Full text of Commercial and Financial Chronicle : July 18, 1946, Vol. 164, No. 4508, Section 2

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ESTABLISHED 1839

Final Edition

In 2 Sections-Section

m*

an

<L

Chronicle
Regr.tr. s. Pat, office

^Volume 164

New York, N. Y.,

Number 4508

Byrnes Reports Progress
Attacks isolation of German

On Ability

Russia's opposition to pact for German

separate agreements among

.

continued efforts to restore

disarmament. Proposes
Allies occupying Germany and promises
peace in Europe.

the

to

yr

" $"

people the fol¬

like

lowing eve¬
ning, * during:

.

selecting

which

he

counted

bridging
differences in ideas, values, codes

the

beset

with

i

to

success

As

r u

As industry again takes up the

war

breeds

war,

so

peace

H.

Henry

Heimann,

can

of the

g

the National

be made to breed peace.
That is why President Truman
I were determined at Pots¬
dam last summer, two months
after VE-Day, to set up the Coun¬

of Credit

cil of Foreign Ministers.

in his Month¬

eager to. have

ly

We were
Council start

the

the making 'of peace and to make

—

peace as

quickly

as

possible wher

larly in the matter of restoring
^economic ;and i political unify^to

making

;?Germany/|^

would

It

was

obvious

then

that

with

of peace

the

Germany

Men,
of
re¬

on July
Corpora¬

him to create

be

a^

seem

to be particu¬

of it. It enabled

use

yirtuaj dictatorship for himself here in the

United States and

tion directors

should

and made wide and successful

career

leased
15.

possible.

ever

songs"

larly^ dangerous. One of themcenters around such terms as
^mergency^/^crisis" or "calamity,?, and the other,is usually
symbolized by "inflation", "deflation", or "boom-and-bust."
President Roosevelt may not have originated the
"emergency
technique" of politics, but he certainly adopted it early in his

Association

Review

use

At the moment two "theme

Manager of

Business

throughout the

ages have been adept in
of the prejudices, the notions and the emo¬
tional attitudes of the days in which they operated. History
has usually proved these popular fads to have little fdunda^
tion in fact or understanding, but true or false, sound- or
silly, they have frequently , turned the course of history for
decades. We, of course, have our share of them at*present
To those of us who must live with them
or perhaps: better
expressed, under them—it often appears that we have more
than our share. We have on several occasions taken
pains
to 'pay; our respects to several of them. • "Liberty4oving;"
"peace-loving", "democratic"; as adjectives - applied - to
peoples and governments which know not the meaning of
such terms, ^re; cases iii point • «
"Under-privileged/1: "over*
privileged",; "collective ^bargaining", "liberal", ori^liberalism" are others in the same general category.

making full

Executive

and

the

James F. Byrnes
gle to
bring about a
general peace conference, which
meets in Paris on July 29, and
berated the Soviet Delegation for
its attitude of opposition, particu¬
t

s

"who have

up

clares

make the best obtainable work.

h-

He

atten¬

called
tion

its
s

men

through the shop" on
boards of directors in years ahead.
come

.

satisfac¬

accomp 1
men ts.

only nominal stockholding in¬

tolerance, patience " andy under* well qualified and far-sighted men
standing.. It requires the will and on corporate
ability jta seek the best,, to accept board .of.. di—
the best obtainable, and then to rectors,deL,

meeting

tion

have

corpor¬

though they

of ; conduct

and expressed
some

of ability in

;and deeply; cherished contest for business under normal
aspirations, requires even greater conditions, it is important to have

e

problems
which

durable peace among them¬

To build world peace,

re¬

th

men

ate management, even
terest. Sees more

r.

selves.

a

Politicians

Credit Association Executive favors

Secretary of State James F. Byrnes, who returned from the Con¬
ference of the Big Four Foreign Ministers on July 14, ispoke over the
radio

Copy

Biiedois Based

and decries

zones

a

Uiges Corporate

In radio address, the Secretary of State analyzes problems of Big
Four Foreign Ministers meeting at Paris.
Points out accomplish¬
ments in drafting treaties with Nazi satellite nations and settlement
of Trieste issue.

Price 60 Cents

Thursday, July 18, 1946

]to maintain it, to the day of his death.

se-

continue to employ
technique when the war was over, to keep all the "gains"
with,
V?
:
After; every great war the vic¬ and no agreement as to how soon ability in industrial management, it had brought him both in the earlier days of the New: Deal
we should permit a German Gov¬
as such capabilities are paramount
tors find the making of peace dif¬
and during the war years.
At any rate, his successor has
ficult and disappointing.
It took ernment to function. It was equals to their having large stock inter¬
proceeded in this way.
est in the
The text of the address

follows:

take

There

time.

was

no

German Government to deal

e c

t e d

f

o r

! Henrys H.' Hehnanir

the

theirknown

iy obvious that a start could be
winning their in¬ made toward making peace with
dependence to agree upon a Con¬ Italy and the states which were
(Continued on page 404)
stitution which promised anything
the 13 American States more than

five years after

company,

he points out.

Individuals, who by experience
and special research have become
outstanding leaders in corporate

management, are valuable:* addi¬
a board of directors, ^as

"Boom and Bust";
It was soon

*

„

apparent, too, that the economic neophytes

whom President Truman inherited

—

and the others he has

tions to

No Veto On Peace—Vandenberg
Terming the East-West disagreement over a German settlement
appalling/ Senator Vandenberg on his return front; Paris, insists
no nation has moral right to veto peace.
Warning of impending

v

Senator Arthur H, Vandenburg

a

1:}X

■

1

%

q£ {JtcltG JaniCS^""

formed with regard to the process

exhaustive re¬

The

with

will de¬

Italy,

Hun¬

gary,

gains, and
decrying war
with Russia as

Paris.

cessful

effort in

.

this

regard at

unthink-

,

>

will have to pass upon these trea►

which

ties.

radio by Secretary Byrnes.-

The Senate and the country
should
be
fully in-

therefore




v1

H 'V;

Washington Ahead of the
News

From

397

Moody's Bond Prices and Yields.... 407
Trading on New York Exchanges... 410
NYSE Odd-Lot

Trading. , ii.. ;'i;410

Items About Banks land Trust Cos.. 412

State of
General

was

made

(Continued

last

on page

night

by

I en-

402)

Carloadings......

Weekly

Engineering

—.......

411

Construction... 408

Paperboard Industry Statistics.'.,,.. 411

Weekly

Lumber,Movement....v.,./ •411

Fertilizer Association Price Index..

.

408

Weekly Coal and Coke Output..,. v.:409
Weekly Steel Review.

407

Moody's Daily Commodity Index... 407

Weekly Crude Oil Production....... 409
Non-Ferrous Metals Market,...,....

4l0

Weekly Electric Output.,

407

Latest

Summary of Copper Statistics 409

Commercial Paper Outstanding in

if

May

408

June

.

..

Hotel Sales in February

Outpu/iOr

was

from the deck

forgot1 Sidney Hillman. It was
Sidney Hillman's word that made

and

him President,

dealing, them
saying

this

is

and

that

I

this

Truman

has

souri friends.

is

stdck to

his Mis¬

He stuck to Sidney.

The White House was open to

card
and
said, in
effect, "Harry,
I'll not take

of

any

rest

and so was the long distance
telephone.
Sidney is now dead. Sidney has
passed along as V the "Christian
Science Monitor" would put it.

one

of

,

the
them,

At

you."

Bank Debits for Month of June....

rate,. Sidney

ain't here

anymore.

And

V

Truman

man.

i

laudatory
one of
the best that has ever been writ¬
ten for him.
He said that here
was
a
great humanitarian who
was really working at the proc¬
esses
of
democracy} a man of
Eastern European origin who bad
come
over
here and perceived
the possibilities of these processes
and he, Truman, couldn't imagine
j- j [ (Continued on page ,405)

n-

said,
effect,

Thank

you,

He

Carlisle Bargeron

Sidney.
That
which
sian

seen

was

existed

the

relationship

between

the

Rus¬

immigrant whom we have
so much eulogized recently,
the

President of

the

been

United

written

about how Truman, ascending to
the Presidency, never forgot bis

friends.

A

lot

has

States,

405

any

The question arises as
to what this means to Mr, .Tru¬

but I will take

406

May.. ;40S

Sid¬

ney

up

406

..,........................

Portland Cement

-

and

Changes in Reacquired Stock in

-

Convention/the man
who is now President was) running around like nobody's' business
working to be Vice-President, and the man who finally permitted
him to be that, Sidney Hillman, is dead.
On one occasion when

that, he turned

Trade

Review................... 399

Weekly

Well,

Back there! in 1944 at the Chicago National

Hillman
—

Commodity Prices, Domestic Index. 408

Secretary of State James F.
Byrnes invited, the senior Senator
a b 1 e?i calam¬
ity," he sol¬ from Texas (Mr. Connally), who
A. H. Vandenberg
emnly warned is chairman of the Committee on
of
the
East- Foreign Relations, and the senior
Senator
from
Michigan,
now
West crisis ahead.
;; Excerpts from Mr. Vandenberg's speaking, to join him in this Paris
mission. I propose frankly to pre¬
report, as reported by the United
Press, and published in the New sent my view of the net result and
I shall deal with the significance
York "Times," follow:
<•
what was not accomplished
Mr. President, the Senate of the of
United States has a direct respon¬ just as freely as I shall deal with
sibility in respect tq the peace the significance of what whs. * - \
treaties which shall finally termi¬
My task is greatly simplified by
able report
to the nation
nate World War II.
The Senate the
"an

397

Financial. Situation.
'i;vV

concluded its fourth and most suc¬

tial

of the News
.

Regular Featuree
treaties

Ahead

,

velop.

Bulgaria, Rumania and Fin¬
land now are approaching final
form in the Council: of Foreign
col leagues.
While
saying Ministers, upon which America,
that peace has .Russia/ ?, Britain and France are
made substan¬ represented. This Council has just
port S, thereon
to his Senate

Washingto

By way of the man being confronted with the question:
what have you got to say?
We have this to say: '
"

Editorial

""

from which these treaties

an

GENERAL CONTENTS

Secretary

'*

From

though

By CARLISLE BARGERON

Tuesday, July
made

there can" be no
objection to their service on

board of directors, even

(Continued on page 405)

F, Byrnes, on
17

If they meet these

industry.

they possess only nominal hold¬
ings. He predicts that specialists
in finance, distribution, produc-

bn his return from the conference

Foreign Ministers in Paris, where he acted as adviser to
^

of

valid

catastrophe, he scores Russia's insistence—in defiance of
Potsdam Agreement—on administering Germany in airtight com¬
partments, rather than as; economic unit Criticizes "insatiable Soviet
appetite for proselyting and propaganda."
;

they bring an outsidd. viewpoint
based on the proven experiences

qualifications

German

of

(Continued on page 400)

By this token, he never

.

issued

statement

a

very'

about Hillman,

..

.

I.-

-

tional security

»
1
6. Necessary s u p p

'

••

-

: •

,

when final

yet made them^vi
stores—at least ?
the full effect that they will J

another haven't

selves felt in your

if controls aren't

based.
Porter

paul

cover

and

that a
and the

—

explain -Why

carrjy
Such

policies.

activities

naivete. In

*

by* statute

required

•

amending the pro¬

sional policy regarding

to

1946.

EXECUTIVE OFFICE OF THE

Washington 25, D. C.
given me the

general instruction that for fiscal
1948 we must plan not only
for a balanced budget, but for a
substantial surplus to be used in

than $80,000,000 dur¬

"The

jective,

strict

exercised
diture

in

President's/ob¬

the

economy

must

government
and

programs

be

expen¬

high

taxes

must be retained.

For the guidance of all agen¬
cies, the following principles will
_

govern

consideration of the

1948

Budget:
,1. Requirements
reviewed

should
to

for existing

beg carefully

eliminate work of

low priority and to provide for
more

or

initiation

of

.

new:

efficient

performance




of

issue—the

E

bond

.Treasury

cash-ins

noted

,

production workers in manufac-

^

,

high of $1.06 in
hourly earnings for

all-time

An

gross average

the Congress turmg was reached in April, 1946, >
financial agreement withj with a further .rise to $1,07 in<|iGreat Bn.am is a major step in cated for May, the Bureau of La-;

for re¬
expanding internation¬

U. S. Depart- !

^ Statistics of the

ment

al trade.

..

.

wide

The

the

of

discussion

of Labor reported

on

June

26. - The April average is 1 cent*
above the wartime peak in Janu- ,

measure

both

.

sides

that

believe

;he

time/khd"Weekly^earnings
"Weekly
earnings

averaged/

were

20.2%

than in March/ the rpeak

nours

less

month fOr

redemptions,and Were contihdtqg
a downward trend'which
began

April. They amounted to $439;in June, while sales to¬

326,000

taled $321,069,000* Treasury sales
of F and G bonds' combined" to¬
taled

immediate'

!e

that

against
demptionsof $51,775,000. I
$250,156,000,

re¬

\ '
"For the first half of 1946, eorif-

mm

io

cooperate

in

pattern of ■ mutually
economicrriatious
tions Of. the world. It goes far jo
remove, the danger of rival and

kenfficiai

earnings in the non-durable goods?
gj.^u

aj.e

$3J50 above; the V-J"
,

amo^themar f,ayPlevel,

while in the

durable/

g0t>ds group they. are at approximately the same level as in Augantagonistic economic blocs.
No f , 194=
.
/
one should think that this agree-.
•
• •
. -.
,,
.
ment between the United States
Gross average hourly earnings:
and
Great
Britain is
directed p the non-durable industries have
against anv other country.
It is been steadily increasing as a re^

,

.

Pre!

°cfemf

360,000."

'i

■

Bank of America to Open

economical

administration.

Consideration

will not

no

basis exists

4. Estimates for authorized ci¬

vilian

(

public construction and
programs should
those for which

improvement
be

limited

the

publ|c need is so great, both

from; the
C

to

standpoint

of

eco-

nomic' return and social benefit,
that it is not in the national in¬
terest

,

to

postpone

them.

&

Federal

Washington,

Reserve

System/ at
that- the bank's v ap¬

lish..branched

in

am

tateeste and Mps

of

faces as tb®

^niritoal

Hb-Prt conseauence

^

have

and nwderial resources So

As

common cause,
:
debate opened in the House

one

further step

in

Bank of America's plans to foster
such

,

international

trade!"

It

is

ex¬

• -

.

,

.

national

even

?'g^cX
» ^ t?ow

the

^
/a?tTm^P°S

when more than one-quarter of
the durable goods workers were

empioyed in the relatively high

transportation- equ.pment
1946,

group;
In April and May,
less than 10% of the durable

workers

employed

were

highest paying
goods groups.
.

"Increases

of

all

goods

in this

durable

in both hourly

and

weekly earnings between March
and April were evident in all the

,

..

-

for

.

.

,

/// stri^
Se
lean?
SveraSe ^>f Tl

maj or durable goods groups / and
in almost all of the non-durable.
The shortage .of coal and other
materials was reflected iri shorter .
This
program
has
had the work weeks in 17 of the 20 major /
whole-heated approval, of Con¬
groups."
gress.
It is the one way we can
Preliminary averages for May .
avoid the danger of a conflict in
are presented below:
economic
policy
be/ween
the
W'kly W'kly Hourly
United
States
and the United
Earns. Hours Earns. :
Kingdom.
Such a conflict would
•
(cents)
be
disastrous
to / the
economic All manufacturing
$42.67 39.8 107.2 /
well-being of both countries and
Durable goods
45.46 39.5/ 115,0/
to the peace and security of the

tension by any Pacific Coast bank
Consideration will be to the Far East. Announcements
given to estimates for planning as tp personnel and the
nature of
and investigations of authorized
the Shanghai and /Manila opera¬
public works projects for future
tions are deferred until a later.
initiation.
-- •
entire world.' /-.■..
v \
5. Construction

.

been

said; that this will be the -first

should be deferred until a later

human

,

fully "0

Shanghai- and

the emergency

program,

serves our own

granted, ac¬ July 8 on the proposal to extend
cording to L. M. 'Giannini, Presi¬ the $3,750,000,000 credit to Great
dent.
"There is general agree¬ Britain, a note of urgency was
by
President Truman
ment,": said Mr. Giannini, "that sounded
much of the future growth of our who declared' that the loan was
Pacific Coast rests upon- the de¬ "an integral part of the interna.velopment of trade with the Far tional economic policy of the
United
States."
The President
East.' This contemplated extension
added, according ? to : Associated
of actual banking operations, to
Press Washington advices:
Manila

"While the increases in earn-

circumstances*

which gave

,

which would impede the flow
of materials and manpower to

housing

that we have

Shanghai,

All the Orient is

other; projects,' especially those

forgo-ten Jhe

not

rise to Britam's presManila Branches ent problem; It is fortunate and;
Bank of America National Truest gratifying: that this action Jboth

be plications for permission to estab¬

new ac¬

action, May.

self-interests underlie our
this does not mean

the

by more efficient

year.'

activities

the

con¬

in legislation.

nothing short of obligatory
budget policy. Merely to balance
the budget is not enough.
achieve

f

•

should not

tivities for which

a

tion is

To

approved

the

of

civilian

;

given to estimates for

the

reduc¬

debt

of

Savings Association of S^n
Francisco, ?Calif., has been, noti¬
fied by the Board of Governors Of

3.

period of high prosperity and sub¬
stantially full employment. In these
sizable

signing

agreement, follows:
........
•
,
The approval by

> ' '■ V»-

Rfeporfs Hours/
And Earnings in April

carrying out our program

ones, unless such, expansion jis
required to meet a demonstrable
public need of the highest prior¬
ity, cannot be deferred, and can¬
and

the reduction of the national debt.

of

the"

——«~

■.

Labor Dept.

viving and

not be avoided

,

year

conditions,

-

activities

eve

■,"

Truman, with

hThe

template expansion in activities,
either by. increases_ in existing

BUREAU OF THE BUDGET

the

floor.

out the congres¬

carry

2. Estimates

PRESIDENT

on

unable to Sup-1

bined E, F and G bond sales were not; The system of trade we_seek
$709,306,000 higher than redemp¬ is open on the same fair terms to limlnary- reports indicate % that
employment contained in /the tions, amounting to $4,041,666,000, all the United Nations.
earnings in these industries- will
While considerations of broad reach an average of $1 an hour in
Federal Employees Pay Act of while redemptions were $3,332,-

and

high as way to reduce the
debt, since "merely to
balance the budget is not enough."
The text of the letter follows:

are

am

given to the consideration of the . $42 g21n -Aprijj about!f45abelow
agreement are insurance that our the peak in January, 1945,/ but;
250,000. This was more than off¬ approval rests on full understand- considerably higher than at any
set, however, in sales of the F
loan serve* our
and G series, which topped re¬
and long-range Interests by help- >veelc in- Apm was almost a
demptions by $198,380,000.

in

national

view that we

I

former, war bond—ran ahead* of
new
sales by more than $118,-

and "merely to balance die i

remain

on

years

which has taken place on ^ 1945, despite the relatively
of the Atlantic em-1 short work-week of 40.6 hours •
ing June, the Treasury Depart¬
Full and I and comparativeiy few overtime:
ment made known on July 2, Re¬ phasizes its importance.
frank debate is a basic principle hours at, premium, rates, said the.
porting this, Associated Press ad¬
of the democratic system and; I . Department; which further stated^
vices from Washington, said:"
< '

July 12, made public a circular
letter sent at the request of the President to the heads of government
departments and agencies by Paul*■
necessary work. This is neces¬
H. Appleby, its Acting Director,
sary both,in order to meet the
urging strict economy in expendi¬
President's economy. objective
tures and stating that taxes will

based

:

of

in by more

-The- Bureau of the Budget, on

is

13

m

of -the

—•»

J.

Government Savings
Bonds exceeded the total cashed
Sales

Acting Director of Budget, Paul H.Appleby, at President's behest, I
sends letter to heads of government departments urging strict ;econ- [,

instruction

Acting Director

r

Savings Bond Sales in1
June Exceeded Redemps.

third, that he
paid for these

Urges Strict Economy
And High Taxes

This

admitted that "for the first time:

state¬

The

loan.

the

of President

_

Tinman

The President has

of

iveness

ment

Very Truly yours,
V C j*
PAUL H. APPLEBY,

—-—.

competitive system? Does he really think that
people are as helpless as he suggests?

My dear Mr. Secretary:

ratify^/

fail.
Chairman
Sabath1
(D.-Ul.) of the Rules Committee ;

to

submitted

"Cash-ins

.

Op- >

the House, and ad-:
leader^/ voiced / certify %

cerh that the resolution (to

appropriate legislation should might have destroyed the effect¬

.

the American

..

step •<

known -to!

might

repea.edly before
amendments which

be

But, far more important, has Mr. Porter reached
the point where he knowingly scoffs at the Ameri¬

Says high taxes must remain,
budget is not enough."

forward

defeat of

had

leaders

Administration
come

.

©my.

was

port the administration/' On the House's action in finally other hand, Representative Smith ^
approving the loan, which the (D.-Va.), who often differs with'
on
domestic
Senate had passed on May 10 by the administration
a vote of 46f to 34, completed four matCers/tbok the offensive in be-* r
months of Congressional consider!, half of - the loan. Optimism: as to >
ation of the joint resolution to the likelihood t)f favorable action
ra.ify the agreement made, Dec. 6. for the loan was seen a little later
During this period proponents of when efforts to block considera-:
the measure had innumerable oc¬ tion were defeated -by a vote of *

the

-We suggest, first, that Mr. Porter have some of
his assistants obtain quotations more accurately

can

be strong in

ministration'

his vis¬

of

reflecting the actual market; second, that he make
allowances for subsidies which have been helping

Ji/gif,

position to the loan

The

should be brought out and drafts

alarmed."—Paul A. Porter.

to pay for such necessaries; and,
inquire what was actually being
■things at the end of June.
'1 *

economic

itors.

should hot ,be carried, on, that fact

visions of law involved.
-

first essential

the

toward peace and security."

give the bureau la
general picture of the objectives
you seek to achieve and how you
expect to achieve them. They wijll
not take the place of the detailed casions to fear that the plan to 181 to 67 to approve the rule a!- '
jusificatibii. for eachV;estirhater extend the huge1 credit Id; prea|/ lowing 16^^hours of^ gencialidri?atn
Should you believe that certain Britain would meet with failure. under which the bill went on the

be shocked at their cal¬

stunned by their apparent

those

statements will

*

am

These statements should
the broad policies' followed

forward

;;/mg of people who sing this dangerous theme song.
When I read their statements and hear their depre¬
ciation of your very natural fears about inflation

I

agency ; ;arje

your

•-

submitted are necessary to

40,000,000 housewives in this country — will see to
it that prices and rents don't go too high.
"I confess I find it hard to understand the reason-

I don't know whether to

for

out as souvenirs to

Paris, /'The British ioaxi ila¬

from

States, Lord Inverchapel. Secre¬
tary of State Byrnes, Chief Jus¬
tice
Vinson, Secretary
of the
Treasury
Snyder
and
several
members of Congress were presr
ent.
Twenty-six pens were used
by .he President in signing the
document, after Which he ^passed

which thfe them

plans on

the

estimates

•

any case,

transmitt'hg

budget estimates, statements
will outline and explain

briefly

runaway inflation is impossible here.
"Business and industry, they say

or

to have in¬

also like

should

which

people today who
talk of 'prices finding their own
level' soon. They'll tell you, with

lousness

/g/

your

"There are

,'rv

Price- Control / Act-is

I

restored /

attempts at reassurance,

•

,the

on

cluded in your letters

/promptly....
-

congressional action

known.

•

be felt,

instruction as to number o| notables, including the
assumptions. that British Ambassador to the United

be. made* Will" be issued

should

terials—which for one reason or K,.

not to

-

A specific

the " price

commodities and raw ma¬

basic

.

1 i e s arid

agency, Ahaving
supplies .and factor/in efforts to restore norma/®* ■ '
; //"//n//n
> < ,4..
equipment in excess of its nfeeds World trade Condi ions.
policy thbre must be no- partisan/
will be expected promptly to
The ceremony
of signing' the division between Americans.
declare them surplus.,
/
measure
Was
witnessed
by
a
Secretary of State Byrnes cabled *
7.

being made in

increases that are

-

$3,750,1/

July 15 ppt his signature to the

on

000,000 British loan agreement finally ratified by the House' of Rep¬
resentatives on July 13, by a vote of 219 to 155, according to Wash- •
equipment should i be .acquired ington Associated Press advices.
Calling'the pact a major step to *
to
the fullest extent possible
carry out a program "for reviving and expanding international
from government surpluses. Any trade," the President reiterated his belief that the loan is a
strong1

thinking of 79-cent

not

am

Signed it

Loan To Great Britain Ratified And

would not be tm- ,.President Truman

paired.

lamb chops ■ or
..butter at.$1 a pound, or, the, thousands of unwarranted rent increases and evictions. They certainly
are bad enough — and the inflation that we ve seerr
today has all of you aroused.'
^
;
"Vm thinking ahead, to what
may happen as a result of price
"I

£.

defense purposes should, be deferred: in all cases whereT: na¬

Sense?

Naivete—or Common

Thursday, July 18,194$!

&-FINANCIAL CHRONICLE

THE COMMERCIAL

398

■t On

such matters of

.

4

.

international

Non-durable
r/

goods

>

/ v
•

39.91'■ 140.0

-

99.7

/

41

iS

••

•

•

•

i•

•

Volume 164

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••

"

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:

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•

,

Number 4508

ri

"

.

v

*

rights

">'

<}

'

.

•

•

•

,•

.

■

of ^unions

•

■. ■

*'

399

in carrying out
t - f ' •'

Virgil Reed Bdieves Removal of Price Control £|b!ir ^iegi timate obj ectives."
WouldPrecipilale Danger of Runaway Inflation Mid bill [thb Hobbs bill];
.W; In he view of Dr. Vergil D. Reed; instability, fostered by uneer-j ^This
■

in part

v

:

•

cor¬

■

i:

"

.

THE COMMERCIAL 4 FINANCIAL CHRONICLE"

-

tainty

I•>

responds in terms to Section 7 of

the future of price controls has invaded marketing* in the
h; R: '4908, the Case bill; which I
:
United States, with the detrimental effect-of a retarded and hneyen
leturried'^^on^^/Junei 1|,: i94^;Witht7
flow of goods to consumers.- .The views of Dr. Reed, who. is ^ssociale
put my approval. In pay message
Director of Research of the J; Walter Thompson' Company, as given
of June 11, I stated that I was in
:
ip^ th.e-Kcw7 York "Times" of July 15, were based on; an interview full accord with the objectives of
'
with a reporter ofJhat paper^wno^ i
^
"n-1* :/>///'■'''.'■r ,v
f ->v £>ection '7"-bf"^tKe Case bill*'
«indicated - that Dr. Reed at the far-reaching strikes unless prices !; Thb^measura how comes befoM
f
same time said, that -despi.e dis- "really
do- get out: of reason*'* rhe as ar
separate enactment, rather
!/•
advantages deriving from the >in* These leaders, vbe. said/\ realize than as one
provision of the" Case
determinate fate of price regula- that the public's patience has been
bill.'. '
■
•
'
■/'' tions,- --the* - threat*»* of * ■> -1 h & it tried tp "the breaking poin;."
r/
Section II of the Case bill se¬
over

.

.

|r/ Up to the present, statements by governmental

ceilings, but this

out these subsidies will be obliged»
to .pay

'

reimposjltiori' is salutory in keepIng vdowfe prices- of : those who
otherwise would not!; hesitate- to

,

„

riously weakened

Truman

-

Hopes for

raise them.
v

J

of all* price

Removal

•.

Hope for a united world pur¬
suing the paths of eternal peace
was voiced by
President Truman

itate-

"very
great
danger"
of
inflation's getting beyond the con-.
trol Of even the most well-inten¬

/

the bill.,

//
—'■ V,"...:
responsibilities. It is almost -certain, the above trade authority
points out, that no general across-

.

desire to~ prevent inflation;

labor

•

Here in New York City reports
state that while present
day prices
for staple-foodstuffs have' risen

acf and correspond¬

ingly crippled the specific* except

ticms^Pphtidn

v

the

Case bill.

The present act, stand¬
ing alone, is-not. subject to this
objection.

>

The -Attorney General advises
July 6 at Gettysburg, Pa. The
pie/ that Jthe; present bill does hot
President,
said
the
Associated

He

in';anyt

Way; interfere- -with "the
filled with optimism over
prospects | for agreement, on the. rights of unions in carrying out
their ; legitimate "objectives. " He
European peace treaties, declared
ing economy and calls its definite that conditions in the world as the /bases this conclusion Upon the
removal-the, leading invitation to
language;of the;bill;as: a s^arate
kSsS."Sisto&Uiiwrwereiaftern«tt
measure, iand upon the. legislative
Press,

regards rent 'Control as the« keystone in repressing a skyrocket-

;f

I

{'

reported

as

follows

(.the®*? much like thpse .which, beset history.^ ,f
1

in

..

the-board advances in steel prices
considerably above OPA ceilings will be made until the latter
part
in most
instances, they ares lower of this year if the entire price conthan
the
black
market
prices trols are permanently eliminated.
Which were prevalent under the
The steel industry and the
scrap
pi/me control system.
/
industry through their respective
Since the lifting of controls the institutes
engaged last week in a
Public has had ample evidence of mild debate as to who was rethe, application of the natural law sponsible for the present dearth
of supply and demand by the in- of
scrap.
The * accusation by an
creasing movement in the fast few :Amerieah 5 Iron, & Steel: Institute
days of livestock inta markets' at official that some brokers: and

the- protection
by the Norris-

on

tioned business leaders and their

I

to

Ua'^Guaniia

Peace in United World

controls,

D^Reed believes, would precipe

■
-

afforded

was

to be expected with the elimination of
government subsidies.
No
matter how one approaches the
problem the consumer with or with¬

.

7

:

and other groups

of what would happen to the
nation's economy with the serving of
government control of prices has not come to
pass.
Here and there
prices have advanced above
previously fixed

*

fairly reasonable prices; -Supplies

dealers &ere holding back scrap
because higher prices! might soon

°f

beef and pork in wholesale
markets have increased and are
above the 1941-45 norm, it is understood

4i.v.,N.?

with

local

be- effective

was answered by the
Institute of Scrap Iron & Steel
which pointed out that the lack of
small dealers who were a wartime
casualty and the unrealistic, attitude of the OPA in handling the
scrap
situation
coupled/ with

slaughtering

this nation after the War Between
He -makes reference; inv particu- of steers and hogs • considerably
the States, and this knowledge
ilar, to; Title* II of th£ bill/ That higher*
SJw?S^iejan
control brll which-Tooks,qmteim-f^ be a tremendous help ,in guid! title .provides that nothing in the
j According to C. E. Rouse, marworkable." Dr. Heed said, to view ing the forces 01 peace*
bjil| shalh be:
to' repeal, ket news analyst for the DepartProm the. Associated Presi-Get-; -hkpaifyv ok affect
of
therajlway labor hlienfcbt AgricuRuteilh?New;York, strikes at steel consumer plants
act; the Narrjs-La Guardia act, trading pn the wholesale; markets were the major reasons! for the
evidently more to come in the tysburg advices,,we, also, quote; .,
House," industry.continues to; lack > i The //Chief f Executive;^looking the Wagner act and specified sec¬ was alow and the amount of pork present situation,
"Times"'

-

-

«

^^I

.

-

1

solemnly at the Gettysburg peace
dedicated by former

tions of1 the-Clayton act,- i.e>, the
great legislative safeguards, which

tinued, .is vLal if marketing's pre- President Franklin D. Roosevelt
sent groping course is to be given in 1938, read the inscription at the

the Congress, has. established* for
the protection of labor in the ex-

a {

basis

for

decisions.

.busines

monument

Practical price regulation, he con¬

direction. 4/

-,r-;

•.

i

.

#

base:,

;t

: ;
Eternal

Reed

Dr.

for

price

-

i

welt MMiaged concerns/with"®
knowledge of* economics and the
advantage of competent econo¬

v

Newsnien asked; him about - his
transatlantic telephone conversa¬
tion

yesterday with Secretary of
which he was told
of the four-power foreign minis^
ter agreement to start a general
peril,
therefore,
derives ; from treaty writing conference in Paris
"short-time selfishness or a desire
July 29. ; :
■
mises

on

their

realize

staffs

the

State Byrnes in

to

clean

up" on the part of less
managed concerns, he con¬

^Managements -wanting7 to
line" possess what he
"enlightened selfishness,

tinued.

the

"hold

termed

for

consumers

%

them."

*

best

is
.

.

.

inflation, Dr. Reed «. In spite of widespread specula¬
pointed out, "merelypricesmore tion as to a possible veto and in¬
more conSumers out of your tense opposition on the part of
market". Any. inflation, he/ex¬ labor, the Hobbs Anti-Racketeer¬
plained, "besides hurting every¬ ing Act became law on /July 3
body to some degree, particularly when President Truman affixed
hurts those with low purchasing his signature to; the measure. In
the opinion of several legislators,
power, which is the mass of the
according to the Associated Press
people,"
in its dispatch from Washington,
.'Although partisan for pried con¬
the President's approval is con¬
trol on items in short supplynDr.
sidered likely 'tov; help • :zi:est0%
Reed" wpqld: ? preclude
subsidies
friendly relations with Democratic
from any possible renewal of price
Party
members who./ were
ir¬
regulation
Subsidies should be
ritated by his earlier veto of therelinquished, he advocates, to perCase labor disputes bill which car¬
nut commodities to adjust themr
ried similar provisions.
selves to v: real'^price insteack of n
subsidy price, thereby establish¬ ; T*he new legislation makes it a
ing competition :on a real commer¬ felony to' interfere > with / movecial basis. Rollbacks, if introduced meht of goods iii interstate Com-1'
to future legislation, he declared, merce by "robbbry or- extoftionExcessive

,

of

.

new .contracts should carry, a'refori tractive feature. The amotint of

vi^qs that, the legislative history

Textile

'snows

the ^industry a ^four-point policy scrap being held back because, of
the .price confusion is probably

that the bill is not intended

tbrdeprjyg Jabof pfcgny/ of its
ognized

yecn giving remphasisr to the need for
the maximum' production at. reasonr
.

including
ri^it /to strike .and; the right to
'picket^ - and to take other- legitir;mate and tpeacefqil concerted ac-

■tion.-/..

rights,

-

...

,■

proving, the biU.

WU

lpngrterm contracts. The
Institufe appealed - to .processors

and; distributors,of,cotton goods, pliers, the dealers, to accept such
fueh as converters, garment man- a clause.•
Ufacturers, knitters, ./wholesalers
More basic- than these surface

am ajK

■:

Ethiopia by
Export-Import Baink
to

^nd retailers, to cooperate in the arguments over the

!'

flow of .merchandise from mills

to the-ultimate

-Approval" by the- Board of Di-*
rec tors

of the

reservoirs

consumer.

-

longer

period

except China.

than any country
During that period

Ward's
best

automotive reports.-

The

previous postwar week's out-

Heavy losses of- life weref sustain?

pjit wga^71,'33i5 cars^^ anci^/trucks

qd, and material - damage

the period ending May 11.
week's, output
compares

in
This •
with
and - other - productive, ^facilities. 45,175- unit's last week and 114,318
The Ethiopian Government is now in the comparable week of 1941.
engaged in the difficult task of re¬
Ward's said that due to shortstoring • essentialtransportation
cf pig
ixon and cushion
and other public -services." .It .also
faces the necessity of replacing Springs July . output volume may
hot reach the projected" 50% - in?
Worn-out equipment .now in .use
crease over .June and added that
to

.was

done

dwellings and to- transportation

in its mining and manufacturing
enterprises. Since the end. of the

Italian occupation and of actual
hostilities in Ethiopia, the govern-

_

of .25%. may
be
achieved with "hrduous" effort;
an

increase

.




scrap

accumulated

beginning June 30, 1951, and will
bear^ntefe^^t;the;mte of 3%

ter paying, jobs; fourth,, war sup'.fabroad; represented; a./
f,
s
return scrap; and
f^th, the confusion surrounding
/markets which, have not ox-.

S

waa at war and was the the past Week reached a postwar
sicene of, actuaf'hbistilities: for a high of 72,995 units, according to

-

such eventuality, believr understanding of the advice of the
ing that the better labor union Attorney General that it "does not
leaders would hesitate to start, any; in;;any-way/;i

•

^Etjnppia

.

:

of

*

.

for any

scrap supply
situation, 'The Iron Age" points
out, are the facts that: First, large,

program as a means of-facilitating
a

.

■

a very large- share of the total
scrap movement.. Many "brokers
while not obtaining a retroactive
clause, from^ steelmakers havenev-»
ertheless agreed with their sup-,

ance of

■m

Credits

not

able- prices,
prompt shipments,
equitable distribution; ahdr avoid-

:

-1 Dn i his uMerstandlngi |

Institute; formulated

I Steei mdustry---Tightnesa.in,the
ment.has. successf ully/established supply of scrap; pig 'iron and coke,
basic
products
in steelmaking,
q npw, currency, banking-and tax
system, has reestablished health has temporarily blocked: aiiy sus¬
tained thinking on the matter of
^j^c^ucat«or^T isdrvlbesi ^nd h^
I should/fall ahort of . subsidization tor: by^^thirbatsdf2yi61^ce,;;Rept,e^; /begun * thee task- of / developing Steel/price bmre^e^/stafed "T^
sentative Hobbs (D.-:Ala.), • author
as "one more step to a free price
Ethiopia's resources.; This credit Iron Age," national metalworking
of the. bill, * described; it; Us - the
Will" help to .carry -forward "that paper, in- its summary, of,the steel
system as. quickly as adequate
chief purpose pf the bill to permit,
trade- f6r: last "week. While most
jproduction materializes." He con¬
process.""
farmers to ~ take their goods tb
tends that "subsidies and free en| The'x "specific; tot^rials a jfd steel firms' efe-/ absorbed id ;the
market without interference by
terprise >afe' inconsistent"cv
fequipmtontr which: the Ethiopian price debate in Cohgress and news
unions; wbich;/h^ deelaf®d,h^Spbl
Government., intends to purchase dispatches looking for the trend
inflation- is most apt to be troualwaysv been possible in the past; under this credit
blesome in. textiles,- construction,
include: Vehi- Whicft "fbe -price1/eontmi /question
Provision is made in the new law
will take, there is practically no
a utoihobiles and consumer durable
clesj^'tires,^^machinery; -tbdlsi
for fines up to $10,009. and prison
equipment!
The - Export-Import chance of aiiy major steel price
goods as a general class;, he fore¬
-terms of up to* 20 years for violaBank -also states
sees. ;
%
that- advances change- in- the .immediate 'future,
tors. '
^
- c
; ' • * 4 . tinder the credit may be made un-^ says, the magazine.
Relative to rapid inflation,/ Dr.
;
" - •. "The message of Mr; - Truman til June 30, 1948., Nofes. issued by
;
Reed
fears
another round of
When uncertainties over the
strikes
which would raise the which accompanied his sighing of the Ethiopian Government in evi¬ fate of price control are removed,
cost of produtcion - and therefore the Hobbs.. bill, according 4o the dence of advances will mature in steel-firms will begin to take seAssociated Press, emphasized ?his
12; equal semi-annual instalments riohil action on straightening out
prices. However, he does not look
/

OPA ceiling price^ while! many
scrap-brokers have insisted that

directors of the "Cotton

United States of: capital equips
rapidly than. in previous weeks.
hient;fequired fortthe xebabilitarr
!Turning to the automotive intfoii of the. Ethiopian - economy^ dustry, car and truck production

is
for

with the realization that what

best

board

/ Production
totals leveled off in °vfir the past decade/ were used
Export-Import Bank
cfh^:credit^Q#:.,$3 /naiUipn/ tq ^the the. week, ended •- Wednesday as
the war. effort; second, manEthiopian -Empire was announced long Independence Day holidays
On July 13 by%WjlliamJjcO;M
cuSuled output. Some factories ?cFap,ajl ^ byproduct have not/attin, Jr., Chairman, of the Board. were closed temporarily for sum- tamed, full reconversion producIt looks very much as if we are The advices from the Export-Im¬ mer vacations.
Employment'levels • on11 levels; third, thousands, pf
going to get a peace treaty one of port Bank: st?.te: ■> r- i
in'most lines continued tu increase
^n5JwA as - sqrapthese days, he said, and his Whole
i "The,credit to Ethiopia is to be ahd
shipments of goods were mov-, Pies
or„ junkies have left the
countenance brightened.
used-for
the
purchase
in
the ing
from
manufacturers! more scrap collection business for bet-

danger of inflation and won't en¬
courage price rises, he said.
The

well

large.cutting houses.
; On* Thursday of last week the

erc;se* of its fundamental rights /
Nation /1 The Attorney General also ad-

explained his standi-/ "Peace
in a-"
control as directed at United." -<
•
V
those items in short supply in re¬
j If: yoifc changed/:!"hation',; tb
lation to the demand for them,
f^world;' ho said; you would really
either - because - of industry's- in- have
something;;;
ability* to
produce- ;hem fast
reporters met- him at the
enough or because of the unavail¬
monument during:a; brief vacation
ability of raw materials. He called
four »of
this; historic. / national
this^'the^only excuse for/control^
shrine, the President - expressed
outside of war conditions,"; and
the wish he could make ah an^:
would bar controls where supply
riouncement there : that> a peace
can satisfy demand..
•
treaty,had been signed,
J.
i

cuts that had accumulated brought
Steel producers have been inabout a decrease of -5 cents a. sisting
that new contracts
on
pound or more in some of the scrap should be written at the old

,

^st^d for several years is vpo diffcccntin ihe scrap and steel trades
is ^ ®ther industries,
The American Iron and Steel
Institute announced on Monday, of
this week the operating rate of
steel companies having 94% of
the steel capacity of; the; Industry;
.will:he. 87.9% of
capacity/for the
week beginning July 15, as againstV
87.8% one week ago, 84.2% one

month

ago

and

89.8%;

/one; year

ago. This week's operating rate,
is equivalent to 1,549,100 tons of
steel ingots and castings compared
with

1;547,400 tons one week ago,
1,483,900 tons one month ago and
l,644JUKh tons one year ago. 1
.

jElectrkal Production—The Edi¬
Electric Institute reports that;
thh output of electricity decreased v
10*3,741496,600 kwh. in/the week
ended July- 6, 1946, from 4,132,680400 kwh. - in the preceding
week. * Output: for the week end- /
ing July^T^^ !vras 6.0%:below/!.;
thaflort^e corresponding weekly ;
son

pedqd/|iie/year

ago.

Consolidated Edison Co. of New
York "reports system, output of

158,100,000 kwh. in the week endu
July ,7, 1946,. compared, with
151,300,000 kwh. for the corre¬
sponding week of 1945, or an in¬
crease

of 4.5%.

Local distribution

of electricity amounted to 152,price structure
600,000 kwh. compared with 150,under which many steel products
Continued from page ,406)
-are!thblr carrying their^economic
the

unbalanced

//

¬

ed

,

,

£JJE COMMERCIAL' fr/$INANCJAL,; CHRONICLE

400

H

'

--'V

<* J

.

•

•

4*

{ff 4«« nU

^

jf.

forces .to

j gencyl'

legislation - or

page)
regularly creates rather than
lie eye at present. One of the cures real emergencies.
most interesting, of -these is
;
Similar techniques appear
pressed him with the political
usefulness of the term |f in¬ the struggle over price con¬ to have been rather more sue-'
"t

'

«»*

(Continued from first

\ «f ** 1** * ^

.w

»

«./» tort'

I* *.'

drawn unto himself—had iin- j

flation", which is occasionally

trol. It had been iniich better,

cessful

in

the

the

of

case

colorful so we think, if Congress had British loan. In this instance
"boom - and - bust" terminol- simply permitted the law un¬ "calamity"
has long been
der which OPA operated to
treading upon our heels; wait*
ogy; ^At any rate, these notip^s. lfiaye been called upon expire'6h June 30 last, Failing ing for us to refuse the loan.
was and
is clear It is now put to flight, of
to work many more than forty that,
hours a * week for the Admin¬ enoughi that some action had course, and we can all breathe
to be fakbn to curb the arro¬
mucheasier. Well, events will
istration, and particularly for
those elements in the Admin¬ gant an^jdestructive aggres¬ provide the real answer to
varied-with the more

,

istration

which

termed strictly

N

e w

be siveness' 6f the officials who
had been directing the activi¬
a 1.
ties of that wartime body.

can

D

e

The^ipessage by which the
Pj^sident vetoed the OPA Supplies of

all

this.

Doubtless, "the

will for

vance

time

a

which

situation

Economic Dafa

"ErheiFcontrol

remedy the" situation:

4

.

natural

mitted

*33:

The Financial Situation

ad¬

ease

a

be

could

Thursday, Jyly 18,1946

Exchange by U. S. and

Britain Continues
-Machinery-set

i>

,up

during , the war for the exchange of general
between the. United Slates and Great Britain ist

to be continued under an arrangement announced on
July 11 simul?
taneously in Washington by the Office of International Trade, Dei
partment of Commerce, arid in London by the British Board of Trade,
The announcement follows:
'
1
^

"Following

exchange

an
an

of

correspondence between Secretary

resume anywhere near
full production after the cessation1
of hostilities because of raw ma¬

of the British Board pf

terial

rangements
continue

Trade, ar¬

have been

the

tci

made

machinery for the

exchange of general economic in¬
formation which

ing the

was set up dur¬
under the authority

war

supposed

be

to

It

interests.

enable

the

across
the
proceed with more
the early future. Prices ac¬
haye peeped throughout gov¬
dispatch to "socialize" busi¬
ernment: offices in far larger tually paid for food and other ness. But what will happen
measure
than most of us items without which we could

are

far more numerous

and

the shelves of the retailers in

water to

funds

when these

are

gone,

have«sbught to give scarcely get along had long and the time has come for re¬
made a mockery of the costthe President on this issue has
payment? Will another emer¬
depended heavily upon this of-living indexes so freely gency then call for further
employed
by
Washington
technique.
emergency action?
r'.It! would be well, accord¬ braggarts to prove that prices
realize

—

1928.

and

the

Com¬

bined Raw Materials Board, it was

and the British Board of Trade.

ingly,;iif the American people

under control.!

Dr. Stuart Named

Yet for ^months past we
were- to • take time to study
Ambassador To China
have been told, about the
hnd understand the nature of
Dr. J. Leighton Stuart of New
the I'yAmergencies" that are calamity which faces us York was nominated by Presi¬

^aid-ioVexist and of the "cal¬
amities"

which

are

alleged

shouldthe OPA be either per¬

mitted to

die

or

obliged to
and ar¬

curtail, its crippling

be'u|K)fr us or immediately
threatening us. It will be bitrary interferences with
business. The clever propa¬
quickly found, of course, that
what fiis'being said is mostly gandists who have in such
numbers made Washington
plaiii balderdash. No emer¬
(their base of operations of
gency, in'any very real sense
recent years, have done their
of that term, either exists or
utmost to create a sort of as¬
threatens, and the calamities
by which ^we are threatened sumption, almost subconcious,
!frpm ; Washington. are wholly in the minds of us all that
some sort of calamity awaits
iimaginary!A To be sure, unusual^circumstances are to be us if nothing is done to revive
this troublesome agency.
foundiboth Here and in every
Other part" of the world. In Everywhere, or almost every¬
fa

instances, they are 4n where, we findthe present.
moment denominated % onei of
respects at least imprie-j
^cedentedr Many of them hold "crisis", as if the world would
explode if Mr. Bowles or some
unpleasant potentialities.
other figure of a like sort
^But—and this is the point
were not called to Washing¬
which'should never be lost
ton to prevent natural forces
jsome;
some

to; sights'emergency"'treat¬
ment

sUCh

the

rarely if ever brings
situations into line with

situations existing in

the

well

be

world i today

may

less permanently
yfjxeilROthers will doubtless
..more

r, or

revert in time to a state more

"familiar ' to

experience.

To

those situations which are un¬

alterable^^

slowly alter¬

operating.

China.

July 9 to
Ambassador

on

States

Dr. Stuart, who was

be
to
born

in; Hangchow 70 years ago, has
been a missionary and teacher in
China for more than 40 years and
President of Yenching University
at

As Am¬
post
vacant by the resignation

Peiping since 1919.

bassador
made

he

take

will

the

Major-General Patrick J. Hur¬

of

Wash¬
July 9, the New York

ley. In special advices from

ington

on

"Times" said:
"The

appointment of Dr. Stuart

not

does

of

mission

the

affect

Marshall, who
is in China temporarily as the
President's special envoy entrusted
with the task of facilitating a
General George C.

peaceful adjustment between
Nationalists and Communists

Will put an end to civil war.
"Dr. Wellington Koo, the new
Chinese Ambassador to the United
called

States,

Acheson,

which statistical and economic in¬

venience. It is felt that there are

and that the proposed ar*
rangements will pave the way for
similar exchanges on an- inter¬

many

We Seem To Get

But
several
all

we

have

weeks

this—and

lived

now
are

Along
for

without

beginning

Prices have risen here

and there—that

is, they have

risen if we; conipare present
rates with the amounts re¬

corded in official

quotations

the reopening

Yenching University, an Amer¬
ican-controlled and endowed in¬

of

and

Asiatic declines, 1945 rayon
filament yarn production in North
and
South
American
countries
record

new

levels, but

these were insufficient to prevent
the over-all world production de¬
cline noted.

Rayon filament yarn North and South

production

in

"The

put.
"World rayon staple fiber

pro^

duction in 1945 amounted to 595,-

905,000 pounds,

a

decrease of 62%

from the record level of 1941 and

Department of Commerce

drastic than in filament yarn

and the Board of Trade have made

more

arrangements for the work of the
economic
information exchange
service to bri carried but by their

because of the heavy losses sus¬
tained by Germany, Italy, and

.

representatives
Washington.

London

in

and

Secretary of Commerce and Di¬
rector of the -Office •; of Inter¬

Trade, Department of
Commerce, pointed out that the
Department had already initiated

national

discussions

with

Japan.,

other

countries

looking toward the establishment
of similar arrangements for ex¬

,

,

,

.

"Total 1945 staple fiber
tion

"Arthur Paul, Assistant to the

in

Europe

was

product

65%

below

the record 1942 level and 49% un¬
der 1944 production. Japan's sta¬

ple fiber output last
below

the

1938

year was

93%

record

and 74%
The United

below the 1944 level.

States' staple fiber production in
1945 was essentially at the 1944

level but, despite this

stability, the

United States accounted for 28%
of the world

output and was only
change of economic information.:
second to Germany in volume of
Paul
and - Div: Philip - M.
production: :*•£Hauser, Assistant Director of the
"The 1945 world production of
Bureau of the Census and Assist¬
ant to the Secretary of Commerce, rayon, cotton, wool, and silk ag¬
concluded the negotiations with gregated 14,905,000,000 pounds, the
Mr.

the

of Trade

Board

on

their

re¬

cent

trip to Europe. They also held
preliminary
discussions
along

similiar

cerned

lines

with

with

trade

officials

con¬

statistics

in

land. It is

planned to hold similar

discussions
of

other

with

representatives

countries

at

an

early

date."

lowest total since 1934.

World Production of

This 1945

figure is .11 % under ,1944 produc¬
tion and 32 % under the 1937 rec¬
ord

high output. The 1945 world
output of these four fibers de¬

clined below

theif! 1944 levels by

the

following percentages: Rayon
26%, silk,16%%£otton 10%^ and

wood 4%.
"Based

preliminary reports
various
foreign
rayon
producers covering their
rates of operation during the first

received

Rayon Declines

released and immediately set

about preparing for

was

43% below 1944 output. The de¬
cline in staple fiber output was

World rayon production during
to
amounted
to
China as a special envoy when 1945
1,530,000,000
Major-General Patrick J. Hurley pounds, the lowest output since
resigned
as
Ambassador.
Dr. 1936, states the "Rayon Orgarion,"
Stuart,
who
succeeds
General published by the Textile Eco¬
Hurley, was interned by the Jap¬ nomics Bureau, Inc. The Bureau,
under date of July 12 in indicat¬
anese on Dec. 8, 1941, in a private
residence in Peiping.
Following ing this said that "rayon produc¬
the surrender of the Japanese he tion in 1945 was 46% under the
was

production
98%%

yarn

auspices

of the United Nations.

"General Marshall was sent

to live better than we did be¬

fore.

scale under the

national

on

State, to arrange for the presen¬
tation of his letters of credence to

Filament

Japan during 1945

published byeach couri* American countries during 1945 ?
try is canalized for mutual con¬ accounted for 73% of world out¬

formation

Dean
Secretary of

today

Acting

en¬

the France, Czechoslovakia, arid Po¬

that

President Truman.

past or robs them of

danger. 'Many of the
ous

their
anomal¬

from

Truman

dent

United

arrangements will

the preservation of the pro?
cedure developed by the Allies by

eco¬

under the record 1937 figure.
"In contrast to these European

reached

"These
sure

arid

instability. The 1945 output
of filament yarn in Europe was
59% below the peak 1941 level
and less than in any year since
in

Board

transportation^

nomic

Resources

'

were

shortages,

difficulties and political

of the Combined Production and

many necessaries termed critical for the British: announced, today [July 11] by the
or near-necessaries had about
continuation. bill was satu¬
It may have prevented actions Office of > International, Trade,
U* S. Department of Commerce,
rated' with these economic disappeared i, from the mar¬ which are

''bldftyives' tales," and the kets, and there seemed to be inimical to our
little or no likelihood that
doubtless will
support "that the Administra¬
tion propagandists—and they they would again be found on existing
regime

i"j''——

-

unable to

of Commerce Henry A. Wallace]
and Sir Stafford Cripps, President

on

from

quarter of 1946, it is indicated that
total world rayori output this year

approximate
1,700,000,000
pounds, a figure about 10% above

may.

the

level.

1945

Raw

material

;

shortages, slow rates of plant re¬
habilitation, and generally unset¬
tled

economic

tarding

a

conditions

are

re¬

return to normal oper¬

ations in many

foreign countries.**
decline in June rayoxt
deliveries, the Bureau stated:
"Total domestic shipments of
record 1941 output of 2,834,000,000
rayon in June amounted to 65,pounds and 26% % below the 1944
level.
Production in North and 800,000 pounds, or 10% below
May. Of this total, filament yarn
South American countries
con¬
aggregated 51,800,000
tinued to increase in 1945 but se¬ shipments
pounds, a decrease of 9% from
rious declines in output occurred
the May level, while staple fiber:
in Europe and Asia. For the first
14,000,000 pounds
time in the history of the indus¬ shipments at
Noting

a

must adjust our¬ prior to June 30. If, however, stitution.
quickly and as com¬ we subtract from current
"Dr. Stuart is well and favor¬
pletely as may be. Those prices the amounts formerly ably known in China, particularly
which are more amenable to paid by us all in the form of in educational, religious and gov¬
were
12%
below the previous
try, rayon output in the Americas
^change, must be permitted to subsidies on the goods pur¬ ernmental circles and has enjoyed exceeded that of Europe; in fact, month. Total domestic deliveries^
adjust themselves naturally chased, , |lie picture is sharply close relations with Generalissimo rayon production in the United of rayon for the first six months
States alone comprised 52%
of of this year aggregated 418,300,000
to the world by which they altered.! The resuits are and Mme. Chiang Kai-Shek. >
the. 1945 world total "Continuirig
are
surrounded. Neither of roughlythe same if we com¬
pounds, an increase of 10 % over
"A graduate of Hampden-Sydthe Bureau reported:
the same period last year. Fila- v
these transformations is en¬ pare current prices, not with
ney College and of the Union
|S "World rayon filament yarn
couraged or promoted by the the fictitious official quota¬ Theological Seminary of Virginia, production in 1945 at 933,975,000 ment yarn shipriients for the first
half of this year were 10% over
type of •1 "emergency" treat¬ tions of the past, but with he holds several honorary degrees, pounds was 26%% below the 1941
ment so popular in the cap¬ prices actually paid in what is including the degree of Doctor of all-time high level and 9%% un¬ the same period last year, while
der 1944. This decline is attributed
itals of the world today.
usually termed the black mar¬ Letters from Princeton. Ordained chiefly to the greatly reduced out¬ staple fiber deliveries were up
able,

we

selves

as

■

ket where so " much of our
output reached the
/: A
degree of concreteness consumers. Evidently there is
may be given to the general¬ no real "emergency" at all—
ized truths by citing certain and if there were one it would
illustrations much in the pub- remain with us until we per¬
Price

"Calamity"




current

as

a'

Stuart

Presbyterian
went

to

minister,

China

as

a

Dr.
mis¬

sionary in 1905. From 1908 to 1919
he

was

Professor

of

the

New

Testament at Nanking

Theological

Seminary."

'hi '-'i

put in continental European coun¬
in Japan. Many of the

tries and

European rayon producers incur¬
red severe damages to plant in¬
stallations

during

months of the war.

:''r-& ing in operating

the
latter
Those remain¬

condition were

8% in the same comparison. Total

filament

rayon

stocks

in

pro-

ducers' hands at the end of June
amounted to

7,100,000 pounds and

staple fiber stocks were 1,900,000

pounds.

v

I;. '• ''

.

Volume 164

THE COMMERCIAL' & FINANCIAL CHRONICLE

Number 4508

Urges Congress Not To Place Private And Senate Plan for
Pnblie Housing Under Control of One Agency Furlough Pay

Atomic

ABA

:

401

Energy May Lead to New Monetary
System, With Uranium the Basis: Prof. Daniels

■re¬

A

plan to reduce the inflation¬
The possibility of the development of atomic energy leading
of terminal pay for en¬ to a new and more stable
monetary system based on uraniuiri instead
by making partial pay¬ of
gold, is visioned by Prof. Farrington Daniels of the University of
ment in bonds was approved by
Agency a permanent agency of the government and consolidate there¬
Chicago; according to United Press advices from Chicago July 11,
the Senate, Military Affairs Com-in' both the agencies dealing with privately financed housing and
published in the. Toledo "Blade,'' which went on to say: "
*
mittee on July 9, Washington As-^
those dealing wuh publicly financed housing. The Reorganization
"Prof. Daniels, Director of the University's metallurgical labor¬
sociated
Press
advices
stated.
Plan, now pending before Con-^
atory, says that a given quantity
v
: :
President Truman is reported to
of uranium or plutonium, obtained' sciences,
gress, is one of three reorganiza¬ does not eliminate any functions
biological sciences, health
be in favor of the plan which is
tion plans which the President but instead, creates new positions
from uranium, is equivalent to a and medical
sciences, national de¬
a i substitute.'for,: immediate
cash, definite number of
and can only lead to a further de¬
submitted to Congress under the
kilowatt hours fense,
engineering hnd technology^
payment as already approved by of
buauthority given him in the Reor¬ velopment of government
energy having a potential value scientific personnel and education,
the House.
in the world's economjricompara¬ and publications and information.'*
ganization Act of 1945. Under the reaucracy. It will not meet the
Under the recommended Senate
objectives given as the reasons for
Act, unless Congress adopts a con¬
The bill passed by the Senate
tively free from price jfJ|($uations.
program payment of about $3,"On that basis," he; says, "a new on
current resolution disfavoring the the reorganization and will instead
July 3 was described in ad-*
to
some
15,000,000
Plan within 60 days after it is endanger the sound operations of 000,000,000
monetary standard might be sub¬ vices from Washington to the New
veterans would be made partly in
stituted for gold."
submitted, such Plan will auto¬ the agencies dealing with private
York "Times" on that date as the
'
?*<'
cash and the bulk in Treasury
matically go into effect. The state¬ enterprise that would be consoli¬
"Although available statistics in¬ compromise
KilgoreMagnuson
ment of the Association's position dated in one paramount agency. It bonds, payable five years after dicate that the amount of
high- measure.. Prior
to
the Is'eh&te
the veteran's discharge and bear¬
carries the threat of continued and
was prepared by its Committee on
grade uranium in. the world is adoption of the latter, "a 'ifroposaj
2Yz%
interest.
Associated
extended government control over ing
Federal Legislation and filed by
liniited, new deposits are likely to for a Science Foundation was"Press advices said:
its Chairman, F. G. Addison, Jr., all housing both private and pub¬
be found and it will be sought presented on
July 1 by 'a. coalition
"All commissioned officers who
with the House Committee on Ex¬ lic, and both the financing and
more intensively than in the
past," of t Republicans J and ^ 'Southern
served during the recent war re¬
penditures in the Executive De¬ construction thereof. The goal of
Prof. Daniels says,
Democrats in substitution for the
ceived cash terminal leave pay¬
partments. It was also filed with a i decent home; fori: e^ery Ameri¬
Prof. Daniels, on leave from the compromise bill;
the substitute,
'

Thie American

Association, representing 97% of all banks
States, has officially voiced opposition to Part V of ihe
Reorganization Plan No. 1, which would make the National Housing
Bankers

in the United

ary action
listed men

-

.

the Senate Judiciary Committee.

The

A. B.

A.

statement

points
out that the Reorganization Plan
permanent government
agency which threatens to expand

proposes

a

government control

over

construction

financing

housing.

-

and

both the

ministration,

"which will have
privately fi¬
housing in the next ten
years than any other government
agency." There are also many
to

do

of

with

nanced

one

which has the support

but such goal; will
not be reached by bringing to¬
gether agencies operating in such
diverse fields and placing them
under a single 'czar/
everyone,

"The responsibility

of

Furthermore, this plan,

it says, fails in its purpose of co¬
ordinating all government activ¬
ities in the housing field, because
it leaves out the Veteran's ad¬
more

is

can

of reaching

this

goal rests primarily on the
citizens bf each community and
the

Federal Government

at

most

should only supplement the activ¬

ities conducted at the local level.
We believe that this can best be

accomplished

by restoring the
Housing Administration
and the Federal Home Loan Bank
.

Federal

Board to their former independent »

other

ments

release at the rate of 2Vz

on

days for each month of service,
less time actually spent on leaves.
'

^'The

substitute is

intended

to

grant all enlisted men and women
these same payments, except that
cash would be paid only on claims
of less than

$50, with

tions, while;
would

be

above

some excep¬

the five-year bonds

issued

for

payments

$50.

"The
made

bond

to

-

payment would

all

enlisted

be

and

men

already discharged and to

women

those still in service who

dis¬

are

charged before July 1, 1947.
"Payment by bonds also would
be made to officers discharged be¬

status, thereby enabling them to tween the time the law is enacted
continue to develop! and encour¬
and July I, 194?, replacing the
age a sound1 privately- financed
cash payments they now receive.
the plan.
housing program. In no event
"No provision is made to pay
'7 In part the A. B. A. statement should these agencies" be consoli¬
for
unused
leave
accumulated
dated with an agency concerned
says:/"-.,
after July 1, 1947, either by of¬
"In conclusion, we believe that exclusively with public housing to
ficers or men. The plan stipulates
there is no need for the perma¬ make a permanent agency with a.
that the armed services 'are to
nent
establishment of this Na¬ single individual at its head, who
provide for the taking of leave in
tional Housing Agency. It will not would have the power 4o manage
the future annually as it accrues
promote efficiency and economy, and control both private and pub¬ to the
extent consistent with milir
government agencies that
with housing as a part of
their function that are left out of
deal

as
it merely adds another level
"iof administration at the top.
It

lic

housing activities

dinate

Warns of Sleek Buying on

one

and subor¬

to the other."

>

Fenner and Beane, in addressing a luncheon group of 50 leading
Dallas financial and industrial leaders en April 27* warned that thou¬
sands of Americans with

unprecedented surplus savings, are rushing
tips and hunches and many will lose,
basic values and then blame Wall Street.

into the stock market to buy on

taken, reported Mr. Smith as add¬
ing in the injunction that leaders
advise

tlieir

with

citizenship

of

—~

—

Retired Reserve Pay
Officers in the National Guard

and

Army reserves would receive
pay benefits under a

retirement

it

speculation,

country

Warning

doubtful

Mr.

stand another panic

can

reau.

Smith

who

From the

same

also

are

practices

"fit subjects
ments."

for

Evans, Executive Director of the
Reserve Officers Association, told
a
Senate Military Affairs Sub-

ture.

subversive

ele¬

should

be

corporations,

danger

of

loss

is

where

reduced

the
to

a

minimtSn."

"Unfortunately
who speculate

or

of

most

those

buy stocks with¬

out knowledge of stability of the
concerns

behind

them,

have

the

Idea that the Securities and Ex¬

change

Commission

investments.

guarantees

All

the

SEC

does is to guarantee the truth of




-

obsolescence of any existing pow¬
er units through the introduction
of atomic power will take place

the next 10 years.
will not replace
under

Atomic power
ordinary fuels
conditions where

existing

fuel js nearby

large scale in remote places where
other sources of power are not
such

In

isolated

addition

"In

claims

to

cash

payments

of less than

$50, cash
also to all who were
discharged before Jan. 1, 1943; to
on

would

go

survivors of those who died after

discharge,

and

survivors

or

"For

enlisted

to

who

men

under

are

17

mentally disabled.
and women discharged
1, 1943, the bonds

men

Jan.

re¬

Senate Votes for
Science
A National

the
promotion of scientific
achievement, which would have
power to spend funds for research
and for scholarships to promising
science students, would be cre¬
ated under legislation which wa£
passed by the Senate on July 3.
by a vote of 48 to 18, according
to advices from Washington from
for

the Associated Press.

Military

Affairs

The Senate

Committee hac

charged on March 15, 1943, the
bonds would * be dated April 1.

The legislation,

1943, and mature in

inite

pay after at least three years of
active service. Payment would be

men

at

the

time

commissions and

held during active duty.

as

In addi¬

tion, payment would be received
at the rate of one-half of 1 % for
years

spent

on

inactive duty.

Of¬

ficers would be retired at 60.

"Major-General

E.

A.

President of the National Guard
enlisted

men

are

not

movement

as

the national health and welfare.'

they received

were

reinducted

officers.
"Loans

could

not

be

made

against the bond and they could
not

be

transferred

or

assigned.

amount

but

the first year,

re¬

cov¬

the bill, nearly all Guard
come
up
through the

ranks and the pay plan would act
as an incentive to tnenti."

2, also said;

_7/ "I

"The substitute coalition ' "bill;
drafted by Senators Smith bf New
Jersey, Byrd of VirginiapWfdshM

Massachusetts, Willis of Indiana,
Hart of Connecticut and McClelr
lan of Arkansas, andurged today
also by Senators Taft of -OMhhnd
Bevercomb of West Virginiartfoj*
lowed closely the recommenda¬
tions of Dr. Vannevar Biisb who,
as Director of the Office of Scien¬

tific

Research

and

Development,

presented the P,WP?al\fo,r :
the Foundation in his report' of

July 5, 1945, to the President.
"The substitute also,
its

according

proponents,1 reflected;; fag
accurately thanydo^7 we

more

compromise

Kilgore

bill the views of the

"

-

Magnuson.

majority of

the scientists of the country
Before the adoption -by.-th§,Seh-

ABA Advises Banks

on

Results of Analysis, of

Uperaling Efficiency
More than 4,000 country banks
participating in the cost analysis
program of the Commission.: on
Country Bank Operations of the
are

receiving from the 'Commission
comparative schedules on 12 most
important results bbfainedOfrom"
the analysis of .the .operations of
these banks. This is the - second
year of the cost analysis service
of
the
Commission: v.tou country
banks;
seen,

Its benefits are already
according to S. N. Schafer,
of the
Cost Analysis

Chairman

Committee

of

the

Country Bank

Operations Commission, who.states
in

covering letter that the aver¬
age operating efficiency rating of
the banks of 104% for 1944 had
a

increased to
for 1945.

an

average; ot 117%

These cost

schedules are
broken down in their, application
to four size groups of banks: Un¬
der $1 million, between $1 and $3

millions, between $3 and $5 mil¬

lions, and between $5 millionsiahd
$7y2 millions.
so

says:

•

The Association al¬
'7

-

"The schedules cover the cost of

handling 'on us' checks, pay-as-

checks,

you-go

cashier's checks

but S^pafor Styles
Bridges,
Republican,,^ of
New
Hampshire, declared it Would rise
to
$200,000,000
to
$300,000,000
a year.
The Associated Press also

and 'on us' money orders, making

said:

ysis

,

Even a claim by the Government

Walsh,

Association, said that although

the

carrying no def¬
simply author¬
"All claims must be submitted izing appropriation of "such sums
within one year after the proposal as may be necessary" to carry out
becomes law. The sworn statement the purposes of the foundation,
of the veteran would be accepted would establish the science body
as to the terminal pay due him
as
an
independent Government
less time he received for furloughs agency with an administrator paid
and passes.
$15,000 a year.
Senator Warren
"Men who served both as en¬ G. Magnuson, Democrat, of Wash¬
listed men and officers would be
ington, one of the sponsors, ac¬
eligible for the payments because cording to the Associated Press,
they were discharged as enlistee* estimated the cost at' $40,000,000

2Yz% of pay in the highest rank

vote oft 39

a

^viq^ Jul^

American Bankers Association
Science Foundation

advices said:

"Under the program, officers
with
20
years' reserve service
would be eligible for retirement

July 2 by

on

The "Times"

ate on July. 3 of the: compromise
gions, he points out, the high cost
of producing atomic energy would bill^the Senate strpcK" fromr'the
measure, by a vote .of *43 :to 28/aid
be_ relatively unimportant. ■*:"* •.*!■ for social sciences.v ■ »»•
?.&
^""If one chooses to build a city
at the South Pole, one must have

"basic to the national defense anc

1948.

Senate

to 24.

to

and abundant."

He suggests that nuclear power
might first be put to work on a

available.

however, failed of adoptibhlbf th^

in first

recommended

pectus and nothing more, and peo¬
he said.

Canada and the Belgian Congo,
Africa, and lower-grade deposits
in Colorado, Czechoslovakia and
other scattered regions.
Despite the possibilities offered
by the harnessing of nuclear en¬
ergy,
Prof.
Daniels
cautions
against
expecting revolutionary
changes overnight.
"It seems safe to say that no

would be dated back to the quar¬

ered by
officers

the statements,"

northern

ter nearest discharge. Thus if dis¬

stand by Major-GenHarry A. Vaughan, Presiden¬
tial Military Aide.
These press

serve

not read

in

President's

the statements made in the
pros¬

ple .do

exist

eral

in

invested

1 of.

compared with a top of 120 days
before that date.

years or

"Representatives of the War De¬
vise people with savings to invest partment and Reserve Officers
Associations presented a revised
first of all in homes, insurance retirement
bill, framed after con¬
and other primary needs," then ferences with General of the Army
if they still have
Dwight D. Eisenhower, Chief of
surplus funds
Staff, and other Army leaders^
"these
sound

However, after.Sept.

after

He suggested that "it is

treatment into the fur

this year, future leave could not
be accumulated
above 90 days,

Committee, according to Washing¬

be

tp

that has accrued

is all

same

ton advices (United Press) July 5,
that he had been informed of the

to community leaders to ad¬

their

this

lose

to

later

would

Truman, but has
opposed by the Budget Bu¬
Brigadier-General E. A.

known

heat
and
power
regardless oi
price," he says. "Certain remote
mining operations and irrigation
called up.
developments could well afford to
"In addition to equalizing termi¬
pay abnormally high prices, for
nal leave benefits between offi¬ atomic
power."
cers and enlisted personnel during
the war, the bill also continues

that

warned

destined

their savings in haphazard invest¬

ment

President

been

"that

advices we quote:

many

by

the

was

like the last one."

up

the plan

:

are

since Sept. 8, 1939, the date when
the first Naval reservists were

respective communities to plan which is said to be favored

minimize
that

the

othpr

.-jiv - ? /
v^The leave to be paid for under

Tips and Hunches

r

reqmremerits ^nd

exigencies.'

Winthxop H. Smith, Managing Partner of Merrill Lynch, Pierce,

through ignorancb of
7 The Dallas "Tapes Herald," of^
April 28, from which the above is

tarys

University of Wisconsin Chem¬
istry department to work at Chi¬
cago, says that valuable -deposits

"The
Foundation, if
created,
against them would not be valid would make grants to the States,
and they are tax free except for based on population, for scientific
the interest.
scholarships and also could enter
"Survivors of men who died in into contracts ; with universities

and handling of
cost

per

cost per

of

minute

unsecured loans,

for

employees,

minute for officers,- anal¬

exchange

service

and-

charges on checking accounts, net

.

combat

or

service would not be

eligible to claim terminal leave
because they received a half year
Ox

pay

ana allowances."

and other

institutions for conduct

of research.
'Ux

sions:

would
have seven divi
Matnematical and physical

earnings per checking account per
year,

the average sizeof checking

accounts, distribution of-.checking
accounts by size groups,
tion

of

gross

income,

.......

.....

distribu¬

and bank
„

opeiaung efficiency..

THE COMMERCIAL &

402

FINANCIAL;CHRONICLE

.Thursday, July 1SZ 194$.

with the Secretary of State from

No Veto On Peace

Which I ';wish;> to
for tne record;

^ that

\it,(Continued from first page)
> ■ dorse
that - report.
Further,

I

.

no free international nego¬
tiation ever permits anyone to
have things tell

were

agreed, to, so

my

upon

A

.

entrenched

achievement.
-

J
President, I

-At the outset, Mr.
wish

to

that I was reluctant
this latest important in¬

say

to accept

ternational

assignment, the fourth
peace'mission which has taken me
from my domestic duties in the

.

;

Senate in the last 15 months.
'

^

when,

made substantial gains; test, > .
still
far
from
total
Ahf Ves,

.

Mr.

President, thete
disappointments here

serious

are

the

world.

Peace is in¬
divisible in this atomic age. The
for

trie
■

11

them.

people are entitled to
But I say again that

have sought; the peace conference
which America has long insisted,

The

the

truth.

the

true

and

must

test

be

must

objective

the whole.,

assess

.

,?

.

A peace- conference cannot allow
itself the luxury of breaking doWn
each time some favorite passion,

self is too

desperately important;

And so, Mr. President, now let
of effective, dependable us look at the Paris record. The
peace with justice takes priority
greatest fundamental controversy
©vef every other human need,
t at the Paris conference

T1

unlimited

Thus the 21 United Nations get
the peace conference they lorig

pursuit

,

.

and the.rO in the Paris record;
shall
take care not to disguise

One
overriding consideration,
however, has governed my decksion.
Peace with justice is the no mater how nobly meditated,
supreme necessity for America fails of total conquest.
Peace it¬
and

compared. with

debate in three languages in
Council of Foreign Ministers.

.

ov£r

arose

enter it as free agents.

the

Thus the

another

takes

world
down

long step
paths toward

thorny

To the citizens at

that

points

distance the

a

in controversy
may seem relatively trivial; yet
in the final analysis nothing is
trivial which can disorganize the
were

relations

friendly

We know to

of

earth.

the

that little

our sorrow

.£-\j

^We arid the British happefr to he ^
the forces in the military occiipa- ;:
tioit b£ these / points until; these /
;

imcjficr&cceptah
any decisiqri
.siahfjeparatipris.^Oifr|df^
!1
respecting it is to have Jhe great¬ production in
Italy would be vfr* ;;
est anch the widest possible au^
tually-equivalent to taking them,
thority. behind ahy. decision re¬
by proxy? out of Britain and "outo^
specting it, no matter what it may ;he United States. <•
be.

;;.j;

J 'Tour men

U\]z. *

zzz.

sittihg in this Coun¬

cil; have tea business making any_
decisions

in / the

first
seek the

•

instance.

They should
unpreju¬
diced recommendation of an im¬
mediate peace conference of the
21 Allies who have
fought the war
together and who have a right tb

the peace together—either
this or the advice of the General

Assembly of the United Nations."
But when the
Secretary of State
found his valiant efforts unsuc¬

with liberty and justice.;

peace

rivalries, it is freighted

,

fj|
gling back to independent life.,

v:<

make

they should have; and they will

free*

now a new,,

Mthf sdiiimrtrtiif putimtiMlhariMfti; peace, treaties are concluded; i;; V
itii, tbe/vpeaceCtefsJEurc^etend tethe,
We'; are' footing - the bills;1-Under
wrirtd
hope for a such circumstances,; to take; Rus?

•

peace has
but
it
is

„•.

that .at long- last,

and at the'end of enormous *tf a!^
compliments to the
his splendid per¬ did not have ' things all our own vail, we were able to celebrate!
the Fourth of July by a unani4
formance at Paris, which was in way at. Paris by any; stretch of
vv: .the
agreement
to ' calif thfe
ifinest
American tradition; the Imagination. But that is hOt mous
V I also present my compliments to the I test«;Thetesfisiwhetherwe peace conference for ;j
sustained
the
American
ideals, confessthat£ f61£ that *it Was hot
my able friend, the Senator from
Texas, who, as usual, was a tower and whether the result put us unlike a second Declaration <j>f
*
v of strength to
the American posi¬ closer to peace with justice in this Independence, *
Or/-;
war-torn world.
I may add parenthetically to my
tion.
;
Cites peace Gains
Despite our disappointments, 11 colleagues that unlimited, debate
that
Paris
meets
this in the Senate is quite painless
Mr. President, I believe that believe

present

Secretary

;

sufficiently ^.'Trieste ^has ; now become „• a
cause ceicbre; H i nvolves so many

fundamentals

ly, since there-is

quote partially

cessful, either in keeping Trieste
in Italy or in referring the issue
to
the
peace
conference,
and
when he found that this hopeful
composition was the only way to
get

a

peace

conference at

all

or

peace itself, I think he was well
justified in his approval of this
design for the Free Territory of

There

for example,

—as,

j,
questions

collateral

were

whether; this

Russian balanoe^^ might come

surplus Italian warships.

v

froni

But the

issue which tied the Council iri

a

knot for many days was this ques¬
tion of "current production." jt

finally settled by

was

an

agree¬

which

ment

spreads this balance
of reparations over seven years,
which

creates

moratorium/for
sub?

a

the first two years, and which

sequently
shall

provides that Russia
Italy the raw ma¬

furnish

terials

the

for

ulti¬

commodities

mately to be made and paid upbn
this deficit in the reparations ac¬
counts. In other words, it will riot
be

paid from "current production."
Again, our principle has been
preserved.
.

.

.

matches light big fires. The truth
4;' It is not for an instant to l?e the
Mr, President, I have lingered
convocation
of
a * general
'denied that our inteimal prpblems
is that Paris was to stand or fall
Trieste,
under
which
human in some detail upon a few of these
peace
conference in which the
are of utterly vital concern,
A
upon this one basic composition.
rights and fundamental freedoms major disputes. There were, of
twenty-one nations which fought
There was a powerful lesson in it,
sound, sane, solvent, free America
are preserved beneath the seal of
the war together should have fullcourse, many other important de¬
is indispensable to peace itself,
too.
Given patience, fair play, the United Nations.
cisions before the drafts of these
opportunity to work together dn
A weak, a broken America would
and
firmness • in the ...Zl agree that such devices are five trea.ies could be concluded.
the terms of peace with five ex- tenacity,

u

A'

-

*

cheat the world, ourselves includ-

:

"

ed, of the

peace

leadership which

is the dearest hope of humankind.

states,
namely,
Italy;
Hungary, Romania, Bulgaria and
enemy-

American attitudes,

This

has

the

been

; The labors in which Congress is
currently engaged are of fncalcu- of the United States ever since
"Z table importance.
I regret piy the Moscow Conference of De¬
temporary absence.
Z'.t-cember, 1945, when such a peace
On the other hand, Mr, Presi¬ conference ; was - promised
not
dent, every aspiration we pursue later than May 1, 1946.
It has
:Vin.behalf of life, liberty and hap- been the American idea of de¬
; ; piness in our own United States is veloping a people's peace.
finally at the mercy of another
Mr. President, it is now accom¬
war—and what a cruel, ironical
plished. To be

have
ment

Now

.

it would be in the after¬

mercy
math

of

shima.

Nagasaki

Hiro¬

pledge

not

was

American

sought.

So it was, Mr.

•

and

....

sure,

the Moscow

broad

as

Secretary

In

President, that I opposition

the

it

the

of

wish

I

problem

of

the

hand

one

to

no

land

on

earth which

lias

a larger measure of intimate
self-interest in that objective than

promised date of May 1,
1946, came and went without the
promised peace conference.. The

delicate

.

tional rivalries collide with peace
ideas. The end product can never

the

be perfection.

What may be de¬
sired is limited by what may be

called.

From

Soviets

construed

attainable.

ment with

be

.

in

the

preliminary

peace
draft before
conference should be

peace

start to

finish

the

this
require¬
microscopic literalism.

In

there is no
support of their contention it
peace.
Failure is preferable; to is fair to say that they were
a pretense of success at the price
building upon the accepted theory
of unsound compromise or ap¬ that big-power unity is
indispens¬
able /; to world peace in the Sato
peasement.
Munich to
sonifies

*

result must

end

ground

common

this

or

warning,

but

the

not

the

Francisco

presence of compromise*
the
measure
of
success

Rather

pattern.
In opposition
contention, however,- it
is equally fair to
say thai their

is

interpretation

preservation of

princi¬ so-called

of

measure

V

The

fundamentals

upon

failure

>

is

essential

ples in spite of compromise.
No Compromise With
Before
we

principles,
and

honor

:

Principle^

went to Paris I said

we

could

the

compromise
but that the
of

the

within

dignity

United

States

of America and the world's hope
of peace with justice could ho

longer compromise
ples themselves, as
done

under

exigency

with

; pressure

upon too many

occasions.

I

believe

the

their

of ■ ■ war
previous
Ameri¬

would

of

the

status

of

"Tinder

Box"

Council

the

of

could

be

mutual

settlement except by

no

The Soviet?
(proposed ethnic)

agreement.

clung to their

behalf of Yugoslavia.

line in

We

clung to ours in behalf of Italy.
If we both were still clinging to
there

lines

those

would be

be

would

no

There
peace conference un¬

agreement and
no

no

peace.

Trieste

der

such

is

tinder box under any circum¬

a

circumstances.

It

stances.

would

sheer

become

dynamite if the present status of

first

hour-

a

date

new

for

the




forward

hope
It

upon

of

elements

the other hand.

.

.

Territory of Trieste was born and
ultimately accepted by all con¬
cerned.
It includes the city of
Trieste as a free international port
and its; immediate environs up
and down the Adriatic Coast.

The

settlement

does

not

.

.

that' the

peace

cheat

cause if Italians predominate in
this Free Territory, as we know

do,

in their
are

they

can predominate
free elections, which

own

under; their

own

of

the

June

session he asked for

delegation

instances
was-

slavia, there will be
of

tree control.

the

adamant.

T repeat By the end of June, however, the

no-

could

Let

Solution Not Ideal
me

e

because

there

are

sponsibility.
Therefore,
melan¬
choly prohets might well curb
their
gloom and give peace a
chance.
This plan is the best an¬
swer currently available to those
who are charged with the awful
responsibility of finding common
ground for peace wi h justice and
getting on with the job.
Mr.

President, the Italian treaty

oresents

lems.
the

formidable

very

Not the least of

was

disposition of Italian colonies

in North Africa,
ca-

prob¬

them

and

namely, Cyrenai-

which
ogether comprise Libya.
The
final agreement permanently sep¬
arates
the
colonies
from
Italy,
gives the Council of Foreign Min¬
isters one year in which to agree
upon a formula, and in the ab¬
.

sence

of

transfers

such

any

the

colonies

.

;

r

"

■ ■

i

be - entirely' clear, about

view

,

that Trieste

.

should

have gone to Italy. As recently as
30 I filed a memorandum.

June

headlines which
such
ac¬

of

benefit

bother

cords.

about

>

...

"Least Defensible"
The

.

agreement
automati¬

cally to the Trusteeship Council of
he United Nations.

South

in Italy.

these

all

of

ible

Tyrol area remains
This is the least defens¬
decisions

on

grounds because the area
is predominantly Austrian.
The
decision, however, actually was
made a year ago at the London
conference and Paris had no jur¬
ethic

isdiction except over
"minor rectifications."

decision

the

that

the

rests

area

permissable
Defense of

upon

the fact

has been in Italian

sovereignty for 25 years, and that

Italy became our ally while Aus¬
remained our enemy to the

tria

bitter end.

,

.

'

*

•«

<

,

constantly remembered
decisions are subject to

Let it be

Tripolitania,

that

all

review, and to new recommendrif
tions at the hands of the peace
conference, where the judgment of
nations, rather than only four,
will be taken. Let it be further
remembered that the forum of the
21

United

Nations is ever available,

in years to come, to deal with un¬
toward
eventualities.
If they

and security, or if

Thus, from our viewpoint, hu¬
rights and fundamental free¬ they prove to undermine the pur¬
doms in these colonies are amply poses of the United Nations, any
such situations, regardless of or¬
safeguarded.
Thus, again, a
igin, fall within the jurisdiction of
great principle is preserved.
the General Assembly under Ar¬
A third major perplexity had to
ticle 14 of the Charter.
man

.

.

.

do with Soviet demands for

rep¬

In
other words,
we
are
not
There was
building a static world in which
never any serious question in the
Council of Foreign Ministers con¬ only force can rectify the errors
of yesterday. I may be permitted
cerning the global sum of $100,to speak wiih deep feeling on this
000,000 [the amount asked by;
matter because it was my privi¬
Russia], nor was /here any dispute
lege at San Francisco to initiate
that it should come, as far as pos¬
and
develop Article 14.
I was
sible j froiri surplus, war plants in
happy; to note that Secretary
Ita!v\ from external Italian assets
Byrnes, responding to an inquiry
in Hungary, Rumania, and Bul¬
along these lines, confirmed this
garia,
and
a
few
incidental thesis when on July 5, 1946, he
sources.
We figured these assets
wrote in part as follows:
)
at
around
$60,000,000.
Moscow
"We all know that the: world
figured them at around $22,000,does move and that, if the use qf
000. In 'either, event, the contro¬
versial
ques ion
was,
whence force is to be avoided, ways must

from Italy;

,v.

«■

found of facilitating changes
by peaceful means."
be

•

Disagree

;

on

Reparations
"Reflect Facts of Life"

The Soviets demanded this bal¬

ance' out of Italian commodities in

my own. view of.this situation, fit" current production/ We and the
is far from ideal.^ -It is my
per-" British insisted that Italy's current
sonal

en¬

some

no

'

1
f". v-C

i
-

-

•*

Tries

conies the balance?

real basis

Yugoslav complaint;. r

;•.

con¬

At the April sessions he
asked for June 15. " At the start

we

initiating peace in Europe,
particularly in its cockpits.

arations

.

Italians of their ethnic rights, be¬

they

might take
from the

couragement

threaten peace

•

.

under
thesecircum¬
stances that the plan for the Free
was

smaller

ference.

Soviet

continuing

toward ' peace;

the

Council reconvened in April, Sec¬
retary Byrnes began demanding

July -15. - -In both

inarch

reasonable

offering

<

sible

-this

this

happen if

orecedents for the kind of United
Nations which will take the re¬

Certainly they would be just, ns
free as they would be under Ital¬
nations b£ this earth which stood
ian
sovereignty,
and
certainly
shoulder to shoulder -with us in
they will be just; as safe and
the trenches of this late war, now
probably much safer under the
victoriously concluded. <
wing
of
the • United 'j .Nations.*
It was upon this rock that both
Meanwhile, since. 86^ of the area
recent Paris Counciisdearty split. of Vehezia
Giuglia goes to Yugo¬
tion

delegation at Paris did not
compromise with principle in the
compositions which
made
pos¬
can

carry

unity to the point of
monopoly and dictatorship id the
big powers, to the utter deroga¬

princi¬ From- the

too often

was

to

would

of

Unfortunately

I
i

labor.

never

mapping any sort of peace for
Europe and the world. . . .
a

and

out

what

to

in

Trieste

world

The

research

vast

and

.

agree

other
as

treme difficulties which are faced

,

negotiations where inevitable na¬

the

volved

problem

on

most

uncertainty were to continue ihdefintely.
Therefore the choice
our own.
trouble
was
that
the
Moscow
lay between a stalemate, which
Now, Mr. President, in a pre¬ Agreement had also said that the
spelled inevitable disaster on the
liminary Way I submit a few gen¬ four great powers, Russia, Brit¬ one
hand, and a decent cdmposjieral observations about ail peace ain, France and
America, must tion within the ethnic
principle
,

On

illusions

Furthermore, there are no true
precedents for the Free Territory

impossible ..to

The

ceeding panacea.
hand i have no

self-suc¬

a

of

the

..

I know of

of

sort

any

Foreign
Ministers confronted, and on the
other hand it best typifies the ex¬

Soviet

no choice.
I have responded to have
always regretted this stric¬
y^the urgent request of two Presi¬ ture. After the peace conference
dents and two Secretaries of State the last word
again reverts to
to participate in this spade work the
four
great powers in the
for peace. Regardless of politics, Council of
Foreign Ministers. But
which have no place in such cdn- the
conscience
of
the
Allied
siderations, I shall continue to world will have spoken in the in¬
make every contribution within
terim, and it speaks with super¬
my power to the effective organi¬ lative
authority.
zation of Security, of peace with
Smaller Nations Ignored
justice for us and for the world.

is

least

because

was

Foreign Ministers operates on the
^made-my^ehoiceH^^
lodge final plenary power in the
principle of
unanimity.
There
obligations. Indeed, I felt I had ultimate
peace
conference.
11

.

no

I

Indeed, there were literally hun¬
dreds of such decisions which in¬

not go on with the business of at

the

of

it

Council

the

encouraging.
I
illusions that this experi¬

fact that
most of them resulted in prompt
and harmonious agreement, with¬

speak

Trieste,

dangerously
which

wished and

face

was

as

historically

find friendly

ern

.

,

not

for Eastern Communism and West¬

democracy to
common ground.
dearest dream of the Government
Finland.

it is possible

The

Secretary
warned
that
methods of such review must not
be

-too

readily

available''

lest.

must not be burdened in they invite confusion, but he spe¬
fashion Which interferes with cifically pointed to the forum of

economy
any

her economic recovery,

particular¬

the

General'Assembly

as a means

Volume 164

Number 4508

.

THE COMMERCIAL &

"of facilitating needed changes by

'•peaceful means."
7
Mr. President, I come to the
final chapters of the conference.
:>*
They are not encouraging, but
they reflect the facts of life as we
/.
find them and not as we would

nomic unity .of Germany and rec¬
iprocity between the four zones]

wish them to be if

-»

ours were

an

i'

'

exclusive -power of direction; But
they deal with our most vital
peace conundrum and »fhey eihj'Jphasize both the difficulty and the
nfeed"

for'! the

most

earnest

|c impartial efforts, that

can

and

possibly

be made to bridge the
great gap

^ between Soviet. thinking and ,the
rest- of us ire'spectihg Germany and
^ Austria, and - French thinking and

p-the rest of us respecting the
r Hhineland and the Ruhr,
T.The lesser treaties: while' iiidis>

■

■iM pfensable

tjwo other treaties to end the war
jkdth Germany and Austria. Some

unless it is voluntary evolution in
the direction of voluntary rec¬

4

4

FINANCIAL CHRONICLE

of the

implications in this failure
to even start the treaty process are

Snpleasant to contemplate.

i,

be

must

tdrized,

,

she

ft

denazified

this

can

time

and

for

demili-

keeps,

so

practical
Without

an

problem

may

and

immediate

answer,

answer.

the German

approach

catastro¬

phe this winter,

if we could agree

upon the

five;

should be able to agree upon
two.. Rut it .would be selfdelusion to refuse to face realities.
Someone. said at Paris that if

we

the

There is nothing
Agreement, or any
agreement, which requires this recent Council had been con¬
us to
France and
accept catastrophes by de¬ fined ; to America,
fault. Nobody has the moral right .Britain, it would have achieved
total • agreement, including pre¬
to veto peace.
liminary plans for the German
i
Cannot Veto Peace
and
Austrian
treaties,
in
ten
Mr. President, I regret to say days.. This is simply another way
that the situation regarding an of ^ saying
that
Eastern
eomr
Austrian treaty is no more stim- munism and Western democracy
in the Potsdam

other

rise

never

demanding

a

Aus.ria

many

for

peace

treaty

weary

with

months.

again as an
Secretary Byrnes asked the
pillage and to plague Paris conference to initiate this
the earth. -We must cling tena¬ desperately important undertak¬
ciously to this common purpose ing.
He presented
a
tentative
because, at this point, it is our draft and asked that it be referred
only bond,
.o
the
Ministers?
deputies for

i

.

.

.

aggressor to

?

/;

\

i

"Unfortunately

the' pattern
to study
and
recommendation.
achieve this result, involving as it France and Britain agreed. The

inevitably

does

the

social,

eco¬

nomic and political future of Germany, is a matter of appalling

Business Failures

Soviets
Mr.
me

declined.

■

President, those who hear

will

understand

that

my

mocracy," although i this is the
objective to which both profess to
subscribe.
The great trouble is mutual dis¬
trust
and
suspicion which the

"iron

curtain"

between

and

us,

which the insatiable Soviet appe¬
tite
for

proselyting and propa¬
ganda do not help dispel. Yet these
things must be dispelled—not in
pretense, but in fact—if we are to
get

on

with the vital business of

re¬

and

France

it

has

which have emanated not only
from official Warsaw but
from

me

While tentatively approved by
Britain

been

official Moscow and from the in¬

Comunist

tegrated

press
all
openly condemned by the Soviets.
around the world.
I have heard
I - shall always
think,. however,
that if this proposal could have infinitely much in all these inter¬

First, you should understand,
with complete conviction, that we
deeply respect the great Russian
people and their inalienable right
rule themselves

to

to

suit

them¬

selves, precisely as we insist this
actively pressed by us when
right for ourselves and others.
:
it was first proposed in
governments about the sanctity of
Second, you should understand,
my Sen¬
the Yalta and Moscow and Pots¬ with
ate speech of Jan. 10,
complete conviction, that we
1945, if it,
dam Agreements. Suffice it to say are
-Instead of power
just as determined as you are
politics, could
have been the Yalta
inspiration, upon this score that it is long past that military aggression — from
I we and
the world might have time for those who were respon¬ any source and no matter what
«: avoided
many of our subsequent sible for these agreemen s to make its
guise shall never curse the
them effective in behalf of a truly earth
tragic errors and anxieties.
again; and we are enlisted
free Poland.
vi
It was the short range, the im¬
in this cause for keeps.
And you
mediate
I make this comment in connec¬ shou,ld understand
problem
in
there is no
Germany
been

*

na

.

.

ional

conferences

from

other

006,000

liabilities,

$3498,000 liabilities in June

a year

ago.
All groups into which, the re¬
port is divided, with the'exception
of the wholesale group, and the

sidered

the wholesale and

only

construction groups had more lia¬
bilities involved in June than in

May.

Manufacturing failures in June

\

Here

the

not

only acute;
they were often acrimonious. The
basis of trouble is the fact that

[in Austria],

persons

The final

major disagreement of
the Potsdam Agreement ordered
he Council came when Secretary
Germany to be handled, during
Byrnes unsuccessfully sought a
the

occupation,

as

economic

an

treaty guarantee from Yugoslavia
unit, but it also divided Germany that Italians left in ceded
territory
into four zones of
military occu¬ should be protected in their ''hu¬
pation.
The result is that
man rights and fundamental free¬
Germany is being administered in dom."
Mr.
Molotov
replied
four air-tight
compartments.
that
.

.

.

.

zones are

^intense suspicions.
i

.

.

.

.

Everybody wanted an investi¬ ternal
Nobody could agree as to mestic
kind of an investigation. notice

gation.
what
.

The

upshot

.

Yugoslavia is not an enemy
separated by state; that it has its own constitu¬
tion and laws and requires no ex!,
.

Worse, the

.

;>•

.

i

no

was

that there

/.•;! do not

equipment,

and

-

another $10 million for
equipment
metallurgical and chemical

for

industries. Of the $170 million for
new

equipment

$60

orders,

million will

be

roughly

for

various

transport equipment, $70 million
machine tools,
construction,

for

and other mechanical in¬
dustrial machinery, and $25 mil¬
lion for agricultural
implements.
power

"An

to

additional

be

devoted

$100 million

to

financing

purchase of industrial

is

the

mate¬

raw

rials, $50 million of which will be
for solid and liquid fuels, $30 mil-,

lion for steel,; and the
remaining;
$20 million will be used for the
purchase of other industrial raw

fell to 25 from 41 in May and lia¬

materials such

bilities

rubber, and chemicals,

down

were

to

$1,996,000
in June from $2,0-36,000 in May.
Wholesale failures in June num¬
bered

the

4,

same

in

as

May,

but

liabilities were up to $80,000 in June from $16,000 in May.
Retail failures in June numbered
24
with
$661,000
liabilities
as

against 26 with $1,323,000 liabili¬
ties in May.
Construction insol¬
vencies

June

in

to 13
with liabilities of $262,000 from
eight in May with liabilites of
$191,000. Commercal service fail¬
ures in June were down to three
were

up

Francisco

Reserve

Districts

liabilities involved

more

"The

the

■

new

services, including engi¬
neering and other technical seryi

ices and ocean freight which
may
be rendered in connection with
the

foregoing items of equipment and
industrial

raw

"Purchases

materials.

financed

by
ad¬
credit will
be made through French
private
importers, except for imrchases of
vances under the new

such essential items which for the
time being have still to be han¬
dled through governmental chan¬
nels.

The

Agreement

provides

that the

Export-Import Bank will
underwrite letters of credit issued
by commercial banks if requested
by the French. Privately pur¬
chased

equipment

financed
will

under

insured

be

and

the

materials
credit

new

against

marine

and transit hazards under 'con¬
tracts of insurance providing for
the

payment

indemnities

of

in

dollars."

Exporters and others may bbtain information regarding French
orders to be financed under the

in June

credit from the French

new

eco¬

nomic

representative at 1800 Mas¬
sachusetts Avenue, N. W., Wash¬
ington, D. C.
■
1

Senate Votes

Export-Import Benk

Vocation Fund

signing of the agreement,

embodying

terms

of

of

credit

of

States

Credit to France by

and

conditions

$650 million from
the Export-Import Bank to the
Republic
of
France,
was
an¬
a

cotton, synthetic

or roughly $90 million, will
be used for the payment of United

than in May.

The

as

remainder

credit,

had

Annual Federal outlays for vo¬

<

cational
were

training

education

and

boosted by the Senate from

the House for consideration, would

with

Third,

you

should

understand,

are

serves

our

mutual

good-will.

nounced

McC.

July

of

Directors

end

the

by

of

William

States.

France

of

war

France

between

that

the Bank;

May in connection

United

had

of

settlement

counts

Bank

13

Martin, Jr., Chairman of the

Board

called

Fourth, you should also under¬
stand, with equally complete con¬
viction,
that
we
can
not
be
driven* coerced, or pressured into
positions which we, decline volun¬
tarily to assume; and that we will
not "bargain" in human rights and
fundamental
liberties
anywhere

on

and

the

Martin

re¬

Mr.

the

last

Export-Import

year

credit

ac¬

extended

to

of

to

seek

help

workers

war

former service men

adjust to

a

and

peacetime job

put

been

this 10 cents each year

requisitioned, but not

tracted
new

con¬

for, under lend-lease.

credit

it

is

The
announced "is

for reconstruction purppses and
on
terms and conditions similar

and

women

or

trade.

The plan would be for States

$550 million
the
purpose
of purchasing
products and services which had
a

for

to

50 cents for each Federal

up

dollar

the

first

year,

increasing

until the

amount is dollar for dollar at the
end of five years..

From the Asso¬

ciated Press .we

also,quote:,.' >
"Regardless of population, each
advice in respect to do¬
to. those of other reconstruction
Mr.
President,
in my view,
matters.
Mr, Byrnes gave
credits
of
the
.Export-Import State would be assured at least
peace hangs
chiefly upon three
tha- the United States will
Bank. The credit is. available up $40,000 each year for three pro¬
factors
which
are
inextricably
on

earth.

seek these protections at the peace
to June 30, 1948. It bears interest
interwoven. conference a few days hence.
at the rate of 3% per annum, and
(1) The dependable and effec¬ the
President, to
The need for them will not be
principal is repayable in 20
tive operation Of the United Na¬
overemphasize
these
disagree¬
years in semi-annual installments,
lessened
in
enlightened
world tions in, behalf of justice cour¬
ments.
I
am
simply reporting
beginning on Jan. 1, 1952."
frankly upon the perplexities of opinion by the bitter- tragedy of ageously sustained by collective
The advices from the Exportone series of
V;"" ■" \Yv,r
episodes to indicate the current order for the legalistic security. Import Bank further State: "The
: that
not even the Senate, wres¬
(2) The successful outlawry of new credit will enable the Re¬
assassination of General Mikhail¬
tling with OP A, treads a more
atomic bombs and kindred instru¬ public bi France to finance pur¬
troublesome path than does an ovitch. *;!l
ments of sudden, overwhelming chases of United States products
international council on the trail
mass
destruction, .under a ..tight and services for the reconstruc¬
>;■ Must Face Realities
of international consent. I am sim¬
system of .total discipline which tion of Metropolitan France and
Now
Mr.
President, let me
ply suggesting to those who may
makes bad faith impossible.
French Overseas Territories.
be impatient with diplomatic de- briefly, sum up. The major pow¬
"The major part of the credit,
(3) The development of depend¬
;. lays and futilities that it is much
ers have, agreed upon five treaties able • and
warranted
friendship or approximately $470 million, is
: easier
to be critical than to be
to be devoted to financing the
to end the war with Italy, Hun¬ between big
and little nations;
•,
and
^correct. , . ,
particularly
between
the purchase of American equipment.
/:'ilSo far ^ astthis meeting I of the, gary, Rumania, Bulgaria and Fin- great Union of Soviet Socialistic A sum. of about $300 million will
Paris Ministers is
concerned; no land, . . . The major powers have Republics and the great United bp used by the French to pay for
progress was made; [toward eco- not agreed upon any phase of the States of America.
various equipment orders already
.

will be

con¬

at the

the Paris debates by Mr. Molotov
in the consideration of displaced

subject.

were

mining!
for',

equipment, $10 million

electrical

,

for

million

prepared
for
enlightened,
progressive
cooperation
with
every land which invites and de¬

ers

this

for

•

construction group had fewer fail¬
ures in June than in MajK- When
the amount of liabilities is con¬

million

with complete conviction, that we

thought of conquest in our souls.

upon

struction

compared

as

with 92 in May, involving $3,656,000 liabilities and 61
involving

$15

the approval of the credit by the
Board of Directors was announced

tion with this discussion only be¬
cause the Poles were brought into

differences

tools,

equipment, $10

$14,200,000 to $30,500,000 under a
measure,
sponsored
by Senator
Walter F. George (D., Ga.), ac¬
cording to Associated Press ad¬
vices of July 5 from Washington.
The legislation, which was sent to

.

which disclosed the true
depth of
cleavage between the great pow¬

,

for transportation
^equip¬
of all
sorts, $40 million for
agricultural implements and
ma¬
chinery , $25 million for machine

volved.- Business failures in June,
according to Dun & Bradstreet,
Inc., totaled 69 and involved $3,-

t

,

million

ment

lower in amount of liabilities in¬

peace on earth. Particularly there
{ disagreement. The actual military
port is confined to the nations and must be dependably dispelled any
; suppression of reborn aggression the treaties immedia
ely involved attempt to organize the world
is now inextricably interwoven in the Paris conference. This does against the
Soviets; on the other from 13 in May and liabilities
with these other
complex consid- not mean that there are not other
hand, that the Soviets are at¬ dropped from $60,000 in May to
; erations. For example, the Amer
irksome
problems.
There
are tempting to
organize the world $7,000 in June.
lean offer of a long-term
military plenty of them.
When the country is divided
One of the most against our Western civilization.
contract, under the final auspices
glaring, in my view, was the fail- War between us would be an un¬ into Federal Reserve Districts, it
oi the
United Nations, to come
ure
0f Poland to carry out the thinkable
is .found
that only the: Boston,
calamity, which I am
immediately to Allied military aid democratic
pledges which were certain they, as well as we, ab¬ Richmond, Chicago and Minneap¬
against any new German aggresmade in the Yalta and the Pots- hor. But
olis Reserve Districts had more
good-will and good faith
sion now
seems
to attract reladam Agreements,
between us will continue to be failures in June than in May. The
tively little interest, although it is
difficult until we reorganize our Kansas City and Dallas Reserve
the maximum proof of our
Mikhailovitch Tragedy
good
Districts were noted in that they
mutual attitudes.
faith and the maximum assurance
I have made vigorous and re¬
did not have any failures in June.
of the earliest feasible termina¬
Peace Factors
When the amount of liabilities in¬
peated protests on this score in
tion of the mass
occupation of respect to the situation and I
It is in this 'spirit that I would volved is considered it is seen
Germany by alien troops, includ¬ shall continue to do
that the New York, Richmond,
so, despite suggest just a few simple truths
ing our own.
V;
the bitter personal attacks upon to Moscow.
Chicago,
Minneapolis
and
San

Opposition of Russia

placed. - These include
sprite $180

June

in

Business failures in. June were
lower in number and; in. number
:

Bui

-.

w,

40 3

of
liabilities involved than in
iprocity. But by no stretch of the
May. - When cohipared with June
le prospect is ho darker than it
imagination can the blame, pres¬
a
year ago, business failures in
ent or future, be laid at our door. was, upon past occasions, with the
June were higher in number but
We have pointed the way to a Other five, I prefer to believe that

in a •preliminary way,
are on the perimeter of the
prob- ulating a tlthe moment.^Austria, are. the forces, which confront
|
lem. Germany; and Austria are at ,1Jke Germany, is in the cockpit of each other in planning for a new
the core,
Fortunately there is one Europe, where the most important and better world. They differ in
simple theme upon which all four ;ana most dangerous peace factors ideas* ideals and ideologies. For
of the major powers
relentlessly are to be resolved. The Govern¬ example, they certainly could not
agree,
namely,
that
Germany ment of the United States has been agree upon a definition of "de¬

?

c-.\

investigation.

mean, Mr.

.

home

education,

Agricultural

grams:

and trade and

economics,

industrial

education; and $15,000

annually for vocational guidance
and for the new

training and dis¬

tributive trades.
"The

annual Federal

would be

tural

that

education,
most

outlays

$10,000,000 for agricul¬

of

with

this

testimony

would

go

to

training. adult farmers; $8,000,000
each for home

economics and in¬

dustrial education;
vocational

$1,500,000 for

guidance, and $2,500,-

„

.




000
j.

for

distributive
»

occupational

THE COMMERCIAL & FINANCIAL CHRONICLE

464

(Continued from first page)
the Axis.
They had

governments. So we started there.
The whole world knows how

greaj; the .struggle has been dur¬
ing the last ten months to har¬
monize,, the views of the great
powers so. as to make

presentation

possible the

tentative

of

<of treaties: to a peace

drafts

conference,

That

bringing:on the
Allies
sands

Paris

July

on

were prepared to yield, we
proposed that the issue be
left to the; peace conference, but
the Soviets would not agree.-

then

This left

Union,
Kingdom,
France,
the United States, the

United

China

and

states

which

are

represented on
Council of Foreign Ministers,
sixteen other
states
which

the
the-

took an active part in the

againstthe European

fighting

Axis, Will

fee represented at the Conference,

While

-

the

Council

Ministers has made
tions

the

to

as

of

Foreign

some

sugges¬

organization

and

procedure of the Conference, the
Conference will be free to deter¬
mine "its

own

■

organization

arid

procedure.
It

.

was

proposed that the meet¬

ings of sub-committees should be
But on our objection this
prevision was*eliminated. I gave
far

so

the

as

United

States is concerned, it will use its
SnUuence to open to the press the
meetings of the Conference and
■of Ste committees.

The Conference will make only
specomriiendations.

But the mem¬

bers of the Council

are

committed,

in drafting the final texts of the

treaties,

to consider the recom¬
mendations of the Conference and

:;t^;;;;tQ:gr0jiec^:any: of them
trarily. ' "

arbi¬

.hope that the Council
of

Foreign Ministers will consider

the

recommendations

and

the final texts

upon

agree

that the

so

serious

more

than

adjourns,

the' conference

v.

The

Yugo¬
Governments and
possibly
others
would
not
accept
that
treaty.1
'0
r
If

made

we

the

Soviet

of

treaties

agreed

upon are not the best which hu¬
man

are

Wit could devise. But they
the best which human wit

fccsald^get; the .four principal: A^
lies ::to agree upon,
They^ repre¬
sent as; satisfactory an
approach
in

this

imperfect

rind

be

a

source

of

greater prosperity to its neighbors
than would be the

case

if it

were

joined either with Italy or Yugo¬
slavia.

separate

a

and

peace,

work

to¬

gether to make it so. Unless they
work together, there can be no

No final
the

on

decision

was

disposition of the Italian

colonies.

Senator

foreign relations and
knowledge of the spe¬

our

intimate

cific issues made their counsel in¬
valuable.

The greatest struggle

was

over

the Italian treaty, and the great¬
issue involved in that treaty
was the fate of Trieste and adja¬

territory along the western
shore of the Istrian Peninsula. The
American

delegation, supported
lay the British and French, urged
that Trieste and adjacent terri¬
tory, which are predominantly
Italian, should remain with Italy,
and the predominantly Slavic hin¬
terland ,should go to Yugoslavia.

The Trieste Controversy

The

Soviet

Union

strongly that Trieste
cent territory should

arid

adja¬

not be cut
off from its immediate hinterland.

While it admitted that
and

a

few cities

towns

along the coast were
predominantly Italian, it urged

that the Istrian Peninsula should

be regarded as a whole and that
so

regarded it was. predominantly
This view was also

foresee the diffi¬

culties whicti would arise.
Even if

of

us presented
disarmed Italy
against the
army of Yugoslavia only so long
as our troops held it for her.

a

one

no

treaty to Italy,
hold

could

a

Trieste

The French Proposal
;

In

effort to break this dead¬

an

the

lock

French

informally sug¬
gested that Trieste and adjacent

territory be separated from Italy,
but not ceded to Yugoslavia, and
that its security and integrity be
internationally guaranteed.
At first

no

the

more

it seemed to offer a rea¬

more

basis

sonable

liked this proit was studied

one

nosal. But the

for

agreement.
It
was recalled that before Italy en¬
tered World War I she had prooosed that the Trieste area should

autonomous state.

an

The

Our delegation insisted that

the
protected by the
United Nations and not by joint
agreement between Italy and Yu¬
should

area

be

French favored

Italy
as trustee for all the colonies, and
at
the April session the Soviets
expressed their, willingness to ac¬
cept the French proposal.
Except for certain reservations
in respect of Cyrenaica, the Brit¬
ish were willing to accept our
proposal to have all the colonies
placed under the trusteeship of
the United Nations.

coming

a pawn
other issues,

of

defer

we

It

a

in the settlement
I suggested that

finally agreed that the
ultimate disposition of the colo¬
nies should be made by the four
principal Allied powers in light of
was

the wishes and welfare of the in¬

world

and
security, taking into account the
peace

views of other interested Govern¬

cause,

the

Italian

while Italy

as

claims
one

be¬

of the

Axis partners was responsible for




fundamental questions, we assume
that the Soviets do not
regard
these issues as fundamental and
will

the

four

accept the decisions
conference.

of

the

be

Allied
the dis¬

used

and
to

and

ing in April I had little hope
would ^
After

reach

ever

the

a

in

pawn

the

struggle

a

arid

East

the

1

•

West

f

German

is

militarism again
given the chance to divide

be

conquer?

,'^.4>

To that question there must

be
unequivocal answer, for equiv-

an

'

ocation will increase unbearably
the tensions and strains which

t

of good-will everywhere are
striving to relieve.

a

men

The

stated

Soviets

that

our

proposed treaty was inadequate;
that it did not assure the denazi¬
fication

'

*

of

democratization

and

>

^

that it did not as¬
sure
them
reparations.
But
these are political matters which

Germany;

already dealt with in the Pots¬

are

Rising Hopes of Agreement

as

between

dam Agreement.

I admit that
prior to our meet¬
we

agreement.

April

Our military

agreement of June

•

1945, provided for the prompt

5,

disarmament of armed forces and

meeting I had
Now the prospect for
peace treaties with five countries

demilitarization

is

disarmed, we shall see that she
stays disarmed. We cannot under¬

bright. Ninety days after ratifi¬

cation
tion

of

those

armies

treaties
be

must

occupa¬

withdrawn,

except where they protect

line

a

By

of

25-year

our

stand Soviet

ple of the occupied states

ple

breathe

have

from

as

free

live

can

We

people.

the road back to peace.

on

desire

no.

the

to

conceal

we

pro¬

opposition, especially

Generalissimo

as

Stalin

Dec. 24 agreed

and

plants.

war

treaty

pose that when Germany is once

of communications. Then the
peo¬

I

principal

Is German militarism going to

with
this subject.

on

me

last

on

•

in princi¬

The Soviet representative stated '

he had reports that in the British •
zone
the disarming of military *

American

powers

.

.

is

It

true

the

that

Free

Ter¬

ritory of Trieste is predominantly

Slavs

in

this

territory
placed under alien rule. They
given home rule.

of the
l

make ourselves believe

local population.

Pending the final disposition of

own

are
are

The people will

Assembly and the

The

I like about the
agreement on the colonies is that
the ultimate decision does riot re¬
thing

to administer the laws.

quire unanimity. Failing agree¬
the four powers, the
decision rests with the United

be subject to

Nations.

elect

the

officials

They will
supervision only by

the United Nations Security Coun¬
cil and by an impartial governor

appointed by the Security Coun¬
cil.
The

prosperity and welfare of

ment among

The
their

Soviets

countries of Central

Europe. It is

the natural outlet of Central Eu¬
rope to the Mediterranean.
The

only

finally

objection to the

the Dodecanese

the permanent
the islands.

Trieste are linked not only with
Italy but with Yugoslavia and the

withdrew
cession of

to Greece and

to

demilitarization of
\

It was,
ficult for
on

sentatives of that Government as¬
serted that if Trieste were given
to Italy they would divert traffic
Fiume

or

some

other

port in

Yugoslavia.
Best Means of

Preventing Conflict

Because of the bad feeling be¬
tween the two peoples in that
area,

the control by the United

Nations may prove to be the best
means of preventing armed con¬
flict and relieving tension.
If the

area

Italy
and

joined either
Yugoslavia,
its

were

or

economic

relations

with the other would suffer.

Its

industries might be unable to at¬
tract the necessary capital arid
labor

might have difficulty find¬
ing employment. |;;
If

friendly relations

are

main¬

do not exist

that they

that they are less

}

While

the

Council

=

made

progress toward peace with

and

the

made

ex-satellite

no

at

progress

real

Italy

states,
all

on

agreement
The Soviets in¬
they were entitled
$100,000,000 repara¬
to reach

•'

armed forces.

^

-

it

Wants a

Gei^lh Settlement

I

certainly made clear in our
earlier meeting in Paris that the

»

the

proposed guaranty of German de- >
German and Austrian questions.
militarization was only a part of
Perhaps the time taken in discus¬ the German settlement. I pro¬
sion was not wholly lost, because
posed then and I proposed again >
our experience suggests that un¬
at our recent meeting that depu¬
derstandings,
particularly
with ties be appointed to start work on ■-<
our
Soviet friends,
cannot be the whole settlement which the <
reached

have
gone Allies expect the Germans to ac¬
through rounds of verbal combat, cept. The British and French ac¬
in which old complaints are re¬ cepted this proposal. The Soviets
peated, past positions reaffirmed, rejected it.
until

we

provoked.

reparations.

limited it to the disarmament

we

of

important than they really.; are.

I

am

The Soviets suggested that we
have

special

a

Council

Soviet Attitude

however, extremely dif¬
us

or

differences accentuated and crises

^ *

Reparations;

railroads entering Trieste sisted that
through Yugoslavia and are to at least
controlled by Yugoslavia. Repre¬
tions for the devastation of their

come

political

to

German Disarmament
;

people the forces was not being carried out.v
do not agree upon
great
struggle and tremendous The British representative stated ;
position to be made of the colonies, difficulties the
four Governments
he had reports that in the Soviet
within a year after the coming
had in harmonizing their views to
French. Our proposals were ac¬
zone
German
war
plants were »
iatp force of the treaty, they have the extent
they did on these being operated.
cepted.'"^"*
v * ?:
bound themselves to make such
treaties. In the long run we shall
We
asked
that
the
Control
The proposal as finally agreed disposition of them as may be
have a much better chance to
Commission
investigate the ac~
upon leaves Gorizia and Monfal- recommended by the General As¬
work out our problems if we and
cone with Italy in the north and
curacy of both reports.
The Brit¬
sembly of the United Nations.
our Allies recognize the basic dif¬
includes within the Free Terri¬
ish and the French agreed.
But
The four powers have further
ferences in our ideas, standards
the Soviet Government would not
tory bf Trieste the rest of the area agreed to send commissions to the
and methods, instead of trying to
west of the agreed ethnic line.
colonies to ascertain the Wishes
agree to the investigation unless
as, jhri Soviets proposed,
by the four principal Al¬
powers as suggested by the

end not

urged by Czechoslovakia.
The Soviet Union further urged
that greater consideration should

given to the Yugoslav claims

tacked and devastated.

.

are

ments.
If

some questions in
Italian
treaty
and
other
treaties ^ on which we were un¬

less hope.

final decision.

and

by the Soviets.

There remain

peace

In view of the difficulty the
Foreign Ministers were having in
reaching agreement and the dan¬
ger of the colonial question be¬

habitants

with

than

materials to furnish manu¬
factured products to the
Soviets,
also required agreement
that
the imported materials needed
by
Italy to make these deliveries
should be supplied
we

able to reach final agreement. As
the Soviet delegation took the
position that they would not agree
to the calling of the
peace conference until the four Governments
had harmonized their views on

difficult to

Yugoslav.

be

hav¬

our

ships.

fo

argued

tee jointly the continued disarmament of Germany.
Had America been a party tow

the

est

cent

In order to avoid

stated they wanted a base in the
Mediterranean for their merchant

not

coiin-;

such a guarantee after World War*!We further required the
Soviets I, World War II would never:w
agree;' that ' such
deliveries, have occurred, arid the Soviet
>1
should not commence for two ion would never have been at¬

with them, ceding Trieste to
Yugoslavia; If Italy refused, it is
peace

the

iri

other

to

ly the Soviets had requested the
trusteeship of Tripolitania. They

Yugoslav

elect their

and

reparations were taken
Italian production, the de¬
liveries must be arranged so as to

in

tries who want to be their friends

raw

reached

Senator.

Connally

as

from

Gov¬

Vandenberg, whose Jong experi¬ Assembly will
ence in

by the aloofness, coolness and hos¬
tilitywith which they.< have,: re-'-'-':?
ceived America's offer to guaran- *

But we re¬
quired them to agree that in so

raised

have

those

ing to finance Italy's purchase of

the

Jonly the judgment

Up# to $100,000,000.
far

years.

Italian Colonies

of the
President and the Secretary of
State,- but also the judgment of

United

of

reconstruction.

concerned

most

not

the

»

minds

is fair and workable if the peo¬

ples

States in these matters represented

of

^

they

We reluctantly agreed that the
Soviets could receive reparations

avoid interference with economic

K city and p pre-, the colonies, they will remain un¬
domiriantly Slav outside of the der the existing British military
city, But neither the Italians nor administration.

The. attitude

realize the doubts and suspicions

which

;

I am convinced that the agreed
solution of the problem of Trieste

Italian U ingthe

war-weary world.

current or future production of
Italian factories and shipyards.

ernments would undoubtedly de¬
mand that Italy make a separate

to the return of
peace as we could

hope for

and

come a threat to their security of
to'the security of Europe^^^fe^jl
;
I do not believe that the Soviets <

It will be recalled that original¬

lied

Treaty grafts,

The*, drafts

prosperity

Soviet and

tre&ties^may ^be signed by & the. goslavia
delegates 3 before

little territory may enjoy greater

witbJtaly, leaving her Tri¬ solution.
but the

este,

become

,

a

tained between the Free Territory
of Trieste and her
neighbors, this

slav

iseoret:

rntiice that-

in

us

most' people real¬
We could make a separate

peace

the

thou¬

selves

ize.

in

of

suffered from the attacks of Italy.
As neither the Soviets nor our¬

called

meet

against the

loss

Allied
lives,
Yugo¬
slavia had fought on the Allied
side
throughout; the war and

dilemma

to

war

the

of ;;

struggle
has
now,
been
brought to a successful conclusion
and the peace conference has been

In addition to the Soviet

for

and

juiy

gary;; Rumania and Bulgaria. But
the Soviets insisted that
part of
the reparations should come from

Byrnes Reports Progress
satellites - of

m nursaay;

ready to believe it is dif¬

ficult for them to understand

us,

just as it is dificult for us to un¬
derstand them, But I sometimes

on

session

of

the

the German problem.

I agreed and insisted on setting a
date.
But from my experience '
with the Italian and Balkan set¬

tlements

I

fear

that

until

the

willing to have responsible; deputies who are '• in
would think them weak and soft
territory by the Italian armies.
close touch with the Foreign Min¬
Moreover, under the armistice if they agreed without a struggle isters sit
together continuously
agreements with Hungary, Ru¬ on anything we wanted,
even
over a period of time and find out
mania and Finland reparations though they wanted it too. Con¬
just what is the area of our agree¬
payments
of $300,000,000
from stant struggle, however, is not al¬
ment and our disagreement, the
each had been imposed. The So¬ ways helpful in a world longing
exchange, of views between the
viets found it difficult to recon¬ for peace.
Ministers
on
the
complicated
cile themselves to a more lenierit
The Soviets started the German
problems of the German settle¬
reparations policy in the case of
discussion with a prepared state¬ ment will not be sufficient.
Italy.
It is no secret that the fourWe, on the other hand, were ment on the draft treaty we had
more
deeply conscious
of the proposed to guarantee the .con¬ power control of Germany on a
zonal basis is not working well
help that Italy gave us in the last tinued demilitarization and dis¬
from the point of view of any
months
of
the
war,
and op¬
armament of Germany for at least of the four powers.
Under the
posed putting on her a repara¬
Agreement,
Germany
tions burden which would delay a quarter of a century. The Soviet Potsdam
her economic recovery.
We had previously agreed

think

our

Soviet friends fear "we

statement

reveals

how

hard-

that pressed the Soviets were to find

reparations could be taken in war
plants
not
needed
for. Italian

peacetime economy and could be
paid out of Italian assets in Hun¬

real

gives

objection to

them

the

Germany should

a

treaty which

assurance

never

that

again be¬

Soviets

was

are

to

be

administered

as

an

economic unit and central admin¬

istrative departments were to be
established for this purpose.
But

in fact

aHminictoro^

-*

Germany is being

ir»

fnnr

r»lncf>rl

Pnm.

-

Number

(Volume* 164

W;

4508

THE COMMERCIAL & FINANCIAL

CHRONICLE
405

parturients, with the movement of

tangible action

people,

■

other two problems.

the

trade

and

ideas

between

zones more

narrowly restrict¬
ed than bet ween most independent

We
of

.countries,

In

consequence
none
of
the
zones is self-supporting. Our zone

costs

the

these

on

seriousness

problems

and

have

been grappling with them.
The
problem of displaced persons is
particularly
difficult
to
solve.
Where they are willing, we help

..'No Zone Self Supporting

^

recognize

these

taken

was

them

to

return

to

their

homes.

taxpayers $200,000,000 a But
many refuse to return to their
year.And
despite the heavy own countries because
they fear
financial burden being borne by
death or imprisonment for their
our

ourselves

and

other

occupying

political views. Our tradition of
protecting political refugees is too
precious for us to consent to the

powers, the country is threatened
with inflation and economic

paralysis.
This condition must not contin¬
ue.

At Paris

mass:

expulsion

from

proposed that the
Control Commission be instructed
to establish the central adminis¬

our

tions

we

has

these

of

Na¬

committee

a

studying

our

to try*' to find

part

adopted

the American people.

of

It would be

\

•

sick

study,

shall

The

but

un¬

must

we

We

do

not

on

a

we

minister

were

If

our

prepared
in

zone

a

last

to

ad¬

conjunction

must
esses

zones

in

as

an

economic unit.

I

in¬

that recently we had se¬
cooperation of the Soviet

cured

in

zone

one

British
that

matter and

with the

another.
I explained
offer was made not in an

on

our

effort to

divide

Germany but to

bring it together.

I stated that
whatever arrange¬
ments were made with one Gov¬

trust

His

release of Treasury

structed

to

all

or

ments in

matters

week

bein-

cooperate with any
the three Govern¬

of

essential

precious

administrative

Industry.

We

will

either

secure

economic cooperation between the
zones or
place the responsibility
for the violation of
the Potsdam

ket

Finally,

.

treaty recognizing the indepen¬
of Austria and
providing
for the withdrawal of
the occupy¬
ing troops.. The British also
had
dence

submitteda draft for considera¬
tion. I asked that "the
deputies be
directed to prepare the
treaty.
The Soviets submitted a
coun¬

ter-proposal calling first for fur¬
ther action to ensure
the denazifi¬
cation of Austria and the
removal
of a large number
of displaced
persons from Austria whom
regard
The

they

as

unfriendly to them.

British

and

willing to join

French
in

us

were

requesting

the Control Council to
investigate
and report on the
progress of de¬

nazification,
of
the

the

Soviets

agree
?

the

and

on

displaced

the problem
But

persons.

were

unwilling
to the deputies
taking

Austrian

treaty

until




to
up

more

CIO

throng.

the

or

there

Look

'

CIO^PAC)!.;

are

the

over

none

list and
of them whom he

likes personally to chat with. The
more

the

union

they threatened, which Sidj
did, the more he dis- ^

dharge

•

>

off for

<

the garment manufactur¬
which he
represented, ex¬
claimed that if Hillman

him

ple should act.v

genial to him. He. knows* * they don't have any respect for. him* !
and if there is one
thing sure; and
certain, it is that he is determined '

that the crowd
to win in '46 and in

ers

is necessary:*

'48, and Tru¬

and

no

reached

a

composed

11

that

meanwhile,

that

offered in the

largely

the

participate
Competent
can

York

official

if

we

get

ounce

level

of

based

was

With the

OPA, that price
firm

was

at the new

was

cents

an

the

ounce,

to

serve

as

opportunity to
of

men

broad

directors

more

of

remarks

Sidney

planning the

com¬

ahead,

Thomas,

now

before Congress to sell

its unpledged silver to industry."

Payment

on

come

up

shop will be placed

through

on

Loan Bonds
Guaranty
New

York

July

12

ments

TrUst
it

Company

which

and called

it

©n

arrange¬

will

bonds

City of Copenhagen 4%
1901.

of

announced

has completed

under

coupons

was

pay

of

loan

the
of

Reuther

we have ever had., He.;has
liked to think he was independent ->•^

al

et

of Labor.

man,

express

not anything like the big¬
ness
of
the
Messiah," Franklin
Delano Roosevelt.

Sidney

spoke

so

And

widely advertised
stuck

by

his

a

relieved

now

an

stuck to the last for Boss
Pender-

Unless

we

gast—felt

creation,

ney

even

attachment for Sid¬

an

ney, the immigrant boy who

-v
-

that he doesn't have

the

up

telephonejl^i.

ten to Sidney's hard accent.

who

is

friends—he

done things to
in his philoso^

.

in a

man

has

But

that Sidney
had ^.be^rT"^
friend of his, Sidney had, his
1
Unless we miss our bet, he feels v

Truman, being to pick
as

He

that.

phy

never

intemperately, not

personal vein.

short

came

the

shrift

now on.

.

Sid-

obligation
are

discharged.
mistaken, Sidney's
CIO-PAC, will get

from

Truman

,

>

frofti

We may be mistaken.'M'
;

:

May Portland Cement Output Increased 51%
;

Production bf

It is quite logical to expect
who made a study of
labor-capital
relationship,
and
who are expertly qualified in this
field, will be in demand for serv¬
that

ice
our

as
quasi-public directors
larger organizations.

shipments. Mill stocks on May 31-Were?
24% lower than at the end of April
1946, and 38% lower ihan a year
ago. Clinker production of 11,456,000 barrels in
May 1946 was. 43%.
above .that reported for the
corresponding month of 1945. The in¬

three occasions where directors
who
Owned
substantial
blocks
or

the

breach

when

the

needed finances, and
personally aided the. company in
getting these finances. The com¬
pany could not, on its own balance
sheet, have procured them. It is,

therefore, impossible to lay down
any hard and fast rule, but the
point is that there can be no con¬
demnation

per

se

or

a

company

that elects to its board of directors
men

with

ings."

'

dustry operated at 59%' of capacity in! May 1946, compared with 40%.
;
earlietf. Cumulative-figures for the first five months of 1946

a: year

show

gain of 65% in production, 77% in shipments, and : 66% in
production, compared with the corresponding period of 1945*

a

clinker

c

Demand for cement, as indicated by mill shipments, was higher
than in May 1945 in all districts.
ments

were

more

In nine districts and Hawaii ship¬

than double those of May 1945.

PORTLAND CEMENT IN THE

pNITED STATES, PUERTO RICO. AND HAWAII

Period Ended May 31—

Stocks

*

only limited stockhold¬

>

l ^

■

"

8,086,000

used

33j318,000

16,083,000

33,599,000

19,599,000

;

12,172,000

9,272,000

(May 31)

Capacity

'

—1945—Month—1946-——1945—5 Mos.—194S-—

Shipments.

12,061,000

40%

;

59%

>' 59,414,000
'

33%'

55%

ClinkerProduction
Stocks
*

I

*7,988,000

(May 31)

Revised

5,834,000

figure.

'

-

11,456,000

56',336,000

33,943,00c1
Kj'i"

f 5,095,000

•

' f! -'

■

1

'■

Bank Debits for Month of June

in

we

into

,

These figures indicate a continued strong

recovery in both output and

men

"There are, of course, instances
have known where a consider¬

.

sponding month of 1945.

boards

company

Copenhagen

Murray, R. J. dents

Walter

They have all spoken unkindly of
him, spoken of him as a small

Tthe Board of Governors of the Federal Reserve System issued

July 10 its usual monthly summary of "bank debits" which,,we

on

give below:
SUMMARY BY FEDERAL RESERVE DISTRICTS

able ownership of stock
by a di¬

bill

"tool!' of "any ~i
group."
^ *
Having age and lack of 'ambi-.
tion with him, he is. perhaps rone *
of the most independent; > Presi~ t

rather than a
feeling of loss.
The facts are that
Truman has
love for Phil

no

Production

many more

rector has inured to the benefit of
the company. I have in mind two

a

not to be made a

de--

exuber¬

Finished cement—

States

United

of

and

Treasury would be authorized' in

level at which the

the

upon

were

ance

and better-

ship.

sold

price, which is equiva¬

90.3

to

by

substantial

quantity of foreign silver

feeling among Washing¬
observers, not general, that

mise

the board.

directors of the company for
which they work.
This is due to
the importance of human relation¬

suspended.

a.

on

of

expiration of the

said

a company an

"In the years
men who
have

Administra-

ounce

actually

pany's future.

the

an

Price

were

balanced minds

70%

on

the

lent

discussions.

readily if they are mem¬
an advisory committee as

the net result is

the

ceiling of 71.11 cents

"The

all

well-qualified

vision

always have, on

previous

of

they

give

quotation said:

tiom

in
men

If this policy be pursued, it
may

will sell to

so we

as

bers of

The bul¬

the basis of the current
day's quo¬
tation."

Office

suggestions

just

buy silver today,

an

directors

in your Company
and do make available to the

mar¬

"It has been possible for us to

"The

the

New

a

wide

ton

are men of

meetings and

lion dealers added:

cents

of

company the best of their thoughts
and ideas, and they can do this

quotation of 90 Vs cents.

as

board of

and that they had

day,

customers

of

and recommendations
upon which
they desire the board to act. They
sit in at the board

on

in

Ifoder the circumstances, there

.

is a

recommendations

upon

before

as

announced

corpo¬

industrialists

*

12,172,000 barrels of cement in May 1946, reported
jna.de by officials' of the company
to the Bureau of
Mines, United States Department of the" Interior,
who, instead of."serving on the
board, form advisory committees. was 51% greater than that reported for May 1945. Shipments bf; 1#(<~
These advisory committees
place 083,000 barrels were 73% greater than those reported for the corre-

came

submitting

to the deputies
the consideration
of the
treaty and in

the

likes them.

integrity. Their di¬
meeting agenda is usually

based

over

12, referring to the above official

discussion
©f the Austrian
problem. On June
LI had circulated a
proposed draft

find

pany,

The New York "Times" of July

we came to a

I

people not working for the com¬
and perhaps not having a
substantial interest in it, often
bring to the organization new

to

silver is still

been

metals,

established

Agreement.
Austrian Problem

their

family-controlled

directors

absence of any OPA ceiling, sil¬

like

finance, transporta¬
tion,^ communication, trade and

for

going to be

vision appreciate that

proc¬

issue

Committee

has

ver: had been

one

and

er

rations.

in the hands of the Senate-House

Expressed

m

rather

rectors'

Pointing out that the

July

any View.
Our ^Military % representative

more

course, would not be true of small¬

We

peace

and.

capacity
than their
stockholdings. This, of

that God

give

more

chosen

Handy & Harman

proposal and
Indicated they hoped to
agree.
Neither the Soviets nor the French

Germany will this

will

that, in the future, directors

are

yet, Handy & Harman, dealers in

they

and

belief

peace

enemies

as

the' healing

were

our

objective,

an

a
sense, a broader
the company.
It is my

to

Silver Price Established by vision, assuming they
capacity and

agreement

consider

a

friends.

our

mercy

other

would

in

Investigating

permitting

Truman's

to bring
therefore, in

charity and

fear

we

to

Conference

time they
prepared to participate.
■
The British stated that

in

of peace and pray

ernment would be
open on equal
terms to the Governments of the
zones at any

difficulty

be¬
injudicious dividend

an

apt

those

the world.

i

<

of

"Another argument in favor of
a director who is
not a substantial
stockholder is that he is more

with charity and

we act

become

may

with any one or more of the
other

dicated

believe

those

mercy,
as

financial

policy.

desire for vengeance.

We believe in justice,
mercy.

I then announced
that

War

ney never

a

view

based

resort

because

days of the depression
number of companies

that

into

cause

**

suf¬

U. S. Proposal

to heal

work

wounds.

early

and

war

we felt certain would fol¬
con¬

dividends

got

in

on,

swords into plow¬
has left wounds,

our

shares.

willing to share responsibility for

"

press

world, to bring soldiers back

lies, to beat

prog¬

continuance of present
ditions in Germany.

to

as

pressing financial need. How¬

the

Will Press to Restore Peace

We

%

possible.

a

holdings,"

the Senate

Committee which bore his'
name,
now has the name of ther Mead
Committee.
At that time, Tru¬
man, running into, the fact that
the
humanitarian Hilhnafe was

seen,

any attachments

,,

\

-

to their homes and to their fami¬

low

looks around it can't be

one

,

as

peace

of the Saar without further
and therefore no immediate

and

Sidney has gone, r'and

a tragedy to hold
man, unless this' writer. Is; mis-*
was not
ever, when the corporation's fi¬
treaty with Austria
American enough to do his
nancial position is
job, taken, will be thinking x about %
considered, such
because she is obliged to afford
then
in
*vhat an awful lot of people
the
dividend action might be detri¬
War
Production'
they f'
temporary refuge to these jpeople
mental to its long-range interests. Board; as
co-adviser with
Bill1 We whom he would rather not as^ ?
until homes can be found for them
sociate with.
Our credit files show that
Knudsen,
.
Ir , ^ .i
*
then,
he
Truman,
in other countries.
many
The rest of them are* not con*
instance of this kind occurred in thought that the American peo¬

the

ses¬
sion and out of session, to restore
conditions of peace to this war-

paralysis

ii.?:

Now

ir¬

so

to dig up what Tru¬
said when he was chairman

,

a

excluded from the jurisdiction of
these agencies. The British
agreed.
But the Soviets said that
they
could not agree to the exclusion

economic

their

been

Democracy

diate

do

up

Government, which

fering

from

come

processes greased.

Made

that Truman has

of

cor¬

9

,

and

reverent as

Mr.
Heimann continues. "Since imme¬

upon

had previously opposed the estab¬
lishment of central administrative
agencies, indicated their willing¬
ness to
accept our proposal when
we
suggested that the Saar be

the

as

.\

Work.

these

Some writers have

here

man

relations, will be

sought out in the future
porate directors.

over

t

■

labor

or

.....

self-perseryationis a strong carpenters $50 before <«y could •: In short, Sidney was his last
go
to
work
on
influence
a
in
their
eUfttbnment personal tie with the crowd. Bob
decision, a
solution/ but it cannot be a cruel
solution that will reflect discredit short-sighted
policy
might
be project, and also getting a rake- Hannegan will still be insisting to

zones and for a balanced
program
of imports and exports.
The French

were

Ability

(Continued from first page)
tion,

>

Ahead of the News
to keep

to

unit, and to arrange for the ex¬
change of products between the

I made clear that we

On

■

■

(Continued from first page)
anyone who had ever (lone more

the problem and we shall continue

trative agencies; necessary to ad¬
minister Germany as an economic

ress was

Washington

Directors Based

"Directors having considerable
holdings in a company may be
personally dependent on the in¬

people

The United

zone.

From

Urges Corporate

,(In millions of dollars)
-3 Months Ended—
June

Federal Reserve District—

,(>w

Boston

j

1943

4,805

11,493

12,031

44,952

115,803

113,283

11,378

♦New York City

other

35,402

2,564

7,219:

1,726

4,829

2,920

8,084

2,544
7,900

7,832

6,911

23,862

'21,570

98,024

2,688

——

8,070

Total, 334 centers

n'-y 193

2,913
13,679

2,439

Francisco

other

,

1,693
2,831

City

♦140

f

9,337

3,018

—__—

—

15,455

11,913

—.—

Chicago
St. Louis ^ —«—-i-—-—,
Minneapolis
Dallas

11,727

6,092
3,406

4,000

^

Atlanta

4,524

5,241

3,185

Cleveland

San

1946

3,768

Philadelphia 4*—•

Kansas

June

June

1945

37,818

r+T-rp,*——

New .York

Richmond

June

1946

li l:o

86,663

—

——

43,219

centers

'"
.

•Included In the national series covering

8.472
■

i

9,051

8,774
8,030
36,43ff
7,001,

v

4,471,/
7,974.

V

,260,093

253,887

41,725

34,972

centers———•—

116,021

107,265

47,716

127,774

^ 104,816
126,204

8,583

25,054
I

22,866

.

141 centers, available beginning in 1919.

•

.

,;v.;

THE COMMERCIAL & FINANCIAL CHRONICLE

406

-'

100,000 kwh. for the correspond¬

announced on June 15 that the ing week of last
following companies have reported changes in the amount of stock of 1.6%,

increase

year, an

Per Latest

Previously

'

Company and Class of Stock—
Co., iVz%

i-Ataas Corporation
The Borden Co., common.
General

Motors

Corp.,

common

Brothers, common
International Minerals and

:

—

Cof Inc.; common———
& Johnson, common
($12.50 par)

Distillers Products

Corp.,

Corp.,

($25

common

Plymouth Oil Co., common
Reliable Stores

W. A.

.

Franklin

.

Corp.,

Sheaffer

7%

Simon,
Oil

Sinclair

Corp.,

common...

Cb.,

Pen

cum.

105

8.7%, is shown.
Earnings

In

of

railroads

I

v,

May

the

<r

,

—

United

May, 1946, had an esti¬
deficit, after interest and

a

of

$36,000,000

net

compared

of

income

$64,648,791

May, 1945, according to the As¬

sociation

of

American

Railroads.

Operating results in May were af¬
fected by the coal and railroad

7; 1,262 :

ii 7 'Decrease <of * 74,621" resulting fr»m .operations' of Employees'. Bonus Plan.
^ " fDecrease represents shares delivered under the Employees' Extra Compensation
Plan.
-Wv

strikes.

-

In the first five months of 1946

1946, 27,869 shares were exchanged for all capital stock of Seattle
Oxygen Co.
During the month of April TOO shares were purchased and during
the month of May 3,000 shares were purchased, making a total of 3,700 shares held
in the. treasury May 31, 1940.
"
.
.
a
v
fDuring the month of April 2 shares were acquired and 1 share was acquired
during May, 1946.
tin January,

,

estimated
mid

deficit,

rentals

of

after

interest

$40,000,000

com^

pared with

a net income of $261,414,342 in the like period of 1945.

.

v'-^'Tb^New York Curb Exchange made available on June 17 the

For

following list of issuers of fully listed securities which have reported
changes in their holdings of reacquired stock:

net

snares

Shares

Previously

Reported
72,250

> ,! ;
opt. div. ser. 1936
Corp., cv. A opt. div. series—

American Cities Pwr. & Lt. Corp., A
American

Cities Pwr. & Lt.

American

General

Corp.,

494,035

common

2,100
None

Products

Corp.,

Central

Crown

2,505
4,300

625

629

9,936

9,521

—

70,830

65,830

———

2,496

1,735

1,000

600

Petroleum

Derby Oil Co., common—
Gilbert (The A. C.) Co., preference
Gilbert (The A. C.) Co.; common—

.•_+

——

——

Kleinert

(I.

Corp.,

Rubber

B.)

76
981

—

27,637

27,737

—

common—

5,609

None

Kobacker Stores, Inc.. common
Morris Plan Corp. of America, common
New York Merchandise Co., Inc., common

155

30

30,533

54,150
16,933

13,275

13,325

—

Hotel Sales in February
Horwath and Horwath, New York

public accountants, in their
April "Hotel Bulletin" announced that "even though 1946 is the
seventh year in which sales increases over the year before have been
the rule in the hotel industry, February shows very substantial gains
on all points.
The total sales were up 17% over the same month of
1945 compared with 12% in January, and the other country-wide
improvements were: rooms, i 1 %; total restaurant, 23%; food, 24%;
and beverages, 22%." From the advices we also quote:
?
"And even without examining the - figures; for all the ' various
cities and sections included in our table, we can see that the improve¬
ment is general if we glance at the group, All Others, which consists
of miscellaneous hotels scattered all over the country and is there¬

or

an

average

WITH FEBRUARY,

1945
Rate

f

*

*Total

7-

New York City—

+

Washington

+

Cleveland

Rooms

+16 %:

Chicago
Philadelphia

+19

+

St .'

Restaurant

8%

+
+

+ 21

1

+

4

v

+ 25....

+ 23

-i+te-

1945

92%

+

85

+ 10

92

88

+

•

94

+.20

,+ 10
+ 5

Decrease

6%
5

93

•

f

f 95,
90.

-.

/-ifor.

94%

+ 32

+

+ 14

Increase
•

1946 K

+ 30

+ 25

2

+ 33

Feb.

94

Beverages
+ 28%

+ 27%

+ 32.

9

2

Food

+ 27%

+ 22

+16

Feb.

91

'

Detroit

-—;

Pacific

Coast—.

-

+

7

+

:+-7

+

7

+

5

+

8

+

+ 12

+ 16

Texas

+

9

y:+;::. 4

+ 16

+ 19

All

+19

+ 12

+ 25

+257

+17%

+

11%

+

+

15%

+

10%

+ 20%

others

Total
"Year to date—

+

6

23f:

.

91

y

88

7

92

90

93

87

+22%

24%

+ 20%

85

+ 25

93%

88%

+20%

93%

89%

—•

V

+

5%

MONTHLY TOTALS FOR LAST SIX MONTHS

February, 1946— +17%

+11%

January

December,
October-

90

5

+13

•Rooms

+11
+

and

8

+11
+

+16

-

9

+ 12 7

+8

restaurant

only.

+

tThe

average daily rent per occupied room




9

-

-+11
+10

term

.

"rates"

+16

+

7

93

wherever

and not to scheduled rates.

89

used
>.

refers

3

to

the
»

on

July 5.

recessions

There
on

the

two

newed upturn

erate declines in most

Fears

be

cash

mar¬

that

reinstated

brake

a

cellent

in

more

millers
in

,

crop

Flour mills

1944.

secure

on

new

were

able to

wheat last week but

showed

extreme

caution

making flour commitments

ow¬

ing to future price uncertainties.
There

little

activity re¬
ported in the cocoa market with
steady following
Business Failures a Little Higher prices holding
the recent sharp advance.
Hog
—Commercial and industrial fail¬
values moved sharply upward on
ures turned slightly upward in the
the elimination of ceiling restrict
week ended July 11, but they did
tions ^ but prices
later reacted
not reach the 1945 level, reports
downward as the result of heavy
Dun & Bradstreet, Inc. Concerns
receipts which flooded the stock¬
failing this week numbered 15
yards. Lard production spurted
against 13 for the previous week
upward due to the increased hog
and 25 last year.
supply and output was reported
Large failures involving liabil¬
the largest in many months. Cat¬
ities of $5,000 or more were three
tle were in good supply but heavy
times as numerous as small fail*
demands maintained prices at the
ures.
Numbering 11 in the week
highs established early last week.
just ended, these large failures
Lambs moved up with other live¬
remained the same as last week
stock" but sold off slightly ? at the
but showed a drop from the 18 re¬
close of the week.
ported a year ago. Concerns fail¬
Cotton
prices lagged during
ing with losses under $5,000 in¬
creased to 4, twice as many as in most of the week but turned up¬
ward at the close. Spot values at
the prior week but fell; short of
New York registered a gain of 51
the 7 reported last year. :
Failures were most numerous in points for the period, while futures
manufacturing and retailing, with prices broke through the 32c level
these two lines

accounting for all

for

the

mained

92

if
88
->
83
+19 W.
+14 if 95 7 7:90/7

—-

moderate

for

+17

+13 M'
+14
a

November

June 29, the daily wholesale
commodity price index, compiled
by Dun & Bradstreet, Inc., rose

4

5%

+16

+14

during the first

on

3

88%

+17

......

half of last week, due to the ter¬
mination of the. OPA. From 200.12

coming

93%

-

+10 77

September

+23%

advance recorded

Manufacturers failing, at 7, turned
downward from the 11 reported

+22%

+

+13

repre¬

the

fca irritial; sharp

days ioHbwing

4

+24%

+12

of

7

1924

—

index

Wholesale Commodity Price In¬
dex—Signs of a leveling off move¬
ment were visible in the past few

but 2 failures of the week's total.

1945.

8

total

use.

as

preceding week and 62% for the
corresponding week a year ago.

for Chicago,

Occupancy

Total

The

sum

price
pound, of 31 foods in general

per

may

ican Paper & Pulp Association.
Paperboard output for the current
week was 70% against 98% in the

tRoom

-Sales, Increase or Decrease-

oats.

the

kets.

against 105.5% for the preced¬

below 90% in February of this year.

COMPARED

sents

interest and rentals

ing week and 47.9% in the like
1945 week, according to the Amer¬

followed by 9% for Cleveland."
1946,

and

corn

prices was the ex¬
outlook for the
tion —Paper production in the wheat, corn, and oats crops. Pres¬
ent prospects indicate a corn crop
United States for the week ended
much in excess of the record yield
July 6 was 61.1% of mill capacity,
of 3,203,000,000 bushels harvested
as

Chicago, and Washington.

FEBRUARY,

•Activity

in

price

new

In

the

preceding
the

retailing,

failures

rose

on

week but re¬
as

same

the

from

a

year ago.

was

first time since the 1923-

Expectations of large
for cotton. during * the

season.

demands

from both domestic
and foreign sources, coupled with
the indicated short supply of the

other hand, staple,

1 last week to

was

the -Boston wool

-

quiet during the

very

practically all textile mills due to

Eastern

period7 Fdr«f;

at.

ports in large quantities

during the week.
Retail

and

Traded

Wholesale

Somewhat

higher prides' arid
slightly larger supplies of pre¬
viously. scarce items held the dol¬
lar volume of retail trade in the

-

five months of 1946,

Paper and Paperboard Produc¬

one — Detroit —- was as low as 90%, while Cleveland
scored the month's high of 95% and three averaged 94%—New York,

"The sharpest rise in room rate was that of 10 %

railroads

trict.

Indeed, only

:

establishing

past week at virtually the same
level as the previous week, de¬
spite holiday closings, it was re¬
Butter
accounted
for
almost
ported today by Duri &^Bradhalf of the week's rise.
Other
street, Inc.
7 0,
commodities moving upward were'
Wholesale
volume
declined,
barley; hams, bellies, lard, but*, however, because of the long week
ter,' cottonseed oil, cocoa, eggs, end
closing
for
Independence
hogs, sheep and lambs, while de¬ Day. In spite of this, wholesale
clines occurred in flour, wheat,
volume was above that in the same

price controls
brought con¬
of which 30 were in the Eastern siderable liquidation in corn and
oats futures, resulting in sharp de¬
District, 12 in the Southern Re¬
gion, and 27 in the Western Dis¬ clines for^ those, grains. Also acting

course

sections had

T

cldss

earn

in the first

the soaring occupancies continue to be the principal
point of interest, and it is not surprising to find that none of our
cities

level represents a new
high since June 10, 1920, when itt
registered $4.89, and marks an in¬
crease of
19.3% over last year's
index of $4.09.

10.5% to 221.19

failed to

pickup of 19% in total sales is the most marked in two years, and so
also are those of 25% each in total restaurant sales, food, and bever¬
ages.
Furthermore an occupancy of 93% for this group is eloquent
of the situation throughout the country.
">
"By far the largest increases in total sales, rooms, total restaurant
and food are recorded by Chicago, one reason for this being found in
the fact that there was room for improvement since in February, 1945,
that city had a whole row of decreases from the year before.
"Of

current

were

Sixty-nine

fore indicative of the over-all trend. Indeed all the gains for that group
exceed the total averages, which is of course quite unusual.
Its

'

26-year high. From last
week's $4.54, the index advanced
34 cents, or 7.5%, to $4.88 on July
9,r making a total gain of 12.2%
during • the past-two weeks; The

succeeding days but a re¬
carried the July 9
figure to a new high of 221.60.
to $2,965,368,250
compared with
This was a gain of 25.3% over a
$3,877,377,074 in the same period
of 1945, or a decrease of 23.5%. year ago when if stood at 176.89.
All grains
Operating expenses in the like pe¬
were
considerably
riod of 1946, were $2,568,469,201 higher than the recent OPA max¬
as
against $2,653,033,611 in the imums but comparisons for- the
corresponding period of 1945, or week, July 8 with July 1, the first
a decrease of 3.2%.
day of free trading, showed mod¬

31

150

—*

—

May

Total operating revenues in the
first five months of 1946 amounted

None

3,468

-

Corp., v.t.c. eommoii—
—
Drug Co., common—.
—;
Tung Sol Lamp Works, Inc., common
Utility Equities Corp., $5.50 div. prior stock—

Sun Ray

ended

fur¬

a

new

3.95%.

134,131
251,268

•

Starrett

months

12

1946,

ther

riod of 1945 the rate of return was

156

133,631
250,167

Niagara Share Corp., B common
Noma Electric Corp., common—!

the

the rate of return on
property
investment
averaged
1.88%. For the corresponding pe¬

968

common

Co.,

For

31,

None

Grocery Store Products Co., capital
Utilities

None

384

1,400

Corp., common..
Dennison Manufacturing Co., A common

International

railway operating in¬
come, before interest and rentals,
amounted to $114,603,468 as com¬
pared with $448,579,005 in the
same period of 1945.

4,800

J

capital

Bridgeport Oil Co., Inc., common

net

year

None

10,381.

Corp,; $2.00 dividend series preferred—
General Corp., $2.50 dividend series preferred—

Automatic

Report

7 2,350

1,750

American General
American

May, 1946, the carriers had a
railway operating deficit, be¬
interest and rentals of $4,779,574 compared with a net rail¬
way operating income of $103,633,697 in May, 1945.
In the first five months of this

fore

Per Latest

•.-V. Comnany and Class of Stock—

in

eign wools continued to arrive

in

5

6,477

1,282

levels.

the annua!;.vacation

with

§954,155
;

6,377

.—

tated

responding week of 1945+

Dun & Bradstreet wholesale food

rentals

735

'

Virginia Iron Coal and Coke Co., 5% preferred
The S. S. White Dental Mfg.: Oo^apiiaL-—

Carded gray cotton cloth markets
continued to lag -as mills hesi¬

price index for this week to

mated

.

2,824

954,151
7 None

I

—

common...

than ,a

more

weekr reflecting : the closing of

Class

None

i

Although 3:2%

ago, this was 28.0% below
thel lO-yedr average of 25,608,000
acres for the seasons 1935-1944.

ported as compared with 2 in the
previous week and 3 in the cor¬
Sharp Gain In Food Price Index

States in

7,184
11,550

None

re¬

1.

year

market

Railroad

77;7'457''

3,909

preferred

common

U. S. Rubber Corp.,

—

common—

Canadian failures -were

mated that 18,316,000 acres of cotton were under cultivation on July

562 cars, or

t

12,019
52,030

_

6.5%

•

factor.

a

corresponding week for. ^-Although grains were; generally
Compared with the similar lower than: a week ago, advances
period of 1944, a decrease- of 64,- in other foodstuffs carried the

23

5,384

——,

•Purity Bakers Corp., common

or

1 Six

likewise

was

below the

129.

44

199,760
(22.7%) below the preced¬

this week.

as numerous

Construction, with 2 failures, was
ohlyvpth^ trade or industry
to report any failures

the

Department of Agriculture in'
issued nh- July 8 esti¬

its report

1945.

130

par)
—
Outboard, Marine and Manufacturing Co., common—
Steel

of

ing week and 46,878 cars,

-

None

:

decrease

a

was

cars or
■:

2,996
t

—

;——.+

common

This

26,459
1,605
23,569
11,075

1^081

I;
.U—f
——-~r,

•

188,658
104,276
NonO

23,709

^,-rr

preferred, series A, 4%
—
The Mead Corp., $5.50 cum. pfd., series
'National Cylinder Gas Co
—
National

of American Railroads announced.

*7,950

1,635

.

2nd

'

.32,359

Chemical Corp., common—

Jewel Tea

National

46,345

104,215
82,571 1
28,050

——

6, 1946, to¬
679,785 cars, the Association

taled

f 17,810

187,758

•'

—r--»"

Gimbel

Johnson

-

.

common——___—————L—~-

.•Electric. Boat Co.,
.

15,195
46,318

of

the week ended July

Report

Reported

■

<

pfd

cum. conv.

loadings

However, compared

with last year, retail failures were

pound

The

6 this week.

only half

Loadings—Car
revenue freight for

Railroad Freight
Shares

parity, price, to 23.19c'

per

(Continued from page 399)

The New York Stock Exchange

+The American Rolling Mill

mid-June

The State of Trade

roups in Holdiigt of Reacqairtl Stock
Of N. Y. Slock & Curb Listed Firms
if Shares

Thursday, July 18, 1946

■

in

the

year

were

rise.

week

a

ments

Increased ship¬
reported from many

year ago.
were

localities, particularly - plumbing
supplies, building materials and
furniture.

^

-

Dollar food volume last week
held considerably above that of
the corresponding week a year
ago, with meat more plentiful but
selling at higher prices than ia
recent weeks.
Food prices were
up in most sections of the coun¬
try.

Grocery Manufacturers of
on Friday last that

The

America stated

actually food prices, in the aggre¬
gate, are below what many fami¬
lies were paying before the OPA
expired on July 1, because so
much food was being bought by
housewifes in the black market.
Retail volume for the country
as

for the

whole, in all lines,

a

week

estimated- to -be

was

tween

higher

25%

and

22

be¬
than

week last year.
percentage increases
England. 16 to 20; East,
23 to 27; Middle West, 18 to 22;
Northwest, 26 to 30; South, 20 to
24; Southwest, 22 to 26, and Pa¬
cific Coast, 19 to 23.
the corresponding

Regional

New

were:

Department store sales on a
country-wide basis, as taken from
Board's index
for the week ended July 6, 1946,
increased by 26% above the same

the Federal Reserve

period of last

This com¬

year.

pared with an increase of 38%

in

preceding week. For thp;f(Axr.
weeks ended July 6, 1946, sales
the

increased by 35% and
to date

According
serve

for the year

by 28%.

to

Bank's

the Federal Re¬

index,

department

store sales in New York

City for

weekly period to July 6,1946,
increased 33% above the same

the

period last year.

with

an

This compared

increase of 43%

preceding

weeks ended July
rose

in the

the four

For

week.

6, 1946, sales

by 39%, and for the year to

date 34%.

Isleib Named By Truman
om^;July7 0

President^7 Truman
nominated

James

Isleib

R.

Texas to be Land Bank

of

Commis¬

sioner in the Farm Credit Admin¬

istration, according to the Wash¬
ington, D. C., "Post," which added:
7 Mr. Isleib, a

Tex.f would

Rhea,

who

native of Rosebud,

succeed. William' E.

died

recently.

~

Mr.

Isleib has been on the Farm Credit

Administration

staff

and is now serving as

the principal factors
A sharp rise in the Bank'Ooininissi0ner.\

since

1933,

Deputy Land
■:

*

V<-;

Volume»164a''Numb6r

4508

THE: CO MM ERCIAL

Electric

Output for Week Ended July 13, 1946
3.2% Below That for Same Week a Year Ago

and
400

& FINANCIAL

CHRONICLE

castings, compared io 1,547,one week
ago, 1,483,900

Moody's Bond Prices and

tons

tons

month ago, and

one

1,644,800

tons one year ago,
;..
.**,. - f '
"Steel" of Cleveland in its sum¬
mary of latest news developments

The Edison Electric ,Institute, in its current
weekly report, estw
mated that the production of
electricity by the elecric light and power
;
industry of the United States for the week ended
in the metalworking
July 13, 1946, was
industry, on
ti^4,156^86j000^kwhur ^ich^ ^omp^t'es with:4;295,254,000!?
July 15 stated in part as follows:!
the
•

.

..

,

■

j^cpwesppndingvwe^ a ^ar ago,l and v3,741^06,000;
in the; Week
5; ended July.^ 1946'.', The;"output for ^the week «nded
July. 13/4946;
the :aainef-^yeek^ in 1945.
'•/

from

Major Geographical Divisions—

July 13

^

Industrial—
•

States

..

„v

{Increase.:

*2.1

3.9

6.2

6.0

/ §0.6

j

6.0

1946

7.4

..§4.9
a

5.1

under 1945 <•..

4,014,652

April 20

3,987,145
3,976,750

4,332,400
4,411,325
4,415,889

.

4,011,670
3.910,760
3,939,281
3,941,865
3,741,256

—

—

—

8

—

June 15

June 29

—

4,156,386

7.3
9.6

—

8.8

—

9.1

—10.0
9.0

—

5.3

4,291;750

t

4,144,490

9.4

4,264,600

—

7.3

4,287,251
4,325,417

5.3

1929

r

1,480,738
1,469,810

1,696,543
1,709,331
1,699,822
1,688,434
1,698,942
1,704,426
1,705,460
1,615,085
1,689,925
1,699,227
1,702,501
1,723,428

1,454,505

1,429,032
1,436,928
1,435,731
1,425,151
1,381,452
1,435,471
1,441,532
1,440,541
1,456,961

the

says

that

it

was

on

unseemly

where

"So far
tics have

1.732,031

1,724,728

costs

proper

in

the

been

To

steel

can

and

be

scrap

substantially

think

that

suc¬

this

state

permanently, and price legislation
abandoned, is completely to ig¬
the past

history of steel

and

scrap prices.

;
,

.

"The basic fear in the steel
inwhich
firmly
believes

dustry
bigher

prices are warranted to
take care of past increased
costs
is that once price controls
are

soar

,

price levels.

.

price

,

,

and

steel

will reflect the full play of
market and

to

much

scrap
a

free

higher

In the period before

controls

were

slapped

rapidly to $26

or more

a

ton

and would have
advanced farther
been for the
freezing

had it not

H action.

>r "Now

steel

firms

fearful
that history will
repeat itself and
that scrap prices
may soar much

higher

than

view of
'

before

are

the

war

dissipation of scrap
during wartime operasharp rise in the price

r

tions.

;

of scrap, coupled with certain

'

.

.

;
•

•

\

•

-

in

the

supplies
A

ad¬

vances
in
other raw
materials,
would put steel
companies far behind in the

relationship of their
prices to costs. To
compensate for
such a situation, steel firms
would
be forced to make
substantial ad-

vances

on

practically

all

steel

products.

"Steel consumers whose
opera¬
tions generate
scrap as a byprod¬
uct have been
just as anxious to
know the future of the
price con¬
trol

trend

have

as

been

brokers in the scrap trade.
These sources have felt that
if

they let their
at
see

the

scrap

supplies

would face

definitely higher prices
they pur¬

for steel products which

chased.

Some

scrap

on a

hand

should controls be eliminated
per¬
manently would serve as a good

point

compensation

or

for

at

least

higher

ton¬

old

OPA

ceilings in




an

a

steel

prices.
"If
OPA
is
resurrected
this
week there should be a substan¬
tial movement of
scrap

through

trade

channels, but there is a
good probability that the amount
uncovered will fall short

of ton¬

nages now
trade as

stacks

time

to

is

If price controls are def¬
initely eliminated from the coun¬
try's economy this week the pres¬

tremendous demand from
foundries and a heavy drain from

markets before the war."

The

American

Institute

Iron

and

Producers

are

regular
serve

allotting

customers

all

in

equally but

foundries in general are far short
of requirements and have cur¬
tailed operations or closed for va¬
cations in the effort to build some

inventory. Price advance by two
makers in the South has not been
followed by similar action in other

on

July 15, announced
that telegraphic reports which it
had

received

indicated

that

the

The

% from the preceding week.

operating rate for the week

beginning July 15 is equivalent
to 1,549,100 tons of steel
ingots

121.25

118.80

112.56

116.02

123.56

119,41

121.46

121.67

118.80

112.56

116.02

119.00

123.56

110.41

121.46

121.67

118.60

112.56

115.82

119.20

121.67

121.25

118.60

112.37

115.82

119.20

121.46

121.25

118.60

112.56

115.82

119.20

121.46

Exchange Closed

124.24

118.80

Stock

123.34

Exchange Closed

124.17

118.80

123.34

124.11

118.80

121.25

118.40

124.11

112.56

116.02

118.80

119.20

123.56

121.40

121.25

118.60

124.11

112.56

116.02

118.80

119.20

123.34

121.40

121.25

118.40

112.56

118.80

116.02

119.20

123.34

121.46

121.25

118.40

112.56

116.02

119.2Q

124.17

123.56

121.46

124.17

118.80

123.34

121.25

124.02

118.40

118.80

112.56

116.02

123.13

119.00

12125

121.25-118.40

123.99

118.80

112.56

116.02

122.92

119.00

121.25

121.46

112.56

116.22

119.00

121.04

119.00
121.04
119.00 is. 121:04

118.40

123.99

118.80

123.13

121.46

118.40

124.14

112.56

118.60

116.22

122.71

121.46

118.20

123.83

112.56

116.20

118.80

122.92

121.46

118.60

124.49

—

112.75

119.00

116.41

122.92

121.04

118.60

113.12

119.00

116.61

119.41

123.34

121.25

121.04

118.40

113.12

116.41

119.61

123.99

119.41

121.04

125.77

117.20

120.02

123.99

121.88 : 119.20
122.29
119.61

113.89

120.22

125.92

I

119.20

121.67

124.33
125.30

I

114.27

120.02

117.60

123.09

120.22

121.88

122.29

119.61

114.46

117.60

120.22

122.09

117.40

120.22

122.09

121.67

126.28

119.00

114.27

116.41

123.12

120.22

121.25

122.09

126.28

115.63

124.20

119.00
122.50 ' 119.61

113.31

120.02

119.41

122.09

114.46

117.60

117.60

120.43

121.46

122.50

119.82

117.40

112.19

114.46

117.80

120.63

116.22

121.04

119.61

116.22

108.34

113.12

115.63

119.61

112.19

102.96

^

1946

1 Year Ago

16,

1945-

2 Years

July

15,

122.94

Ago
1944-

120.19

„

'

,

•

\i

,

112.56

118.60

>

•

-

'*

/ih.f'-•./»-.Trt.. *;**■ /v

117.20

106.39

114.08

117,40

MOODY'S BOND YIELD AVERAGES
(Based on Individual

Closing Prices)

u. s.

Avge.

Daily
Averages

Govt.

Corpo-

Bonds

Corporate by Ratings*

rate*

16_.

1.48

2.71

1.48

2.71

Stock

i Aaa

.

'

Aa

A

Corporate by Groups*

Baft

R. R.

P. U.

Indus.

/ 2.49

2.59

2.72

104

2.87

2.69'1

2.49

2.59

2.72

1.03

2.86

2.68

;

Exchange

2.58
2.58

Closed

•v-"l:::h

1.47

2.71

2.48

2.59

1.46

2.72

3.03

2.70

•2.85

2.48

2.69

2.58

2.58

10

1.46

2.71;

3.03

2.70

2.85

2.48

2.68

2.59

2.57

2.71

3.03

2.85

2.68

2.57

2.85

2.68

2.57

2.86

2.69

2.57

2.86

2.69

9—

1.46

6—1—

2.70

2.48

2.58

2.71

1.46

3.03

2.70

2.48

2.58

2.72

3.03

2.59

2.72

3.04

Stock Exchange

5

1.46

2.71

4

,

Stock

3

1.46

•

Closed
2.49

2.71

2.49

2.59

v,
2.58

;•

Exchange Closed
2.72

1.47

3.03

2.71

2.86

2.69

2.48

1

2.59

2.73

1.47

3.03

2.71

2.85

2.48

2.69

2.58

June 28

2.59

2.72

1.47

3.03

2.71

2.85

2.49

2.69

2.58

21

2.59

2.73

1.46

3.03

2.85

2.71

2.69

2.49

2.58

2.59

2.73

1.46

3.03

2.85

2.71

2.69

2.49

2.58

2.59

2.73

3.03

2.85

2.70

2.59

2

2.58

7

1.47

2.71

2.50

2.59

May 31

2.73

1.48

3.03

2.85

2.71

2.70

2.51

2.58

2.73

2.59

3.03

2.84

2.70

2.60

24

1.48

2.71

2.50

2.84

2.70

2.58

2.74

3.03

2.84

•2.70

2.51

2.58

2.72

3.02

2.70

2.83

2.69

2.51

2.57

2.72

3.00

2.82

2.68

1.45

-

2.70

2.49

2.73

3.00

2.83

2.68

2.60

2.67

2.46

2.56

2.69

2.96

2.79

2.64

2.46

2.57

2.54

2.67

2.94

2.77

2.64

2.56

2.54

2.67

2.93

2.77

2.64

2.55

1.34

2.65

2.46

1.36

2.66

2.46

1.33

2.67

1.31

1946

1946

-

2.54

2.68

2.94

2.78

2.49

2.56

2.70

2.94

2.83

2.64

2.50

2.55

2.59

2.70

2.99

2 87

2.77

2.68

2.58

2.55

2.66

2.78

1.31

25

2.70

1.51

21.

3.05

2.93

2.65

2.76

2.45

2.62

2.53

2.67

2.93

2.77

2.63

2.53

2.84

2.60

2.67

2.84

3.26

3.00

? 2.87

2.67

3.03

2.72

2.79

,3.05

3.57

3.37

2.64

2,55

1 Year Ago

16,

1945-

1.59

2 Years Ago

July

15,

2.60

2.65

5

July

2.60

2.60

1.38

Mar. 29

Low

2.59

2.60
•

■

1.35

12

lan.

3.03

2.52

2.71

1.44

Apr. 26

High

2.73

2.72

1.49

3

Peb.

2.58

1.47

10

1944-

1.78

.

2.95:

2.78

•These prices are
computed Irom average yields on the basis of one
"typical" bond
coupon, maturing in 25 years) and do not
purport to show either the average
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.
?,,r
NOTE—The list used in
compiling the averages was given in the Nov.
22, 1945
issue of the "Chronicle" en
page 2508.
\

(3%%

level

-v...-v

Some melters are accepting
off-grade from furnaces and little
insistence

is

placed

Moody's Common Slock Yields

exact

on

analyses.
"Steel ingot production in first
half this year showed a
loss of
15,778,368 net tons from the corre¬

sponding period last year, output
being 27,364,714 net tons, at an

with

per

For yields in prior years see the
following back issues of the
"Chronicle": 1941 yields (also
annually from 1929), Jan. 11, 1942,

2218; 1942 levels, Jan. 14, 1943, page
202; 1943 yields, March 16,
page 1130; 1944 yields, Feb. 1,
1945, page 558; 1945 yields, Jan.
17,1946, page 299.
page

1944,

^MOODY'S WEIGHTED AVERAGE YIELD OF
200 COMMON STOCKS

rate of 60%, compared
43,143,082 tons at 91% in first

ton. Other composites

changed, finished steel
steel

-

$64.45,

at

$40.60 and
steelmaking scrap at $19.17."

,

Oct., 1945
NOV., 1945;
Dec..

Railroads

Utilities

Banks

(125)

(25)

(25)

(15)

January, 1946
February, 1946
March, 1946

4.0

3.2

3.2

4.8

4.1

3.3

3.1

4.5-

3.8

3.4

;—

3.4

5.1

4.0

3.7

3.0

5.1

4.0

3.6

July 2
Month ago, June 15—
Year ago, July

16,

18945

1946

High,-July 16
Low, Jan. 2

317.2

320.8

321.5

342.5

,

305.1

-

286.1

—

,

-

.

:

3.5

-7.3.8 ft
3.6
"

5.1

3.2

4.5

3.7

3.7

3.0

3.4

3.4

4.8

,3.9

3.7

3.1

3.5

>3.9

Butler Named Fir$t
Ambassador to Australia

3.6

3.0

3.5/

mission, policy making body for
conquered Japan.

be Ambassa¬

Extraordinary
of

the

and Plenipo¬
United States to
the Senate

by President Truman

on

Mr. Butler, A St Paul shipbuilder

From the Associated Press,
also quote:
v

we

"Norman Makin, Minister of
State for the Australian Navy,
will be his country's first.
sador to Washington.

Ambas¬

"The

Legations in Canberra
Washington are being raised
to Embassies, a joint announce¬
Ambassador to Australia, said As¬ ment
said; in line with the -added
sociated Press advices from Wash¬ importance of the Pacific area in
the eyes of both Governments/
ington July 9, which stated that

255.8

,

July 9.

and banker, is the first American

Nelson, T, Johnston,

265.0

_

1945 High; Deo. ,27—"
•./.Low, Jan. 24
——
-

•'

3.0

Australia was sent to
313.9

i*—, ■ 337.8
—

.

—

3.7

-

3.3
—

>

3.7";;
>

2.9

3.6

April/ 1946—

dor

328.7

Two weeks ago,

3.1

3.4

May,. 1946--—.
June,
1946-———-

tentiary

—

-

3.8

4.8

,4.2

Yield

(200)

3.6

-n, /■

Average

3.1

3.6

—

1945

1

(10)

5.2

ler of Minnesota to

Moodys Daily
Commodity Index

,

Insurance

3.7

The nomination o£ Robert But¬

Saturday, July -13
Monday, July 15,
Tuesday, July 16

...

Industrials

are un¬

at

operating rate of steel companies
having 94.% of the steel capacity
of j the industry will be 87.9 % of
Tuesday; July..9, 1946—
capacity for the week beginning Wednesday,
July 10_
;
July 15, compared with 87.8% one Thursday, July 11
I
Friday, July • 12
.i—■<:
week ago, 84.2% one month
ago

or 0.1

123.56

119.00

areas.

semifinished

Steel

119.06

Stock

1946

Low

a

hearths to make up for
scrap
shortage there is not enough to go

/

124.24

as,

iligh

In

half, 1945. June production was
5,660,386 tons, compared with 4,sure for
holding the line against 072,452 -tons in
May, and with
scrap price advances may be dis¬
6,840,522 tons in June, 1945.
sipated by the action of some
"Because of higher
price on
companies whose need for scrap
southern
pig iron the average
is
so
great that higher prices
composite price of steelmaking
pig
would be offered rather than to
iron has risen 25
cents, to $25.75
reduce operations—at least this
has been the normal trend in free

■

123.45

lan.

being

time.

being mentioned in the
representing 'hold-back' average

scrap.

■-

11—

from

to

121.67

119.00

a

effort to

121.46

119.41

12

number of active

an

119.20

116.02

15_*

brought out until steel supply
more ample. Most of
this
tonnage probably would be taken

tonnage

go

old

ceiling prices only to
price controls eliminated, they

116,02

112.56

119.41 .114.27

especially in flatrolled steel, and
that much tonnage of this
sort is
in present
backlogs and will not

around.

112.56

118.80

121.88

al¬

open

dealers

and

118.60

121.46

123.56

122,29

done in fourth and first
quarters,

face of

121.23

119.00

123.34

growing feeling that
considerable duplicate buying was

enlarged

121.46

123.99

ready made.
"There is

121.46

119.41

120.22

July

to place new business at apparent.
price level above the old OPA r "Pig iron supply shows little
of improving^ 'though- the
ceiling."
"""
*
* sign

strap movements today and 89.8 % one! year ago. This
primarily shipments on old represents an increase of
0.1 point
contracts
and

few
new
orders
have been taken
during the past
few
weeks.
Some
large scrap
brokers and dealers have sold

118374

119.20

115.82

119.82

refused

"Steel

at

commitments

115.63
'

126.02

begun to interfere with

quarter

112.56

124.27

21

any

are

nages

third

112.37

118.60

v

CCD.

be

panies, on the other hand, have
only been reluctant but have

on

price quotations, the
price of No. 1
heavy melting steel at
Pittsburgh

rose

follows:

not

bargaining

) eliminated iron
j

as

agricultural implement manufac¬
ture has

113.60

121.25

1946—

cer¬

possibility
might

rises

is

,

situation is still clouded, and
tification tonnage on

121.25

123.34

■'/;> Aaa

125.61

electric motors and steel. The
steel

4,380,930
4,390,762

Baa

123.34

118.80

Corporate by Groups*
R.R.
P.U.
Indus.

Mar. 29

fractional

in unless production and
deliver¬
ies catch up sooner than is now

of suspended animation in price
action will continue if OPA
dies

nore

shortages are still
plants, particu¬
horsepower

A

118.80

Corporate by Ratings*

124.24

12

July

some

'

.rate*

124.20

Apf. 26

war.

"Material

are

Stock Exchange Closed
124.14
118.80
123.56

10

the

becomes

industries the 'hold the line' tac¬

/

since

worrying
larly
in

the«>-

balanced out with price increases
which they claim would be based
on a fair profit
pattern.

cessful.

production

what' effort to retain trade
relationships
legislation with their customers. Steel com¬

against the return of rigid price
they favor a free mar¬

J

to

1,711,625
1,727,225

publication, which further reports

based

control and

-

of the greatest stim¬

was one

1,592,075

unknown

was

price
control
take and the

any

ket

OPA

ulants

averages

v.

Avge.
Corpo-

123.99

5

against any forms of price control
and indicated that the death of

1,341,730

price

same

have contributed to the
passage
of strict price control.
Practically
all steelmakers have been and are

'

ticipated in fhis study Voted '71%

,

yield

'-X'l'

123.95

31IIIZZ!

par¬

housing and

"This attitude

thht

who

1,415,704
1,433,903
1,440,386
1,426,986

"The current situation in steel
markets and in the iron and
scrap
a pseudo free
market," states "The Iron Age," national
metalworking paper, in its issue of today (July 18). "While
price
controls have been off for two
weeks, steelmakers and most scrap
brokers and dealers have refrained from
taking any important

would

executives

3,940,854
4,377,152

field is that of

trend

working

bond

::

Bonds

21

manu¬

4,327,359

Operations Again Show Slight Gain—
Many Duplicate Orders Believed in Backlogs

fact

among

and

•MOODY'S- Hom) 'PRICES
(Based on-Average Yields)

U.S.

24

consensus

5.1

3.2

Steel

action,"

"The

.

facturers is that
supply in almost
all lines will be in
balance with
demand by mid-1947. The metal¬

6.0

4,434,841

_

May

»

Bond Yield Averages

prices

Govt.

June 28

.

1932

-

—11.0

4,295,254
4,384,547

—

1944

4,361,094
4,307,498
4,344,188
4,336,247
4,233,756
4,238,375
4,245;678

9.9

—

4,329,605
4,203,502
4,327,028
4,348,413
4,358,277
4,353,351
3,978,426

3,741.006
—

7.7

—

4,377.221

4,030,058
4,129,163
4,132,680

June 22

—

4,397,330
4,302,381

3,920,444

electric

about two-thirds plan increases of
less than 10% while no
plant in¬
dicates an increase of more than

T.2

(Thousands of Kllowatt-Houqj)

1945

April 13

July 6
July 13
July 20__
July 27

'

to

25%.

3.2

4,321,794

1

*

7.6

"/i'-l

-

3,987,673

June

"u

§1.8
••

•

nuts

plan no
increases in prices within the next
60 days. Of the
remaining 45%,

§2.0

'

5.6

April 6_.

June

'•

and

all the companies checked

% Change

Week Ended—

May ^ 4
May 11
May 18
May 25

"

§5.8"

5.0 (

I

§1.5
8.0

x

~

§2.3 t
*

DATA FOR RECENT WEEKS

April 27

c

8.0

bolts

toasters, automobiles and locomotrves, a study shows that 55% of

1.2

8.7

3.6

>;/,

June 22

0.4

4.0

§2.5

»

Total United States

June 29
.

5.51

;

Rocky Mountain————
Pacific Coast———
.

4.7

1.8 j

/

.

-

-West Central
Southern

July 6

•-:

§1.0

..

Central

coast*which make
everything,

•;

v

178

"Industry
is
not
increasing;
/substantially despite re-'
moval of OPA
ceilings. Covering
several hundred plants from coast'
prices

to

New England( Middle Atlantic——

Moody's computed bond
liven in the following table.

mat,

who

has

been

career

diplo¬

Minister

to

252.1

342.5

Australia, will become Secretary-

264.7

General of the Far Eastern Com¬

and

"The White House also said that
the change was

a

'natural

conse¬

of the increasingly close
cordial
relations
between

quence

and

Australia and the United States/ "

tJ*# 18, 1946

408

Civil Evgineering
"5.

W

$'■■

tially, reflecting earlier, increases in OPA ceilings to coyer recent
waigd "adjustments, as weil as higherifreight costs effective July 1.
Prices of a few metal products, paint, materials, building materials
and clothing rose to higher ceilipgslallowed before' July 11 . Delivered
prices of cement were up' 1 Vz% swith the July 1 freight rate increase.

Construction Totals

$150,593,000 for Week

:

Plan Nationalization

-,

Netherlands Bank
Advices from The Hague, cred¬
ited to Aneta, appeared as follows

continental United
The Labor Department included the following notation in the re¬
ending July 11, 1946 as re¬ port:
in - the "Wall Street; Journal" of
This volume is 22% above
Based on the BLS weekly index of prices of approximately 900 July 6: ■
the previous three-day week, 207 % above the " corresponding week of
The new Netherlands Govern¬
commodities which measures changes in the general level of primary
last year and 18% above the previous four-week moving averaged The
market commodity prices.. This!index should.be distinguished from ment will promote the nationali¬
report made public on July 11, added:
r
.
'
zation of the Netherlands Bank
the daily index of 28 basic materials. For the most part; the- prices
4si ;:private construction this week $73,064,000, is 31%
hbove last
and will propose the socialization
are those charged by manufacturers or producers or are those pre¬
week and .613% above the week last year. Public construction, $77,vailing on*. commodity exchanges.
The weekly index is calculated of other industries "if investiga-529,000, is 14% above last week and 100% greater than;the week last
from one-day-a-week prices. It is designed as an indicator of week tion shows the latter is desirable,"
year. : State and municipal construction; $37,371,000; 20 % above last
to week changes and should not be compared directly with the Premier Louis J. M. Beel told the
week, is 298% above the 1945 week. Federal construction, $40,158,lower house of the States Gen¬
monthly index.
000, is 9%: above last week and 37% above the week last year.
,
eral in an address outlining his
The following tables show (1) indexes for the past three weeks,
.Wv» Total engineering construction for thO1128-week period of 1946
government's proposed policy. V;H:
records a cumulative total of $2,906,291,000, which is 204% above for June 8, 1946 and July 7, 1945 and (2) percentage changes in
Nationalization of the Netherthe total for a like period of 1945. On a cumulative basis, private subgroup indexes from June 29, 1946 to July 6, 1946.
lands Bank, he said, would be
construction in 1946 totals $1,807,459,000, which is 546% .above that
favored because of its central po-*?
CHANGES IN WHOLESALE PRICES BY COMMODITY GROUPS
for 1945. Public construction, $1,098,832,000, is 63% greater than the
sition in the credit sphere.
FOR WEEK ENDED JULY 6, 1946
cumulative total for the corresponding period of 1945, whereas State
His government, he continued,
and municipal construction, $708,137,000, to date, is 379% above 1945.
(1926=^100)
acknowledges the principle that
Federal construction, $390,695,000, dropped 26% below the 28-week
Percentage changes to
every citizen is entitled to a job
.w'f Civil / engineering

.

volume in

construction

States> totals $150,593,000 for the week
ported to "Engineering News-Record."

.

"

j,•
volume for the current week, last

total of 19454

Civil engineering construction
week Und the 1945 week are:
-

July 4,1946 July 12,1945
(three days)
(five days)
$49,009,000
$123,512,000
10,250,000
55,656,000
38,759,000
67,856,000
9,390,000
31,021,000
29,369,000
36,835,000

Private

$150,593,000
73,064,000
77,529,000
37,371,000
40,158,000

Construction

S.

Total U.

Construction

Public Construction

45 State aild Municipal

federal
V'

; In, the

'•

classified

;

construction

waterworks,

.

New

•

.

7-7

and

1945

1946

1946

1945

curity, not only

112.7

112.4

111.5

105.8

+ 4.0

+ 5.1

+ 10.8

140.3

140.0

139.4

129.4

+

9.0

+

9.7

+ 18.2

tion

+

6.8

+ 8.2

+ 13.0

democratic form

+

0.2

+

121.1
leather

and

Hides

Textile

113.7

111.9

123.8

123.5

120.9

118.5

108.5

108.3

108.3

99.1

+ 0.3

+

87.1

86.9

84.8

+

2.3

+

3.0

+

5.5

111.0

110.5

104.8

+

0.9

+

1.9

+

7.4

130.3

129.7

128.2

117.3

93.2

96.9

96.9

96.8

110.4

110.2

97.9

97.9

94.6

135.2

126.7

126.0

125.5

118.3

106.1

104.4

104.4

103.4

95.2

-

■.

—

o 1/

—i

■■

4—-4—
1.,

.

Mar 30

Jan

157,300,000

-

31

162,400,000

"'1944—

,'/•

Dec

-

30

166,000,000

Nov 30

166.900.000

31

141,700,000

Sep 29

140,800,000

Aug 31

140,900,000

b

'•

...

i

106,800,000

-

1 ~ lon ann nnri

Jun 30—

May 31

,M'r'jrr%

::

142,900,000
136,500,000
150,700,000:

July 31

110,200,000

July 31-__i.—
Jun 29——'

-

•

:

";
■>: \

-

■

v.

•

•

Wholesale Prises Increased 4% in Week
Ended July

►

Labor Department Reports

fPrimary market prices advanced 4% during the week ended
July 6,1946, following the suspension of OPA controls," it was stated
on July 11 by the Bureau of Labor Statistics, U. S. Department of
Labor, which added that "prices of agricultural commodities rose
sharply: and there were also increases for a number of industrial
products. The index of commodity prices in primary markets pre¬
pared by the Bureau reached 117.2% of the 1926 average, the highest
level since December 1920 and more than 11% higher than at the
end of the war. This is the most rapid rise since September
1939," said
the Bureau, which further reported:
,

higher,
kets'^ with weak demand, and prices of apples
York.

The

group

index for farm products

100.6

+ 2.6

+ 3.8

+

8.7

port of the organization
velopment of the United

99.8

0.9

+ 1.6

+

6.5

which

and

and

FROM

the

and de¬
Nations
previous government

he

.

and

Other

farm

Iron

0.9
0.7
0.6

6.7

Other foods

0.5

5.0

Nonferrous metals
Shoes _—-—

0.4
0.4

0.3
0.?

2.5, Leather —.—.—
2.0 Chemicals
1.7 Other miscellaneous

vegetables
products

steel

and

Cereal products

10.5, Hosiery and underwear
9.4 Clothing
.

3.7

were

9.7%

0.1

that

which

were

government controls,
vastly increased dur¬

will have to give
gradually to private enter¬
prise and bodies vested with spe¬
ing

wartime,

way

cial

powers.

J
1

Senate Confirms

Dominations for

As^i|MV|pe in Cpmodily
Broadens Qui—Index Rises 4.7%

Prices

index compiled by The National
on July 15, rose substantially
165.3, advancing 4.7% in the week ended July 13, 1946, from 157.9
in the preceding week.
This aggregates a 9% rise during the two
weeks since the termination of OPA.
A month ago the index stood
at 149.0/ and a year ago at 141.2, all based on the 1935-1939 average as
100.
The Association's report continued as follows:
The wholesale commodity price

Fertilizer Association and made

public

to

,.,,

World Fund & Bk Posts
The Senate on July
the nomination by

3 confirmed

President Tru¬

of John W. Snyder as

man

United

of the Interna¬
tional Monetary Fund and United
States Governor of the Interna¬

States

Governor

tional

Bank

for

Reconstruction
a term of

Development for

and

five years."

,v

.4 •

.%

The Senate Banking and Cur¬
due to
rency
Committee approved the
a broadening out of price advances, with 6 of the 11 composite groups
of the index showing advances.
The foods index,rose 3.8%, only nomination on July 2, and on the
about half as much as in the preceding week.
There were 15 price same date approved the nomina¬
tion of John S. Hooker to be
series in the foods group that were higher, including butter, flour,
United States Alternate Executive
dressed meats, sugar, lard, evaporated milk, canned tomatoes; dressed Director of the International Bank
for a term of two years and until
fowl, and cottonseed oil. The farm products group advanced 5.4%.
The cotton index soared to new high peaks.
The grains index re¬ his successor has been appointed.
Also at the same time (July 2) the
flected higher prices for wheat at Minneapolis, rye, and barley, which
committee approved the nomina¬
more than offset lower prices for corn, wheat at Kansas City, and
tion of George F. Luthringer to be
oats. The livestock index advanced with higher prices for cattle, U. S. Alternate to the Executive
Director
of
the
International
hogs, lambs, and eggs, but lower prices for poultry. The textiles
Monetary Fund for a term of two
index rose sharply with extremely high quotations for Japanese silk
years and until his; successor has
mainly responsible for the rise. The metals index was up, due to been appointed. The appointments
advances in pig iron, lead, zinc, and silver.
The building materials of Messrs. Hooker and Luthringer
index advanced with higher prices for white lead and linseed oil. were confirmed by the Senate on

general index during the latest week was

The rise in the

a

tations averaged 17% higher and prices of %$ible tallow and cotton¬
seed oil advanced susbtantially.
Reflecting the increases in grain
markets, prices of cornmeal increased 50%. Poorer quality eggs declined in price. On the average food prices were 8.2% above a month
ago and 13% above the corresponding week of last year.

.

lieves

1.5
1.5

Cement
Paint and paint materials

13.7

—

given.
purely domestic spheres,
explained, his government be¬

In the

1946 TO JULY 6, 1946

poultry

fats

Fruits

declined.

preceding week 5 advanced and 6

second

WEEKLY WHOLESALE COMMODITY

%

'

'

25.3

'

ffnnrf*

,1 b—

Cottonseed nq

23.0

;•

Farm Products—

.

——'

Cotton—.———.-———

i—

I

Grains
iw.-X.1vpst.nr.lt

■

-

1 V

„

Latest Preceding Month _Year
Week
Week
Ago
" Ago
July 6, Juno 15, July, 14,
1946
1946
1945
167.2
161.1
147.6
142.4
183.7
176.4
147.4
145.2
202.3
197.3
163.1
163.1
207.5
196.9
181.1
167,1
322.1
294.5 .
276.2
216.4

...

231.3

.

1.90.3

172.9

237.2
: 182.4

•••'I

V'-

Postmaster

Albert Goldman

French Customs,

LZLiLs

Fats and Oils

-

;

Parcels To Syria, Lebanon
that Form

made known on July 8

'

>

noted in

issue, page 3484. Mr.
Vinson is now Chief Justice of the
June 27

;

Total Index
■

ing Fred M. Vinson, as
our

July 13,
1946

Group

Bears to the

became
succeed¬

recently

Snyder

Mr.

••

Association

1935-1939=100*
Each Group

July 3.
Secretary of the Treasury

United States.

PRICE INDEX

Compiled l»f The National Fertilizer

Average primary market prices of foods rose 6.8% in part because of termination of subsidies.
Prices ^pf > some meats were up
.sharply but markets were confused and some quotationsregularly
collected by the Bureau were not available Fresh beef quotations
in some markets were nearly double the pre^ous week. Butter quo¬

v?

+

Increases

in some mar¬
lower in New

higher than
month ago;and 18.2% above the first week of July 1945.
was

his cabinet
strong sup¬

the

104.6

+

Farm Products and Foods
Average prices of farm products
jumped 9% during the first week of uncontrolled prices. Grain quo¬ The miscellaneous commodities group reflected higher prices for lin¬
tations averaged 23% higher with corn showing the
largest rise seed meal, bran, middlings and newsroll paper.
(50%), Prices of livestock and poultry rose 14% with the biggest rise
During the week 36 price series in the index advanced and 4 de«
in prices of hogs (nearly 20%). Prices for fresh fruits and vegetables
clined; in the preceding week 26 advanced and 1 declined; in the
were generally
although potato prices declined
—

"

continue

would

105.4

23.0
17.7

146,700,000

127,100,000

Aug 31--—

4.0

-

declared

Beel

Mr.

8.7

105.1

Grains

102,800,000
U8.JOO.OOO

111,100,000

"•

2.9

tion.

+

Nat'l Fertilizer

n-.

—

Oct

■

■

+ 11.4

bank

158,900,000
—-

+ 14.3

+I2.6

106.3

Bituminous coal

156.100,000

'—

Sep 28

t.y, r 1

"

Feb 28

'.f

V!:

i

+ 7.7

1.6

106.6

Meats

Anthracite

*

171,500,000
178,200,000
'

Oeo .31,

'■

*1945—:

May 31—^
Apr 30 :

•

•IIOV 30—
Oct 31-4-

j

.

.

173,700,000

,

;

••.

'^"'1915'"

.

^

148,700,000

-

•

3.6

+ 6.7

+

103.4

Dairy products

the totals for the last two years:

30—126,000,0(10

Jan 31,-—

+

+

JUNE 29,

Livestock

with $148,700,-

1000 on April 30, 1946, and $102,800,000 on May 31, 1945, the
^reported on June 11.

Feb., 20-

0.1

102.0

PERCENTAGE CHANGES IN SUBGROUP INDEXES

Reports received by the Federal Reserve Bank of New York
show a total of $126,000,000 of open

J.

4.2

+

106.3

products and foods

Outstanding in May

market paper outstanding on May 31, 1946, compared

Apr:' 302__Ui--l-l_—

2.9

+

0.1

problem of public health
which, he explained, is still se-.
riously undermined as a result of
the long years of German occupa¬
the

109.4

'>■;••

from • commercial paper dealers

.

+

0.5

attention

also will give full

It
to

had
■

Oils

Commercial Paper

government.".

of

106.6

Coke

4.1:

1.4

+

~

Capital

the

of

maintenance

the

107.7

products

■iM iM

May

+ 11.4

+

All commodities other than farm

$1,471,513,000, reported for the corresponding period of 1945.

'

+

for

107.8

110.9.

capital for construction purposes this week totals $17,154,-

are

+ 2.0

All commodities other than farm

buildings, commercial buildings, and

New

^4/The following

+

1.3
0

106.2

97.9

+ 0.3

95.4

110.7

98.0

materials

social

9.8

87.5
111.6

110.7

Finished products

000, and is made up of state and municipal bond sales.
New capital
period of 1946 totals $724,017,000, 51% less than the

v"

+ 0.5

se¬

demand of
justice but also as a condi¬
a

as

4.6

130.7

Semi-manufactured articles

for thd" 28-week

-

+

89.5

Miscellaneous commodities
Raw

2.6

112.G

108.8

products

and lighting

—

sewerage,

113.4

107.2

124.0

products

materials
Metal and metal products
Building materials
Chemicals and allied products—
Housefurnishings goods
Fuel

,

:'

6-8

1946

152.9

products

Foods

bridges, public buildings, commercial buildings, and unclassified construcaon recorded gains this Week over the previous Week.
All Of
the'nine! classes recorded gains this week over the 1945 week as fol¬
lows: waterworks, sewerage, bridges, highways, earthwork and drain¬
age, public buildings, industrial
unclassified construction.

"reasonable material

to

6-29

1945

117.2

commodities

All

Farm

,

groups,

July 6 1946 from—

f

7-7

1946

6-22

6-29

7-6

Commodity group—

'

July 11,1946
(five days)

J

*

!

6-8

1946

"

163.5

163.7
160.6

No.

2967,

Declaration
is

no

for

the

longer re¬

quired in connection with

parcel

de¬
the Republic

post packages addressed for
livery in Syria and

17.3
Fuels
138.6
138.6
131.4
133.3
of Lebanon,
Each parcel post
,10.8
Miscellaneous commodities—-.—147.1
140.7
138.6
133.7
Average prices of all commodities other
8.2
Textiles
207.8
172.4
169.6
157.3
package for Syria and the Repub¬
than farm products and foods increased 0.9% during the week. For
.7.1
MPt.nls
:
r__.i
125.3
123.5
122.2
103.9
lic of Lebanon, said the announce*
6.1
Building materials.
" 169.4
,168.3
168.1
153.8
most industrial commodities
manufacturers held prices at ceiling
1.3
Chemicals and drugs—————127.5
.127.5.
127.5
125.9
ment, must be accompanied by
levels, awaiting final action on OPA. However, there were price in¬
.3
Fertilizer materials^;———
——118.9
118.9
118.2
118.3
creases for cer.ain chemicals in tight supply, such as inedible tallow,
.3
Fertilizers
119.8
119.3
119.8
119.9
two copies of customs declaration,
.3
Farm machinery
—,
109.0
1Q9.9
105.8
104.8
phenol and anilin oil, and the price of vanillin, for which manufac¬
Form
2966, one dispatch note,
turers had been seeking ceiling adjustment, jumped 73%.;-; Copper
100.0
All groups combined
'
—.
165.3
157.9
149.0
141.2
Form 2972, and one parcel post
sulphate prices increased to the level of new ceilings previously
'Indexes on 1926-1928 base were* July 13, 1946, 123.8;. July 6, 1946, 123.0 and
sticker, Form 2922.
*
'u t
allowed.
Prices of anthracite, bituminous coal and coke rose substan¬ July 14, 1945, 110.0.
<
.
"

'Other Commodities




—

.

—

——.

,

.

.

:

—.

_

.

<

.

,

.

.

„

_

{Volume 164,

Number-4508

THE COMMERCIAL &
FINANCIAL CHRONICLE

Daily Average Crude Oil Production for Week
Ended July 6,1946 Decreased 51,600 Bbls.
$ v The American Petroleum Institute estimates that the daily aver¬
age gross crude oil production for the week ended July
6, 1946 was

4,905,450 barrels, a decrease of 51,600 barrels per day from the pre¬
ceding week. The current-figure exceeded output for the correspond¬
ing week of 1945 by 19,250 barrels per day and was 157,450 barrels
in excess of the, daily average figure estimated by the United States
Bureau of Mines as the requirement for the month of

July, 1946,
Daily production for the four weeks ended July 6, 1946 averaged
{4,943,150 barrels. The Institute further reports as follows:
k

Reports received from refining companies indicate that'the in¬

dustry

whole

as a

ran

stills

to

Bureau of Mines basis approxi¬

on a

mately 4,875,000 barrels of crude oil daily and produced 14,295,000

barrels of gasoline; 1,919,000 barrels of kerosene; 5,576,000 barrels of
distillate fuel, and 8,366,000 barrels of

residual fuel oil during the

Weekly Coal asd Coke Production Statistics

Graduales Class of 168

t

hive

91,712,000 barrels, of finished and unfinished gasoline; 14,348,000 bar¬

showed

kerosene; 39,394,000 barrels of distillate fuel, and 47,743,000
-

oo-:

tV

and graduated

*

The Bureau also reported that the
estimated production of bee¬

......

rels of

coke

in

the

United

States

for

the

week

ended

July- -6,

1946,

decrease of 30,900 tons when compared with
the output for
the week ended June
29, 1946; and was 35,000 tons less than for the
corresponding week of 1945.
a

(

DAILY AVERAGE CRUDE

OIL PRODUCTION

*B. of M.

y'Week

Allow¬

Calculated
"■.

ables

.

4 Weeks

Week

Ended

Ended

July e,

July 7,

1946

Change;

1945

from

Ended

Begin.

Requirements

ESTIMATED UNITED STATES PRODUCTION
OF BITUMINOUS COAL AND
LIGNITE
.(In Net Tons)
:
:

(FIGURES IN BARRELS)

Actual Production

state

July 6,

1

Previous

•

July
••New York-Penna.—

48,000

JPlorida
•♦West Virginia

Week

1946

July 1

350

>:

—

8,400
7,600

••Ohio—Southeast —7
Ohio—Other

—

6,000

—

19,000

2,650
19,750

210,000

.Blinois

Kentucky
Michigan

211,600

31,000
800

170,000

254,800

19,700
208,600

30,000

700

Oklahoma

384,000

385,545

t383,350

r

49,100

750

50

—

•Revised.

5,500

268,850

3,900

385,550

150

900

,

'

19,600

242,300

I

District III

19,500
158,100
511,359

District IV

228,000

District VLSast Texas———

315,000

Other Dist. VI

107,800

"District VII-B

32,000

—

District II

«

—

+

4,050

1,600:
200

400

;

District VII-C

District Vm

27,950
569,15?

—

r

+

2,700

District IX

129,300

—

85,150

—

3,100
1,300

4

District X

500

2,063,000

'

:.y:'

i-.'/>

>1946

States

28,350
570,650
131,650

640,000

2,243,200

2,209,400

950

81,900

69,750

+

4,550

297,250

296,900

+

5,500

379,150

366,650

and

and

are

State sources

of

or

final

Mississippi
Alabama

il

«

1,200
97,000

New Mexico—So. East]

New

*

" 60,000

——

»'

63,350

fc

—

,250

Wyoming

450

112,000
22,000
28,000

—

Montana

—

Colorado

•

98,150

—

California

97,750

102,850

50

500

450

—

400
200
650

80,000

52,000
t >750

111,750

+

36,300

§839,700

100

"r. 550

—

111,250
25,500

844,000

+

73,650
63,400
1,150

+

1,200

106,000

Mexico—Other—J

25,800

+

110,300
20,800

7,600

34,150
881,150

10,900
940,200

-51,600

879,500

4,748,000

4,943,150

4,886,200

—

4,905,450

••Pennsylvania Grade included above

55,650

—27,350

67,150

57,700

•These are Bureau of Mines calculations of the requirements of domestic crude oil
deductions of condensate and natural gas derivatives) based upon certain
premises outlined in its detailed forecast for the month of July.
As requirements may

(after

,be

supplied

either, from

stocks

from

or

production,

new

contemplated

r;V

tOklahoma, Kansas, Nebraska figures
iThis is

; v

Includes

the

net

basic

shutdowns

and

allowable

as

exemptions

for

arc

of

the

7:00

cauculated
entire moath.

on

a.m.

July 3,

31-day

a

With

the

CRUDE

RUNS

TO

STILLS;

OP

1946.

STOCKS
6,

(Figures in thousands of barrels of 42

>■ -

„■•

Figures

in

estimate

of

this

OF

section

of

§GasoMne tFinith'd

1

District—

East

"T."

Coast

99.5

808

102.1

1,713

76.3

.

83

58.0

231

5,920

2,362

315

District No. 2

120,000

1,000

1,372,000

1,355,000

478,000

562,000

29,000

36,000

!

342,000

405,000

410.000

53,000
■

47,000
4,000

2,000

62,000
29,000
31,000

29,000

'

28,000

39,000
834,000

lignite)

Utah

1,000
111,000

Virginia
Washington

421,000

854,000

144,000

;

§Other Western States

89,000

"1,000

363,000
24,000
2,008,000
1,117,000

184,000

1,000

12,380,000

Total bituminous & lignite

the B. & O. in

1,000

2,304^000

tWest Virginia—Northern

38,000

715,000
2,885,000
124,000
1,000
118,000

115,000
402,000
20,000
2,350)000
820,000

23,000

tWest Virginia—Southern

84,000

774,000
2,960,000
150,000

3,151,000
146,000

Tennessee.

fIncludes operations

36,000

5,000
79,000

Pennsylvania (bituminous)
(bituminous &

127,000

11,920,000

on

and Tucker Counties,
•Vx,?

•

v

flncludes Arizona

*

1"

;

■

/

Latest
The

.

Copper Institute on July 11 released the
following statistics
pertaining to production, deliveries and stocks of
duty-free copper.
OF COPPER

STATISTICS

REPORTED

BY

MEMBERS

OF

THE

COPPER

totals

plus

an

on

a

Deliveries

Duty

Free Copper
Vear
rear

1939—
1940

of

rear

1941—

Resid.

rear

1942.^:

Fuel

Fuel

Oil

Oil

rear

1944-

9,191

Year

1945—

Year 1943—

422

216

6 Mos., 1946

to Customers

tDomestic

818,289

992,293

Gas Oil

& Dist.

12,161

Production
♦Crude
Refined

836,074

814,407
1,001,886
1,545,541
1,635,236

1,033,710
1,065,667
1,135,708.

1,016,996
1.152,344

Stocks

1,194,699
1,056,180
841,667

1,206,871
1,098,788

67,726
69,950
76,395

145,904
172,585
218,488

—

—12,172

66,780

200

1,045

63

147

174

Jan., 1945—

73,754

2,686

17,925

2,252

5,562

Feb., 1945—

78.3

377

80.4

1,037

8,000

1,016

2,433

4,037
1,367

67,496
76,537

Inland

59.8

230

69.7

933

2,945

376

410

701

Coast—

89.2

1,206

97.5

3,651

14,457

5,034

97.4

353

135.8

4,093

May,

1945.

939

2,120
1,172

6,400

Louisiana Gulf Coast.

74,469

2,059

1,428

1945-

72,271

75,436
85,319
74,377

161,111
139,203

June,

94,031

1945.

72,855

72,995

1945.

88,661

68,253

1945-

64,091

Oct.,
Nov.,

1945.

1945.

69,322
65,586

Dec.,

1945.

62,641

55.9

46.8

;

1,822

1.18

245

392

163

Rocky Mountain-r—
f.v District No. 3-

19.0
:

70.9

134

85.5

District No. 4

California; '2*22.

11
787

84.6
x

>

37

81.2

374

81.4

2,076

':■;

94

1,918
14,178

.

20

44

39

158

486

748

691

8,878

24,645

Total U. S. B. of M.
basis July 6,

85.8

Total U. S. B. of lit.-.
basis June 29, 1946

U. S. B. of M. basis
E

■iy:

4,875

90.2

14,295

*91,712

14,348

39,394

47,743

4,854

1946—

87.3

14,500

92,333

13,881

37,762

46,447

-

unfinished

5,036

15,417

186,141

9,834

33,657

40,965

stocks of 8,374,000 barrels,
tlncludes unfinished
gasoline stocks of 12,220,000 barrels.
tStocks at refineries, at bulk terminals, in
transit and in pipe lines.
§In addition, there were produced 1,918,000 barrels of
kerosine, 5,576,000 barrels of gas oil and distillate fuel oil and 8,366,000 barrels of
residual fuel oil during the week ended July 6, 1946, which compares with
2,056,000
.barrels, 5,325,000 barrels (revised-figure) and 8,828,000 barrels, respectively, in the
preceding week and 1,545,000 barrels, 4,968,000 barrels and 9,418,000 barrels,
respec¬
tively, in the week ended July 7, 1945.
'
*lncludes

1945.

74,392

.

69,127

1,446

+

14,659
9,732

33,145

+

2,633

+

gasoline




69,715
57,142
51,861

i

«

6,028

2,454

2,573

142

5,281

55,453

-C.

70,218

66,062

::

+

Jan.,

58,178

69,008

1946.;

41,667

49,923

1946-

20,139

Apr.,
May,

1946.

41,832
29,280

18,989

1946.

31,897

20,551

32,771

23,870

95,267

Mine

or

smelter production

or

i

8,388

6,897

,87.4 \.+

—

18,946

+

—

—

—

72,799
74,339

"909

—

4,150

11,641

1,041
+
4,632 *• +
3,421 v+

—10,830
—

8,256

+

5,238
512

2,087

3,713
1,540

70,249

21,693,
10,291
11,346

4,801

+

+

10,306

79,145

+

8,901

+

3,391

shipments,

and custom Intake Including scrap.
deliveries of duty paid
foreign copper for
,

„

< •

v.

-

•

warehouses,
,

.

but
,

SComputed by deference between n^ine and teflned
production.'
NOTE—Statistics for the month of May,
1946, have been revised.

'

',-v

not

.

276 applicants were
accepted; for
the new class which came to the

Rutgers campus for the first time
June 17. The freshman class ~
of last year, which was the
junior
-

on

this year, was the ■■ second
largest class in the history, of i the
school. It consisted of 238>men.

Adding to these groups the 168
in

the

graduating class, the total

number of students

the Rut¬

on

gers campus the past two%eeks
was 682.
41 states and the terri¬

tory of Puerto Rico
sented

in

the

were

repre¬

student; body, y 28

and 83

communities

•

graduating
was

in
the
The class which

gradu¬
ated on Junex 28ibringsthe-total ^
number of bank officers lyhp: have
gone through the arduous»' twoyear course of the school and re¬

ceived its

diploma

to

up

a

total of

1,505.
included the presentation: of the
class gift to Rutgers University;
presentation of the diplomat by
Loring L. Gelbach, Chairman of

The

the

commencement

Board

of

>

exercises

Regents

of

The

Graduate School of Banking, who
is President of the Central i Na-,
tional Bank of Cleveland; award¬

ing of the Richard W. Hill award
to the oldest man in the cMss to

successfully complete the course;
and^^ a charge to
class by ^Dri;
Harold Stonier, director of the
school. The Richard W. Hill award
bestowed on Edwin Howard

was

Jones, Assistant Treasurer of the
Waterbuiy Savings Bank, Waterbury, Conn., in recognition of his
interest

in

education

and progressiveness of

thought.
">!•

fi*.*

Sav. Loan Ass'ns

For Fourth Time in Year
For

the fourth time since1 the

beginning of 1946

a

new

set for mortgage

record

loans5 made

ing to figures released July 5 by
Zebulon V. Woodard, Executive
Vice-President of the New, York
State League of Savings and Loan
Associations.
*Based

The advices state?

reports received from
associations throughout.,the state,
savings
and
loan
associations
loaned an estimated $24,280,775 on
all types of mortgages during the
month of May, 1946. This, is an
increase of 2.5 % or $695,363 over
the record established in April, It
is also estimated that mortgage
loans made by these associations
for the year thus far are running
more than 150% ahead of mort¬
gage loans made during the year
1945, or a total of $91,523,694. '
"Loans
homes

on

the

for

amounted

>

/

purchase, of
to

$19,516,293

during the month of May.

For

the construction of homes ah ag-

.

gregate of $2,044,289 was loaned
and

refinanced

loans

^

Including

;

were

4,090

+

.75,754

'.

+

65,448
•

TBeginning March, 1941, includes
domestic consumption.
tAt refineries on consignment and
In exchange
consumers' stocks at their plants or
warehouses.
>

3,592

+

+

2,106|

'

93,647

1946-

I,b44 u

7,065

5,428

73,913
74,425
76,512

58,590
75,756

115,601
86,089

—

—10,850

80,316

Feb.,

•

—

68,675

104,104 4
119,973 i p:
103,464

1946.

June,

—

63,841

86,840

70,363

+

-

■

83,478

45,145
-

Mar.,

85.8

July 7, 1945———

Apr,,

1945.

10,255
13,188

76,166

55.9

Mar.,

?

16,713
67,208

—

70,738

July,
Aug.,
Sept.,

—

+

—

79,145

89.6

—

—42,608

76,512

|

—130,270

+ 16,636

52,121'

1,643,677

909

Refined

—48,671

65,309

524,950

75,564

_

1,517,842

202,480

...307

§Blister

159,485
+17,785
142,772: -—41,417

48,537

1,636,295

843.113

235,625

Period

134,152

r

Stock Increase( + )

End of

Export

95.2

No. La. & Arkansas.

mission than at any previous
;timew
a result, the G. S, B. had
the
largest, freshman class on record.

by savings and loan associations
in the State of New York; accord¬

tRefined
U. S.

59

;

>

As

was

:} 768

Gulf

sought ad¬

Report Record Loans

Summary of Copper Statistics

84.7

Texas

wart, years.

the

87.4

5

the
men

N. & W.; C. & O.; Virginian; K. &
M.; B. C. & G.;
Kanawha, Mason, and Clay Counties.
iRest of State, including

Panhandle District and Grant,
Mineral,
and Oregon.
•Less than 1,000 tons.

Ind., HI., Ky
Okla., Kan., Mo
Texas

receded; during
This year more

continued
11,762,000

(In Tons of 2,000 Pounds)

tStks. of tStks.

22,873

107,000

958,000

North & South Dakoa (lignite)
Ohio

Appalachian—
District No. 1

75,000

368,000
4,000
94,000

v

INSTITUTE

basis-

% Dally Crude Runs
Produc'n
ani!
tStocks
atRef.
Unfia.
of
Rexin'g
to Stills
KeroCapac. Daily % Op- Inc. Nat. Gasoi'vie
Stocxs
sine
Report'g Av. erated Blended

416,000
7,000

98,000
1,077,000

Montana (bitum. & lignite)
Mexico

Wyoming

June 30,
1945

118,000

1046

reported

Mines

June 22,
1946

1,146,000

gallons each)

include

29,

£

2,

New

on

operators.)

34,000

_

Kentucky—Eastern
Kentucky—Western.
Maryland
Michigan

and

the

By 1937

he number had grown to
591, but

class.

1,000

and Missouri

FINISHED

unreported amounts and are therefore
-Bureau

from

It began in

class of 220.

represented

536,000

;—

Kansas

AND UNFINISHED GASOLINE,
KEROSINE, GAS OIL AND DISTILLATE FUEL
AND RESIDUAL FUEL OIL, WEEK ENDED JULY

i

1,924,400
authorized

and
exception of

of California Oil Producers.

GASOLINE;

28,037,000

65,000

Indiana—L

SUMMARY
PRODUCTION

26,678,000

annual returns

a

basis

those fields which were exempted
entirely the entire state was ordered shut down
days, no definite dates during the month being specified; operators only being
required to shut down as best suits their operating schedules or labor needed to
operate leases, a total equivalent to 4 days shutdown time .during the calendar month.

§Recommendation of Conservation Committee

1937

29,513,000

118,000

Oklahoma
;

for four

,

1945

27,746,000

1,419,000

arid

the

1

July 10,

1946

7,0C0

Illinois

withdrawals

amounts of condensate which is

for week ended

July

July 7,

1935 with

class
;

30,117,000
28,955,000

400,000

Georgia and North Carolina

from crude oil inventories must be deducted from the Bureau's estimated
requirements
to determine the amount of new crude to be produced.
In some areas the weekly

estimates do, however, include small but indeterminate
mixed with crude oil in the field.

■■

Week Ended

Arkansas

Texas

Total United States

913,000
878,000

June

-

t't 750:/

July 6,
:

1946

—16,300

+

K'v:

weekly estimates are based on railroad
carloadings and. .river
subject to revision on receipt of
monthly tonnage reports from

86,100

73,800

r~"

*

——Calendar Year to Date-

1,212,000

State—

+

78,969

y

3.5 working days.

on
y

-

total-

current

jhlpments
district

Iowa

.1

\

73,800
104,700
108,800
1,674,100
3,138,400
washery and dredge coal and coal shipped by truck
from
tExcludes colliery fuel,
tSubject to revision.
§Revised.

(The

383,150

427,000

-

'

ESTIMATED WEEKLY PRODUCTION OF
BITUMINOUS COAL AND
LIGNITE,
BY
STATES, IN NET TONS

.il

380,000

'

'•

1945

1,261,000

Colorado

..

1945

its first class in 1937.

states

82,500
300,650

-

'

July 7,

-

666,000

Alaska

2,227,450

July 7,

1946

JAverage based

5'

§ June 29,

Alabama

i."* 2,110,000 12,356,381

tJuly6,

1945

♦Includes
operations.

107,450
32,300

'

Jl,877,000

8,050,000 241,540,000 305,475,000
1,610,000
1,552,000
1,918,000

Beehive coke—

323,250

450

+

July 7,
4

1946

12,380,000

t July 6,
1946

tCommercial produc.

44,000

—11,000
—

*June29,

,

1946

-Week Ended-

514,400
229,200

—

*

:

.•

Penn. Anthracite—
•Total incl. coll. fuel

388,750

156,250

—

44,150

'

2,450

V

6,570,000

tSubject to current adjustment.
..

United

District

■i

July 6,

..

—Jan. 1 to Date—

ESTIMATED PRODUCTION OF PENNSYLVANIA
ANTHRACITE AND COKE
(In Net Tons)

fltex as—
'

.

209,250

30,800
47,100

,

,

—

2,600
11,050

3,150

—

„t4.

Bituminous coal & lignite—
Total, including mine fuel—
Daily average

7,050
5,050

5,800
2,700

+

260,000

•

4,700

+
—

Kansas

9,750

.

Week Ended

250

100

+

t800

—

300

500

+

45,000

45,600

.

300

—

31,400

47,000

51,600

v;100
4,250

+

8,4W

~J

Indiana 2

Nebraska

—22,800

41,250

Banking

.

Week ended July 6,4946; and had in storage at the end of the week

barrels of residual fuel oil.

School of

The total production of soft coal in the week ended
July 6, 1946,
as estimated by the United States
Bureau of Mines, was
6,570,000 net
tons, which compares with. 12,380,000 tons in the
preceding week and
The Graduate School of
Bank8,050,000 tons in the corresponding week of 1945. The
decrease in :.ng, conducted
by the American
output was largely due to the four-day vacation
granted miners this Bankers
Association, brought to a
year, and to the universal observance of
Independence Day. - From close its 12th annual
summer resii • *
Jan. 1 to July 6,
1946, soft coal output was estimated at
241,540,000 dent session at Rutgers
net tons, a decrease of
University. V<
20.9% when compared with the
305,475,000 at New Brunswick, N. J., on Jun£
tons produced during the
period from. Jan. 1 to July 7,1945.
28 with commencement
;
exercises
Miners in the hard coat fields of
Pennsylvania had the same four- for a graduating class of 168 bank
day vacation period, and anthracite
production for the week ended officers.
While the commence¬
July 6, 1946, approximated 666,000
tons, compared with 1,261,000 tons ment brought to an end the 11th
mined in the preceding week and with
an output of
year in the Graduate School's
913,OOA tons in
life,
the comparable week of
1945, ending July 7. The calendar! year to it also marked the
beginning of
date shows an increase of 8.5% when
he 12th year.
compared with the correspond¬
The school was
ing period of 1945.
1
established in 1985
/

.

to

$1,296,701.

and. all other purposes
to

$1,423,492."

amounted

Loans for repairs
amounted

r
■

?

in4>

000

Trading on Mew York Exckanges ; /
The

Securities

Commission

Exchange

and

tons

of July

copper

was

made- public T on

^V'

cadmium/; ;)3ti^muth/^9n^^

re¬

that total shipments for. July out
July 10, figures showing the volume of total round-lot SvOck sales on of the government's holdings may
Pe^ihg' / cl^ifmati(^; • bf the
the New York Stock Exchange and the New York Curb Exchange
approach 75,000 tons or more; In price situation in antimony/ sellers
and the volume of round-lot stock transactions for the account of all other
words, the government will withdrew from the market on
members of .hese exchanges in the week ended June 22, continuing be the principal selle? un il sup-? Monday/ July F 8; ' There1 was no
a series, of current figures being published weekly by the Commis¬
plies ; from domestic sources; in* (fubiation - on-July'8/- 9/ and 10/
y/v."
'' ••■v- -■>
sion.
Short sales are shown separately from other sales in these crease as production returns to a
Tin
figUreS. V'-///://■:•■'■';'/// ' normal rate after the long period
t The
/
Trading on the Stock Exchange for the account of
of inactivity forced on, the indus^
Giyilifiii Production Admin;
istratiohv announced during ^ the
(except odd-lot dealers) during the week ended June 22 (in
try by labor disputes*,,
..?
week •that /consumers vol • pi^; fin,
lot transactions.) totaled 2,150,14$ shares, which amount was 16.71%
JRefinei^f haye/^^ adjusted ^ their
of the total transactions on the Exchange of 6,428,890 shares.
Trns charges for copper cast in forms will obtain 10% more metal in the

18; W6 £

Thursday

Poland

from'Tprice':' bbntrof.?;:^//-/^.^

needs
The trade believes

leased to take care of urgent

of consumers.

^

FINANCIAL CHRONICLE

THE COMMERCIAL &

410

fcrfatfUWMirf4a^^yi^'V&'ks*WlVu.M.t ^tai^^wrV^abiSuMfed^jiWWUW^Wti*

Signs Pacts

Poland, has coiicluded cqmme^-

/.

cial

agreements with nine.

,

counr-

tries, according to Asspciatpj. Rress' K
advices from Warsaw, appearing '

•

iri the ''Wall' Street Journal"

...

July.6, which added:,

1

of

;

:

They Rr^ Soyiest Russia^Bweden, ;
Norway; Denmark,, RomanXRuB^ u
:

members
round-

gary,
Yugoslavia, Bulgaria andu
Switzerland. : In additibn, there is

an agreement to ship 100,000 tons ,
wi h member, trading, during the' week ended June .15 Of other than; ordinary shapes up* third quarter than they received
of coal monthly to France, and
16.04% of the total trading of 5,688,490 shares. /.; ward, to absorb higher costs. This in the; second quarter; The ^sup*
another, with th^/ Soviet zone "of *
; ' : On the New York Curb Exchange, member trading during the ma.ter has been studied by OPA ply/situation;
: npt changed^
occupation in Germany.
'
J
week ended June 22 amounted to 644,875 shares, or 16.38% of the officials and approved before the was stated, and the;-, larger allot¬
Commercial ; negotiations ^ now 3
total volume on that exchange of 1,968,045 shares, puring the week, pricing body collapsed at the end ment > will ; comb '• out - vof stocks
are
under way .with France and V
ended June 15, trading for the account of Curb members of 594,205 of June.
On slabs the premium owned, by; the government.
In
Finland, arid for the expansion of
shares was 14.19% of the to.al trading of 2,093,730 shares.
now
in effect is 0.125c and up; market circles it was felt that the
the agreement with Hungary;
:
"
cakes 0.25c and up; and billets action taken by CPA points to an
Total Round-Lot Stock Sales «b the New York Stock Exchange and Rewnd-Let Steok
Dr/Stefari Jedryehowski, hfinik-4
Transactions for Account of Members* (Shares)
improved supply outlook for late
0.95c and up.^ H-vi''• '•
ter of Navigation and
Foreign J
'r;-''
1
WEEK ENDED JUNE 22, 1946
this year or early' next year and
Lead
Trade, said in an address that "the
v
Total lor Week
\%
the nee&ta ihaii^
stocks
Polish Government is also anxious
A*. Total Round-Lot Sales:
There was no question as to
153,850
is no longer necessary.; '
1; <
;
-rShort sales
to initiate the widest possible com¬
where lead stood pricewise during
6.275,040
v tOther sales
The' Office of Metals Reserve
—
mercial relations with the Anglothe last week. Leading sellers re¬
r-'
T
6,428,890
has arranged to/release July tin to
'v' / Tata)-saleaported an excellent demand on consumers from its stockpile at Saxon powers but the governmentB. Round-Lot Transactions for Account of Members,
the 9%c, New York basis, but
is, hqwfever, awa're that trade with
the price that; prevailed on June
Except for the Odd-Lot Accounts- of Odd-Lot
these countries could only attain a *
:
saksc were limited .to nearby met^
Dealers, and■ Specialists; /./••/
-/
30, which would be ihe old ceiling
ii
1, Transactions of specialists tot stocks la whichyery :''large#:*»luriie,; .iL:;based;^:on^
al, owing to ihe dearth in supplies established by OPA, or; 52c per
:$i
they are registered—;■
large credits granted by them."
and the voluntary restrictions that
677,990
-w ..Total purchases
;
;
pound. /. t
99,450
have been in force for some time
Raid:^transact(oriRalrea<iy
)1 Short-sales«ii*w^--^-.^«i
Straits quality tin for shipment
556,490
%\ •/.: ■ :■ / tOther sales———
to eope with the situation.
been concluded with Great Brit¬
was nominally as follows:
7
'
Metals
Reserve has released
10.37
ain for the export of furniture and r
655,940
Total sales---....
July
August Sept
about one-third of the tonnage of
cement
from
2. Other transactions initiated on the floor—
Poland, and "we
Jiuly 4
—Holiday— <
91,880
Total- 'PurchaseaA-...n^.,^..,. jumiiii,.'
shall soon- export to the U. S. A.,
foreign lead originally allocated July
/—/
—No Market—
10,930
Short sales-»..^_„r.—«,-^»-,—
for July. The setJementh^sis is July 6 ;
—No Market-r
149,620
china, cut glass, peasant cloth, et '
:/;/-:./$Qtber/^

compares

r

1 824 149 shares or

,

'

.

-

,

—.

*

-

«'

V

i

s

,

;•

,

,

-

■

"

.

>

'*

,

-

.

price in effect on date of
shipment. There were hp new de-.
velopments in regard to purchases
of foreign lead for the third quar¬
to be the

Total sales.
3. Other transactions
Total
■

initiated off the floor182,816

purchases

28,220

Bhorjt&ales—

tOther

136

166,550

——

sales

352,753

—

ter.

386,973

Total sales—^—v.

16.71

1,197,463

Total Round-Lot StockSaleson tho New

,

Tork Curb Exchange and Stock

Transactions for Account of Members* (Shares)
WEEK ENDED JUNE 22/ 1946

;

Total for Week
A. Total Round-Lot Sales:
sales.

Short

25,930
1,942,115

———

tOther sales,

—

1,968,045

Total sales—
—:—
_
B. Round-L.ot Transactions for Account of Members:
Transactions of

1.

./<//*■
r

short.

•
•

•

tOther

-■:

sales.

y in-

/<£:-.v."'
.

3.

.•

9.93

40,510

1.94

35,950

'/Total
the floor-

purchases__«^.«^—„™.—
Short sales-——

6,450

————

tOther
Total

against 69,489 tons (revised) in
May. Production amounted to 58,812 tons in June, against 62,416

•

,

52,050

Total

118,925

sales.

A/'y't/. Cadmium

4. Total-

Total

286,875

purchases*-.

21,505

Short sales—./.
tOther

..

•

..

336,495

sales——

Total sales

Total

Specialists-

..

:/':r';

0

" -*

■;//:
.

108,774

purchases.

Total sales—

108,774
-a**-.

/£/115.564'/£-//:'/ / ' :\ \\

•

"

;^®se. Percentages the total of members* purchases and sales
compared with twice the total round-lot
volume

on

the Exchange

the Exchange volume includes .only sales.
JRound-lot short sales which are exempted from
rules are included with "other sales."

for the

restriction

reason

-

4l——— Holiday

14.550

*

14.550

July
July

that

by the Commission's

PMW B

6-

*
14.150

9*//J—./; 14.150
:
14.150

14.600
14.550

July

5

—*r

v

-

Government Instructs

8

uncertain conditions.

difficulty in doing business under prevailing
The price of lead and zinc/became firmly estab¬

higher levels announced in thd; preceding week

quotable

on

the» ■
June 30 to whenever

14%c basis, following release of a
substantial tonnage of July metal

^

;
of the

bills on the subject now
pending
the
government.' Cadmium, before Congress becomes law."
The publication further went on to
bismuth, and arsenic advanced in

by

price. Sellers withdrew quotations say in part as follows:
for antimony. The platinum met¬
als remained unchanged.
The in¬
Copper
dustry was interested in a report
Metals Reserve copper became
from Washington to the effect that available at the old
ceiling price
Senator
Murray,
Montana,
has
of 14%c, Valley, and the market
asked OWMR Director Steelman
to issue a directive to permit pre- again was quotable at that level,

payments

for

the



J

period beginning with July

•

«W«S» ir

ex¬

pand the Railroad Retirement and..

Unemployment
benefits

the

ployees

Acts

to

increase

number

and

of

em¬

by
by a roll call of 234 to
49, according to Associated Press •
Washingtcralridviccs" of 1 Jjily 4, *
Which-' added-that proposals to
change the original measure were
covered,

passed

was

the House

•

.

House

The

«

tee had favored

•

a

conserva- -

more

Trading

and

Securities

The

/

111';.

.

NYSE Odd-Lot
<

Interstate

Foreign Commerce Commit-

tive bill."

Exchajige.^

Commission made public on July}

'

/

'

Holiday
9.50

•/.. ■*.

...

Holiday

Holiday
4•

9.35'

New York Stock

Exchange, con- v
tinuing a series of current figures ;
being published by the Commis-;

sion.
The figures are based upon
reports filed with the Commission
by the odd-lot dealers and spe-^

cialists.

9.50

9.50

9.35

9.50

52.000

9.50

9.35

52.000

9.50

9.35

9.50.

930

335

9.50

52.000

'

,

.

/

v

9.50

•

.

delivery only. - •' r " v - .•
In the trade,
domestic copper prices are ^quoted on a ^Iv,e/ed .ba^ls:,.J/,
delivered at consumers' plants. - As delivery charges vary with thedestination^. th<
figures shown above are net prices at refineries on the Atlantic Seaboard.. vpeHverCL
prices in New England average 02225c. per pound above the refinery basis.

8. About 25,-

March

14,

the

export quotation

for copper

reflects prices obtaining li

to-the f .0.n
0.0.75c^ 10.

the-open market and is based on sales in the foreign market reducedrefinery equivalent, Atlantic seaboard. .On La.s. fransactions we deduct
lighterage,

etc., to

arrive at the f.o.b.

refinery quotation.

For

Quotations for copper : are for the ordinary forms of
standard ingots an extra 0.05c. pet pound Is. charged;,

for

cakes

up,

depending

discount

0.125c.

up,

dimensions and quality.
of 0.125c. per pound.

wirebars. and ingot bars
for ^abs 0.075c. up,, anq

dimensions; for billets an extra 0.730Cathodes In standard sizes are sold at a
/

Western brands/: Contract prices" fox
High-Grade zinc delivered in the East- and» Middle West In nearly all instances com¬
mand a premium of lc. per pound over the current" market for Prima Western hut
not less than lc. over the "E. & M. J." average for Prime Western for the previous
Quotations for zinc are for ordinary: Prime

month.

V

/-

.

■;/;/

Quotations for lead reflect pricee

/.

obtained for eommon lead only.

ODD-LOT DEALERS

ON

Week Ended June

THE

N.

Y.

1

'

Total
a.29,509
; "

<

852,42Q •/

1

value-^—$39,761,278

Odd-Lot Purchases by Dealers-fCustomers' sales)"

/ /

Hurqberof Orderst / / ^;•
Cqstomejs? qhost salea_lw
,
/
/Customers'

other

'

Per Week

6hares—_^./_«__>

Number : of

'

29,1946

Odd-Lot Sales by Dealers—;
(Customers' purchases)

Dollar

'

ODD

STOCK EXCHANGE

_

salesl/^-

:

>/v*
Customers1' total .sales*,..*

,

" '78

.

22,681/

'i,

•

22,759

Number of Shares2.
short

Customers'

;

/

sales____

Other -sales

'•Custodiers'

5 933
,

631,640

total; "sales.^..

.Customers'

Dollar

;634^72

^

.

$29,402,498

Round-Lot Sales >y

pealejp^i v";"" ^' v 7. • *"c *
■/> 7'

Number of Sha-resi
.;Ebort: sales

tOther ;

depending oa weight and

on

}vf

FOR THE

Numoer-oi ordcrsLU'i--------

'

*

'

SPECIALISTS

AND

•

Effective

'

'*

LOT ACCOUNT OF

9,50

:

'

3^bCK: TRANSACTIONS

9.50

-

9.35

52.000

14.567/
.

Zinc

St. Louis

St. Louis

ed

deliveries; tin quotations are lor prompt-

and

'
one

14.150

New York

week ended July 6 are: l>omestic
Copper fjo.b< refipery, 114.50c;7 exjport copper f.o.b.^ refmery T4.521c;
Straits tin, 52,000c; New York lead, 8.250c; $t; Louis lead, 8.100c; St
Louis zinc, 8t250c/and: silver/70,750c/;v »
f - * -. <
/
; / :
;
^
The abbre quotatiCB» are "E/Ss M.& HL & M,Appraisal of
Statea markets, based on sales reported by producers and agencies.
They are:^2^;'
to the basis of cash, New York or St. Louis, as noted. All prices axe in cents per pound „
Copper/ lead and zinc 'quotations are based on sales lor-both prompt and luturt

metals experienced great

jnium

roll call

Average prices of Calendar

j <fE. & M. J. Metal and Mineral Markets," in its issue of July 11
stated: "The week's developments in Washington shed little light on
whether OPA can be put together again, and producers of
non-ferrous

was

a

House

^

^

(D., Ohid), to

tative Crosser

■

Holiday
•v

14.600

10

•Na market.

;

again

vote, 266 to 23
rejected the Senate
proposal for 90.3c silver, effective
immediately; and $1.29 after two
years. The House insisted that the
price at which Treasury "free'
silver is released to industry be
maintained; at 71.lie."
In view of the fact that the price
situation in silver has not changed
in the week that ended July 10.

14.550

July

Agents to Release Copper at 14% o., Valley

copper

i On

the

New York :

Exp. Rely.

Average—

Non-Forrous Metals

-

-

Refy.

July
July

to

ww reason tnat

*

RR/^Employe Bjenefitt

■1 A bill introduced by Represen¬

and

Silver

ML J." QlIOTATIONS)
Straits Tin,
^~"tea«7"r „«.

•Electrolytic Copper^Dom.

SSales marked "short, exempt" are included with "other sales."

at the

On forward

BAlLlr PRICES OF METALS ("E, A

*The term "members" includes all
regular and associate Exchange members, their
firms and their partners,, including special-partners.

lished

80% of Poland's exports, he said,

tion for foreign silver on July 5.
tities/with the usual premium on
special shapes, etc. It was a mat¬ 8, 9, and 10. July 4 was a holiday
arid July 6 p,3aturd?iy (no
ter of common knowledge in the
trade that OPA intended to free tion).

16.38

358,000

C. Odd-Lot Transactions for Account of

/-/ /Customers' .short*sales
SCustomers' other sales—

East.".11..

10, a summary for the week end-:
June 29, of complete figures i
showing the daUy, volume of stock transactions for; odd-lot account*
Effective July 8, cadmium ad¬
vanced to $1.25 per pound on com¬ Handy 8c Harman were unable to of all odd-lot dealers and special¬
issue a New York Official quota¬ ists who, handled odd lots on the *
mercial
sticks, wholesale quan¬

tons in May.
4.51

125,375

sales

zinc

slab

June

against 241,633 tons (revised) a
month previous. Total shipments
in June amounted to 60,517 tons,

32,650

^

1-/.*

Other transactions initiated off

■

#

vdtji,Latin America and the Near

defeated.

statistics
showed stocks on hand at the end
of the month of
239,928 tons,

3,300

■

2,433 tons.

sU^e: direct commercial'relations

iThus far coal has accounted for

Quicksilver

$98 per flask was named.

The

196,675

'^Othersales ...J
<»:

inal at 51.125c.

30.

the floor-

on

purchases.

Shoii; sales.

-

.

7

11,755
184,920

'

„

:

Other transactions initiated
Total

Chinese, or 99% tin/Was nom¬

price can be rolled back to the $101 per flask, spot.
ceiling that obtained prior to June
business

194,315

A-,::^-TT

RfllPK

sales

".'.Total
2.

;wy

specialists in stocks in which

they are registered—
Total
piirnh«.-s<»S'..,

r"''

r

Vetera. We are also anxious to re-. -

,

1,058,863

Total: sales—.

'

July
9
July 10

last

the

-52.000 52.000
52.000
'52.000 • 52.000 / 52.060.
52.(100',,52.000 ? 52.000

——

;

138,600

Short- sales,.*.*,.....
tOther sales—*./..;

8

Trading in quicksilver was on
me slow aide ttiroughout the last
Zinc
J.
week. The OPA muddle has not
Business was placed in Prime
disturbed the market for the metal
Western zinc on the basis of 9% c,
one way or the o her.
The metal
East St. Xbuis* in more than one
has been in ample supply and Was
direction, beginning with July 5,
feeed from price control some time
with the result that price uncer¬
ago. In fact, the price situation re¬
tainty in the metal vanished and
mains unsettled because* of con*
the price became firmly estab¬
tiniied ' uncertainty in ^reference
lished at "the higher level; - Nerv¬
to the sales policy of important
ousness still exists bh whether, M
foreign producers. Quotations in
; vhe event that OPA is revived, the
New York con inued at $99 tc

952,686

purchases

Total
.v

during

week amounted to

4. Total"■

lead

of

Sales

438

Jiuly

*

\uj>70 "

;:'Total.-r sales—:•
Round-Lot Purchases by Dealers-^
Number of shares.
***-.

V

.* •,

.•

*

salesL^j/*.-L.^L.^ <

112,340

7

•Sales marked "short exempt"
ported with "other sales.'*./ • , ; r

7

"

338/590
are

/

/^
*'

re- -

tSales to -offset customers' odd-lot orders :
and sales to liquidate a long position, which

round lot

Is less

than

"other

sales."-

a

are

'

reported wltb
*v ^
*

Volume 164

Number 4508

THE COMMERCIAL & FINANCIAL
CHRONICLE

Revenue

Freight Car Loadings Daring Week 1
Ended July 6,1846 Decreased 199,760Cars !

"

Loading of
•

freight ffor.the week ended July 6, 1946

revenue

totaled 679,785 cars the Association of American Railroads

?

July ;1T; This was a decreasd below the corresponding week of
1945 of 46,878 cars; or 65% and a decrease below the same week in
;1944 of 64,562 cars or 8.7%.
-

•

v

Miscellaneous freight loading totaled 303,885

79,983 cars below ;he preceding week, and
below the corresponding week in 1945,

a
•

.

,

cars a

.

Loading of merchandise less than carload lot freight totaled 108,cars a decrease of 21,495 cars below the preceding week, but an
Increase of 14,869 cars above the corresponding week in 1945, .

-350
•

L'

Coai loading amounted to 99,828 cars, a decrease of 84,859 cars
below the preceding week and a decrease of 18,162 cars below the

corresponding week in 1945.

•

of 1,927

below The preceding week and a decrease of 8,460
cars below the corresponding week in 1945. In the Western Districts
alone, grain and grain products loading for the week of July 6
totaled 35,384 cars, a decrease of > 512 cars below the preceding week
and "a decrease of 5,459 cars below the corresponding week in 1945;

'

'

;1

Livestock loading' amounted, to 13,736. cars an increase of 1,153
cars above the preceding week and an increase of 2,841 cars, above
the corresponding week in 1945. In the Western Districts alone load¬
ing oTlivesto^^
the week, of July 5 totaled 9,205 cars, an increase

r
-

increase of 1,707

the- preceding week, and an

! of 155 cars above

tabbvethe corresponding weekin 1945.;

>;

•

>

cars

^

forest products loading totaled 32,784 cara a decrease of 16,152
•cars below the preceding week but an increase of 1,196 cars above the

corresponding week in 1945.
'

.

•

-

Ore loading amounted to

63,024 cars,

.»

increase of 4,529 cars

an

Coke loading amounted to 11,706 cars a decrease of 1,026. cars

tieiow the preceding; week; and a decrease; of 1,549 cars below the
corresponding week in 1945.

'

'

f

All disiicts reported decreases compared-with the corresponding
week inr 1945 and all reported decreases compared with 1944
the Southern.

except

,

4

weeks, of

5

weeks

4

of

weeks

of
of

1946

«

.

weeks

January

...»

5

of

June

——-

■

2,616,067

■

■

4,366,516

679,785

r-

864

"713

1,184

1,328

1,123

214

The

3,324

182

.i;//,/;

■>•

862

held in Los Angeles

66

and

19,205
19,674
270

332

239

Richmond, Fred. 8c Potomac
Seaboard Air Line
Southern System

ficers' Ass'n will act

327

'
,

conference.

9,559
22,930

Tennessee Central

President

'

I

Tim

II

■'

■

II

I

•

102,386

: 103,509

100,811

98,529

A,j
.

106,487

Northwestern District—

Elgin, Jollet At Eastern
Ft.

Dodge, DeB Moines

At South

Great Northern

;

19,695,874

-----

.

'•

REVENUE

:".

FREIGHT

AND

(NUMBER OF CARS)

,4

..

LOADED

RECEIVED

FROM

^

Railroad#

tutorn District—

Ann Arbor—

>
?

i 1946 ^

r ^

i

-

Bangor Ac Aroostook—

1945 -.<4

256

216

Angeles, is Chairman
A trust*
a special
feature of the conference, < under
the leadership of Walter E. Bruns,
Vice-President and Trust Officer,
of the program committee.

problems forum will be

449

2,050

The Bank of America N. T. & S.

1,622

Minn., St. Paul As S. S. M

4,562

A.> San; Francisco^ Calif. ^ Thurs¬

381

Spokane International
Spokane. Portland 8c Seattle

day afternoon, August 8, will be

7,197
74

devoted. to entertainment planned

1,508

by the local committee and will

!

M Total

include golf and sightseeing, with
Western

a

District—

744,347

Bingham At Garfield

Treasury
Bill Offering

Colorado At Southern

The Secretary of the Treasury
announced

City

Illinois Terminal

Southern Pacific (Pacific)

Toledo, Peoria As Western

;

876

Boston As Maine

Connections

1946

>1945
,1,269

Central Indiana

i

801

464

421

' 5,225

1,125

10,723
1,971

4 12,544

973

29

.

19

36

22

843

#870

1,912

!3;129
-6,029

3,972
8,478

3,917

9,493

Delaware, Lackawanna & Western

6,300

8,879

Detroit & Mackinac

•

1,999

41

'918

Central Vermont

_

Delaware & Hudson

Detroit,

;

:

..

Toledo As Ironton

.

—.

Detroit & Toledo Shore Line.

308

248

11,562

•

Lehigh As Hudson River
Lehigh & New England
Lehigh Valley

-269

10,992
2,888

131

161

Monongahela

1,691
.6,570
2,357

4,125

——...

Montour
Beer York Central Lines

39,924

Y., N. H. As Hartford-

*

—

Pittsburgh As Lake Erie
Pere Marquette

Pittsburgh & Shawmut
Pittsburg, Shfiwfnut 8c North—
Pittsburgh & West Virginia
Rutland

•

-

tWtaL

1,415
2,439

10,129

•'

2,798

>

;

,

Ligonter Valley———~i—;—i—U
Lomrlsland

PentWReading Seashore lines-——.
Pennsylvania System
Beading Co.—
CnJkm (Pittsburgh).
t
....
■■
Western Maryland

.

.

Tbtal—

-

(61% of the amount bid for at
price was accepted.)
'•

the low
Total.

1946.

Atlantic Coast Line RR.
tlncludes Midland Valley Ry. and
As Gulf Ry. only in 1944 and also
Oklahoma City-Ada-Atoka Ry.
t

There was a maturity of a sim¬
ilar issue of bills on July 18 in
the amount of $1,310,259,000.
.

tIncluded in

r

NOTE—Previous year*# figures revised.

Kansas

in

1945
■

4

Lumber Movement

Manufacturers

Trade

224

above

-

Week

Association,
re¬

Barometer

production

31.9%

were

for

the week

lii they same
hew orders of these mills

ending July 6, 1946.
week
were

436

475

59.6% above

productiqn/JJji-

order files of the reporting

j 4,440

5,820

6.264

874

916

1,117

4,419
265
251
68
1,238
1,354
69,356
10,519
15,988
2,852

5,143

mills amounted to 85 % of. stocks.

703

39.293

145,969

■

Wichita Falls As Southern

WeatfcerfordAs. W.8c N. W,

fiiled
.

lent to 32

1,332
1,555

For the

77,564

of

11,531

18,524

3,002

the current

days' production.

v>v'«

year-to-date, shipments

reporting

ceeded

3.265

identical

mills

ex¬

production by 5.3%; orders

by 4.3%.

159,855

.

equivalent to 29

rate, and gross stocks are equiva¬

92

100
1,629

are

days' production at

*403*

156

1,544
72,724
12,775
17,149

;

For reporting softwood mills, un¬
filled orders

5,661
—

386
118

»

Cumberland As Pennsylvania

per annum,

;

porting to the National- Lumber,

38,074

.

Central R. R. of New Jersey—
Cornwall

Low/ 99.905; equivalent rate of
approximately 0.376 %

discount

...

Texas As Pacific

-

*•

Indiana

Texas 8c New Orleans.

lumber shipments of 398 mills

289

33,909

&

per annum.

:

According to the National Lum¬

5,021

Baltimore As Ohlo^
—

Quanah Acme 8c Pacific.
St. Louis-San Francisco
St. Louis-Southwestern

ber

4,758

Akron, Canton As Youngstown———
Bessemer At Lake Erie

High, 99,907; equivalent rate of
approximately 0.368%

discount

Ended July 6, 1946

tpiwt

Allegheny District—

Missouri & Arkansas—

Oklahoma

1,436

7,133

Range of accepted competitive
bids:

Missouri-Kansas-Texas Lines—

and

842

.

4,409

.

—

t

-

Missouri Pacific—:

7,346

680
*

.667

*6,066.

Wheeling & Lake Erie„_———

a

Ayerage price, 99.905-f; equiv¬
rate; of discount approxi¬
mately 0.375% per annum,

Litchfield 8c Madison

2,536

6,056
4,092

311

'

——.

Wabash—.

•

July 18 and to mature
were offered on

17, which

alent

2,156

314

?

the

$40,356,000 entered on
fixed price basis of 99.905 and
accepted in iull)*

110,646

Louisiana & Arkansas

16,028

6,028

243
5,851
5,263
;
750
1
320

—

1,160

1,006

5,487

•

75,598

7,683

.

that

July 12, were opened at the Federal Reserve Banks on July 15. ;

42,226

i7,540
881

—

m

4,897
2,052

1,521

Hew York, Ontario & Western
Mew York, Chicago As St. Louis
B. Y., Susquehanna 8c Western

1,726
7,236
1,768

..

15

(includes

121,682

144

2,702

-6,578
-

■

•

218

10,665
3,299

.

12.261

-

'

.

>1,945
10,804
9,980

1,031
.3,137
14,777
7,175

,1,686

——-

Maine Central

Cambria

1,716

323

9,852
i 3,379
54

.

190

1,417

•

4 >256

(Erie

Grand Trunk Western

,

117,227-

tK. O. & G., M. V. & O. C.-A.-A.
Kansas City Southern

"5,625

:5,369 '.
?1,181

109,533

International-Great Northern..

1,274

Chicago, Indianapolis & Louisville

July

on

Total applied for, $1,894,854,000.
_tatal iaecepted, i;.$l, 310,517,00Q;

Southwestern District—

#

dated

Oct.

Gulf Coast Lines

1,361

,

;

Result of

Chicago, Burlington At Qulncy..
■ Chicago At Illinois Midland
Chicago, Rock Island As Pacific.
Chicago At Eastern Illinois

Union Pacific System
(Jtah

22,029,548

Received from

229

banquet that evening/

Atch., Top. At Santa Fe SystemAlton

Port Worth At Denver

,

1

Compared to the average cor¬
Peeahoatas District—

-

Chesapeake & Ohio

17,986

Virginian-

r

'12,294

Borfolk R Western

f 1,520

"

I




31,800

19,101
'14,255

;c

21,025
-

responding

12,769

15.573

6,069

;-2,596

^.3,010

35,952

39,608

,

,

.

1^70;
20,408

week

11,839
,

.

t

Roseberry, Vice-Pres-\

be

:: Total Loads

1944

/

is

Bay 8c Western
Lake Superior As
Ishpeming
Minneapolis As St. Louis
Northern Pacific

>4

the confer¬

Peoria At Pekin Union

\

Total
Revenue Freight-Lioaded

'

,

California,

North Western Pacific

.

'

Angeles,

L. H.

Nevada Northern

CONNECTIONS

WEEK ENDED JULY 6

Los

Bank of Los

23,055
1,097
7,159

Burlington-Rock Island

;

;

,

in

Missouri-Illinois

r

22,005,209

..

Officer

Trust

partment, Security-First National

2,922

-

and

ident and Manager of the trust de¬

17,279
1,770
15,686

17,642

Green

„

host to the

as

Harry M. Bardt, Vice-

General Chairman of
ence.

Chicago At North Western
Chicago Great Western
Chicago, Milw., St. P. 8c Pac
Chicago, 8t. Paul, Minn. At Omaha.
Duluth, Missabe As Iron Range
Duluth, South Shore As Atlantic

>

The Bank of America N. T. & S.

86

III,

■

;

charge of the Southern Division,.

618

*

I,"

at\

on

The Southern California Trust Of-

1,194

Piedmont Northern

Aug. 7, 8, '

on

announced

was

Trust Company, Wilmington, Del.

3,054

Norfolk Southern

1946,

June 27 by.
James W. Allison, President of the
A. B. A. Trust Division, who is
Vice-President of the Equitable

4,071

Mississippi Central
Nashville, Chattanooga 8c St L.

9,

Wilmington, Del.,

:404

Macon, Dublin & Savannah

program for the 1
Bankers
Association's

20th Regional Trust Conference of ;
the
Pacific v Coast
and
Rocky ;
Mountain States, which will- • be

€19

1,150

Illinois Central System
Louisville & Nashville

advance

American

;

July 7, 1945.

•

3,454

tenders for $1,300,000,000 or there¬
about of 91-day Treasury bills to

4,338,886

726,663

-

.

During this period only 41 roads reported gains over the week ended

M.

3,710

280

or—r;>,., vrr:
The following table is a summary of the freight carloadings for
i Total
the separate, railroads; and systems for the week ended July 6,:
194^.

>

2,167

•

876

.

Rooky Mta

States Tr. Conference

285

^,441,616

3,456,465

'

4,062,911

—

July 6

Total

I

1,830

•

3,275.846

4,022,088
3,377,335

.

2,604,552

"

weeks

>

3,158,700
3,154,116
3,916,037

.

3,052,487

3,982,229-<
^

1944

.

3,003,655

*■

2,866,710

-

—

-

of

Week uf

1945.

•

2,883,620

—

February-;
March

April

4 weeks

',

310

Denver At Rio Grande WesternDenver At Salt Lake

-

'

4-

f

717

1945

'

9,245

Gulf, Mobile & Ohio

4: Central

responding week in, 1945.

.

.

306

v

704

Connections
1946

preceding week but a decrease of 6,719 cars below the cor¬

above the

•

395
-v

10,619

Columbus 8c Greenville
Durham & Southern

cars

>

'

t

1944

.1,307

Central of Georgia
Charleston 8c Western Carolina
Clinch field

Winston-Salem Sou thbound

Grain and grain products loading totaled 46,472 cars, a decrease

'

602

Gainesville Midland

decrease of
decrease of 30,894 cars
'
.
?:

.

1945

349

Atl. Ac W. P.—W. R. R. of Ala.____
Atlanta. Birmingham 8c Coast

Georgia
.
•
Georgia & Florida

.' holiday.
n

1946

Florida East Cnast.

Loading of revenue freight for the yveek of July 6 decreased
199,760 cars or- 22.7% below the preceding week due to July 4th

PdCi Coast &

Received from

District—

Alabama,.Tennessee 8c Northern—

Atlantic Coast Line

amupunced

on

j:

V: Total Loads
Revenue Freight Loaded

of4 1935-1939,;

6,220

production of reporting mills was

2,066

48.9%

20,125

34.9%
below.

below;

shipments

^

were

below; orders were 26.2%
1

^

:

ft.OMMlVfltf-WWtm lAirf 't

Square office Of the bank; where
he has been Manager since 1936.

Items About Banks,

At

meeting of the board of
of the Corn Exchange
Trust
Company
of New

a

directors
Bank

Trust

Companies

Boston, held July 12, Howard B.
Phillips of the Corporate Trust
Department was elected an As¬
sistant Secretary. Mr. Phillips has
been with the bank since 1925.

on July 10, Donald
Anderson was appointed Assistant

York, held

Secretary of the bank*
JohnT. Madden, President of
St. Louis, the Emigrant Industrial Savings
Mo., announced total assets to be Bank of New York announced on
$378,346,614 and total deposits of July 15. that at a meeting of the
$34-3,3Q4>479 in its statement of Board of Trustees, Miss Florence
condition as of June 29, 1946. F. Hayes was elected Assistant
Branch Manager.
Miss Hayes en¬
due from banks is
pared with $893,707,426, and $750,- Cash >apd
tered the employ of the bank on
673,227, respectively, on March 30, shown as $83,319,191 and holdings
March 29, 1937. In making the an¬
'.•> 1946. Cash on hand and due from of U. S. Government obligations
nouncement, Mr. Madden pointed
Federal Reserve banks and other by the bank amounted to $194,out that this is the first time in
Demand and time loans
banks, including exchanges, was 517,128.
the 96 years history of the bank
$142,221,510 on June 28, against June 29 were $66,700,806. Capital
that a woman had been given an
\i\ $139,816,046 at the end of March, stock is reported as $12,500,000 official title. Miss Hayes will be
while holdings of IL S. Goverri- and surplus, $5,000,000. Undivided
raent obligations are * listed • now profits on June 29, 1946 amounted actively identified with the man¬
agement
of
the
42nd
Street
"
1
£l>;'at $529,241,400,'as compared with to $5,460,271. <
Branch.
At the same meeting of
$537,250,805, and loans and dis¬
the Board of Trustees, John F.
counts are now shown as $114,A record-breaking increase in
O'Conner was elected - Assistant
790,529, while in the March 30 re¬ loans and discounts handled: by
Secretary. Mr. O'Connor has been
port they were shown to be $119,- the United States National Bank
identified with the
bank since
/. 893,375.
Capital and surplus have of Portland, Ore., was shown in
April 8, 1904. He has worked in
remained unchanged during the that institution's June
29, 1946,
various departments of the bank,
V three months at $10,000,000 and
report to the Comptroller of the and for the past several years has
$100,000,000,: respectively,, while Currency.
Loans and discounts been head Teller at the Main Of¬
undivided profits increased from
amounting to $82,988,257 were re¬ fice at 51 Chambers Street.
$23,973,094 on March 30, to $24,ported;This, figure represents a
923,862 on June 28.after making gain of $36,092,899 over the corre¬
Stockholders of the Lafayette
provision for the July 1 dividend sponding call date in 1945 and a
National Bank of Brooklyn in New
of $2,000,000.
gain of $14,047,370 over the Dec. York have approved an increase
31, 1945, call.
Resources as of in the capital from $850,000 to
The New York Trust Co. of
June 29, 1946, amounting to $570,$1,000,000, and purchase warrants
New York City announced in its
921,113, indicate an increase of callnig for 3/17th> of a share for
statement of condition as of June
$40,856,190 within the 12-month each share held have been mailed
30, 1946, that total deposits were period.J. Deposits now stand at
to stockholders; Walter Jeffreys
$733,975,150, against $881,263,465 $543,773,775, an increase of $34,Carlin, Chairman of the Board,
on
Dec. 31, 1945; total resources
184,211 in the same period. The announced on July 11. Purchase
for the same two periods were United
States
National
Bank
warrants, which expire at noon,
$806,725,368 and $951,445,924; re¬ leads the State in loans and dis¬
spectively. Cash on hand and due counts reported as well as in de¬ Aug. 27, have been sent to all
shareholders
on
record
at
the
from banks on June 30 was $190,posits and resources. E. C. Sam- close of business June 25.
693,891, against $239,235,257 on mons is President of the United
Dee. 31, 1945; holdings of U. S. States National.
The Peoples National Bank of
Government obligations are now
shown as $388,025,635, compared
Brooklyn, N. Y., has declared a
The statement of Barclays Bank semi-annual dividend of $1.25 per
with $455,939,526, and loans and
discounts amounted to $204,197,- Ltd., London, as of June 30, 1946, share and an extra dividend of
received by the representatives of 25c
750, against $233,991,371 at the
per share,. payable Aug. 1,
end of 1945.
Capital and_ surplus the bank in New York, shows a 1946, to stockholders of record
new
all time high in resources July-9, 194-3.
remain unchanged at $15,000,000
$. and $35,000,000, respectively. Un¬ and deposits, namely, £1,106,602,and
£ 1,056,087,193
respec¬
divided profits rose to $11,865,314 661
The Comptroller of the Cur¬
tively.
Compared v with a year
on June 30 from $9,895,343 on Dec.
rency under date of July 1 an¬
ago, deposits have increased by nounced that the Bensohhurst Na¬
31,1945.
The First National Bank

of the

City of New York, ; in its report
of condition at the close of busi¬
ness on June 28, 1946, shows total
resources of $872,-351,240 and to¬
tal deposits of $728,809,624, com¬

The Mercantile-Commerce Bank

and Trust Company of

changes/ according ! to
Strickland/President, took,

"These
Robert

place yesterday at a meeting
the board of directors.
/'Mr. Glenn has long been one
the business leaders of the

Supplementing the information
our issue of July 11, page
257, regarding the merger (under
given in

of
of

South.

He took part in the organization
of the Atlanta Consolidated Street

which later
the Georgia
Bank and Trust Company) of the Power Company. .Other concerns
Union Trust Company of Pitts¬ with which he-is identified are:
Cola
Company,
Atlantic
burgh and Mellon National Bank, Coca
we are advised that the enlarged
Steel Company, Continental Gin
institution, a national banking as¬ Company, and Atlantic Company.
"Mr. Sibley, the hew Chairman,
sociation, which will have a capi¬
tal of $60,100,000, represented by is a member of the law firm which
601,000 shares with a par value for years has acted as counsel for
of $100 each, a surplus of $90,000,- the Trust Company of Georgia.
000 and undivided profits of not As a result, he is familiar with its
less than $10,000,000.
The board affairs."
the

"

Thursday, July 18, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

412

name of

directors

of

the Mellon National

became

a

National

Mellon

of

Company,
part of

Railway

,

;

-

•

Bank and Trust Company will in¬
clude the four principal officers

named below/and 21 other mem¬
bers to be elected from the pres¬
ent boards of the merging in¬

.

-

v

•

-

-

1

£90,000,000

and

total

resources

'

Illinois Na¬
tional Bank and Trust Company
of Chicago announced total re¬
Continental

The.

June

the % period ending
1946, of $2,371,676,665

for

sources

29,

( and total deposits of $2,188,364,732
compared with $2,826,963,072 and
$2,646,721,524 on Dec, 31, 1945.
U.
S.
Government
obligations
held by the bank on June 30, 1946
amounted to $1,446,728,7-35 against
$1,821,033,425 Dec. 31; cash on

y

,

is now
$487,556,251 compared
With $532,083,248; loans and dis¬
counts in the recent report were
announced at $375,459,066 against
hand and due from banks
shown

■;

-

as

$398,352,051 a year ago.
Capital
and surplus remain unchanged at
$60,000,000
each,
while
undivided profits are now $32,057,397 as compared with $27,471,417
on Dec. 31, 1945.
Harris Trust and Savings

The

y

Bank of Chicago,

111., announced

In its statement of

*

condition

as

of

; Juiie 29, 1946 that total deposits
and total resources were respec¬

tively $487,965,756 and $524,102,-

l

with $550,006,336
$584,618,588 Dec. 31.
Hold-

490,

by £ 100,000,000. Reflecting a re¬
turn to more normal conditions,
over

have

This amount is
approximately 13% of deposit li¬
abilities whereas the percentage a
year ago was approximately 2%.
Similarly,
advances
are
now
shown

17,% %: of the deposit liabilities as
compared with
£ 162,354,089 a
year ago, namely, 16%% of de¬
posit
liabilities.
Acceptances,
guarantees, indemnities, etc, un¬
dertaken for customers in connec¬
tion with commercial transactions

have

have

B

and

the

.

29

on

from

due

against

Dec. 31, 1945; cash
banks

was

$120,-

$153,504,384; loans and dis¬

counts

June

$144,877,108
v

$120,576,382

to

085,466 at the latest date compared
with

on

C

at

the

stock, which rates are
as have been paid for

same

Dec.

31.

29

shown

are

against

as

$134,662,096

Capital and surplus

Trp&iiCompany of New York,

annouhped
Philip; D.
Cunliffe

a

year ago

to $4,807,785

at the present time.




V; v '

Holden

and John J.
Assistant Vice-Presi¬

rank

of

where

he

attained

Lieutenant

He is the

son

Com¬

of the late

Hale Holden, who was Chairman
of the Southern Pacific Railroad
and

a

Director of the bank.

Mr.

Cunliffe is in charge of the Times

Executive

the

board,

Denton; Chairman of
Committee, Clarance

.

"At the regular meeting of the
board of directors yester¬

bank's

day (July 11), the change was
Stanley, and President, Lawrence voted, giving the bank a capital
structure of $1,500,000; a surplus
N. Murray.
1
.»
of $2,000,000 and undivided profits
The Dauphin National Bank of of $1,138,987.21, Mr. Cocke stated."
Dauphin, Pa., reduced its capital
on June 29 from $28,500 to $25,000,
George K. Wood, 28 years in
the

at

and

its

same

common

time

increased

stock

capital

from

the
was

banking business, on July 10,
promoted
from
Assistant

$25,000 to $35,000 by the sale of Cashier to Assistant Vice-Presi¬
new stock, according to
advices dent of the First National Bank
in
the weekly bulletin of the of Dallas, Tex., E. L. Flippcn,
Comptroller of the Currency.
President, announced; Reporting
this, the Dallas "Times-Herald"
The Commerce Guardian Bank also said:
of Toledo, Ohio, announces with
Mr. Wood's promotion was ap¬
regret the death of its Vice-Presi¬ proved at the monthly meeting of
dent, Mr; Edward G. Kirby, on the board of directors Tuesday
June 14.
afternoon.
He is assigned to the
Mills B. Lane, Jr., on July 9 new business department.
A native of Dallas, Mr. Wood
became President "of the Citizens
& Southern National Bank of At¬ entered the banking business as a
lanta, Ga.; the fifth President °*
this institution. The Atlanta "Con¬
stitution" atateSr; that he (succeeds
H. Lane Young; Who
becomes
Vice-Chairman of the board of
directors.
mains

as

William Murphey re¬
Chairman. From the

collector

change

for

the- American

National

Bank

in

The American Exchange was

merged
Bank

to

Ex¬

1918.'
later

with the City National
form the present First
all il£

National Bank.

also quote;

same paper we

"Mills B. Lane, Jr.,

one

of' the coun¬

new

stock. The Bulletin issued by

.

.

258.

Board

He

was

Treasurer of

the College Point Chapter, Amer¬
ican Red Cross, for 30 years.

'

The voluntary liquidation of the
Merchants National Bank of Dun¬

June

as

of the close of business

29,

1946, was reported on
July 1 by the Comptroller of the
Currency. The bank was absorbed
by the Manufacturere & Traders
Trust Co. of Buffalo, N. Y.

N.

Lewis
Murray is Liquidating Agent.

With

its

absorption

by

the

Oneida National Bank and Trust

Company of Utica, N. Y., the First
Hartford,

N. Y. (caoital $75.0001

service in the United

Navy,

R.

....

The "Constitution" added:

,

four

years

Frank

President.

Mellon;

K.

.

National Bank of New

States

officers

try's great financial institutions. the Office of the Comptroller of
At the age of 34, Mr. Lane is one the currency reports that the in¬
E. Alfred Plitt, President of the
of
the nation's youngest bank crease became effective on June
College Point Savings Bank of
Presidents.
18.
College Point since 1935, died on
"After leaving Yale in 1934,
July 4 in Flushing Hospital, at the
yOung
Lane
became Assistant
The Midland Bank Executor &
age of 70 years.
In the Brooklyn
Cashier of the Valdosta office of Trustee Company Limited of Lon¬
"Eagle" of July 6, it was stated:.
the bank. Two years later, he don announced on July 1 that G;
"A life-long resident of College
moved
to
Savannah.
Then in E. Baldry, General Manager, has
Point and a grandson of George
1941, he became First Vice Presi¬ retired after 36 years of service to
B. Plitt, a pioneer settler in that
dent^ and moved) to Atlanta. Here the Bank. P. D. Willcock, hitherto
section, he was graduated from
he will continue to make his of¬ Manager of the Poultry Office,
the School of Social Economics
fice.
has been appointed General Man¬
and
entered the College Point
"In
1941, Mr. Lane became ager of the Company, and D. G.
Savings Bank as a clerk in 1902.
President of the Georgia Bankers' MacArthur, hitherto
a General
He became Assistant Secretary in
Association. Three years later, he Manager's Assistant of the Mid¬
1917 and a Trustee in 1926.
He
became
Treasurer and
is now land Bank Limited, has been ap¬
was active in both World Wars in
Vice-President of the National
pointed Deputy General Manager;
the Red Cross and in war loans.
Association of Bank Auditors and
During the recent war he was
Comptrollers. He is now a direc¬
Chairman of Selective Service
tor of the Bibb Manufacturing

to the bank earlier this year after

the

$2,373,977

of

Secretary since 1940. He returned

mander.

undivided' profits advanced from

appointment

dents of the bank ht the July; it
meeting of the board of directors.
Mr. Holden has been an Assistant

and

$12,000,000, respectively, and

as

the

the board, Richard
Vice - Chairman: of

National Bank

stock dividend.

fective

Board of the Chemical Bank

The principal

is

change its capitalization, in¬
creasing its surplus by $500,000,
it was announced by Erie Cocke,
to

The West Side National Bank of
is a son of Yakima, Wash., has increased its
tional Bank of Brooklyn in New the late Mills B. Lane, Sr., who capital from $100,000 to $150,000
York increased its capital on June Until his death last year;helped by a stock dividend, and from
27 from $250,000 to $275,000 by a to make the Citizens & Southern $150,000 to $200,000 by the sale of

kirk, N. Y. (capital $200,000) ef¬

Franl&EL Houston, Chairman of

remained unchanged at $8,000,000

yoWu*

dividends

many years.

&

by the bank amounted on

June

$134,090,272

.

declared

rates of 10 % per annum on the A
stock and 14% per annum on the

the

and

than doubled from the

£11,154,275 to the present
total of
£ 23,407,251.
These in¬
creases all indicate a constructive
trend in the direction of the nor¬
mal functions of the bank.. For
the first six months of this year
the
directors of Barclays Bank

tions

#

more

figure

ings of U. S. Government obliga¬

..

£185,413,128 which is

as

compared

and
:

the past year bills discounted
increased from £17,620,882

£135,391,525.

to

stitutions.

of the bank will be: Chairman of

According to the Atlanta "Con¬
of July 12 the Fulton

stitution"

National Bank of Atlanta, Ga.,

was

olaced

in

voluntary liquidation effective
July 1, 1946.
The Liquidating
Agent is C. K. Clark.
At

a

rV!*.-'-

meeting of the Executive

Committee of the Directors of the

State

Street * Trust

Company of

Company, of Macon; director of
the Chattahoochee & Gulf Rail¬
road,- and Chairman of the board
of directors of the 'Citizens
&
Southern Bank of Dublin.'
"Mr.

Young,

the

$309,000,000."

Thomas K.* Glenn has retired as
of the board of direc¬
tors
of the Trust Company
of

;

Chairman

Georgia, at Atlanta, after 44 years
of service with that institution.
He becomes Honorary Chairman.

"Constitution" of
July
10,
from
which this is
learned, further reported in part:
y"To fill his place, the board of
directors has elected John A. Sib¬
ley as Chairman. Mr. Sibley, one
of Atlanta's most prominent citi¬
zens, is a member of the law firm
of Spalding, Sibley & Troutman.
Atlanta

With the announcement that the
National Farmers Union was re¬

Vice- ducing its 15-man Washington
47 years' staff to one man, James Patton,

experience in Southern banking.
As President of the bank, he saw
its deposits grow from $89,000,000

The

Leaving Washington

new

Chairman, is a veteran of

to

Farmers Union

President

of

the

organization,

stated that it had broken with

Administration

Truman

the

and was

starting a "grass roots" mobiliza¬
tion for "the economic M-Day we

The union intends
$75,000 Washington

feel is coming."

toy sell

y

its

building, and Russell Smith, legis¬
lative Secretary, will be sole rep¬
resentative at the
capital. The
union, which claims
bers in 32 states,

400,000 mem¬

according to the

.

dispatch of July 11 from the Asso¬
ciated Press in Washington, is not
toward affiliation with
Republican party, Mr. Patton
declared, but he added that its
"loss of confidence" in the ad¬
ministration extended to the mem¬
moving
the

bership of Congress as a

whole.