease

1941.

Southern

Gainesville Midland

of merchandise less than carload lot freight totaled
decrease of 10,173 cars below the preceding week,
of 56,575 cars below the corresponding week in

cars,

a

&

Florida East Coast

the corresponding week in

Loading
82,036
and

Durham

Britain, Russia Sign

1941

4,671

—

Columbus & Greenville—__

below the preceding week, but an increase of 29,348
1941.
;
i
- V

cars

above

—

1942

10,648

________

Carolina

Western

1940

1941

455

Clinchfield

cars

Connections

Alabama, Tennessee & Northern—

Central of

of

Received from

1942

13,496 cars or 1.8%, and an increase above the same week
of 1940 of 116,686 cars or 18.3%.
Loading of revenue freight for the week of July 4 which in¬
cluded a holiday decreased 99,586 cars or 11.7% below the preced¬
ing week.
"'rMiscellaneous freight loading totaled 356,666 cars, a decrease

1941

Total Revenue

Freight Loaded

signed the

July 2.
The
for

was

measure

y/i'.
bill

the

provides

ac¬

President
on

'

$302;00"0,000

Commerce

Department,
$27,000,000 for the State Depart¬
ment, $84,000,000 for the Justice
Department
the Federal

and $12,000,000
Judiciary.

for

THE COMMERCIAL & FINANCIAL CHRONICLE

200

Association

Trust

Bankers

The

Co.,

New

York, reports in its June 30 state¬
ment total assets of $1,336,854,525
and total deposits of $1,218,162,690, compared with $1,336,104,500

$1,207,182,000 on April 4, 1942,
previous call date.
Holdings
S.
Government securities

and

the
of

U.

$529,591,777, against
$539,005,500; cash and due from
banks,
$392,614,699,
compared
with $352,338,000, and loans and
bills
discounted
to
$315,927,282,
to

amount

against $334,714,900.
Capital and
surplus are unchanged at $25,000,000
and
$50,000,000, while un¬
divided profits are now reported

with

at

$37,612,292,
compared
$36,998,000 on April 4.

Flaacke, Assistant Sec¬

John F.

retary of Chemical Bank & Trust

72nd year of conwith the -bank.
In

12, began his
tinous service

the dean

service, he is

point of

of New York bankers and as far as

entered the bank's em¬

He

ploy

on

July 12, 1871, during the

Presidency of John Quentin Jones,
and has served under seven of the

has

ten Presidents which the bank

had

in its

118

Mr.

Flaacke

years

of existence.

one

was

of

the

or¬

ganizers
of
the
Bank
Clerks'
Building & Loan Company in 1890
and was also active in organizing
the

Chapter

York

New

the
of

of

United States Trust

Co. of

30

state¬

June

its

in

York

New

reports total re¬

ment of condition

of

sources

$147,197,829

Government

States

United

obli¬

gations at $50,382,237, compared
with
$38,063,000; and loans and
bills
purchased
at
$23,499,274,
against $32,7^7,914. Capital stock
and surplus are unchanged from
months

six

at $2,000,000 and

ago

$26,000,000, but undivided profits
are
reported at $2,873,230, com¬
pared with $2,902,986 on Dec. 31,
1941.

He

is

the first Treasurer.

was

member

a

of the

Blizzard

Men's Club and the Society of

Old

Brooklyn! tes.

Lincoln

Central

Trust Co., New
ment

Hanover

Bank

&

York, in its state¬
as of June 30,

condition

of

Johnson,

the Metals Reserve

advisor to

affiliate of the Reconstruc¬
tion Finance Corp. in Washington.

Co.,

post, Mr. Johnson has

1942, shows total resources of $1,-

taken

337,117,489 and total deposits of
$1,231,547,590, compared with $1,413,951,309 and $1,308,112,234 on
March 31.
Cash and due from

bank for several months.

banks in the current statement are

a

leave of absence from the

the

absence

ment

will
of

vision

Foreign Depart¬

under

be

During

Andrew

the
L.

super¬

Gomory,

Vice-President.

$361,252,663,
against
Mr. Johnson, a mining engineer,
U. S. Government began his banking career with
securities
to
$660,455,500, com¬ the New York Trust Co., special¬
pared with $636,166,332, and loans izing in oil work, and subse¬
and bills purchased to $220,128,quently he was engaged in reor¬
756, against $223,946,492. The bank ganization, liquidation and other
reports that capital and surplus phases of industrial banking.
He
are unchanged at $21,000,000 and
joined Manufacturers Trust Co. in
$60,000,000
and that undivided 1931.
-A':
;
profits are now $17,802,359, com¬
pared with $17,645,898.
The Kings
County Trust Co.,
Brooklyn, N. Y., at the close of
given

as

$425,452,263;

In its June 30 statement of con¬

dition, the Savings Banks Trust
Company, which is wholly owned
by the savings banks in New York
State, reports capital funds of
$39,054,718, compared with $38,888,852 at the end of 1941. Aggre¬
gate deposits of $159,462,412 on
June 30, compared with $192,099,591 at the year-end. United States
Government
deposits
with
the
trust company were decreased to

business

on

June

30

had

Institutional

Securities

Corpora¬

of

$63,441,266 and de¬
of $54,901,764, compared
$72,484,173 and $64,035,692
on April 4, the previous call date.
Cash items are listed at $21,130,208, against $32,073,744; U. S. Gov¬
ernment
bonds
at
$20,750,319,
compared with $16,218,914; and

resources

posits
with

loans

and

discounts

to

$2,423,053,

against $3,664,564. The trust com¬
pany's capital and surplus remain
unchanged at $500,000 and $6,~

of

$14,060,034 and total assets of
tion.
$15,388,988, compared with $13,412,437 and $14,734,548, respec¬
The
Bank
of
the
Manhattan tively, on Dec. 31, 1941.
Cash on
and
due
from
banks
Company, New York City, reports hand
that the deposits of the bank on amounted
to
$4,222,089, against

1942, increased to $730,- $4,527,896; holdings of Govern¬
securities
to
987,080, compafed with $719,544,- ment
$5,878,989,
585 on March 31, and that assets against $4,523,793; and loans and
have
increased
to
$804,318,276 discounts to
$4,382,287,
against
June 30,

from

$20,000,000
profits

divided

911,749
and

from

discounts

and

due

Bank

of

than

Engi¬

to

2,500.

first

membership

so

far this

Manning

Irving
pointed

In

join the System since
of the year and bring
year.

its

statement

of

as

an

has been ap¬
Vice Presi¬

Assistant

30 dent of the Anglo California Na¬
for In¬ tional Bank, San Francsco, it is
Granting announced by W. H. Thomson,

surances

Annuities

and

Lives

on

total

Mr.

President.

became
of
$344,864,726 and deposits of connected with the Anglo Bank in
$314,302,350, compared with $341,- 1934 and since that time has been
087,239 and $310,224,183, respec¬ a member of the bond department
He will devote his major
tively, on Dec. 31, 1941. Cash and staff.
due from banks is listed at $135,reports

against

484,460,

resources

amount

to

$69,501,063,
pared with $48,781,618; and
mercial

collateral

and

com¬

Text of Measure

loans

Act

to
As

The

Fidelity-Philadelphia Trust

Philadelphia,
30

total

reports

resources

of

as

of

$154,-

954,490 and deposits of $134,394,-

660,

with $167,990,000
respectively on

compared

and

$147,831,129,

Dec.

31, 1941.

due

from

are

with

compared
U.

S.

on

is

hand and

reported

at

$38,177,626;
$37,815,543,
$38,235,965; and

against
given as

$34,182,713,
loans

Cash

banks

securities

Government

at

$30,990,940.
capital and
surplus are unchanged from six
months ago at $6,700,000 and $11,000,000, but undivided profits are
now
reported at
$1,680,622, as
against $1,496,338.
$30,774,367,

The

trust

against
company's

was

its

semi-annual

as

to

of

June

the

to continue to

are

text

A total of

total assets
1942, amounting
the

months of

our

$87,628.

are

reported

at engineer

from

banks

and

Bank

of

of

the

Dime

Brooklyn,

was

the Robert Grimshaw

Savings
awarded

Medal, at a
bankers at $256,866,523, compared meeting of the Greater New York




of

first

the

indicating

six

in¬
£75,000,000
compared
with June 30, 1941.
Cash items
of

were as

follows: Cash

Bank

the

with

an

hand and

on

of England,

£68,-

845,590; balances with other Brit¬
ish Banks and cheques in course
of

collection, £25,562,141.

Money
sub¬

at call and short notice was

increased

£30,000,000

by

have

£67,-

to

British

of

holdings

and

611,891

discounted

bills

while

350

at £23,164,-

unchanged

stantially

Treasury deposit receipts by £15,-

000,000
creased

Invest¬

£115,000,000.

to

the

of

ments

have also

Bank

in¬

£185,358,331 of which sum £180,119,228
represents securities of or guaran¬
teed by the British Government.
£34,000,000

by

decreased

to

£14,000,000

Loans

have

and

reported at £171,254,882.
the first half of 1942, the

are

For

interim

declared

has

Bank

dends at the rate of 10%

the -"A"

on

num

which

with

those

years

past.

divi¬

per

an¬

14%

and

stock

the "B" and "C"

on

annum

per

stock,

rates are identical
declared
for
many

making
of

the

below for A
newly enacted time.

An alternate to serve in the

or

is the text of the new
as

legislation

enacted into law, which
12A

Reserve

and

amends

19 of the

Fed¬

Act.

(S. 2565)

Be it

lows:

$37,449 was added to

six

of

One by the

board of direc¬

of the Federal Reserve Bank

New

York, one by the boards
of the Federal Re¬

directors

serve

Banks

of

Boston,

Phila¬

Banks of Atlanta,

Dallas, and St.

each

of

such

representa¬

shall likewise be

tive

president

a

first

vice-president of a Fed¬
Reserve bank and shall be

eral

elected

the

in

annually

same

manner."
The sixth

2.

Sec.

paragraph of

section 19 of the Federal Reserve

Act, as amended (U. S. C., title
12, sec. 462b), is amended to read
follows:

as

"Notwithstanding the other pro¬

Board

visions of this section, the
Governors

of

Federal Re¬

upon

the affirma¬

vote of not less

tive

its

of the

System,

serve

than four of

in order to prevent
injurious credit expansion or con¬
members,

traction, may by regulation change
the requirements as to reserves to
be maintained against demand or
time

(Copy from Congressional Record
June 26, page 5777)

of

first

cities.

—-

room

Reserve
Banks, giving the New York Re¬
serve
Bank permanent member¬
ship on the Federal Open Market
Committee; Boston, formerly
grouped with New York in an
election district, was transferred
to and grouped with the Phila¬
delphia and Richmond banks. The
bill was passed by the Senate on
June 26 and by the House on July
2.
An explanation of its sections
by Senator Brown was given in
our
July 9 issue.
The following

tors

the

112), Congress has

July 9 issue (page

1942, making a total of
$283,821 at June 30, 1942.
First delphia and Richmond, one by
the boards of directors of the Fed¬
mortgage loans at June 30, 1942
amounted
to
$4,658,276, an in¬ eral Reserve Banks of Cleveland
crease
of
$61,958,
and
cash and Chicago, one by the boards of
amounted to $362,598, an increase directors of the Federal Reserve
of

1942

crease

grouping of the Federal

association

purchase additional

during

end

the

at

months of

absence

to eral
Sav¬

War Bonds.

reserves

360

representatives of the

Deposits totaled £643,839,-

Affecting Reserve Requirements

indicated in

enacted, etc., That subsec¬
tion
(a) of section 12A of the
more than eight years ago.
This
Federal Reserve Act, as amended
compares with $5,041,800 at Dec.
31, 1942, or an increase of $185,310 (U. S. C., title 12, sec. 263), is
amended by striking out the sec¬
in the first six months of 1942.
ond and third sentences thereof
David Shapiro, Assistant Secre¬
and
substituting the following:
tary of the Association, in his re¬
"Such
representatives shall
be
port, announced the purchase of
an
additional
$50,000
in
War presidents or first vice presidents
of Federal Reserve banks and, be¬
Bonds by the association to bring
the total now held to $100,000. ginning; with the election for the
tdrm commencing March 1, 1943,
Shapiro indicated that it is the in-^
shall be elected annually as fol¬
tention of the Board of Directors
of

York

New

bank.

which among its other
provisions provides for the re¬

$5,237,110, the highest since es¬

tablishment

cable received at the office of the

Amending Federal Reserve

measure,

report

reports

30,

Limited, London, as at June
30, 1942 were £683,839,844, an in¬
crease of £74,000,000 over the fig¬
ure of a year ago, according to a

change in such requirements of member banks in reserve

a

shareholders, First Federal
ings & Loan Association of South
Philadelphia

Barclays

Bank

change the reserve requirements of member banks in central reserve
cities within the limits of the present law, without necessarily making

Sections
In

of

resources

enacted, and President Roosevelt signed on July 7, the bill author¬
izing the Board of Governers of the Federal Reserve System to

We

June

Manning

,

Total

com¬

ago.

Co.,

portfolio.

$140,676,088;

United States Government securi¬
ties

attention to the bank's investment

June

the Pennsylvania Company

Louis, and one by the boards of
Capital and $4,541,340. Capital stock is shown
M.
J.
Fleming, President of directors of the Federal Reserve
bank remain un¬ as $750,000; surplus, $250,000; un¬
Banks
of
Minneapolis,
Kansas
Federal
divided
Reserve
Bank
of
Cleve¬
profits, $186,289, and re¬
three months ago
land, announces that the Com¬ ^City, and San Francisco. In such
each, while un¬ serves, $84,646.
mercial
and
Savings
Bank
of elections each board of directors
have risen to $7,A. Ernest Thomas, supervising Millersburg, Ohio, has been ad¬ shall have one vote; and of the
$7,658,521.
Loans

$257,402,614, against $278,921,610;
cash

National

whose membership is more

neers,

$799,784,815.

surplus of the
changed from
at

to

total

the half year,
on Dec. 31. The 500,000, but undivided profits have
trust company acts as depositary
increased to $314,042, compared
for mutual savings banks and their
with $282,595.
instrumentalities, such as the Sav¬
ings Banks Association of the
Lafayette
National
Bank
of
State of New York, the Savings
Brooklyn in New York reported
Banks Life Insurance Fund, and as of June
30, 1942, total deposits
$26,730,000 during
against $50,000,000

the

tional Association of Power

an

To fill this

his

District

York State Association of the Na¬

Vice-Presi¬
dent in charge of the Foreign De¬
700,000, while undivided profits
partment of Manufacturers Trust are
reported at $1,794,972, com¬
Co., New York, is now serving as
pared with $1,671,397 six months
an

The

Illinois

The

As¬

Engineers

$103,196,874, against $114,536,839.
Capital stock and surplus remain
unchanged at $10,000,000 and $14,-

American Institute of Banking,
which he

National

elected President of the New

was

The

and total
is known, for length of continuous deposits of $114,332,503, compared
service with one institution, he with $164,484,301 and $131,371,606,
holds the record for the entire respectively, on Dec. 31, 1941. The
country.
Mr. Flaacke was born statement shows cash in banks of
in New York
City on Aug. 22, $49,597,339,
against
$67,112,066;
1855.

the

Power

of Quincy, 111., this month celebrates
America, on Friday evening, July the 33rd anniversary of its found¬
In its June 30, 1942, state¬
10, at the German Masonic Tem¬ ing.
ple, 220 East 15th Street, New ment of condition, the bank re¬
York City.
This
medal is pre¬ ports total resources of $5,617,418
with $272,378,470, and U. S. Gov¬
sented in recognition of outstand¬ and deposits of $5,111,155.
Hold¬
ernment obligations to $226,974,of
Government
bonds
ing services rendered during the ings
488, agaianst $175,453,661.
year to the profession of engineer¬ amounted to $1,690,838 and loans
The
ing. Joseph F.
Carney, super¬ and discounts to $1,421,721.
The Bank of New York reports
vising engineer of the Waldorf- bank's capital stock is $250,000,
as
of June 30, 1942, total assets
Astoria Hotel, and past (national while its surplus and profits are
of $297,388,681 and total deposits
President, recipient of the medal given as $253,244.
of
$271,747,858,
compared with two
The officers of the bank are:
years ago, made the presen¬
$309,670,723 and $283,983,281, re¬ tation to Mr. Thomas.
For the Lynn Fuller, President; F. N. Casspectively, on March 31.
Cash
past ten years this medal has been burn, Vice-President; H. T. Fuller,
items
are
listed
at
$94,943,001, awarded as a
gift of the late Rob¬ Vice-President and Cashier; H. J.
against $106,578,319; United States ert
Assistant
Cashier,
Grimshaw, an organizer and Butzkueben,
Government securities amount to
first President of the N. A. P. E., and
Ralph
N.
Volm, Assistant
$125,912,054, compared with $117,- and one of the founders of the Cashier.
995,165, and loans and discounts American Society for Mechanical
to $52,503,626, against $58,236,376.
The Old Capital Bank and Trust
Engineers.
He was also the first
The bank's capital and surplus are
editor of Power Magazine.
Mr. Co., Corydon, Ind., and the Tipton
unchanged from three months ago Thomas has been the supervising Farmers
Bank, Tipton, Mo., re¬
at $6,000,000
and $9,000,000, but
engineer of the
Dime Savings cently became members of the
undivided profits have increased
Bank of Brooklyn for; the past ten Federal • Reserve
"Bank"
of
St.
to $5,605,519 from $5,538,969
on
years.
On June 12, 1942, at a Louis.
They are the fifth and
March 31.
State Convention in Syracuse, he sixth State banks in the St. Louis

York, on July

Company, of New

of

of

sociation

Thursday, July 16, 1942

deposits or both (1) by mem¬

ber banks in central reserve cities

by member banks in re¬
or
(3)
by member
not in reserve or central

(2)

or

cities

serve

banks
reserve

cities

or

(4)

by all

mem¬

ber

banks; but the amount of the
reserves
required to
be main¬
tained by any
as

of

result

a

such member bank
any such
change

shall not be less than the amount
of the

reserves

maintained'

be

date

the

Banking
than

of

Act

twice

Sec. 3.

required by law to
such

by

bank

enactment

of

such

on

the

of

1935, nor

more

amount."

The ninth

paragraph of

section 19 of the Federal Reserve

Act, as amended (U. S. C., title
12, sec. 464), is amended by strik¬
ing out the proviso thereof, so
that

the

will read

paragraph

as

follows:
"The

by

a

required

balance

member bank with

Reserve bank may,

a

carried
Federal

under the

reg¬

ulations and subject to such pen¬
alties

the

as

may

Board

of

be

prescribed

Governors

Federal

Reserve

checked

against

and

of

by
the

System,

be

withdrawn

membership in the Fed¬ :1 details of such elections may be by such member bank for the
by
regulations
pre¬
System.
This is the governed
poses
of meeting
existing
eighth State bank to be admitted scribed by the committee, which
to membership so far this year.
may
be amended from time to bilities."
mitted to

eral Reserve

pur¬

lia¬