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TO.
Oflimrrcjtt
Volume 135
finanti,a1
liromvie
New York, Saturday, July 9 1932
Number 3498
The Financial Situation
HE Chicago banking troubles, which perhaps did
not receive as much attention here in the East
as their importance merited, appear to have been
handled with rare skill, and, of course, are now well
in hand and afford no occasion for further anxiety.
In the situation, too, the banks evidently had the
wholehearted co-operation of the Federal Reserve
Banking System. And that is one of the particulars
in which the Federal Reserve System has the capacity for great usefulness, and one of the ways in
which its facilities can be and should be extended
with the greatest freedom. When a banking crisis
arises in one of the country's large centers, "runs"
are apt to be experienced even by banks not involved
in the more immediate disturbances; deposits are
withdrawn from the banks in panic-stricken fashion,
and the smaller depositors seek to convert their deposits into actual cash. At such a time there is
certain to be created a demand on the part of the
banks for outside accommodations, in this case the
Federal Reserve banks, and concurrently there is
sure to be a demand for actual currency in the shape
of Federal Reserve notes and for actual money in
the shape of gold or other forms of legal tender.
All of these things, the Federal Reserve banks
alone are in position to supply, and their facilities
and resources ought then to be employed to the
utmost and without stint or limit. That is what
happened in Chicago and what was done by the
Federal Reserve Bank of Chicago, in co-operation
of course with the Federal Reserve Board at Washington and with the other Federal Reserve banks of
the System.
The crisis was of greater size and of greater concern than is generally realized, if one may judge of
the prominence, or rather lack of prominence, given
to it in news and editorial comment. The local
newspapers at such a time are always apt to pursue
a policy intended to minimize what is happening by
curtailing or omitting reference to it. We dealt
with the main facts in this article in our issue of
last week and it will not be out of place to refer to
some of them again on the present occasion. Some
40 banks were obliged to close their doors during the
past month, all but one or two of them being banks
in the outlying districts of Chicago, and hence none
of them, with the exceptions noted, were of considerable size, and yet the whole represented quite an
aggregate. This eventually led to a run on most of
the big banking institutions in the loop district, in
which the Central Republic Bank & Trust Co., of
which General Charles G. Dawes is the head (he having just resumed his old post of Chairman of the
Board after having retired as head of the Reconstruc-\\.\
tion Finance Corporation) suffered most, but there
were also large sized runs on other large banks, more
especially the First National Bank of Chicago (with
its affiliate the First Union Trust & Savings Bank),
and the Continental Illinois Bank & Trust Co.
The drain upon the Central Republic Bank & Trust
Co. was so severe that the officials had to seek outside assistance, and obtained it to the extent of
$95,000,000, from which it is easy to judge of the
magnitude of the crisis. Of the $95,000,000, $80,000,000 was supplied by the Reconstruction Finance
Corporation, $10,000,000 by a group of Chicago
banks, and $5,000,000 by a group of New York banks
through Mortimer N. Buckner,President of the New
York Clearing House Association.
Now note the way which the Federal Reserve
banks met the needs of the situation. The 12 Reserve
institutions last week expanded their volume of Reserve notes in the sum total of $139,932,000, and of
this increase $117,025,000 occurred art the Chicago
Federal Reserve Bank, this latter institution having
increased the amount of its outstanding note circulation from $604,310,000 on June 22 to $721,335,000
on June 29. The principal way in which the expansion was brought about is indicated by the fact that
the Chicago Reserve Bank increased its holdings of
United States Government securities from $210,845,000 June 22 to $287,380.000 -Tune 29, and its holdings of acceptances purchased in the open market
from $7,843,000 to $20,258,000. The necessity which
compelled the action of the Chicago Federal Reserve
Bank is seen when reference is made to the condition
statement of the reporting member banks at Chicago.
In the week under discussion (the week ending June
29) the net demand deposits of the Chicago member
banks were drawn down from $894,000,000 to $820.000.000, the time deposits from $374,000,000 to $345.000.000. and,the Government deposits from $27,000,000 to $23,000,000, showing a combined loss in
these three classes of deposits of $107.000000 in this
single week. This reduction in deposits involved a
reduction in the loans and investments of the reporting member banks from $1.376.000.000 to
$1,299,000,000.
Now come the Federal Reserve returns for a week
later—that is, for the week ending Wednesday.
July 6—and show that things have already begun to
rectify themselves at Chicago. It is true that for
the 12 Reserve banks combined the volume of Federal Reserve notes outstanding for this latest week
has increased in the further amount of $112,299,000,
making an addition for the two weeks of no less
168
Financial Chronicle
than $252,231,000, but only a small part of the further increase of $112,299,000 occurred at Chicago.
The note circulation of the Chicago Reserve Bank
shows a further increase of only $6,535,000, the total
having risen from $721,335,000 to $727,870,000. And
this is as it should be, the needs of that district
having been supplied the previous week, there was
no occasion for a further expansion the present week.
The comment altogether must be that here was a
critical situation that was superbly dealt with.
As already stated, this is making a right use of
the facilities of the Federal Reserve banks—employing them in periods of emergency and then without
restraint and with the utmost freedom. It is quite
a different thing from using the Federal Reserve
resources in the carrying out of an easy money policy
intended to promote a revival of trade or induce
security advances which is the policy that has been
so diligently pursued since 1929 and which has so
dismally failed to attain its object in either particular, a circumstance which should be sufficient
to condemn the policy, though the Reserve authorities still fatuously adhere to it. The policy finds
all illustration in the large-scale purchases of United
States Government securities, when there was neither need nor warrant nor justification for it. Such
a policy, thus conducted, is rank inflation of Reserve credit, and full of menace. It has the effect
of creating unnatural ease and leads to such absurdities and monstrosities as the purchase of acceptances by the Federal Reserve banks on the discount
basis of only 1% per annum, not sufficient to cover
overhead costs.
These artificially low rates are of no benefit to
any one, and demoralize money market conditions
generally. Consequently, the banks are no longer
able to employ their funds to advantage, and hence
get no proper compensation for their services. Such
rates are, in fact, ruinous, and inasmuch as they
do not allow the banks to earn an adequate profit,
must in the end impair the stability of the banks if
not actually involve them in ruin.
Non-compensatory returns are as much a menace
in the banking business as they are in ordinary business. No establishment can long survive when it is
deprived of the ability to earn a proper return. In
such a period the banks will seek indirect means of
obtaining the return which is denied to them directly.
An instance of that kind has come to notice this very
week. The New York "Journal of Commerce," in its
news columns on Saturday, contained the information that the large New York City banks have agreed
informally to raise their commission charge on acceptance fees for accepting bankers' bills. The
agreement, we are told, prescribes the minimum commissions to be levied against customers.
It is stated that practically all of the large accepting banks will base their charges upon the new
schedule. The commission fee is to be 11/2% on an
annual basis. On bills due in 30 days the commission is to be 1/
8 to 1%, and there is to be added for
every additional month of the term until theoretically on a 12 months' bill 11/
2% is reached. On
the old basis 30 days' maturities were charged 1/
8 of
1%, but 60-day bills were charged 3/16 of 1% and
90-day bills 1/
4 of 1%, while the commissions for
long maturities were based upon the general rate
of 1% annually.
In explanation of the increase it is pointed out
that with extremely low market rates for bills the
July 9 1932
banks are raising the commission principally in
order to increase their earnings. The low market
rate for bills, it is observed, makes the new commission schedule easily possible, without running
the risk of leading borrowers for acceptances to
finance their operations by other methods. On a
rough estimate the increase in commission charges,
it is calculated, will raise the banks' gross earnings
from accepting fees from $7,000,000 annually to over
$10,000,000. This is based upon an acceptance volume of $700,000,000—to all of which the reply must
be that the banker is worthy of his hire.
HE address which Governor Franklin D. Roosevelt delivered last Saturday night with such
promptitude and such freedom from circumlocution
in accepting the Democratic Presidential nomination may be taken as an indication of the lines of
policy he means to pursue in the event of his elec- tion. It deserves to be closely studied with that idea
in mind, also to see what promise it holds out for a
betterment of business conditions which are now
of such a distressing character. We all know what
the Hoover policies are and that they have failed
to lead the country out of the slough of despond,
though this is not to say that anyone else could have
done any better considering the remarkable state
of things which has confronted the country during
the period of his incumbency. In the case of Mr.
Roosevelt, his utterances must be our guide as to
what will happen should he win popular approval of
his candidacy. He begins by saying: "Let us now
and here highly resolve to resume the country's uninterrupted march along the path of real progress,
of real justice, of real equality for all of our citizens,
great and small." This is all very nice and will
meet with a ready response everywhere, but we fear
that mere resolution will not get us very far.
In diagnosing the situation we find him saying:
"For 10 years we expanded on the theory of repairing
the wastes of the war, but actually expanding far
beyond that and also far beyond our natural and
normal growth. Now it is worth remembering, and
the cold figures of finance prove it, that during that
time there was little or no drop in the prices that
the consumer had to pay, although those same figures prove that the cost of production fell very
greatly. Corporate profit resulting from this period
was enormous. At the same time little of that profit
was devoted to the reduction of prices. The consumer was forgotten. Very little of it went into
increased wages. The worker was forgotten, and
by no means an adequate proportion was even paid
out in dividends. The stockholder was forgotten."
This embodies some novel views.
Mr. Roosevelt says he has always been in favor
of certain types of public works, and then adds: "So
as to spread the points of all kinds as widely as possible we must take definite steps to shorten the
working day and the working week." This is the
favorite argument of the union labor leaders, and it
leads nowhere. If it were accompanied by the further statement that with the shortening of the
working day and the working week there must be a
proportionate reduction in wages, it might provide
some basis for argument, but the labor theory is
that the wage scale must be maintained, and this
would mean that the rate of pay would have to be
increased, which in a time of depression like the
present is wholly out of the question. The truth is,
T
Volume 135
Financial Chronicle
with prices ruling so much lower than before, some
means must be found of reducing labor costs, not
increasing them. Economic recovery would be
hastened if that fact were recognized by the labor
world and an agreement reached to adjust wage
scales to the new conditions.
We do not see, either, that much promise of relief
is furnished the agricultural classes. Mr. Roosevelt
does say, and that is to be commended,"We should
repeal immediately those provisions of law that compel the Federal Government to go into the market
to purchase, to sell,.to speculate, in farm products,
in a futile attempt to reduce farm surpluses." He
then adds: "Why, the practical way to help the
farm is by an arrangement that will, in addition
to lightening some of the impoverishing burdens
from his back, do something towards the reduction
of the surpluses of staple commodities that hang on
the market. It should be our aim to add to the world
prices of staple products the amount of a reasonable
tariff protection, give agriculture the same protection that industry has to-day." And what then?
"And in exchange for this immediately increased
return I am sure that the farmers of this nation
would agree ultimately to such planning of their
production as would reduce the surpluses and make
it unnecessary in later years to depend on dumping those surpluses abroad in order to support domestic prices. That result has been accomplished
in other nations; why not in America, too?" We
cannot see how this differs in the least from the Republican theory which has always been to rely upon
the tariff and cut or production down so as to
avoid the possibility of surplus supplies. Yet Mr.
Roosevelt asserts he accepts the Democratic platform declaration of a tariff for revenue, and declares the tariff admirable in that respect the same
as in all other respects.
He winds up with some fine statements. Thus:
"What do the people of America want more than
anything else? In my mind, two things: Work—
work with all the moral and spiritual values that
go with work. And with work,a reasonable measure
of security—security for themselves and for their
wives and children. Work and security—these two
are more than words. They are more than facts.
They are the spiritual values, the true goal toward
which our efforts of reconstruction should lead.
These are the values that this program is intended
to gain. These are the values we have failed to
achieve by the leadership we now have. Our Republican leaders tell us economic laws—sacred, inviolable, unchangeable—that these laws cause panics
which no one could prevent. But while they prate
of economic laws, men and women are starving. We
must lay hold of the fact that economic laws are
not made by nature. They are made by human
beings." We do not see, however, that Mr. Roosevelt
shows us how to reach the goal.
HE Federal Reserve statements the present week
contain some features of decided interest. The
first point to attract attention has already been
referred to further above, namely, the big further
increase in the volume of Reserve notes outstanding. This week's increase is $112,299,000, and it
follows $139,932,000 last week, making $252,231,000
for the two weeks combined. Last week's expansion
was easily susceptible of explanation, as $117,025,000
of the addition occurred in the Chicago Federal Re-
T
169
serve District, and grew out of the banking troubles
with which Chicago has been afflicted. This week's
further increase of $112,299,000 is not so readily
explained, since it extends all through the Federal
Reserve System, every Reserve district showing a
larger or smaller expansion, and we suppose this
will be taken to indicate the holiday demand in connection with the Fourth of July celebrations.
Another point of interest is that there has been the
present week no further acquisition of United States
Government securities, the amount being reported at
$1,801,065,000, which compares with $1,800,971,000
a week ago. There has, however, it seems proper to
say, been a redistribution of these Government
securities among the different Federal Reserve
banks, Chicago having reduced its holdings from
$287,380,000 to $267,205,000, while many of the other
Reserve banks show increased holdings, the list of
increases including Boston, Philadelphia, St. Louis,
Minneapolis and Dallas. The volume of Reserve
credit outstanding has nevertheless been added to
during the week in amount of nearly $44,000,000,
owing to the fact that discount holdings of the 12
Reserve banks increased during the week from $469,828,000 to $499,826,000, and at the same time the
holdings of acceptances purchased in the open
market increased from $63,519,000 to $77,353,000.
As a result, total bill and security holdings stand
at $2,384,237,000 against $2,340,262,000 a week ago.
Gold reserves are slightly lower again the present
week, being reported at $2,578,450,000 as against
$2,579,374,000 last week. The amount of Reserve
notes outstanding having so heavily increased, the
ratio of total reserves to deposit and Federal Reserve
note liabilities combined is again somewhat lower,
standing at 56.3% against 57.2% a week ago. One
other feature growing out of this increase in Federal
Reserve circulation is that there has been a further
large addition to the amount of United States Government securities pledged as part collateral behind
the Reserve notes. The further increase for the
week has been $75,300,000, bringing the total so
pledged up to $682,000,000.
Foreign balances here continue to diminish, now
that the Bank of France and the other leading central banks are drawing the amount down so low as
part of their policy of converting such balances into
gold and then shipping the gold back home. During
the past week the total of bills purchased by the
Federal Reserve institutions for their foreign correspondents has been further reduced from $98,163,000
to $73,775,000. Foreign bank deposits with the
Federal Reserve institutions also remain low, being
reported at $8,752,000 this week as against $8,396,000
last week.
IVIDEND reductions and omissions have been
less numerous the present week, and also less
important. The Commonwealth Edison Co. reduced
the quarterly dividend on its capital stock from $2 a
share to $L25 a share; the Public Service Co. of
Northern Illinois reduced the quarterly dividend on
its common stock from $2 a share to 75c. a share.
The Edison Electric Illuminating Co. of Boston reduced the quarterly dividend on its capital stock
from $3.40 a share to $3 a share. The International
Cigar & Machinery Co. reduced the quarterly dividend on its capital stock from 621/
2c. a share to
37/
1
2c. a share. The American Machine & Foundry
Co. reduced the quarterly dividend on common from
D
170
Financial Chronicle
35c. a share to 20c. a share. The Columbian Carbon
Co. reduced the quarterly dividend on its capital
stock from 75c. a share to 50c. a share, and the Colgate-Palmolive-Peet Co. reduced the dividend on its
2c. a share to 25c. a share. The
common from 621/
Maytag Co.suspended payment of the quarterly dividend on the $6 cumul. 1st pref. stock. Cluett, Peabody & Co. reduced the quarterly dividend on common from 50c. a share to 25c. a share.
FURTHER large reduction has been made this
year in the cotton acreage. The report of the
Department of Agriculture, issued at Washington
yesterday, indicates a planted area of 37,290,000
acres. This compares with 41,491,000 acres planted
for cotton last year, according to the report issued a
year ago, a decline this year of 4,201,000 acres, or
10.1%. The harvest last year was 40,693,000 acres,
a loss for last year's crop during the growing season
of 798,000 acres, or 1.9%. This was by no means
excessive. It is necessary to go back just 10 years,
or to 1922, for an area planted to cotton below that
for the current year. In that year 34,016,000 acres
were put in, while the harvest was 33,036,000 acres,
a reduction of 980,000 acres. In most of the years
since that time an increase has been shown, the highest being 48,730,000 acres for the bumper crop of
1926. In that year there was harvested 47,087,000
acres. In 1929 the acreage was nearly as high as
that of 1926, but in the three years succeeding there
has been quite a marked decline for each year.
A reduced acreage for cotton, however, by no
means indicates a lower yield. Last year, with the
lowest acreage since 1923 of 40,693,000 acres at harve,,t, the yield per acre was exceptionally high, at
200.1 pounds per acre, the total production being,
according to the final estimate in March last,
16,595,780 bales. This was second only to the bumper
crop of 1926, when the yield was 17,755,070 bales.
For the crop of 1930, the area was 46,078,000 acres
and the yield 13,755,518 bales. The comparison with
the area planted this year and the acreage on July 1
a year ago shows that the percentage is now 90.5%
of the 1931 figures. Of the 10 States where the
acreage is the largest, four of them report an area
for this year compared with 1931 of 90%. These
four States are Texas, Alabama, South Carolina and
Louisiana. Of the other six, Arkansas shows an
area of 97% of the 1931 acreage; Mississippi 92%;
North Carolina 94%; Tennessee 95%; Oklahoma
89%, and Georgia 86%. These 10 States have a
combined acreage planted to cotton this year of
36,397,000 acres, or nearly 98% of the total cotton
acreage. Texas alone shows 14,192,000 acres planted
to cotton this year against 15,769,000 acres a year
ago, or 38% of this year's total. Of the other cotton
States the acreage is variable. For Missouri there
is no change from last year. Virginia shows a somewhat larger acreage, equivalent to 108% of the 1931
area. For New Mexico it is reduced to 96% of last
year's acreage; Florida 80%; California and Arizona 64%. The 10 years' average of abandonment
during the growing season has been 3.1%.
A
HERE has been little of interest in the stock
market the present week, with no new features
or developments of great consequence. It has been
a short week, the Stock Exchange having been closed
on Saturday last, and, of course, also on Monday,
Independence Day. On the remaining days the mar-
T
July 9 1932
ket has been decidedly unsettled, with dealings very
small, but with the drift downward, though not
strongly except in the case of some active specialties
which developed a decidedly weak tone. Encourage:
ment was derived at one time from the improvement
in grain and cotton prices. Sugar prices also displayed strength without, however, proving much of
a stock market influence. On the other hand, all
indications of an improvement in general trade and
business have been lacking, and very little comfort
is to be derived from the reviews of the steel trade.
The "Iron Age" this week reported that raw steel
production has fallen to a national average of not
more than 12% of capacity, which, it says, is the
lowest level of which there is any record. This trade
paper also notes that the June output of pig iron,
amounting to 20,935 gross tons a day, was the smallest since December 1896, a period of nearly 36 years.
It says'that a moderate rebound in steel and pig iron
amounting to 20,935 gross tons a day was the smallest since December 1896, a period of nearly 36 years.
It says that a moderate rebound in steel and pig iron
production is indicated for next week, when some
plants that were shut down before the holiday will
resume. On the other hand, there is almost a complete lack of the constructive factors that are needed
to lift steel output above its June average of about
18%,and steel companies do not look for any marked
change for the better during July and August. As
indicating the general drift of prices downward on
the Stock Exchange, 101 stocks reached new low
levels for the year the present week. The call loan
renewal rate on the Stock Exchange was lowered
on Thursday to 2%, after having remained pegged
at 21/
2% for six months, or since Jan.8 1932.
The volume of trading has again been light, repeating last week's experience of not reaching a million
shares on any day of the week. The Exchange was
closed both on Saturday and Monday, the latter
being Independence Day. On Tuesday the sales
on the New York Stock Exchange were 612,690
shares; on Wednesday,727,880 shares; on Thursday,
784,401 shares, and on Friday, 720,168 shares. On
the New York Curb Exchange the sales on Tuesday
were 63,320 shares; on Wednesday,80,390 shares; on
Thursday,93,515 shares,and on Friday,84,140 shares.
As compared with Friday of last week, prices are
irregularly changed, though mostly lower. General
Electric closed yesterday at 9% against 10 on Friday
of last week; North American at 15% against 1714;
Standard Gas & Elec. at 9% against 101/
4; Pacific
78; Consolidated Gas
Gas & Elec. at 181/2 against 19'/
of N. Y. at 337
/8 against 38; Columbia Gas & Elec. at
57
/
8 against 6%;Brooklyn Union Gas at 501/
4 against
53; Electric Power & Light at 278 against 3; Public
/
8 against 34; International
Service of N. J. at 287
Harvester at 10/
1
2against 111/
2; J. I. Case Threshing
Machine at 22% against 22%; Sears, Roebuck & Co.
at 101/
4 against 101%;Montgomery Ward & Co.at4%
against 4%; Woolworth at 231/
4 against 241/
8; Safeway Stores at 30% against 34%; Western Union
Telegraph at 14 against 14'/
78; American Tel. & Tel.
8 against 787
at 721/
/
8; International Tel. & Tel. at
3y8 against 31%; American Can at 31% against 33%;
United States Industrial Alcohol at 15 against 16%;
Commercial Solvents at 4% against 5; Shattuck &
Co. at 5 against 5%, and Corn Products at 25%
.
against 27/
1
2
Allied Chemical & Dye closed yesterday at 451/
2
against 47% on Friday of last week; E. I. du Pont
Volume 135
Financial Chronicle
171
tions negotiations at Lausanne. In mid-week dealings, however,irregular tendencies prevailed,largely
as a result of somewhat more dubious reports from
Lausanne. The conversion plan, whereby the L2,086,000,000 5% war loan is to be converted into a
3/
1
2% issue, was by far the most important single
factor in the early sessions. London saw in this
plan the beginning of world-wide trade recovery, and
that "far-reaching uplift in industry and commerce
for which all civilized nations are praying." It was
pointed out that the credit of every sound borrower
in the world will be improved by the conversion operation as British credit normally acts as a standard.
Following the announcement, British Government
securities were unobtainable in London at prices to
yield more than 31/2%, so that the anticipated good
effect on the credit of other borrowers seems assured. There is no doubt, moreover, that the conversion will be an outstanding success, as a London
report of Thursday to the New York "Times" states
that "tens of millions of pounds are being thrown
into the conversion scheme." The optimism in
London was readily communicated to the Paris and
Berlin markets, which also advanced sharply. There
was a tendency throughout Europe to see in these
events a waning of the "psychological depression,"
and the opinion was widely expressed that a distinct
upturn in business will soon follow.
The London Stock Exchange opened, Monday,
with a burst of strength, all types of securities sharing in the rapid advance. Encouraged by the sweeping gains of the late sessions of last week, investors
rushed to buy and dealers had difficulty in filling
the orders. British funds received further support
and a small reaction after midday diminished the
gains only a little. The speedy improvement of
British credit from a 4% to a 3/
1
2% basis brought
much more interest in other securities. British
stocks, international issues and foreign bonds were
all swept forward in the vigorous movement. Tuesday's dealings were again exceedingly active, but
there was a tendency toward profit-taking and setbacks occurred in some parts of the list. British
funds weakened, and most industrial stocks also declined. The international group was firm until late
in the afternoon, when advices were received of a
poor opening at New York. The London market was
quieter, Wednesday, and the start was uncertain
owing to nervousness regarding Lausanne. Buying
increased later in the day, and a substantial recovery in prices resulted. British funds and foreign
bonds were alike in heavy demand, and sizable net
gains were registered for the day. Industrial securities also improved toward the close, while the international group was good despite poor reports from
New York. After a firm and active opening Thursday, irregularity developed in London and prices
in most sections dropped below the previous close.
British funds remained strong, however, and many
foreign bonds also resumed the advance. Industrial
stocks and international issues slumped, and losses
were heavy in some instances. Sharp gains took
place in all parts of the list, yesterday, after announcement of the Lausanne accord. British funds
-4-were very strong, but other issues also advanced.
RICE trends on stock exchanges in the important
The Paris Bourse began the week cheerfully, prices
European financial centers were exceedingly advancing quite generally owing to the hopeful refavorable, early this week, owing to the optimism ports from London. German bonds listed at Paris
occasioned by the British war loan conversion plan were especially in favor, but good buying also took
and the hope of a favorable outcome in the repara- place in rentes. Rumors of an impending Ministerial
3
4; National Cash
de Nemours at 223/s against 23/
Register A at 63
/
4 against 7; International Nickel
8; Timken Roller Bearing at 73/4
/
8 against 41/
at 47
against 9; Mack Trucks at 12% against 12; Johns.
Manville at 10% against 11%; Gillette Safety Razor
at 131/
8 against 13; National Dairy Products at 15
against 15; Texas Gulf Sulphur at 12/
1
2against 13;
Freeport Texas at 11% against 107
/8; American &
Foreign Power at 2/
1
2 against 2; United Gas Improvement at 117
/s against 127
/
8; National Biscuit
at 213
/
8 against 22; Coca-Cola at 77 against 831/2;
Continental Can at 197
/8 against 20%; Eastman
Kodak at 36/
1
4against 40%; Gold Dust Corp. at 10%
ex-div. against 10½; Standard Brands at 10%
against 10; Paramount Publix Corp. at 1/
3
4 against
2; Kreuger & Toll at 3/32 against 3/32; Westinghome Elec. & Mfg. at 157
/8 against 171/s; Drug, Inc.,
/8 against 271/
at 267
4; Columbian Carbon at 17
against 17%; Reynolds Tobacco class B at 26%
against 27½; Liggett & Myers class B at 39 against
401/
4; Lorillard at 11% against 11%, and American
Tobacco at 48 against 48/
3
4.
The steel shares have continued their downward
drift. United States Steel closed yesterday at 21/
1
2
against 23% on Friday of last week; Bethlehem
Steel at SN against S1/1, and Vanadium at 63
/
4
against 7. In the auto group Auburn Auto closed
yesterday at 4478 against 48 on Friday of last week;
General Motors at 7% against 8; Chrysler at 5%
against 61/
8; Nash Motors at 9/
1
4 against 9/
1
2; Packard Motors at 1/
1
2against 1%;Hudson Motor Car at
4/
1
2against 4%,and Hupp Motors at 1% against 1%
bid. In the rubber group Goodyear Tire & Rubber
closed yesterday at 6% against 6% on Friday of last
week; B. F. Goodrich at 2% against 2%; United
States Rubber at 2 bid against 2, and the preferred
at 4 against 3% bid.
The railroad shares still continued weak,
especially on the poor returns of earnings for the
month of May. Pennsylvania RR. closed yesterday
at 7 against 73
/
8 on Friday of last week; Atchison
Topeka & Santa Fe at 191/
4 against 20; Atlantic
Coast Line at 101
/
4 against 11; Chicago Rock Island
& Pacific at 23
/
8 against 2/
1
4; New York Central at
11 against 114; Baltimore & Ohio at 5/
1
2 against
1%; New Haven at 6% against 71/
8; Union Pacific
at 28/
1
2against 317
/8; Southern Pacific at 71/
4 against
71/
2; Missouri-Kansas-Texas at2against 2; Southern
Railway at 3/
1
2 against 31/
8; Chesapeake & Ohio at
10 against 101%; Northern Pacific at 6% against
6/
1
4, and Great Northern at 6/
3
4 against 6%.
The oil shares have been inactive, notwithstanding
the improving outline for the oil industry. Stanulard
Oil of N. J. closed yesterday at 24 against 24% on
Friday of last week; Standard Oil of Calif. at 181/
4
against 18%; Atlantic Refining at 10% against
10%, and Texas Corp. at 9% against 9/
1
2
.
The copper shares are so low that their fluctuations are of little consequence. Anaconda Copper
closed yesterday at 4 against 31/
8 on Friday of last
week; Kennecott Copper at 61/
8 against 5%; American Smelting & Refining at 7% against 6%;Phelps
Dodge at 41/4 against 4, and Cerro de Pasco Copper
at 41/
4 against 4%.
P
172
Financial Chronicle
crisis as a result of budgetary difficulties were disregarded by investors. The advance was resumed
in an active session, Tuesday. Buying was stimulated by reports from Lausanne predicting an early
agreement on reparations, and by a clearing of the
French political atmosphere. Gains were important
in many groups, with rentes and foreign securities
in greatest favor. The trend Wednesday was again
favorable, notwithstanding conflicting reports of the
reparations negotiations. Unfavorable reports from
New York were disregarded and investment buying
continued on a good scale. All the leading stocks
made substantial gains, while some further increases
also appeared in rentes and foreign bonds. The advance was broken Thursday, however, when a wave
of selling developed. Prices tumbled on the Bourse
and a good part of the gains recorded earlier in the
week was wiped out. French securities suffered
more than international issues. A buoyant session
followed yesterday, all securities advancing as a
result of the reparations agreement.
Quotations on the Berlin Boerse advanced briskly
when trading started, Monday, both stocks and
bonds reflecting an excellent demand. The German
market was stimulated particularly by hopes of a
satisfactory agreement at Lausanne. Turnover was
heavy and gains ranged from 2 to nearly 5 points,
with greatest interest manifested in mining and
potash stocks. The cheerful tone was resumed Tuesday, and large net gains for the session were again
recorded, despite some profit-taking toward the
close. Potash stocks and electrical issues were
favorites in this session. Dealings Wednesday were
less active, but the trend was generally favorable.
Buying centered in bonds rather than stocks, and
unusually large advances were recorded in the fixedincome group. The upward movement came to a halt
Thursday, owing to misgivings regarding the Lausanne discussions. The opening was uncertain, but
the list soon turned downward and material losses
were registered in all departments of the market.
The tone yesterday was uncertain, as traders preferred to await full details of the Lausanne agreement.
July 9 1932
within 15 years, they will be cancelled automatically.
Despite an inauspicious start, the Lausanne conference has thus met almost completely, so far as
reparations are concerned, the recommendations of
the Young Plan Advisory Committee that all intergovernmental debts be adjusted to the existing
troubled situation of the world, without delay, if
new disasters are to be avoided. There remains in
the background, however, the question of the debts
due the United States Government from the former
Allies. These will doubtless have a considerable
bearing on the ratification of the Lausanne treaty
by the parliaments of the interested nations. It is
intimated in Lausanne dispatches that the debt payments may be suspended, temporarily, under the
terms of the agreements reached individually with
the United States. The hope prevails among the 13
delegations, it is said, that the United States will
act to scale down or cancel the payments, which are
scheduled to be resumed this autumn owing to the
expiration of the Hoover moratorium year. In
Washington these comments were read with much
interest, according to reports from the capital, but
no official statements were made. It was pointed
out unofficially that the Lausanne agreement is entirely independent of the war debt accords and was
reached without any assistance from or communication with the United States.
The course of the Lausanne conference has been
anything but smooth since its very inception on
June 16, and in the past week the difficulties seemed
to multiply as the French and German representatives debated the compromises necessary to a lasting agreement. Prime Minister Ramsay MacDonald
and his British associates exercised an inexhaustible
fund of patience and perseverance in finding solutions for the knotty problems, and the successful
end of the conference is certainly due in large part
to their efforts. It is evident that the agreement is
intended as the beginning of the genuine end of
the entire reparations chapter of the Versailles
treaty. The preamble declares, according to an
Associated Press report, that reparations are
finally ended and that a new effort in relations
among nations is commenced on the basis of reciproEPARATIONS obligations of the German Gov- cal confidence. This statement is.considered a comernment have been all but eliminated by an promise between the insistence of the German Chanagreement among the interested Powers, reached at cellor, Colonel Franz von Papen, on elimination of
Lausanne yesterday after three weeks of intense dis- the war guilt clause of the Versailles treaty, and the
cussion of all phases of this problem, which has reply of Premier Herriot of France that extraneous
plagued the world for more than a decade. The political clauses could not be permitted in the purely
agreement was foreshadowed by an announcement of economic document under discussion.
Prime Minister Ramsay MacDonald, Chairman of
With agreement on reparations assured, discusthe gathering, who informed press correspondents sions were started at Lausanne early yesterday reearly in the day that "very good news" might be garding the world economic conference, which is to
expected shortly. Premier Edouard Herriot of form the second phase of the Lausanne negotiations.
France stated soon thereafter that all important ele- This meeting is predicated on the recommendation
ments of an accord had been gathered together. The of the Young Plan Advisory Committee that the
British House of Commons was informed at the Lausanne conferees consider not only reparations,
same time by J. H. Thomas, Minister for the Do- but "other economic and financial difficulties which
minions, that an agreement had been reached. The are responsible for and may prolong the world
Lausanne treaty, of which only minor details remain crisis." It will be recalled that Secretary of State
to be adjusted, provides for a final payment by Ger- Stimson revealed, May 31, that such a general conmany of 3,000,000,000 marks, to be placed in a gen- ference, in which the United States would particieral fund for European financial reconstruction. pate, was under discussion between the London and
The Reich will issue 5% bonds in this amount, based Washington Governments. While expressing willon the guarantee of the Reichsbank, and matur- ingness to join the conference, Washington insisted
ing in 37 years. It is provided that these securities that this second phase be held in London, in order
are to be sold at 90, not less than three years nor to dissociate the gathering from any connection with
more than 15 years from 1932. If not marketed reparations. It is now suggested in Lausanne, re-
R
Volume 135
Financial Chronicle
ports state, that the economic world conference be
held in London beginning next September.
As the Lausanne conferees began their third week
of deliberations, it was indicated that Britain,
France, Italy, Belgium and Japan, as the five chief
creditor Powers, had agreed among themselves on
the advisability of a final payment by Germany
in the amount of three to four billion marks and in
the form of a bond issue. This feature of the proposed settlement was the nucleus of the negotiations
during the current week. Chancellor von Papen
made a counter-proposal last Sunday, in which he
offered to pay 2,000,000,000 marks. He attached the
political conditions that the payment should not in
any way be dependent on American debt cancellation, and should not be construed as an admission by
Germany of the war guilt clause of the Versailles
treaty.
A strong impetus was given the negotiations, Monday, when Foreign Minister Dino Grandi handed
Mr. MacDonald a note in which the Italian Government called for complete cancellation, to be applied
to all European Powers, of reparations and war
debts. The delegations at Lausanne were urged in
this note to "take their full share of the responsibilities, sacrifices and risks called for by the gravity
of the situation." As the discussions proceeded,
Tuesday, some doubt was expressed regarding the
possibility of reaching a final agreement, owing
to the differences between France and Germany regarding the war guilt clause. The sum to be paid
by Germany was of lesser consideration, but it also
caused some friction. The Reich delegation was
reported Tuesday as making an offer of a 2,600,000,000-mark payment in final settlement, but Premier Herriot was said to be holding out for 4,000,000,000 marks. The plan for a bond issue was
brought into prominence when a suggestion by Sir
Walter Layton, of Great Britain, for eventual issuance of a German flotation in the world's capital
markets was placed before the gathering. Discussions were carried on with ever-increasing intensity
Wednesday and Thursday, and the main outlines of
the settlement were finally fashioned at a meeting
which started Thursday and ended only at 2:45 a. m.
Friday. All parties to the conference were intent
on reaching an accord, and the announcement of an
agreement yesterday was hailed with profound
satisfaction.
173
Great Britain, France and Japan made it clear, however, that similar whole-hearted acceptance could
scarcely be expected of these Powers.
The White Paper, which Mr. Baldwin read gravely
before an attentive House, stated that the British
Government desires to contribute all it can to effect
practical application of the Hoover proposal. A
standard of land disarmament has already been
achieved in England which more than covers Mr.
Hoover's aims, it was declared. In regard to air
services, the White Paper countered the Hoover proposal to eliminate bombing planes with a proposal
for prohibition of all bombing from the air "within
limits to be laid down as precisely as possible by
an international commission." Air attacks upon
civilian populations would not be permitted under
the British plan. A strict limitation was suggested
on the unladen weight of all military and naval aircraft with the exception of troop carriers and flying
boats, while restriction of the number of all types
of combatant aircraft also was advocated.
"As regards the navy," Mr. Baldwin continued,"it
is not practicable for Great Britain to cut down the
number of naval units below certain points, but if
there is a limit to numerical reduction it is possible
and highly desirable to secure by other means a
large diminution of naval armaments. The gun
calibre at present is far too high and could be reduced by one-third in new capital ships and cruisers.
The capital ships could then be reduced to 22,000
tons and 11-inch guns, and the cruisers from 10,000
tons with 8-inch guns to 7,000 tons with 6.1-inch
guns." Such limitations, Mr. Baldwin indicated in
a subsequent summary, would apply on all new construction. If international agreement could not be
secured for the reduction of capital ship tonnage to
22,000, then the British Government would suggest
a 25,000-ton limitation with 12-inch guns as a maximum, he continued. It was suggested, in addition,
that the maximum tonnage of aircraft carriers be
reduced to 22,000 tons, with 6.1-inch guns. Total
abolition of submarines was held desirable, but if
agreement could not be attained on this point, then
tonnage of undersea vessels should be restricted to
250 tons maximum surface displacement, with strict
limitation of both total tonnage and number of units.
The White Paper called, finally, for reduction of
destroyer tonnage by approximately one-third, this
to be dependent on the abolition of submarines.
The British reply to the Hoover proposal was read
HAT the disarmament proposal ofPresident Hoowith great interest in Washington, and Secretary
ver has given an entirely new turn to the interof State Stimson announced late Thursday that he
national discussions of this question was shown
could form no opinion on the details of the British
Thursday, when Stanley Baldwin, as Acting Prime
proposals until he had received them all. "The stateMinister of Great Britain, read a White Paper before
ment by Mr. Baldwin in the House of Commons,folthe House of Commons in which the suggestions lowing
the announcement of President Hoover's
made by Mr. Hoover were warmly praised. The plan
for reduction in armaments seems to be an indiBritish Government professed, in this paper, a desire
cation of the momentum given to the Disarmament
to associate itself with Mr. Hoover's conception of Conferenc
e since the announcement of the Presithe problem, but important reservations were never- dent's
plan," he said. "This was the purpose of the
theless made in regard to naval disarmament, while President in
making the American proposal, and we
some divergencies from the American viewpoint also welcome the
British suggestions as an expression of
were announced on aircraft limitation. The state- the same spirit.
I cannot form any opinion as to
ment now made by Mr. Baldwin constitutes the the details of
the proposal without having them all
second definitive reply by a great Power to the pro- before me.
But the fact that changes seem to be
posal announced by Mr. Hoover June 22, which calls suggested in the
navies of the world which would
for a sweeping reduction by nearly one-third in all require reconstruc
tion of important elements of the
land, sea and air armaments of the world. Italy fleets indicates
that this part of the proposal, at
accepted the Hoover suggestions without reserva- least, is not put
for immediate action. It would
tions immediately after they were announced. rather seem
to be a suggestion by the British of an
T
174
Financial Chronicle
ideal toward which further construction should tend.
We shall study their proposal when it is received
with great interest and care, confident that we have
a common purpose."
Among the American delegates to the General Disarmament Conference at Geneva there was much
disappointment when the British reply to the American plan was made known. It was pointed out, a
dispatch to the Associated Press said, that the British scheme for tonnage reductions in new capital
ships and cruisers would not effect any financial
economies until 1938 at the earliest, whereas the
American program would bring an immediate saving. "In American quarters," the report continued,
"the British suggestions were recognized as strikingly similar to those advanced by England at the
1927 arms conference here." This point was also
made in a London dispatch of Thursday to the New
York "Evening Post," which added that a similar
British plan contributed to the breakdown of the
Geneva conference of 1927. It was noted that the
well-placed British naval bases would give the British navy an immediate advantage over the American
navy under the plan.
At the Disarmament Conference itself, meanwhile,
arrangements have been almost completed for an
adjournment of at least three months, and perhaps
longer. There have been no official pronouncements
to this effect, but all press reports indicate that adjournment of the first phase of the meeting is scheduled approximately for July 18. Before dispersing,
a dispatch of Tuesday to the New York "Times"
states, the delegations plan to issue a declaration in
which respects would be paid to the Hoover plan,
while action would be deferred on its essential army
and navy chapters as well as on the French suggestions for organizing peace. Much emphasis will be
placed in this declaration, it is added, on all points
whereon the conferees have been able to reach agreement. In further reports it was indicated that the
American delegation at Geneva is making strenuous
efforts to have the Conference name a definite date
for resumption of the gathering, preferably in the
middle of November. While the Conference stands
adjourned, discussions are to be carried on among
the leading Powers in regard to major disarmament
questions.
URRENCY problems of the British Empire are
scheduled to form a part of discussions of the
Imperial Economic Conference, which will begin
at Ottawa, July 21. The fluctuating values of the
pound sterling and other Empire monetary units
have already occasioned some thought regarding the
ertablishment of a common monetary policy, and
this question may be debated at some length in
Ottawa. The problem is highly involved, however,
and there have been few preliminary statements of
policy in any quarter. Views of the London delegation have been explained briefly by Stanley Baldwin,
who will head the British contingent. In a statement before the House of Commons last week, he
remarked that the National Cabinet "has no intention of returning to the gold standard so long as gold
behaves as now, and we cannot give definite assurances of the future course of sterling prices." The
policy of the monetary authorities of England is an
abundant supply of cheap money, he explained, and
he suggested that some progress might be made at
Ottawa on that basis.
C
July 9 1932
Some of the Dominion delegations are already on
the way to Ottawa, while others will begin the journey within the next few days. The British delegates
will include Stanley Baldwin, J. H. Thomas, Dominions Secretary; Sir Philip Cunliffe-Lister, Colonial Secretary; Walter Runciman, President' of
the Board of Trade; Viscount Hailsham, Minister
for War, and Sir John Gilbert, Minister of Agriculture. The Indian delegation will include Sir
Henry Strakosch and Sir George Schuster. South
Africa is sending N. C. Havenga, Finance Minister;
Piet Grobler, Minister of Lands, and A. P. Fourie,
Minister of Mines. The Irish Free State representatives will be headed by Sean T. O'Kelly, Vice-President of the Executive Council; Sean Lemass, Minister of Industry and Commerce, and James Ryan,
Minister of Agriculture. Australian delegates will
include Stanley Bruce, Assistant Treasurer, and
H. S. Gullett, Minister of Trade, while New Zealand
is sending J. G. Coates, Minister of Public Works,
and Downie Stewart, Finance Minister. Canada
will be represented by an extensive delegation under
the leadership of Prime Minister R. B. Bennett, who
will be host to the gathering.
It is considered likely in Ottawa that the conference will last about six weeks, or until Sept. 1.
In a report of July 1 to the North American Newspaper Alliance, it is remarked that there are many
circumstances which will tend to make it the most
important Empire gathering ever held. The conference will be the first, it is pointed out, since
Britain abandoned the gold standard last September
and followed this action by erecting a tariff barrier
of 20%. This change in British policy is sure to be
one of the dominant factors at the meeting, as the
London delegation is formally committed to go as
far as possible in the direction of free trade within
the Empire. It is no secret, moreover, that the Dominions are inclined to give favorable consideration to a general scheme for intra-Empire trade preferences, and it is thus quite possible that the results
of the conference will be of extreme importance to
the United States. The aims of the conference have
been outlined in a general sense of Prime Minister
Bennett. The gathering, he states, "should devote
its energies and abilities, with a common purpose
and whole-hearted zeal, to deepening the channels
of intra-Imperial trade by judicious adjustments of
tariffs and other measures, which will aim to create
a larger volume of mutually profitable trade between
the different units of the Empire than now exists,
and to make their unrivaled resources available in
greater degree for the diffusion of a higher standard
of well-being among its citizens than they now
enjoy."
RBITRATION between the British and Irish
Free State Governments on the land annuities
dispute is clearly foreshadowed by the trend of cur.
rent negotiations, as revealed in the House of Commons in London. Payments due Britain on the land
annuity of E3,000,000 have been withheld by Eamon
de Valera, President of the Irish Free State, and it
was disclosed in a Commons debate on Monday that
Dublin has also indicated its intention of withholding about £1,800,000 in other annual payments due
from the Irish Free State. It was made known unofficially the same day, and later confirmed by J. H.
Thomas, Minister for the Dominions, that the de
Valera Government is placing the payments in a
A
Volume 135
Financial Chronicle
special fund in Dublin, to await the result of arbitration. The nature of the tribunal is now the only
stumbling block, it is understood, but this point also
is likely to be straightened out before long. Mr. de
Valera has declared repeatedly that he will not
accept arbitration at the hands of a British Empire
tribunal. In any such court the "dice would be
loaded against Ireland," he has said. The London
Government, however, insisted for some time on the
form of Empire court proposed at the Imperial Conference in 1930. A modification of this attitude is
now indicated, as a note was dispatched to Dublin,
Wednesday, in which President de Valera was
offered his choice of a tribunal, with the "final, definite qualification" that its members must be citizens
of ,the British Commonwealth of Nations. The Government, according to this note, would consider the
possibility of agreeing to arbitration not only of the
£3,000,000 land annuities, but also of the £1,800,000
additional payments which Mr. de Valera is disputing.
Alarmed by the attitude of the Irish Free State
Government, Mr. Thomas introduced in the London
House of Commons, Monday, a bill empowering the
National Cabinet to impose a tariff up to 100% on
imports from the Irish Free State, in retaliation
against the refusal to pay the land annuities. An
indication that this method of retaliation would be
employed in order to collect the sum due in duties
on Irish merchandise, if the payments were not
forthcoming directly, was given by the London Government late last week. President de Valera expressed himself vigorously, July 1, regarding this
"decision to launch reprisals rather than submit to
arbitration." It is true, he said, that England buys
a lot from Ireland, but he stated that an even greater
amount of British goods is sold in the Free State.
"If by special tariffs, England is going to collect
£3,000,000 at her ports, we can collect it back at
ours," he remarked. When the bill providing
authority to impose the levy came up in the London
House of Commons, it was accepted by the over:
whelming vote of 223 to 31 on its first reading. The
second reading, Wednesday, was almost equally
favorable, the vote on this occasion being 321 to 41.
That the authority will ever be used, however, seems
most improbable. Mr. Thomas explained, Wednesday, that the annuities controversy has now been
reduced to the simple question of the form of arbitration. President de Valera has denied that the land
payments are due on the ground that the covering
treaties have never been ratified by the Irish Parliament. In its latest note to Dublin on the subject,
the British Government states that it is unaware of
the grounds on which the Free State is denying its
liability for other payments besides the land annuities, but hints that arbitration will be acceptable if
the Free State Government will indicate those
grounds.
EPORTS of increasing unrest in Jugoslavia were
given some color, last Saturday, when the
formation of a new Cabinet was announced in Belgrade to succeed the Marinkovitch Government.
There were indications on June 29 that Premier
Marinkovitch had resigned, according to a dispatch
to the New York "Times," but nothing definite was
learned until last Saturday. It was then stated
merely that a new Cabinet had been formed by Dr.
Milan Sershkich, who was Minister of the Interior
R
175
in the Marinkovitch regime. This Government is
said to represent a compromise between the National
center and the Radical group, with Right representation more important than that of the Left. The only
Cabinet changes, besides that of the Premiership, are
in the Foreign Ministry, which is assumed by Boske
Jeftitch; in the Interior Ministry, taken by Zika
Lazitch; in the Trade Ministry, taken by Deputy
Mohoritch ; and in the Ministry of Justice, assumed
by Dr. Schumek Novitch. The new Premier is described as a Serb, who has actively supported the
dictatorship through which King Alexander has
ruled for the last two years. In a Belgrade report
of July 1 to the New York "Times" it was remarked
that the present tendency of the political leaders
is to treat all opposition with redoubled severity.
"The attempts of politicians to address their followers, which have been tolerated for the last three
months, are now being ruthlessly suppressed at the
cost of bloodshed," the dispatch added.
—•-HE Bank of England statement for the week
ended July 6 shows a further gain in gold holdings amounting this week to only £11,439, but as
circulation expanded £3,596,000, reserves fell off
£3,584,000. The Bank's gold now aggregates £136,965,018, as compared with £165,810,946 a week ago
and £136,953,579 last year. Public deposits rose
£2,965,000 and other deposits decreased £6,137,780.
Of the latter amount £5,642,601 was from bankers'
accounts and £495,179 was from other accounts.
The proportion of reserve to liability is down to
33.27% from 35.08% a week ago. A year ago the
ratio was 57.73%. Loans on Government securities
rose £457,000, while those on other securities fell
off £3,116. The latter consists of discounts and
advances, which increased £101,690 and securities,
which decreased £104,806. The discount rate remains at 2%, which rate was installed last week.
Below we furnish a comparison of the different items
for five years:
T
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1932
1931
1929
1930
1928
July 6.
July 8.
July 9.
July 10.
July 11.
g
366,678,000 359,257,662 363,803,626 368,839,800 136.361.115
Public
20.947,000 15,734,020 9.264,376
euladtieres
-a
its
9,230,390 16.210,144
115,163,831 99,529,705 105,769.921 102,527.832 104.703,036
Other deposits
Bankers accounts.. 80,922,753 64,543,324 69,532.815 65,360,123
34,241,078 34,986,381 36,237,106 37.167,709
Other accountsGovernm't securities 67,626,656 31.825,906 54,125,547 43,291.855 30.628,885
41,238,065 34,939,855 26.176,439 39,649,422 50.588,324
Other securities
Disct. dr advances 14,991,091
7,102,368 6,265,564 16,182,431
26,246,974 27,837,487 19,910.875 23,466,991
Securities
Reserve notes & coin 45,286,000 66,553,284 52.781,828 46.871,907 57,745,802
Coin and bullion_ _ _136,965,018 165,810,946 156,585,454 155,711.707 174,356,917
Proportion of reserve
liabiities
41.93%
45.88%
33.27%
57.73%
47%%
3%
434%
rateDank2%
234%
514%
a On Nov. 29 1928 the fiduciary currency was amalgamated with Sank of England
note issues, adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.
HE Imperial Bank of India on Thursday, July 7,
reduced its discount rate from 5% to 4%.
Earlier in the week, that is, Monday, July 4, the
Central Bank of Bolivia announced a reduction of
two points in the discount rate, making the rate to
the public 732%, to farmers 7%,to associated banks
6% and to the Government 5327o- Rates are 11%
in Greece; 81A% in Bulgaria; 7% in Austria, Rumania, Portugal and Lithuania;6% in Spain and
in Finland; 6% in Danzig, and in Colombia; 5.11%
in Japan; 5% in Estonia and in Chile; 5% in
Germany, Italy, Hungary and Czechoslovakia; 43i%
in Norway; 4% in Sweden, Denmark and India;
33
,%in Belgium and in Ireland; 23/2% in France and
in Holland, and 2% in England and in Switzerland.
In the London open market discounts for short bills
on Friday were 1@1 1-16% as against 'N% on
Friday of last week, and 1@1 1-16% for three
T
Financial Chronicle
176
months' bills as against 1 1-16% on Friday of last
week. Money on call in London on Friday was
%. At Paris the open market rate continues at
4
17 %, and in Switzerland at 1
HE Bank of France statement for the week ended
T
July 1 records an increase in gold holdings of
217,160,375 francs. The total of gold now stands at
82,316,793,585 francs, in comparison with 56,228,692,706 francs at the corresponding period a year ago
and 44,169,983,820 francs two years ago. Credit
balances abroad rose 238,000,000 francs, while bills
bought abroad declined 261,000,000 francs. Notes
in circulation reveal a large increase, namely 2,042,000,000 francs. The total of circulation is now 82,709,189,220 francs, in comparison with 78,609,675,165 francs last year and 73,259,797,915 francs the
previous year. Decreases are shown in French commercial bills discounted and in creditor current accounts of 1,061,000,000 francs and 2,062,000,000
francs, while advances against securities went up
100,000,000 francs. The proportion of gold on hand
to sight liabilities now stands at 76.11%, which compares with 56,47% a year ago and 50.58% two years
ago. Below we furnish a comparison of the various
items for three years:
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Status as o
Changes
July 3 1931.
July 4 1930.
July 11932.
for Week.
Francs.
Francs.
Francs.
Francs.
Gold holdinga- -- -Inc. 217.160.375 82,316,793.585 56,228,692.706 44,169.983.820
Credit halo. abed.Inc. 238,000,000 4,528,208,424 6,945,695,379 6,904.264,230
aFrench commerc'l
bills discounted_ Dec 1061000,000 2.888.067.163 4,431.968,358 5,674.293.765
bBilis bought abr'dDec. 261.000.000 1,782,419,075 18,686.568.993 18,731.378,721
Adv. agt. securs__Inc 100,000,000 2.815.325.279 2.891.802,934 2.836.496.348
Note circulation._Inc 2042,000.000 82,709,189,220 78.609.675,165 73,259,797.915
Cred. curr. accts __Dec 2062000.000 25,440,482,944 20,971,382,442 14,074,282.326
Proportion of gold
on hand to sight
liabilities
Inc.
56.47%
0.21%
76.11%
50.58%
a Includes bills purchased in France. b Includes bills discounted abroad.
—0—
July 9 1932
HE persistent ease in money rates in the New
T
York market was emphasized, this week, by a
reduction in the call loan rate on the New York Stock
Exchange. After holding undeviatingly to 23/2%
for six months, this official charge was lowered
Thursday to 2%, both for renewals and new loans.
Quotations yesterday were also at this figure. In
the outside or street market, however, funds were
again available in abundance all week at 1%, or
concessions of 13/2% from the official level of
which prevailed Monday to Wednesday, inclusive,
and 1% from the new 2% figure made effective
Thursday. Time loans were unchanged. There was
extremely little activity in this as well as all other
sections of the market. That demand for accommodation is still dropping, was shown by both the usual
compilations of brokers loans which were made available this week. The comprehensive tabulation of
the New York Stock Exchange for the full month of
June reflected a decrease of $56,822,927, while the
report of the Federal Reserve Bank of New York for
the week to Wednesday night showed a decline of
$9,000,000. Gold movements for the week to
Wednesday night consisted of imports of $171,000,
exports of $6,128,000, and a net decrease of $6,108,000 in the stock of metal held earmarked for foreign
account.
EALING in detail with call loan rates on the
D
Stock Exchange from day to day, 2% was
the ruling quotation on Tuesday and Wednesday,
both for new loans and renewals. On Thursday the
rate was officially reduced to 2%, which also was the
rate on Friday. The 23/2% rate had been in effect
on the Stock Exchange since Jan. 8. The 2% renewal rate is the lowest official charge since Oct. 15
HE Bank of Germany in its statement for the 1931. There has been no change in regard to the
last quarter of June records an increase in gold demand for time money, no transactions being reand bullion of 8,821,000 marks. The total of bullion ported this week. Rates are quoted nominally at
now stands at 832,209,000 marks, in comparison 13/2% for all dates. The market for prime commerwith 1,421,095,000 marks last year and 2,618,874,000 cial paper has been fairly brisk this week, but there
marks the previous year. A decrease appears in was very little paper available and dealings were
reserve in foreign currency of 8,290,000 marks, in restricted on that account. Quotations for choice
silver and other coin of 130,192,000 marks, in notes names of four to six months' maturity are 2@2/
31%.
in other German banks of 9,199,000 marks and in Names less well known are 3%. On some very high
other liabilities of 8,301,000 marks. Notes in circu- class 90-day paper occasional transactions at 2%
lation rose 267,290,000 marks, raising the total of the were noted.
--4-item to 3,984,207,000 marks. Total circulation last
year was 4,294,685,000 marks and the previous year
acceptances
have been in exRIME bankers'
4,721,436,000 marks. Bills of exchange and checks,
cellent demand, but the market has been exadvances, other assets and other daily maturing ob- tremely quiet as the supply has been limited. Rates
ligations record increases of 232,384,000 marks, are unchanged. The quotations of the American
158,837,000 marks, 78,969,000 marks and 72,341,000 Acceptance Council for bills up to and including
marks respectively. The items of deposits abroad three months are %% bid, 4
3 % asked; for four
and investments remain unchanged. The proportion months, 1% bid and 4%
7
asked; for five and six
of gold and foreign currency to notes circulation months, 131% bid and 11
4% asked. The bill buying
stands at 24.1% as compared with 40.1% last year rate of the New York Reserve Bank is 1% for 1-90
and 63.1% the previous year. A comparison of the days; 13/8% for 91-120 days, and 1% for maturities
various items for three years is furnished below:
from 121-180 days. The Federal Reserve Banks
REICHSBANK'S COMPARATIVE STATEMENT.
again show an increase in their holdings of acChanges
June 30 1932. June 30 1931. June 30 1930.
for Week.
ceptances, the total having risen from $63,519,000
Reichsmarks. Reichsmarks. Reichsmark..
Reichsmarks.
Assets—
Gold and bullion
Inc. 8.821,000 832.209.000 1,421,095,000 2,618,874.000
to $77,353,000. Their holdings of acceptances for
90.474,000 177,041,000 149,788.000
Of which depos.abr'd- Unchanged.
foreign correspondents further decreased, falling from
Reeve in torn curr Dec. 8,290,000 129,688,000 299.574,000 358,836.000
Bills of exch. & checkslnc. 232,384.000 3,102,382,000 2,652.327,000 1,783.605,000
1698,163,000 to $73,775,000. Open-market rates for
77,991.000 142.521,000
Silver and other coln-Dec. 130.192,000 190.855,000
2,528,000
2.318,000
4,443.000
Notes on oth.Ger.bks.Dec. 9,199,000
acceptances are as follows:
355.179,000
T
P
Advances
Investments
Other assets
Inc. 158,837,000
Unchanged.
Inc. 78,969,000
261.318,000
364.431.000
844,492,000
102,765,000
855,863.000
185.829,000
101.022,000
589,270,000
Notes in elrculatton Inc. 267,290,000 3,984,207,000 4,294,685.000 4,721.436.000
Oth.dally matur.oblig.Inc. 72,341.000 472,682.000 397.949.000 491.624.000
Dec. 8,301,000 703,588,000 587,147.000 213,622.000
Other liabilities
Propor. of gold & forn
40.1%
63.1%
24.1%
1.8%
cum to note eircurnDeo.
Prime eligible bills
SPOT DELIVERY.
—180 Days— —150 Days—
Bid. Asked.
Bid. Asked.
134
LK
134
131
—90 Days—
Bid. Asked.
Prime ellgible bills
34
34
—60 Days—
Bid. Asked.
34
34
—120 Days—
Bid. Asked.
1
ji
—30 Days—
Bid. Asked.
34
Si
Financial Chronicle
Volume 135
FOR DELIVERY WITHIN THIRTY DAYS.
Eligible member banks
Eligible non-member banks
1;4% bid
144% bid
HERE have been no changes this week in the
T
rediscount rates of the Federal Reserve banks.
The following is the schedule
of rates now in effect
for the various classes of paper at the different Reserve banks:
DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland__
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Rate in
Effect on
July 8.
334
234
334
334
Si '
334
334
234
334
33.4
334
314
33.4
Date
Established.
Previous
Rate.
Oct. 17 1931
June 24 1932
Oct. 22 1931
Oct. 24 1931
Jan. 25 1932
Nov. 14 1931
June 25 1932
Oct. 22 1931
Sept. 12 1930
Oct. 23 1931
Jan. 28 1932
Oct. 21193!
231
3
3
3
4
3
334
23.4
4
3
4
234
TERLING exchange is comparatively dull, with a
S
much easier undertone. On Saturday last the
market was
nominal
largely
in New York.
On
Monday, July 4, there was no market here. On
Tuesday sterling broke sharply and was off three
cents from Saturday's closing price to the lowest since
early in March. There was an almost complete
recovery on Wednesday and the market has been
steadier since that day. The range this week has
been between 3.54/3s and 3.58% for bankers' sight
bills, compared with 3.563
4 and 3.61% last week.
The range for cable transfers has been between
3.543/2 and 3.583
4, compared with 3.56% and 3.62
a week ago. When sterling broke on Tuesday all
the leading Continental exchanges went off also.
Much of the weakness in exchange was attributed to
doubts as to the outcome of the Lausanne conference
and as to the success of the flotation of so great an
issue as the conversion of £2,086,000,000 of British
War Loan 5s to a 3
basis. There are 15,000,000
holders of these bonds, a great number of whom
reside outside the British Empire, and Continental
foreign exchange operators at least seemed to fear
that many of these holders might elect not to convert
but to cash in their bonds at once. In such an event
there would of course be a tremendous strain on the
pound.
Again, the weakness in exchange which has been
evident for the past few weeks, is ascribed largely to
selling by bullish interests which are of the opinion
that under no circumstances would the Bank of
England permit a continuous rise in sterling. The
improvement which took place in the market after
Wednesday was due in part to the greatly improved
prospects of final and satisfactory adjustments at
Lausanne. The market was also helped by London
advices on Wednesday that the conversion loan program was going well, according to Bank of England
reports, application for the new 332% issue showing
an overwhelming majority over non-assenters. The
strength in the exchange during the second half of
the week, however, must also be attributed to official
support. It was feared that the demand for cash
redemption of a very considerable part of the
great loan would necessitate an increase in the fiduciary issue of the Bank of England or in the Government's floating debt. Neither development seems
imminent. Some days ago the fiduciary issue was
extended to Sept. 30. The quotable rates for sterling
are not a clear indication of the demand for the pound.
This demand continues in almost all markets and
177
seasonal factors favor sterling with considerable
force during the next two months. Tourist requirements are especially important, although perhaps not
so strong as in former years. It must be remembered
that the rate is not a clear index of normal exchange
transactions, as the Bank of England operating secretly in the market through the Exchange Stabilization Fund cloaks the real trend of rates.
There is no longer any uneasiness regarding the
United States dollar in any market. On the contrary, this week there was greater evidence than ever
that foreign funds were entering the dollar bond
market here, and doubtless operators in some
European centers, including those of England,
France, Holland, Switzerland, and Germany, are
entering the New York security market in search of
bargains. The English position is especially strong
in view of the collapse of last September. It is
believed that the British Treasury and the Bank
have large holdings of both francs and dollars. The
Bank of England has been buying gold in France
throughout the past few weeks. This gold is left in
Paris under earmark. There is no possible way of
knowing exactly what amounts the London authorities may have to their credit in other centers, as the
operations of the Bank of England are never disclosed
to the public, but it is believed on good authority that
the Bank of England has fair-sized sums of gold earmarked in New York and it is thought that the
British Treasury and the Bank bold funds of approximately $175,000,000 in the New York market.
In any event the Bank is evidently in a strong position against the autumn drain. It is also believed
that England will have little or no difficulty in returning to gold when the time is deemed expedient.
The British Empire economic conference, delegates
to which are now gathering at Ottawa, may have
an important bearing on decisions respecting the
future of Great Britain's currency and fiscal plans.
Although the Bank of England rate of discount
was reduced on Thursday of last week to 2%, the
lowest rate since 1897, and a rate below which
the Bank of England seems never to have rediscounted, money rates in London have again moved
lower and are out of line with the official rate of
discount, indicating, some think, the bare possibility of a further reduction in the Bank's rate.
On Thursday call money against bills in London
was easy at 4
3 % down to 3/2%. Two-months are at
1 1-16%, three-months bills at 1 1-16% to 13/8%,
four-months bills at 1 3-16% to 1%%, six-months
bills at 1.%. The Bank of England continues to
buy gold in the open market in small amounts.
The difference between the Bank's official rate
(84s. 10d.) and the open market premium is offset
by transfer operations in the sterling stabilization
account. This week gold seems to have sold in
London at from 115s. 10d. to 116s. 5d. The Bank
of England's statement for the week ended July 6
shows an increase in gold holdings of £11,439, the
total standing at £136,965,018, as compared with
£165,810,946 on July 8 1931. The Bank's total
holdings of gold are now the highest since Oct. 28
last year and compare with £136,880,252 in the
last report submitted before gold pay nents were
suspended on Sept. 21.
At the Port of New York the gold movement for
the week ended July 6, as reported by the Federal
Reserve Bank of New York, consisted of imports of
$171,000, chiefly from Latin American countries.
178
Financial Chronicle
Gold exports totaled $6,128,000, of w tich ,448,000
was shipped to France, $1,660,000 to Ecuador, and
$20,000 to Switzerland. The Reserve Bank reported
a decrease of $6,108,000 in gold earmarked for foreign
account. In tabular form the gold movement at the
Port of New York for the week ended July 6, as
reported by the Federal Reserve Bank of New York,
was as follows:
GOLD MOVEMENT AT NEW YORK,JUNE 30-JULY 6,INCLUSIVE.
Exports.
Imports.
$171,000 chiefly from Latin-Ameri- $4,448,000 to France
1,660,000 to Ecuador
can countries
20,000 to Switzerland
$6,128,000 total
S171,000,total
Net Change in Gold Earmarked for Foreign Account.
Decrease: $6,108,000
above figures are for the week ended WednesThe .
day evening. On Thursday there were no imports
or exports of the metal, but there was an increase
of $5,250,400 in gold earmarked for foreign account.
Yesterday there were no imports, but $129,700 was
shipped to Switzerland. Gold earmarked for foreign
account decreased $2,000,000. During the week
approximately $2,513,000 of gold was received at
San Francisco, $1,905,000 coming from China and
$608,000 from Australia.
Canadian exchange continues at a discount, but
has been steadier this week. On Saturday last
Montreal funds were quoted at 12 11-16% discount, on Monday, July 4, there was no market in
New York, on Tuesday at 1231%, on Wednesday
at 1231%, on Thursday at 12%, and on Friday at
1214% discount.
Referring to day-to-day rates, sterling exchange on
Saturday last was steady in a quiet half-day session.
Bankers' sight was 3.573©3.57%; cable transfers
3.57%@3.57%. On Monday, July 4, there was
no market in New York. On Tuesday sterling and
nearly all the Continentals broke sharply. The
range was 3.54/@3.543 for bankers' sight and
2@3.55 for cable transfers. On Wednesday
3.543/
the market witnessed an almost equally sharp recovery. Bankers' sight was 3.553/2@3..57%, cable
transfers 3.55/@3.57%. On Thursday the market
was steady. The range was 3.563/2@3.573' for
bankers' sight and 3.56%@3.573( for cable transfers. On Friday sterling developed strength; the
range was 3.58@3.58% for bankers' sight and
3.583/@3.589 for cable transfers. Closing quota3
/
tions on Friday were 3.5834 for demand and 3.583
finished
for cable transfers. Commercial sight bills
at 3.57; 60-day bills at 3.563/2; 90-day bills at
3.5634; documents for payment (60 days) at 3.563/
and seven-day grain bills at 3.57%. Cotton and
grains for payment closed at 3.573'.
XCHANGE on the Continental countries is
highly irregular and generally easier, influenced
chiefly by the same set of conditions as have affected
sterling in the past few weeks. When sterling broke
on Tuesday, the entire European list gave way but
recovered promptly on Wednesday and Thursday
owing to the favorable developments in London over
the conversion of the British War Loan 5s and as a
result also of the greatly improved outlook for a more
reasonable and perhaps final settlement of international debt and reparations problems now in progress
at Lausanne. The Bank of France continues to increase its gold holdings, but bankers both here and
abroad consider that the Bank has finally liquidated
its foreign balances and that there will soon, as a
result of the Lausanne conference and the return of
E
July 9 1932
confidence in other centers expected to follow from
those developments, be a decline in the Bank of
France gold holdings from their present exceptionally
high level. There can be no doubt that a material
part of the Bank of France gold has been accumulated
in consequence of the flight of capital from other
countries for safekeeping. This gold cannot be expected to remain in France. Some of it, it is believed,
must go to London and Berlin. Some will be returned to New York, because of the extremely low
rates for money in Paris and the greater opportunities
for profitable employment of funds in other markets.
As confidence spreads in other centers much of the
French gold may be expected to flow back to countries from which it has fled seeking safety. The
Bank of France statement for the week ended July 1
shows an increase in gold holdings of fr. 217,160,375,
the total standing at the record high level of fr. 82,316,793,585, which compares with fr. 56,228,692,706
on July 3 1931 and with fr. 28,935,000,000 in June
1928 when the franc was stabilized. The Bank's
ratio is also at a new record high, standing on July 1
at 76.11%, which compares with 75.90% on June 24,
with 56.47% on July 3 1931, and with legal requirement of 35%.
German marks are showing a more decidedly
firmer tone since the proceedings at the Lausanne
conference have proven effectively favorable to the
German interests and have resulted in a more nearly
satisfactory approach to harmonious relations between Berlin and Paris. Details of the Lausanne'
conference will be found on another page. London
dispatches on July 5 stated that the German delegates to the first of the quarterly conferences on
the working out of the "standstill agreement"
covering Germany's private foreign credits have
succeeded in effecting a reduction in the rates of
interest. Reports of the conversion of the shortterm investment under the terms of the "standstill
agreement" showed satisfactory progress. The
Reichsbank statement for the week ended June 30
shows a considerable improvement in gold holdings,
the total standing at 832,209,000 rm., which compares with rm. 823,388,000 on June 23. Of course
this sum is small compared with a year ago, when
total holdings stood at rm. 1,421,095,000. The
Reichsbank's ratio, owing to an increase in circulation and to a decrease in foreign currency reserves, is off 1.8% to 24.1%, as compared with a
ratio of 40.1% a year ago. The Reichsbank rate of
rediscount continues at 5% and cannot be lowered,
no matter how low money rates in other centres, so
long as its ratio remains below 40%. Relatively
speaking, money is extremely easy in Berlin. According to German authorities the cause is business
stagnation, which is reflected in the balance sheet
of the German commercial banks for May 31. These
banks show declines in advances on securities and
merchandise collateral, also reduction in current
account credit, in Bourse credit and in acceptances.
Deposits rose to rm. 7,562,000,000, which means An
increase of nearly rm. 300,000,000 in the last quarter of the year.
Italian exchange is steady and slightly inclined
to firmness. The Italian rate seems not to have
participated in the major movements affecting the
leading exchanges this week.
The London check rate on Paris closed at 91.28 on
Friday of this week, against 90.75 on Friday of last
week. In New York sight bills on the French centre
Volume 135.
1 on Fri4, against 3.93%
finished on Friday at 3.923
day of last week; cable transfers at 3.92/, against
3.93%, and commercial sight bills at 3.92%, against
3.93 2. Antwerp belgas finished at 13.89 for bankers' sight bills and at 13.89 2 for cable transfers,
against 13.923/ and 13.93. Final quotations for
Berlin marks were 23.74% for bankers' sight bills
and 23.75 for cable transfers, against 23.84 and 23.85.
Italian lire closed at 5.103/ for bankers' sight bills
% for cable transfers, against 5.113 and
and at 5.105
5.113,. Austrian schillings closed at 14.08, against
14.093'; exchange on Czechoslovakia at 2.96%,
against 2.96; on Bucharest at 0.60, against 0.60%;
on Poland at 11.20, against 11.233, and on Finland
1 2. against 1.65%. Greek exchange closed at
at 1.64/
0.653 for bankers' sight bills and at 0.664 for cable
transfers, against 0.653 and 0.65%.
XCHANGE on the countries neutral during the
E
war presents no new features of importance.
The Scandinavian currencies have fluctuated rather
widely as a result of the movements in sterling exchange, to which they are strongly responsive. Holland guilders and Swiss francs, while they have receded from the high levels current several weeks ago
and are still above par with respect to the dollar,
are much easier and ruling at quotations which
prohibit the export of gold from New York on an
exchange basis. Bankers believe that both the Bank
of Switzerland and the Bank of The Netherlands
have withdrawn all the gold that they intend to
take from the New York market. In view of the
greatly improved Franco-German outlook it is believed that funds will move away from the Swiss
and Dutch centres to the benefit of the Berlin
market. It will be recalled that Spanish pesetas
have been exceptionally steady for several weeks
past and the improvement in tone is attributed to
the wider confidence prevailing as to the prospects
for steady Government in the Spanish republic.
For some unaccountable reason, however, the peseta
broke sharply this week, especially in Wednesday's
market when the peseta cable rate dropped 7%
points to 8.10. On Friday of last week peseta
cable transfers closed at 8.24. New York bankers
were without advices in explanation of the drop in
the Spanish unit. The statement of the Bank of
Spain for the week ended July 2 shows no fundamental change which might explain the softness
in the currency and the peseta is not normally
affected by the major movments which have governed
the foreign exchanges in the past several years. The
Bank of Spain's statement for the week ended July 2
shows an increase in gold holdings of 200,000 pesetas,
the total standing at 2,255,600,000 pesetas, which
compares with 2,425,900,000 pesetas a year ago.
Circulation during the week ended July 2 showed
only a normal increase of 35,500,000 pesetas, which
might be accounted for by month-end requirements
and by tourist demand for peseta currency. There
has ceased to be any signs of a tendency to currency
inflation in Spain for several months. On July 2
total circulation stood at 4,788,200,000 pesetas,
which compares with 5,347,800,000 pesetas a year ago.
Bankers' sight on Amsterdam finished on Friday
at 40.33, against 40.42 on Friday of last week; cable
transfers at 40.34, against 40.43, and commercial
sight bills at 40.29, against 40.30. Swiss francs
closed at 19.493/i for checks and at 19.50 for cable
transfers, against 19.53% and 19.54. Copenhagen
170
Financial Chronicle
checks finished at 19.44 and cable transfers at 19.45,
against 19.493
% and 19.50. Checks on Sweden
closed at 18.37% and cable transfers at 18.39, against
18.30% and 18.31; while checks on Norway finished
at 17.72 and cable transfers at 17.73, against 17.66%
and 17.67. Spanish pesetas closed at 8.11 for bankers'
sight bills and at 8.11% for cable transfers, against
8.233' and 8.24.
XCHANGE on the South American countries
E
is quite devoid of interest, as all these currencies
continue under strict control imposed by Governmental decrees. Rates are entirely nominal and
there seems to be no likelihood of an 'open market
in the South Americans until a world-wide recovery
of confidence occurs in business circles. The uncertainty regarding affairs in Chile affects the
prospects of all South American countries more or
less adversely. However, in this respect it is of
interest to point out that D. Stewart Iglehart,
President of W. R. Grace & Co., chief importers,
exporters, and shippers to the west coast of South
America, after a survey of the Chilean economic
situation, recently stated that boom times in Chile's
gold fields will soon counteract bad times in the
nitrate and copper industries.
Argentine paper pesos closed on Friday at 253
for bankers' sight bills, against 25% on Friday of
last week; cable transfers at 25.90, against 25.90.
Brazilian milreis are nominally quoted 7.20 for
bankers' sight bills and 7.25 for cable transfers,
against 7.20 and 7.25. Chilean exchange is nominally
8. Peru, nominal, at 20.50, against
/
6%, against 61
20.50.
XCHANGE on the Far Eastern countries presents
E
no new features of importance, varying from
the past several weeks. The Chinese units are dull
and fractionally easier owing to lower quotations for
silver. A week ago silver was quoted officially in
New York at a range from 273' cents an ounce down
to 263
% cents. This week silver seems to have ruled
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
JULY 2 1932 TO JULY 8 1932, INCLUSIVE.
Country and Monetary
UnU.
Noon Buying Rate for Cable Transfers tn New Tort.
Value in United States Money.
July 2.
IS
EUROPE.140075
Austria.'chilling
.139173
Belgium, belga
.007200
Bulgaria, ley
Czechoslovakia, kron .029581
.194490
Denmark, krone
England, pound
3.574666
sterling
.016366
Finland, markka
France,franc
I .039342
Germany, reichamark .237578
Greece, drachma
I .006306
Holland, guilder
I .403860
Hungary, pengo
I .175000
.051189
Italy, lira
.176153
Norway, krone
.112000
Poland, zloty
.032875
Portugal, escudo
.005983
Rumania. leu
082364
Spain, peseta
.183038
Sweden, krona
Switzerland, franc__ .195233
Yugoslavia, dinar.- .017287
ASIAChinaCliefoo tael
299583
300416
Hankow tool
292187
Shanghai tad
Tientsin tool
305000
Hong Kong dollar
.228906
Mexican dollar- - - - .202500
Tientsin or Pelya
dollar
.205833
Yuan dollar
202083
India, rupee
.268125
Japan, yen
.277812
Singapore(8 8.) dcii. .417500
NORTH AMER.
Canada, dollar
.872343
Cuba, peso
.999268
Mexico, peso (diver). .261600
Newfoundland, doll
.870125
SOUTH AMER.Argentina, peso (gold) .584948
Brazil, milreis
075280
Chile. peso
060250
Uruguay, peso
475833
Colombia. peso
952400
July 4.
$
July 6.
July 7.
July 8.
s
$
.140050 .140010
.139046 .139034
.007283 .007200
.029601 .029593
.192930 .193584
.140010
.138969
.007266
.029595
.193138
$
.140160
.133967
.007233
.029603
.193838
July 5.
3.546750
.016516
.039275
.236623
.006396
.403621
.174750
.051138
.174930
.112333
.032333
.005966
.1181992
HOLI- .181961
.194953
DAY
.017166
3.556666 3.567666 3.582E33
.015883 .015466 .015533
.039285 .039266 .039274
.237171 .237342 .237342
.006403 .006365 .006403
.403657 .403475 .403323
.174500 .174750 .174250
.051096 .051064 .051035
.175323 .175907 .176546
.111750 .112000 .112000
.032700 .032300 .032533
.005970 .005975 .005989
.081207 .081117 .081075
.182546 .182853 .183391
.194992 .195017 .194982
.017000 .016750 .016683
.299583 .299583
.297500 .297500
.288437 .288750
.302500 .302500
.225625 .225937
.200937 .200937
.301041
.298958
.290312
.303958
.226718
.202187
.302500
.300416
.291562
.305833
.227812
.204375
.204166
.200833
.266500
.273875
.408750
.205000
.201666
.267550
.272500
.409375
.206250
.202916
.267500
.271125
.410000
.207916
.204593
.268550
.270250
.411250
.877812 .876562
.999237 .999206
.260500 .264533
.875250 .873750
.876562
.999206
.266333
.874250
.876250
.999206
.266000
.873875
.585635 .585447 .585447 .585447
.075180 .075500 .075440 .074940
.060250 .060250 .060250 .060250
.475833 .475666 .474833 .471666
.952400 .952400 .952400 .952400
Financial Chronicle
180
in New York between 263/i cents and 26% cents an
ounce. Buying and selling exchange on China is
equivalent to buying and selling silver. Japanese
yen continue to fluctuate rather widely and the rate
shows extreme ease, reflecting the highly uncertain
conditions prevailing in Japanese affairs. Yesterday
yen checks were quoted 273',as compared with 273.'
on Friday of last week, with 28% on Friday two weeks
ago, and with par of 49.85. On Thursday the Bank
of India reduced its rate of rediscount from 5% to 4%.
Closing quotations for yen checks yesterday were
273/
8, against 273/ on Friday of last week. Hong
Kong closed at 22%@23 1-16, against 233/s@23 5-16;
2@29%; Manila
Shanghai at 293'1@29%, against 293/
at 49 8, against 49%; Singapore at 413/2, against
423/
8; Bombay at 27 1-16, against 26 15-16, and
Calcutta at _27,1-16, against 26 15-16.
HE following table indicates the amount of gold
bullion in the principal European banks as of
July 7 1932, together with comparisons as of the
corresponding dates in the four previous years:
T
Banks of—
1932.
England- -France a- -Germany bSpain
Italy
Netherlands
Nat. Belg'm
Switzerland.
Sweden
Denmark - Norway__ -
£
.136.965.018
.658.534.348
37.086,750
90.212.000
61,109.000
81,696.600
73.305.000
89.149.000
11,445.000
8.031.000
6.513.000
1931.
£
165.810,946
449,829.541
65,203,400
96,995,000
57..519.000
41,451.000
40,978,000
29,417.000
13,266.000
9,551,000
8.132.000
1930.
£
156,585,454
353,359,871
123.451.000
98,849,000
56,301,000
35,993.000
34,335,000
23,156,000
13,490,000
9,570,000
8.144.000
1929.
£
155.711,707
293,200,445
96,765,600
102,456,000
55,434.000
36,398,000
28,561.000
19,839.000
12,968,000
9,691,000
8.155.000
1928.
£
174.356,917
233,407,815
100,987.600
104,320.000
52,831.000
36,254,000
22,800.000
17,882.000
12,811,000
10,103,000
8.168.000
978,162,887 913,234,325 819.079,752 773.921,332
966.633.245 902.927.430 814.719.386 685,576.540
holdings
of the Bank of France as reported in the new form
a These are the gold
of statement. b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present Year is E4.525.700.
Total week- 1.254.046,116
Prey. week_ 1.260.406.344
The:Railroads—Their Small Service Charge
to the Public.
The railways are one of our largest concentrated
industrial enterprises. In fact, their development
has now reached such huge proportions that they are
to a certain extent handicapped by their size. The
public reads statistics showing that their earnings
amount to billions of dollars a year, and as a consequence the layman is likely to conclude that directly
and indirectly he is paying large amounts in rates
to help make up their earnings.
The railroads are carrying the products and the
commerce of more than 124 million people. The
rates collected to defray their expenses and taxes
and enable them to pay interest and dividends are
divided directly and indirectly among all the people.
When the statistics are reduced to readily comprehensible figures, most persons will be astonished to
find how small is the average amount each inhabitant
of the country pays the railroads, and especially
how small is the amount that each person pays
toward their interest charges and dividends.
During the year 1931 the total earnings of the
Class I railways averaged approximately eleven and
a half million dollars a day. But the payment of
it was divided among 124 million people. Therefore,
the average earnings of all the railways per capita
per day—the average amount they collected in rates
from each individual—were only 9.3 cents.
Railway rates were the lowest in 1916 that they
ever have been. During that year the average cost
of railroad transportation to each person was approximately 9 cents. The increase per person during the past 15 years has therefore only been 0.3
cents a day.
Total freight earnings in 1916 were about 7 cents
a day for each inhabitant. Their total freight earnings in 1931 were 7.2 cents a day for each inhabitant.
July 9 1932
The increase in the average cost of freight transportation to each person has been 0.2 cents a day.
Directly and indirectly each person pays freight
rates upon every conceivable class of commodities—
food, clothing, fuel, building materials, &c. In 1916
the railways for the 7 cents they charged rendered
a service that was equivalent to handling one ton of
freight 9.1 miles daily for each person. During 1931
for the 7.2 cents they charged they rendered a freight
service equivalent to hauling one ton of freight 6.8
miles daily for each person.
The earnings of the railways from the passenger
business in 1916 averaged 1.9 cents daily for each
person—less than the cost of sending a letter by
first class mail—and for this they rendered a service
equivalent to carrying each inhabitant a little more
than nine-tenths of a mile. During 1931 their passenger earnings were 1.2 cents for each inhabitant
of the country. For this charge they rendered a
service equivalent to hauling each person about onehalf a mile.
The net operating income available for dividends
of the railways in 1916 averaged 2.8 cents daily for
each inhabitant. During the past year their net
operating income averaged only 1.1 cents daily for
each inhabitant. In other words, the profit the railways made from all the services rendered by them
amounted daily for each inhabitant of the country
to enough to buy a second class postage stamp or
one stick of chewing gum.
Since the railways have been earning 9.3 cents per
day per capita, and have been able to keep only 2.6
cents of this for their security owners, the question
naturally arises as to what became of the rest of
the money. It took 7.8 cents out of every 9.3 cents
of earnings to pay operating expenses and taxes, and
4.6 cents of this were the wages of employees. In
other. words, while each person in the country paid
2.6 cents a day toward railway dividends, each person in the country paid 7.8 cents a day toward railway wages. In 1916 each person paid 4 cents a day
toward railway wages.
While the contribution of each person toward railway profits has declined 1.7 cents since 1916, the contribution of each person toward railway wages has
increased 3.8 cents a day. This is because the average wages paid by the railways in 1916 were a little
over four million dollars a day, while during 1931
they were $5,740,000 a day.
The railways are passing through one of the most
critical periods of their whole history. The outcome
of the struggle will determine whether they will be
able in the future to render the public the transportation service its welfare requires, and even whether
the railways shall be owned and operated in the
future by private companies or the Government.
If they were allowed to earn the net return to
which the Inter-State Commerce Commission claims
that they are entitled, the actual difference in money
it would make, on the average, to each person would
only be approximately 3.3 cents a day.
The British Economic Conference at Ottawa.
While the statesmen at Lausanne have been struggling to reach an agreement about the vexed questions of reparations and war debts, the interest of
English-speaking peoples, including our own, has
turned to the economic conference of members of the
British Empire which is to meet at Ottawa on July
21. Eight countries—Great Britain, the Irish Free
•
Volume 135
Financial Chronicle
State, Canada, Australia,New Zealand,South Africa,
Rhodesia and India—are to be represented directly,
and it is expected that some of the West Indian colonies may be given an indirect voice through the medium of the British Colonial Office. The British delegation, comprising a number of Cabinet members as
well as an array of experts, is to be headed by Stanley Baldwin, and the other States will send members of their Governments. President De Valera of
the Irish Free State, who had been expected, has
announced that he will not attend, his absence being due, presumably, to the sharp controversy which
has developed between his Government and that of
Great Britain over the payment of certain annuities to which the British Government lays claim.
Canada is to act as host to the Conference, and
Premier Bennett will preside at the formal sessions,
but the proceedings, it has been stated, will be
secret, and the conclusions of the Conference will
not be fully known until the close of the sessions,
which are expected to continue for four or five weeks.
A conference which, like this, represents about
one-fourth of the world's population and the largest
aggregation of economic and political interests to
be found under any one allegiance, would in any case
have a universal importance, but its importance is
increased by the peculiar circumstances under which
the Conference meets and the issue which stands
out most prominently in the long list of questions
with which it will be asked to deal. For the first
time in history, a meeting of representatives of the
British Commonwealth will be faced by the fact
that Great Britain has gone off the gold standard,
and has abandoned free trade and gone over to protection. The existence of a world depression in
business, now approaching the end of its third year,
is another factor for which the history of imperial
conferences affords no precedent. The main issue
before the Ottawa delegates, accordingly, in whatever form it may be presented, is clearly seen to be
that of tariffs, with questions of currency and
monetary standards occupying second place, at the
same time that anything that is done or recommended must take account of a world situation which
is bound to be widely affected by any fundamental
change in Imperial policy.
Stripped of technicalities and particularistic ambitions, the main problem before the Ottawa Conference will be how best to secure, within the Empire, such reciprocal advantages in trade as
will
widen and deepen the market for Imperial products
and manufactures, but which at the same time will
not check the natural and proper growth of industry
or trade in any Dominion or colony or in Great
Britain itself, or interfere with the Imperial avenues
through which trade would most naturally go, or
precipitate controversies or reprisals which would
restrict or close foreign markets. Great Britain,
for example, is anxious to find within the Empire,
and particularly in Canada, a larger outlet for its
manufactures, but without admitting Dominion products, especially wheat, in such quantities or on
such terms as would discourage British production,
interfere with the employment of British labor, or
raise the cost of food. Canada and Australia, on
the other hand, while willing enough to have the
market of Great Britain absorb as much as possible
of their wheat or meat products, are not willing to
have foreign markets for their products of any kind
restricted or their own developing manufactures
181
checked. It is, in short, the old problem of Imperial
tariff preference, but complicated now, as it has not
been in previous discussions of the subject, by the
new protective policy of Great Britain.
A review of some of the proposals and demands
made in advance of the meeting of the Conference
will show both the form that the problem takes and
the complications it involves. Stanley Baldwin,
speaking on the subject of the Conference in the
House of Commons on June 16, remarked that "the
general objective" of the Government at Ottawa was
"the nearest practical approach to reciprocal free
trade within the Empire," and added that "the
Dominions must not think that we are not grateful
for the preferences they have already given us;"
but, he continued, referring to the recent act imposing import duties, "they must not fail to realize
what a tremendous thing this free entry we have
given them is." Moreover, some of the Dominions,
he said, "will be asked at Ottawa to consider if they
have not gone a little too fast in industrial development, both for their own good and for that of the
Empire as a whole." The correspondent of the New
York "Times" reported that Mr. Baldwin's remarks
made a sensation in the House, and were taken "as
the first intimation from the Government that it
hal; no intention of ignoring the principle of quid pro
quo when dealing with the Dominions." The Liberal
point of view was represented by Sir Stafford Cripps,
who retorted to Mr. Baldwin that "we want no commitments at Ottawa which will damage our trade
with the United States, Argentina and the Scandinavian countries. We don't want to penalize our
best customers in order to divert trade into certain
national racial channels."
Whether the trade between Canada and the United
States, or Canada and other foreign countries, can
be to any great extent diverted into exclusively Empire channels has been actively discussed, occasionally with some asperity. Professor F. R. Scott of
McGill University, Montreal, writing in the last
number of the "Foreign Affairs" quarterly, emphasizes the extent to which Canada has been becoming
independent of the Empire in trade matters. Canada, he says, draws 76% of her imports to-day from
foreign countries, and sends to them 64% of her exports. "Her major economic interests lie, naturally
enough, with the United States. Fifty-five per cent
of Canada's foreign trade and 60% of her foreign investments are with her southern neighbor, while
on the other side of the picture the United States
has looked upon Canada (until recent tariff changes)
as her 'best customer' and has placed some 25% of
her total foreign investment there." On the other
hand, W. N. Birks, Vice-President of the Associated
Chambers of Commerce,speaking recently before the
Senate Committee on Trade and Commerce at
Ottawa, declared that "a deal between brethren of
the Empire, with all the cards on the table, is what
we want. Ottawa has approached Washington
eleven different times since 1865, always to be flatly
turned down. Men of business in this country have
found it impossible to deal with our American
cousins. A commodity of our manufacture may be
ordered by some one in the States. When it is
shipped it may be held at the border twenty-four
hours, and by a stroke of the pen in Washington
the tariff against it may be increased 50%. There
is no stability in that. It is impossible to do business under such conditions."
182
Financial Chronicle
A delegation of British cotton manufacturers
which had just returned from Canada laid before
J. H. Thomas, Secretary of State for the Dominions,
on July 2 a report which declared that the complicated Canadian tariff was "an intolerable hindrance
to clear and final intra-Empire agreement," and
suggested, according to the Canadian Press, that "a
2 to 8%, with slight additions to meet
tariff of 71/
other burdens on the Canadian industry, would be
adequate to protect Canadian manufacturers from
British manufacturers, while a stated list of certain
classes of cloth should be allowed into Canada free
of duty. In each case the Canadian tariff on foreign
cotton goods should be 25% higher than against
British cotton." William Watson, Chairman of the
New Industries Home and Overseas Committee, has
pointed out in a recent speech in London that while
an American manufacturer who locates a small assembly plant in Canada can secure the British
market by a 25% labor content in his product, a 50%
labor content would be necessary if he located his
plant in Great Britain, the difference representing
the discrimination against British manufactures.
The powerful Federation of British Industries calls
for action at Ottawa that shall make the Empire
economically self-sufficient through "strong trade
barriers against foreign nations and liberal advantages for Empire goods," and suggests the establishment of zones within the Empire to offset
such disadvantages as excessive freight charges due
to great distances. The Federation also proposes a
"British Empire currency," based or not upon gold
as might be found proper, but uniform throughout
the Empire and centrally controlled. This latter
proposal was further developed on Thursday jointly
by the Federation and the General Council of the
Trade Union Congress, by an appeal for the establishment of a "sterling area" within the Empire,
with the object, it was urged, of insuring greater stability of prices and other conditions favorable to
intra-Imperial trade. The idea of an Imperial currency, it should be said, while advanced in several
quarters as one of the subjects on which the Conference should act, appears to be more generally regarded as visionary.
Such suggestions show clearly enough the diverse
views which the Ottawa Conference will be called
upon to adjust, and the very great difficulties inherent in any attempt to harmonize the industrial
and commercial interests of countries widely scattered and possessing very unequal measures of economic development. Liberal party opinion in both
Great Britain and Canada, still pretty staunch in
its adherence to free trade, is reported as willing
that the Conference should fail, the thought of
failure being the more welcome in Canada because
success would redound to the political credit of
Premier Bennett, the Conservative leader to whom
the original suggestion of the Conference is due.
The broad significance of the Conference, if it should
succeed, lies in the attempt to create a great protected trade area, or several such areas acting conjointly, within which trade would be relatively free
and preferential, while trade without, whether import or export, would be subject to discriminating
tariffs or other regulations. One is reminded at once
of the Briand scheme of a United States of Europe,
of the plan of an Austro-German customs union
which other countries might also join, of the proposed customs federation of the Danubian States,
July 9 1932
and of Japan's evident purpose to control for its
own advantage the trade of Manchuria. Whatever
"natural" reasons may seem to support any of these
proposals, it is impossible to see how any elaborate
system of high protective tariffs, whether preferential or not, can improve the world trade situation.
To a very large extent, the economic sickness from
which the world now suffers is due to the serious,
and in many cases well-nigh insuperable, impediments to international trade which high tariffs have
caused. If the States of the British Empire are to
emerge from the Ottawa Conference with better
economic prospects than were to be seen when they
entered it, it will be because their representatives
will have found a way of freeing a very large pro:
portion of the world's industry and trade from their
present shackles, and not by another juggling of
preferences and discriminations. As the "Manchester Guardian" remarked on Thursday, a war of
tariffs and quotas, with the extreme national antagonisms which it entails, may be in its way as deadly
as war on the battlefield, and "it is for a demonstration above all of a change of spirit that thoughtful
people are looking to Ottawa."
A Lesson in Perpetual Charters.
Because it was one of the cities early to introduce the operation of horse cars upon streets for
local passenger traffic, Philadelphia is now suffering the penalty of being a pioneer in the street railway field.
Seventy-eight years ago, when the Pennsylvania
Constitution was lax, the first charter for transportation by horse cars in the Quaker City was
granted, and during the next five years 18 additional
franchises were given by the Legislature, there having been a scramble on the part of enterprising promoters to cover the newly-opened opportunities for
profit.
Such projects were largely experimental, and,
naturally, the lawmakers did not hesitate to bestow
great privileges in order to encourage capitalists to
venture to invest in the new undertaking. One of
the inducements was making the life of a street railway charter 999 years, which is regarded as perpetual, covering more than 30 generations. This
first group of charters and others which soon followed cover many of the principal streets of Philadelphia, and all the other improvements in surface
railways which progress has developed, including
cables operated by steam power and trolleys utilizing electric current, now rest upon the rights of the
original companies which are known as the underHers, numbering in all over 50.
It is a singular fact that the horse cars drove horsedrawn omnibuses out of business, and that buses,
now propelled by gasoline motors, have become one
of the present-day competitors of the companies
holding tenaciously to their ancient grants.
But inventions backed by enterprising capitalists
have brought other competitors, including electric
and subway roads and many thousands of privately
owned automobiles which have free use of the city's
streets. The municipality, itself, has invested about
$140,000,000 of public funds in local elevated and
subway railways, which are temporarily leased at
nominal rentals to the privately-owned operating
company known as the Philadelphia Rapid Transit
Co., which is in full control of the underliers.
Volume 135
Financial Chronicle
Now that the city's credit is curtailed by the
unprecedented happenings of recent years, the great
debts incurred through construction of elevated and
subway roads tend to block municipal improvements
in other lines, and all efforts thus far made to
remove the incubus of the underliers have proved
abortive.
Owners of shares of the half-hundred underlying
companies have rejected all plans tendered for surrender of their rights, even though most of the companies have little, if any, tangible property.
On some streets covered by ancient franchizes
tracks have been removed. On others, while tracks
remain in position, overhead trolley wires have been
removed, and no cars have been operated over the
rails for years, which illustrates the depreciating
value of the underlying franchises as new methods
of transportation arise.
The burden of paying high rentals under long
leases for obsolete tracks falls upon the Philadelphia
Rapid Transit Co., the operating corporation, which
pays no dividends upon either common or preferred
shares. This burden is naturally passed along to
the riding public, and is represented in an advance
of fares above the old fare for five cents. The present
fare is 8 cents, or four tokens for 30 cents, with some
free transfers, exchanges costing 3 cents, and exchanges also to buses which are operated by the
P. R. T. For some years the P. R. T. has operated
taxicabs, a modern method of urban transportation
which serves still further to depreciate the value of
surface railway franchises.
As the municipality of Philadelphia has been unable to clear the transit situation by negotiations,
receivers were appointed by a local court for the
P. R. T., the court ousting the Mitten Management
and naming six directors to take charge of the entire
transit system in behalf of the city. The new directors retained Dr. A. A. Mitten, son of former President Thomas E. Mitten, and many of the old operating force to continue the operation of the lines.
Numerous wealthy estates are largely interested
in the underliers. In their behalf some of the best
legal talent in Pennsylvania has been employed to
protect their position, which means that if a sale
is to be made the owners of the underlying franchises
will endeavor to exact a high price for their shares,
believing that the high rentals paid under.the perpetual leases are an obstacle to progress which the
city will be impelled to remove. The rentals are proportionately high because on many of the shares of
the underliers only a small amount of the par value
has ever been paid in.
Under the court proceedings it was suggested that
the city should purchase all of the underliers for
-470,000,000. A few years ago a board of engineers
named $149,000,000 as a fair price to be paid by the
city for the entire P. R. T. system apart from the
subways and Frankford elevated road, which were
built with public funds, but are operated by the
P. R. T. in conjunction with its own and its underlying leased lines.
Ordinarily, a subject of such importance to the
taxpayers, who must foot the bill, would be handled
by the Mayor and City Council, who are elected by
the citizens, but the court proceeding removes the
controversy to another forum in which the potency
of vox populi may be merely an echo. If undisturbed
the earliest of the street railway franchises will not
expire until A. D. 2853, or 921 years hence.
183
Thus it is that the sins of the city fathers and
legislators of many years ago are now visited upon
the second and third generation of Philadelphians.
teaching a valuable lesson to younger cities to avoid
perpetual tangling alliances.
The Course of the Bond Market.
An improvement in sentiment in the bond market was
noted over the extended week-end due in a large measure to
the developments at Lausanne, which directed much attention to the foreign section of the list. These issues enjoyed
an unusually active market with prices being marked up
rapidly. This upswing in the foreign section imparted some
strength to other sections, and, on the whole, the bond
market acted well during the four trading days of last week.
Moody's price index for 120 domestic bonds advanced to
62.87 on Friday, as compared with 62.48 a week ago and
63.27 two weeks ago.
The long term obligations of the United States Government were irregular last week while the short term loans
continued to be in good demand. The new issues are still
selling at abnormally low yields; the present yields on maturities up to Feb. 1 1933, range between 0 and .21%. For
the past two weeks the purchase of Government bonds
by the Reserve System have amounted to 71 million dollars.
It would appear, therefore, that the Federal Reserve banks
have not influenced these prices as much as they did several
weeks ago. On Thursday the House passed the Garner
Relief Bill which would require huge new financing, if enacted
into a law, but the feeling is that the President will veto it.
The price index for eight long-term Treasury bonds finished
the week on Friday at a level slightly higher than a week ago.
The index on Friday was 98.79 as compared with 98.52 a
week ago and 98.44 two weeks ago.
The railroad bond group was fairly steady to firm, during
the week, with fluctuations confined to a few points in most
cases. However, there were several issues, which were
exceptionsItojtheirulejandlwhichImoved about violently.
This was particularly noticeable'lin,"NickelPlate" 6s, 1932,
which again displayed their highly speculative and volatile
quality by rallying from 29M on Tuesday to 45 on Thursday.
Other bonds which fluctuatedlwidely, although inTnot quite
so pronounced a manner, were the "St. Paul"1,5s,T1975 and
the "Rock Island" 4s, 1934 and 4s,1952. Moody's price
index for 40 railroad bonds on Friday was 54.86, as compared with 54.73 a week ago and 55.61 two weeks ago.
The bonds of public utility companies in the early part of
the week displayed sinking tendencies throughout the entire
list. Movements on the whole, however, were small and
prices fell slowly. On Wednesday most issues responded
moderately to the general upward swing, although here
again no one bond or particular group showed outstanding
strength. The price index for this group at the end of the
week was 69.40 as compared with 69.13 a week ago and
69.59 two weeks ago.
Last week the industrial bond market, in sympathy with
the foreign section, improved slightly over the levels of a
week ago. The obligations of packing companies continued
strong, reflecting the advance in hog prices during the past
few weeks. Weakness was exhibited by the New York
Trap Rock 6s and Childs Co. 5s, both of which sold at
new low prices. As has been the case recently, oil bonds
were generally firm with special strength displayed y the
Shell Union Oil issues, which staged a spirited advance
during the week. Another issue to rise sharply was Remington Arms Co. 6s and Ois which sold up about 5 points
for the week. The price index for the industrial group on
Friday was 65.96, as compared with 65.12 a week ago, and
66.04 two weeks ago.
The past week the foreign section of the bond market
received the lion's share of the investors' attention. Each
day there were rumors that England, France and Germany
would come:to:an agreement on the reparatidai=lem at
Financial Chronicle
184
Lausanne. Practically everyone has concluded that the
reparations question seems to be definitely settled; that
such payments are ended. This has been an extremely
important economic problem to world business and the
rumors of a solution set the ball rolling in the foreign section
of the bond market. Tuesday and Wednesday all foreign
issues, and especially the German bonds, were up spectacularly, Thursday saw some profit-taking but the sharp advance was resumed on Friday. Prices on Friday were well
above those of a week ago. German 5s,1965, on Friday
sold at 473i, a gain of 8 points, Argentine 6s, 1957, sold at
46, a gain of 8 points, Prussia 6s, 1952, sold at 34, a gain of
MOODY'S BOND YIELD AVERAGES.
(Based on Individual Closing Priced.)
MOODY'S BOND PRICES.*
(Based on Average Yields.)
120 Domestics by Ratings.
Baa.
RR.
90.83 74.67 58.73
90.69 74.67 58.80
90.41 74.77 56.66
90.13 74.77 58.52
Exchange Closed.
43.58
43.46
43.46
43.06
54.86
55.04
55.23
54.73
69.40
69.31
69.31
69.31
0=00
90.13 74.77
90.27 75.82
90.55 76.78
90.13 76.35
89.04 73.45
86.64 73.55
89.45 77.00
92.10 78.88
93.26 80.95
93.85 81.90
94.58 82.62
92.82 80.95
92.68 79.68
94.58 82.50
96.70 84.35
96.70 84.72
97.62 85.74
95.63 83.48
94.29 82.02
93.70 81.54
91.67 79.80
91.81 80.49
92.25 81.07
93.40 82.99
93.70 82.67
97.78 85.99
85.61 71.38
106.96 101.64
87.96 76.03
58.52
59.36
59.94
59.80
58.04
56.12
58.52
60.31
63.19
65.62
67.07
66.64
67.07
71.29
73.45
73.85
75.29
73.35
72.26
71.77
69.77
70.62
70.52
72.06
73.15
75.50
54.43
92.97
59.87
43.02
43.62
44.25
43.02
41.03
38.88
41.44
42.90
45.46
47.44
49.22
47.73
45.15
50.80
55.42
56.58
59.80
58.68
57.57
58.32
55.55
55.73
55.99
57.17
57.30
60.16
37.94
78.55
42 58
54.73
55.61
56.32
55.61
52.47
49.53
52.24
54.55
57.64
59.94
62.56
60.82
59.29
64.80
70.15
71.19
73.85
72.95
71.67
71.77
69.31
70.15
70.71
72.06
72.16
74.46
47.58
95.18
53.22
69.13
69.59
70.52
69.68
68.58 .
66.73
71.09
72.95
74.46
75.92
76.68
74.98
71.87
77.55
80.72
81.07
83.35
81.42
79.68
79.56
77.11
77.44
77.66
80.14
61.54
83.60
65.71
96.85
73.65
106.42
99.20
87.89
71.67
87.96
96.23
NI,^04000.1,0Q000C0t-WV00004.,
.00C0V00-*
.0clecOWNWerm.S.Com0.00,.01,4,000t,
uied,e0ui 0iwmicciVi440Dc6C4N60.6..,
:00i0Vi .
6
0,
40 ,
0,
0000c0.nt•ts0.NC-t-nt.Nnt-nt-0.t.V.000 00
ins AS
00 01
0.1. 72
Od 00
(17 A,
no 111
V
0
Aaa.
Aa.
A.
120 Domes ics
by Groups.
0.0,,t—.N00.0000t-N00,
.0N0.0000000 0 v
erNo.,
000040.0044 00000.0000v ,
.
,00MNV-000 00 0
mMWMOONM000001,
..
,V01,
0eVCANN,
V.Ont-MN
0 .,
t-IcOO W
C
All
120
DomesSc.
t,
a.-0,00X
000C...1. 0
C4NN01..
000000
1932
Daily
Averages.
July 9 1932
934 Points, and Japanese 53's, 1965, on Friday sold at 503,
a gain of 7 points for the week. Moody's bond yield averages for 40 foreign bonds were 12.13% on Friday, as compared with 13.75% a week before, and 13.92% two weeks
before.
The municipal market was generally weaker, with high
yield issues showing definite declines. The New York City
half-year tax collections were below those of last year by
$19,000,000. Other reports were generally discouraging to
this group.
Moody's computed bond prices and bond yield averages
are shown in the tables below:
P.U. Indus.
All
120
1932
Daily Domes
Averages. tic.
120 Domestics by Ratings.
Aaa.
A.
An.
120 Domestics
by Groups.
40
ForP.U. Indus. alms.
RR.
9.16
9.13
9.10
9.18
7.24
7.25
7.25
7.25
7.63
7.66
7.72
7.74
12.13
12.43
12.44
13.09
9.18
9.04
8.93
9.04
9.56
10.10
9.60
9.21
8.73
8.40
8.05
8.28
8.49
7.77
7.16
7.05
6.78
6.87
7.00
6.99
7.25
7.16
7.10
6.96
6.95
6.72
10.49
5.06
9.43
7.27
7.22
7.12
7.21
7.33
7.54
7.06
6.87
6.72
6.58
6.50
6.67
6.98
6.43
6.15
6.12
5.93
6.09
6.24
6.25
6.47
8.44
6.42
6.20
8.08
5.91
7.66
4.95
6.81
7.73
7.62
7.60
7.67
7.88
7.95
7.71
7.55
7.24
7.08
7.02
7.07
7.03
6.80
6.71
6.67
6.56
6.81
6.89
6.92
7.11
7.10
7.09
7.02
7.05
6.58
8.11
5.38
7.90
13.75
13.92
14.30
14.75
15.29
15.28
14.82
14.03
14.10
13.70
13.31
13.39
13.23
12.77
12.66
12.62
12.31
12.55
12.82
12.86
13.28
13.00
18.22
13.12
13.44
12.29
15.83
6.57
16.58
5.57
4.99
5.74
7.24
4 01
A 112
A
90
A 00
1
Baa.
000,1
8.06
7.96
7.88
7.98
8.26
8.53
8.12
7.87
7.56
7.35
7.19
7.34
7.50
7.00
6.68
6.61
6.43
6.59
6.71
6.72
6.95
6.90
6.87
6.73
6.69
8.41
8.74
5.17
8.05
5.41
5.40
5.38
5.41
5.49
5.67
5.46
5.27
5.19
5.15
5.10
5.22
5.23
6.10
4.96
4.96
4.90
5.03
5.12
5.16
5.30
5.29
5.26
5.18
5.16
4.89
5.75
4.34
5.57
6.69
6.59
6.50
6.54
6.82
6.81
6.48
6.31
6.13
6.05
5.99
6.13
6.24
6.00
5.85
5.82
5.74
5.92
6.04
6.08
6.23
6.17
6.12
5.96
5.97
5.72
703
4.65
6.57
"cc.Pc°74:
474PPP”*P:44
5"""""°"
aiacoloco...kolocomob-4woo.o.o.ma,o,
WW01C0W.0001404.WMA.00,
..-,
11.53
11.38
11.23
11.63
12.05
12.67
11.94
11.56
10.95
10.52
10.16
10.46
11.02
9.86
9.07
8.89
8.42
8.58
8.74
8.63
9.05
9.02
8.98
8.80
8.78
8.37
12.96
6.34
11.64
5.43
4.37
4.80
7.00
A Ilk
A AR
A SA
A 01
1....
June 24_.
17._
10_.
3._
May 28._
Si__
14-7-Apr. 29-22-15-8- 1_ _
Mar.24-18-11-4..
Feb. 26-19-11-5.Jan. 29-22-15._
Low 1932
High 1932
Low 1931
High 1931
Yr.Ago
July 8 '31
2 Yrs.Ago
r,... v .0/1
0.4.40‘00.4N0W0
a
11.39
11.42
11.42
11.52
0
Weekly5.36
6.70
July 8-- 8.01
6.70
7_ _ 8.01
5.37
6.69
6_ _ 8.02
5.39
5.41
6.69
5._ 8.06
4__ }Stock Exchange Clos
•
D
C
007ei©
Week!
July 8
7
6
5
4
2
1
June 24
17
10
3
May 28
21
14
7
Apr. 29
22
15
8
1
Mar. 24
18
11
4
Feb. 28
19
11
5
Jan. 29
22
15
High 1932
Low 1932
High 1931
Low 1931
Year AgoJuly 8 1931
. 2 Years Ago-
*No(e.-These prices are computed from average yields on the basis of one "Ideal" bond (4M% coupon, ma uring In 31 years) and do not purport to show el her the
average level or the average movement of actual price quotations. They merely serve to Illustrate in a more comprehensive way the relative levels and the relative movement of yield averages, the latter being the truer. picture of the bond market
The New Capital Flotations During the Month of June and for
the Half Year Ended June 30
In presenting our compilations of the new financing to-day
for the month of June and the half year, the same comment is to be made as in preceding months, namely, that
corporate financing is down close to the vanishing point,
that municipal financing is also on a greatly reduced scale,
and that new financing by the United States Government
is now on a greater scale and represents larger new debt
creation than all other sources of new capital issues combined. The shrinking in the volume of new capital issues
brolight out in the ordinary way is of course easily explained. It is due to the fact that general investment and
market conditions have continued highly unfavorable, making
it risky business to undertake the floating of new securities,
even those of a very choice type. In addition, an entirely
new factor has within recent periods entered the situation
which cannot be left out of consideration in any study of
new financing and the appeals made to the investment
market. We mean that as just noted, the Federal Government has become such a constant borrower and has been
borrowing so repeatedly and on such a large scale that
ordinary financing has really become subordinate to that of
Government financing. In a measure, also, the Government has really been pre-empting the ground and certainly
it has been occupying the investment field to the disadvantage of ordinary financing, a matter of no small consequence, especially in view of the fact that owing to the
prevailing loss of confidence in security values generally,
the demand on the part of the investing public has been
almost entirely for the highest and best type of security
investment-and obviously nothing could be higher or
better than a U. S. obligation, though that does not mean
that such an obligation may not suffer sharp depreciation
on occasions, as the investor has learnt from sad experience.
At all events during all recent months U. S. Government
financing has been of far larger magnitude than the ordinary
financing as represented by the borrowings of corporations,
municipalities, farm loan emissions and the like. Therefore
U. S. financing should 'receive primary attention and we
now pursue the practice of dealing with it before dealing
with our compilations relating to ordinary financing. During June the U. S. Treasury disposed of quite considerable
new financing. In any study of new financing the important
point is to know how much of the financing represents distinctly new capital, as distinguished from issues made to
provide for the taking up and retiring of issues already
outstanding, and which are to be replaced by the new
issues. And this is particularly true with reference to the
placing of U. S. Government securities. Treasury bills are
all the time maturing, having a life usually for only 90 to
93 days, and have to be replaced with other issues, while
Treasury certificates of indebtedness are another form of
short term borrowing which has to be periodically renewed
without swelling the outstanding aggregate of indebtedness.
So long as the Government was showing huge budget surpluses and the Government indebtedness was as a result
being steadily and largely reduced, the matter was of little
Volume 135
Financial Chronicle
185
consequence, but now that there is a budget deficit running this new financing by the Federal Government represents
in excess of $2,000,000,000 a year, it is important to know new issues, that is, new appeals to the investment market,
the extent to which the Government itself is obliged to have and from the foregoing analysis it appears that $322,003,000
recourse to the investment and money markets. During of the U. S. Government issues brought out in January
June, as it happens, the greater part of the Government represented new indebtedness and $398,146,000 more in
issues represented additions to the public debt.
March represented new indebtedness, besides $585,056,600
more in April and 65,880,800 in June, altogether making
New Treasury Offerings During the Month of June 1932.
On June 5 1932 Acting Secretary of the Treasury Ballan- a grand aggregate of $1,771,086,400. Turning now to our
tine offered in the amount of $750,000,000 or thereabouts own totals of new financing by corporations, municipalities,
two new issues of Treasury obligations. The first (series &c.,this is found to be far in excess of our own total for the
A-1935) comprised an issue of 3% Treasury notes totaling six months to June 30. Our total of new capital issues
approximately $400,000,000, and maturing in three years. for the six months of 1932 is no more than 94,059,842.
The second (Series TJ-1933) consisted of an issue of 13/2% To the extent only that the U. S. Government issues repreTreasury certificates of indebtedness amounting to approxi- sent actually new debt, rather than the taking up of outmately $350,000,000 and maturing in one year. Both the standing issues about to mature, can such issues be connotes and the certificates are dated and bear interest from sidered additions to the Government debt. Yet, the amount
June 15 1932, the certificates maturing June 15 1933 and is found to be $1,771,086,400, as we see, or almost 900 million
dollars in excess of the new issues in the ordinary way.
the notes becoming due June 15 1935.
Our own compilations, as in other months, are very inTotal subscriptions received were $2,797,377,400, of which
$1,653,814,000 was for the one-year Treasury certificates, clusive and embrace the stock, bond and note issues by corand $1,143,563,400 was for the three-year notes. The porations, by holding,investment and trading companies and
total amount of bids accepted for the 1
or one-year by States and municipalities, foreign and domestic, and also
Treasury certificates, was $373,856,500, and for the 3%, farm loan emissions-in fact, everything except the obligaor three-year Treasury notes, the total amount of bids tions of the U. S. Government. The grand total of the
accepted was $416,602,800. Both issues were offered at par. offerings of securities in this country under these various
The amount raised for refunding through the sale of the heads for the month of June aggregated only $142,206,468,
two issues was $324,578,500. The remaining $465,880,800 which compares with $122,862,269 in May,with $142,319,232
in April, and with $190,019,625 in March, but with only
represents an addition to the existing public debt.
A new issue of 91-day Treasury bills was offered by $94,497,344 in February, though with $193,938,800 in
Mr. Mills on June 22 1932 in the amount of $100,000,000 January. How small the new financing the present year
or thereabouts. The bills were dated June 29 1932 and will is appears when we contrast the June total for 1932, at
mature Sept. 28 1932. The total amount applied for was $142,206,468, with earlier years and find that in June 1931
$292,881,000. The total amount of bids accepted was the new capital issues totaled $402,324,311, in June 1930
$100,466,000. The average price of the Treasury bills was $780,568,030, in June 1929 $802,194,350, and in June 1928
99.897, the average rate on a bank discount basis being $1,037,890,061.
about 0.41%. Issued to replace maturing bills.
Corporate financing during June comprised nothing
In the following we show all the Treasury financing back more than the offering in the aggregate of $29,340,000 long
to the first of the year:
and short term bonds and notes, and this combined with a
ITi'D S'I'tTES TREASURY FINANCING DURING FIRST SIX MONTHS
farm loan issue of $30,000,000 and the placing of $82,866,468
OF 1932.
of State and municipal obligations, raising the amount to
Dale
Amount
Amount
$142,206,468,
comprised the whole total of ordinary financOffered. Dated.
Due.
Applied for.
Accepted.
Price.
Yield.
ing
month.
for
the
On the other hand, as appears from our
Jan. 7 Jan. 13 91 days
$169,337,000 $50,17E,000 Average 99.272.
2.875%
Jan. 17 Jan. 25 93 days
191,581,000
50,937,000 Average 99.358 *2.40%
analysis above, Government financing totals for the month
Jan. 25 Feb. 1 6 months 395,938,500 227,631.000
3.125%
100
Jan. 25 Feb. 1 1 year
250,148,000 144,372,000
100
3.75%
$890,925,200.
Jan. 31 Feb. 8 93 days
196,873,000
76,399,000 Average 90.314 •2.85%
Feb. 7 Feb. 15 93 days
211,872,000
75,689,000 Average 99.287.
Continuing further with our analysis of the limited
2.76%
Feb. 16 Feb. 24 91 days
198,183,000
62.851,000 Average 99.311 *2.71%
Feb. 24 Mar. 291 days
292,984,000 101,412,000 Average 99.369 02.50%
volume
of corporate offerings announced during June, we
Mar. 5 Mar. 15 1 year
a28,000,000 a28,000,000
100
2.00%
Mar. 6 Mar. 15 7 months 952,819,500 333,492,500
109
observe
that
3.125%
public utility issues, with $19,888,000,accounted
Mar. 6 Mar. 15 1 year
2,450,608,000 680,653,500
100
3.75%
Mar.23 Mar. 30 91 days
360,198.000 102,169,000 Average 99.474.
for the bulk of the corporate total, which, as already stated
2.08%
Apr. 7 Apr. 13 91 days
399,374,000
76,200,000 Average 99.735 *1.05%
Apr. 14 Apr. 20 91 days
289,740,000
75,600,000 Average 99.843 *0.62%
was only $29,340,000. The public utility total of $19,Apr. 21 Apr. 27 91 days
241,451,000
51,550,000 Average 99.841 *0.83%
Apr. 25 May 2 1 year
1,699,868,000 239,197,000
100
2.00%
888,000
for June compares with $22,030,800 shown in May.
Apr. 25 May 2 2 years 2,498,428,700 244,234,600
100
3.00%
May 4 May 11 91 days
351,661,000
76,744,000 Average 99.829.0.68%
Financing
for the account of railroads amounted to $9,327,000
May 11 May 18 91 days
395,089,000
76,000,000 Average 99.893 *0.43%
May 18 May 25 91 days
334,818,000
60,050,000 Average 99.927 *0.29%
in
June,
whereas
in May there were no railroad offerings of
May 24 June
91 days
298,503,000 100,200,000 Average 99.919 *9.32%
June 5 June 15 1 year
1,653,814,000 373,856,500
100
1.50%
any kind. Industrial and miscellaneous flotations totaled
June 5 June 15 3 years 1,143.563,400 416,602,800
100
3.00%
June 22 June 2001 davx
202 RRI 11011 inn 450 am Av..... 00 R07 .0 II at
only $125,000 during June as against the equally diminutive
• Average rate on a bank discount basis. a Approximate.
total of $200,000 offered during May.
USE OF FUNDS.
Of the total corporate offerings of all kinds during June
Date
Type of
for amount of $29,340,000, long-term bonds and notes
Total Amount
New
Offered.
Security.
'
Accepted.
Refunding. Indebtedness.
comprised $13,871,000, while short-term bonds and notes
Jan. 7
Treasury bills
$50,175,000 850,175,000
Jan. 17
Treasury bills
aggregated $15,469,000. During June there were no stock
50,937,000
50,937,000
Jan. 25
3H % Treasury etre. 227,631,000 1 50,000,000 $322,003,000
Jan. 21
3% Treasury Ws. 144,372,000 J
offerings of any kind. The portion of the month's financing
Jan. 31
Treasury bills
76,399,000
76,399,000
Treasury bills
Feb. 7
raised for refunding purposes was $25,230,500, or over
75,689,000
75,689,000
Treasury bills
Feb. 16
62,851,000
62,851,000
Treasury bills
Feb. 24
10 ,412,000 101,412,000
80% of the total. In May the refunding portion was $15,2% Treasury etre.
Mar. 5
*28,000,000
*18.000.000
Mar. 6
3% Treasury Ws. 333,492,500 1 624,000,000 370,148,000
000,000 or 67%; in April it was $33,124,000 or 68%; in
33% Treasury etre. 680,853,500 f
Mar. 6
Treasury bills
Mar. 23
March it was $9,097,320 or 15%;in February it was $5,688,102,169.000 102,169,000
Treasury
bills
Apr. 7
76,200,000
50,175,000
26,025,000
Treasury bills
Apr. 14
000,
75,600,000
or 12%, and in January only $1,500,000 or slightly
75,600,000
Treasury bills
Apr. 21
51,550,000
51.550,000
Apr. 25
2% Treasury ctfe.
over 3%. In June 1931 the amount for refunding was
239,197,000
239,197,000
3% Treasury notes
Apr. 25
244,234,800
244,234,600
Treasury bills
May 4
76.744,000
$121,575,000 or about 49% of the month's total. The
76,744,000
Treasury bills
May 11
75,000.000
75,000,000
May 18
Treasury bills
60,050.000
$25,230,500 raised for refunding in June (1932) comprised
60,050,000
May 24
Treasury bills
100,200,000 100,200,000
1A % Treasury Ws. 373.856,5001 324,578,500 465,880.800
June 5
$9,806,500 new long-term to refund existing long-term and
3% Treasury notes
June 5
416,602,800 f
June 22
'treasury bills
100,466.000 100.466.000
$15,424,000 new short-term to refund existing short-term
•Approximate.
No foreign securities of any description were offered in
The point of importance with reference to these U. S. this country during June. It was announced during the
Treasury issues is, as already stated, the extent to which month, however, that payment by the Argentine Govern-
186
Financial Chronicle
ment of an installment of $1,000,000 on its $10,000,000
bank loan obtained here, was expected to occur shortly.
The balance of $9,000,000 will be extended in accordance
with an agreement reached by Brown Brothers, Harriman
& Co. of New York, and the Argentine Government in
April.
Corporate financing during June was confined to a few
small issues, the largest of which were: $9,327,000 St.
Louis Southwestern Railway gen. & ref. mtge. 5s 1990,
issued at par; $7,424,000 Staten Island Edison Corp. ref.
& imp. mtge. 6s due June 14 1933, issued at 99 to yield
7.05%; $4,000,000 California-Oregon Power Co.. ref. mtge.
Ois, 1942, offered at 93 to yield 7.50%, and $4,000,000
Wisconsin Valley Electric Co., one-year 6% notes, due
June 15 1933, offered at 99 to yield 7.05%. Included in the
month's financing was an offering of $30,000,000 Federal
Intermediate Credit Banks 3% collateral trust debentures,
dated June 15 1932, and due in three, six, nine and 12
months, offered at price on application.
There was only one issue marketed during June containlag
a convertible feature, namely:
BONDS WITH CONVERTIBLE FEATURES.
$4,000,000 The California Oregon Power Co. ref. mtge. 630, 1242•
(Each 11,000 of bonds convertible into a like amount of ref.
mtge. 68, due 1962 and $50 in cash on or before May 1 1941
and up to 10 days prior to redemption.)
There were no new fixed investment trust offerings during
the month of June.
THE RESULTS FOR THE HALF YEAR.
feature of the compilation of new capital issues
chief
The
for the half year is its diminutive character. We made the
same comment in discussing the new issues for the first
six months of 1931, which appeared really small alongside
the totals for the corresponding period of the years immediately preceding. During 1932, however, the shrinkage
proceeded still further and last year's aggregate now looks
large by the side of the puny total for 1932. In brief the
new issues brought out by corporations, by municipalities
and through farm loan emissions, foot up for the six months
of 1932 less than a billion dollars, being in exact figures only
$894,059,842, which compares with $2,992,851,637 in the
first half of 1931, $5,196,189,289 in the first half of 1930,
and $6,313,824,452 in the first half of 1929. As already
94,059,842 the total for the first six
pointed out, at
months of 1932 is almost 900 million dollars less than the
additions to the public debt of the United States by reason
of United States bond issues which did not comprise obligations intended to take up outstanding maturities. The
contrast becomes all the stronger when we go a step further,
and note that out of the $894,059,842, $232,770,196 consisted of refunding issues meant to take up issues already
outstanding, leaving therefore only $661,289,646 as representing distinctively new capital for the half year.
The corporate issues have almost entirely disappeared,
the total for the half year of 1932 being no more than $249,823,295, against $2,030,346,201 in the first six months of
1931, $3,964,471,707 in the first half of 1930 and $5,563,083,697 in the first half of 1929. Stock issues now occupy a
minor place in our compilations, what little financing was
done having been almost entirely in the shape of bonds and
notes in sharp contrast with the practice in 1929 and immediately prior years when stock issues almost completely
dominated the field. There were no foreign corporate issues
and no foreign government issues, not even of Canada, in
1932. In the following table we furnish a four-year comparison of the corporate issues, showing the amounts of
bonds and stocks separately and giving the figures both
without the foreign emissions and with them included:
DOMESTIC CORPORATE ISSUES.
1929.
1930
1931.
1932.
Bonds and notes__-- $238,853,800 $1,612,890,150 52,343,998,660 81.683,588.300
888,097,906
307,097.946
128,948,667
6,775,275
Preferred stocks_ ___
926,162,101 2,485.538,044
122,707,384
4,194,220
Common stocks
Jan. I to June 30—
Total
5249,823,295 51,862,546,201 $3,577,258,707 55,057,224,250
DOMESTIC AND FOREIGN, INCLUDING CANADIAN.
1929.
1931.
1930.
1932.
Jan. 1 to June 30—
5238,853,800 31,780,690,150 82,708,151,660 52,029,748,300
Bonds and notes_
1,C00,810,106
320.097.946
126,948,667
6,775,275
Preferred stocks- 936,222,101 2,532.525.291
122,707,384
4,194.220
Common stocks
Total
5249,823,295 52,030.346,201 $3,964,471,707 $5,563,083,697
THE PART PLAYED BY INVESTMENT TRUSTS AND HOLDING
COMPANIES.
Investment trusts and holding companies, which in 1929
were so prominent in emitting new securities and contributed
so greatly to swell the total o. the new issues in that year,
have now almost completely :allen out o! the picture, and
July 9 1932
this has been one of the factors in the great falling off which
has occurred during the last three years in the total of new
financing. In the first six months of 1932 there were no
offerings of this type of security, and their contribution to
the total during the first half of 1931 was only $2,800,000,
against $149,237,079 in the first half of 1930 and no less
than $929,466,562 in the first half of 1929. In the following
we compare the figures for each six months since 1926 and
also indicate what portion of the financing by these investment trusts and holding companies was in the shape of
bonds and notes and what portion consisted of stock issues:
FINANCING BY INVESTMENT TRUSTS, TRADING AND
COMPANIES.
Short-Term
Long-Term
Stocks.
Bonds & Notes. Bonds&Notes
First half of 1932
52,300.000
8500,000
First half of 1931
72.987,079
1,000.000
575,250,000
First half of 1930
836.466.562
93,000.000
First half 011929
204,712,018
400,000
81,400,000
First half of 1928
47,573,228
1,000,000
51,500.000
First half 01 1927
37,550,000
4,000,000
9,500,000
First half of 1926
HOLDING
Grand
Total.
$2,800,000
149,237,079
929,466,562
286,512,018
100,073,228
51,050,000
However, the investment trusts, as previously explained
in these columns, have not altogether disappeared. These
trusts now, however, are not of the type that was so prominent in 1928 and 1929. They do not consist of large new
capital issues offered for public subscription in the way
common prior to 1930 and in the way always done by public
utility, railroad, industrial and other corporations. The
practice now is to gather blocks of securities of one hind or
another and to issue participating interests in the same,
split up into small units. These units are then disposed
of over the counter by distributing groups or syndicates.
Excepting two or three instances, however, no information
of the extent of these sales is forthcoming, and being sales
over the counter it is impossible to make estimates regarding
their amount. Of course, in magnitude the disposals of this
character over the counter do not anywhere near approach
those in the old form and yet they can hardly be treated as
entirely insignificant, even though trust participations of
this kind have no proper place in compilations of new capital
issues. At all events, however, nothing definite is available
as to the extent of the sales of these investment trusts, or
fixed trusts as they are commonly termed. In this state of
things, the only way to indicate the presence of these trusts is
to enumerate the offerings made from month to month. In
the following table we show the different offerings made in
the first six months of 1932:
NEW FIXED TRUST OFFERINGS DURING FIRST HALF OF 1932'
January—
Bullock Fund, Ltd., shares offered by Calvin Bullock. New York.
at $153 per share.
Deposited Bond Certificates, convertible debenture series 1938
offered by Allied General Corp., New York, at price to yield 7%.
First Bond Trust Shares, offered by G. L. Ohrstrom & Co., Inc..
New York. at price on application.
February—
Investors Bond Certificates (Los Angeles), Series A, certificates
offered by William R. Staats Co., Los Angeles, at market.
March—
First Commonstocks Corp. registered share certificates, offered by
Rackliff, Whittaker & Loomis, Inc., New York, at market.
"Forty Bond Syndicate" certificates, offered by McDonald-CallahanRichards Co., Cleveland, at market (initial price, $6.40)•
April— May— June—
None.
The Convertible Feature.
old method of financing continues to
the
of
feature
One
be followed to some degree. We allude to the tendency to
make bond issues and preferred stocks more attractive by
according to the purchaser rights to acquire common stock.
In the following we bring together the more conspicuous
issues floated during each month of the present year containing convertible features of one hind or another, or carrying subscription rights or warrants to subscribe for or acquire
new stock:
CONSPICUOUS ISSUES FLOATED IN THE FIRST HALF OF 1932
CARRYING CONVERTIBLE FEATURES OR SUBSCRIPTION
RIGHTS OR WARRANTS.
January—
None.
February—
None.
March—
$4,000,000 Virginia Electric & Power Co. convertible secured 5%5,
1942. (Each $1,000 of bonds convertible into a like amount
or let & ref. mtge. A 5s and $50 in cash on or after March 1
1933, and up to 10 days prior to redemption.)
April—
Columbus Railway, Power & Light Co. convertible
The
$4,500,000
secured 5Ms, 1942. (Each 11,000 of bonds convertible into
a like amount of let & ref. mtge. B 55, due April 1 1962
and $40 in cash on or after Oct. 1 1932 and up to 10 days prior to
redemption.)
May-Electric Co. guaranteed 8s, 1940. (Each
37.000.000 Associated Gas &
81,000 of bonds carries a warrant to purchase company's
common stock at $5 per share, at rate of 1 share for each $100
of bonds, after March 15 1933 and up to March 15 1948.)
June—
The conspicuous issue for this month has already been mentioned in
our analysis of the financing for the month.
Financial Chronicle
Volume 135
187
THE FOREIGN ISSUES PLACED IN THE UNITED STATES.
THE CHIEF REFUNDING ISSUES.
As already stated, not a single issue was floated in the
United States during the first half of 1932 for foreign governments or for Canada, its Provinces and municipalities. In
the first half of 1931 Canadian issues aggregated $50,422,000,
constituting the whole of the foreign government issues
placed here during that period. At that figure they compare
with $426,006,000 of total foreign government issues sofa
here during first half of 1930, with only $78,362,000 foTiTe
first half of 1929 and with $530,314,000 for the first six
months of 1928; with $477,757,800 for the six months of
1927; $302,764,000 in the first half of 1926; $312,311,000
in the first half of 1925, and $353,407,562 in the first half
of 1924. The refunding portion was no more than $9,500,000
in 1931, against $12,658,000 in 1930, $8,000,000 in 1929,
$100,538,413 in the first half of 1928; $58,469,000 in the
first half of 1927; $60,873,000 in the first half of 1926, and
$92,522,000 in the first half of 1925. There were no foreign
corporate offerings in the first half of 1932 and for the first
half of 1931 they were on a reduced scale, footing up only
$167,800,000 against $387,213,000 in the six months of
1930, $505,859,447 in the six months of 1929 and $646,223,750 in the six months of 1928, only $315,168,625 in the
six months of 1927, $313,694,040 in the first half of 1926,
$254,695,000 in the first half of 1925 and but $31,330,000
in the first half of 1924. Thus, there were no borrowings
in the United States on behalf of foreign governments or
corporations during the first half of 1932, whereas in the
first six months of 1931, the aggregate of foreign flotations,
government and corporate, was $218,222,000, which compares with $813,219,000 in the first half of 1930,$584,221,447
in the six months of 1929 and $1,176,537,750 in the f-gi
six months of 1928. In the first half of 1927 the foreign
flotations aggregated $792,926,425 and this compares with
$616,458,040 in 1926, $567,006,000 in 1925, $384,737,562 M
1924 and $193,646,279 in 1923. The following carries the
half-yearly comparison back to 1919:
The only conspicuous issue brought out during the first
six months for refunding consisted of $30,000,000 the
Edison Electric Illuminating Co. 1-year 43% notes due
May 2 1933 and 3-year 5% notes due May 2 1935, which
were offered during April.
GRAND SUMMARY OF FOREIGN ISSUES PLACED IN UNITED STATES
(INCLUDING CANADA. ITS PROVINCES AND MUNICIPALITIESi2
.
First half of 1932
1931
1930
1929
1928
1927
1926
1925
1924
1923
1922
1921
1920
1919
New Capital.
Refunding.
$203,722,000
758,561,000
563,788,730
935,088,837
701,947,425
524,707,740
456.734,000
230,087,562
172,704,600
507,576,650
213,224,000
214,860,000
69,535.300
814,500,000 $218,222,000
54,658,000 813,219,000
20,432,717 584,221,447
241.448,913 1,176,537,750
90,979,000 792,926,425
91,750,300 616.458,040
110,272,000 567,006,000
154,650,000 384,737,562
20,941,679 193,646,279
119,500,000 627,076.650
50,000,000 263.224,000
8.498,000 223,358,000
34,979,000 104,514,300
Total.
LARGE DOMESTIC CORPORATE ISSUES DURING THE HALF YEAR.
Domestic corporate offerings of any size at all were limit
and we are listing below the largest of these in addition to
those for June already mentioned:
January.—$25,000,000 the New York Edison Co. 1st
lien & ref. mtge. 5s C, 1951, offered at 97 to yield 5.25%
and the $7,500,030 the Kansas Power & Light Co. 1st &
ref. mtge. 6s A, 1947, issued at 91M to yield 6.90%.
February.—$25,000,000 Brooklyn Edison Co., Inc., gen.
mtge. 5s, E, 1952, issued at 97 to yield 5.25%.
March.—$10,000,000 Southern California Edison Co.,
Ltd., ref. mtge. 5s 1954, issued at 96 to yield b.30%;
700,000 New York Steam Corp. first mtge. 5s, 1956, issued
at 94 to yield 5.45%; $7,500,000 Public Service Co. of
Indiana 1st mtge. & ref. G 6s, 1952, issued at 87 to yield
7.25%; $5,000,000 Duquesne Light Co. 1st mtge. 43.'s,
1957, issued at 92 to yield 5.06%, and $5,000,000 the
Syracuse Lighting Co., Inc., 1st & ref. mtge. 55, B, 1957,
issued at 95 to yield 5.35%.
April.—$20,000,000 the Edison Electric Illuminating Co.
of Boston 3-year 5% notes due May 2 1935, issued at 98.79
to yield 5.44%;$10,000,000 the Edison Electric Illuminating
Co. of Boston 1-year 43' % notes due May 2 1933, issued
at 99.76 to yield 4.75%; $5,250,000 Kansas City Power &
Light Co. 1st mtge.434s, 1961,issued at92% to yield 5.00%,
and $4,500,000 the Columbus Ry., Power & Light Co. sec.
convertible 53,ss, 1942, issued at 94 to yield 6.31%.
May.—$7,000,000 Associated Gas & Electric Co. guar.
8s, 1940, offered at par, and $5,100,000 Hackensack Water
Co. 1-year 6% notes due May 31 1933, placed privately.
June.—The important domestic corporate issues for this
month have already been enumerated in our remarks further
above in analyzing the financing done during June.
ISSUES NOT REPRESENTING NEW FINANCING.
During the first half of 1932 offerings of securities not
representing new financing by the companies themselves
amounted to only ,000,000, as compared with $20,476,666
in the first six months of 1931, and $62,208,755 for -the
first half of 1930. These figures, as already stated, are
not included in our totals of new financing. A six-months'
comparison for the three years follows:
1931.
1932.
January
February
March
April
May
June
$5,000,000
85.920.000
5,500,000
6,056,666
Total
13,000,000
$20,476,666
1930.
$25.349,155
10,236,100
14,884,000
3,674.500
7,300,000
765,000
562,208,755
FARM LOAN ISSUES.
Farm loan issues brought out in the first half of 1932
totaled $122,500,000, as against $60,600,000 for the same
period of last year and with only $30,500,000 for the first
half of 1930. The current half year's offerings comprised
six separate issues of Federal Intermediate Credit banks
short-term debentures.
FINAL SUMMARY.
The following is a complete summary of the new financing
—corporate, State and city, foreign Government, as well as
farm loan issues—for June and for the six months ended
with June:
SUMMARY OF CORPORATE, FOREIGN GOVERNMENT, FARM LOAN
AND MUNICIPAL FINANCING.
1932.
MONTH OF JUNE—
Corporate—
Domestic—
Long-term bonds and notes
Short term
Preferred stocks
Common stocks
Canadian—
Long-term bonds and notes
Short term
Preferred stocks
Common stocks
Other Foreign—
Long-term bonds and notes
Short term
Preferred stocks
Common stocks
Total corporate
Canadian Government
Other foreign government
Farm Loan Issues
Municipal, States, cities, ,tc
United States Possessions
Grand total
6 MONTHS ENDED TUNE 30—
Corporate—
Domestic—
Long-term bonds and notes
Short term
Preferred stocks
Common stocks
Canadian—
Long-term bonds and notes
Short term
Preferred stocks
Common stocks
Other foreign—
Long-term bonds and notes
Short term
Preferred stocks
Common stocks
Total corporate
Canadian Government
Other foreign government
Farm Loan issues
Municipal, States, cities. As
United States Possessions
Grand total
New Capital. Refunding.
s
$
Total.
$
4,064.500
45,000
9,506,500
15.424,000
13.871.000
15.469.000
4,109,500
25,230,500
29.340.600
73,834,518
30,000.000
9,031,950
30,000,000
82,866,463
77,944.018
64,262.450
142,206.468
134,517,300
16.594.000
6,775,275
2,296,900
28,393,500
59,349.000
1,897,320
162.910,800
75,943,000
6,775,275
4,194,220
160,183,475
89.639.820
249,823.295
30,000,000
470,414,171
692,000
92.500.000
50,830,376
122.500,000
521,044,547
692.000
661.239.646
232.770.196
894.059.842
'
In the elaborate and comprehensive tables on the succeeding pages we compare the foregoing figures for 1932 with the
corresponding figures for the four years preceding, thus
affording a five-year comparison. We also furnish a de..
tailed analysis for the five years of the corporate offerings,
showing separately the amounts for all the different classes
of corporations.
Following the full-page tables we give complete details
of the new capital flotations during June, including every
issue of any kind brought out in that month. Full details
as to the separate issues for each of the preceding months
of the half year can be found in the monthly articles for
those months, these articles appearing usually on the first
or the second Saturday of the month.
MONTH OF JUNE.
Long Term Bonds and NotesRailroads
Public utilities
Iron, steel, coal, copper. &c
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
Oil
Land, buildings, &c
Rubber
Shipping
Inv. trusts, trading, holding, &c_
Miscellaneous
Total
Short Term Bonds and NotesRailroads
Public utilities
Iron, steel, coal, copper, &c
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
Oil
Land, buildings. acc
Rubber
Shipping
Inv. trusts, trading, holding, &c.
Miscellaneous
Total
StocksRailroads
Public utilities
Iron, steel, coal, copper, &c
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
Oil
Land, buildings, &c
Rubber
Shipping
by, trusts, trading, holding, tcc
Miscellaneous
Total
TotalRailroads
Public utilities
Iron, steel, coal, copper, &c
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
Oil
Land. buildings, &c
Rubber
Shipping
Inv, trusts, trading, holding, acc
Miscellaneous
Total corporate securities_ -
4,064,500
45,000
9,806,500
15,424,000
13,871,000
15,469,000
4,109,500
25.230,500
29,340,000
73.834,518
30.000,000
9,031.950
30.000,000
82,866,468
77.944.018
64.262,450
142.206.468
30,150,000
50.000,000
80.150,000
122,600,000
4,000,000
24,000,000
146,600,000
4,000.000
2,605,000
2,605,000
52,000,000
1,017,283
1,485,000
52,000,000
11.450,000
1,485.000
252,917.790
8.500.000
445,363.199
67,315.250 512.678.449
16,222,217
641.129.316
3,862,000
6,000.000
20,000,000
120.611,521
295,000
402.324.311
103,250,000
7,500,000
147,698,581
5,500,000
709,311.780
624,907,099
3.862,000
6.000,000
150.219,034
500.000
785,488.133
484,000
150.703,034
500.000
802.194.350
20.000,000
22,800,000
22.800,000
121,575,000
7,500,000
20,000,000
2,069,500
151,144.500
105,000,000
5.360,000
4.000,000
53,250,000
5.000,000
118,542,021
295,000
251,179.811
183,240.700
6,832,000
132,811,230
275,699,645
5,360.000
4,000,000
2,500,000
131,342,790
1.000.000
37.125,800
250.000
62,550,700
43,099,300
105.000,000
2,500,000
2,562,250
3,941.000
71.256,250
103,250,000
7,500,000
151,639.581
5.500.000
780,568.030
10,432,717
16.706,217
CHARACTER AND GROUPING OF NEW CORPORATE ISSUES IN THE UNITED STATES FOR THE MONTH OF JUNE FOR FIVE YEARS.
1929.
1930.
19 1.
1932.
Total.
New Capital. Refunding.
Total.
Total.
New Capital. Refunding.
Total.
New Capital. Refunding.
New Capital. Refunding.
4,034.500 •
30,000
4.064,500
45,000
4,034.500
11,232,717
13,600,000
7,397,000
3,650,000
3,650,000
120,000
3.500.000
4.290.000
120,000
16,932,800
16,932,800
2.115.000
2,115,000
2,500,000
1,700,000
80.490.000
22,950,083
11,232,717
34,182,800
950,000
10,582,000
2,562,250
38,305.600
73,177,250
90.915,443
565,000
749,500
91,664.943
565.000
2,340.000
10.000,000
4,500,000
3,101,000
10,000,000
15,850,000
4,000,000
63.500,000
5.000,000
4.000.000
280,000
3,500.000
4,290,000
34.130,000
1,700,000
77.990,000
38.305.600
70.615,000
15.469,000
16,529,000
4.109,500
2,367.283
250,000
14.985,000
277.233,500
45,000
25.230,.11
66.000.000
5,000,000
103.974,000
250,000
14,985.000
214,980,500
4.000,000
280.000
50,000
11.000,000
55,156,200
298,864,900
1,000.000
212,904,000
11,350,000
899,000
75,000
400,000
8,000,000
35,950.000
247,937,000
6,025.000
300,000
19,625.000
15.424,000
9.327,000
15,853,500
8.000,000
35,950.000
247,537,000
15.331,000
62.500,000
11.092.500
15,424,000
15.424,000
113,760,000
17.000,000
66,363,700
350,000
13,871.000
45,000
56,200,000
14,981,000
62,500,000
11.092,500
9,806.500
17,601,000
2.700,000
1,500.000
2.700,000
1.500,000
350,000
1.000,000
108,000
350,000
1,000,000
108,000
225,790
5.883,790
62,253,000
2.500.000
14,953,000
11,000,000
8.010.800
63,167.000
111,125,800 409,990,700
250.000
950,000
10,832,000
190,382,125
42,158,300
38,647.500
15,000.000
42,158,300
229,029,625
15,000,000
8,125,680
34,839,175
45,340.750
3,885,000
4,062.500
51,143.485
3,040,540
5,592,500
4,483,200
4,062,500
55.626,685
3,040,540
5,592.500
65.406,224
109,182.744
359.009,516
4,589.500
21,338,750
28.900,975
304,460,875
35,622,364
8.125.680
32,499,175
45.340,750
3,885,000
225,790
5,883,790
3.889,735
3.960.000
152,392,699
3.889,735
3.960.000
154.954,949
63.906,224
109,182,744
354,420,016
16,113,000
220,416,000
5.500,000
120,958,600
162,634,000
5,000,000
57.508,000
9,457,250
178,466,600
172.091,250
5,000,000
91.350,000
127,569.726
52.565,000
11,982,217
91,350.000
139,551,943
52.565,000
303.717,125
800,000
42,158,300
69,872,500
15.987,000
850,000
5,000,000
3.813,000
50.603,364
66.000.000
15.382.500
350.000
50.953.364
66,000,000
15.382.500
8,125,680
42,174.175
45.640.750
40.442,800
2,340.000
8,125,680
44,514,175
45.640,750
40,842,800
4,062,500
108,823,485
20,040,540
59,118,200
60,683,200
125,000
850,000
5.000,000
3.813,000
29,340,000
1.225.790
131,342,790
1.225.790
252.917,790
4,139,735
20.645.000
445.363,199
4.139.735
20.645.000
67,315.250 512.678,449
71,906,224
145,132,744
624,907,099
5.689,000
112.366.000
2.399,000
10.424.000
108.050,000
3,101,000
121.575.000
2.562,250
7,647,000
250,000
35.622.364
9.327.000
19.888,000
Total.
57.560.000
17,000,000
51.410,700
500.000
3,425.000
1.000,000
108,930,000
1928.
Refunding.
6,025,000
300,000
20,025.000
500,000
3,425,000
80.000
48,550,000
27,100,000
129,806.486
1,500,000
234,980.713 1.037.890.061
400,000
91.350,000
34,287,000
52,000,000
50,000
8,944,913
77
6.010:000
136,913.000
1,787,000
140,161,000
32,914,000
424,000
103,550,000
New Capital.
1,500,000
400,000
1.500,000
16.222.217
73,406,224
145,132,744
641.129.316
00
00
1.600.000
830,933,575
30,975,000
987,000
57,508.000
4.395.000
5,689.000
98,316,000
39,605,087
27.100,000
120.796,486
1.500,000
802,909.348
217,025,800
105,938,000
800,000
82.653.000
28.519,000
9.327,000
4,464,000
1.600,000
613.907,775
91.350,000
34.287.000
52,000,000
6.113.000
201.866,000
9,327.000
429.500
Total.
146,114,900
6,582,000
70,260,530
232,600,345
73.250,000
5.000,000
42.253,000
2,500.000
1928.
Refunding.
90.937.000
22.732,800
115,123,920
239.795,596
90,537,000
21,932,800
114.374.420
235.955,596
156.370.500
68,990.000
74.700,000
77,692.699
103.974,000
17.601.000
400,000
800,000
749,500
3.840,000
198,623.500
71,490,000
74.700,000
80,254,949
187,601,000
34,130,000
2,700,000
3,183,790
83,630,000
16.529,000
2,700,000
3.183.790
New Capital.
2.964,500
24,303,250
2.396.500
31.297,47o
105,650,000 410,110,875
14.953,000
42.158,300
373,589,625
16,787,000
4.062,500
169.506.685
20,040,540
74.071,200
32,338,750
2.964.500
35,303,250
85.007,175
10,407,300
95.414,475
613,907.775 217,025,800 830.933.575
ap!U0.173 lepUeUid
MONTH OF JUNE.
CorporateDomesticLong term bonds and notes_
Short term
Preferred stocks
Common stocks
Canadian
Long term bonds and notes_
Short term
Preferred stocks
Common stocks
Other foreign
Long term bonds and notes_
Short term
Preferred stocks
Common stocks
Total corporate
Canadian Government
Other foreign Government_
Farm Loan issues
Municipal,States, Cities, &c_ _
United States Possessions_ _ _ _
Grand Total
SUMMARY OF CORPORATE,FOREIGN GOVERNMENT,FARM LOAN AND MUNICIPAL FINANCING FOR THE MONTH OF JUNE FOR FIVE YEARS.
1929.
1930.
1931.
19,2.
Total.
New Capital. Refunding.
Total.
Total.
New Capital. Refunding.
Total.
New Capital. Refunding.
New Capital. Refunding.
SUMMARY OF CORPORATE, FOREIGN GOVERNMENT, FARM LOAN AND MUNICIPAL FINANCING FOR THE SIX MONTHS ENDED JUNE SO FOR FIVE YEARS.
1932.
1931.
1930.
1929.
1928.
6 MONTHS ENDED JUNE 30
New Capital. Refunding.
New Capital. Refunding.
Total.
Total.
Total.
New Capital. Refunding.
Total.
New Capital. Refunding.
New Capital. Refunding.
Total.
CorporateDomestic-Long term bonds and notes_ 134.517,300
773.570.100 616.334.200 1.389.904,300 1,810,489,160 190,447.250 2,000,936.410 1.173,483.840 374.605,260 1,548,089,100 1,200,083,100 923,832,400 2.123.915,500
28,393,500 162.910.800
Short term
75.943,000
16,594.000
156.326.350
59,349,000
66,659,500 222,985.850
113,601.700
290.749.250
34,332.300 125,626,500
91,294,200
21.897.500 135,499,200
52,313,000 343.062,250
Preferred stocks
6.775.275
6.775,275
95.898,667
31,050,000 126,948,667
307.097.946
524.614,236 229,793,300 754,407.536
307,097.946
794,846,366
93,251,540 888,097,906
Common stocks
4,194,220
2,296.900
122,707,384
1.897,320
122,707.384
912.846,351
13,315,750 926,162,101 2,123.215,883 362,322,161 2,485,538,044
646,518,156 139.365.710 785,883,866
CanadianLong term bonds and notes_
90.000.000
90,000.000
127.138,000
189.100,000
83,480,000
189.100,000
38.000,000 165.138,000
68,792.000 152.272,000
Short term
5.000,000
5,000,000
Preferred stocks
45,000,000
13,000.000
10,400,000
19,000.000
13,000,000
10,400,000
26,000,000
Common stocks
8.320,000
18,163.900
18,163,900
8,320,000
Other foreignLong term bonds and notes_
72,800,000
72.800.000
169.015,000
143.010,000
347,381.500
46.118,500 393.500,000
2,000,000 145,010.000
4.000,000 173.015,000
Short term
5.000.000
10.000.000
21.000,000
5.000,000
12,050,000
10,000,000
21,000.000
1,617,283
10,432,717
Preferred stocks
9,850,000
102,312,200
102.312,200
9.850,000
Common stocks
27,281,750
28,823,347
10.060,000
28.823.347
10,060,000
27,281,750
Total corporate
160,183.475
89,639,820 249,823.295 1,311,302,501 719,043,700 2,030,346,201 3,666,395.707 298,076,000 3,964,471.707 4,698,574.519 864,509,178 5,563,083,697 2,967,822,942 1,468,234.210 4,436,057,152
Canadian Government
40,922,000
28,840,000
50,422.000
36,612,000
51.300,000
28,612,000
44,142.000
9.500,000
28,840,000
8.000,000
7.158,000
Other Foreign Government_
369,206,000
41,750,000
400,935,587 100.538,413 501,474,000
41,750,000
5.500.000 374,706,000
Farm Loan Issues
30.000,000
60.600.000
29,600.000
92.500.000 122,500.000
30,500.000
37,100,000
30,500,000
31,000,000
37,100.000
Municipal, States, Cities, &c
470,414,171
839.380,936
50,630,376 521,044,547
662.689,229
747,728,170
11,807.500 851,188,436
750,077,756
7,694,526 670,383,755
17.808,412 765,536.582
28,341,689 778,419.445
United States P
ions_
692.000
295.000
692.000
295,000
5.685.000
9,675.000
1,995.000
9,675.000
1.995.000
5,685.000
Grand Total
661.289.646 232,770.196 894.059.842 2,221,500,437 771,351.200 2,992,851,637 4,867.646,877 328.542.4125.196,189,289 5,433.620,748 880.203.704 6.313,824.452 4.190,461.285 1,597.114.312 5,787.575.597
CHARACTER AND GROUPING OF NEW CORPORATE ISSUES IN THE UNITED STATES FOR THE SIX MONTHS ENDED JUNE 30 FOR FIVE YEARS.
1911.
Refunding.
146,319,700
458,538,000
6.062,500
Total.
394,135,000
921,030,000
109,002,300
11,970.000
Newcupital.
568,777.250
944.195,500
17,500,000
7.750,000
155,061,910
142,550,000
92,272,500
30,000,000
1,650,000
10,000,000
75.250,000
14,980,000
63,285,000
2.694.000
616,334,200 1.552.704,300 2.106,642,160
1.220,000
67,667,000
2,000.000
30,270.000
12,530,000
19,837,500
3,101,000
37,500,000
92,225,000
4.000.000
33,500,000
791,000
1.400,000
54,885.000
10,440,000
8.335.850
500,000
1.500,000
71,659,500
31,050,000
31,050,000
1930.
Refunding.
169,951,750
54,000,500
Total.
738,729,000
998.196,000
17,500,000
7,750.000
New, Capital.
266,497,240
415,591,500
121,063,500
1,150,000
155,516.910
139,953,000
149,500.000
18,884,000
92,342.500
224,459,600
30,000.000
1,000,000
3,100,000
10,000,000
75,250.000
93,000,000
220,895,000
64,305,000
1.020,000
232,447,250 2,339,089,410 1.505,593,840
455,000
6.950.000
70.000
12,000,000
125,122,000
28.000,000
12,000,000
2,600,000
70,155,000
6,650,000
45,222,250
800.000
16,900.000
600,000
685,000
15,000,000
14,500,000
140,750,000
28.000.000
12,000.000
2,600,000
87,055.000
7,250,000
45,907,250
15,800,000
500,000
20,100,000
227.985,850
1,000,000
13,200.000
316,749,250
1.000 000
52,313,000
1.000,000
14,200,000
369,062,250
23,103,500
115,218,983
212,613,511
1,500.000
66,055,600
649,771,761
115.879,875
11,562,250
66,055,600
661,334,011
115.879,875
71,107,700
605,150,393
138,794,385
13,606,250
3,052,500
1,390,500
4,132,662
174,142,395
81.698,463
12,265,000
2,300,000
72,987,079
15.193.290
66,071.462
249.656,051 1.243.004,297
646.832,850
158,849,700 431,635,000
509,425,500 1,225,868,511 1,719,089,261
161,379,875
9.163,500 114,502,300
11,970,000
19,750.000
6,732,662
399,359.305
35,000,000 136.158,250
15,492.500
230,898,463
791,000
39,996.350
149.759,750
2,620.000
30,800,000
1.650,000
10,000.000
2,800,000
149,237.079
500,000
50,273,290
142,556,462
2,694,000
719.043,700 2,030,346.201 3,666,395.707
2.500.000
15.628,000
1,500,000
22.376.283
4,132,662
175,513,895
81.698.463
12,265,000
112,143.760
228,390,000
3,186,500
Total.
378,641,000
643.981,500
124,250,000
1,150,000
New Capital.
101,682,500
511,893,500
83,507,700
4,816,000
5,020.000
208,534.700
21,489.000
327,980.700
1,300,000
1928.
Refunding.
Total.
205,797,500 307,480.000
530,439.300 1,042,332,800
61,744,300 145,252.000
4,816,000
--780.000
5,800,000
104,301,300 312,836,000
26.011,000
47,500,000
68,950,000 396,930,700
1,300,000
140,528,000
34,300,000
228,148,600
1,000,000
9,100,000
6,000.000
93,000,000
80,388,000
1,012,000
81,400,000
73f6:5-,666 228,100,000
284,332,500
39.707,500 324,040,000
376,605,260 1,882,199,100 1,630,944,600 1,038,742,900 2,669,687,500
575.000
15,416,000
3,689,000
1,500,000
52.790.000
13,500.000
40,422,000
400,000
17,000,000
4,150,000
30,500,000
44,572,000
400,000
500,000
13,150,000
500,000
13,150,000
54.589,200
2,488,100
10,694,200
54.589,200
1,200,000
4,103,900
6,505,800
12,687,500
1,200.000
6,592,000
17,200,000
12,687,500
1.916,500
32,330,217
25,020,000
147,549,200
400,000
22,075,000
101,294.200
52,206.590
263.020,200
71.107,700
657,356,983
401,814,585
59,277,002
494,176,589
83.218,994
105,077,330
54,233,534
23,178,000
834,966,562
72,987.079
608,581,207
66.453,462
382,000
13,315,750 1,256.320,047 3.077.761,696
1,371,500
1929.
Refunding.
30,413,717
5,511,852
84.832,220
41,751,939
408,500
64,788,854
579,008.809
124,970,933
105,485,830
54,233,534
23,178,000
1,500,000 836,466,562
6,342,400 614,923,607
455,573,701 3,5.33.335,397
34,332,300
400,000
22,075.000
135,626,500
34,097,650 139,954,700 174,052,350
462,243,342 147,818,048 610,061,390
38,200,581
55,400,581
17,200,000
1,920,000
1,920,000
8,028.400
9.278.400
1,250.000
221,463,899
62.115,622 283,584,521
7,096,180
7,096,180
43,224,033
1,346,000
44,570,033
11,362,975
1.042,400
12,405.375
6,212,500
6,212,500
201,747,518
2,964,500 204,712,018
199.982.064
21,467,740 221,449,804
1,235,584,142 395,159,010 1.630,743,152
339,104,940 112.143.760 451,248,700
172.451,750 819,284,600
149,280,150 362,752,200 512,032,350
81,190,750 1,800,280,011 1,043,118,176 311,010,307 1,354,128,483 1,014,558,842 682,407,348 1,696,966,190
161,379.875
259,857,885 266.206,700 526.068.585
122,108,281
78,944,300 201,052,581
19.750,000
1.150,000
1,150,000
6,736,000
6,736,000
6.732,662
59.777,002
65.288,854
5,511,852
14,248,400
2,030,000
16,278,400
647,279.589
85,407,220 732,686,809
18,726,500 418.085.805
434,107.499 168.905,022 603,012,521
102,102,994
7.550.000 238,448.463
57,167,939 159.270.933
36.705,200
35,090,980
71,796.180
384,126.130
755,000 150,514.750
4,097,500 388.223,630
383,892,233
70,296,000 454.188,233
45.800,000
55,233.534
15,000,000
55,233,534
12,662,975
13,705.375
1,042,400
10,000,000
26,278.000
6.000,000
32,278,000
6,212.500
6,212,500
149,237,079
927,966,562
282,535,518
1,500,000 929,466,562
3,976,500 286,512,018
852,579,707
2.402,000 144,958,462
15,463,900 868,043,607
506,389.564
61,175,240 567,564,804
298,076,000 3.964,471.707 4,698,574.519 864,509,178 5,563,083,697 2,967,822,942 1,468,234,210 4.436,057,152
apfU01113 IVI3LIEVId
1912.
6 MONTHS ENDED JUNE 30 New Capital.
New Capital.
Total.
Refunding.
Long Term Bonds and NotesRailroads
247.815.300
9,327,000
9,327,000
Public utilities
131,817,300
462.492,000
19.016,500 150,833,800
Iron, steel, coal, copper, Ste
102,939,800
Equipment manufacturers
11,970.000
Motors and accessories
Other industrial and manufacturing
66,167.000
Oil
2.000,000
Land. buildings, &c
2,500,000
29,050,000
2,550,000
50,000
Rubber
Shipping
1,650,000
Inv. trusts, trading, holding, &c
Miscellaneous
200,000
12,286,000
200,000
Total
134,517,300
936,370,100
28,393,500 162,910,800
Short Term Bonds and NotesRailroads
7,375,000
24,970.000
8,375.000
1,000,000
Public utilities
2.850.000
61,099,000
72.387,500
58,249,000
Iron, steel, coal, copper, &c
100,000
899,000
100.000
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
21,385,000
Oil
9,649,000
Land. buildings, &c
4,101.000
6.935.850
4.101,000
Rubber
Shipping
Inv. trusts, trading, holding, &cMiscellaneous
2,268,000
20,100,000
2,268,000
Total
16,594,000
156.326,350
75,943.000
59.349,000
StocksRailroads
Public utilities
4.912.175
181,563.511
6,809,495
1.897,320
Iron,steel, coal, copper. &c
1,500,000
Equipment manufacturers
Motors and accessories
Other industrial and manufacturing
491,250
13,606,250
491.250
Oil
3,052,500
Land, buildings, &c
1.390,500
Rubber
2.168,750
2,168,750
Shipping
Inv. trusts, trading, holding, dm2,300,000
Miscellaneous
1,500.000
15.193.290
1,500,000
Total
9,072.175
218,606,051
10,969.495
1.897.320
TotalRailroads
7.375,000
272,785,300
17.702,000
10,327.000
Public utilities
716,443,011
139,579.475
79,162,820 218,742,295
Iron, steel, coal, copper, &c
105,338,800
100,000
100,000
Equipment manufacturers
11,970.000
Motors and accessories
Other industrial and manufacturing
491,250
101,158,250
491,250
011
14.701,500
Land, buildings, &c
6,601.000
37,376,350
6.651.000
50.000
Rubber
2,168,750
2.168.750
Shipping
1,650,000
Inv. trusts, trading, holding, &c2.300,000
Miscellaneous
3.968,000
3.968,000
47.579,290
Total corporate securities
160,183.475
89.639,820 249,823.295 1,311.302,501
Financial Chronicle
190
July 9 1932
DETAILS OF NEW CAPITAL FLOTATIONS DURING JUNE 1932.
LONG-TERM BONDS AND NOTES (ISSUES MATURING LATER THAN FIVE YEARS).
Amount.
Purpose of Issue.
To Yield
About.
Price.
Railroads—
$
9,327,000 Refunding
%
5.00 St. Louis Southwestern Ry. Gen. & Ref. M. be, 1990. Offered to holders of company's consolidated mtge. 4s, due June 1 1932.
100
Public Utilities4,000,000 Additions, extensions, 8,c
7.50 The California-Oregon Power Co. Ref. M.64s, 1942. (Convertible at any time on or before May 1
1941, or, if called for redemption on or prior to such date, on or before the tenth day prior to redemption date, into an equal principal amount of Refunding Mortgage 65, 1982, the company agreeing
to pay the holder, upon conversion, cash at the rate of $50 per 111.000 principal amount of bonds st
, ex Co., Inc.; W.C. Langley
converted.) Offered by Chase Harris Forbes Corp.; H. M. Byflesh)
& Co.; A. C. Allyn & Co.. Inc.; J. H. Schroder Banking Corp.. and The N. V. Harris Co., Inc
8.95 City of New Castle (Pa.) Water Co. 158 (closed) M.5s, 1941. Offered by W. C. Langley & Co.
93
464,000 Refunding; other corp. purposes
Company and Issue, and by Whom Offered.
87
4,464,000
Land, Buildings, &c.30,000 Liquidate current debts
50,000 Refunding
Price on application Friends University 181 (closed) M.Os, 1934-43. Offered by The Wheeler Kelly Hagny Trust Co..
Wichita, Kan.
5.50 St. Mary's College (St. Mary's, Ky.) 1st M. 5)4s, 1933-42. Offered by Festus J. Wade Jr. &
100
Co., St. Louis.
80,000
SHORT-TERM BONDS AND NOTES (ISSUES MATURING UP TO AND INCLUDING FIVE YEARS.
Amount.
8
1,500,
To Yield
About.
Price.
Purpose of Issue.
Public Utilities—
Refunding
99-96
7.424.000 Refunding
99
2,500.000 Refunding
99)4
4,000,000 Rebinding
99
15,424,000
Land, Buildings, &c.45,000 General purposes
Company and Issue, and by Whom Offered.
%
6.04-7.00 Lowell Gas Light Co. 1-Year and 3-Year 5% Notes, June 15 1933 and June 15 1935. Offered to
holders of company's 3% Notes, due June 15 1932.
7.05 Staten Island Edison Corp. Re/. & Imp. M. fie, June 14 1933. Offered to holders of company's
1-Year 3% Notes, due June 15 1932.
8.52 Wisconsin Public Service Corp.6% Notes, June 15 1933. Offered by Chase Harris Forbes Corp.;
Halsey. Stuart & Co., Inc.; H. M. ByUesby & Co.. Inc.; W. C. Langley & Co.; A. C. Allyn &
Co., Inc.; J. H. Schroder Banking Corp., and The N. W. Harris Co., Inc.
7.05 Wisconsin Valley Electric Co.8% Notes. June 15 1933. Offered by Chase Harris Forbes Corp.:
H. M. Byllesby & Co., Inc.; W. C. Langley & Co.; A. C. Allyn & Co.. Inc.; J. H. Schroder
Bankin• Corp., and The N. W. Harris Co., Inc.
100
5.50 Church of the Immaculate Conception (St. Louis) 530, Sept. 1 1935. Offered by Feetus J.
Wade Jr. & Co.. St. Louis.
FARM LOAN ISSUES.
Amount.
Issue and Purpose.
Price
To Yield
About
Offered by-
530,000,000 Federal Intermediate Credit Banks 3% Coll.'Fr. Debs., dated June15
Price on application Charles It. Dunn, Fiscal Agent, New York.
1932 and due in 3, 6, 9 and 12 months (refunding)
•Shares of no par value.
a Preferred stocks of a stated par value are taken at par, while preferred stocks of no par value and all classes of common stock are computed at their offering prices.
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, July 8 1932.
Retail trade, pushed by some vigorous and enlightened
advertising of special sales, has been more active than had
been expected. The success of these special sales, such as
it has been, was due to ruthless cuts in prices. The public
will not buy at all freely except at very cheap prices. Retailers themselves are buying very sparingly. They are
keeping their inventories down near the vanishing point, lest
they be caught loaded up on falling prices. They have a
terror of that, begotten of unforgettable days of the past.
There is still no general activity, but there is hardly so much
pessimism as was for long so noticeable. The recent rise in
cotton and the upward turn, at times, in grain and sugar
are noteworthy things. Still more so, in a way, is the sharp
rise in the price of hogs at the West, which apparently means
much to the farmer. For 28 days in succession the price of
hogs advanced, and when it was halted on the 7th inst.
the decline was only 5 to 10 points. To the delight of the
farmer the price had reached $5.50. No such persistent rise
in the price had been seen for years past. It puts many
farmers in much better shape. What is more, cattle have
risen to $9 a cwt., a rise for the day of 10 to 15c., reaching
the highest point since Feb. 10. Again this means much to
the farmer, harrassed by low prices of grain. A better
feeling pervades the country; that is, a less hopeless feeling,
though it will not do to overemphasize this. The feeling at
bottom is still very cautious, although there is rather more
disposition to believe that the worst is over and that there
will be a recovery from about this point, even though it
may be slow. Things of this sort crop up now and then.
The Farm Board is to liquidate its holdings of wheat.
Meanwhile steamship traffic on the Pacific is increasing.
Central West reports state that business on the Great Lake:,
is beginning to assume its summer proportions. Raw cotton
has been rapidly advancing owing to incessant rains in the
cotton belt, a fear of damage by weevil, and a persistent
trade demand from the Continent. The Government
estimated the reduction in the acreage at 9.5%. That is
not as much as prudence would suggest to the South, but
it is a greater decrease than has been estimated in some
private reports. Manchester has been doing rather more
business and Worth Street has had a fair trade. Iron and
steel have remained quiet. Automobile companies are said
to be greatly reducing their output.
Crude oil production is now far below requirements of
consumption and is likely to be for some time to come although the mid-western fields are reported to be active.
Under the circumstances the prices for crude and its products
are firmer. There is very little mining going on in Montana
although there is some prospecting. Producers of lead and
zinc are operating on a very reduced scale. Manufacturers
of radio receiving sets are turning to the making of electrical
refrigeration sets and keen competition has developed in
this field, leading to cutting of prices. The spring wheat
crop continues to look well, but rains and boll weevil, as
already intimated, menace the cotton crop. The peach and
apple crops are short of last year. It also looks as though
the tobacco crop would be small. Shoe manufacturers in
New England are active on fall lines of shoes, but they are
devoting their plants to the production of moderate priced
goods. In Boston wool has been in fair demand and about
steady. Wheat advanced 1 to 1 Ylo. on heavy rains in the
Southwest, and covering of shorts. It looks as though the
harvesting of the winter wheat crop in the Southwest may
be delayed. Corn has been mostly higher though without
much activity. Still the interior is offering very sparingly.
Oats and rye have advanced. Provisions have been firmer,
and lard has advanced 17 to 32 points. Hogs advanced for
nearly a month without interruption. Coffee was 3 points
lower to 12 higher. Sugar advanced 9 to 14 points on futures
owing to a decree by the President of Cuba, re-establishing
the pool which will reduce shipments from Cuba to the
United States it is understood by some 700,000 tons. Refined has advanced to 4c. Spot raws have been more active
and stronger. The sales of futures to-day of 76,450 tons
are the largest since December 1930. Rubber has advanced
11 to 14 points. Hides were up 60 to 65 points. Cocoa
advanced 23 to 37 points. Silk is off 2 to 3 points. Silver
rose 5 to 17 points.
As to the stock market, on the 5th inst. prices declined 2
to 3 points with sales of 612,700 shares, more than half of
which on the average was regained. Foreign bonds advanced 4 to 8 on German and 1 to 5 on many other foreign
Volume 135
Financial Chronicle
191
issues. United States issues were slightly higher, others New York Federal Reserve Bank's Indexes of Business
steady with total trading in nearly $10,000,000. The deActivity.
cline in stocks was due to a fear in some quarters of what
In. presenting in its July 1 "Monthly Review" its indexes
the Democrats might do if they come into power, a !ear of business
activity, the Federal Reserve Bank of New York
somewhat accentuated by Mr. Roosevelt's attacks on some said:
of Mr. Hoover's policies. But the trading was still small
The limited data now available indicate no material change in the general
and firmness of foreign bonds was an offset to the weakness slutation during June. The average number
of cars loaded with merchandise
and
miscellaneous freight in the first three weeks of the month showed little
in stocks. On the 6th inst. stock prices advanced. The
change from the May level, and car loadings of bulk freight continued to
rise was not marked. The significant thing was the advance decline; ordinarily there is no
cinsistent variation in car loadings between
in German and Continental Government bonds of 1 to 6 May and June. The dollar value of sales of department
stores in the
Metropolita
n area of New York City in the first half of June was 24%
points, coincident with the better news from Lausanne.
below the level of a year previous, a slightly larger decline than has occured
Also there were advances of 1% to 2e. in wheat and 20 to 27 in recent months. Bank debits in
140 centers outside of New York City
points in cotton. Beyond all that the morale of Wall Street Increased in about the usual proportions in June, according to an estimate
based
on figures for the first three weeks.
if not of the country at large had improved. There is a
This bank's seasonally
growing notion that things are gradually improving. There showed further declines. adjusted indexes of business activity for May
is nothing at all spectacular; no marked improvement in (Adjusted for seasonal variations, for usual year-to-year
growth,and where necessary
for price changes)
trade as a rule, but there was simply less pessimism and
more disposition to look for at least a temporary improveMay
Mar. April
May
ment in the stock market. On the 7th inst. stocks were
1931. 1932. 1932. 1932.
still under more or less pressure, though the trading, despite
Primary DistributionCar loadings, merchandise and miscellaneous_ _. 79
some increase, was still only 784,000 shares. Some decline Car
ss
68
56
loadings, other
68
60
56
42
in wheat and cotton had possibly a slight effect; also some- Exports
71
51
49
609
72
65
62
60y
what less optimistic reports from Lausanne. But foreign Imports
Waterways traffic
62
40
407
...
trade
90
81
bonds as a rule were higher and foreign stock markets seemed Wholesale
75
76
Distribution to Consumerstore sales.2d District
cheerful enough. Some stocks touched new low levels here, Department
77
95
82
76
Chain grocery sales
95
72
73
77
including American Telegraph, Eastman and International Other chain store sales
94
75
83
78
Mall-order house sales
96
59
83
75
Business Machines. Significantly enough, German bonds Advertising
77
62
62
59
Gasoline consumption
have advanced 12 to 15 points in a week.
83
73
67
Passenger automobile registration
61
27
289
ill9
General
Business
Aerially
To-day the stook market remained quiet with transactions Bank debits, outside of New
York CRY
86
62
70
63
of only 700,000 shares and prices sagged despite what was Bank debits, New York City
86
60
65
57
Velocity of bank
outside of N.Y.City.
77
86
91
79
regarded as favorable Lausanne news and also the fact that Velocity of bank deposits,
deposits, New York
93
68
67
55
Shares sold on N. Y. Stock Exchange City
117
72
71
56
London advanced on the Lausanne agreement. There was Postal receipts
87
72
71
69
Life insurance paid for
a sharp advance at one time in foreign bonds, especially Electric
92
80
75
73
power
85
73
799
-German, Australian, Argentine and Scandinavian. But Employment In the United States
80
68
66
64
Business failures
109
121
124
132
later came a reaction under profit taking. Most of the Building
contracts
61
21
24
31
New corporations formed in N. Y. State
86
commodity markets show advances during the week. And Real
78
83
83
estate transfers
54
48
48
General
price
level.
general trade here and there was a trifle better although it
153
137
134
132
Composite Index of wageer
209r
1907
1877
184r
was a short week owing to the holiday.
Cost of ilviny•
149
136
135
132
p Preliminary. r Revise. * 1913 averag
Manchester, N. H., wired on July 5 that notices were
11)0.
posted in the cotton and mechanical departments of the
Amoskeag Mfg. Co., notifying employees of a three weeks' Loading
of Railroad Revenue Freight Still Falling Off.
suspension of activities from July 22 to Aug. 15. The
Loading of revenue freight for the week ended on June 25
worsted and rayon departments will operate on their usual
schedule during the shutdown of the other departments. totaled 498,799 cars, according to reports filed by the railThe mills resumed operations this morning after being closed roads with the car service division of the American Railway
down since Friday night. At Chicopee, Mass., the woolen Association and made public on July 2. This was a decrease
clothing plant of Asinof & Sons, Inc., closed since May 1, of 19,610 cars below the preceding week this year, a reduction
will resume operations on nearly full schedule as it is believed of 260,564 cars below the corrresponding week in 1931 and
the raw material market has stabilized to a point warranting 437,891 cars under the same period two years ago. Paroperations on normal basis. Greenville, S. C., wired that, ticulars follow:
•
Miscellaneous freight loading for the week ended on June 25
effective next Monday, the Victor-Monaghan Mills will 189,683
totaled
cars, a decrease of 18,594 cars below the preceding week, 108,153
operate three instead of two weeks each month. This sched- cars under the corresponding week in 1931, and 182,181
cars under the same
ule will continue for the next month and will be continued week in 1930.
Loading of merchandise less than carload lot freight totaled 174,522
cars,
at the end of that time if business conditions warrant, it is a decrease
of 1,403 cars under the preceding week.41,538 cars below the
said. The other mills in this section are with but few ex- corresponding week last year and 65,022
cars under the same week two
ceptions operating on a half-time basis. This applies to years ago
Grain and grain products loading for the week totaled 27,577
cars, 1,704
Brandon, Woodside and Easley mills, the largest groups cars
above the preceding week, but 14,292 cars below the corresponding
having offices in this city. Duncan Mills has resumed week last year and 21,269 cars below the same week in 1930. In
the Western
operations after having been closed for four weeks. Judson districts alone, grain and grain products loading for the week ended on
June 25 totaled 18,399 cars, a decrease of 12,190 cars below the same
week
Mills is operating two weeks out of a month, officials said last year.
to-day.
Coal loading totaled 68.247 cars, a decrease of 356 cars under the
preweek, 50,808 cars below the corresponding week last year, and
Manchester cabled: "In the dispute between employers ceding
69,274 cars below the same week in 1930.
and operators in the weaving section of the Lancashire cotton
Forest products Lading totaled 16.719 cars, a decrease of 421
cars below
industry there has been no change and no formula has yet the preceding week, 13,817 cars under the same week in 1931 and 31,228
below the corresponding week two years ago.
been evolved to enable the two sides to renew joint negotia- cars
Ore loading amounted to 4,548 cars, an increase of 258 cars above
the
tions. But while the negotiations hang fire the actual week before, but
25,601 ears under the corresponding week last year. and
number of mills adopting reduced wage scales is increasing. 56,486 cars under the same week in 1930.
Coke loading amounted to 2,916 cars, a decrease
of 25 cars below the
As wage contracts for individual mills expire those mills preceding
week, 2,163 cars below the same week last year and 6,475 cars
that have been working at the old wage rates will be obliged below the same week two years
ago.
Live stock loading amounted to 14.587 cars, a decrease
to follow the example of their competitors." Sales of
of 773 cars under
the preceding week, 4,189 cars below the same
week last year and 5,956
F. W. Woolworth Co. stores for June are reported to have cars below the same week
two years ago. In the Western districts alone,
shown a decline of 13.61% from June last year, while for the loading of live stock for the week ended on June 25 totaled 11,021 cars, a
first six months of the year a drop was indicated of 9.23%. decrease of 3.342 cars compared with the same week last year.
All districts
reductions in the total loading of all commodities
In the forepart of the week it was rainy and cool here, compared with reported
the same week in 1931 and 1930.
Loading
of revenue freight in 1932 compared with the two
but latterly it has been clear and warm. On the 7th inst.
previous
the temperatures here were 62 to 78 degrees; at Boston, years follows:
60 to 88;at Chicago,66 to 80; Cincinnati,68 to 84; Cleveland,
1932.
1931.
1930.
68 to 76; Detroit,68 to 70; Kansas City,76 to 90; Milwaukee,
Four weeks in Januar",
2,269,875
2.573,211
3.470,797
66 to 78; St. Paul,62 to 78; Montreal,64 to 82; Philadelphia, Four weeks In
February
2.345.325
2,534.119
3,506,899
Four weeks In March
2.280.672
66 to 84; Phoenix, 80 to 106; Portland, Me., 60 to 78; Five
2.936,928
8,515,783
weeks in AprIl
2,772,888
3,757,563
4,561.634
Four weeks in May
Portland, Ore., 56 to 80; Seattle, 50 to 72; Spokane, 50 to Week
2.087,756
2,958.784
3,650.775
ended June 4
447.887
781,084
935,552
88; St. Louis, 74 to 92; Winnipeg, 54 to 76. To-day in Week ended June 11
501.760
732,409
926,066
Week ended June 18
518,409
739,094
920.64.5
New York it has been 67 to 80 degrees, and the forecast is Week
ended June 25
498,799
759.363
936.690
for fair and cooler.
Total
13,622,871
15,352.555
22.424.521
July 9 1932
Financial Chronicle
192
The foregoing, as noted, cover total loadings by the railroads of the United States for the week ended June 25. In
the table below we undertake to show also the loadings for
the separate roads and systems. It should be understood,
however, that in this case the figures are a week behind
those of the general totals-that is, are for the week ended
June 18. During the latter period a total of fourteen roads
showed increases over the corresponding week last year,
the most important of which were the Bangor & Aroostook
RR., the Detroit Toledo & Ironton RR., the Pittsburgh &
West Virginia Ry., the Spokane Portland & Seattle Ry.
and the Gulf Coast Lines.
CARS)-WEEK ENDED JUNE 18.
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF
Railroads.
Eastern DistrictGroup A:
Bangor & Aroostook
Boston & Albany
Boston & Maine
Central Vermont
Maine Central
New York N. H.& Hartford..
Rutland
Total
Group B:
y Buff. Rochester & Pittsburgh_
Delaware & Hudson
Delaware Lackawanna & West..
Erie
Lehigh & Hudson River
Lehigh & New England
Lehigh Valley
Montour
New York Central
New York Ontario & Western__
Pittsburgh & Shawmut
Pittsb. Shawmut & Northern
:Ulster & Delaware
Total
Group C:
Ann Arbor
Chicago Indianap. & Louisville_
Cleve. Cin. Chi. & St. Louis-.
Oentral Indiana.
Detroit& Mackinac
Detroit & Toledo Shore Line...
DetroitToledo & Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia
Wabash
Wheeling & Lake Erie
Total Loads Received
from Connections.
Total Revenue
Freight Loaded.
1932.
1931.
1932. , 1931.
1930.
1.377
2,663
6.942
641
2,883
10.198
614
890
3,288
9,637
755
3,538
14,217
632
1,069
3,896
11,274
856
4,177
15,299
731
285
4,359
8.937
2,444
2.199
9,872
1,044
338
5,357
10,474
2,878
1,762
13,730
1,127
25,118
32,957
37,302
29,140
35,666
4:128
7,343
10,669
192
'1,119
6,687
863
17.040
1,606
430
371
6.696
7:436
a;iii
7:480
10,781
13,477
212
1,832
8,520
1.576
25,715
2,216
417
400
12,445
16,509
238
2,185
10.767
2,802
33,589
1,512
724
398
4,887
11,434
1,417
708
6.044
68
22,132
1,920
53
239
6,238
14,608
2,038
1,047
7,638
61
30.645
2,416
28
292
50,438
71,842
88,605
54,543
72,391
467
1,323
7.332
26
298
163
1,965
2,623
6,181
2.899
4,022
4,590
2.863
1,007
5,218
2,367
616
1.950
9,056
43
472
271
1,721
4,150
7,638
4,941
5,723
5,722
5,052
334
6,451
3,333
576
2,546
10,873
63
459
359
3,164
4,886
9,568
5,889
6,780
7,306
8,034
1,333
7,280
5,542
930
1,565
8,735
44
100
1,243
913
4,672
6,671
186
7,204
3,133
3,215
622
7,177
2,019
1,265
2,314
12,479
94
150
2,059
1.175
6,349
8,097
220
9,375
4,194
4,936
762
9,259
2,449
43.339
67.473
74,638
48,429
65,177
Grand total Eastern District.. 118,895
162,272
200,545
132,112
173,234
24,144
1,366
33,471
4,208
z43,050
6,907
11,411
577
16,919
2,063
--511
6,847
3
125
80
1,108
51,682
9,907
2,655
33
2,361
157
8.249
235
118
1,449
73,317
15,012
6,791
44
•
3.389
99,407
146,440
193,880
68,231
106,107
15,045
12,241
944
2,285
23,445
18,890
1,252
3,353
26,043
21,170
1,153
3,311
5,706
3,112
1,127
424
8,919
4,858
1,681
447
30,515
46,940
51,777
10.369
15.903
8,338
782
430
87
52
2,622
407
289
5,809
15,867
156
11,601
1,190
561
147
55
3,747
509
418
8,878
22,817
179
11,179
1,386
695
164
45
3,269
475
541
9,544
24,722
229
3,027
919
611
250
61
883
528
3,308
2,128
8,238
584
4,850
1,359
1,052
148
69
1,419
696
4,719
3,369
12,697
892
34,817
50,102
52.249
20,537
31,270
Total
AlleghenyDistrictBaltimore & Ohio
Bessemer & Lake Erie
y Buffalo & Susquehanna
Buffalo Creek & Gauley
Central RR. of New Jersey__
Cornwall
Cumberland & Pennsylvania..
Ligonier Valley
Long Island
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
Total
Pocahontas DistrictChesapeake & Ohio
Norfolk & Western
Norfolk & Portsmouth Belt Line
Virginian
Total
Southern DistrictGroup A:
Atlantic, Coast Line
Clinchneld
Charleston & Western Carolina
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont & Northern
Richmond Frederick. & Potom_
Seaboard Air Line
Southern System
Winston-Salem Southbound...
Total
Railroads.
9
3
203
12,215
8,412
10,836
37
33
472
43
13
456
28
14
203
3,750
2,325
1,209
44,712
29,186
95,653
17,816
12,670
18,562
4,277
1,009
12,682
533
4.235
2,iii
3,594
Group B:
Alabama Tenn. & NorthernAtlanta Birmingham & Coast..
Atl. & W.P.-West RR.of Ala.
Central of Georgia
Columbus & Greenville
Florida East Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Macon Dublin & Savannah....
MississippiCentral
Mobile & Ohio
Nashville Chattanooga & St. L.
New Orleans-Great Northern..
TennesseeCentral
Total Loads Received
from Connections.
Total Revenue
Freight Loaded.
1932.
1931.
1930.
262
549
525
2.766
183
406
638
256
647
16,368
12,875
105
109
1,650
2,275
491
306
246
769
638
4,139
343
482
1,181
428
808
22,816
20,479
131
151
2,050
2,966
910
598
259
980
809
4,316
452
582
1,119
448
1,020
26,977
24,908
126
209
3.052
4,188
1,129
664
1931
1932.
132
411
842
1,876
206
387
960
251
675
6,966
2,947
224
225
934
1,661
237
379
188
550
1,208
2,995
242
738
1,487
456
894
9,849
4,789
294
387
1,067
2,390
332
545
40,411
59,135
71,248
19,313
28,411
Grand total Southern District..
75,228
109,237
123,497
39,850
59,681
NorthwesternDistrictBelt Ry. of Chicago
Chicago & North Western
Chicago Great Western
Chic. Milw. St. Paul & Pacific.
Chic. St. Paul Minn. & Omaha
Duluth Missabe & Northern__ _
Duluth South Shore & Atlantic
Elgin Joliet & Eastern
Ft. Dodge Des M.& Southern_
Great Northern
Green Bay & Western
Minneapolis & St. Louis
Minn. St. Paul & S. S. Marie._
Northern Pacific
Spokane Portland & Seattle-.
1,372
13,548
2,223
15,024
3,129
550
543
3,289
284
7,399
525
1,796
3,775
7.126
1,207
1,554
22,996
3,062
22,401
4,215
11,666
1,391
4,651
393
12,864
673
2,809
5,764
9.373
1.033
1,684
29,100
3,560
26,873
5,375
20,988
2,227
10,375
493
21,806
689
3,475
8,368
12,568
1.511
1,241
6,529
2,200
5.778
2,770
106
374
2,915
127
2,034
363
1,021
2,081
1,997
896
1,533
8,662
2,324
7,644
3,418
116
486
4,728
174
2,263
430
1,347
2,373
2,495
902
61.790
104,845
149,052
30,412
38.895
28,646
4,343
282
20,832
19,988
3,278
1,038
2,816
279
2,461
1,382
238
24,161
337
340
15,373
189
1,925
3,666
1,708
4
5,152
6,314
1,706
732
1,483
17
825
273
2,917
190
812
5.583
7
985
4,557
2,489
22
6,217
8,306
2,270
985
1,749
18
1,230
284
42
3,861
579
891
6,176
3
1,090
107,424
129,888
32,379
40,764
139
122
151
1,387
87
2,016
217
1,959
1,263
89
608
41
5,243
12.497
48
67
8,422
2.181
648
5,824
3,989
1,965
22
240
136
150
1,351
424
4,341
556
2,141
1,866
173
694
62
5,418
16.691
42
199
9,732
3,167
427
6,787
4,892
2,424
43
271
277
225
1,938
283
2,148
510
2,853
1,980
196
1.007
112
5,997
21,070
44
233
11,807
4,141
495
7,663
5.399
3,296
61
2,610
281
101
1.051
70
1,727
766
1,405
1,000
354
314
243
2,351
6,769
16
64
3,242
1,839
202
2,803
3,615
1,528
40
3,103
222
154
1,574
47
2,247
985
2,182
925
687
249
317
2,863
9,093
15
116
4,191
2,540
199
4.686
5,323
2,575
87
48,983
61.936
72,006
32,391
44,860
Total
Total
Central Western Dist.Atch. Top. & Santa Fe System_
Alton
Bingham dr Garfield
Chicago Burlington & Quincy-Chicago Rock Island & Pacific_
Chicago & Eastern Illinois
Colorado & Southern
Denver & Rio Grande Western_
Denver & Salt Lake
Fort Worth & Denver City_
Northwestern Pacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
Toledo Peoria & Western
Union Pacific System
Utah
Western Pacific
Total
Southwestern DistrictAlton dc Southern
Burlington-Rock Island
Fort Smith & Western
Gulf Coast Lines
Houston & Brazos Valley
International-Great Northern
Kansas Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Litchfield & Madison
Midland Valley
Missouri & North Arkansas
Missouri-Kansas-Texas Lines-Missouri Pacific
Natchez & Southern
Quanah Acme & Pacific
St. Louis-San Francisco
St. Louis Southwestern
Ban Antonio Uvalde & Gulf-Southern Pacific, in Texas & La.
Texas & Pacific
Terminal RR. Assn. of St. Louis
Weatherford Min. Wells &N.W.
Total
21.138
3,537
121
13,249
12,089
2,085
762
1,308
194
1,153
511
250
15,577
206
270
9,841
178
1,122
83,591
23,139
3,550
193
18,643
16,412
2,563
956
1,883
179
1,248
734
143
22,592
425
302
12,875
139,
1.448
a
z Included in New York Central. y Included in Baltimore & Ohio RR. z Est mated.
National City Bank of New York Sees Favorable Elements in Business Situation-Measures Taken
by Congress in Disposing of Tax and Economy Bill,
and Strengthening of Dollar Cited as Bringing
Change for Better.
In its survey of business conditions in its July 1 bulletin
the National City Bank of New York says:
The outstanding development of favorable character during the past
month has been the quieting down of nervousness both here and abroad
regarding the soundness of the dollar. Evidence of this improved psychology has been clear to all having contacts with business and the markets,
but has been most definitely reflected in the foreign exchanges where the
dollar has strengthened in terms of all currencies and is now quoted at
levels rendering gold shipments no longer profitable for the first time since
March.
For this marked chage for the better in sentiment regarding the financial
position of the country, the action of Congress in finally enacting the tax
bill and in accomplishing some measure of economy in expenditure is undoubtedly chiefly responsible. It is true that the measures taken by
Congress to maintain the Federal finances in order leave much to be desired.
The budget is balanced on paper, but it requires a great deal of optimism
Indeed to believe that it will be so in fact. Nevertheless, the program,
unsatisfactory though it may be, is vastly better than the confusion existing
during the preliminary discussion. The paramount task was not so much
to achieve an iron-clad balancing of the budget, as to demonstrate a determination on the part of the Congress to keep the deficit under control and
not to give way to the temptation of unrestrained Inflation.
Besides the influence of tax legislation in Congress, sentiment has also
been benefitted greatly by the belief that the gold drain upon the United
States is nearing its end. This belief arises partly from the action of Congress In avoiding seriously infaltionary measures and partly from the understanding that foreign balances in this country have now been drawn down
to the point where further reduction would hardly provide leeway from the
working balances normally required by trade. During the past nine
months since Great Britain departed from a gold basis foreigners have recalled over a billion dollars of the enormous balances accumulated here after
the war, and the steady outflow of gold on so largo a scale has been a constant source of uneasiness regarding the position of the dollar, notwithstanding the ample reserves existing In this country. Now, however, that
the repatriation of those huge balances is so near completion, leaving
the financial position still immensely strong, confidence in the United States
has been correspondingly increased.
Financial Chronicle
Volume 135
This is a development of the first magnitude. Confidence in the currency is a first condition of economic recovery, since without it there can
be no certainty as to the outcome of any business or investment undertaking.
If Congress fulfills the general hopes of an early adjournment, and there
is no further extensive gold outflow, it is probable that the talk of inflation
and of possible abandonment of the gold standard will continue to die
down, thus affording relief from what has come to be a highly disturbing
influence. Confidence, however, is a tender plant which requires careful
nourishment in the beginning, and it would not take a great deal to nip
it in the bud.
It is a fortunate circumstance that despite the low level of prices and general economic distress resulting therefrom the money question has not become a subject of acute political controversy. The chief of the inflationary
proposals, the soldiers' bonus bill, was decisively defeated in the Senate by
a vote of 62 to 18, and both major political parties are for sound money and
the gold standard.
Annalist Weekly Index of Wholesale Commodity Prices
-Further Advance Shown.
The unadjusted "Annalist" weekly index of wholesale
commodity prices advanced again to 91.2 on July 5, from
90.6 a week ago, and the post-war low of 87.3 on June 14,
with a total gain for the three.weeks of 3.9 points or 4.5%;
it now stands at the highest level since April 12, says the
"Annalist," which further states:
When adjustment is made for the usual seasonal rise, the week showed
a decline to 90.7 from 91.1, and a total rise since June 14 of 2.3 points
or 2.6%.
Advances of individual commodities were fairly numerous, and included
especially cotton, crude petroleum, livestock and the meats. The advance
in livestock was largely seasonal, and the adjusted figures therefore dropped
when it was eliminated. Losses were reported for the grains, refinery
gasoline and spot hides, among others.
THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
(Unadjusted for seasonal variation: 1913.--100.0)
July 5 1932. June 23 1932. July 7 1931.
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
69.6
94.3
a66.4
143.9
95.7
107.2
93.0
79.6
*68.1
93.3
*66.1
145.4
93.0
107.2
96.0
79.6
89.8
110.5
97.2
122.9
103.3
116.9
98.6
85.0
All commodities
91.2
90.6
102.6
•Revised. x Provisional.
Third Consecutive Increase Noted in Wholesale Price
Index of National Fertilizer Association During
Week Ended July 2.
For the third consecutive week wholesale prices, as
measured by the index of the National Fertilizer Association, advanced during the latest week. The advance
during the week was smaller than for either of the two
preceding weeks and was due chiefly to rising prices of a
small number of important commodities. The latest index
number is 60.7; a week ago it was 60.5, while a month ago
it was 59.6 and a year ago 68.6. (The index number 100
is based on the average for the three years 1926-1928.)
Continuing, the Association said as follows on July 5:
Of the 14 groups included in the index, three advanced during the latest
week, four declined and the remaining seven showed no change. Grains,
feeds and livestock, fats and oils and textiles advanced. Fertilizer materials, metals, buildings materials and miscellaneous commodities declined.
The advancing groups showed noteworthy gains, but the losses in the
declining groups were comparatively small.
During the latest week 12 commodities showed price advances, while
25 commodities showed declines. During the preceding week 15 commodity prices were higher and 28 commodities were lower. Included in
the list of commodities that advanced during the latest week were cotton,
lard, pork, cattle, hogs, fuel oil, petroleum and calfskins. Among the
commodities which declined were wheat, corn, heavy melting steel, silver,
brick, lumber, gasoline, coffee, rubber, burlap, sulphate of ammonia
and cottonseed meal.
lh The index number and comparative weights for each of the 14 groups
listed in the index are given in the table below:
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
PRICES (1926-1928=100.)
23.2
16.0
12.8
10.1
8.5
6.7
6.6
6.2
4.0
3.8
1.0
0.4
0.4
0.3
,,,,, n
Group.
Foods
Fuel
Grains, feeds and livestock
Textiles
Miscellaneous com
lesAutomobiles
Building materials
Metals
House-furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
bilked fertilizer
Agricultural Implements
sit Err.m. combined
'Latest
1Veek
July 2
1932.
59.6
67.6
44.8
40.1
59.4
87.7
72.0
70.9
78.3
35.9
87.6
67.3
71.9
92.1
00.7
Pro.
ceding
Week.
Month
Ago.
Year
Ago.
covocow-4-1-4m09*.oa
;-.;o6o6W0;-:.4ink.
Per Ceni
Each Group
Bears to the
Total index.
58.9
64.0
40.3
40.8
59.5 .
87.7
72.4
71.0
80.0
35.9
87.6
68.0
71.9
92.2
69.8
55.4
59.8
62.3
69.5
88.4
78.5
79.0
90.5
57.5
88.7
79.9
84.1
95.4
An 5
coo
StRA
Production of Electricity Continues Below Last Year's
Totals.
The production of electricity by the electric light and
power industry of the United States for the week ended
Saturday, July 2, was 1,456,961,000 kwh., according to the
193
National Electric Light Association. No comparisons can
be made with the corresponding week of last year because
in 1931 the week included Independence Day, while this
year the holiday came a week later.
Arranged in tabular form, the output in kilowatt hours
of the light and power companies for recent weeks and by
months since the beginning of 1932 is as follows:
Weeks
Ended.
1932.
Jan. 2....__
Jan. 9_ _ _ _
Jan. 16_ _Jan. 23_ ___
Jan. 30_ ___
Feb. 6--- _
Feb. 13.._-_
Feb. 20____
Feb. 27____
Mar. 5_ __.
Mar.12____
Mar.19
Mar.26____
Apr. 2
Apr. 9_-_
Apr. 16____
Apr. 23_ _ _ _
Apr. 30__-_
May 7____
May 14___
May 21._-_
May 28_ __
June 4____
June 11____
June 18_ __ _
June 25_
July 2_ _ _ _
MonthsJan nary - - _
February. March
Ann!
1931.
1,523,652,000 1,597,454,000
1,619,265.000 1.713,508,000
1,602,482,000 1,716,822,000
1,598,201,000 1,712,786.000
1,588.967.000 1,687.160,000
1,588,853.000 1.679.016,000
1.578.817,000 1.683.712,000
1,545,459.000 1,680,029,000
1,512,158,000 1,633,353,000
1,519,679,000 1,664,125,000
1,538,452,000 1,676,422.000
1,537,747,000 1,682,437.000
1,514.553.000 1,689,407,000
1,480,208,000 1,679.764,000
1,465,076,000 1,647,078,000
1,480.738,000 1,641,253,000
1,469,810.000 1.675.670,000
1,454.505,000 1.644.437,000
1,429,032,000 1,637,296.000
1,436,928,000 1,654,303,000
1,435,731,000 1,644,783,000
1,425,151,000 x1,601.833.000
x1,381.452,000 1.593.622.000
1,435.471,000 1.621.451.000
1,441.532.000 1,609.931.000
1,440,541,000 1.634.935.000
1,456,961,000 51.607,238,000
1930.
1929.
1,680,289.000
1,816,307,000
1,833,500,000
1,825,959,000
1,809,049,000
1,781,583,000
1,769,683,000
1,745.978,000
1,744,039.000
1,750,070.000
1,735,673.000
1,721,783,000
1,722,587,000
1,708.228,000
1,715,404,000
1,733,476.000
1,725,209,000
1,698,389,000
1,689,034,000
1,716,858.000
1,723,383,000
1,659,578.000
1.657.084.000
1,706.843.000
1,697.809.000
1,703.762.000
1,594,124,000
1932
Under
1931.
1,542,000.000 4.6%
1,733,810,000 5.57
1,736,729.000 13.7%:
1,717,315,000 6.7%
1,728,203,000 5.8%
1,726,161,000 5.4%
1,718,304,000 6.2%
1,699,250,000 8.0%
1,706,719,000 7.4%
1,702,570.000 8.7%
1,687,229,000 8.2%
1.683.262.000 8.6%
1,679,589,000 10.3%
1.663.291,000 11.9%
1,696,543,000 11.1%
1,709,331,000 9.8%
1,699,822,000 12.3%
1,688,434.000 11.5%
1,698.492,000 12.7%
1,704,426.000 13.1%
1.705.460,000 12.7%
1.615.085.000 112.2%
1.689,925,000 I
1,699,227,000 11.5%
1.702.501.000 10.5%
1.723.428.000 11.9%
1,592,075,000
7.014,066,000 7.439,888.000 8.021,749,000 7,585.334,000 5.7%
6.518,245.000 6,705.564,000 7.066.788,000 6.850,855.000 y6.1%
6,781,347.000 7,381.004.000 7,580.335.000 7.380,263.000 8.2%
ft 502 495 nnn 7 102 ROI 1100 7410 lei non 7 912c 220 non 1940Z.
x Including Memorial Day. y Change computed on basis of average daily
report. z Including July 4 holiday.
Note.-The monthly figures shown above are based on reports covering approxi •
mately 92% of the electric light and power industry and the weekly figures are
based on about 70%.
Electric Output for Public Use in the United States
Declined Approximately 10% in May 1932 as Compared with the Same Month Last Year.
According to the Division of Power Resources, Geological
Survey, production of electricity for public use in the United
States amounted to about 6,628,893,000 kwh. during the
month of May 1932, a decrease of approximately 10% as
compared with the same period last year when output totalled
nearly 7,645,150,000 kwh. Of the total for the month of
May 1932 there were produced by water power 3,013,258,000
kwh. and by fuels 3,615,635,000 kwh. The Survey reports
as follows:
PRODUCTION OF ELECTRICITY FOR PUBLIC USE IN THE UNITED
STATES (IN KILOWATT-HOURS),
Marion.
Total by Water Power and Fuels.
March.
April.
May.
New England
506.544.000 475.365,000 428.484,000
Middle Atlantic- - _ - 2,045,200,000 1,792,846.000 1,720,219.000
East North Central_ 1,640,305.000 1,491.743,000 1,468,853,000
West North Central. 482,865,000 431.537,000 442,155,000
SouthAtlantic
855,737,000 834.354,000 781,877,000
East South Central- 308,546,000 280,102,000 281.337.000
Wxet South Central- 309.141,000 312,797,000 314.661.000
Mountain
222,510,000 204,322.000 207.428.000
Pacific
931.128,000 959,133,000 983.879,000
Changes in Output
from Previous Year.
April.
May.
-10%
-8%
-15%
-8%
-10%
-13%
-10%
-24%
-12%
-18%
-10%
-15%
-8%
-15%
-15%
-12%
-29%
-10%
Total for U.8_ .._ _ 7,301.976.000 6.782.199,000 6.628.893.000
-11% -13%
The average daily production of electricity for public use in May was
213.800.000 kwh., about 5% less than the daily production in April; the
normal change from April to May based on 12 years of records is a decrease
of 1.5%.
The daily production of electricity by the 1100 of water power in May
was less than in April and leas than in May 1931.
TOTAL MONTHLY PRODUCTION OF ELECTRICITY BY PUBLIC
UTILITY POWER PLANTS IN 1931 AND 1932.
1931.
Kw. Hours.
1932.
Kw.Hour:.
January _ - - _ 7.956,010,000 7,542,624,000
February _ _ _ 7,169,815,000 7,002,151,000
March
7,887,713.000 7,301,976,000
April
7.655,472,000 6,782,199,000
May
7,645.150.000 6,628,893,000
June
7,528.592,000
July
7.771,992,000
August
7,629.920,000
September _ 7.540.377,000
October _ _ _ _ 7.764,889.000
November__ 7,406,165.000
December.-- 7,773,286,000
Total
91.729.390.000
Produced by
Water Power,
1931.
Under
1930.
1932
Under
1931.
1931.
1932.
8%
6%
4%
5%
5%
5%
a6%
7%
11%
13%
30%
30%
34%
41%
41%
41%
42%
42%
46%
45%
2%
3%
3%
5%
4%
4%
__
____
___
____
35%
32%
29%
27%
28%
35%
--_-----
401
____
_---
22%
a Based on average daily Production.
The quantities given in the tables are based on the operation of all
power
Plants producing 10,000 kwh. or more per month, engaged in generating
electricity for public use, Including central stations, both commercial and
municipal, electric railway plants, plants operated by steam railroads
generating electricity for traction, Bureau of Reclamation plants, public
works plants, and that part of the output of manufacturing plants which is
sold for public use. The output of central stations, electric railway and
Public works plants represents about 98% of the total of all types of plants.
The output as published by the National *Electric Light Association and
the "Electrical World" includes the output of central stations only. Re-
194
Financial Chronicle
ports are received from plants representing over 95% of the total capacity.
The output of those plants which do not submit reports is estimated;
therefore, the figure of output and fuel consumption as reported in the
accompanying tables are on a 100% basis.
[The Coal Division. Bureau of Mines, Department of Commerce, cooperates in the preparation of these reports.]
Business Activity in Boston Federal Reserve District
During May Reported Lower Than April.
The Federal Reserve Bank of Boston in its July 1 "Monthly
Review" states that "the level of business activity in New
England during May was lower than in April, and there was
therefore a diminution in the volume of industrial activity
during each of the first five months of 1932, when allowances
had been made for customary seasonal changes." The Bank
adds:
There was a slackening of more than the seasonal amount in the rate of
activity in the textile industry in this district between April and May, with
a decrease in the volume of cotton consumption and wool consumption for
the fifth consecutive month this year. Silk machinery activity also declined
more than usual from April to May, but increased between March and April.
The building industry in New England failed to reflect the customary
increase in activity between April and May, and the volume (square feet)
of residential building contracts awarded in May, adjusted for seasonal
influences, dropped to new low levels at 22.2% of the 1923-24-25 average,
and the volume of commercial and industrial contracts further declined to
less than 13% of the 1923-24-25 average. Total estimated production of
boots and shoes in New England was moderately less in May than in April,
but wasapproximately 20% lower than in the corresponding month a year ago
and there was a constant decline in shoe production between February and
May this year. Employment and payroll data for manufacturing establishments in Massachusetts, as reported by the Massachusetts Department
of Labor and Industries, showed further decreases in May from April,
amounting to 7% in the number of wage-earners employed, 11.1% in the
aggregate weekly payroll, and 4.4% in the average weekly earnings per
person employed. Although the number of freight carloadings (merchandise and miscellaneous) in New England is usually larger in May than
in April, this year there was a decrease, resulting in the smallest May total
on record for these classes of New England carloadings. The number of
commercial failures in this district during May exceeded that during the
corresponding month of 1931 by 35.8%, while total liabilities were 0.7%
greater this year. The amount of new ordinary life insurance written in
New England during May was 30.5% less than in May a year ago, while the
while the cumulative trtal for the first five months of 1932 was 174% leas
than in that period of 1931. Registrations of new automobiles in New
England during May were 44.7% less than in that month a year ago, while
for the first five months the total was 44.6% less this year. Sales of reporting retail establishments in this district during May were 19.4%
smaller than in May 1931, and preliminary reports indicate that during the
first half of June Boston department store sales were 23% less than in the
corresponding period a year ago. Money rates remained easy during
May and June.
No Marked Decline Noted in Trade and Industrial
Activity in Cleveland Federal Reserve District
During May-Rubber and Tire Industry: Showed
Practically No Change-Conditions in Retail and
Wholesale Trade.
"Trade and industrial activity in the Fourth (Cleveland)
District in May continued irregular though no marked decline
in general was apparent," states the Federal Reserve Bank
of Cleveland. "Weakness was most pronounced in the iron
and steel industry, operations in the entire country receding
from 25% of capacity in the third week of May to about 16%
in the third week of June." The Bank in its "Monthly
Business Review" of July 1, also says:
Normally there is a seasonal falling-off in steel activity in this period.
Local mills, particularly at Cleveland, were operating at higher-thanaverage levels in mid-June supplying material for the automobile industry
which experienced a considerably-greater-than-seasonal increase in May
The
and continued to show improvement in the first three weeks of June.
car.
upturn, however, was almost entirely due to production of one small
May production was still more than 40% below the same month of 1931.
to
April
from
Reristrations of' new passenger cars increased about 11%
May in the principal counties of the district, but they were still 46% below
the same month last year.
Tire production and shipments increased sharply prior to the date the
circumstances
new tax became effective, but this was simply due to unusual
and not to any marked increase in demand.
than in
Value of building contracts awarded in May was 28% higher
below
April, a greater-than-seasonal increase, but was more than 60%
contracts
May 1931. The upturn was largely caused by an increase in
for highways and waterfront developments.
Shoe production increased from April to May, but was 9.5% below May
last year.
1931. In the first five months production was slightly under
Manufacturers reported an improvement in demand for women's medium
and low-priced footwear and also a better collection situation.
Ohio and
Life insurance sales slumped in May and were 26% lower in
Pennsylvania than in May last year. For the year to date the amount of
new life insurance sold was down 15% from a year ago.
prices, retail
After allowing for usual seasonal changes and the decline in
changed from
trade, as reflected in department store sales, was little
than in May
April to May. but the total dollar volume Was 26% smaller
25% lower
last year. Wholesale trade fell off in May and was about
than a year ago.
shipsmall,
quite
been
The volume of lake traffic so far this season has
same period last year and
ments of bituminous coal being 27% below the
shipped in 1931.
those of iron ore only 6% of the tonnage
a month
Agricultural conditions in mid-June were less favorable than
average for the entire country.
earlier, though relatively better than the
is nearly
condition,
1
June
the
on
based
Indicated winter wheat production,
preceding five years, whereas the
15% above the average harvest of the
below the five-year average.
entire country's crop is indicated to be 25%
the fact that
Indications point to a large barley tobacco acreage despite
earlier estimates predicted a reduction.
July 9 1932
The Bank reports as follows regarding the rubber and tire
industry:
Basic conditions in the rubber and tire industry showed practically no
change in May and early June. though a decided spurt in sales and production occurred after the passage of the Revenue Act. The April 1
census found stocks of independent tire dealers at unusually low levels,
but this condition apparently has been corrected to a considerable degree
as dealers preferred to stock up heavily before the tax became effective
and thus benefit temporarily from the increase since the tax is to be passed
on to the consumer through higher prices.
Most tire manufacturers announced price increases of 11% on tires and
15% on tubes, effective June 21, to take care of the new Federal taxes
amounting to 4 cents a pound on tubes and 2y, cents on tires. The advances are somewhat larger than the increased costs resulting from the
taxes, thus affording a small increase in income to the tire companies themselves. This is the first upward movement in recent years and marks a
reversal of the successive slashes which have reduced tire prices to the
lowest levels in history.
The increased dealer buying has been so marked that, in addition to
drawing heavily on stocks of finished tires, it necessitated an expansion in
factory operations. The upturn, however, was regarded as purely temporary, since the sharp increase in shipments will build up dealer stocks
to unusually high proportions in relation to current demand.
Latest complete monthly figures cover April operations which show
replacement tire sales up about 25% after allowing for seasonal variations.
Shipments of tires and tubes exceeded output, the former for the first time
since December 1931 and the latter for the first time since January. According to the figures, estimated to represent 80% of the industry as released by the Rubber Manufacturers' Association, production of casings
declined from 2,801,602 in March to 2,579.768 in April and was 29%
below output in April 1931. In the four months ended May 1 output was
down 16% from the same period of 1931. April shipments were up 25%
from March, but were 25% below April 1931. There were 7,877,000
casings in hands of manufacturers on May 1, as against 8,025,000 on the
same date last year.
Employment in May at factories in this district declined 1% from April
in contrast with a five-year average increase of 2%. Compared with May
1931 employment in the latest period at 24 concerns was down 8%.
Consumption of crude rubber in May increased from the preceding
month, but at 29.197 long tons compared with 37.817 tons used in May
1931. Despite the fact that imports dropped 13% from May to April,
they still exceeded consumption and were 1.6% ahead of May 1931.
Stocks of rubber on hand increased in May to 346,231 long tons, and
future prices on the Rubber Exchange for July No. 1 standard contract
dropped to a new low of 2.58 cents a pound in mid-June.
Details regarding wholesale and retail trade are given as
follows by the Bank:
Retail Trade.
Fourth District department stores reported their dollar volume of sales
in May 26% smaller than in the corresponding month of 1931; in the first
five months the decline in volume was 25%. The reduction from April
was slightly more than the estimated seasonal amount, but if allowance
is made for the decline in prices, which continued during the month, there
apparently was little change in actual volume of May department store
trade from April in the entire district. The most marked declines in the
month were shown at Wheeling and Youngstown stores where a falling off
of 35% was experienced from last year. Pittsburgh stores showed a reduction of 30%. Toledo 29% and Akron 26%. Sales at Cleveland were
down 20%. Cincinnati 21% and Columbus 22%•
In the more important individual departments the smallest decline
-9%-was in sales of house dresses and aprons. Other reductions ranged
from 17% in neckwear and scarfs to 40% in jewelry, silverware, gloves,
millinery and women's coats, and over 50% in musical instruments and
radios. In the basement departments sales were down only 23% in May.
The seasonally adjusted index of stocks at retail was 62.7% of the 19231925 monthly average in May and was unchanged from the preceding
month for the first time since last September. Stocks had a 17% lower
retail value on May 31 than a year ago. This is almost identical with the
reduction in retail department store prices as shown by "Fairchild's" index,
which on June 1 was 17.7% lower than a year previous. The stock turnover rate in May was smaller than in April and in the four months, February to May, was only 1.09 as against 1.23 in the same period of 1931.
The ratio of credit to total M168 was slightly higher in May than in April
and showed a smaller decline from last year-2%-than in April.
Accounts receivable on April 30 were collected at a lower rate in May
-30%-than a year ago, the reduction being about 11%.
Sales at 47 furniture stores in May were 44% below the same month
last year and down 39% in the first five months.
Collections also were
down. In the furniture departments of department stores sales were off
35% in May.
Wearing apparel store sales were off 27% in both May and the first
five months.
May chain grocery and drug sales, per individual unit operated, were
unchanged from April, but the former were 7% below a year ago. In the
first five months the reduction was nearly 8%. Chain drug sales wero
off 16% in May and 12% in the five months from corresponding periods
of 1931.
Wholesale Trade.
All reporting lines of wholesale trade except hardware showed declines
from April to May and in the latter month the reductions from the corresponding period of 1931 were larger than in the first four months of this
year. All wholesale trade in May was only 53% of the 1923-1925 monthly
average, a reduction 0( 25% from May 1931.
Hardware sales increased 7.5% from April to May, but in the latter
month were still 22% below a year ago and in the first five months of 1932
were down 25% from the same period of 1931. Collections are slow, the
decline in the ratio of those outstanding on April 30, which were collected
in May. being over 10% from a year ago.
In the other reporting lines grocery sales were off 24% in May and 22%
in the five-month period; May dry goods sales declined 38% and were 36%
smaller in the first five months, and drug sales were down 17% in the
month and 14% up to June 1 from similar periods of 1931.
Collections in all lines are down, the reduction in the collection ratio
being about 3% in drugs, 10% in dry goods and 17% in groceriee.
Wages of Indianapolis Building Trade Workers Increased 570-To Be Effective Until December.
Wages of workers in the building trades in Indianapolis
were increased 5% on July 1, it was announced by Otto N.
Mueller, Indianapolis architect, who has been active in
Financial Chronicle
Volume 135
adjusting wages of building workers in the city. The
Indianapolis "Evening News" of July 1, from which the
foregoing is taken, also says as follows:
The wage increase was in accordance with an agreement reached last
winter with officials of various building trades unions. At that time
wages were reduced 20% with the understanding that there would be
an increase on July 1.
The new scale of wages will remain in effect until December, at which
time there will be a conference at which wages will again be adjusted.
with costs of material at that time as a basis. Whether the wage scale
will increase or decrease then will depend on the trend in material costs.
The wage increase will affect several thousand building trades workers
in Indianapolis.
Paper and Pulp Industry in April-Decrease Noted in
Total Paper Production by American Paper and
Pulp Association.
According to identical mill reports to the Statistical Department of the American Paper and Pulp Association from
members and co-operating organizations, the daily average
of total paper production in April decreased 6.6% under
March and 16.1% under April 1931. The daily average
wood pulp production in April was 3.0% below March 1932,
and 16.9% below April 1931. The Association's survey
issued June 30, continues:
Compared with April a year ago, the daily average production registered
a decrease in the following grades: Newsprint, uncoated book, paperboard,
wrapping, bag, tissue, writing, hanging and building papers. Compared
with March 1932, the following percentage decreases were registered in
the daily average production: Newsprint, 5.0%; paperboard, 9.5%; uncoated book, 5.1%; tissue, 13.1%; writing, 13.1%; bag. 10.8%, and building. 6.9%.
The four months' cumulative total of production of paper was 9.5%
below the corresponding period in 1931. while shipments were 8.8% smaller
than a year ago. All paper grades, excepting bag paper, registered decreases in production at the end of the four-month period as compared with
the end of the four-month period in 1931.
The four months' cumulative total of wood pulp production for 1932
was reported as 8.5% below the level of the same period in 1931.
Total shipments of wood pulp to the outside market were 24.1% below
the level of the four months' total of 1931. Kraft pulp shipments to the
open market were greater than in the four months of 1931.
Total wood pulp inventories showed an increase, and at the end of April
were 8.9% above the level of April 1931. All grades, excepting kraft and
soda pulp, showed inventories above the level of April 1931.
REPORT OF PAPER OPERATIONS IN IDENTICAL MILLS FOR THE
MONTH OF APRIL 1932.
Grade.
Production,
Tons.
Shipments.
Tons.
Stocks on Hand
End of Month,
Tons.
91,235
65.169
135,249
41,944
10,704
22.284
5,719
1,548
4,541
13,960
94.296
65,595
135,713
41.620
10.885
22,274
6.328
1.754
4.824
14,774
35,417
39.086
57.610
40,692
5.698
44,299
6,945
3,398
2.829
15,792
392,353
1,633,086
1.804.107
398,063
1.643,750
1.801.846
251,766
251.766
275.332
Newsprint
Book, uncoated
Paperboard
Wrapping
Bag
Writing, &a
Tissue
Hanging
Building
Other grades
Total all gradesApril 1932
4 mos. 1932
4 mos. 1931
REPORT OF WOOD PULP OPERATIONS IN IDENTICAL MILLS FOR
THE
MONTH OF APRIL 1932.
Shipped Dur- SteCk3 on Hand
Used During hip Month. End of Month.
Month. Tons.
Tons.
Tons.
Grade,
Production,
Tons.
Oroundwood
Sulphite news grade
Sulphite bleached
Sulphite easy bleaching
Sulphite mitseberlich
Kratt pulp
Boda pulp
ptup-Other grades
74,660
25,861
18.880
1.479
4,265
22,706
14,885
256
65,820
23,797
16,887
1,384
2.247
17.862
12,738
452
1,377
1,292
1,412
109
1.636
4.921
2.137
48
67.851
6,780
3,123
1,298
2.216
3,850
2.491
96
162,992
664,363
725,894
141,187
598,459
643.152
12,932
54,766
72.169
87.705
87.705
80.522
Total all grades-April 1932
4 mos. 1932
4 mos. 1931
Industrial Situation in Illinois by Industry During May
Reviewed by Illinois Department of Labor-Employment and Payrolls Show Decreases Between
April and May.
"Decreases of 2.4% in employment and 5.3% in payrolls
in May as compared with April, were reported by 1,435
Illinois industrial establishments," says Howard B. Myers,
Chief of the Division of Statistics and Research of the
Illinois Department of Labor in reviewing the industrial
situation in Illinois. "These figures reflect the continued
decline in the industrial activity of the State. Manufacturing industries showed a decline in employment of 2.7%,"
continues Mr. Myers, "and in payrolls of 5.5%, while nonmanufacturing industries showed decreases of 1.8% and
5.1%, respectively, in employment and payrolls." Under
date of June 18, Mr. Myers further said as follows:
Nominal man-hours of work were computed from data on
employment and
average operating hours reported by 1,029 establishments.
The total
195
showed a decrease of 2.5% from April to May; manufacturlhg plants snowed
a decrecke of 3.0%, and non-manufacturing concerns, 1.5% •
Employment and payrolls in Illinois industries normally show little
change from April to May. Records for seven years preceding 1930 Indicate an average decrease of .2 of 1% in number of wage earners and an
average increase of .3 of 1% in total wage payments. Since 1930 the
Percentage decline from April to May has become increasingly pronounced.
In May 1930,employment declined 1.4%, and payrolls 1.6%,in May 1931.
the declines were 1.6 and 2.8%, respectively, while in May 1932 the dc.
creases were 2.4% in employment, and 5.3% in payrolls.
The weekly earnings for all employees averaged $21.47 in May as against
$22.64 in April. Average weekly operating hours in reporting firms dedined to 38.4 in May from 39.0 in April.
Wage reductions were reported by 88 establishments, affecting 15.656
employees, or 5.9% of the total number of wage earners in the 1,435 establishments reporting. The great majority of the 15,656 employees whose
wages were reduced, received a 10% cut.
Two manufacturing groups, stone, clay and glass products, and food
products, showed increases in employment and payrolls in May as compared with April. Increases of 2.9% in employment and 3.1% in payrolls
In the stone, clay and glass products group were insufficient to offset the
losses experienced in April when glass factories curtailed operations extensively and several brick-yards closed down entirely. In the food products
group increases of 3.4% in employment and 3.3% in payrolls compared
favorably with the usual seasonal gains for this group. Thirteen meat
p
packing
acking
repprted increases of 4.7% in both employment and
figures
The chemicals, oils and paints group showed an irregular movement.
Employment decreased .2 of I% following a I% increase in April, while
payrolls increased 2.0% after a 4.9% drop in the preceding month.
Six of the main manufacturing groups showed decline in both employment and payrolls. Metals, machinery and conveyances reduced employment 2.8% and payrolls 7.9%. The decline in payrolls is the most
drastic reduction since last November. One of the thirteen industries in
this group showed a movement contrary to that of the group as a whole.
Automobiles and accessories increased employment 29.5% and Increased
payrolls 48.0%. Brass, copper, zinc and other metals decreased payrolls
7.9%, and electrical apparatus decreased payrolls 15.9%. but both Industries increased employment slightly. In the sheet metal work and
hardware industry, employment decreased 1.3%, but payrolls increased
2.5%. Cars and locomotive shops reported the largest percentage declines.
20.1% in employment and 26.9% in payrolls. Agricultural implements
continued to curtail operations, decreasing employment 19.1% and payrolls
15.9%. Machinery also reduced operations extensively, decreasing employment 3.0% and payrolls 14.2%. Instruments and appliances and
watches and jewelry contributed substantially to the general decline. The
Iron and steel industry showed decreases of 6.8% in employment and
5.9%
in payrolls.
The wood products group decreased employment 11.5% and payrolls
16.5%. All I dustriee in this group contributed to the decline in employment and all but saw and planing mills to the decrease in payrolls. The
furniture and cabinet work industry reported the most severe decline, 18.2%
in the number of wage earners and 27 7% in total wage payments
The furs and leather goods group experienced a sharp decline from April
to May,11.1% in the number of wage earners and 27.0% in payrolls. Both
leather and shoe manufacturing industries reported greatly curtailed
operations. In the leather industry employment declined 11.4% and
payrolls 17.3%, the corresponding losses experienced by reporting boot and
shoe factories were 19.4% and 30.3%•
In the printing and paper goods group, edition bookbinding, and the
manufacture of paper boxes, bags and tubes reported gains during the
month
Other industries in this group, however, experienced losses, which
were reflected in the decrease of .8 of I% in employment and 2.2% in Myrolls in the total for the group. The textiles group decreased employment
7.1% and payrolls 6.6%. All industries in this group showed extensive
declines; the decreases in employment ranged from 4.7% in knit goods to
10.4% in cotton and woolen goods. Clothing and millinery declined for
the third consecutive month, between April and May employment in this
group decreased 13.6% and payrolls 24.7%. Five reporting men's clothing
manufacturers experienced declines of 23.3% in employment and 38.3%
in payrolls. Reporting manufacturers of women's clothing increased
employment 4 5% but decreased payrolls .4 of 1%.
Among the non-manufacturing groups, reporting coal mines increased
both employment and payrolls,the services group increased payrolls slightly,
and wholesale and retail trade increased employment to a small degree.
Twenty-eight coal mines employing 350 men in April showed an increase
to 929 men for May. Twenty of these mines have been closed down, with
the exception of a maintenance force, since the expiration of the agreement
between the miners and operators on April 1. Three mines which were
practically closed down in April, resumed operations in May. The services
group, including 48 hotels and 21 laundering, cleaning and dyeing establishments, decreased employment 1.0% but increased payrolls
1.5%• In
May 1931, the services group showed an increase of .3 of 1% in employment
and 10.6% in payrolls. In the trade group employment increased in
department stores, in wholesale dry goods stores, and in mail order houses,
while payrolls showed an increase in wholesale dry goods stores only. The
trade group as a whole showed a gain of .4 of I% in employment and a
loss of 6.4% in payrolls. The payroll figure was affected in part by the
10% reduction in wage rates for milk distributing concerns.
Sixty-two public utilities with a total of 60.972 employees in May, repined decreases of 3.2% in employment and 6.1% in payrolls from the
preceding month. Street railways and the telephone industries contributed
to the decline in employment, and still more heavily to
the decline in payrolls. Railway car repair shops showed the largest percentage loss in this
group, 15.8% in number of men employed and 11.4% in payrolls. The
building and contracting industry, represented by 151 concerns, decreased
employment 8.6% and payrolls 3 5% from the preceding month. Road
construction and miscellaneous contracting showed an upward movement.
but building construction, represented
by 130 contractors, decreased
employment 13.5% and payrolls 16.0%. Reports from 198 additional
building contractors are not included as these firms have not been in operation for some months, and in some cases for over year. The large number
a
of such firms is, however, significant
in reflecting conditions that prevail
in this Industry.
The following analysis was issued by Mr. MYels
on
June 17 regarding the industrial situation in Illinois by cities:
Factory operation- in Minoi • continued to decline in May,as is indicated
by the reports of 1,045 manufacturing concerns. Employment decreased
2.7% and payrolls 5.5% during May as compared with April. Cities
outside Chicago showed declines during May of 5.1% in employment and
7.9% in payrolls of factory workers. Although for several months past
these cities have exhibited greater stability in employment and payrolls
than the city of Chicago, in May they showed greater declines. Since
196
Financial Chronicle
July 9 1932
Rock Island.-Decreases from April to May of 13.3% in employment
have
December. 1931, indexes of the Division of Statistics and Research
11.3% in payrolls were reported by 11 factories. These decreases were
and
payrolls
in
decline
24.7%
a
and
t,
shown a 12.1% decline in employmen
brought about mainly by the closing down of a concern in the textiles group.
losses
percentage
the
twice
tely
approxima
are
losses
These
in Chicago.
Six metals plants showed a slight contraction in payrolls but a small inrecorded for the rest of the State during this five-month period.
crease in employment. One plant manufacturing wood products reported
Eleven of the fifteen cities, including Chicago.for which figures are tabuan increase in payrolls. The unemployment ratio dropped to 148.1 from
to
lated separately, decreased employment of factory workers from April
191.6 the preceding month.
cities,
fifteen
the
of
Two
payrolls.
factory
May, while twelve reduced
Springfield.-Eleven factories reported decreases of 19.3% in employof
Cicero and East St. Louis, increased both employment and payrolls
ment and 17.6% in payrolls. The curtailment of operations in a large shoe
other"
factory workers from the preceding month. The group of "all
factory contributed largely to these losses. A brickyard expanded operacities registered substantial declines during the month, larger than any
tions as did also four metals shops and a textiles concern. The increases
the
than
moderate
more
but
January,
reported for these cities since last
in the two latter Industries were reflected in larger payrolls rather than
a
whole.
as
Chicago
outside
cities
for
the
losses
In employment. The unemployment ratio declined from 128.6 in April
The Illinois Department of Public Works and Buildings reports that
to 122.4 in May.
in May as
highway construction work gave employment to 18.763 men
Sterling-Rock Falls.-Thirteen factories, eleven of which are metals estabOther
compared with 14,155 in April, an increase of 32.6% for the month.
lishments. reported decreases of 15.4% in employment and 9.5% in payrolls.
in the
increase
slight
a
only
was
there
lag
and
to
on
seems
work
constructi
A large agricultural implements plant laid off all but a small number of its
nt offices
demand for farm labor during the month. The free employme
workers, thus contributing heavily to the general decline.
number
ofthe State reported fewer registrations for work as well as a smaller
All Other Gilles.-Decreases of 3.1% in employment and 5.8% in payrolls
positions rising
of places available, the ratio of registrations to available
were reported by 255 factories located in the group of cities classified as
ago
year
a
ratio
ing
correspond
The
May.
in
174.3
from 160.4 in April to
"all other." A gain in both employment and payrolls was reported by
employwas 218.2, considerably higher than the present ratio, although
these cities for stone, clay and glass products industries, in chemicals, oils
A possible
ment conditions at that time were better than they are now.
and paints, and in the food products group. Clothing manufacture regisnt offices
explanation for this may be that registrations at the free employme
tered a gain in employment but decreased total wage payments. All other
unemployed but by
are affected not only by the number of people that are
industrial classifications showed losses in both employment and payrolls.
nt. The
employme
without
been
have
people
these
time
of
the length
with especially large declines in the wood products, furs and leather goods,
many persons
decline in the ratio from the preceding year suggests that
and the textiles groups. The metals group decreased employment 2.0%
are no longer actively looking for work.
and payrolls 7.1%.
of .8 of
Aurora.-Twenty factories in this city reported a slight increase
in payrolls. The
Mr. Myers also issued the following statistics:
1% in employment for May. but a decrease of 10.4%
metals group;
loss in total wage payments was contributed entirely by the
nt. Work
EMPLOYMENT, PAYROLLS AND AVERAGE WEEKLY EARNINGS IN
other industries increased both wage payments and employme
excavations for the
ILLINOIS. MAY 1932.
on two large hospitals is nearly completed while the
RegistraApril.
of
part
new 3210,000 postoffice building started the latter
100
every
to
200.3
averaged
nt
office
PAYROLLS.
tions for work at the free employme
EMPLOYMENT.
places available in May as compared with 229.7 in April.
Index of
Index of
ten
in
12.1%
payrolls
and
9.6%
decreased
Bloomington.-Employment
Per
Payrolls
Average
Enspiornent
Per
the larger share
d
contribute
group
metals
Cent
the
(Monthly
in
Weekly
(Monthly
concerns
Four
Cent
factories.
Industry.
has improved
Average
Change
Average
Earnings
Change
of these losses. The outlook for the construction industry
15
or
April
0)
for
0)
planned
1925-27=10
1925-27=10
15
is
April
church
somewhat, as the erection of a new school and a large
to
Employee
to
ratio from a
May 16 Map May May 15
May
this summer. There was little change in the unemployment
May
may15
available in
1932. 1932. 1931. 1932. 1932. 1931. 1932.
month ago, registrations averaging 148.4 for every 100 positions
May, as Compared with 147.7 in April.
-5.3 42.4 64.8
-2.4 60.4 77.7
reAll industries
-5.5 35.4 59.3 92181:8452
Chicago.-Decreases of 1.1% in employment and 4.2% in payrolls
57.2 74.5
All manufacturing Indusslower rate of
+3.1 28.3 54.8
19.59
70.4
44.1
+2.9
glass
ported by 529 factories of this city indicate a somewhat
clay.
Stone.
food
+1.5 24.7 56.3
21.84
The
75.0
45.3
year.
this
+6.7
Miscell. stone, mineral_
curtailment than has been in evidence since early
5.0
11
2
4
36
45.8 58.7 +12.9 25.0 37.8
+1.1
rewhich
plaster
ion
classificat
cement,
Lime,
industrial
products group constituted the only
+0.8 12.1 34.7
+2.4 27.6 53.4
Brick, tile, pottery
clay and
+2.7 70.1 126.1
20.60
ported gains in both employment and payrolls for May. Stone.
+2.2 67.7 97.2
Glass
,
total
in
out less
-7.9 27.1 52.9
17.30
53.1 72.5
glass products concerns added more workers but paid
Metals, mach., conv'ces.... -2.8 64.6
-5.9 31.1 75.9
90.5
15.04
were reported
-6.8
Iron and steel
wages, Curtailments of more than 5% in the payroll figures
-1-2.5 U.S 93.7
17.06
-1.3 80.1 77.9
millinand
hardy.
w'k.
metal
clothing
Sheet
and
goods,
16.0 39.9
-8.5
15.49
58.6
for metals, wood products,furs and leather
37.8
Tools, cutlery
contributed
-2.9 23.9 43.4
17.03
-3.0 53.4 75.7
ery. A seasonal decline in the manufacture of men's clothing
Cook's & heat's appar_
-7.9 31.1 51.1
for this group.
18.05
70.2
56.8
payments
+1.5
wage
in
&
other
month
zinc
the
preceding
from
cop.,
drop
29.8
Brass,
to the
7.2 12.8
18.56
-20.1 10.5 10.0 -26.9
increase in the
Cars,locomotives
The free employment offices of the city reported a slight
24.22
+29.5 68.4 78.5 +48.0 00.2 73.7
Autos, accessories
-14.2
40.0
58.2
9.3
18
67.3
0
15
57.4
-3.0
unemployment ratio. from 221.0 in April to 213.2 in May.
Machinery
employment
+1.2 54.4 72.8 -15.9 17.8 35.2
Electrical apparatus
Cicero.-Twelve factories reported an increase of 13.1% in
17.28
36.6 69.9 -15.9 20.0 4.4.9
-19.1
implemls_
l
1.0%
and
15.9%
of
Agricultura
decreases
-19.1 23.2 41.1
20.35
and 2.9% in payrolls for May, following
Instrum'ts & appliances -7.1 49.1 69.4
group was mainly
. 11.7
7
89
-5.1 49.6 89.7 -13.1 25.5 47.0
In these items during the preceding month. The metals
Watches, Jewelry
of these months.
-21.0
both
for
------20.0
recorded
ns
fluctuatio
sharp
other
the
for
All
e
responsibl
1-4
9.8
2
.
3
-18.5
53.1
13.78
33.6
May.
in
-11.5
21.2
April to
Wood products
The unemployment ratio increased from 194.5 in
-16.6 17.9 38.1
17.27
32.9 49.4
month while
Saw and planing mills
12.13
Danrilie.-Employment increased 2.3% from the preceding
-18.2 32.4 57.6 -27.7 16.0 42.9
Furn.,cabinet work_
group
food
The
city.
this
8.4 34.7
of
16.12
factories
instets. -15.3 17.3 39.3 -20.0
payrolls decreased 3.8% in twelve
musical
Pianos,
on the 5500,000
U.S -12.6 24.9 40.8
13.34
Work
47.7
payrolls.
products.
and
nt
employme
wood
both
Miscell.
in
showed gains
40.0
-27.0
94.8
67.7
11.93
81.1
begun,
-11.1
has
Home
Furs and leather goods
hospital building at the Danville National Soldiers'
18.90
88.7 100.3 -17.3 59.0 89.0
-11.4
office
Leather
nt
employme
free
+1.6
46.43
46.43
-----causing some increase in buildung activity. The
goods
Furs, fur
places available in May
.. -30.3 30.0 64i
--95I
.
-10.84
.
756
-19.4
-6.7-Boots and shoes
reported 246.7 registrations for work to every 100
22.8 34.3
+8.
2127.
+12.0 28.6 38.7
Miscell, leather goods
as against 232.5 in April.
+2.0
63.9
82.3
86.0
76.0
Chemicals, oils paints
entirely responsible
18.31
62.5 74.1 -12.0 44.0 60.3
Decatur.-Decreases in metals operations were almost
Drugs, chemicals
-0.2 74.4 105.8
in payrolls which were re23.63
0.0 73.0 95.6
Paints, dna, colors_ _
for the losses of 5.2% in employment and 3.6%
-1-6.1 79.2 90.7
a
221878.:041147
76.8 77.7
43.5
showed
factories
Mineral & vegetable oil_
ported by twenty factories of this city. Three garment
73.7
+8.8 51.1
Miscellaneous chemicals -2.8 77.0 93.0 -2.2
wage payments. The
48.9 67.5
74.6 91.1
small increase in the number of workers and in total
Printing and paper goods_
ment ratio of 287.5 as com+0.4 43.0 57.4
79.0
20.02
Paper boxes, bags, tubes +0.4 70.0 87.9
free employment office reported an unemploy
80.7 83.0
-7.4
80.3
-2.2
18.40
_
_
goods_
month.
paper
preceding
the
Miscell,
pared with 299.6 for
8...! 4..3..3
.
-5.1 3
339
. 2
1
5797
1...4
7
58.4 75.7
for this city increased
printing
reporting
Job
factories
one
-TwentyLouis.
East ,St.
84.3 96.2 -2.9 89.4 92.5
-1.4
periodicals
,
Neaspapers
than
offset
more
gain
+19.4
....
_
+8.7
employment 1.0% and payrolls 5.6%. The latter
bindIng„
book
Edition
_
-12,9
glass factory and several concerns
Lithographing & engrav. -3.9 -----the decrease of the preceding month. A
-6.6 80.1
_98:3
-7.1 86.9 90.5
and payrolls, while firma
Textiles
in the food products group increased both workers
-7.1
114.3
105.6
147.8
3160
2
92.2
910
:8
2.
22
-19.4
Cotton, woolen goods
total payrolls but not in employ-3.3 57.0 125.9
-4.7 64.3 97.5
In the metals group registered a gain in
goods
Knit
from
rose
office
employment
-12.7
83.9
46.9
58.4
92.8
141.
-9.1
twine
and
ment. The unemployment ratio at the free
Thread
-8.4 58.7 74.7
86.5 91.0
Miscellaneous textiles- _
116.6 in April to 122.9 for May.
-13.6 52.7 72.1 -24.7 19.8 40.6
employment 27.7%
Clothing and millinery
Joliet.-Twenty-three factories of this city decreased
-38.3
58.3
11.9 31.5
36.7
-23.3
clothing
Men's
reports for this city reflect
53
1
7
1
29916
54.9 57.9 -10.5 38.1 60.9 ;
996. .:73
22
0
and payrolls 25.1% from April to May. The
Men's shirts. furnishings
registrations for work at the
+17.1
22.8
The
25.8
22.3
26.2
group.
-0.5
metals
clothes_
the
in
work
conditions
Overalls,
mainly
.. -10.6
the month, the ratio to
Men's hats. caps
free employment office increased sharply during
3F.is 6-2-.6 10.48
+4.5 8-6:i 108-.1
Women's clothing
from 278.3 in April to 312.8
-6.7 102.0 151.3
11.81
every 100 places that were available increasing
-1.2 122.8 158.3
Women's underwear_
- -55.4
10:8401
n
-33.0 .. _.
hats
in May.
Women's
-51.0 73,4
operations of this city
+3.3
-75.4
66.3
factory
in
+3.4
t
curtailmen
tobacco.
beverages,
sharp
Food,
Moline.-Another
+4.9 70.8 77.4
+4.3 70.8 75.1
23.89
off 17.8% of their workers
feed cereals
laying
Flour,
factories
sixteen
May,
for
reported
was
+5.5 a37.6 058.8
13.55
Fruit, vegetable canning +11.0 a51.2 a63.0
al implements concern sus+7.9 58.1 74.0
-1.1 70.2 79.7
and reducing payrolls 23.8%. One agricultur
Miscellaneous groceries
dent of the free employment
+4.7 72.5 91.4
+4.7 78.2 85.0
meat pkg_
g,
Slaughterin
pended operations entirely. The superinten
-2.7 78.6 93.1
95
projects in the vicinity
994
22...9
229
2
+1.0 90.8 100.8
Dairy products
office reports that State and county road paving
-2.7 50.3 68.3
28.20
Bread, other bak'y prod. +1.2 83.0 74.6
-4.2 33.8 59.5
of Moline are employing 250 men.
54.0 77.5
+1.3
ry
Confectione
were
In
payrolls
5.9%
and
+3.6 67.8 03.2
+4.9 79.2 68.6
Peoria.-Decreases of 1.0% in employment
Beverages
decreases reversed the upward
64
996
62...6
15
2
-23.8 59.0 78.9 -22.1 53.4 72.0
Cigars, other tobaccos
reported by 35 factories of this city. These
industry group
+14.6
82.2
115.7 141.9
74.3
printing
+11.3
and
ice
ed
paper
Manufactur
The
month.
tendency of the preceding
Ice cream
payments largely because
151 ------ 19.63
registered gains in both workers and total wage
9 -----------+. -6.1
Miscell. manufacturing___ ++2182..3
company. Metals shops
26.34
of the resumption of operations by a paperboard
Non-manufacturing Indus. -1.8
ratio
ment
unemploy
-6.4 41.0 8-8-.0
The
Trade wholesale dr retail.. +0.4 575-.it 675-.1
contributed heavily to the general curtailment.
80.1
-5.6
April.
for
108.9
19.43
93.4
87.9
111.3
+0.3
stores
against
as
Department
May
for
119.6
at the free employment office was
21.82
+1.1 05.5 83.6 + 1.6 59.8 66.0
Wholesale dry goods
decreased employment 1.2%
-1.6 58.7 75.9
27.97
57.3 75.4
Quincy.-Fourteen factories in this city
groceries....
Wholesale
payroll
in
April to May. Declines
-4.8 32.9 49.1
17.77
+1.6 47.3 54.9
Mall order houses
and increased payrolls .3 of 1% from
_
___
44.33
-0.3 -------10.0
gains recorded by other reportMilk distributing
for the metals group practically offset the
_ ...
-2.5
.23.76
building
------2.2
in
Jobbing
increase
Metal
little
reports
office
nt
ing industriea. The free employme
+1.5 - --_
17:538
3
___
-1,0
Services
ment ratio is 117.9 for May as
+1.8 ------17.53
_
activity or road work. The unemploy
Hotels and restaurants_ -1.1
8
8477
4.0
-+1.0
-92.6
82:0
-0,1
Laundries
April.
against 115.1 for
819
16
2
-6.1 77.7 99.0
workers in this city con-3.2 80.0 94.6
Public utilities
Rockford.-Employment and payrolls of factory
-1.5 44.4 57.6
32.61
-3.1 89.7 114.6
Water, gas, light & pow
Forty-four factories decreased the
1
65
88.6
-4.8
110.8
2..9
24
102.1
tinued to show sharp curtailments.
-0.4
91.8
Telephone
from April to May. As was the
33.87
-7.0 98.1 119.4
-1.3 79.5 94.1
Street railways
employment 8.4% and payrolls 21.9%
mainly by the decline
caused
were
-11.4
24.50
59.5
86.7
59.5
losses
48.8
the
-15.8
repair
car
month,
Railway
case in the preceding
9
99
4.4 29.5
21..8
8.5 66.0 +129.3
+165.4
products, stone, clay and glass,
Coal mining
of operations in metals plants. The wood
-3.5 20.3 28.6
29.54
-8.6 21.4 42.2
Building, contracting_ _
contributed to the decline while a
80.31
1
5
-16.0
14.5
1.
6
22.8
..
7..
.8
and furs and leather goods groups also
n_
11.8
-13.5
Building constructio
paper goods and the textiles
35.82
+127.7
++731:73
Road construction
small number of shops in the printing and
and payrolls. The free
20.19
-.
-4-.71
7: 1155
30
+82.7
-.
Miscell. contracting-classifications showed increases in both workers
in
open
100 places
every
to
ns
registratio
164.8
reported
office
nt
employme
series has been revised.
index
This
a
May as against 167.5 registrations in April.
213.
Financial Chronicle
Volume 135
Slightly Lowered Shipments Mark Lumber Movement.
Save for a moderate decrease in shipments, there was no
marked change from the previous week in the lumber movement during the week ended June 25, it is indicated in telegraphic reports to the National Lumber Manufacturers
Association from regional manufacturers associations covering the operations of 645 leading hardwood and softwood
mills. Production of these mills amounted to 118,997,000
feet; new business 129,957,000 feet, or 9% above the cut,
and shipments 131,307,000 feet, or 10% above the cut.
A week earlier 649 mills reported production of 118,989,000
feet with orders 9% above and shipments 21% above production. Comparison by identical mill figures for the latest
week with the equivalent period in 1931 showed: for softwoods, 430 mills, production 48% less, shipments 42% less
and orders 42% less than for the week last year; for hardwoods, 153 mills, production 51% less, shipments 36% less
and orders 45% under the volume a year ago.
Lumber orders reported for the week ended June 25 1932
by 477 softwood mills totaled 117,584,000 feet, or 7% above
the production of the same mills. Shipments as reported
for the same week were 119,565,000 feet, or 9% above production. Production was 109,697,000 feet.
Reports from 182 hardwood mills give new business as
12,373,000 feet, or 33% above production. Shipments as
reported for the same week were 11,742,000 feet, or 26%
above production. Production was 9,300,000 feet. The
Association further reports as follows:
Unfilled Orders,
Reports from 416 softwood mills give unfilled orders of 319,159,000
feet.
on June 25 1932, or the equivalent of eight days' production. This is based
upon production of latest calendar year-300-day year—and may be
compared with unfilled orders of 486 softwood mills on June 27 1931, of
645,824,000 feet, the equivalent of 14 days' production.
The 387 identical softwood mills report unfilled orders as 317.074,000
feet on June 25 1932, or the equivalent of eight days' average production, as
compared with 586,075,000 feet, or the equivalent of 15 days' average
production on similar date a year ago. Last week's production of 430
identical softwood mills was 104,627.000 feet, and a year ago it was
200.955.000 feet; shipments were respectively 114,650,000 feet and 198,738.000:
and orders received 112.626,000 feet and 192.608.000. In the case of hardwoods, 153 identical mills reported production last week and a year ago
7.182,000 feet and 14,793,000; shipments 9,681,000 feet and 15,224.000:
and orders 10,423.000 feet and 18,908,000 feet.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders from 216 mills reporting for
the week ended June 25:
NEW BUSINESS.
UNSHIPPED ORDERS.
SHIPMENTS.
Fed.
Feet.
Fed.
Domestic cargo
Domestic cargo
Coastwise and
delivery --__ 21.773,000
delivery
52.358.000 intercoastal _ 23,662,000
Export
9.058.000 Foreign
45,735.000 Export
9,495.000
Rail
18,923,000 Rail
43,007,000 Rail
19.826.000
Local
5,222,000
Local
5,222.000
Total
Total
54,970.000
141,100,000
Total
58,205.000
Production for the week was 51,268,000 feet.
Southern Pine.
The Southern Pine Association reported from New Orleans that
for
118 mills reporting,shipments were 14% above production, and orders
10%
above production and 4% below shipments. New business taken during
the
week amounted to 23.752,000 feet. (previous week 22,008,000 at 116 mills):
shipments 24,773,000 feet, (previous week 24,507,000); and production
21.650.000 feet, (previous week 20,931.000). Orders on hand at the end of
the week at 105 mills were 50.080,000 feet. The 105 identical mills
a decrease in production of 27%, and in now business a decrease reported
of 31%.
as compared with the same week a year ago.
Western Pine.
The Western Pine Association reported from Portland. Ore., that for
122 mills reporting, shipments were 7% below production, and orders
about the same as production and 8% above shipments. New business
taken during the week amounted to 36,492,000 feet, (previous week
30,915,000 at 122 mills); shipments 33,819,000 feet, (previous week 34,002,000); and production 36,398,000 feet, (previous week
39,238,000).
Orders on hand at the end of the week at 122 mills were 144.588,000 feet.
The 103 identical mills reported a decrease in production of 47%, and in
new business a decrease of 37%,as compared with the same week a year ago.
Northern Pine.
The Northern Pine Manufacturers of Minneapolis, Minn.. reported
production from seven mills as 354.000 feet, shipments 1.930,000 feet
and
new business 1,570,000 feet. The same number of mills reported production
91% less and new business 46% less than for the same week a year ago.
Northern Hemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
reported
Wis.,
production
from 14 mills as 77,000 feet, shipments
Oshkosh.
838,000 and orders 794.000 feet. The same number of mills reported production less than A of 1% of production a year ago and new business 13%
less than for the same week last year.
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
production from 168 mills as 8,753,000 feet, shipments 10.634.000 and new
business 10.987.000. The 139 identical mills reported production 47%
less and new business 48% less than for the same week a year ago.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh. Wis., reported production from 14 mills as 547,000 feet, shipments 1,108,000 and orders 1,386,000. The same number of mills reported
production 76% less and new business 5% less than for the same week last
year.
197
Flour Output Continues at a Lower Rate.
General Mills, Inc. summarizes the following comparative
flour milling activities as totaled for all mills reporting in the
milling centers as indicated:
PRODUCTION OF FLOUR.
•
Northwest
Southwest
Lake, Central and Southern
Pacific Coast
Production
5 Weeks
Ended
July 2.
Produclion
Same
Period
Year Ago.
Barrels.
1,418,574
2,015,029
2,024,050
269,521
Barrels.
1,692,870
1,901,378
2,065,801
414,967
Cvmulattre Cminulaths
Produttion Produdion
Since June Same Period
30 1931.
1930-1931.
Barrels.
17,997,069
24,636,766
22,910,549
4,297,792
Barrels.
22,350,106
24,921,436
25,604,069
4,350,896
Grand total
5,727,174
5.075.016 P9.837,176 77.226,507
Note.—This authoritative compilation of flour ml ling activity represents
approximately 90% of the mills in principal flour producing centers.
Advance in Hog Prices—Highest This Week Since Last
October.
Regarding the marked advance in hog prices a dispatch,
July 6 to the New York "Times" said:
The market for hogs was buoyant again to-day here, making the 28th
consecutive day on which swine have advanced in value. Prices now are
$1.80 to $2.05 a hundredweight above the low levels of a little more than a
month ago and are the highest since last October. Gains of 10 to 20 cents
were registered to-day, and all buyers, including the larger packers, were
aggressive. The peak gain was 15 cents, the price going to $5.35. a recovery
of 62% from the low mark, while the average also moved up 15 cents to
$4.95. a 57% recovery. Hogs now are selling at $4 to $4.50 a head more
than they were at the low period, or approximately $300 a carload.
Further advices, July 7, to the same paper stated:
The advance in prices of hogs was halted to-day, ending a 28-day upturn,
the longest rise in recent years. Some grades fell back 5 to 10 cents a hundredweight, but reports from the wholesale trade were encouraging and
the larger packers bought aggressively when weakness appeared. The top
at $5.35 equaled the previous day's peak, but this price was paid sparingly.
The average was down Scents to $4.90. Most sales were made at 84.60 to
$5.20, with light lights quoted at $4.80 to $5.25; lightweights, $5 to $5.30;
medium weights, $5 to $5.30; heavy weights, $4.80 to $5.20. and packing
sows, $3.85 to $9.65. Packers bought 9.700 and shippers 3.000, with 5.000
left over, mostly held off the market. Receipts were 18,000, with 14,000
estimated for to-morrow.
Protest by 30,000 Belgians Against Cut in Unemployment Dole and Proposed Duty on Imported Wheat.
Brussels advices, July 4, to the New York "Times" said:
Thirty thousand unemployed, asserting they represented 300,000 all
over Belgium, marched through the streets of Brussels to-day to protest
against a decrease in the unemployment dole and the proposed duty on
Imported wheat. The demonstrators were mostly youths in their twenties.
Except for the "famine brigade," which was clad in rags, they were
respectably dressed and apparently well fed.
An emergency ministerial council has been called to consider the question of a miners' strike voted for Wednesday.
Record Grain Crop Expected by Soviet—Increase of
8,200,000 Tons Over Last Year Predicted Despite
Reduced Acreage.
The New York "Times" reported the following from Moscow, July 4:
According to present indications the current year's grain crop would be
the biggest in the history of Russia, Valerian Ossinsky, head of the State
Statistical Bureau, announced to-night.
The yield per hectare [2.47 acreal probably would be at least six
pounds greater than last year, he said, and the total crop harvested about
8,200,000 tons greater. H. Ossinsky indicated that it was too early to
attempt to determine the exact figures. The actual acreage sown was
somewhat less than last year, but this factor is expected to be more than
offset by an increase in the yield per hectare.
The decrees of this spring, under which collective farmers and individual
peasants received permission to sell their surplus on the open market, also
are expected to have a beneficial effect during the forthcoming harvest.
Big Grain Fleet Leaves Lake Ports.
The following from Fort William, July 3, is from the New
York "Times":
Carrying 2,345,000 bushels of grain, fourteen vessels cleared from lakehead ports yesterday, one of the largest grain flotillas to leave Fort William
and Port Arthur this year. Wheat shipped out amounted to 2,125,000
bushels.
Statement by Canadian Cotton Mill Owners on Con
ferences with Representatives of British Cotton
Industry—Say Latter Have Inaccurate Knowledge
of Canadian Situation.
Couched in emphatic terms, a statement was issued at
Montreal on July 4 by Canadian cotton mill owners respecting the recently concluded conferences with representatives
of the British cotton industry. Canadian Press accounts
from Montreal, from which we quote continued:
The statement is in reply to the report made to J. II. Thcsnas, Secretary of State for the Dominions, by members of the British delegation
on their return to England from Canada.
"The British delegates show a grossly inaccurate knowledge of the
Canadian situation," the statement says, "based upon the prejudiced views
of the Manchester merchants and Canadian importers."
The Canadian cotton men pay respect to the courtesy and friendliness
of John H. Grey, who headed the British delegation, but contend that
198
Financial Chronicle
July 9 1932
Such a situation will probably force
Lanthe British requests were put in the form of "demands" which the
cashire men declined to modify.
the
from
"The reluctance to discuss openly and frankly all questions
Canadian viewpoint, seeing that it was the Canadian market which was
to be divided, came wholly from the British side," the statement says.
"The original proposals made by the British delegation for division of
the Canadian market for manufactured cotton goods between domestic
and British mills were excessive," it is contended, "and quite unacceptable to the Canadian delegation as a basis for discussion. From the outset
of the Montreal conferences the British proposals showed little knowledge
of or concern for the actual position of the Canadian industry. The
proposals were excessive and were admitted to be so by sponsors."
The Canadian cotton men contend that Canadian proposals would have
substantially increased the volume of importation of cotton goods into
Canada from Great Britain. It was impossible, however, for them to accept the British program, which, they contend, would be dangerous to
the whole structure of the Canadian industry.
"Considerable emphasis was laid by the British delegation on the extent of the Canadian market for cotton goods," the statement declares.
"Their figure of 401,000,000 yards annually is excessive. Import cotton
trade was placed at 125,000,000 yards annually, again an extravagant
now way above unfilled orders.
still more mill curtailment.
"Last year at the end of May stocks were 301,900,000 yards and unfilled orders 248,600,000 yards. Cotton consumption in the United States
is reflecting the poor market for cotton textiles. In May the consumption
was only 332,000 bales compared with 367,000 for April and 465,000
for May last year.
"Spinners margin increased in percentage from 183 during April to
189 for May. The actual pence margin, on the other hand, declined from
4.05 d (pence) to 4.01 d (pence). The average margin for May last year
was 173 in ratio and actual pence almost exactly what it is now, or
4 d (pence).
figure.
"Canadian estimates of the annual market, based on very accurate
knowledge, are 325,000,000 and 85,000,000 yards, respectively. Of this
latter, British mills are already supplying about 52,000,000 yards. Immediately the Canadian proposals should increase British imports of
cloth to around 70,000,000 yards and imports of yarns by from 1,500,000
to 2,000,000 pounds, from about one-half, as at present, to 100% of
the total cotton yarn import trade."
The plant is expected to begin operation sometime in the fall and
will have a capacity of 1,000 pounds a day. Locally grown cotton, will
be purchased as long as the quality is as good and the price as low
as the American product, and the quantity sufficient.
Until now, Salvador's yarn requirements have been supplied by Japan
and the United States, the former furnishing by far the larger proportion. In 1930, yarn imports amounted to 1,367,535 pounds. It is apparent, therefore, that the proposed plant will be able to supply only
about one-quarter of Salvador's total yarn requirements.
World Carryover of American Cotton Aug. 1 Estimated
at Over 13,000.000 Bales by Dr. Cox of Bureau of
Business Research of University of Texas.
On June 1, the indicated supply of cotton in the United
States was 10,896,000 bales, compared with 7,764,000 bales
on the same date last year, according to Dr. A. B. Cox,
Director of the University of Texas Bureau of Business
Research and world recognized cotton expert. This is the
largest supply ever had on this date. This very large
supply is due to a large carryover last August 1 of 6,369,000
bales, next to the largest crop on record or 16,595,000 bales,
and consumption much below normal. Total disappearance
from the United States this year to date has been only
12,168,000 bales. For the same period in the big crop year
of 1926-27 the disappearance was 16,046,000 bales. Dr. Cox
on June 30 in his comments said:
"Stocks of American cotton in European ports and afloat to Europe
on June 1 were 157,000 bales less than last year at the end of May. On
the other hand stocks and afloat to the Orient were 417,000 bales more
than last year. Price calculations based on percentage changes in the
June 1 balance sheet indicates a New Orleans spot price as of June 14
of 5.93 cents. When read from the price supply chart the indicated
New Orleans spot price is 6.12 cents.
"There are a number of factors which make price calculations based
on official supply and demand figures very uncertain. As already
pointed out, the changing prospects for the new crop are perhaps more
Important now than the prospective carryover, for the latter is fairly
well known, and known facts have been discounted in the price. In
order to give farmers, bankers, merchants and others interested as much
information as possible about cotton values in terms of the probable
supply for the coming year, a balance has been constructed in which the
new crop has been included. It was worked out based on the acres in
cultivation July 1, less 3.4% abandonment. This year's acreage is
taken as 7.5% less than last year or a harvested acreage of 36,805,000
for this year. The yield per acre used throughout this calculation is the
previous ten-year average of 159 pounds. These figures indicate a crop
of 12,242,000 bales. The present New Orleans spot price indicated for
such a crop is 5.89 cents at the present index price level. If the new
crop should run as high as 13,000,000 bales under present state of
demand and price levels, the New Orleans spot price indicated is 4.75
cents. These figures seem to indicate that the cotton world is now
figuring on a new crop of American cotton of about 12,500,000 bales. A
crop of 11,000,000 bales should bring a substantially higher price even
under present conditions. An average yield of 143 pounds per acre on
36,805,000 acres will produce 11,000,000 bales. In 1921 the average
yield was only 124.5 pounds per acre ; in 1922, 141.2 and in 1923, 130.6."
In regard to the international aspects of the cotton industry, Dr. Cox said:
"It is now evident that the world carryover of American cotton on
August 1 will be in excess of 13,000,000 bales. Consumption is now
running at a very much slower rate than was generally estimated by those
In the industry. This is having some effect on the price, but the chief
price-moving factor now is new crop outlook. Official information about
the new crop is still very scant. Calculated on intentions to plant
plus prices, the probable acreage reduction seems to be about 7.5%. This
is about in line with the best private estimates.
'The condition of the crop as indicated by private estimates and
weather conditions was about normal on the first of June. At the beginning of the last week in June the crop had lost ground in the upper
part west of the Mississippi River, northern Mississippi valley and the
Southeast. On an average, weather conditions and private reports indicate that conditions of the cotton crop in Texas are about normal.
"Heavy reductions of acreage are expected in Egypt and the minor
cotton growing areas. India is expected to have less reduction than
America, and Russia plans an increase."
Dr. Cox summarized the cotton textile situation as follows:
"The cotton textile situation in the United States for May showed
some improvement over April, so far as sales are concerned, but is still
far from satisfactory. According to the Association of Cotton Textile
Merchants of New York, sales for four weeks in May were 145,758,000
yards, compared with 102,307,000 yards for four weeks in April. In
May last year sales were 160,000,000 yards. Stocks of goods on hand
Increased from 302,216,000 yards at the end of April to 315,448,000 at
the end of May. Unfilled orders declined from 294,118,000 yards at the
end of April to only 193,637,000 yards at the end of May. Stocks are
First Cotton Yarn Factory Planned in El Salvador.
The Central American Republic of El Salvador is to have
its first cotton yarn factory, it is learned in advices from
Vice-Consul Morgan Atherton, San Salvador, made public
by the Commerce Department on June 29. The advices
state:
Egyptian Government Experiments in New Use for
Scarto Cotton—May Develop Better Market for
Ginning Waste.
The Egyptian Government is conducting a series of experiments in an effort to justify the use of cotton as a
packing material to substitute for jute, according to a
report from Consul A. R. Thomson, Manchester, England,
made public by the Commerce Department on June 29.
Bags are being woven from ginning waste for use in the
bailing of raw cotton says the Department, which further
states:
When raw cotton is packed in jute bags, the presence of jute fibers,
which percolate into the raw cotton from the bags, hinders spinning
operations. The experiments are for the purpose of determining whether
or not the greater cost of cotton bags is justified by the elimination of
the jute fibers from the raw cotton. The cost of the cotton bagging fa
about three times that of just, but the scrap value of the former also
is higher.
One British firm has placed an order for Egyptian cotton to be packed
In cotton bags. If the experiments prove a financial success, the new
use for cotton is expected to furnish a new and important market for the
scarto cotton, or ginning waste.
Petroleum and Its Products—California's New Crude
Price Structure Endangered by Overproduction
in Individual Fields—World Conference Blocked
on 10-Year Curtailment Plan.
The new California price structure on crude oil, which
went into effect on June 26, is endangered by the lack of
observance of curtailment schedule on the part of many
fields. Although the State's output as a whole is being
kept well within the limit of 476,600 barrels daily prescribed by the Standard Oil Co. of California as a condition
of the price increase, yet reports from the West coast on
Thursday indicated that 10 fields were exceeding their
quotas. It is shown by Neal Anderson, State Oil Umpire,
that in the 10 days immediately following the posting of the
25c. per barrel increase, daily production averaged 458,479
barrels, or about 18,000 less than allowed.
However, it was specifically stipulated that no one field
was to exceed its allowance, regardless of what the State as
a whole was doing, and in view of this stipulation grave
concern is felt. One saving feature of the stipulation, however, was that it would be based on a 10-day period, and
it is believed that the fields now violating the restriction
will be "brought into line" in time to assure continuance of
the new high prices.
The California price increase has exerted a generally
beneficial influence throughout all of the oil-producing areas.
It has in turn strengthened not only the coastal market,
but in Mid-Continent and Pennsylvania as well. With
refiners operating on the new California crude scale, producers east of the Rockies are not confronted with the
competition of cheaper refined products made from crude
purchased at levels far below those obtaining elsewhere, as
was the case prior to the recent California increase. In
addition, the country's total production is being held down
to a safer level by the enforcement of the 476,700-barrel
order in California, where potential production is estimated
at more than 1,000,000 barrels per day.
The so-called "world oil conference" now in session in
Paris has run into an unexpected snag in the form of Rumanian opposition to production curtailment over a period
Volume 135
Financial Chronicle
of 10 years. It is generally understood here that the
Rumanian objection would be withdrawn if Russia would
agree to the same program. The Rumanian fear, apparently,is that their withdrawal from certain world markets
would leave the way open for the Soviet interests to take
over those same markets. Rumanian delegates have expressed their readiness, however,"to facilitate an agreement
with all the involved companies in order to raise the price
to a paying level."
There were no changes in the prices of domestic crude
posted during this week.
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degress are not shown.)
Bradford, Pa
$1.60 Eldorado, Ark., 40
$0.78
Corning, Pa
1.05 Rusk, Texas, 40 and over
*.83
IllinoIs
.80 Salt Creek, Wyo.,40 and over
.85
Western Kentucky
.90 Darst Creek
.90
MIdeontinent, Okla., 40 and above_ 1.00 Sunburst,
Mont
1.25
Hutchinson, Texas, 40 and over.... •.81 Santa Fe Springs,
Cant.,40 and over 1.00
Spindletop, Texas, 40 and over__ *.81 Huntington,
Calif., 26
1.00
Winkler. Texas
•.86 Petrone, Canada
1.75
Smackover, Ark., 24 and over
.77
*Effective April 1 1932.
REFINED PRODUCTS-SPOT GASOLINE
MARKET QUIETER
HERE AFTER HOLIDAY WEEK-END-TR
ADE EASIER IN
CHICAGO-DECREASE IN
CONSUMPTION
BECOMING
NOTICEABLE, MAJOR MARKETERS REPORT.
The local spot gasoline market has been quiet throughout
the past week,the holiday week-and having apparently been
disappointing as far as total retail sales w re concerned, and
leaving stocks in distributors hands in sufficient volume
to
cover their needs for the balance of the week. It is most
significant that reports are bcing received from widelyscattered parts of the cLuntry to the effect that a decrease
in consumption of gasoline is becoming more apparent
daily. This is held to be true, especially in those States
where unusually heavy taxes have been levied. As prices
of other commodities decrease, gasoline prices advance,
due
to the imposition of taxes, and distributors are powerless
to ov?reome objections to a price structure based largely
on taxation.
A slight weakness in the Chicago market is
attributed to
the fact that many refiners, who stepped up their
runs to
accommodate the heavy demand immediately prior to June
21, did not curtail soon enough and are now shading
prices
in that territory to move excess stocks.
However, prices in the New Ycrk Harbor territory
continue fairly stable, with below 65 octane holing at 7%-73
4c.
a gallon, tank car at refinery, and above 65 octane
firm at
73-8c. Domestic heating oils have steadied considersbly
during the last few days, and talk has been revived of
an
increase in posted prices, which may occur over the
week-3nd.
Grade C bunker fuel oil is held strongly at 85c. a barrel
at
refineries, and Diesel is unchanged at 81.65 a barrel,
same
basis.
The kerosene market was practically stagnant during
the
week. Little actual business was reported, and
few inquiries are noted.
Comment is being heard in aviation circles that
price
of aviation g'soline is too high, and that a reductionthe
this particular fuel more in line with automobile to bring
would be a logical move. Aviation gasoline beinggasoline
quoted
now at 12e. a gallon tank car, and 16e. tank is
wagon, f. o. b.
However, the consumer pays from 30c. upwards at the
airport. It is pointed out that with almost 150,000
of
scheduled flying daily, in addition to unlisted privatemiles
flying,
this market is developing rapidly and should be recognize
d
through a general revision of gasoline and lubricant prices.
No changes of importance was posted this week in
ths
refined markets.
Gasoline, Service Station, Tax Included.
$ 135 Cleveland
$ 185 Now Orleans
$ 128
.195 Denver
.20 Philadelphia
.14
.184 Detroit
.13 San Francisco:
18 Houston
.17
Third grade
.16
.175 Jacksonville
.19
Above65 octane_._ .18
.17 Kansas City
.155
Premium
21
.185 Minneapolis
.167 St. Louis
144
Kerosene, 41-43 Water White, Tank Car Lots, F.O.B. Refinery.
N.Y.(Bayonne)_. .0536 Chicago
8 0254-.0334 New Orleans, ex__80.0316
North Texas._ _ _
.03
Los Ang..ex_ .043- 0G
Tulsa
.0455-.0334
Fuel Oil, F.O.B. Refinery or Terminal.
N. Y.(Bayonne)California 27 plus D
Gulf Coast C
5.70
Bunker C
$ .65
5.75-1.00iChicago 18-22 D...4214-.50
Diesel 28-30 D
1.65 New Orleans C
.00 Philadelphia C
.70
Gas 011, F.O.B. Refinery or Terminal.
N. Y.(Bayonne)ChicagoTulsa28 D plus.-..2.035,
1-.01
32-36 D Ind_ _$.015f-.02
32-36 D Ind..$.0114-.02
Gasoline, U. S. Motor. Tank (Abeve 65 Octane). Car Lots.
F.O.B. Rafinery.
N. Y.(Bayonne)N. Y.(Bayonne)Chicago_ _____ 5.05
Standard Oil, N. J.Sinclair
$ 0754 New Orleans, ex. .05-.0534
Motor, 60 ocPan-Am. Pet. Co._. .03
Arkansas
.01-.0134
tan°
Shell Eastern Pet_ .0734 California_ ___
5.0311
.05-.07
Motor, 65 00New YorkLos Angeles,ex .0434-.07
tane
.0834
Colonlal-Beacon__$.08% Gulf Ports....
.05-.0534
Motor,standard .0834
Crew Levick
081.4 Tulsa
.06
Stand. 011, N.Y.
••
s Texas
0734 Pennsylvania_
.055f
Tide Water Oil Co .081.4
Gulf
081X
Richfield Oil(Cal.).0834
Continental_
.08q
Warner-Quin.Co. .0834
Republic Oil
• 08
•Below 05 octane. z"Texaco" a .0834•
•• Standard 011 of N.Y. now quoting on basis of delivered price not more than
Sc.
per gal. under company's posted service station price at point and date of delivery
but In no event less than 854c. a gal., f.o.b. New York Harbor, exclusive of taxes.
New York
Atlanta
Baltimore
Boston
Buffalo
Chicago
Cincinnati
199
Crude Petroleum Production Again Falls Off.
The American Petroleum Institute estimates that the daily
average gross crude oil production in the United States for
the week ended July 2 1932 was 2,104,800 barrels, against
2,156,100 barrels in the previous week and 2,482,500 barrels
in the corresponding period in 1931. The daily production
for the four weeks ended July 2 averaged 2,160,450 barrels.
Comparative figures are set out below:
DAILY AVERAGE PRODUCTION OF CRUDE OIL.
(Figures in Barrels.)
•
Oklahoma
Kansas
Panhandle Texas
North Texas
West central Texas
West Texas
East central Tema
East Texas
Southwest Texas
North Louisiana
Arkansas
Coastal Texas
Coastal Louisiana
Eastern (not Including Michigan)
Michigan
Wyoming
Montana
Colorado
New Mexico
California
Total
Week
Ended
July 2
1932.
Week
Ended
June 25
1932
Average
4 Weeks
Ended
Jul, 2
1932.
Week
Ended
July 4
1031.
386,950
97,100
54,250
50.250
24,550
179,600
56,400
328,900
52.400
30,200
34,100
119,350
31,850
107,800
17,900
35,200
7.200
2.850
36,000
451,950
426.900
98.300
55.850
50,400
24.400
178,950
57.350
331.800
56.000
29,850
34,000
116,450
31,900
104.650
17,650
35,000
7,200
2,950
36.100
460,400
425,350
96.750
53.650
50,550
24.650
179.300
57.150
330,5.50
54.700
29.800
84.100
115,700
32.150
107,350
17,550
84.950
7.100
2.950
36.200
469,950
591.600
103,150
66.200
60,350
28.250
205.250
60.750
351,950
57,750
35,200
43.900
139,550
23.700
100.750
7.900
42,100
8.250
4.550
44,750
506.600
__ 2_ uld AM 21136.100 2_190.450 2.442.500
Reports received for the week ended July 2 1932 from
refining companies controlling 95.1% of the 3,852,000
barrel estimated daily potential refining capacity of the
United States, indicate that 2,265,700 barrels of crude oil
daily were run to the stills operated by those companies,
and that they had in storage at refineries at the end of the
week, 38,823,000 barrels of gasoline and 130,834,000 barrels
of gas and fuel oil. Gasoline at bulk terminals amounted to
15,542,000 barrels and 1,826,000 barrels were in water
borne transit in or between districts. Cracked gasoline production by companies owning 95.6% of the potential charging capacity of all cracking units, averaged 463,300 barrels
daily during the week. The report for the week ended July 2
1932 follows:
CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS. GAS AND FUEL OIL
STOCKS. AND CRACKED GASOLINE PRODUCTION FOR WEEK
ENDED JULY 2 1932.
(Figures In Barrels of 42 Gallons.)
Daily Refining Cdpactly
of Plants.
District.
Reporting.
Pstentust
Raie.
East coast
Appalachian. _
Ind.. ill., Ky.
Okla.. Kas.. Mo,
inland Texas-.
Texas gulf
Louisiana golf..
North 1.4.-Ark..
Rocky Mountain
California-
Total.
%
Crud
,Runs
to Stith
%
Dane OwAse+aoe. aged.
633,700 633.700 100.1 494,900
149,600 137,400 91.8
89.400
436,300 431,500 98.9 299,400
485.700 435,200 89.6 201,900
305,700 233,900 76.5
92,000
532,500 531.500 99.8 429,300
147,500 147.500 100.0
88.400
85.600
83,000 97.0
48,300
160,900 143,800 89.4
32,100
914,
884,100 96.7 490,000
*Motor
Fuel
Sleeks.
Gas and
Fuel On
Stocks.
78.1 19,214,000 7.283,000
65.1 2.339.000 1.128.000
69.4 8,176,000 4.240.000
46.4 5.245,000 3,493.000
39.3 1,768,000 2,748,000
80.8 5,623.000 7.469,000
59.9 1,712,000 4,425.000
209,000
749.000
58.2
6.57.000
22.3 1,818.000
5.5.4 16,037,000 98.698,000
Totals week:
July 2 1932. _.3.932.0003,651,600 95.1 2.265,7
81.9 52,141,000 130,834,000
June 25 1932_ 3.552.000 3.661.600 95.1 2.312.000 63.1 41.973.000 129.664.000
a Below is set out an estimate of total motor fuel stocks on U. S. Bureau of Mines
for week of July 2 1932, compared with certain July 1931 Bureau figures:
A. P. I. estimate B. of M. basis week July 2 1932.6
62,966,000 barrels
U. S. B. of M. motor fuel stocks July 1 1931
60,165,000 barrels
U. 8. B. of M. motor fuel stocks July 313931
55,265,000 barrels
h Estimated to permit comparison with A. P. I. Economics
Report which is on
Bureau of Mines basis.
New Low for Export Copper Reached When Metal
Sells at Five Cents a Pound.
Special sales of copper were made on July 5 in the export
market at a shade below five cents a pound. This is the
lowest price that copper was ever sold at. Copper was
offered abroad by some former members of Copper Exporters,
Inc. at five cents a pound, c.i.f. European base markets,
for nearby shipment. The price of Copper Exporters, however, remains unchanged at 532 cents on special offerings.
The price of domestic copper is also unchanged at 53
,4 cents
delivered in the Connecticut Valley.
Price of Lead Reduced Five Points.
The price of lead was reduced five points by the American
Smelting & Refining Co. on July 5 to 2.85 cents a pound.
Export Copper Declines As Large Units Bid for Business
-Lead and Zinc Lower.
Under date of July 7, "Metal and Mineral Markets" reports as follows:
The exodus from Copper Exporters, Inc., of foreign producers continued
last week, and so far at least 10 companies have either withdrawn
from the
group or notified the organization of their intention to sever relations.
Notice of the withdrawal of Union Miniere, the large African producer,
reached this market simultaneously with a request from this factor to sell
copper abroad until July 8, through the export organization, at a "special"
price of 5c. per pound, c.i.f. This was somewhat of a shock to the industry
and the news temporarily unsettled the domestic price. Lead and zinc
prices remained unsettled, and both moved into lower ground, largely on
realization that consumption over the summer period is likely to decline.
Tin was higher on fresh support from the international group. Silver
settled at 263c. per ounce, a new low for the year.
United Slates Producers Mark Time.
Most of the excitement in copper centered around the foreign situation.
During the la‘t week the following operators have withdrawn from the
export group: Union Miniere du Haut-Katanga; Rio Tinto; Metallgesellschaft; Hirsch; American Metal Company of Canada; Henry Gardner &
Company; British Metal Corporation. As previously noted, International
Nickel, Chile, and Cerro de Pasco were free to sell abroad in the open
market on June 30. The offerings increased on that date, and prices in
Europe weakened. Japanese producers, so-called outside traders, and
representatives of several of the large units participated in the sdramble
for business, and on June 30 some lots sold as low as 5.05c., c.i.f. On July
4, the European market sagged still further, and prices named on that day
ranged all the way from 4.925c. to 5.10c., c.i.f. terms. The European
market steadied a little on Tuesday, based largely on more encouraging
news from the Lausanne conference. Demand for copper abroad, even at
the low record prices, was anything but active. European buyers showed
more interest in future deliveries than near-by metal.
Domestic producers were disposed to mark time under present conditions, and the market held at 5%c., delivered Connecticut, most of the
week. Conflicting reports as to what really occurred when Union Miniere
announced its intention to sell copper abroad at Sc., c.i.f. basis, unsettled
the market here, and several lots changed hands at 5%c., Connecticut,
equaling the all-time low on domestic transactions. Yesterday, the price
settled at 5%c., Connecticut. No new developments in the domestic
situation occurred, most producers restricting offerings at current levels
in the hope that the plans to tie up the large stocks can be made acceptable
to all concerned. Sales for the week in the domestic market amounted
to about 2.000 tons and involved near-by as well as future shipment metal.
World production of copper at present is estimated at around 80,000
tons. Consumption, based on shipments, appears to be about 60,000
tons. United States production is expected to fall to 12.000 tons or less
this summer. All of the domestic producers continue as members of Copper
Exporters, Inc. The export organization is not expected to pass out of
the picture for some time to come, if at all, as the affairs of the group
cannot be liquidated for a year or more, according to producers.
Zinc Down to 2.60 Cents.
Demand for zinc was dull throughout the week, and offerings increased in
more than one direction, resulting in business at as low as 2.60c. per pound,
St. Louis. The June statistics were disappointing, showing a gain in stocks
of 1,452 tons. Private figures Indicated that stocks of prime Western
increased 3.950 tons, with holdings of high grade down 2,500 tons. Shipments declined more than 3,000 tons, which more than offset the reduction
In output. Production was reduced to 16,410 tons, a decline of 2.232 tons.
Steel Ingot Production Reaches New Low Level.
The American Iron & Steel Institute in its report of steel
ingot production for June calculates the output of all companies for the month at 897,275 tons, the smallest amount
reported in any month for which there is a comparable record. There were turned out in the previous month, May,
208,755 tons more, namely, 1,106,030 tons, while in June
1931 2,127,762 tons were produced, and at that time the
mills were operating at only 38.52% of capacity, whereas
in June 1932 operation averaged no more than 15.96% of
capacity. The approximate daily output for the 26 working
days in that month was 34,511 tons as compared with
42,540 tons in May and 81,837 tons in June 1931, which
months also contained 26 working days. We show below
the figures by months, as given out by the Institute, since
January 1931:
MONTHLY PRODUCTION OF STEEL INGOTS, JANUARY 1931 TO
JUNE 1932-GROSS TONS.
Reported by companies which made 95.33% of the Open-hearth and Bessemer
Steel Ingot Production in 1931.
OpenHearth.
1931.
January _ _
February
March ___
April
May
June
*2,098,175
*2,131,079
*2,565,531
*2,321,043
*2,130.805
*1,782,007
Calculated No.of Approx. Per
Monthly
Cent.
Monthly ;York- Daily
Output
Bessemer. Companies Output All Mg Output OperaReporting. Companies. Daps. All Cos. tion.a
296,620
296,974
346,137
316,668
301,639
246,365
*2,394,795
*2,428,053
*2,911,668
*2,637,711
*2,432,444
*2,028,372
x2,512.140
x2,547,027
:3,054,339
x2,766,959
:2,551,633
x2,127,762
27
24
26
26
26
26
:93,042
:106,126
x117,475
:106,421
:98,140
:81,837
mmmmmm
w&o.a.p.on
oomootow
6i.OW61:0
wocomo
.Vonths.
6 mos__ •13,028,640 1,804,403 *14,833,043 x16,559,860 155 1100,386 :47.25
July
August _
September
October _
November
December
*1,574,379
•1,462,254
•1,274,072
*1,319,95E
•1,276,856
*1,088,384
225,030
174,380
199,151
195,943
240,441
*172,046
*1,799,409
.1,636,634
*1,473,223
*1,515,901
*1,517.297
*1,240,430
x1,887,580
x1,716,829
x1,545,411
x1,590,180
xl,E91,644
x1,301,211
26 :72,599 :34.17
26 x66,032 x31.08
26 x59,439 x27.98
27 x58,896 x27.72
25 :63,666 :29.97
26 x50,047 123.56
Total.. *21,004,543 *3,011,394 *24,015,937 x25,192,715 311
1912.
January _ _
February.
March
April
May
June
July 9 1932
Financial Chronicle
200
1,230,661
1,232,568
1,149,307
1,036,227
950,785
755,123
160,633
157,067
193,944
144,197
103,593
100,249
1,391,294
1,389,635
1,343,251
1,180,424
1,054,378
855,372
*1,459,450
*1,457,710
*1,409,054
*1,238,250
*1,106,030
897,275
26
25
27
26
26
26
181,006 x38.13
.56,133
*58,308
*52,187
*47,625
*42,540
34,511
*25.96
*26.96
.24.13
*22.02
*19.67
15.96
2242
AR XII
7 AR7 WIR 11cR
7 91A AAA
RX0 ARA
6 M061- - a 2KAR71
a The figures of "per cent of operation" for 1931 are based on the annual capacity
as of Dec. 31 1930 of 66,069,570 gross tons for Bessemer and Open-hearth steel
Ingots. and for 1932 on the annual capacity as of Dec. 31 1931 of 67,473,630 gross
Bessemer and Open-hearth steel ingots. *Revised. x Adjusted.
Production and Shipments of Slab Zinc Declined
During June-Inventories Higher.
According to the American Zinc Institute, Inc. production
of slab zinc amounted to 16,410 short tons as compared with
18,642 tons in the previous month, 23,483 toffs in the corresponding period in 1931 and 43,458 tons in the same month
in 1930. Shipments totaled 14,958 short tons as against
18,087 tons in May 1932,27,604 tons in June 1931 and 36,448
tons in June 1930. Inventories increased from 132,580
short tons at May 31 1932 to 134,032 tons at June 30 1932
and also compares with 138,928 tons at June 30 1931. The
Institute's statement follows:
SLAB ZINC STATISTICS (ALL GRADES), 19301 1931 AND 1932
(Tons of 2,000 Lbs.)
yRetorts Unfilled
Stock at :57ttp- Osaaro, Orders, Daily
End of ped for End of End of Aver.
Month. Export. Month. Month. Prod.
Produced
During
Month.
Shipped
During
Month.
1932.
January
February
March
April
May
June
22,516
21,516
22,493
20,620
16.642
16,410
22,444
21.896
22,576
18,046
18,087
14,958
129,914
129,634
129.451
132,025
132,580
134,032
31
0
0
0
0
0
22,044
21,752
22,016
20,796
21,750
19,642
24,232
23,118
23,712
20,821
19,837
16,116
723
742
726
888
601
547
1931.
January
FebruaryMarch
April
MaY
June
July
August
September
October
November
December
32,522
29,562
32,328
29.137
25,688
23,483
21.365
21,467
21,327
21,548
20,548
21.868
31,064
30,249
35,224
27,418
25,851
27,604
28,460
23,599
20,860
21,181
19,963
23.041
145.076
144,389
141,493
143,212
143,049
138.928
131.833
129,701
130,168
130.535
131,015
129,842
1
0
0
0
20
2
33,235
33,118
31,821
26,672
20,624
19.022
19,266
19,305
20,417
21.374
19,428
19,875
30.251
33,453
31,215
36,150
31,146
33.086
24,815
20,503
15,388
18,365
21,355
18,273
1,049
1,056
1,043
971
829
783
689
892
708
696
681
705
Total for year 300.738
Monthly aver
25,062
314,514
26,210
41
3
23,680
28.166
822
20
6
17
26
31
37
31
17
11
0
0
0
59,457
57,929
51,300
50.038
52.072
52,428
46,030
48,004
42,574
38,604
35,092
31.240
39.017
32,962
29,330
29.203
30,515
28,979
34,135
28,972
27,108
29,510
24,481
26,651
1,678
1,594
1,552
Month.
1930.
January
52,010
44,628
March -------48,119
April
44,435
44,556
May
June
43,458
40,023
July
August
41,012
September
40.470
October
40,922
November
32.097
December
32,733
February
40,704
41,295
41,820
40,597
38,681
36,448
35,389
31,901
32,470
32,430
30,285
34,254
86,736
90,068
96.367
100,205
106,080
113,090
117.724
126,835
134,835
143,327
145,139
143,618
1.481
1.437
1,449
1,291
1,323
1,349
1.321
1,067
1,054
Total for year 504,463 436.275
196
1,355
16 47.0114 30.072
Monthly aver
42.039
36.356
Export shipments are included in total shipments.
1931.
1932.
Average Retorts During Month21,001
32,737
January
34,423
30,629
February
30,647
21,078
March
26,765
19,469
April
20,622
20,632
'
May
20.570
19,898
June
accordance
In
correvised
with
been
have
operating
retorts
for
Nofe.-Figures
rected data supplied by producers. These figures relate to horizontal retorts only.
The total production of sine as reported Includes also the metal produced by continuously operating vertical retorts and by the electrolytic method.
Further Decline in Steel Production Due in Part to
Observance of Fourth of July Holiday-Operations Fall to 12% of Capacity-June Pig Iron
Output Lowest Since December 1896-Prices of
Pig Iron and Scrap Steel Again Drop.
Steel ingot output this week, at not more than 12% of
capacity, is probably the lowest on record, reports the "Iron
Age" of July 7. June output of pig iron, at 20,935 gross
tons a day, was the smallest since December 1896 Weakness in pig iron prices is reflected by a decline in the "Iron
Age"composite to $13.76, a figure not equalled since August
1915, and steel scrap has dropped to a new all-time low of
$6.42. These developments make a stark picture of the
extreme deflation that is occurring in the iron and steel
industry, adds the "Age," which further goes on to say:
A moderate rebound in steel and pig iron production is indicated for
next week, when some plants that were shut down before the holiday will
resume. There is, however, an almost complete lack of the constructive
factors that are needed to lift steel output above its June average of about
18%. and steel companies do not look for any marked change for the better
during July and August.
Only in steel prices is there any of the stability that may be expected to
mark the beginning of a recovery period, and even In this respect the situation Is not without some irregularities.
There was a loss of slightly more than 17% in the daily output of pig
Iron in June from that of May,the figure for last month being 20.935 gross
tons against 25,276 tons. The June total was 628,064 tons, compared
with 783,554 tons in May. In June 1931 the aggregate was 1,638,627 tons,
or 54,621 tons a day. In the first six months of this year 5,168,814 tons
was produced, less than half of the 11,105.373 tons made during the corresponding period last year.
The decline in pig iron production has been continuous since April 1931,
with the exception of a moderate rise in February of this year. On July 1
only 46 blast furnaces were active, a decline of seven during June; but of
these five are only banked and, if business warrants, will be making Iron
again soon. The Steel Corporation discontinued one furnace and independent companies took off six. One merchant furnace was blown out.
but another went into service. The 46 furnaces in blast on July 1 were
making iron at the rate of 18,955 tons a day, or almost 2,000 tons a day
below the June average output.
Many of the steel companies have closed down their open-hearth departments completely this week, while others are keeping only one or more fur-
Volume 135
Financial Chronicle
meet; in service to fill urgent orders. Although there was a slight spurt in
specifications at the end of June against expiring second quarter contracts,
particularly for flat-rolled products on which some low-priced coverage
was outstanding, the tonnage was not sufficient to offset the general decline
in bookings preceding the holiday. The shutting down fo a considerable
number of industrial plants for part or all of July is a decided factor in the
reduction of steel orders.
Automobile production, which was expected to attain a peak in June,
declined last month from the May total. Ford's world output of 95,591
cars brings the June total only to about 175,000 against about 193,000 in
May. Ford production in July probably will not exceed 85,000, with not
more than 70,000 Indicated for August. The steel industry therefore does
not expect motor car manufacture to be a greatly sustaining factor during
the remainder of the summer.
Railroad buying is marked by only one sizable order, a release of 20.000
tons of rails on old contracts by the Pennsylvania RR., from which three
mills benefit. Prices on finished steel quoted to the New York Central
were in line with current published quotations except that Chicago mills
offered bars, plates and shapes at 1.60c. a lb., f.o.b. A custom of about
25 years ago was revived by this road in asking that steel companies accept
scrap in payment for finished steel, but there were only a few bidders and
the highest tender was $6 a ton, delivered.
Price weakness in finished products is most marked in alloy steel bars
and tin plate. Alloy bars have become available to a large number of
buyers at 2.45c. a lb., base. On a recent inquiry for about 25,000 boxes
of tin plate, sharp concessions from the official price were offered by several
makers. In some districts competition for reinforcing bars has brought
marked concessions on the billet steel product.
Tin plate production, which was averaging about 50% before the holiday.
Is likely to taper off, there having been a definite check in releases by the
can companies.
Although fabricated structural steel contracts in June were the largest
for any month since last October, totaling 127.800 tons, according to the
"Iron Age" compilation, the holiday brought a decline to only 6,000 tons
for the past week.
"IRON AGE" COMPOSITE PRICES.
Finished Steel.
July 5 1932, 2.087c. a Lb.
1Based on steel bars, beams, tank plates.
One week ago
2 087c.
wire, rails, black pipe and sheets.
One month ago
2 037c.I These products make 87% of the
One year do
2 137c.J United States output.
High.
Low.
1932
2 087c. Jan. 5
2.037c. Jan. 19
1931
2.1420. Jan. 13
2.052c. Dec. 29
1930
2 3620. Jan. 7
2.121c. Dec. 9
1929
2.412c. Apr. 2
2.362c. Oct. 25
1928
2 391c. Dec. 11
2.314c. Jan. 3
1927
2 453c. Jan. 4
2.293e. Oct. 25
1926
2 453c. Jan. 5
2.403c. May 18
1925
2 5C0c. Jan. 6
2.396e. Aug. 18
Pig Iron.
July 5 1932. $13.76 a Gross Ton.
Based on average of basic Iron at Valley
One week az()
$14.01
furnace foundry Irons at Chicago,
One month ago
14.011 Philadelphia, Buffalo, Valley and SirOne year am
16.59) mingham.
High.
Low.
1932
$14.81 Jan. 5
313.76 July 5
1931
15.90 Jan. 6
15.79 Dec. 15
1930
18.21 Jan. 7
15.90 Dec. 16
1929
18.71 May 14
18.21 Dec. 17
1928
18.59 Nov. 27
17.04 July 24
1927
19.71 Jan. 4
17.54 Nov. 1
1928
21.54 Jan. 5
19.46 July 13
1925
22.50 Jan. 13
18.96 July 7
Steel Scrap,
July 5 1032, $8.42 a Gross Ton.
Based on heavy melting steel quoOne week ago
$8.81 tations at Pittsburgh, Philadelphia
One month ago
7.17
and Chicago.
One year age
9.17
High.
Low.
1932
$8.50 Jan. 12
$6.42 July 5
1931
11.33 Jan. 6
7.82 Dec. 29
1930
15.00 Feb. 18
11.25 Dec. 9
1929
17.58 Jan. 29
14.08 Dec. 3
1928
16.50 Dee. 31
13.08 July 2
1927
15.25 Jan. 11
13.08 Nov.22
1926
17.25 Jan. 5
14.00 June 1
1925
20.83 Jan. 13
15.08 May 2
"Steel" of Cleveland, in its summary of the iron and steel
markets, on July 4, stated:
An usually good week in structural orders-thir
d best this year-and
moderately-brisk specifying against expiring
hot-rolled strip and coldfinished bar contracts, prompted by neew pricing
methods which entail
an advance for many buyers beginning with the third quarter,
tempered
the descent of the steel industry into the July 4 valley.
Some producers closed June 30 instead of waiting
for July 2. A few
were to resume July 5 some July 11, others will wait for
orders
late. It is significant of the lean condition of consumers' to accumustocks that
finishing mills of many producers will
be repopned before open-hearth
departments to maintain the necessary continuous-though
slender-movement offinished material.
For the week ended July 2, steelmaking operations were no
higher than
14-15% compared with 17 the week preceding and establishing
a new low
not only for this depression but also for modern steelmaking.
Considering
the uncertainty of resumption, the week ended July 9 may turn
in an
average as low as 13%. Irregular schedules will
vitiate the accuracy
of estimates during July.
Pig iron production is on almost an exact parity with steel, the
rate for
June being 14.2% At 20,888 gross tons daily, June developed
a 17.3% less
from the 25.282-ton daily rate of May. For the month, total output
was 626,651 tons, against 783,769 tons in May. In June. 1931,
the daily.
rate was 54,599 tons and the total 1,637.998 tons. For the first half of 1932.
pig iron output is 5.165.165 tons, a scant half of the 11,098,122
tons of a
year ago. Active stacks June 30 numbered 48 a net loss of six in the month.
Contrary to the theory that expanding business must be a concomitant
of rising prices, producers of heavy-finished steel are assiduous in narrowing
their lists of preferential customers. Many users of structural shapes
and
plates, heretofore enjoying a differential of$2 per ton, are now being
quoted
the full 1.60c. Pittsburgh, of equivalent.
Bar mills also are making headway in applying a $3 extra for forging
quality. Hot-rolled strip appears morefirmly on the new 1.45c., Pittsburgh
base. Sheets still show variations. Warehouses in all centers are
adjusting
eatras on cold-finished steel in conformity with new mill extras. Other than
in Wrap, which is generally weaker, the only change in raw materials
this
week is a 50-cent reduction in coke at Birmingham.
Over half of last week's structural awards, totaling 29,533 tons, is accounted for by two projects-I0,400 tons for the department of justice
201
building in Washington and 8,800 tons for a New York Central railroad
viaduct in New York. Pending work, largely public construction, remains
large. On the Pacific coast, active projects aggregate 37,000 tons. Concrete bar demand and inquiry are extremely light.
Coincident with the turn of the quarter, buying for inventory has made
its first appearance in the market in many weeks. Barrel manufacturers.
it appears, depleted their stocks of sheets in fabricating containers for
oil in anticipation of the new Federal tax. It was the buying of small
jobbers that gave a slight spurt last week to strip mills. Tin
plate mills,
while dragging, are at 55%, far ahead of the rest of the industry.
The
Gold Dust Corp. is reported to have closed on its inquiry for 25,000
base
boxes of tin plate.
June was the second month this year to fall to produce any freight car
buying. The first half year total of freight car orders is 359, against
6.044 a year ago. An Eastern carrier has released some rails and fastenings
to a Chicago mill.
"Steel's" composite of iron and steel products is unchanged at $29.52. as
is the finished steel composite at $47.71. But the scrap composite
continues to sink, easing 13 cents to $6.33.
•
June Pig Iron Production Off 17%.
Production of coke pig iron in June was 628,064 gross
tons, compared with the May production of 783,554 tons,
according to returns gathered by telegraph and telephone
by the "Iron Age." The loss in the daily output of June
from May was a little over 17%, or from 25,276 gross tons
in May to 20,935 tons in June. The "Age" of July 7further
states:
There were 46 furnaces in operation on July 1, making iron at the rate
of 18,955 tons daily, compared with 53 furnaces in blast on June 1. with
a daily operating rate of 22.965 tons. The net loss in the number of
furnaces operating on July 1 was seven. Of these, five were banked,
two
of them at the end of the month and over the holiday. These will most
likely be started up in the near future.
Eight furnaces were blown out or banked during June and one was
blown in. Of the furnaces taken off, six belong to independent steel companies, one was a Steel Corporation furnace and one was a merchant
furnace. The furnace blown in is a merchant unit.
.The following companies each took off one furnace: Bethlehem Steel
Co., a Lackawanna furnace; Youngstown Sheet & Tube Co., a Campbell
furnace; Republic Steel Corp., Betty furnace; Wheeling Steel Corp., Portsmouth furnace: National Steel Corp., Zug furnace: Colorado Fuel & Iron
Co., one furnace. The National Tube Co. banked one in its Ohio group,
and the Davison Coal & Coke Co. banked its Neville Island furnace. The
only furnace that was put in blast was that of the Jackson Iron & Steel Co.
PRODUCTION OF COKE PIG IRON AND OF FERROMANGANESE.
(Grose Tone.)
Pig Iron.:
1931.
January
February
March
April
May
June
Half year
July
August
September
October
November
December
Ferromanganese.y
1932.
1931.
1,714.266
1.708.821
2,032,248
2,019,529
1,994,082
1.638.627
972,784
984.280
987.235
852.897
783,554
828,084
14,251
19,480
27,899
25,458
23,959
11.243
11,250
4.010
4,900
481
5,219
7,702
11.105,373
1.463.220
1,280,528
1,188,915
1.173,283
1,103.472
980,378
5,188,814
122,288
17.778
12.482
14.393
14.739
14,705
15.732
33,562
1932.
Year
18,275.165
212.115
a These totals do not Include charcoal pig Iron. The 1930 production
of this
Iron was 96.580 gross tons. y Included in pig Iron figures.
DAILY RATE OF PIG IRON PRODUCTION BY MONTHS-GROSS TONS.
Steel
Met1
Works. chants.* Total. 1
Steel
MetWorks. chants.* Total.
1930-January _ 71,447 19,762 91,209 1931-April____ 53.878
February 81,850 19,810 101,390
May__ 51.113
March._ 83,900 20,815 104,715
J une _ _ _. 43,412
April. _ .. 85.489 20.573 106.062
July
35,189
May _ ..._ 84,310 19.973 104,283
August _ _ 31,739
June_ _.. 77,883 19,921 97,804
Septemb'r 29,979
July
813,949 18.197 85,146
October._ 30.797
August.. 64.857 16,560 81,417
Novemb'r 31.024
Septemb'r 63.342 13,548 75,890
December 24.847
October._ 57.788 12,043 69,831 1932-January _ 25.124
Novemb'r 49,730 12,507 62,237
February 25.000
December 40.952 11,780 53,732
Mareh_ 24.044
1931-January. 45.883 9.418 55.299
April__ 23.143
February 49.818 11,33? 60,950
May---- 20,618
March. _. 54.975 11.481 65.556.
June _
14.815
• Includes pig Iron made for the market by steel companies
13.439
13.212
11.209
12.012
9,569
8.985
7,051
5.758
6,778
6,256
7,251
7,157
5,287
4.858
6.090
87.317
64,325
54,821
47.201
41.308
38.984
37.848
36.782
31.825
31.380
33.251
31.201
28,430
25.276
20.935
DAILY AVERAGE PRODUCTION OF COKE PIG IRON
IN THE UNITED
STATES BY MONTHS SINCE JAN. 1 1927-GROSS TONS.
January
February
March
April
May
June
First ids months..
July
August
September
October
November
December
12 months'average
1927.
1928.
1929.
1930.
1931.
1932.
100,123
105.024
112.368
114.074
109.385
102,988
107.351
95.199
95.073
92,498
89.810
88,279
86,980
99.266
92.573
100,004
103.215
108,183
105.931
11 2.733
101.763
99,091
101.180
102.077
108.832
110,084
108.705
103.362
111,044
114,507
119.822
122.087
125,745
123,908
119,564
122,100
121.151
118.685
115.745
108,047
91.513
11t 65t
91.209
101.390
104.715
108.062
104.283
97.804
100,891
85.148
81,417
75,890
89,831
62.237
53.732
56 025
55,299
60,950
65.558
87.317
64.325
54,621
61.356
47.201
41,308
38.964
37.848
38.782
31.625
50.060
31,380
33.251
31,201
28.430
25.276
20,935
Production of Bituminous Coal and Pennsylvania
Anthracite Again Shows an Improvement Over the
Preceding Week, But Continues Below That for
the Corresponding Period Last Year.
According to the United States Bureau of Mines, Department of Commerce, there were produced during the week
Financial Chronicle
202
ended June 25 1932 a total of 4,155,000 net tons of bituminous coal and 602,000 tons of Pennsylvania anthracite as
against 4,048,000 tons of bituminous coal and 573,000 tons
of anthracite in the preceding week and 6,752,000 tons of
bituminous coal and 1,262,000 tons of anthracite in the
corresponding period last year.
During the calendar year to June 25 1932 production of
bituminous coal amounted to 141,487,000 net tons and of
anthracite 23,751,000 tons as compared with 185,693,000
tons of bituminous coal and 30,932,000 tons of anthracite
during the calendar year to June 27 1931. The Bureau's
statement follows:
BITUMINOUS COAL.
The total production of soft coal during the week ended June 25 1932,
Including lignite and coal coked at the mines, is estimated at 4.155,000 net
tons. Compared with the output in the preceding week, this shows an
increase of 107.000 tons, or 2.6%. Production during the week in 1931
corresponding with that of June 25 amounted to 6,752,000 tons.
Estimated United States Production of Bituminous Coal (Net Tons).
1931
932-Cal. Year
Cal. Year
Week.
to Date.a
to Date.
Week.
Week Ended6,674,000
172,306,000
133,284,000
3,975,000
June 11
1,112,000
1,245,000
965,000
663,000
Daily average
6,635,000
178,941,000
137,332,000
4,048,000
June 18_b
1,239,000
953,000
1,106,000
675.000
Daily average
185,693,000
6,752,000
4,155,000
141,487,000
June 25_c
1,235,000
1,125,000
943,000
693,000
Daily average
a Minus one day's production first week In January to equalize number of days in
the two years. b Revised since last report. c Subject to revision.
The total production of soft coal during the calendar year 1932 to June 25
(approximately 150 working days) amounts to 141,487,000 net tons.
Figures for corresponding periods in other recent calendar years are given
below:
252,001,000 net tone.
185.693,000 net tons 1929
931
230.315,000 net tons.
228,116,000 net tons 1928
1930
July 9 1932
Estimated Weekly Production of Coal by States (Net Tons).
Week Ended
June 18'32. June 1132. June 2011. June 2110.
StateAlabama
214,000
266,000
113,000
131,000
Arkandas and Oklahoma_
17,000
17.000
33,000
44,000
53.000
Colorado
51,000
60,000
91,000
745,000
Blinds
108,000
114,000
615.000
Indiana
252,000
143,000
151,000
205,000
Iowa
57,000
52.000
49,000
52,000
Kansas and Missouri
93,000
80,000
71,000
69,000
355,000
721,000
Kentucky-Eastern
396.000
607,000
141,000
Western
142,000
118,000
165,000
Maryland
15,000
41,000
17.000
29,000
Michigan
1.000
1,000
2,000
10,000
Montana
22.000
21,000
28,000
47,000
New Mexico
17,000
17,000
27.000
35,000
North Dakota
13,000
14,000
18,000
13,000
87,000
89,000
Ohio
395,000
433,000
Pennsylvania
1,256,000 1,125,000 1,752,000 2,333,000
42,000
Tetuxessee
44.000
64,000
90,000
14,000
9,000
Texas
14,000
13,000
29,000
Utah
22,000
18,000
30,000
Virginia
131,000
114,000
187,000
192,000
19,000
41,000
Washington
20,000
26,000
W. Va.--Southern_b
. 973,000
975,000 1,563,000 1,709,000
319,000
479.000
Northern-c
317,000
599,000
46.000
54,000
67,000
Wyoming
82,000
2,000
1,000
1,000
Other States
3,000
Total bituminous coal.. 4,048,000
Pennsylvania anthracite_
573,000
June 1923
Average.a
387,000
70,000
175,000
1,243.000
416,000
88,000
128,000
661,000
183,000
47,000
12,060
38,000
51,000
14,000
888,000
3,613,000
113,000
21,000
89,000
240,000
44,000
1,380,000
856,000
104,000
5,000
3,975,000 6,635,000 8,100,000 10,866,000
559.000
950,000 1,096,000 1,956,000
Total all coal
4,621,000 4,534,000 7,585,000 9.196.000 12,822,000
a Average weekly rate for entire month. b Includes operations on the N. Sz W.
Virginian,
K.
0.;
St
M..
and B. C. & G. c Rest of State. including Panhandle.
C. St
PENNSYLVANIA ANTHRACITE.
The total production of anthracite in the State of Pennsylvania during
the week ended June 25 is estimated at 602.000 net tons, an increase of
29.000 tons, or 5.1%. Production during the week in 1931 corresponding
with that of June 25 amounted to 1,262,000 tons.
Estimated United States Production of Anthracite (Net Tons).
1932
1931
Daily Cal. Year
Daily Cal. Year
Week.
Week.
Week EndedAverage. to Date.
Average. to Date.a
June 11
559,000
93,200 22,576,000 850,000 141,700 28,720,000
95,500 23,149,000 950,000 158,300 29,670.000
June 18
573,000
June 25-b
602,000 100,300 23,751,000 1,262,000 210,300 30,932,000
a Minus one day's production first week In January to equalize number of days in
the two years. b Subject to revision.
Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ending July 6, as reported by
the Federal Reserve banks, was $2,377,000,000, an increase
of $23,000,000 compared with the preceding week and of
$1,407,000,000 compared with the corresponding week in
1931. After noting these facts, the Federal Reserve Board
proceeds as follows:
On July 6 total Reserve bank credit amounted to 32,408,000,000, an
Increase of $62,000.000 for the week. This increase corresponds with an
Increase of $126,000,000 in money in circulation and a decrease of $18.000,000 in Treasury currency, adjusted, offset in part by decreases of
$71.000,000 in member bank reserve balances and $9,000.000 in unexpended
capital funds, non-member deposits, &c.. and an increase of $2,000,000 in
monetary gold stock.
Holdings of discounted bills declined $6,000,000 at the Federal Reserve
Bank of New York, and increased $10,000.000 at Cleveland, $8,000,000 at
Atlanta, $7,000.000 at San Francisco and $30.000,000 at all Federal Reserve banks. The System's holdings of bills bought in open market increased $13,000,000 and of United States Treasury notes $7,000,000, while
holdings of United States bonds decreased $6,000,000 and of Treasury certificates and bills $1,000.000.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
in the condition statement, such as monetary gold stocks,
and money in circulation. The Federal Reserve Board's
explanation of the changes, together with the definition of
the different items, was published in the May 31 1930 issue
of the "Chronicle" on page 3797.
The statement in full for the week ended July 6, in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages, namely,
pages 257 and 258.
Changes in the amount of Reserve bank credit outstanding
and in related items during the week and the year ending
July 6 1932, were as follows:
Bills disccunted
Bills bought
U. S. Government securities
Other Reserve Bank credit
Increase (1-) or Decrease (-)
Since
Ju'y 6 1932. June 29 1932. July 8 1931.
$
500,000,000 +30,000,000 +338,000,000
-15,000,000
77,000.000 +13,000,000
+1,133,000,000
1,801,000.000
8,000,000
30,000,000 +19,000,000
TOTAL RES'VE BANK CREDIT
Monetary gold stock
Treasury currency adjusted
2,408,000,000 +62.000,000 +1,448,000,000
+2,000.000 -1,042,000,000
3 922,000,000
-1,000,000
1 793,000,000 -18,000,000
5,775,000,000 +126,000,000
Money in circulation
1 913,000,000 -71,000,000
Member bank reserve balances
Unexpended capital funds, non-mem335,000,000 -9,000,000
deposits,
Stc
ber
+939,000,000
-477.000,000
-57,000,000
Returns of Member Banks in New York City and
Chicago--Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in New York City as well as those in
Chicago on Thursday, simultaneously with the figures for
the Reserve banks themselves and for the same week, instead
of waiting until the following Monday, before which time
the statistics covering the entire body of reporting member
banks in the different cities included cannot be got ready.
Below is the statement for the New York City member
banks and that for the Chicago member banks, for the current week, as thus issued in advance of the full statement of
the member banks, which latter will not be available until
the coming Monday. The New York City statement of
course also includes the brokers' loans of reporting member
banks. The grand aggregate of brokers' loans the present
week records a decrease of $9,000,000, bringing the amount
of these loans on July 6 1932 down to $333,000,000, a new
low record for all time since these loans were first compiled
in 1917. Loans "for own account" decreased during the
week from 8316,000,000 to $305,000,000, and loans "for
account of out-of-town banks" from $21,000,000 to $19,000,000, while loans "for account of others" increased from
$5,000,000 to $9,000,000. The amount of these loans "for
account of others" has been reduced the past 34 weeks due
to the action of the New York Clearing House Association
on Nov. 5 1931 in restricting member banks on and after
Nov. 16 1931 from placing,for corporations and other than
banks loans secured by stocks, bonds and acceptances.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
July 6 1932. June 29 1932. July 8 1931.
$
6 420,000,000 6,534,000.000 7,789,000,000
Loans and investments-total
Loans-total
On securities
All other
Investments-total
U.S. Government securities
Other securities
Reserve with Federal Reserve Bank
Cash in vault
Net demand deposits
Time deposits
Government deposits
3,584,000,000 3,653,000,000 5346,000,000
1,647,000,000 1,696,000,000 2,603,000,000
1,917,000,000 1,957,000,000 2,343,000.000
0,856,000,000 2,881,000,000 2,643,000,000
1,901,000,000 1,921,000,000 1,603,000,000
955,000,000 960,000,000 1,040,000,000
688,000,000
42,000,000
606.000,000
45,000,000
849,000,000
44,000.000
4,885,000,000 4,934,000,000 5,788,000,000
762.000,000 758,000,000 1,182,000,000
95,0000,00
71,01)11,000 123,000,000
98,000,000
79,000,000
77,000.000
Due from banks
1,051,000,000 1,021,000,000 1,321,000,000
Due to banks
Borrowings from Federal Reserve Bank_
Loans on secur, to brokers & dealers:
305,000,000 316,000,000 1,090,000,000
For own account
21,000,000 194,000,000
19,000,000
For account of out-of-town banks_ _ _ _
5,000,000 171,000,000
9,000,000
For account of others
Total
On demand
On time
333,000,000
342,000,000 1,455,000,000
235,000,000
98.000,000
244,000,000 1,072,000,000
98,000,000 381,000,000
Financial Chronicle
Volume 135
Loans and investments—total
Chicago.
July 6 1932. June 29 1932. July 8 1931.
1 268,000,000 1,299,000,000 1.907,000.000
Loans—total
On securities
All other
Investments—total
881,000,000
894,000,000 1,276,000,000
522,000,000
359,000,000
532,000,000
362,000,000
727,000,000
549,000,000
387,000,000
405,000,000
631,000,000
219,000,000
168,000,000
232,000,000
173,000,000
335,000,000
296,000,000
Reserve with Federal Reserve Bank
Cash in vault
143,000,000
28,000,000
199,000.000
40,000,000
186,000,000
20,000,000
Net demand deposits
Time deposits
Government deposits
776,000,000
341,000,000
14,000,000
820,000.000 1,256,000,000
345,000,000 535,000,000
23,000,000
22,000,000
Due from banks
Due to banks
166,000,000
234,000,000
126,000,000
233,000,000
178,000,000
359,000,000
7,000,000
8,000,000
1,000,000
U. S. Government securities
Other securities
Borrowings from Federal Reserve Bank_
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
As explained above, the statements for the New York
and
Chicago member banks are now given out on Thursda
y,
simultaneously with the figures for the Reserve banks themselves and covering the same week, instead of being
held
until the following Monday, before which time the
statistics
covering the entire body of reporting member banks
in 101
cities cannot be got ready.
In the following will be found the comments of
the Federal
Reserve Board respecting the returns of the entire
body of
reporting member banks of the Federal Reserve
System for
the week ended with the close of business on June
29:
The Federal Reserve Board's condition
statement of weekly reporting
member banks in leading cities on June 29 shows
decreases for the week of
$65,000,000 in loans and investments, $26,000,0
00 in time deposits, $54.000.000 in Government deposits, $22,000,000
in borrowings from Federal
Reserve banks and $27,000,000 in reserve
balances with Federal Reserve
banks.
Loans on securities declined $25,000,000
at reporting member banks in
the Now York district and $33,000.000 at all
reporting banks. "All other"
loans increased $29,000,000 in the New York
district and $6,000,000 in the
Boston district, and declined $22.000,0
00 in the Chicago district and
$6,000,000 in the San Francisco district, all reporting
banks showing little
change for the week.
Holdings of United States Government
securities declined 657,000,000 at
reporting member banks in the Chicago
district,
Boston, Cleveland and San Francisco districts $8.000.000 each in the
and $44,000,000 at all
reporting banks, and increased $37,000,0
00 in the New York district and
$11,000,000 in the St. Louis district. Holdings
of other securities increased
$22.000,000 in the New York district and $13,000,000 at
all reporting
banks, and declined $7,000,000 in the
Chicago district.
Borrowings of weakly reporting member
banks from Federal Reserve
banks aggregated $167,000,000
on June 29, the principal changes for the
week being decreases of $11,000,0
00 and $5,000,000, respectively, at the
Federal Reserve banks of San Francisco
and Atlanta.
A summary of the principal assets
and liabilities of weekly reporting
member banks, together with changes
during the week and the year ending
June 29 1932, follows:
Increase (4.) or Decrease (—)
Since
June 29 1932. June 22 1932,
July 11931.
Loans and investments--total__18.754,000
,000
—65,000,000 —3,732.000.000
Loans—total
11,263,000,000
--34.000,000 --3.428,000,000
On securities
4,745,000,000
--33.000,000 --2,000,000,000
All other
6,518,000,000
--1,000,000 --1,428,000,000
Investments—total
7.491.000,000
—31,000,000 —304,000,000
U. S. Government securities
4,254.000,000
--44,000,000 +125,000.000
Other securities
3.237,000,000
+13.000.000 —429,000.000
Reserve with F. R. banks
1,584,000,000
--27,000.000 --224.000,000
Cash in vault
240,000,000
+27.000,000
+7,000,000
Net demand deposits
10.925,000.000
--1,000.000 --2,763.000.000
Time deposits
5,542,000,000
—26.000,000 —1.630,000.000
Government deposits
340,000,000
--54,000,000
+31.000.000
Due from banks
1,167,000,000
—58.000,000 —552,000.000
Due to banks
2,581,000,000
—79,000,000 —1,199.000,000
Borrowings from F. R. banks
167.000,000
—22,000,000 +145,000,000
London Bank Rate Lowest in Histor
y—Reduction
Due to Conversion Loan, Rising Gold
Reserve
and Lower Rate Here—Decline of Sterlin
g.
The London correspondent of the New York "Times
"
on July 1 said:
The two noteworthy events on this week's London
markets were Thursday's [June 301 reduction in the Bank of England rate
to 2%, the lowest
since 1897 and the minimum rate of its history, and the
announcement of
the war loan conversion scheme which immediately
followed. The announcement of the conversion loan plan was regarded
as explaining the
decision of the Bank to put the rate at 2%, but at
the same time other
conditions helped to enforce such a change.
Among these the principal influences were the steady
accumulation of
gold by the Bank of England, the recent reduction of the
New York bank
rate, and the extremely low level of discount rates on the
open London
market, which had again left the Bank rate quite out
of touch with actual
conditions. The new Bank rate thus reflects the lack of
demand on credit
In the present inactive business situation. The market regards
any material change in these conditions as unlikely in the near future,
though it is
hoped to get open market discount rates up to a slightly higher
level, now
that the Bank rate has grounded at 2%•
The continued weakness of sterling in terms of dollars is beginning
to
cause comment. Official support has been rather sparingly extended
to
sterling, owing to the desire of the authorities to conserve their own
foreign
203
exchange holdings. Furthermore, withdrawal of the foreign
bank balances
from America has contributed in some degree to the weakness
in sterling.
because it has induced American bankers to call in
funds of their own
from London, but American bankers seem also to have
been returning
considerable funds from this market to New York, owing to
the better
feeling which now prevails concerning the future of dollar exchange.
Confidence in the dollar does not appear to have been disturbed,
even by the
week's new American banking troubles.
On the whole, sterling seems to have been playing its old part
of "international shock absorber." Whether the sterling exchange rate
will be affected, if foreign holders of the 5% war loan decide on a large
scale not to
take the new 33,6% stock which is offered in exchange, must
remain uncertain until events give some indication. But,in any case, ample resources
are available to meet any resultant demands for exchange.
J. P. Morgan Suffers Injured Ankle.
An injury to his ankle, suffered by J. P. Morgan over the
Independence Day week-end, has caused him to make use
of crutches in going about his estate at Matinecock Point,
East Island, near Glen Cove, L. I., according to newspaper
accounts. From Glen Cove, L. I., a dispatch to the New
York "Times" stated:
The exact nature of the injury is not known. Whether the ankle
was
broken or sprained has become another Morgan household secret.
So far as could be determined, Mr. Morgan stepped into a hole
while
walking about his estate last Saturday afternoon and Injured his
ankle.
He was taken to the North Country Community Hospital at Glen Cove
at
5 p.m. and was.treated there by Dr. Everett C. Jessup, a member of the
hospital staff.
It was this injury, as much as the rain on the Fourth, that resulted in
the postponement of the formal opening of the Morgan Memorial Park,
the 30-acre shorefront recreation ground and bathing beach
he has donated
to Glen Cove and Locust Valley in memory of his wife. The ceremonie
s
Were deferred until July 16.
Gold Is Bought by Bank of England—Purchases
to Date, £15,000,000, Equal Previous Shipments
to Liquidate Foreign Credits.
Under date of July 1 a wireless message from London
to the New Yolk "Times" said:
More
After an Intermission of ten days, the Dank of England recommen
ded
its purchase of gold in the market this week, buying £400,000. This
brings
the Bank's total purchase since early in May to a little over
£15,000,000. a
figure which, incidentally, corresponds to the quantity of gold withdraw
n
from its own reserve when the Dank repaid part of the Anglo-Fre
nch credits
in November.
It also happens to coreepond to the amount by which the fiduciary
note
issue was increased when England went off the gold standard in
September.
It is not now thought, however, that there if any close connectio between
n
these events and the Bank's present gold holdings. The Bank's
present
gold holdings. The Bank's total holding of gold is now £136,950,000,
which is the highest since Oct. 28 last year, and is almost exactly
the same
as the £136,880,000 in the last report submitted before gold payments
were
suspended in September.
Adverse Comment in London on League of Nations
Gold Report—"Economist" Declares It to Be
Mystifying and Too Academic.
A cablegram as follows from London June 11 is from
the New York "Times":
Except for adverse comment in to-day's "Economist" and "Financial
News," the London press ignores the report on gold of the League of Nations
committee.
The "Economist" calls it a disappointing document.
"Published at a time," it goes on, "when it would have been of great
value for the Governments to be presented with clear and unanimou
s
findings on the basis of which a sound future monetary policy could have
been constructed, the report is calculated to mystify rather than educate
public opinion."
While admitting that world monetary conditions had changed since
the experts appointed by the League undertook their task under terms
which seemed adequate to the situation three years ago, the "Economist"
continues:
"That the report, under these circumstances, must deal not academically with questions germane to the now non-existent gold standard system
but practically with the immediate problems of the crisis, was recognized
by the gold standard delegation. But unhappily, the distinguished
experts have failed to agree completely, not merely on objectives of future
monetary policy but on the very causes of the crisis itself.
After summarizing the document, the "Economist" says of the majority
report:
"Their conclusions throughout are so hedged with reservations that
they carry caution to the point of timidity. They seem more alive
to
the limited efficacy of monetary policy than unanimous as to its proper
objectives."
The "Economist" says the minority report in its diagnosis of the underlying causes of the crisis, has minimized unduly the disequilibria produced by non-monetary factors.
"It is very unfortunate," it continues, "that the work of the delegation
should have ended in such divergence of opinion. We are inclined
to
suggest that truth and sound judgment lie midway between the recommen
dations of the majority and minority, though, pragmatically, the latter
are entitled to claim that their proposals are a more positive contribut
ion
to solution of the crisis in which bold action is imperative civilizatio
if
n is
to survive."
League of Nations Gold Report Said to Be Viewed by
Washington as Way to Recovery—Congress Members and Officials See Restoration as Aiding World
Conditions—Cancelling Debts Opposed—Countries
Officially Off Gold Standard.
. The part of the report by the League of Nations gold
delegation that recommends a return to the gold standard
by the Nations of the world was generally received with
204
Financial Chronicle
approval by members of Congress and Administration
officials on June 10, said a Washington dispatch on that
date to the New York "Times," from which we also quote:
While the State and Treasury Department officials would not comment
formally until they had an opportunity .to study the complete report
it was apparent that any move to strengthen the movement for restoration
and maintenance of the gold standard as the world's monetary system fell
in with their broad view of what should be attempted to bring about a
betterment of world economic conditions.
The reference in the report to a "satisfactory solution of the problem
of reparation payments and war debts" as necessary before restoration
of the gold standard can be expected was read with interest by officials.
The Administration's position as well as that of Congress has been represented as against anything that smacked of cancellation of the war-time
debts owed the United States by foreign Nations and this section of the
report, therefore, aroused some critical comment.
Bingham Opposes Cancellation.
Senator Bingham, a member of the Senate Finance Committee and a
stanch supporter of the gold standard, in generally approving the report,
raised objection to anything it might contain which bordered on cancellation of the war debts.
"I have always held," he said "that the gold standard was the best
possible protection for the depositor in savings banks, the person who
puts his available dollars into life insurance, and all those who desire
to look out for a rainy day and maintain their self-respect. Any other
standard is an invitation to reckless spending and a direct blow at oldfashioned principles of thrift and provision for the future.
"Anything the League can do to encourage a return to the gold standard will help the little fellow who is trying to assure the happiness of his
wife and children.
"In so far as the report recommended by the League's gold delegation
involves a cancellation of war debts, I am opposed to it. On the other
hand, in so far as it regards balancing the public budgets as essential,
I am heartily in accord."
Senator Pittman, who introduced a resolution more than a year ago
requesting the President to call an international silver conference, felt
that some countries could not be placed upon a gold standard because
of peculiar conditions, but favored a return to the gold standard by countries
where it appeared practicable. Mr. Pittman opposes birnetalism.
"I think," he said, "that those countries which were on the gold standard
for years and which in fact did maintain the gold standard until the maldistribution of gold brought about the action of certain Governments
and extraordinary post-war conditions, should be aided and encouraged
through inter-Governmental action to return to the gold standard.
"It is impossible, in my opinion, to establish or maintain the gold standand in other countries such as China, India, Mexico and South America
for many years to come. These countries have only silver money metal
and are not in a position to obtain sufficient gold for monetary reserves.
The habits, standard of living and mode of life require for them a silver
standard.
"In my opinion, gold-standard Governments should encourage and aid
such countries in maintaining and stabilizing their silver-standard money.
This Is essential to stabilization of exchange and the maintenance of trade
between such gold-standard countries and such silver-standard countries."
Countries "Off Gold Standard.
The following is taken from an official compilation made by the Department of Commerce as of May 17 1932 for Senator Wheeler of Montana, an advocate of the remonetization of silver, showing the countries
"officially off the gold standard" and the date of suspension:
Date of
Date of
Suspension.
Suspension.
Latin America—
Europe—
Dec. 16 1929
Sept.29 1931 Argentina
Denmark
Oct. 17 1930
Oct. 12 1931 Brazil
Finland
Apr. 20 1932
Apr. 27 1932 Chile
Greece
Feb. 9 1932
Sept.29 1931 Ecuador
Norway
Jan. 1 1932 Paraguay
Portugal
Aug.
1914
Sept.29 1931 Uruguay
Sweden
May 14 1932
Sept.21 1931 Peru
United Kingdom
July 25 1931
Mexico
Far East—
Mar. 12 1932
Dec. 13 1931 El Salvador
Japan
Sept.21 1931
British India
Sept.21 1931
Straits Settlements
May 11 1932
Slam
The following, also prepared by the Department of Commerce for
Senator Wheeler. shows the "countries not officially but practically off
gold or gold-exchange standard" on the same date:
The following countries have not suspended gold payments by specific
legislation, but as a result of stringent foreign exchange regulations the
gold or gold-exchange standard has been practically suspended:
Date of
Date of
Adoption of
Adoption of
Regulations or
Regulations or
Banking
Banking
Practice.
Country—
Country—
Practice.
Oct. 19 1931
Oct. 9 1931 * Canada
Austria
Oct. 15 1931 a Venezuela
Bulgaria
Nov. 13 1931
Czechoslovakia
Oct. 2 1931 Nicaragua
Jan. 16 1932
Germany
July 13 1931 Costa Rica
Sept.25 1931
Aug. 7 1931 Colombia
Hungary
Sept.21 1931
Jugoslavia
Oct. 8 1931 I, Bolivia
•Canadian gold exports officially were prohibited from Oct. 19 1931 to March 1
1932. Unofficially retsricted since that date.
a No date assignable to de facto inconvertibility.
b Bolivia has authorized her Central Bank to suspend convertibility of its notes,
but the Bank has been meeting virtually all demands for foreitn exchange at rates
substantially in keeping with the depreciation of the British pound.
Canada Includes Foreign Excise Taxes in Duitable
Value of Imports.
Instructions issued June 21 1932 (Appraisers' Bulletin
No. 3897) by the Canadian Department of National Revenue, provide that the value of imported goods' subject to
excise taxes in the United States is to be increased by the
amount of the taxes for the assessment of regular duty,
and, in addition, a dumping duty is to be collected equal to
the taxes, according to advices from Assistant Commercial
Attache 0. B. North, Ottawa. The Department of Commerce at Washington in indicating this on July 1 noted:
Under the dumping clause of the Canadian tariff, dumping duty applies
to goods of a class or kind made in Canada, if the selling price to the Canadian purchaser is less than the fair market value as sold for home consumption in the country of export at the time and place of direct shipment to
July 9 1932
Canada. For Canadian duty purposes, foreign excise taxes are held to be
a part of the fair market value in the country of export. The products
mentioned in the bulletin as being subject to excise taxes in the United
States include automobiles, parts and accessories, tires and tubes; binoculars
selling for $3 and over; brewer's wort; cameras; candy; clocks and parts;
soft drinks; firearms, shells and cartridges; furs; gasoline; opera, marine and
field glasses; grape concentrates, juice, and syrup; chewing gum; jewelry;
lorgnettes; malt products; matches; lubricating oils; radio apparatus;
mechanical refrigerators; toilet soaps and toilet preparations; sporting
goods and watches and parts.
New High Record in Gold Mining in Canada.
From Ottawa July 4 Canadian Press accounts said:
The 1931 Canadian gold production, amounting to 2,693,892 fine ounces
valued at $55,687.688, constituted a new high record in the gold mining
industry of the Dominion and made Canada for the second consecutive
year the second largest gold-producing country in the world. Gold is now
Canada's most valuable mineral output, surpassing coal, the Dominion
Bureau of Statistics reported to-day. The 1930 production of 2.102,068
fine ounces had a value of $43,453,601.
British Empire countries supplied about five-sevenths of the world's
gold in 1931. or, in round figures. 15,000,000 fine ounces out of 21,000,000.
Of that amount British South Africa alone produced 10,877.777 ounces.
The producing countries in order were British South Africa, Canada,
United States, Russia and Siberia, Mexico, Australia, Rhodesia, Japan,
India, British West Africa, Belgian Congo, Philippine Islands, New Zealand
and Brazil.
Our Gold Export Seen as Step in "Redistribution of
Gold."
The following from Berlin July 1 is from the New York
"Times":
The view of financial Berlin is that liquidation of European bank balances
in America, with their natural sequel in the large export of American gold,
is probably only the first step toward further redistribution of gold. The
next step, it is thought, may be export of gold by France.
This expectation is based on the heavily unfavorable French trade
balance. The estimate here is that the French surplus of merchandise
imports in 1932 will be eight to ten billion francs, or, say, $315,000,000 to
$400,000,000. It is believed that France will not be able to pay this deficit
out of current receipts in view of the stoppage of reparation payments,
the default of many foreign bond issues, and the great contraction to tourist
payments.
Austrian Gold Properties, Worked at Intervals Since
Middle Ages, To Be Re-opened--Annual Profit
of $2,000,000 Expected.
Reopening of the gold mines in the Tauern mountains of
Austria, worked for a period in the Middle Ages, is planned
for the near future, it is stated in a report from Commercial
Attache Gardner Richardson, Vienna, to the Commerce
Department. It is estimated that the reserves are about
Gold values range from 18.9 grams to 60
26,000,000 tons.
grams a ton, said the Department on June 29, which likewise
reported:
One of the most important sections of these properties lies near Nassfeld,
and the Austrian Government owns a one-third Interest there. It is estimated that the re-opening of these properties will result, owing to present
economic conditions, in a profit of about $2,000,000 annually.
The mines in the Tauern mountain region have a long and varied history.
They were worked for a time in the Middle Ages and then abandoned.
Work was resumed for a time prior to the World War and then again abandoned. Several efforts were made to re-open the mines about 10 or 12
years ago but conditions were unfavorable. The relatively high value of
gold at this time and other important factors are considered favorable to the
profitable re-opening of these ancient properties, the report stated.
Barter Replacing Trade in Europe—Agreements to
Exchange Goods Concluded by 15 Countries Report
of Economic Section of League of Nations Shows11 Nations Have Tried to Save Themselves by
Abandoning Gold and Devaluating Currency.
Barter has already replaced normal trade in certain
products among 15 European countries said the Geneva
correspondent, June 11, of the New York "Times" who also
reported:
Since last July agreements to exchange goods in kind have been concluded
between Germany and Hungary. Austria and Rumania, Bulgaria and
Greece. Bulgaria and Switzerland, France and Latvia, Norway and Russia,
Poland and Austria, Hungary and Bulgaria and Estonia and Yugoslavia.
This was one of the facts brought out in a report analyzing the breakdown
in foreign trade in the League of Nations economic section published to-day
on the heels of the gold delegations's analysis of the breakdown of the world's
monetary system.
The economic report shows with facts and figures how under the stress
of the depression trade currents have not merely declined more and more
in intensity, "but are now different in character from what they were only
a few years ago." and the same groups of commodities are no longer being
exchanged in the same relative proportions as before the depression.
Government Monopolies Set Up.
Its data show that Persia has adopted a foreign trade monopoly, and
another of Russia's neighbors, Estonia, has established an import trade
monopoly, while two others. Latvia and Turkey, reach about the same end
through quota systems covering all imports.
France has already gone far in the same direction, with quotas on 53
important articles. Like most of the 16 other European countries that have
established quotas, she is "continuously intensifying" this method of State
control of foreign trade.
In the past year 12 countries have resorted to State control of foreign
exchange dealings, while In the past few months 18 States have raised their
tariffs. Eleven have tried to save themselves by leaving the gold standard
trusting to the old theory that devaluation of currency stimulates exports.
Volume 135
Financial Chronicle
205
Instead, devaluation has led to reprisals, with the result
that "it is not
certain that it has in practice stimulated trade" and "there
is even reason
to believe that by adding to the present disorder of international
trade it
has ended by restricting it."
that in Europe the maintenance of the gold standard in
America is regarded
as doubtful.
These developments are usually explained in public discussion
in terms of
the world crisis, the decline of raw material prices, the unbalance
d condition
of international trade, reparations and war debts, the
Ratio of Decline Increases.
low price of silver,
the German credit crisis, and similar causes.
The crescendo of the fall of trade was brought out in a table showing
The study undertaken by Professor Brown and Mr.Smit is based
that whereas the value of world trade fell $11.500.000.000
upon the
in 1930. It fell
view that the present breakdown of the gold standard
$13,716,000,000 more in 1931. While the total setback
in several countries
between 1929 and
cannot fully be understood by an examination of the
present disturbed
1931 was 42%, it is 60% in comparison between January
1932, and
conditions alone. A close research collaboration between
January 1929.
the two authors
of the study, which had its origin not less than six years
ago at the time
A few countries have been hit fairly equally on imports and exports
in
when
England
started
the
experimen
t of returning to the gold standard at
the past two years. France lost 51% in each, while the
United States,
pre-war
parity,
has
given
them
the
convictio
n
that
the difficulties in the
despite her higher tariff, lost in export 63% and in
imports 58%. Figures
working of the gold standard after 1925 cannot be explained
showing the losses of other countries follow:
until one goes
deeply into the historical formation of the world's credit system.
Exports. Imports.
This
approach
will
throw
light upon the fundamental problem of the
Germany
49
66
present—whether there are any reasonable grounds for hope
Austria
that the gold
54
37
standard can develop, under the conditions which may be expected
Great Britain
to prevail
48
during the next decades, the same efficient international clearing
39
Canada
and stabil49
izing services as it did before the war. The study, therefore,
60
Switzerland
will examine
50
21
the history of the gold standard from 1873 to 1914 with special
Brazil
emphasis
21
44
upon the growth of London as an international credit and capital
distributing
and clearing centre, and upon the distribution of the bulk
of the world's
newly produced gold through London. It will then
attempt to appraise
Agreement on Reparations Reached at Lausanne Con- the effect
upon this international financial machinery of the rise of New
ference—Germany's Final Debt Payment Fixed at York as an international financial centre and of the many
other strikingly
$750,000,000—Bonds to Be Issued When Germany's new developments of our day.
The study in these ways is intended to go behind, but not to
neglect, the
Credit Permits.
tremendously disturbing questions of the.day and
to examine the interWhat is reported as a complete agreement on the issues national gold standard as an economic institution, and to consider whether
the environment in which it must now function is or is not
so changed from
under discussion at the Lausanne (Switzerland) Conference that
of the pre-war period in which it flourished most successful
ly, as to
on debts and reparations was reached yesterday (July 8) require any really fundamental changes in the nature of the internatio
nal
between France and Germany, according to Associated gold standard itself, its management, and the service which it is expected
to render to the world.
Press accounts from Lausanne, from which we quote as
Professor Brown, graduate of Yale University in 1917, was
for six years
with Brown Brothers & Co., 59 Wall Street, New York.
follows:
In 1925 he began
graduate
study
at
Columbia
and
in
1926 went to London as a Cutting
Under the agreement Germany's final reparations payment
is fixed at
Travelling Fellow to Work at the London School of Economic
a nominal 3,000.000,000 gold marks (about 1750.000.000). Bonds
s and Political
for that
Science upon his doctor's thesis on the gold standard.
amount will be issued at a price of 90 when Germany's
There he met Mr.
credit permits.
Smit, with whom he began to collaborate on gold standard
The preamble to the agreement declares that reparatio
problems.
His
ns are finally
thesis was published in 1929 by P.S. King & Sons, London,
ended and that a new effort to improve relations among
under the title,
nations is com"England and the New Gold Standard, 1919-1926
menced on the basis of reciprocal confidence.
." For the past four
years he has been Assistant Professor of Economics at
Announcement that an accord had been reached was made
Brown University.
while Premier
He has recently completed a part of the forthcoming
Herriot of France was holding a final conference with
four-volume study of
Prime Minister
the
New
York
money
market
to be published by the Columbia University
Ramsay MacDonald of Great Britain in the latter's chamber.
Press as a Columbia study edited by Professor B. H. Beckhart.
The finishing touches to the text of the accord will be
made late to-day.
Carl Jan Smit, graduate of the University of Amsterda
The German bond issue will be withheld for at least
m with the master
three years. The
of laws degree in 1921, after a year of'study at the London
sinking fund is fixed at 1%. The bonds will mature in
School of Econo37 years.
mics,
engaged
in
practical
banking in the head office of the Netherlands
If the bond issue is not floated within 15 years, the whole
issue is cancelled.
Bank of South Africa in Pretoria in 1924 and 1925.
The "war guilt" controversy which is so irritating to
There be became
Germany is not
specially interested in money and gold standard problems.
mentioned, nor is the Versailles Treaty named, but the
He returned to
agreement implies
the London School of Economics for further graduate
that the post-war reparations chapter is relegated to history.
work, particularly
in the field of money and banking under Professor
A resolution asking the United States to attend a world
E.
T.
Gregory
and In
economic conthe field of trade cycle theories under the late Professor
ference, where the Lausanne convention would be woven
Allyn A. Young of
into "a universal
Harvard: between 1927 and 1930, while still a graduate
accord" was expected to be adopted to-morrow.
student, be was
financial editor in London for two Dutch newspapers,
(The United States Government recently announce
the Amsterdam
d its willingness to
Handelsbiad and the Rotterdam Maaabode. Since coming
attend a world economic conference, but vetoed several
to the United
plans which would
States
in
1930
Mr.
Smit
has
devoted himself to research work on special
have linked that conference with the Lausanne meeting.)
phases of the functioning of the gold standard
Mr. MacDonald and M. Harriet were the two most
at the Brookings Institute of
pleased among the
Economics in Washington, D. C., at the National Bureau
statesmen here over the agreement.
of Economic
Research and at Brown University.
The French Premier was the center of a touching scene
in the lobby of
the Beau Rivage when he embraced two pretty girls and
shouted: "C'est
fait! C'est fait!" (It is done.)
As the statesmen emerged from their meeting. Chancello
Reparations Debt First Put at 64 Billion—Agreement
r von PaPen,
who was walking beside M. Herriot, departed without
comment.
Calling for $750,000,000 Payment Ends Another
A session to initial the agreement was fixed for to-night,
with a final
meeting to-morrow, when Mr. MacDonald will deliver
Chapter of World War.
the closing speech,
and the French Premier and the German Chancellor will
give their version
From the New York "World-Telegram" of last night
of the accord.
The difficult negotiations since June 16 were concluded
(July 8) we take the following:
in
the
early
morning hours, after which the negotiators
The agreement reached at Lausanne to put an
settled the amount of bond.
end to reparations by
Leon Fraser. American director of the Bank for Internati
accepting three-quarters of a billion dollars from Germany
onal Settlements,
as final payment,
drew up legal machinery for issuance of the bond,
closes another chapter in the history of the World
in which the bank will
War.
play a predominate role.
The reparations debt originally capitalize
d
$64,000,0
at
00,000, was adDuring the last arguments Chancellor von Papen contended
mittedly worth not more than $1,000,00
that inas0,000 when the Lausanne confermuch as Germany had dropped political condition
ence b:gan.
s to an agreement France
could accept a lower bond.
Long before that, however, the Associate
d Press points out, the first
The French argued that they already had reduced their
reparations committee pared the total down
original demand
from $64,000,000,000 to
from 8,000,000,000 marks to 4,000.000,000, but to meet Germany'
$31,500,000,000, but in 1922 Germany asked for
s gesture
a moratorium and out of
they were willing to accept 3,000.000.000.
that request came the Dawes committee.
The Chancellor wanted it scaled down to 1.900.000
,000 marks—the
amount which was suspended by the Hoover moratori
Put at 26 Billion.
um—but the French
replied that this would leave them nothing for bargainin
In 1924 that committee scaled down the
g with America.
payments to $595,000,000 a year,
"France won't get anything out of this," said Premier Herriot.
but
that
was only a temporary solution and
"The
four years later the Young
lighter the bond the more America will
get."
Commission was formed to determine how
much and how long Germany
should have to pay.
The Young Plan,called a final settlemen
t,subtracted another
Study of Gold Standard to Be Made by Brown Uni- 000 from the total
and accepted a system of spreading $26,500,0$6,000,000.00,000 over
60
years, all accounts to be settled by
versity Through Special Funds Made Available by
1988.
But the Young Commissioners,
like everybody else, could not foresee
Rockefeller Foundation.
the world economic crisis which
brought the next major step in the form
Brown University has received a special grant of funds of President Hoover's moratorium postponin
g all inter-governmental debt
from the Rockefeller Foundation to support a research payments for one year.
Dispute Over Payments.
project involving a comprehensive study of the gold standard, P That year's respite ended
on June 30 this year, but before then it became
the President's office of the University announced on June 17, obvious that even that would not be enough.
The result was the conference
at Lausanne.
at Providence, R. I.
The study, to be carried out by Professor William Adams
Brown Jr. and Carel Jan Smit of the Department of Economics, has as.its aim a re-interpretation of the international
gold standard in the light of its history. The announcement by Dr. A. D. Mead, Acting President, said:
The events of the recent past have made this study a timely one. There
has never been a time when more questions have been raised in the minds
of economists and in the public mind with regard to the gold standard.
The most dramatic of these events was the abandonment of the gold standard last September by England and other countries—only'six years after
England had, with great effort and sacrifice, returned to gold. The most
disturbing and perplexing of these events to the American public has been
the large withdrawals of gold from the United States and the realization
State Department at Washington, Followi
ng Reparations Accord at Lausanne Indicates Willing
ness to
Receive Proposals from European Debtor
s for
Reconsideration of War Debts.
State Department officials at Washington on July
8 said,
according to the Associated Press, the United
States will
gladly receive any proposals which Europea
n debtors of
this country may care to make for reconsid
eration of war
debts settlements. The accounts went on to
state:
Department officials are gratified that the
Lausanne Conference has
finally reached a definite compromise on the
tangled problem of reparations.
206
Financial Chronicle
It was said this Government now stands ready to fulfill its promise that
It would consider a revision of the debt arrangements as soon as European
Powers reached an agreement on the reparations problem.
No formal arrangements have been made by the State Department for the
reception of proposals for debt revision, but the department adheres to
its plan that the European nations must submit their proposals individually
and not as a bloc.
The policy of the United States has always been to consider the claims of
each of its 15 European debtors separately.
The fixing of Germany's final reparations payment at approximately
$750,000,000 reduces its obligations to less than one-tenth of the total fixed
under the Young Plan three years ago.
The "gentlemen's agreement" linking reparations with Europe's war
debts was looked upon in some circles as patently opening the way for new
appeals to the United States for a scaling down, if not actual cancellation,
of what is owed this nation.
$11,000,000,000 Owed United States.
The funded indebtedness of 15 European nations to the United States
exceeds $11,000,000,000. About 90% is due from Great Britain, France
and Italy.
Should Europe propose that debts to this country be scaled down in the
same proportion as German reparations are cut under the new Lausanne
agreement, the United States probably would not be offered more than
$1,000,000,000.
Lower Interest Rates on German Standstill Credits
Agreed to at London Conference of Foreign Private
Creditors.
The German delegates at the first of the quarterly conferences on the working of the standstill agreement coverirg
Germany's private foreign credits have succeeded in winning
a reduction of the rates of interest, said a London cablegram
July 5 to the New York "Times" from which we also quote
as follows:
to-day
The Germans and the various creditor committees recommended
after the conference that in view of the general cheapening of money,
the
lower interest rates should apply. No figures were given, although
2 to
Germans had hoped to get the rates, averaging 6 to 7%, reduced to
3%.
inAccording to a communique statistics provided for the conference
preferential
dicated that there was still due to creditors in certain countries
complete
to
order
rights to moderate amounts of German payments in
the
their share of the reduction of 10% of the Reich's private debts under
arrangement which began in March.
made
In agreement with the German delegates, arrangements were then
for the completion of these reductions. At least one-third of the amount
will be available immediately, the greater part will be provided by.Oct. 1
and the balance by the end of the year.
Regarding further reductions, it was agreed that beyond these called for
next
in connection with preferential rights these should be considered at the
meeting, Oct. 1.
inReports of the conversion of short-term indebtedness into long-term
vestments under the terms of the standstill agreement showed that satisprogress was being made in this direction.
f
/to
/
Robert Horne Urges Bimetalism to End Depression
—Says Linking of Silver and Gold Would Aid
Commodity Prices—Defends Inflation Policy—
Winston Churchill Assails Devaluation.
Winston Churchill and Sir Robert Horne, both former
Chancellors of the Exchequer, addressing the Royal Empire
Society in London on the money problem on June 15, said
that increasing the world's commodity prices was Oat first
essential.
Sir Robert suggested that the best solution would be to
unite silver and gold as a monetary basis. He said prices
of commodities to-day were below those of 1913 and out of
these piices had to be paid formidable costs. From the
London advices June 15 to the New York "Times" we
quote further as follows:
he asked.
"How does anybody suggest this burden can be borne?"
straight to
"If, as is obvious, it cannot be borne, and we are plunging
catastrophe under our present system, what is the solution?
we announce
"We are met with certain curious obsessions. As soon as
told we are trying
or suggest a policy of raising commodity prices we are
When they use that
to create prosperity by currency manipulation.
caught coming
phrase we are supposed to feel as guilty as if we had been
out of a henroost we had robbed.
on every day
carried
is
It
"But currency manipulation is no crime.
by the Bank of England.
minds that
"The fact is that there is a deep-seated view in people's
to touch
currency has been created by Providence and it is sacrilegious
and then
badly
it
It. Manipulation is not bad, but you may manipulate
the whole world suffers.
perpetual deter"There are other obsessions. The word inflation is a
who say, 'You
rent to a just consideration of these problems. People
why not. In
must not inflate,' can very seldom give you any reason
it because
begin
never
the last resort they are forced to say, 'You must
a drop of brandy
you cannot halt it.' They are like the people who refuse
to drink.
to a man with a heart attack in the fear he will take
was deliberately
"The deflation from which we are suffering to-day
carried on to the
adopted by our money authorities in 1918 and has been
that policy
reverse
to
time
is
It
extent of impoverishing the country.
and consider what our duty is to save the country.
"I don't despair of getting results at Lausanne."
would not engulf
Sir Robert foreshadowed a position in which by 1941 it
gold to provide the world sufficient currency.
of our present
"I long have held the view that the best solution to some
which the world's
troubles would be to unite silver with gold as a basis on
cent of the silver
business might be conducted," he said. "Eighty per
are found toproduced in the world comes from composite mines, where
gether silver, lead, zinc and copper.
are in prosper"The periods when the world wants lead, zinc and copper
is needed.
ity and it is in periods of prosperity that the most currency
need it.
Here is nature's own device for supplying us with currency when we
July 9 1932
"Silver is not simply a commodity. It is also the money of a vast population. Silver as part of our currency would increase the value of the sayings of that population and as a result produce immediate orders for goods
from manufacturers that the people require."
Mr. Churchill, referring to the proposed world economic conference,
said the first task of the delegates would be to discover the best technical
method of arresting the devaluation of commodities and then to invest
the process with authority that would command the confidence of the most
powerful States and the investing classes throughout the world.
Cancellation of Bonds of Berlin Electric Elevated &
Underground Rys. Co. Through Sinking Fund—
Amount Outstanding $13,125,000.
Speyer & Co., as fiscal agents, announce that there have
been purchased and canceled through the semi-annual sinking fund $475,000 bonds of the Berlin Electric Elevated &
Underground Railways Co. 30-year first mortgage 6M%
loan due 1956. Out of an original issue of $15,000,000
bonds, there remain outstanding $13,125,000 bonds.
Payment of Outstanding Balance of Government of
India 6% Bonds, 1932-33.
The following information was made available June 28
by the British Library of Information in New York:
The Secretary of State for India repaid on Wednesday, June 15 (tne
earliest possible redemption date), the outstanding balance of £3,604,600 of
the India 6% bonds, 1932-33, which were issued in February, 1930. The
total amount of the issue was E6,000,000, which has been reduced to the
above figure by independent operations.
It will be recalled that the outstanding balance (n1,213,428) of the India
% loan, 1932, of which the original amount was .02,500,000, was repaid
on Jan. 15 last.
The recent issue of India sterling stock was for £10 millions nominal
and thus, after allowing for this operation, the effect of the repayment of
the two loans mentioned above is to reduce by a very large amount the
outstanding total of Indian debt in this country.
Estonia Pays Debt Instalment to Great Britain.
A cablegram as follows from London July 5 is from the
New York "Times":
While the Lausanne conference has been in progress the British Government has been prodding the Estonian Government to pay a £16,000 instalment due on its war debt.
The payment was made yesterday, but thus far other Baltic Governments have refused to follow Esthonia's example.
Europe Urged by Italy at Lausanne Conference to
Cancel War Debt and End Reparation—Premier
Mussolini Warns World Recovery Will Be Blocked
by Delay.
The Italian delegation to the Lausanne (Switzerland)
reparations conference demanded on July 4 a final settlement
at the parley and urged that "cancellation be applied equally
to all European powers, creditors and debtors, of reparations
and war debts." The Lausanne message to the New York
"Times" further reported:
Premier Mussolini's Government calls on the others to show courage
not in words only and "to take their full share of the responsibilities.
sacrifices and risks which the gravity of the situation calls for."
In the Italian note it is stressed that "our task is not to prepare for
another conference, for should the present equivocal situation be prolonged
world recovery would become impossible."
From a copyright Lausanne cablegram July 4 to the New
York "Herald Tribune" we quote the following:
Dino Grandi, Italain Foreign Minister, informed Prime Minister J.
Ramsay MacDonald of Great Britain that Rome expected the Lausanne
delegates not only to set Europe an example for recovery by wiping the
reparations slate clean but to set the United States an equally powerful
example by canceling all Intra-European war debts. Premier Benito
Mussolini's smiling young lieutenant especially reminded the British that
Italy wanted cancellation of her war debt to Great Britain, which amounts
to an annuity of £4,500,000 (currently $15,900,000) and a total of 9.000,000,000 lire ($460.800,000).
Ready to Go Limit, Says Grandi.
Later to-night Signor Grandi confirmed that Italy would "go the limit"
by saying to this correspondent:
"I was for a clean slate. I remain for a clean slate—for all European
debts, of course, as that is all we are discussing here."
Nevertheless, the belief is not disguised in the Italian delegation that,
If the European powers cancel all their own debts as well as reparations, the
United Sates will be obliged to consider the same procedure.
The Italian maneuver obviously disturbed the British delegation, which
held a special meeting late to-night. Likewise, it threatens to create a
curious circumstance, making France the one strong power here whose
clear-cut policy is for large reduction of debts, but for ending the debt
muddle by paying something.
France Foreshadows U. S. Policy.
Which way the British will lean as a result of Italy's bid to get its debt to
Great Britain expunged remains to be seen. The French policy, however,
appears to be that which the American Government later Is most likely to
adopt for the basic treatment of debtors. Therefore, significantly enough.
effort, may emerge as defenders
the French, by resisting the new clean-slate
of the future American debt policy.
Signor Grand!, in his interview to-night, based Italy's demand on the
intra-European debts and reparations moratorium which was declared here
He said that this moratorium
on June 16 for the duration of the conference.
and so act that the Laupointed the way.and "we must follow it to the end
will be applied equally
sanne settlement will be final and that cancellation
and war debts
of
reparations
to all European powers, creditors and debtors
alike."
Volume 135
Financial Chronicle
The Italian Foreign Minister added that this was the only way to
pave
the ground for a "general settlement"—the phrase used here to signify
the
ultimate slashing of debts owed to America, which, the Italians now
indicate, they hope will be cancellation.
The Italian maneuver may come to nothing, but it marks the first official
proposal by any European Government that debts be sponged
completely
and thereby sets a precedent regarding American debt procedure.
Austria Eases Exchange Curb.
From Vienna July 5 the New York "Times" reported the
following:
Thanks largely to the efforts of Gilchrist Baker Stockton,
the United
States Minister, the Austrian authorities have relaxed the
regulations
governing the bringing in and taking out of foreign exchange
by tourists.
207
In Congress, a number of Puerto Ricans resumed
the demand for independence.
Last spring the old Unionist party passed out of existence
and was succeeded by the Liberal party, headed by Senator Antonio
R. Barcelo.
Theis program, described as a compromise between
the intense independentistas and the advocates of autonomy, holds out independen
ce as the
ultimate goal, but calls for working with the existing governmen
t until
that end can be attained.
Meanwhile the more militant independentistas, under the leadership
of
Senor Campos, have adopted a policy of having nothing
to do with the
United States and have been carrying on a vigorous anti-Ameri
can propaganda campaign.
A Washington dispatch June 28 to the "Times" stated:
The State and War Departments, which have not been informed
officially
that a Puerto Rican independence junta was offering
bonds in New York,
Indicated to-day that they intended to take no action.
Should any fraud or misrepresentation be involved, it was
said at the
War Department, presumably the legal officers
of the Government in
New York would take appropriate action.
The State Department said
the question did not concern it, since no foreign government
was involved
and the administration of Puerto Rican affairs was under
the War Department.
Adjustment of Outstanding Debts of Latin-American
Countries on Basis of Capacity to Pay Advocated
by Max Winkler.
An aijustment of the outstanding debts of Latin-American
countries on the basis of capacity to pay rather than theoSpecial Session for Puerto Rico.
retical possibilities as to what Latin-America might, at
Issuing a call on June 20 for a special session of the Puerto
some future date, be able to pay, was advocated by Max Rican Legislature to meet June 21, Governor James
R.
Winkler in an address on July 6 before the Institute of Public Beverly said the session's purposes would be to amend the
Affairs conducted at University, Virginia, on the subject of electoral law to insure just and impartial elections, and
Latin-limerican Government loans. Mr. Winkler con- amend the workmen's compensation Act and new municipal
tended that European debts to the United States Govern- law. In a San Juan message June 20 to the New York
ment were adjusted on such basis, and while Latin-American "Times" it was stated that Congressional action on the
loans are of a different character, there is no reason why an election law was suspended on assurances that the
insular
honest attempt should not be made to restore the credit of Legislature would enact an adequate law.
the southern half of the Western Hemisphere, and thus not
only open up a vast market for American goods, but make Bonds of Hungari
an Consolidated Municipal Loan
possible the free flow of commerce between the United States
Dealt in "Flat" On New York Stock Exchange.
and her most logical field of peaceful economic expansion.
The following notice was issued by Ashbel Green, SecreMr. Winkler went on to say:
tary of the New York Stock Exchange, on July 1:
The terms of adjustment could be decided by
an impartial committee of
experts comprising representatives of creditors and
debtors, who would
approach the problem with an unbiased mind.
It is largely because of the difficulties in connection with
Latin America's
huge indebtedness, created over a relatively short period
of time, that
trade with America's southern neighbors has not increased
in proportion
to the growth of the investment of American capital. Comparing
last
year's trade with an investment in Latin-American countries
with corresponding figures for 1913, we find that for every
$1,000 gain in America's
investment in the southern Republics there was an increase
of only $11.79
in the commerce between the United States and Latin-America,
In other words, from the standpoint of America's commerce
with LatinAmerica, the United States stands to-day where she stood
prior to the
war, although Americans are investors in the bonds
and enterprises of
these countries to the tune of almost $6,000,000,000, or
almost 43i times
the pre-war figure. Thus the slogan teat trade follows the
dollar does
not seem to have been borne out by actual developments.
America's total trade last year with the nations sou'n of
the Rio Grande
amounted to $894,182,000, as compared with $842,000,0
00 in 1913. Sales
to Latin-America declined from $361,000,000 in the last pre-war
year to
$346,974,000 last year, while purchases from LatinAmerica increased
during the same period from $481,000,000 to $547,208,0
00.
It is of interest to note that even in relation to America's
total foreign
trade Latin-America is back to the pre-war status.
Exports to the Latin
Republics totaled 14.31% of America's total sales
abroad, as compared
with 14.44% in 1913. The same applies also to purchases,
which showed
relatively little change in relation to the total, amounting
to 26.08% last
year compared with 27.66 in 1913. Latin-America's
total trade with
the United States aggregated slightly less than one-fifth
of the total commerce In the last pre-war year, and to 19.87%
in 1931.
While Latin-America's favorable trade balance
with the United States
amounted, in 1913, to about $120,000,0
00, or 8.73% on America's total
stake in the Southern Republics, last year's
balance was only 3.45% of
American investments in Latin-America. In otner
words, our stake in the
countries south of the Rio Grande is far less
adequately protected than it
was prior to the war.
$5,000,000 Bonds of Puerto Rican "Republic" Launched
by Junta in New York—Capital Not Alarmed.
A bond issue of 5,000,000 gold pesos ($5,000,000), intended to "finance the fight for Puerto Rican independence,"
was announced on June 28 in local Spanish-language newspapers, said the New York "Times" of June 29, which went
on to say:
Neither the War Department, under which falls the
administration of
the Island's affairs, nor the State Department evinced any great
interest
In the announcement, according to Washington dispatches, and
it was
indicated there that they would take no action on the
matter.
The bonds are being distributed by the Junta Nacional, Partido
Nacionalista de Puerto Rico, which is headed by Lorenzo
Pineiro Rivas of
the Club Nationalist, of 60 West 114th Street. They are signed by
P. Albizu Campos, President of the "Republic of Puerto Rico"; A. Ruiz
Morales, Treasurer, and M. Rivera Mates, Secretary-General.
The bonds, in denominations of ten gold pesos, are to draw 4% interest
"from the date of international recognition of the Republic of Puerto Rico,"
and are to mature five years later. The first issue, announced yesterday,
is of $200.000. only $2,000 of which is to be offered here.
The bonds are dated Nov. 16 1930,"in the 63d year of the proclamation
of the republic," which is reckoned from the islanders' first revolt against
Spain in 1868.
Although the Puerto Ricans for 15 years have been citizens of the United
States, nevertheless their leaders have been actively demanding greater
autonomy. with the Republican party urging Statehood and the Unionists
demanding ultimate independence.
In 1924 these two parties formed an alliance in which they agreed to
concentrate their demands upon the right to elect their Governor—now
appointed by the President. When bills to this effect failed of
passage
NEW YORK STOCK EXCHANGE.
Committee on Securities.
Hungarian Consolidated Municipal Loan 20-Year 7%
Secured Sinking Fund
Gold Bonds, External Loan of 1926, Due 1946—Inter
est.
July 1 1932.
Notice having been received that the interest
due July 1 1932 on Hungarian consolidated municipal loan 20-year
7% secured sinking fund gold
bonds, external loan of 1926. due 1946, is not
being paid:
The Committee on Securities rules that beginning
Friday. July 1 1932,
and until further notice the said bonds shall
be dealt in "flat" and to be
a delivery must carry the July 1 1932 and
subsequent coupons.
ASHBEL GREEN, Secretary.
Partial Distribution of Overdue Interest to Holders
of Bonds of Municipality of Medellin (Republic
of
Colombia).
Hallgarten & Co., as fiscal agents for the 25-year external
7% secured gold bonds of 1926 of the Municipa
lity of
Medellin (Republic of Colombia), announced June 27
that
they have available the sum of $28,026.40 for pro
rata
distribution to holders of the Dec. 1 1931 interest coupons
as a part payment, at the rate of $10.60 for each $35
coupon
and $5.30 for each $17.50 coupon, upon presentation
of
such coupons at their New York office on and after
July 5
1932.
Hallgarten & Co. and Kidder, Peabody & Co., as fiscal
agents for the external 6A% gold bonds of 1928
of the
Municipality of Medellin (Republic of Colombia) also
announced that they have available the sum of $76,239.80
for pro rata distribution to holders of the Dec. 1 1931
interest
coupons as a part payment, at the rate of $9.10 for each
$32.50 coupon and $4.55 for each $16.25 coupon, upon
presentation of such coupons at the New York office of either
of the fiscal agents on and after July 5 1932,
Notice Issued by New York Stock Exchange
on
Municipality of Medellin (Republic of Colombia)
Bonds.
The New York Stock Exchange issued the
following
notice on June 30:
NEW YORK STOCK EXCHANGE.
Committee on Securities.
Municipality of Medellin External 6%% Gold
Bonds of 1928, Due 1954—Int.
June 30 1932.
Referring to the ruling of the Committee
on Securities dated Dec. 1
1931. Sec. 356.
Notice having been received that
payment of $9.10 per $1,000 bond
will be made beginning July 5 1932, on account
of the interest due Dec. 1
1931, on Municipality of Medellin external 6X%
gold bonds of 1928.
due 1954:
The Committee on Securities further rules that
the bonds be quoted
ex-interest $9.10 per $1,000 bond on Tuesday.
July 5 1932; that the bonds
shall continue to be dealt in "flat" and to be a delivery
after July 5 1932
must carry the Dec. 1 1931 coupon stamped as to
payment of $9.10 per
$1,000 bond and subsequent coupons. Such coupons
must be securely
attached and bear the same serial number as the
bond.
ASHBEL GREEN, Secretary.
208
Financial Chronicle
Offering of New Issue of $16,000,000 2% Debentures
of Federal Intermediate Credit Banks—Rate Lowest
Since Establishment of Banks—Books Closed.
The July financing of the Federal Intermediate Credit
banks, announced July 5 by Charles R. Dunn, Fiscal
Agent for these institutions, consists of a new issue (dated
July 15 1932) of approximately $16,000,000 of 23' %collateral
trust debentures due in three, six and nine months. The
rate of 23. % is the lowest on the banks' debentures since
their establishment in 1923 and, said Mr. Dunn, is made
possible by the recent amendment of the Federal Reserve
Act which makes the debentures eligible collateral for 15-day
loans by member banks of the Federal Reserve System.
Oversubscription of the $16,000,000 issue was announced
July 5, the date of the offering. Books were closed at
11 a. m.
In June the Fiscal Agent sold $30,000,000 of 3% debentures, the demand resulting in the closing of the books
within an hour after they had been opened. The $15,000,000
sold in May were 33% debentures. In April the banks
offered $25,000,000 of 43is on a 4% basis. The present
issue of 2s were priced on application. The June financing
was the first since enactment of the Reserve Act amendment.
Mr. Dunn said the saving in interest charges now accruing
to the farmers' co-operative marketing associations by
reason of the recent legislation improving the loan eligibility
of the debentures had proved to be one of the most constructive steps taken by the present Congress, and one
which places the Federal Intermediate Credit banks' certificates of indebtedness on a parity with other Government
issues.
Total debentures outstanding as of June 16 was $86,840,000
compared with $88,500,000 on May 17. These debentures
represent the entire indebtedness of the 12 banks which
had assets on March 31 of $151,659,767, including loans
and discounts of $110,607,593, and capital stock subscription
callable from the U. S. Treasury of $30,000,000, and other
assets.
Farmers' National Grain Corporation Closes St. Paul
Offices and Other Branches.
From the Minneapolis "Journal" we take the following
from Chicago June 28:
Faced with a probable large reduction in the total volume of grain it
will handle and demands of the Federal Farm Board that steps be taken
to liquidate Government loans as rapidly as possible, the Farmers National
Grain Corporation is retrenching.
Over the wire come reports from points where this Corporation, created
and financed by the Farm Board, has been operating that branch offices
are being closed. Some of these offices came into the Grain Corporation's
possession when it bought the Updike Grain Co. of Omaha and Hall-Baker
Co. of Kansas City.
Branches Ordered Closed.
Among the branches which George S. Milner, General Manager of the
Corporation, has ordered closed are those at Des Moines, Carroll, Iowa
City and Sheldon, Iowa. Others being closed are at Duluth and St. Paul,
Minn.; Lincoln and Omaha, Neb., and St. Joseph, Mo., and Slows Falls,
S. D.
James E. Bennett & Co. are acquiring the St. Joseph and Des Moines
offices, and a Bennett correspondent, Kennison & Frazier, are taking
the Carroll office. Gooch & Co., millers, are buying the Lincoln office,
while the Omaha office quarters have been made available for Bartlett,
Frazier & Co.
Action Follows Board Ouster.
The loss of many of these branches has come about through the recent
action of the Chicago Board of Trade in denying the Updyke Grain Co
Privileges in the exchange and sentencing two of its officers to loss of trading
rights. This action was taken on the grounds that Farmers National
Grain Corporation purchased the Updike firm and used its trading privileges without noticying the Exchange.
The branches being closed were acquired when the Corporation purchased the Hall-Baker Co., paying $2,800,000, of which $250,000 was
for "good will." Trading will continue through the Minneapolis branch
of the Federally-financed Corporation.
Farmers Seed Loans 60% Repaid—Against 47 Millions
Advanced 30 Millions is Collected.
Repayments of Federal loans made to farmers last year
reached, on June 24, 60% of the amount loaned, according
to a tabulation made public, July 2, by the Farmers Seed
Loan Office, Department of Agriculture. According to the
"United States Daily" of July 5 the following additional
information was provided:
The repayments have reached $29,958,004 out of a total of about $47,000,000 loaned. Collections during the week ended June 24 were $57,025,
by far the greater part coming into the Memphis regional office, which
handles loans in the South.
The repayments in this area are ascribed to the fact that some early
crops are being marketed, making funds available to settle indebtedness.
Larger collections in more northerly areas are expected as harvests progress
northward.
Texas leads in percentage of loans repaid, collections for that State
having reached 75.1% of the amount loaned; Arkansas, with 73.6%. Is
second; Louisiana, third, with 72.9%; South Carolina fourth, with 71.6%.
and Georgia fifth, 70.1%.
July 9 1932
Little progress has yet been made in collections in States hard hit by
drouth last year. Wyoming, for instance, has repaid only 4.4% of the
loans; Montana, 7.3%; North Dakota, 8.1%, and South Dakota, 16.7%•
Prospects for good crops in that region this year are expected to result in
considerable payments at harvest time.
Included in the amount stated as collections is $12,125,671, represented
by warehouse receipts covering farm products stored and given as security
for loans. The loans are settled when the commodities, largely cotton,
are sold.
Illinois Livestock Marketing Association Joins
National Livestock Marketing Association.
The Illinois Livestock Marketing Association has been
admitted to membership in the National Livestock Marketing Association, according to a report made by the
National to the Federal Farm Board. Action was taken by
the Executive Committee of the National at a recent meeting
held in Chicago. In announcing this June 24 the Federal
Farm Board said:
The Illinois Association was organized to co-ordinate and direct both
the movement and sale of livestock for Illinois farmers. Membership
runs direct from the individual farmer or local association into the State
association. It is set up on a capital stock basis with 10,000 shares of
preferred stock at $25 per share and 50,000 shares of no par common stock
The State association was incorporated on March 4 1931 and stated
operations in September 1931, with its main sales office at Decatur. For
the purpose of selecting directors the State Is divided into eight districts,
based upon livestock population. Stockholder members in each of these
districts select a director to represent that district on the State Board.
Terminal marketing associations, which handle annually at least 1,000
cars of livestock from Illinois, are entitled to nominate one director to
serve on the Board. There are four of these terminal marketing directors
representing the producer commission associations at St. Louis, Chicago.
Peoria and Indianapolis. Two directors are nominated by the Illinois
Agricultural Association. The local units are branches of the State association and are all operated under the direction of the State Board.
The Illinois Association'has established branches at Shelbyville, Decatur,
Sheldon, Danville, McComb and Galesburg. Three other units are now
being organized. Volume of business is increasing rapidly as livestock
producers become acquainted with the program of the Association and
its services. In May 1932 the Association had 4,200 members.
Livestock is assembled at the various local concentration points for sale
by truck and by rail and is marketed either through the terminal co-operative
sales agencies in its trade territory or direct to packers, depending on
which outlet will give the livestock farmer the greltest net return. Since
the State and terminal associations have an Interlocking directorate,
competition between the concentration points and the terminal agencies
Is eliminated and livestock is effectively merchandised under central
control.
With the affiliation of the Illinois Association the National now has a
total of 23 co-operative livestock sales agencies which are members and
stockholders. Operations of the National, a grower-owned and growercontrolled marketing agency, are nationwide in scope and its services
are available to livestock producers throughout the country.
During the two-year period which the National Livestock Marketing
Association has operated it has handled 15,924,156 head of livestock
and has increased its membership 50% and its volume of business 20%
The National has loaned to stockmen more than $15,000,000 to enable
them to carry on their feeding and pasture operations.
Effect of Market Conditions on Banks Under Jurisdiction of Federal Farm Board—Loans of Federal
Land Banks During Year $42,000,000 Annual Report of Secretary Mills—Further Legislation Urged
to Provide More Stable Market for Debentures.
The 12 Federal Land Banks made 10,898 loans amounting
to $42,015,300 last year, bringing the total loans made from
organization to 523,094 loans aggregating $1,659,932,314,
according to the Federal Farm Loan Board's annual report,
which was sent to Congress on May 2. Eleven per cent of
the amount of these loans has been amoritzed by the borrowers, while pay-offs in full or in part, foreclosures, etc.,
have reduced the volume of the principal of the loans outstanding to $1,167,898,205.
The report discloses that there has been a decline both
in volume and number of loans in force in the last two years.
Commenting upon this fact, it says:
"The decrease in the volume of new loans closed is not due to any general
change In the policy of the Federal Land Banks of granting loans which In
the Judgment of the officers and directors are sound and come within the
requirements of the farm loan act, but is principally the result of the general
unfavorable agricultural conditions which have caused a reduction in the
volume of voluntary sales of farm lands and a decline in land values so
great that many farms do not afford adqeuate security for loans of sufficient
size to enable the owners to refund their indebtedness on a sound basis.
"Under the terms of the farm loan act, these banks may laon only on
first mortgages to applicants who are at the time, or shortly to become,
engaged In the cultivation of the farms to be mortgaged. According to the
lates estimates available, more than 40% of the farm mortgage debt of the
country is secured by farms which are not operated by the owners and,
therefore, would not be eligible as the basis of loans by Federal Land Banks.
The banks are not authroxled to make loans in excess of $25,000 and must
give preference to loans of $10,000 and under. Loans may be made for
certain purposes only, and in amounts which do not exceed 50% of the
appraised value of the land and 20% of the appraised value of the permanent
insured improvements and prescribe the basis of determining the appraised value.
"The volume of bonds sold by Federal Land Banks during 1931 was very
small, there being no public offering; consequently, the funds available for
loaning purposes consisted mainly of principal payments made by borrowers
on out standing loans and cash received in connection with sales of acquired
real estate. In addition,some of the banks had available funds carried over
from previous bond sales, and others obtained funds from short-term
credit and sales of bonds on repurchase agreements. Reports from the
Volume 135
Financial Chronicle
Federal Land Banks indicate that the banks generally were able to grant
all of the sound eligible loans for which applications were received."
Stating that banks operating under the jurisdiction of the
Frederal Farm Loan Board had serious difficulties in marketing their bonds and debentures because of adverse security market conditions throughout 1931, according to the
report of Secretary Mills, a Washington dispatch May 2 to
to the New York "Journal of Commerce" stated:
One important consequence of the developments in the securities market
and in the whole agricultural situation has been to make normal loaning operations increasingly difficult, the report said. In the case of Federal
Land Banks it was impracticable to issue bonds in volume during 1931.
Funds availabe for loans were obtained, in the main, from principal
payments collected on loans and cash received from real estate sales. These
collections totaled $36,000,000 and loans made during the year equally
$42,000,000.
Cites Position of Banks.
"It was apparent that if Federal Land Banks were to continue to fulfill
the function for which they were created ti would be necessary to increase
the earnings of some of the banks and to strengthen the capital structure
of the system so that bonds could be sold on a favorable basis and loaning
operations enlarged where and when circumstances warranted," the report
said.
As a result Congress enacted legislation authorizing the Treasury to make
additional stock subscriptions of $125,000.000 in Federal Land Banks.
Presidents of the Banks met in February and made a call for $63.243.740.
This stock subscliptIon has increased greatly the financial position of the
Banks. the report declared. The new capital also provides the Banks with
funds with which to continue to make new loans and should enable them to
sell additional bonds as the market improves. There remained February
29 an additional $61,756,260 subject to call in order to meet future needs of
the Banks.
Emphasis was placed on the urgent need for further legislation to provide
a more stable market for the debentures and other obligations of Federal
intermediate credit banks.
After the 192 crash. it was pointed out, there was the tendency to confine investments to securities readily marketable. While debentures met all
°the, tests of prime investments they were not supported by a strong secondary market insuring ready marketability at all times.
Two Bills Pending.
Two bills are pending in Congress proposing changes to meet the Board's
desires and their passage was recommended.
The Board seeks to enable the Federal Intermeidate Credit Banks to accept drafts and bills of exchange drawn by co-operative associations or
persons engaged in producing or marketing stable agricultural products.
This would make it possible for the Banks to obtain funds at the prevailing acceptance rate and "would open an additional channel through which
agricultural producers could receive financial aid in marketing their products
in an orderly manner," according to the report.
The Board also sought passage of an amendment so that where the capital
of an Intermediate Credit Bank has been impaired these may be a levy
against other banks for the purpose of restoring the capital of the impaired
Bank. It was pointed out that Credit banks act as a unit in marketing their
debentures. Another recommended amendment provides for enabling
Credit Banks to build up substantial surpluses from their net earnings before paying over any portion of the earnings to the Treasury.
Opposition was expressed to many bills introduced which would require
extension of the time of payment of installments due on loans by Land
Banks and bills which would require the Banks to accept Land Bank bonds
at par in satisfaction of amounts due.
Annual Report of Federal Farm Loan Board Reports
Record Farm Real Estate Sales.
"Disposals of farm real estate of the Federal Land Banks
were greater in 1931 than in any previous year," says the
annual report of the Federal Farm Loan Board transmitted to
Congress on May 2. The number of sales exceeded those
of 1930 by 35% and the amount obtained for the farms exceeded the previous year's figure by 16%. The total number
of properties disposed of was 4,232 for a total consideration of
$11,302,235.
The Board's report attributes the increase in the number
of sales largely to improved sales organization and it points
out that the decline in the net amount received for the
properties reflects the trend of agricultural real estate values
during the latter part of 1931. "With lower prices of agricultural commodities and an increase in the amount of real
estate acquired by banks and other institutions dealing in
farm mortgage loans and with such properties potentitally
if not actually on the market, a decline in prices was almost
inevitable." The report also points out that the Banks
received in 1931, 80.1% of their investment in the properties disposed of while in 1930 the percentage was 83.9.
Commenting upon the sales policy of the Banks, the report
says:
"The Banks have found from experience that they are not in a position to
operate acquired farms on a basis which yields satisfactory returns above
necessary expenditures. The farms which they acquire, as a rule, are
scattered over their entire district and in such circumstances the cost of
operation and supervision is high.
Moreover, the returns from a farm
operated from a distance rarely are are as high as when operated by an
interested owner living on or near the farm and giving its operation close
and constant attention. Since the Banks have bond Interest and operating
expenses which must be met, it is of the utmost importance that they
avoid an accumulation of low-earning or non-earning assets. It is not the
policy, however, to dump farms on the market indiscriminately, but to
make sales only when satisfactory prices can be obtained.
Unemployment Stimulates Sales.
"Some of the Banks report that, notwithstanding the unfavorable
agricultural conditions, sales in their district were stimulated to some
extent by the lack of employment In cities, which led city workers having
209
previous agricultural experience to seek to return to farming and had a
tendency to cause farmers to remain on their farms. Unfortunately, many,
who, because of lack of urban employment are interested in purchasing
farms, do not have sufficient funds with which to make satisfactory initial
payments on the purchase price of a farm or with which to operate a farm.
Many inquireis are received also from unemployed city workers who have
bad no farming experience whatsoever. As a rule, prospective purchasers
who have had no previous farm experience or who have insufficient capital
with which to operate farms or to make satisfactory initial cash payments,
are not encouraged to purchase farms as the banks have found from experience that nothing is to be gained by making sales of this character,
since a large percentage of them would in all probability fail and the farms
be reacquired by the Banks in poorer condition than at the time of sale.'
About 65% of Outstanding Stock of Federal Land
Banks Owned by United States GovernmentRatio of Land Bank Bonds to Capital and Surplus
Lowered to 1 to 6.
The Federal Government now owns the major part of
the stock of the 12 Federal Land banks, according to figures
released at Washington on July 5 by the Federal Farm
Loan Board. It is further stated that at the close of 1931
these banks had practically repaid the Government subscription to stock of approximately $9,000,000, made when
the banks were originally established, for it held only
$204,698 and this was limited to stock in two banks. In
January this year Congress appropriated $125,000,000 to
be used by the United States Treasury to invest in the stock
of the 12 Federal Land banks. The announcement made
July 6 by the Federal Land banks adds: •
In February $63.243,740 of stock in the 12 banks was subscribed by the
Secretary of the Treasury from the appropriation made for this purpose.
This was followed in April by another subscription amounting to $11,000.000
The last subscription, aggregating $50,756,260 and made at the end of
June, brought the Government's investment up to approximately 65%
of the total stock outstanding. Although this stock is owned by the
Government, it has no voting privileges. It changes the ratio of capital
to bonds outstanding from 1 to 18 (as of Dec. 31 1931) to 1 to 6, thus
greatly improving the position of the banks and the bondholders as well
as making funds available to loan to farmers on long-term amortized,
first farm mortgages.
Complete data regarding the ratio between total stock and total bonds
outstanding subsequent to this last subscription made by the Treasury
are not yet available for the individual banks. The effect upon this
ratio may be indicated, however, for the different institutions, by adding
the stock subscribed in June to the stock outstanding May 31 and comparing this total with the bonds outstanding on May 31. On thissbasis
the ratios for the 12 banks are as follows:
Columbia, 1 to 3.5
Spokane, 1 to 4.7
Berkeley, 1 to 4:8
St. Paul, 1 to 4.9
Springfield. 1 to 5.1
New Orleans. 1 to 5.7
Baltimore, 1 to 6.2
St. Louis, 1 to 6.7
Wichita, 1 to 7.1
Louisville, 1 to 7.7
Houston, 1 to 8.0
Omaha. 1 to 8.4
When the reserves and undivided profits of the banks on May 31 are
added to the stock, the above ratios are still further improved. On this
basis, the ratio for the System as a whole is 1 to 5.1, and for the individual
banks as follows:
Columbia, 1 to 3.4
Spokane, 1 to 4.6
Berkeley, 1 to 4.0
St. Paul, 1 to 4.6
Springfield, 1 to 4.7
New Orleans, 1 to 4.9
Baltimore. 1 to 4.9
St. Louis, 1 to 6.0
Wichita, 1 to 5.5
Louisville, 1 to 5.8
Houston, 1 to 5.7
Omaha, 1 to 6.0
Notices Regarding 7% 20-Year External Secured Sinking Fund Gold Bonds, Series A, B, C and D, Being
Dealt in "Flat" on New York Stock Exchange.
Ashbel Green, Secretary of the New York Stock Exchange, issued the following notices on July 1:
NEW YORK STOCK EXCHANGE
Committee on Securities
Department of Antioquia (Republic of Colombia)
7% 20-Year External Secured Sinking Fund Gold Bonds, Series A,
due 1945-Interest.
July 1 1932.
Notice having been received that the interest due July 1 1932 on Department of Antioquia (Republic of Colombia) 7% 20-year external secured
sinking fund gold bonds, series A, due 1945, is not being paid:
The Committee on Securities rules that beginning Friday, July 1 1932.
and until further notice, the said bonds shall be dealt in "flat" and to be a
delivery must carry the July 1 1932 and subsequent coupons.
Department of Antioquia (Republic of Colombia)
7% 20-Year External Secured Sinking Fund Gold Bonds, Series B.
due 1945-Interest.
July 1 1932.
Notice having been received that the interest due July 1 1932 on Department of Antioquia (Republic of Colombia) 7% 20-year external secured
sinking fund gold bonds. series B, due 1945, is not being paid:
The Committee on Securities rules that beginning Friday, July 1 1932,
and until further notice, the said bonds shall be dealt in "flat" and to be a
delivery must carry the July 1 1932 and subsequent coupons.
Department of Antioquia (Republic of Colombia)
7% 20-Year External Secured Sinking Fund Gold Bonds, Series C.
due 1945-Interest.
July 1 1932.
Notice having been received that the interest due July 1 1932 on Department of Antioquia (Republic of Colombia) 7% 20-year external secured
sinking fund gold bonds, series C, due 1945, is not being paid:
The Committee on Securities rules that beginning Friday, July 1 1932,
and until further notice, the said bonds shall be dealt in "flat" and to be a
delivery must carry the July 1 1932 and subsequent coupons.
Financial Chronicle
210
Department of Antioouia (Republic of.Colombia)
20-Year External Secured Sinking Fund Gold Bonds, Series D.
due 1045-Interest.
July 1 1932.
Notice having been received that the interest due July 1 1932 on Departexternal
secured
-year
ment of Antioquia (Republic of Colombia) 7% 20
sinking fund gold bonds, series D, due 1945, is not being paid:
The Committee on Securities rules that beginning Friday, July 1 1932,
and until further notice, the said bonds shall be dealt in "flat" and to be a
delivery must carry the July 1 1932 and subsequent coupons.
ASHBEL GREEN,Secretary.
7%
Bonds of State of San Paulo Dealt in "Flat" on
New York Stock Exchange.
The following notice was ssued by the New York Stock
Exchange on July 1 with regard to bonds of State of San
Paulo being dealt in "flat":
NEW YORK STOOK EXCHANGE
Committee on Securities
State of San Paulo
15-Year 8% Sinking Fund Gold Bonds, External Loan of 1921,
due 1936-Interest.
July 1 1932.
Notice having been received that the interest due July 1 1932 on State
external
loan of 1921,
gold
bonds,
sinking
fund
Paulo
15
-year
8%
of San
due 1936, is not being paid:
The Committee on Securities rules that beginning Friday, July 1 1932,
and until further notice, the said bonds shall be dealt in "flat" and to be a
delivery must carry the July 1 1932 and subsequent coupons.
ASHBEL GREEN,Secretary.
Market V alue of Listed Shares on New York Stock
Exchange July 1, $15,633,479,577, Compared with
$16,141,061,080 June 1-Classification of Listed
Stocks.
As of July 1 there were 1,253 stock issues aggregating
1,315,172,584 shares listed on the New York Stock Exchange with a total market value of $15,633,479,577. This
compares with 1,262 stock issues aggregating 1,320,062,766
shares listed on the Exchange June 1 with a total market
value of $16,141,061,080. In making public the July 1
figures on July 6 the Exchange said:
As of July 1 1932, New York Stock Exchange member borrowings on
security collateral amounted to $243,574,295. The ratio of security loans
to market values of all listed stocks on this date was therefore 1.56%.
As of June 1 1932, New York Stock Exchange member
borrowings on security collateral amounted to $300,397,222.
The ratio of security loans to market values of all listed
stocks on that date was therefore 1.86%.
As of July 1 1932, there were 1,253 stock issues aggregating 1,315.172,584
shares listed on the New York Stock Exchange, with a total market value
of 515.633,479,577.
In the following table, listed stocks are classified by leading industrial
groups, with the aggregate market value and average price for each:
July 1 1932.
Autos and accessories
Financial
Chemical
Building
Electrical equipment manufacturing
Foods
Rubber and tires
Farm machinery
Amusements
Land and realty
Machinery and metals
Mining (excluding iron)
Petroleum
Paper and publishing
Retail merchandlzing
Railroads and equipments
Steel, Iron and coke
Textiles
Gas and electric (operating)
Gas and electric (holding)
Communications (cable,tel. and radio)
Miscellaneous Utilities
Aviation
Business and office equipment
Shipping services
Ship operating and building
Miscellaneous business
Leather and boots
Tobacco
Garments.,
U. S. companies operating abroad....
Foreign companies(incl. Cuba & Can.)
All listed companies
June 1 1932.
Market
Values.
Aver.
Price.
Market
Values.
Ayer.
Price.
668,304,216
445,459,051
1,212,039,066
96,540,334
387,980,365
1,243.157,810
88,007,217
139,539,354
51,071,506
25,187,414
390.399.828
359,546,287
1,696,817,894
88,769,147
840,594.897
1,363,977,764
583,469,887
70.917,246
1.492,667.366
928,792,697
1,686,483.995
89,787,869
58,204,927
106,589,037
4,935.154
7,143,823
41,791,907
161.494,803
855,744,064
7,511,273
188,396,255
252,157,124
S
6 17
7.77
18.21
6.10
9.49
17.41
7.13
12.42
2.71
5.02
8.18
6.03
9.41
5.53
11.86
11.82
14.88
6.42
21.39
9.57
44.98
8.80
3.21
10.18
2.36
2.12
9.31
23.12
32.86
5.77
5.61
5.48
725,735,472
431,988,931
1.273.497,635
102,624,719
370,993,308
1.261.994,978
91,034,395
158,898,870
67,010.775
27,777,374
388,830,851
377,472,245
1,682,358,100
105,491,191
850,408,819
1,419,619,478
685,051,872
74.831.674
1,472,133,138
926,075,323
1.894.112,809
103,811,937
51,554,353
110,354,456
6 300,073
7.781,971
40,205,000
180,348,545
819,864,087
7,866,573
196,168,206
228,863,922
$
6.69
7.46
19.13
6.48
9.12
17.67
7.38
14,15
3.34
5.54
7.84
6.38
9.32
6.58
11.93
12.30
17.47
6.76
'21.10
9.52
50.51
10.17
2.84
10.54
3.01
2.25
8.96
25.67
31.48
6.05
5.67
4.97
15,633,479,577 11.89 16.141,061.080 12.23
Outstanding Brokers' Loans on New York Stock
Exchange at New Low Figure-Total June 30,
$243,574,295-Decrease of $56,822,927 in Month.
A new low figure for brokers' loans on the New York
Stock Exchange was established on June 30, on which date
the total amount outstanding is announced as $243,574,295.
This is $56,822,927 below the May 31 figures of $300,397,222. The latter total represented a decrease of $78,619,440 below the April 30 figures. The latest figures
(June 30) are made up of demand loans of $189,343,845
and time loans of $54,230,450.. The June 30 figures were
announced as follows by the Exchange on July 5:
July 9 1932
Total net loans by New York Stock Exchange members on collateral,
contracted for and carried in New York as of the close of business June 30
1932, aggregated $243,574.295.
The detailed tabulation follows:
Demand Loans. Time Loans.
(I) Net borrowings on collateral from New York banks
or trust companies
$146,607,596 347.590,950
(2) Net borrowings on collateral from private bankers,
brokers, foreign bank agencies or others in the City
42,736,249
6,639,500
of New York
..,189,343,845 .54.230.450
Combined total of time and demand loans
$243,574,295
The scope of the above compilation is exactly the same as in the loan
report issued by the Exchange a month ago.
The compilation of the Stock Exchange since the issuance
of the monthly figures by it, beginning in January 1926,
follows:
1926Jan. 30
Feb. 27
Mar.31
Apr. 30
May 28
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
1927
Jan. 31
Feb. 28
Mar.31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
1928Jan. 31
Feb. 29
Mar.31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
1929Jan. 31
Feb. 28
Mar.30
Apr. 30
May 31
June 29
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
1930Jan. 31
Feb. 28
Mar.31
Apr. 30
May 29
June 30
July 31
Aug. 30
Sept.30
Oct. 31
Nov.30
Dec. 31
1931Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
1932Jan. 30
Feb. 29
Mar. 31
Apr. 30
May 31
June 30
Demand Loans.
82,516,960,599
2,494.846,264
2,033.483,760
1,969.869,8.52
1,987,316,403
2,225,453.833
2,282,976,720
2,363,861,382
2,419,206,724
2,289,430,450
2,329,536,550
2,541,682,885
Time Loans.
$966,213,555
1,040,744,057
966,612,407
865.848,657
780,084,111
700,844,512
714,782,807
778,286,686
799,730,286
821,746,475
799,625,125
751,178,370
Total Loans.
$3,513.174,154
3,536,590,321
3,000,096,167
2,835,718,509
2,767,400,514
2,926,298,345
2,996,759,527
3,142,148,068
3,218,937,010
3,111,176,925
3,129,161,675
3,292,860,253
2,328,340,338
2,475,498,129
2,504,687,674
2,541,305,897
2.673,993,079
2,756,968,593
2,764,511,040
2,745,570,788
3,107,674,325
3,023,238,874
3,134,027,002
3.480.779,821
810,446,000
780,961,250
785,093,500
799,903,950
783,875,950
811,998,250
877,184,250
928,320,545
896,953,245
922,898,500
957,809,300
952,1.27.500
3,138,786,338
3,256,459,379
3,289,781,174
3,341,209,847
3,457,860,029
3,568,966,843
3,641,695,290
3,673,891,333
3,914,627,570
3,946,137,374
4,091,836,303
4,432,907,321
3,392,873,281
3,294,378,654
3,580,425,172
3,738,937,599
4,070,359,031
3.741,632,505
3,767,694,495
4,093,889,293
4,689.551.974
5,115,727,534
5,614,388,360
5,722,2.58,724
1,027,479,260
1,028,200,260
1,059,749,000
1,168,845,000
1,203,687,250
1,156,718,982
1,069,653,084
957,548,112
824.087,711
763,993,528
777,255,904
717,481,787
4,420,352,514
4,322,578,914
4,640,174,172
4,907,782,599
5.274,046,281
4,898,351,487
4,837,347,579
5.051,437,405
5,513,639,685
5.879,721,062
6,391,644,264
6,439.740,511
5,982,672.411
5,948,149,410
6,209,998,520
6,203,712,115
6,099,920,475
6.444,459,079
6,870,142,664
7.161.977.972
7,831,991.369
5,238,028,979
3,297,293,032
3,376,420,785
752,491,831
730,396,507
594,458,888
571,218,280
565,217,450
626,762,195
603,651,630
719,641,454
717,392,710
870,795,889
719,305,737
613,089,488
6,735,164,241
6,678,545,917
6,804,457.108
6,774,930,395
6,665,137,925
7,071,221,275
7,173,794,294
7,881,619,426
8,549,383,979
6.108,824,868
4,016,598,769
3,989,510.273
3,528,246,115
3,710,563,352
4,052,161,339
4,362,919,341
3,966,873,034
2,980,284,038
3,021,363,910
2,912,612,666
2.830,259.339
1,980,639.692
1,691,494,226
1,519,400,054
456,521,950
457,025,000
604,141,000
700.212,018
780,958,878
747,427,251
668,118,387
686.020,403
651,193,422
569,484.395
470,754,776
374,212,835
3,984,768,065
4,167,588,352
4,656,302,339
5,063,131,359
4,747,831,912
3,727,711,289
3.689,482,297
3,598,633,069
3,481,452,761
2,556,124,087
2,162,249,002
1,893,612,890
1,365,582,515
1,505,251,689
1,629,863.494
1,389.163,124
1,173,503,350
1,102,285,060
1,041,142,201
1,069,280,033
802,153,879
615,515,068
599,919.108
502,329,542
354,762,803
334,504,369
278,947,000
261,965,000
261,175,300
289,039,862
302,950,553
284,787,325
242,254,000
180,753,700
130,232,800
84,830,271
1,720.345,318
1,839,756,058
1,908,810,494
1,651,128,124
1,434,683.650
1,391,324,922
1,344,092,754
1,354,067.350
1,644,407,879
796,268,768
730,151,908
587,159,813
452,706,542
482,043,758
496,577,059
341,003,662
246.937,972
189,343,845
59,311,400
42,620,000
36,526,000
38,013,000
53,459,250
54,230,450
512,017,942
524,663,758
533,103,059
379,015,662
300,397,222
243,574,293
Short Sales on New York Curb Exchange on June 30
Totaled 31,666 Shares-Decrease of 1,962 Shares to
New Low Record.
The short position in all securities on the New York Curb
Exchange as of June 30 1932 totaled 31,666 shares, a de-.
crease of 1,962 shares, compared with the total of 33,628
shares as of June 15 1932. This is a new low record since
the Exchange began to issue figures on the short interest in
the Fall of 1931. The high record was established on Sept.
23 1931, when the short interest amounted to 129,542
shares. During the period covered in the compilation 909,905
shares were dealt in.
Volume of Trading on New York Cocoa Exchange
in June 25,205 Tons, Compared With 18,961 Tons
in May.
In its review of June the New York Cocoa Exchange says:
Volume of trading In June on the New York Cocoa Exchange showed
an improvement over the preceding month. Total sales in June were
Volume 135
Financial Chronicle
1,881 lots, or 25,205 tons, compared with 1,415 lots, or 18,981 tons, for
the month of May. Futures prices showed net declines of two to nine
points for the month.
Stocks of cocoa in New York warehouses declined 33,000 bags during
June, falling from 568,478 bags to 535.219 bags at the end of the month.
Arrivals of cocoa in the United States during June were 101,143 bags,
compared with 130.091 bags during May and 211,043 bags in June 1931.
Volume of Sugar Trading on New York Coffee and
Sugar Exchange Doubled in June As Compared
With Previous Month.
Volume of sugar trading doubled on the New York Coffee
and Sugar Exchange during the month of June as compared
with May, according to statistics issued by the Exchange
on July 1. The Exchange says:
For June the turnover was 667,400 tons, compared with 317,950 tons
'in May. Brokers reported a great broadening of the sugar market with
many houses trading that had been out of the market for years.
Raw sugar improved about 40% in value during the month. With
the current world sugar crop estimated at about 26,000,000 tons this
means an improvement of about $150,000,000 in value for the crop.
Futures prices improved 21 to 23 points during the month. Actual raw
sugar advanced from .57 cents a pound to .85 cents, without the duty.
at the close of the month.
Bank Stock Buying by Group Opposed—Purchase
Prohibited by West Virginia Branch Banking Law,
State Attorney-General Rules.
State laws prohibiting branch or group banking were
held applicable to purchase of bank stock by the American
Readjustment Corporation of Morgantown in an opinion
recently rendered by Attorney-General Howard B. Lee of
West Virginia. This is learned from Charleston, W. Va.,
advices July 2 to the "United States Daily", which further
reported:
The opinion was prepared by R. A. Blessing, Assistant Attorney-General,
at the request of L. It. Charter Jr., State Banking Commissioner, who
said a plan had been proposed by the Readjustment Corporation for buying
op stock in a group of State banks.
Purchase of bank stock by a corporation for the purpose of controlling a
banking institution, Mr. Blessing held, would amount to the entrance by
the corporation into the branch banking business, which is prohibited by
State law.
The text of his opinion, to Mrs. Helen Barringer, Deputy State Banking
Commissioner, follows in full text:
Dear Mrs. Barringer: We have examined the report made by Dr. Luther
A. Harr. Professor of Banking and Finance, Wharton School, University
a Pennsylvania, on the "Arc Plan of Banking." and the outline of a proposed plan of operation of the American Readjustment Corp., a West
Virginia corporation, in the light of your request for an unofficial opinion
and in the light of the banking and other laws of this State which are involved. We have also examined the purposes of said corporation as set
out in the articles of incorporation on file in the office of the Secretary of
State.
The purposes enumerated in its articles of incorporation are legitimate
so long as their exercise does not violate any law. In other words the
purposes are legitimate, but if their use should be invoked so as to result
in the violation of the statute, Code 31-4-9, prohibiting branch banking,
or the statute, Code 31-4-18, prohibiting a corporation other than banking
Institutions from doing a banking business, or by evasion, the statute.
Code 31-4-16, fixing a double liability of stockholders, the exercise thereof
would become unlawful. We mention only these three provisions of the
statute as they suffice to point out the possibilities to be encountered.
As examples, it would seem that should such a corporation obtain a
-controlling interest in any banking institution and continue its banking
activities, the former in contemplation of the statute would be doing a
banking business, and that should such controlling interest be obtained
in more than one banking institution, a double liability attaching in each
Instance, or as to each bank, and the property of the holding corporation
-as a stockholder being liable therefor, it would result in diverting the
assets or property of the holding corporation, as stockholder of one bank,
to meet the double liability of the other bank, in case of failure of either.
Your attention is also directed to the third paragraph of section 38,
article 8, chapter 31 of the Code, dealing with forbidden practice which
reads as follows:
"It shall be unlawful for any person to purchase and hold stock in any
banking institution organized or authorized to transact business hereunder
or the purpose of selling, negotiating or trading participation in the ownership thereof either for the purpose of perfecting control of one or more such
banking institutions or for the purpose of inducing other persons, firms
-or corporations or the general public to become participating owners therein.
Nothing herein shall prevent the ownership of stock in any such banking
institution by any person for investment purposes.
"Any person violating any provision of this section shall be punished
as provided in the next following section."
Might not the word "person" in the quoted statute include the word
-"corporation" as the word "person" is defined in paragraph (1), section 10.
article 2, chapter 2 of the Code.
Having come to this conclusion and the proposed plan otherwise being a
-question of management and supervision, comment thereon becomes
unnecessary.
N. Penrose Hallowell, Partner in Former Firm of Lee,
Higginson & Co., Heads New Lee Higginson
Corporation.
The executive personnel of the new Lee Higginson Corporation, organized by members of the old banking firm of
Lee, Higginson & Co., was announced yesterday, July 8.
Plans for the formation of the new corporation to engage
in the securities business were disclosed last month on the
atmouncement of the liquidation of the old investment firm.
N. Penrose Hallowell, one of the members of the old firm,
will be Executive Vice-President in general charge of the new
corporation's business in New York, Boston and Chicago,
211
with headquarters. Last night's New York "Evening
Post,"from which the foregoing is learned, went on to say:
The three main offices of the corporation will be in direct charge of the
following Vice-Presidents, all of whom were partners in Lee, Higginson &
Co. New York,Edward N.Jesup Boston, Cnarles E.Cotting,and Chicago,
Charles H. Schweppe.
Edward H. Osgood will be Treasurer and Barrett Wendell Jr. and William
McCormick Blair will be connected with the corporation's Chicago office.
"The other members of the partnerslip of Lee, Higginson & Co.," says
the announcement of the executive personnel, "will give their active cooperation to the new corporation while devoting themselves mainly to the
affairs of toe firm."
The old firm was hard hit by the collapse of Kreuger & Toll following
the suicide of Ivar Kreuger, Swedish match king, and announced its intention to discontinue issuance of securities and to liquidate its assets.
First National Old Colony Corporation Makes Changes
in Title—Hereafter Will Conduct Business in New
England States (Except Connecticut) Under Name
of "The First of Boston Corporation of Massachusetts" and in Other States and Europe and
South America Under the Title of the First of
Boston Corporation.
At a meeting on July 6 of the board of directors of the
First National Old Colony Corp. of Boston, the security
affiliate of the First National Bank of Boston, it was decided
for convenience of operation to conduct its business in the
New England States, except Connecticut, under the name
of "The First of Boston Corporation of Massachuetts," and
to conduct its business in the remaining States and abroad
under the title of "The First of Boston Corporation." These
corporate changes do not involve any change- of policy, of
personnel or of the number or location of offices.
Allan M. Pope—we quote from the Boston "Transcript"
of July 7, from which the above information is obtained—
will be Chairman of the board of the First of Boston Corporation of Massachusetts and President of the First of
Boston Corporation, • while Edwin R. Marshall will be
President of the former corporation and Senior Vice-President
of the latter. All the present officers of the First National
Old Colony Corporation will continue their duties under
similar titles in one or the other of these corporations. The
"Transcript," continuing, said:
All the present offices will be continued at the same address, and the
customers of the First National Old Colony Corp. may continue to do
business as heretofore with the most conveniently located office of either
corporation.
This change has been contemplated for some time for convenience ill
meeting new conditions, resulting in part from the growth of the business
of the First National Old Colony Corp. now conducted through offices
in the principal cities of the United States and through representatives in
England, France, Germany and Argentina.
The First National Old Colony Corp. was toe successor to the First
National Corp. of Boston, established in 1918, and of the Old Colony Corp.
formed in 1926, being organized when the First National Bank of Boston
and the Old Colony Trust Co. were merged (in December 1929).
The offices to be operated by the First of Boston Corporation of Massachusetts are in Boston, Worcester and Springfield, Mass.; Providence, R. I., and Rutland, Vt., while
those which will be under the jurisdiction of the First of Boston Corporation are in New York, Philadelphia, Baltimore,
Washington, Pittsburgh, Hartford, Buffalo, Atlanta, Chicago, Cleveland, St. Louis, Kansas City, San Francisco,
Los Angeles, Portland, Ore., and Seattle. Foreign representatives of the latter corporation will be in London, Paris,
Berlin and Buenos Aires. The executive offices will be at
67 Milk St., Boston, and 100 Broadway, New York.
Receivers Appointed for Brokerage Concern of Hambleton & Co., Baltimore, and Its Affiliate, the
Hambleton Corporation.
Henry G. Perring and Edwin W. Poe on July 7 were
appointed receivers of the banking and brokerage firm of
Hambleton & Co., Baltimore, Md., and its affiliated company, the Hambleton Corporation, by Judge Charles F.
Stein in the Circuit Court. The receivers were required to
post $20,000 bond in each ease. The Baltimore "Sun" of
July 8, from which the above information is obtained, went
on to say:
The receivership proceedings were instituted last month by groups of
stockholders in each of the organizations. The defendant organizations did
not resist the receiverships, but submitted to such action as the Court might
determine to take.
In its answer, Hambleton & Co. admitted that the report of its President
to stockholders for the year 1931 showed an operating loss of $238.614.35.
This was incurred, it was said, by closing offices and terminating contracts
before the present management was elected.
Call Upon National Banks for Statement of Condition
June 30—First Required by. Comptroller of Currency This Year.
A call issued by the Comptroller of the Currency on July 1
for statements of condition by National banks under date of
212
Financial Chronicle
June 30, was the first published report to be required in the
case of these institutions this year. The customary call for
the first quarter was omitted by the Comptroller. An item
regarding the omission of the call at that time appeared in
our issue of April 2, page 2439.
The New York State Superintendent of Banks, as well as
other State bank heads issued the usual call for reports from
banks, trust companies and private bankers at the close of
business June 30.
Call Money Rate on New York Stock Exchange Cut
to 2%.
The renewal rate for call money on the New York Stock
Exchange, which had been "pegged" at 23/2% since early in
January was reduced on July 7 to 2%. Stating that this
action terminated the longest stretch of unchanged call
money quotations on record, the Now York "Times" of
July 8 added:
The last previous time when call money renewed at 2% was on Oct. 15
of last year. The rate rose to 3% at the end of last year and dropped to
21i% on Jan. 8. since when it has been maintained at that level constantly
despite the fall of other money rates to record lows.
Money brokers remarked that there was no particular reason for the
change in rates yesterday that had not existed months ago. Outside the
Stock Exchange call money has been available at 1% for sometime,although
some of the larger banks have maintained an informal agreement not to
make outside call loans at less than the Stock Exchange figure.
The money committee of the Stock Exchange has been subjected to
criticism from time to time for maintaining an artificial rate for call money
at a time when bankers' bills are being discounted at three-quarters of 1%
and time money is available at 134 %. The reasons for the maintenance
of the pegged rate are unknown since no danger of large withdrawals of
funds was apparent.
Acceptance Credit Fees Raised by New York City
Banks—Informal Agreement to Increase Minimum
Commissions.
The large New York City banks have agreed informally
to raise their commission fees for accepting bankers' bills,
it was stated in informed quarters on July 1, according to
the New York "Journal of Commerce" of July 2, which
likewise said:
The agreement applies to the minimum commissions to be levied against
customers. Practically all of the large accepting banks will base their
charges upon the new schedule, it was stated.
The new commission fee is 13.i % on an annual basis,the actual commission
paid being reduced according to the maturity of the credit. Bills due in
30 days are 1-8th of 1% and for each month added to the term of the credit
there is a rise of 1-8th of 1% until theoretically on a 12-months' bill 1 %
Is reached.
On the old basis 30-day maturities were charged 1-8th of 1%: 60-day
bills were 3-16ths of 1% and 90s were
of 1%. Commissions for high
maturities were based upon a general rate of 1% annually.
While the banks raised their commission charges for accepting new bills
dealers who failed to reduce their bid and asked rates on bills since the cut
in the Reserve Bank rate last week, yesterday cut rates 1-8th of 1%. The
entire market Is now buying and selling on a 7-8.ths of 1% bid. 3-7ths of 1%
asked.
With extremely low market rates for bills the banks raised the commission charge principally in order to increase their earnings. The low
market rates, it was pointed out, make the new commission schedule
possible without running the danger of leading borrowers on acceptances
to finance their operations by other methods.
Boosts Gross Earnings.
On a rough estimate the increase in commission charges would raise
banks' gross earnings on accepting fees from about $7,000.000 annually
to over $10.000,000. This is based upon an acceptance volume of $700.000.000. With most of the bills due In three months and with the three-month
fee calculated on the annual basis, the earnings as estimated represent 1%
and 13,5% of the total, respectively.
tree. le4
E. I. du Pont de Nemours & Co. to Avail of Trade
Acceptances—Believes Use Will Expand Business.
The intention of E. I. du Pont de Nemours & Co. to make
use of trade acceptances was made known in an announcement on July 7 by President Lammot du Pont, which said:
Will Use Bills.
Si. I. du Pont de Nemours & Co. and its subsidiaries and affiliated companies will support the efforts of the banking and industrial committee by
adopting the practice of taking short-term acceptances from responsible
customers in payment for goods sold to them and of issuing trade acceptances promptly in payment for goods purchased.
IskWe are supporting the trade acceptance plan in the belief that It will
assist legitimate business to obtain needed credit from the banks; it will
Increase bank deposits; it will serve as a means of expanding the Federal
Reserve Banks' outstanding credit, all of which should tend to stimulate
business, stop further deflation and accelerate the return of normal conditions.
The trade acceptances received by our companies in payment for products
sold will be discounted at banks or sold to banks through note brokers.
We shall urge the banks receiving trade acceptances to rediscount them
with the Federal Reserve.
Your co-operation and support of this procedure should materially expedite the return of many unemployed to the ranks of industry and aid in
reviving business to a more normal volume.
iv The letter also said:
The decline in prices will be stopped and an improvement in prices and
business will result if properly safeguarded credit can be extended to
business.
July 9 1932
The purchase of government bonds by the Federal Reserve banks is
making credit available in the banks of the nation. The banking institutions
would pass on this credit to industry and commerce, if in doing so they
could be assured of the maintenance of the liquidity they now enjoy. 10,4411
There is a scarcity of discountable commercial paper in the market in
which the banks may employ their funds.
The general use of trade acceptances would supply the banking institutions with desirable commercial paper for investment of their present
surplus funds and make available to industry and commerce needed credit.
To this end those adopting this plan agree to make a practice of taking
short-term trade acceptances from their responsible customers in payment
for goods sold and of giving trade acceptances in payment for goods bought.
Such trade acceptances as they receive they propose to discount at banks
or to sell to banks through note brokers. They urge banks receiving trade
acceptances to make a practice of rediscounting them with the Federal
Reserve banks. By this means the banks are again placed in funds to make
further extension of credit to industry.
According to the New York "Times" of July 8, other
large industrial concerns that have adopted the plan, the •
announcement said, were the American Rolling Mill Co.,
the Campbell Soup Co., the General Electric Co., the General Motors Corp., the National Steel Corp., the Standard
Oil Co. of New Jersey, the United States Rubber Co. and
the Westinghouse Electric & Mfg. Co.
Increased Use of Trade Acceptances Proposed by
Banking and Industrial Committee in Philadelphia Federal Reserve District.
Trade acceptances will be used on a larger scale to stimulate trade and increase employment in the Philadelphia
area under a plan recommended on June 30 by a sub-committee of the Banking and Industrial Committee of the
Third (Philadelphia) Federal Reserve District, and announced by Herbert J. Tily, President of Strawbridge &
Clothier and a member of the committe". acting for George
H. Houston, President of the Baldwin Locomotive Works,
Chairman of the committee. Mr. Tily's statement on the
sub-committee's action was given as follows in the Philadelphia "Public Ledger" of July 1:
It is the unanimous opinion of the Banking and Industrial
Committee
that a more general use of trade acceptances as a substitute for open
book
accounts will stimulate the granting of bank credit; that it will result
in
increasing volume of sales, in stimulating commodity prices and in Increased
employment. The committee feels that the matter is ofsufficient
importance
to justify the development of a program along National lines for the
introduction and general use of trade acceptances. Furthermore, it is
their
view that such a program should be brought to the attention and that
it
should receive the approval of the Federal Reserve Board, the Chamber
of
Commerce of the United States, the Chambers of Commerce of
important
trade bodies located throughout the United States, Including credit
organizations. The subcommittee to which this subject was referred
for
study was instructed to aid in the development of such a program,
and
to this end was requested to co-operate with the Banking and
Industrial
Committee in each of the 12 Federal Reserve Districts.
While the use of the trade acceptance in this country is not a new development, its volume was never important because of the relative
ease in
obtaining credit upon single name promissory notes. The proper use
of the
trade acceptance will result in liquidation of book accounts or
receivables.
With the co-operation of banks, which have always viewed with
favor the
discounting of genuine trade acceptances, book accounts or
receivables
can immediately be converted into cash. In this way the credit strain
will
be eased. The easing of the credit strain will result in increasing
volume of
sales, resulting increased employment. It is quite likely that the
general
use of the trade acceptance may prove to be a substantial factor in
bringing
about normal business conditions in this country.
The Banking and Industrial Committee was very much encouraged
to
learn that trade acceptances are being used, although in a
somewhat
limited way, by many large and Important corporations. These
groups
have signified their approval of the program for broadening the
field of its
use and have indicated their willingness to give and take trade
acceptances
covering purchases and sales of merchandise made by their companies.
The sub-committee is headed by Howard A. Loeb, Chairman of the Tradesmen's National Bank & Trust Co., and
with the following as members Irenee du Pont, ViceChairman of E. I. du Pont de Nemours & Co.; Arthur C.
Dorrance, President of the Campbell Soup Co.; Edward
Hopkinson Jr., of Drexel & Co.; Leasing J. Rosenwald,
President of Sears, Roebuck & Co., and A. Homer Smith,
President of the drug firm of Sharp & Dohme, Inc.
The above action follows that taken by the Banking and
Industrial Committee in the New York Federal Reserve
District, to which reference was made in these columns
July 2, page 62. The formation of the Philadelphia committee was noted in our issue of June 11, page 4262.
Report to Senate by Eugene Meyer, Governor of Federal
Reserve Board Regarding Government Securities
Held by Federal Reserve Banks and Purchases and
Sales Since 1919—Holdings April 30 1932, $1,227,814,000.
According to a report submitted to the Senate on Juno 4
by Eugene Meyer, Governor of the Federal Reserve Board,
government securities held by Federal Reserve banks on
April 30 1932 aggregated 31,227,814,000—the highest in the
period covered by the report. The report, made in response
to a resolution passed by the Senate on May 10 (and given
in our issue of May 14, page 3570) shows holdings of government securities by months from January 1919 to April 1932,
and the purchases and sales of such securities during the
same period. The total purchases of securities during
April 1932 (the latest month for which statistics are available), were $407,784,000 and total sales for the month were
$51,602,000. On Jan. 31 1919, the earliest date in the report,
the amount of government securities held by the Reserve
banks was $167,784,000. The report was submitted to the
Senate by Governor Meyer as follows:
GOVERNMENT SECURITIES HELD BY THE FEDERAL RESERVE
BANKS.
Letter From the
GOVERNOR OF THE FEDERAL RESERVE BOARD
Transmitting
In response to Senate Resolution No. 211, certain information relative to the
amount of United States Government securities held by the Federal Reserve
banks, together with the amount of the purchases and sales from January 1919
to April 1932.
Federal Reserve Board.
Washington, June 4 1932.
The President of the Senate,
Washington, D. C.
MY Dear Mr. President. In Senate Resolution No. 211, adopted May 9
(calendar day May 10). 1932, the Federal Reserve Board was requested
"to report to the Senate as soon as practicable the amount of Government
securities purchased, sold, or held by the Federal Reserve authorities for
each calendar month beginning with the month of January 1919, and ending
with the month of April 1932."
In accordance with the request contained in this resolution a table has
been compiled, and is respectfully submitted herewith, which shows the
amount of United States Government securitie held by the Federal Reserve
banks. together with the amount of the purchases and the amount of the
sales (including securities retired by payment at maturity) ofsuch securities,
each month from January 1919. to April 1932. This table does not include
special short term certificates of indebtedness issued to the Federal Reserve
banks by the Treasury from time time, as it is assumed that such tramactions were not intended to be covered by the resolution.
Respectfully,
Eugene Meyer, Governor.
United States Government Securities Held by the Federal Reserve Banks and
Total Purchases and So es (Including Maturities) of Such Securities, by
Months,from January 1919 to April 1932.
Holdings on
Last Day of
Month.
1919—
January
February
March
April
May
June
July
August
September
October
November
December
1920—
January
February
March
April
May
June
July
August
September
October
November
December
1921—
January
February
March
April
May
June
July
August
September
October
November
December
1922—
January
February
March
April
May
June
July
August
September
October
November
December
1932—
January
February
March
April
May
June
July
August
September
October
November
December
1924—
January
February
March
April
May
June
July
August
September
October
November
December
213
Financial Chronicle
Volume 135
Total Sales
Total Pur(Including
chases During Maturities)
Month.
During Month.
$167,784,000
182,782.000
202,909,000
220,515,000
229.516,000
232,320.000
243,907,000
270.706,000
283,198,000
301,252,000
315,316,000
300,104,000
$12,461,000
39.473,000
88,860,000
83.843,000
86,623,000
68,086,000
63,905,000
80,874,000
34,088,000
72,453,000
56,887,000
67.366,000
383.240.000
24,475,000
68,733,000
66,237.000
77,622.000
65,282.000
52,318,000
54,075,000
21,596,000
54,399.000
42,823,000
82,578,000
304,108,000
294,172,000
290,115,000
293,514,000
306,297,000
316,671.000
301,368,000
305,631,000
300,427,000
296,314,000
305,875,000
287,029,000
43.594,000
25,301,000
14,408,000
15.144,000
42,723,000
85,445,000
51.519,000
63.340,000
164,308.000
47,988,000
45,288,000
127,254,000
39,590,000
35.237,000
18,465,000
11,745,000
29,940,000
75,071,000
66,822,000
59,077,000
169,510,000
52,101,000
35,727,000
146,100,000
287,150,000
282,807,000
276,932,000
267,095,000
266,481.000
259,184,000
244,365,000
230,233,000
227,830,000
192.521.000
204,544,000
233.528,000
27,103,000
18,880,000
46,487,000
40,485,000
152,393,000
63,884,000
45.257,000
42,797,000
76,271,000
43.123,000
131,859.000
165,455,000
26,982,000
23,223,000
52,362,000
50,322,000
153,007,000
71.181.000
60,076,000
56,929.000
78,674,000
78,432,000
119,836,000
136,471,000
293,085,000
407,889,000
455,5001,000
587,080,000
603,419,000
555,465,000
536,669,000
507,131.000
482,676,000
362,639,000
304,461,000
419,155,000
197,260,000
302.965,000
226,677,000
243,189,000
117,812,000
290,622,000
110,030.000
158,536,000
174,176,000
239,308,000
66.535.000
230.192,000
137,703,000
188,161.000
179,060.000
111,615,000
101,473.000
338,576,000
128,826,000
188,074.000
198,631.000
359,345,000
124,713,000
115,498,000
353,735,000
363.074,000
250,360.000
185,305,000
191,964,009
101,503.000
98,083.000
101,995,000
96,285,000
91.837,000
104,169,000
133,566,000
175,086,000
117,185.900
87,372,000
57,573,000
114.904,000
149,012.000
88,716,000
84,069,000
102.371,000
86,227,000
107,481,009
156,407,000
240.506.000
107,346.00(
200.086,00(
122,628,00(
108.245,001
239,473.001
92,136,004
80.157.004
108,081,001
90,675.001
95.149,001
127,010,001
126,371,000
165,463,000
262,867.000
301,660,000
352,857,000
431,085,000
522,897,000
542,211,000
576.108,000
584,205,000
583,738,000
540.160.000
85,033,000
59.840,000
132,601,000
80.905,000
72.467,000
192,940,000
108,347,000
57.237.000
99,035,000
63.262.000
62,740,000
222.111.000
92,228,001
20.748.001
35,197,00
42,112.00
21,270,00
114,712,00
16,535,00
37,923,00
65,138,001
55.165,001
63,207.001
265.689.001
United States Government Securities Held by the Federal Reserve Banks and
Total Purchases and Sales (Including Maturities) of Such Securities, by
Months,from January 1919 to April 1932.—Concluded.
Holdings on
Last Day of
Month.
1925—
January
February
March
April
May
June
July
August
September
October
November
December
1926—
January
February
March
Oay
April
June
July
August
September
October
November
December
1927—
January
February
March
April
May
June
July
August
September
October
November
December
1928—
January
February
March
April
May
June
July
August
September
October
November
December
1929—
January
February
March
April
May
June
July
August
September
October
November
December
1930—
January
February
March
April
May
June_ _,
July
August
September
October
November
December
•
Total Sales
(Including
Total PurMaturities)
chases During
During Month.
Month.
390,953,000
379,226.000
360,144,000
348,318.000
348,115,000
353,273,000
328,612,000
330,246.000
342,906,000
326,892,000
341,818,000
374,568,000
59,094,000
61.978,000
75,867,000
45,389,000
70.274,000
102,468,000
80.202,000
40,471,000
112,244,000
76,883,000
87.005.000
236.707,000
208,301,000
73,705,000
94,949,000
57.215,000
70,477,000
97,310,000
104,863.000
38,837,000
99,584,000
92,897,000
72.079,000
203,957,000
351.402.000
327.017,000
329,837,000
393.104000
396,488,000
385,279,000
371,816,000
321,943,000
304,276,000
300,966,000
306,368,000
314.820,000
28,266.000
35,358,000
196,359,000
85.889,000
45,174,000
132,125,000
64,850.000
25,051,000
123,190,000
41,497,000
92,682,000
205,604.000
51,432,000
59,743,000
193,539,000
22,622,000
41,790,000
143,334,000
78,313,000
74,924,000
140,857.000
44,807,000
87,280,000
197.152,000
304,064,000
316,045.000
347,629,000
326,753,000
343,437,000
370,080,000
392,320,000
472,814,000
506,130,000
522,337,000
545,835,000
616,516,000
59,701,000
34,567,000
282,375,000
142.185.000
184,805,000
322.656,000
98,679,000
214,409,000
414.195.000
192,200,000
159,141.000
352,721,000
70.457,000
22.586,000
250,791.000
163,061,000
168.121,000
296,013.000
76.439.000
133,915,000
380,879.000
175.993,000
135,643,000
282,040.000
437,246,000
407,602,000
394,888,000
296,021,000
219,887,000
235,143,000
214,585,000
219.193,000
242,644,000
227,099.000
237,025,000
228,064,000
338,621,000
105,010,000
300,240,000
125,653,000
91,740,000
124,367.000
71,204,000
71,725,000
152,329.000
208,834,000
219.106,000
182,961,000
517,891.000
134.654,000
312,954,000
224.520,000
167,874.000
109,111.000
91,762,000
67,117,000
128,878.00(
224,379,000
209,180,000
191,922,000
201,727,000
168,734,000
171,901.000
163,371,000
142.994.000
215.702,000
147,283,000
149,871,000
162,238,000
321,082,000
326,065.000
510,587,000
138,943,000
45.302,000
66,694,000
114,297,000
109,579.000
217,152,000
133,130,000
117.087,000
174,527,000
232,627,000
112,576,000
342,205,000
165,280.000
78,295,000
63,527,001
122.827,001
129.956,001
144,444.004
201,549.001
114,499.001
162.160.001
73,783,004
107,593,001
157,683,001
478,581,000
479.934,000
535,229,000
529.509,000
528,267.000
590,909,000
576,501.000
601,723,000
596.858.000
601.559,000
599,286,000
729,467.000
70,021,000
121,397,000
293,607,000
145.171,000
222,282,000
308,219,000
169,166,000
145,415,000
141,253,000
63,585,000
80,755,000
381,056,000
102.027,001
120,044,001
238,312.001
150.891.001
223.524,001
245,577,001
183.574.00
120,193,00
146.118.00
58.884,00
83,028.00
250,875,00
205,057.00
85,510,000
609,920,000
Jay
81.162,00
70,705,000
599.463,000
February
264,913.00
263,981,000
598,531,000
March
126,467.00
126,250.000
598,314,000
April
142.857,00
142.879,000
598,336,000
May
179,892,00
249,491.000
667,935,000
June
112,732.00
122,650.000
677,853,000
July
194,832,00
244,852,000
727,873,000
August
217.723.00
232,195.000
742.345,000
September
89,119,00
73,949,000
727.175.000
October
154.487,00
144,343.000
717,031,000
November
213.504,00
313,433,000
December
816,960,000
1932—
121.058,00
50,523.000
746,425,000
January
120,074,00
113,681,000
740.032.000
February
159,255,00
290,855.000
871.632,000
March
51,602.00
407.784,000
1.227.814.000
April
of
certificates
special
one-day
Note.—The above figures do not include
indebtedness issued to the Federal Reserve banks by the United States
Treasury from time to time.
United States Chamber of Commerce Plans Poll on
Bank Legislation--Will Sound Members for Guide
to Action at the Next Congress—Report of Study
by 21 Men from the 12 Reserve Districts Condemns
"Price Fixing" Measures—Glass Bill Attacked—
Curb on Reserve Board Asked.
Having in mind the numerous legislative proposals to be
considered at the next session of Congress that affect the
banking system of the country, the United States Chamber
of Commerce announced on June 25 that it would take a
referendum among its members to determine what, in their
opinion, should be the character of remedial measures
adopted. A dispatch from Washington, June 25, to the
New York "Times," reporting this, went on to say:
Henry I. Harriman, President of the Chamber, said the referendum
would be based primarily upon a report of its banking committee, which
makes definite suggestions for the solution of current banking problems.
The report, made public simultaneously, was sent to members of Congress
and will be widely distributed among bankers and business men. It dissents sharply from some provisions of various bills now pending in both
houses, particularly those introduced by Senator Glass and Representatives
Steagall and Goldsborough.
214
Financial Chronicle
As to the latter, providing that Federal Reserve banks and the Treasury
undertake to restore the level of wholesale commodity prices to their
1921-1929 average, the report declared:
"The a priori decision that prices can and must be restored by currency
and credit measures to the 1921-1929 average or to any other predetermined
point is most disturbing. The volume powers of the Federal Reserve
System with respect to currency and credit cannot be used with such precision as to put prices at a given point.
Price Plans Are Denounced.
"The System does not and cannot control price levels, nor can the
entire banking system and the Treasury combined wisely hope to do so.
The passage of the proposed fiat would inevitably produce grave distortion
of the operations of the Reserve System. Attempts by Congress to repeal
or ignore the economic law of supply and demand are doomed to failure.
"The expectation that a mere edict from Congress to the Treasury and
the Reserve System will enable them, by means of a managed system of
currency and credit, to put and keep commodity prices where they will,
is not possible of realization."
The reports, which dealt in similar terms with other pending legislative proposals inconsistent with the views of the committee, was prepared
by a group of 24, consisting of one banker and one merchant or industrialist
from each of the Federal Reserve districts. The Chairman of the Committee was Harry A. Wheeler of Chicago.
It condemned the suggestion that legislation be enacted to guarantee
deposits of member banks of the Federal Reserve System and, under
certain restrictions, of non-member banks, as provided in the Steagall Bill.
The report also took issue with the provision of the Glass Bill that after
three years no member bank shall be permitted to have an affiliated
organization engaged "principally in the issue, flotations, underwriting,
public sale or distribution at wholesale or retail or through syndicate participation of stocks, bonds, debentures, notes or other securities."
Security Affiliates Upheld.
"In defense of the maintenance of security affiliates, without any time
limitation, such as three or five years," said the report, "it is well to
recall that such security companies have been important factors in providing government, commerce and industry with necessary financing.
"Banking institutions through such companies or through their own
bond departments, which the measure also would drastically destrict, if
not actually bar, are a major factor in providing the long-term credit
requirements of domestic business, exceeding the performance of private
Investment banking houses.
"Security affiliates heretofore have not been required by law to be
subject to the examination or regulation of banking authorities of either
Federal or State governments. It would be as reasonable to abolish banks
because of injudicious practices, because some abuses have developed in
their operations."
As an alternative remedy, the Committee recommended the enactment
of legislation requiring security affiliates to be subject "to the examination
and regulation of Federal banking authorities, such as the Federal Reserve
Board," that "security affiliates of member banks should be denied the
right to offer in their own names shares of stock of any affiliated bank
or of the security company itself," and that "member banks should be
permitted to make loans or other credit advances to their security affiliates
only under careful regulation and with precise limitations upon the amounts
of each loans."
Glass Bill Called Contradictory.
The Committee further recorded its disapproval of the proposal in the
Glass Bill that a member bank of the Federal Reserve System not be permitted to be affiliated with a non-member bank.
"The very measure which advances this idea," the Committee declared,
"would permit a group banking organization, through a holding company,
to include banks which are not members of the Reserve System as well as
banks which are."
The Committee favored the permanent establishment of a special Federal
agency similar to the Federal Liquidating Corporation contemplated in the
Glass Bill to assist in the liquidation of suspended banks of the Federal
Reserve System.
It pointed out that in the present situation upward of an estimated
$2,000,000,000 was involved in the liabilities of suspended banks, a condition depriving depositors of funds and impairing the functioning of the
banking machinery, besides being detrimental to communities affected and
business generally.
Although the principle is in harmony with its views, the Committee also
dissented from the method proposed for carrying out a provision of the
Glass Bill to prevent further extension of Reserve credit to member banks
which are making undue use of their lending powers, for the speculative
carrying of or trading in securities, real estate or commodities, or for any
other purpose inconsistent with the maintenance of sound credit conditions."
The Committee opposed the vesting of this power in the Federal Reserve
Board.
Control by Banks Favored.
"Some protection against such abuses would be afforded if the exercise
of any additional power in this direction should rest principally in the
Reserve banks rather than in the Federal Reserve Board, which might,
however, be permitted to act as an appellate body," said the report.
"In this connection, the Committee supports the principle, advocated by
the chamber of regional autonomy of the Reserve banks. They make the
actual contacts with the member banks, involving such knowledge of their
operations as cannot be possessed by the Board in Washington.
"Greater centralization of power in the Federal Reserve Board in the
control of relationships between the district and member banks presents
obvious dangers of weakening district autonomy and of subjecting member
banks to unnecessary interference by a small, far-removed, politically
disappointed group of men who are not possessed of first-hand knowledge
of district situations and the conditions and operations of the member
banks."
Felix M. McWhirter, President of the People's National Bank of Indianapolis, wrote a minority report in which he contended that the majority
of the Coawnittee in some of its recommendations had exceeded its charter.
He dissented strenuously from the recommendations of the majority that
"a National bank should be permitted, subject to carefully devised administrative regulations but unlimited by restrictions of State laws, to establish State-wide branches ; Federal legislation should not deny similar powers
to State member banks."
He said "this would be as flagrant an invasion of State rights in the
financial field by Federal political power as has ever been attempted."
It would, he said, "force unrestricted branch banking on the States regardless of local sentiment."
THE' COMMITTEE'S RECOMMENDATIONS.
Denial of Discount Rates by Reserve Banks.
The 12 regional banks should be given explicit authority to deny the
right of discount to any member bank upon a finding that its lending
July 9 1932
operations are likely to endanger its solvency or contribute to unsound
credit conditions, provided the member bank has been given suitable
warning and sufficient opportunity to correct objectionable practices.
Any Member bank thus denied access to discount accommodation should
be permitted an appeal to the Federal Reserve Board.
Security Affiliates.
Member banks shall be permitted to maintain as affiliated institutions
companies organized to transact the business of originating and buying
and selling conservative investment securities. Provisions of law should
be adopted that will require that such security affiliates shall be subject
to the examination and regulation of Federal banking authorities, such as
the Federal Reserve Board.
Security affiliates of member banks should be denied the right to offer
in their own names shares of stock of any affiliated bank or of the security
company itself.
Member banks shall be permitted to make loans or other credit advances
to their security affiliates only under careful regulation and with precise
limitations upon the amounts of such loans.
Security Market Loans for the Account of Others Than Banks.
It is underisable to provide by statute for the prohibition of security
loans in the financial centers for the account of others than banks.
Open Market Operations.
It is not desirable to provide definitive legislation regarding the agencies
which in the Reserve System should have responsibility for the conduct
of the System's open market operations.
The System should be in a position to make such modification in its
machinery as developments may necessitate, subject to the understanding
that any such machinery should give full opportunity for a full and independent statement of its position by the Federal Reserve Board as well as
by any individual Reserve bank.
Membership Conditions of the Federal Reserve Board.
Treasury representation on the Federal Reserve Board should be eliminated. At least two members of the Board should be possessed of proved
banking experience. The Governor should be Chairman of the Board. It
should be housed in a building of its own. Salaries of Board members
should compare more favorably with salaries paid principal administrative
officers of Reserve banks.
Removal of Bank Officers and Directors.
Any grant of power to supervisory officials to remove for cause an
officer or director of a member bank should be carefully restricted in
the law by definite provision of safeguards against its abuse. Specific
charges should be advised to the accused individual with reasonable opportunity to engage counsel and prepare a defense; a hearing should be
granted before the Board of Directors of the district Reserve bank, and an
appeal should be permitted to the Federal Reserve Board.
No vague or uncertain statute or regulation with reference to removal
from office of bank officers or directors, that would permit of arbitrary
or unreasonable charges or unmerited injury to such officer or director,
should be adopted.
Liquidation of Suspended Member Banks.
There should be established a special Federal agency—similar to the
Federal Liquidating Corporation contemplated in the Glass Bill, as reported
to the Senate—to assist in the speedy liquidation of suspended member
banks of the Federal Reserve System.
A contribution by the Federal Government to the capital funds of such
corporation, equivalent to the aggregate revenuees from the franchise tax
upon the Federal Reserve banks, is reasonable.
Subscriptions from the surplus of the Reserve banks as well as of member banks combined with the subscription of the Federal Government
should be sufficient to enable the special agency to liquidate the assets of
suspended member banks of the Reserve System as speedily. as prudent
management will permit.
The capital subscription of member banks should be given a preferred
position with respect to dividends from the earnings of the corporation,
as well as preference in the event of the liquidation of the corporation
itself.
Required Capital of Member Banks.
Legislation should be enacted providing that no National bank may be
organized with less capital than $100,000, except that a National bank,
subject to the approval of the Comptroller of the Currency, may be organized with a capital of not 'less than $50,000 in any place with a population
not exceeding 6,000 inhabitants; and that, to become a member of the
Federal Reserve System, a State bank should be required to possess capital
at least equal to that required of a National bank organized in the
same place.
Branch Banking.
A National bank should be permitted, subject to carefully devised administrative restrictions but unlimited by restrictions of State law, to establish
State-wide branches; Federal legislation should not deny similar powers
to State member banks.
In Federal legislation statutory permission to National and State member
banks to establish branches should be conditioned upon approval of administrative authorities; subject, however, to definite statutory requirements
that the capital of the branch system shall not be less than the aggregate
of the capital that would be required if each banking office in the branch
system, including the parent bank, were an independent National bank.
Administrative authorities should be able to require a showing in case
of the application for a branch that the general condition of the branch
system, as well as the conditions under which the branch would operate,
indicate the probability of its successful maintenance.
The power to establish a branch in any given location within the branch
area should be granted only after administrative finding that another bank,
with or without branches, is not adequately servicing the banking requirements of the district of the proposed branch.
In order to avoid complications that would result from rapid or competitive extension of branch banking, there should be legislative grant of
discretion to the admintstrative authorities to require a suitable period of
notice of intention to establish a de novo branch or to acquire branches
by merger, as well as of dishretion to withhold final approval for a reasonable period of time.
To provide uniformity in the development of branch banking within the
Federal Reserve System, authority should be vested with the Comptroller
of the Currency to prescribe regulations with respect to the granting of
branch banking privileges for National banks and in the Federal Reserve
banks to prescribe regulations with respect to State member banks, subject
in each instance, however, to the review and concurrence of the Federal
Reserve Board.
Group Banking.
Such provisions of law and supervision should be established as will
encourage group systems to include as far as may be practicable only
Guarantee of Bank Deposits.
There should be no legislation providing for the guarantee of bank
deposits.
Restoring Price Levels.
The Committee reiterates the present commitments of the chamber:
The precise adaptation of the volume of reserve credit in all its forms,
Including note issues, to the requirements of trade should be regarded as a
problem of administrative instead of legislative control.
No limiting policy such as one of maintenance of price stability should
be imposed by legislation as a definite duty upon the Reserve Board and
the Reserve banks.
Deflation of "Ideas" Called for-Moody's Find While
Deflation of Credit and Other Flexible Items Have
Been Partially Corrected Several Rigid Parts of
Economic Structure are in Need of AdjustmentInterest Burden 50% Above 1992.
In a survey of the business situation issued Juno 27
Moody's Investors Service indicates that, although much of
the overexpansion in credit which characterized the period
from 1924 to 1929 has been corrected, nevertheless several
rigid parts of our economic structure still are badly in need
of adjustment. The survey calls for a "deflation of ideas,"
particularly in regard to domestic fixed indebtedness, war
debts and certain wage rates, and cites the Lausanne conference as providing the supreme test of such a revision of
ideas.
Moody's goes on to point out the radical contraction in
bank loans and industrial production since 1929, as contrasted with burden of debt and governmental expenses,
which have increased considerably. It states that in the
case of bank credit, total bank loans have fallen 35.4%
from 1929. Probably the most striking item in this group
it says is the drop in "all other" loans, which are supposed
to be, in most cases, commercial loans arising in the course
of trade and thus self-liquidating. Here the drop from 1929
has been 40.9%. Loans on security collateral fell 45.3%,
brokers loans on the N. Y. Stock Exchange 96.5%, while
real estate loans declined only 13.6% from 1929. Total
deposits, both demand and time, fell 22.4%.
Likewise in the case of industrial activity the deflation has
been severe. Industrial output as a whole has fallen 49.2%,
wholesale prices 33.3%, national income 33.1% and total
manufacturing payrolls 56.5%. Wage scales have dropped
215
Financial Chronicle
National and State member banks, make all of their eligible components
members of the Federal Reserve System, and facilitate the development
of branch banking within group systems to the limit of legislative grants
of power to possess branches.
Legislation should be provided which, after its adoption, will discourage
group banking systems from acquiring additional component banks of
snore than one Federal Reserve district without special approval of Reserve
authorities.
Legislation should be provided which will require that the books and
records of a holding company owning or controlling a National bank and/or
a State member bank, whether acquired prior or subsequent to such legislation, be made subject to examination by the Comptroller of the Currency
and/or the Federal Reserve authorities. Where a group contains both
member and non-member banks, the parent corporation and all its components should be subject to examination by Federal authorities.
In so far as special regulations may be needed for the purpose of expediting examinations of group systems, Federal authorities should be empowered to require adequate reports of condition of the group banking
corporation and each of its components.
In the case of group banking corporations holding shares of stock of
one or more member banks of the Federal Reserve System, there should be
statutory requirements for the establishment and maintenance of suitable
reserves, invested in readily marketable negotiable assets other than bank
stocks, in order to assist the group system in protecting the solvency of its
components. In general, the amount of such reserves should be not less
than 25% of the banking capital employed, except that in cases where
double liability attaches directly to the stock of the group banking corporation somewhat smaller reserves might be designated. Such reserves should
not be available as security for any form of pledge, except for the purposes
for which the reserves are required.
Legislation should be passed requiring that after a reasonable time no
component of a group banking system should lend upon the security of the
stock of the holding company of the group system.
A component bank of a group system should be prevented by law from
lending to another component of the same group an amount exceeding,
say, 10% of the lending bank's capital and surplus. Its loans to all components of a group system should be limited by law to a reasonable proportion, say 20%, of its capital and surplus. All loans of one component
bank to another component should be required to be fully and adequately
secured by readily marketable securities.
The capital issues of a holding company of a group banking system should
be confined to one class of stock; no debentures or other bond issues should
be permitted.
There should be provision of Federal law requiring that any undertaking
to merge or to effect other amalgamation of the stock interests of two or
more group banking systems, containing National or State member banks
as components, be subjected to the consent of the Federal supervisory
authorities.
There should be provision of Federal law that any group banking system,
containing National bank or State member bank components, be prohibited
from owning or controlling the stock of a corporation not engaged in the
usual business of banking unless it has the permission of Federal authorities
vested with power to supervise banking.
Upon a finding by the Federal Reserve Board that the components of
one or more group systems control the election of directors of a Federal
Reserve bank to the detriment of the interests of other member banks,
the Board should have power to limit or suspend the voting privileges of
such group components.
17%, but this has been more than offset gy the decline of
22.9% in the cost of living. The survey continues:
On the other hand there has been, at the same time, a further increase of
5.7% in the total fixed debt, and of 51% in the real burden of all fixed
charges. U. S. Government expenses, too, rose by 26%.
The plight of those debtors who are saddled with a heavy fixed debt has
led to a strong pressure for some sort ofinflation. It is being forgotten that
Inflation carries doubtful advantages and sure disadvantages. It would
disarrange our entire economic structure, expropriate millions of small
Investors, depositors and wage earners, and upset confidence in our stability
for a good while to come.
Probably a less costly alternative way out will prove to be a forced (unless
It is voluntary) reorganization of the weaker debtors and adjustment of
claims to reality. The sooner a realistic view on these matters obtains,
that is, the sooner the rigid lines of thought are broken, the sooner the
necessary remainder of deflation will be completed.
The following statistics are supplied by Moody's:
CREDIT DEFLATION SINCE 1929.
(Amounts in Millions)
'
1924
Low.
1929
High.
1932
Last.
$27,275
$42,200
$31,428
6,275
11,480
5,704
*9,000
10,420
3,732
12,000
20,300
21,992
300
8,549
*2,650
6.335
16,860
*7,000
/9,092
16,830
14,229
41,425
53,350
42,954
67.0
92A
243.6
86.0
137.0
91.7
19,839
25,330
29,348
33.9
346.7
62.5
INDUSTRIAL AND PRICE DEFLATION SINCE 1929
Total bank loans (all U. S.)_ _-Loans on security collateral_ _ _
Real estate loans
Other loans
Brokers' loans (N.Y. S. E.)_ _ _.
Total known security loans
Total Investments
Total dem. and time deposits_ _ _
Velocity of deposit, N.Y. City
Velocity of deposits outside N. Y.
No. of banks in operation in U.S.
Stock prices
1924
Low.
Industrial production (index)___
Wholesale prices (index)
Cost of living (index)
National income (billions)
No. of people gainfully employed
(millions)
Total mfg. payrolls (index)
134
94.9
100.6
374.5
Woc.g1 rote. tindarl
298
43.5
85.0
1929
High.
126
96.5
101.0
585.2
47.0
112.0
229
1932
Last.
% Change
from 1929.
IIIIIII
Q
CWW.4ba. OiLll
0.—,...1t*MWWW wolf.
Volume 135
% Change
from 1929.
64
6.4.4
77.9
5557.0
-49.2
-33.3
-22.9
-33.1
37.8
48.7
-19.6
-56.5
--17.0
190
FIXED DEBT AND GOVERNMENTAL EXPENSES SINCE 1929.
(End of Year-In Billions)
1925.
1929.
$41.7
$28.5
Total corporate bonds
11.8
15.9
Municipal, State, &c. bonds_ _ - _
16.0
20.0
U. S. Government debt
7.6
4.7
Foreign bonds
*37.0
*25.0
Urban real estate mortgages
9.4
9.2
Farm mortgages
127.4
99.4
Total fixed debt (face value)
*7.9
*6.0
Annual Interest charges
In terms of commodity Prices
*8.6
06.0
(1925-100)
3.85
3.53
U.S. Govt.expenses (fiscal years)
1931-1932.
atlmate
for
* Approximate. a 1931. b
1931.
% Chance
from 1929.
$44.9
18.2
17.5
8.1
*37.0
*9.0
134.7
*8.1
a7.7
a14.5
a9.4
a6.6
0.0
-2.2
a5.7
a2.5
*13.0
54.86
a51.1
a26.2
Senator Borah Urges Congress to Continue in Session
Until Legislation is Enacted for Expansion of
Currency-Favors Goldsborough Bill or Substitute.
On June 29 it was indicated in Associated Press accounts
from Washington that a campaign was under way by Senator
Borah (Republican of Idaho) and others to obtain action
at the present session of Congress on the Goldsborough
Stabilization Bill or the Senate substitute. The Associated
Press added.
Senator Borah served notice in the Senate he would insist on action
before adjournment on the Glass substitute designed to give circulating
privileges to $1,000,000,000 of United States bonds.
Senator Blaine (Rep., Wis.), then sought to place the Goldsborough
bill on the Senate calendar in lieu of the Philipine independence bill.
Senator Robinson, the Democratic leader, urged consideration of the
Philippine bill and said he did not see how the session could adjourn
without acting on it.
Mr. Blaine contended, however, that Philippine independence would be
achieved as quickly if the bill were acted on next session.
In a statement issued on July 5, Senator Borah said, "if
ewe do not at once adopt measures for the expansion of
currency and a further extension of credit, we will come
back in the Autumn facing the proposition of devaluating
the dollar." His statement follows:
Congress should not adjourn until the problem of the expansion of the
currency has been considered. We have sufficient gold in this country to
justify upon a sound basis currency expansion to the extent of billions if
necessary. We have far more than one-third of all the gold in the world.
But, hidden, hoarded, cornered, refusing to help in this great national
crisis, the country is left paralyzed.
Crop season is on and it is literally true that in parts of the country
farmers cannot get credit currency with which to buy binding twine.
Whatever virtues the legislation already passed rimy possess, such as the
Reconstruction Finance Corporation, such legislation has not revived trade
or started business.
The forces of deflation are still advancing. Unemployment is increasing. Unless the fall of prices can be arrested, there can be no return
of trade, no lessening of unemployment-and the fall of prices cannot
be arrested except through the change of the monetary situation.
One of the greatest living authorities on economic and monetary problems said only a short time ago: "The Federal Reserve authorities control
not only the general level of prices in the United States but also the
price level of all other gold standard countries."
If we do not at once adopt measures for the expansion of currency and
a further extension of credit, we will come back in the Autumn facing
the proposition of devaluating the dollar. There is literally no possible
way to avoid disaster under the present program.
216
Financial Chronicle
Quoting Senator Borah as stating June 29 that efforts
should be made to pass the Goldsborough bill, the "United
States Daily" of June 30 noted:
The bill as passed by the House was amended by the Senate Banking and
Currency Ccenrnittee to provide that for five years Federal bonds "shall
be receivable by the Treasurer of the United States as security for the
issuance of circulating notes to national banking associations."
Action on Glass Bank Bill by Congress Seen
in December.
Enactment of Federal banking reform legislation upon the
disposition of the Philippine independence bill early in the
December session of Congress was forecast in Washington
as likely by reason of the stand taken by both major political
parties upon that subject. The Washington correspondent
of the New York "Journal of Commerce" stating this on
July 4, went on to say:
The charge is made by Senator Carter Glass (Dem., Va.), who has been
seeking adoption of the bill bearing his name, that "sound financial and
banking reform has been frustrated at every point by arrogant and selfish
interests controlling an obedient Government."
For some time the Glass bill remained the unfinished business of the
Senate, but was displaced, apparently inadvertently, through the presentation of an appropriation measure, after which opponents of the
branch banking feature objected to any further preference being accorded it.
Objection to Glass Hill.
There was objection to the Glass bill at the time on the ground that
expansion of debate was leading to the clogging of the Senate calendar
and to the possible shutting out of other favored legislation. Its fate
was similar to that of the Philippine independence bill, which was shelved
until December 8, when it became apparent that despite the fact that
there were in excess of 75 votes in the Senate for passage, the CopelandVandenberg filibuster prevented those votes from being expressed.
It has been contended that the Glass bill could have been put through
the Senate at this session had Senator Glass been willing to accept certain
proposals and agree upon compromises with its opponents. The chief
difficulties exist with respect to proposed State-wide branch banking for
national banks irrespective of whether such privilege can be accorded
under State laws to State banks. A second point of controversy arises
over the determination of Senator Glass to make compulsory separation of
securities affiliates from parent national banks. Third is the opposition
of the banks themselves to the requirement that they contribute to the
fund for establishment of the closed bank liquidating corporation.
Charges Against Glass.
It is charged against Senator Glass that he is endeavoring to force into
the national banking system all of the State institutions, thus creating a
unit banking system. This would be accomplished particularly through
operations of the liquidating corporation feature and branch banking.
Even Senator Norbeck, South Dakota, Chairman of the Senate Banking
and Currency Committee, is at odds with Glass on this proposition.
Senator Glass may win out with respect to the compulsory separation
of the securities affiliates after sufficient length of time is given for
carrying out such a measure. The record of some of the more important
corporations uncovered in the Wall Street investigation of the Banking
Committee is such as to create a great deal of sentiment against continuing the right of national banks to create corporations for the accomplishment of that which is denied under the banking laws to national banks.
On the third point, despite the Senator's objections, a compromise may
be reached.
Senator Glass is bitterly critical of the present Administration, charging
to it timidity and incapacity and the existence of political intrigue enthroned in Washington which causes it to vacillate.
Hits U. B. Paternalism.
He is at odds with it over the attitude of paternalism assumed by the
State Department with respect to foreign investments. He says, "Ours is
a Government so utterly devoid of a defined foreign policy as to mystify
courts abroad and humiliate American citizens everywhere."
He added that there have been three times as many bank failures each
year under the Hoover regime as in eight years under the late President
Wilson; that there have been business failures in proportion to the very
verge of stagnation. He declared that constructive help has been withheld and chimercial devices applied to problems which vitally affect the
peace and well being of the people.
Senator Glass forecasts that before the final session of the present Congress convenes in December, the need for reform legislation will have become so pronounced that regret will be expressed that passage of his bill
had been delayed.
Senate Passes Bill Reducing Interest Rate on Loans to
World War Veterans,
The Senate on June 30 passed and sent to the House a
bill reducing from 4M to 3% the rate of interest on loans
to veterans on World War adjusted service certificates.
There was no record vote. Associated Press accounts from
Washington, June 30 said:
The bill also provides that loans may be made immediately after issuance
of the certificate instead of waiting two years as now provided.
Senator Norris sponsored the interest reduction and Senator Copeland
the other feature. They agreed to combine the two measures, which were
passed as one.
Senator Smoot, who was against the interest reduction, read a letter
from the veterans' administrator, Frank T. Hines, opposing the bill and
saying it would cost the government $39.623.833.
Mr. Hines reported the measure "would not be in accord with the financial program of the President."
According to the"United States Daily" of July 1 General
Hines in his communication to the Senate Finance Committee pointed out that:
This bill would supersede portions of section 502 (c) and on (d) of the
World War Adjusted Compensation Act as amended, by providing for the
decrease of the interest rate charged a veteran to redeem a loan paid by the
Administration. from 6% compounded annually to 3% compounded
annually. The provisions of this proposed bill would apply to all certificates
July 9 1932
redeemed by the Administration from banks before as well as after the
passage of this proposed measure and the interest rate on such certi;icates
would be reduced from 6% to 3% from the date this proposed measure
goes into effect.
Section 2 of this bill would supersede that portion of section 502 (1) of
the Act, as amended, which provides that an interest rate of not more than
43,5% compounded annually may be charged on direct loans made on and
after Feb. 27 1931. by decreasing the interest rate to not more than 3%
compounded annually (1) on all loans made after the enactment of this bill
into a law, and (2) on all Administration loans made before the passage of
this measure, such reduced rates to take effect from the passage of this
measure. It would not apply to outstanding loans made by banks prior to
the passage of this Act.
In view of these facts (1) that the effect on Government financing of the
granting of loans on adjusted-service certificates in increased amounts
has been and is a decidedly adverse one, and (2) that the present rate of
interest being charged is considered most reasonable and (3) a change in the
interest rate to 3% annum compounded annually would result in reduced
earnings to the United States in the amount of $39si,623,833 (the preceding
figures are based upon approximate amount ofloans outstanding at March 31
1932, of $1,350.000,000) I feel constrained to recommend against favorable
consideration of this proposed measure.
Although this bill has not been presented by this Administration to the
Director of the Bureau of the Budget I wish to inform you that on a similar
measure he stated that in view of the cost involved it would not be in
accord with the financial program of the President."
The bill had been reported to the Senate by its Finance
Committee without recommendation.
Message from Gov. Goosevelt to Delegates at Democratic
Convention Urging that Party be Kept Free from
Dictation.
Governor Franklin D. Roosevelt sent a message to his
delegates at Chicago on July 1 urging them to "stick to your
guns" in the battle "to keep our party as a whole free from
dictation by a small group represonting the interests in the
nation which have no place in our party." The text of the
telegram, received by James A. Farley, Roosevelt campaign manager, was as follows, according to the Associated
Press:
I am in this fight to stay. Please thank all delegates voting for me.
This is a battle for prindple. A clear majority of the convention
understands that it is being waged to keep our party as a whole free from
dictation by a small group representing the interests in the nation which
have no place in our party,
la My friends will not be misled by organized propaganda by telegrams
now being sent to delegates.
14 Stick to your guns. It is clear that the nation must not and shall not
be overridden. Now is time to make it clear that we intend to stand fast
and win.
FRANKLIN D. ROOSEVELT.
Governor Franklin D. Roosevelt of New York Nominated for President at Democratic National Convention—John N. Garner, Speaker of House,
Named for Vice-President.
At the Democratic National Convention, held in Chicago
last week, Franklin D. Roosevelt, Governor of New York,
was nominated (July 1) for President of the United States,
and on the following. day (July 2) John N. Garner (of
Texas), Speaker of the House, was named for the VicePresidency. The nomination of Gov. Roosevelt came on
the fourth ballot, and was made possible with the release
of the votes of the California and Texas delegates (pledged
to support Speaker Garner for the Presidency) in favor of
Gov. Roosevelt. On the first ballot Gov. Roosevelt received
666% votes (against 201% for Alfred E. Smith); on the
second ballot 677% votes were registered for Gov. Roosevelt, with 194% for former Governor Smith; on the third
ballot 682% votes were recorded for Gov. Roosevelt, and
19014 for Mr. Smith. The last named had the next highest
number of votes to those of Gov. Roosevelt in the three
ballots—the third highest being Speaker Garner, who on
the three ballots polled respectively the following votes on
those ballots: 90%, 9014 and 101%. The number of votes
necessary to secure the nomination was 769-1/3. With the
breaking of the deadlock, as a result of the action of California and Texas, 90 votes (California 44 and Texas 46)
were switched from Speaker Garner to Gov. Roosevelt. As
to the subsequent developments the Chicago dispatch July
1 to the New York "Times" said:
This started a bandwagon rush, in which only New York—the nominee's
home State—Massachusetts, Rhode Island, New Jersey and Connecticut
declined to join, and Mr. Roosevelt was selected by a vote of 945, the
convention's two-thirds requirement being 769-1/3. His nearest rival, Alfred E. Smith, received 190% votes, the four States named sticking to
him to the last. . . .
William G. McAdoo, former Secretary of the Treasury, was the voice
of Mr. Roosevelt's destiny. Men the name of California was called by the
reading clerk he took the platform to explain the change of the vote in
the Western States. The news of the impending action had spread throughout the delegates.
But the galleries had not heard about it, and, when they sensed what
was happening, the boos and yells with which they expressed their
anger over the defeat of Alfred E. Smith required the efforts of Mayor
Anthony J. C,ermak of Chicago, whose presence was demanded by Permanent Chairman Thomas J. Walsh, to restore a measure of quiet.
217
Financial Chronicle
Volume 135
McAdoo Speaks for West.
Mr. McAdoo said that California had not come to Chicago to deadlock
the convention, that Democracy had suffered enough, as in 1924 when he
himself had almost polled a majority, by such methods. He said that the
opinion of the West, in which Speaker Garner joined, was that Democrats should fight Republicans and not one another.
He did not say what has been known here for several days, that
William Randolph Hearst, who has great influence in the California delegation and who "discovered" the qualification of Mr. Garner as a candidate, pressed the shift to Mr. Roosevelt because he feared that a
deadlock might produce Newton D. Baker or another candidate with
whose international policies he is not in agreement. Mr. Hearst also is a
believer in majority rule and the Texas-California contingent was responding to his ideas on that subject.
Throughout a feverish day in which, after a whole day and night of
sessions, Governor Roosevelt had polled on three ballots 682 of the 7691
/
2
he needed, his leaders and their opponents were engaged in efforts to accomplish their ends. For a time it was said that Tammany was ready
to cast its vote for Mr. Roosevelt if his lines held for another ballot. Al
the same time Mr. Smith, John W. Davis, James M. Cox and other national Democratic leaders were bending every effort to win over Roosevelt delegations, convinced that his loosely assembled strength would wilt
under adversity.
But California and Texas declined to give Tammany the credit for the
nomination of a Presidential candidate. They caucused at 6 o'clock after
Texas delegates had besieged Speaker Garner's campaign manager, Representative Samuel W. Reyburn, for release.
The Speaker, when he heard what was going on, capitulated. While
the fourth ballot was in progress Senator Cordell Hull of Tennessee said
that Speaker Garner had accepted a tender of the Vice-Presidential
nomination and would be chosen by the convention at its final session
to-morrow.
Garner to Accept Vice-Presidency.
Almost as soon as Mr. McAdoo began to speak standards of States
went up in tiers and the space above the delegates was soon a forest of
guidons. The organ pealed and the band played.
While Mr. McAdoo was waiting for the enthusiasm to subside, James A.
Farley, the successful manager of the Roosevelt campaign, rushed to
the platform to slap the California rescuer on the back.
When the celebration had been going on for about ten minutes the
only State standards not to be observed in the air were those of Maryland, Rhode Island, Ohio, New Jersey, the Philippines, Massachusetts and
Connecticut, practically all Smith States.
Demonstration Stops McAdoo.
At the start of his speech Mr. McAdoo said:
"We think that a contest too prolonged would bring schisms in the
party which could not be cured before election. In a case which requires a surgical operation a life may be lost by delay.
"We believe that California should take a stand to end this contest,
should take a stand regardless of her own interest.
"Our belief in Democracy is so strong that we feel, when a candidate comes to a convention as the choice of the popular will and has
behind him almost 700 votes—"
Then the demonstration broke loose.
The galleries, disappointed over the defeat of Al Smith, refused for
several minutes to let the proceedings continue. They booed and
shrieked.
"I appeal to the Mayor of the city of Chicago," shouted Senator Walsh,
"for the power to control this convention."
Mayor Cermak came to the stand and demanded order of the unruly
crowd.
"Let me appeal to my friends in the galleries," he said. "The Democratic National Committee were kind enough to come to our city. You
are their guests. Please act like guests. Please, I appeal to you, allow
this great gathering to go back home with nothing but pleasant memories of our city. Please," he said.
McAdoo Rebukes Galleries.
This got applause, but the booing began immediately again.
"Judge in the future," called Mr. McAdoo, "whether or not this is the
kind of hospitality Chicago accords to its guests. I intend to say what
I have to say here without regard to what the galleries or any one else
thinks."
"When any man is within reach of the two-thirds he is entitled to the
nomination," continued Mr. McAdoo, "and California proposes to do her
share to see that the popular will is respected. We came here for the
great Texan, John N. Garner, or whom we feel love and affection and
respect. But he hasn't as many votes as Mr. Roosevelt and he is in accord with the position I take here to-night. The great State of Texas
and the great State of California are acting in accord with what we
believe best for America and for the Democratic party. I would like
to see Democrats fight Republicans, and not Democrats, unlike 1924.
"Our decision represents the will of these delegates. And so, my friends,
California casts forty-four votes for Franklin D. Roosevelt."
Cheers from the convention and moans from the galleries greeted this
crucial announcement.
When Illinois was called, Mayor Cermak asked leave to explain the
vote first. He announced the release of his delegates by Melvin A. Traylor
and said that, with Indiana's 30, Illinois would cast her 58 votes for
Roosevelt, 88 votes in all.
Thomas Taggart, Jr., speaking for Indiana, confirmed Mayor Cernzak's
statement and cast the Hoosier State on the bandwagon.
Iowa, which had been chafing at her bonds, cast her 26 votes for
Roosevelt on this occasion without a demurrer.
The development as to the Pacific and Southwestern States came as a
result of the unwillingness of William G. McAdoo and William Randolph
Hearst either to permit Tammany to get the credit for the Presidential
nomination, or by further resistance to Mr. Roosevelt, to risk the nomination of Newton D. Baker, whose international policies are disapproved
by Mr. Hearst. . . .
The nomination on the fourth ballot dispelled a theory that had been
generally accepted as to Mr. Roosevelt's staying powers in the convention. Few believed that if two-thirds did not come on a second ballot,
a third would show anything but recession of his strength. Perhaps if the
convention had adjourned after the second ballot early this morning, as
Mr. Farley wanted it to do, an effective barrier might have been raised,
although the attitude of California and Texas, as revealed to-night,
would have made that difficult.
At any rate, the Hague leadership insisted on a third ballot, giving the
wavering Roosevelt delegates no opportunity to test the advisability of
breaking from their ties. This blunder may have had a great effect on
the events of to-day.
It was sudden change of tactics, for all through Wednesday afternoon
and night and Thursday's early hours the Hague leadership had been
delaying proceedings in every possible way in an effort to avert a vote
for which the Roosevelt leaders were pressing. They prolonged and added
to the oratory, they artificially stimulated the parades until it was
4:27 A. M., before the roll call of the States began.
But by that time Mr. Hague had decided to insist upon balloting. He
was sure that the Garner delegates and the other "Favorite Son" groups
would permanently make part of his anti-Roosevelt bloc. In this he
proved badly mistaken.
Mr. McAdoo found the opportunity for which he has been waiting since
1924. To-night he was the hero of the convention and its central figure.
What Bryan did for Wilson in 1912, Wilson's son-in-law did for Roosevelt to-night, and both moves were to prevent Tammany and the East
from choosing or blocking the choice of the Democratic nominee for
President of the United States.
It was 10:30 P. 'M. when the fourth ballot was completed. When adjournment was taken at 9:00 A. M. (New
York daylight time) on July 1 following the third ballot, the
hour fixed for reconvening was 8:30 P. M. (9:30 P. M. daylight). The following from Chicago July 1 regarding the
first three ballots is from the New York "Times":
After forcing two unsuccessful ballots in an attempt to bring about
the nomination of Governor Roosevelt for President at the all-night
session of the Democratic National Convention, the Roosevelt forces
suffered a minor defeat in failing to get an adjournment early to-day,
but successfully met the counter-attack of the Smith and anti-Roosevelt
combination on the third ballot, after which adjournment came by mutual
agreement.
It was 9 o'clock in the morning when 1,500 disheveled delegates, as
many alternates and several thousand spectators streamed out into the
bright sunlight of a perfect July morning.
All that had been accomplished at a twelve-hour all-night session was
the taking of three ballots, by which Roosevelt progressed from a vote of
666% to 682.79, which is 104.79 votes more than a majority and 87,12
votes fewer than the two-thirds needed to nominate.
Only seven States changed during the roll-calls, and these changes,
mostly favoring Roosevelt, gave him his slight gains. The shifts are
shown by the following tabulation of the Roosevelt vote on each of the
three ballots:
State.
First.
Second.
Third.
Indiana
14
14
16
Missouri
12
18
2034
New York
2854
2934
31
North Carolina
26
26
25.04
9
North Dakota
10
9
Ohio-234
ii34
4434
Pennsylvania
4554
Total vote
6665.1
67734
682.79
The first and second ballots were brought about by the Roosevelt leaders,
who hoped to make good their prediction of a first-ballot nomination
by shifts after the roll-call and before the announcement of the vote.
Adjournment Plan Defeated.
After the speeches placing the nine Presidential aspirants in nomination
had been ended, Senator Tom Conally of Texas, a supporter of Speaker
Garner, moved to adjourn.
The hour was late. The convention had been in session for more than
six hours, the delegates were tired and sleepy and in any normal convention, the motion for adjournment at 3 o'clock in the morning would
have been successful.
James A. Farley, Arthur F. Mullen of Nebraska, floor leader, and the
other Ronspvelt managers had determined to have a test, and insisted
that the motion be put to a roll-call.
It appeared at first as if the anti-Roosevelt delegates would vote for
the motion. When Illinois cast fifty-eight votes against adjournment,
thereby insuring certain defeat for the motion, New Jersey also voted in
the negative and Massachusetts, another Smith State, which had voted
in the affirmative, changed its vote.
After the announcement of the vote on the first ballot, Senator Walsh,
the chairman, immediately directed the roll-call of States for the second
ballot. The clerk had called out "Alabama" before Senator Connally renewed his motion. Senator Walsh declared the motion out of order during a roll-call.
After the second ballot had shown only a slight gain for Roosevelt and
his managers realized the impossibility of getting two-thirds on a ballot
immediately following, Mr. Mullen moved to adjourn.
Dudley Field Malone of New York objected. On a vote the chorus of
ayes and noes were each so strong that Senator Walsh could not decide.
Daniel F. Cahalan of New York, another Smith supporter, asked for a
roll-call and was sustained by more than one-fifth of the delegates, as
required by the rules. 11r. Mullen then withdrew his motion for adjournment, obviating the necessity for a roll-call, and the third ballot
proceeded.
Steady Gain for Roosevelt.
Frank Hague of New Jersey, the Smith leader, had been reported to
have said that this third ballot Would show a loss for Roosevelt and start
the beginning of a drift away from him. Instead, Roosevelt gained slightly and the leaders of both sides, having reached the point of almost complete exhaustion, were willing to quit.
William G. McAdoo of California, the most powerful supporter of
Speaker Garner, had a conference with Mr. Mullen, after which Mr.
McAdoo moved to adjourn and Mr. Mullen seconded the motion.
The motion was carried.
•
Associated Press accounts from Chicago July 1 indicated
as follows the standing of the Presidential candidates on
the first three ballots:
Roosevelt
Smith'
Garner
White
Traylor
Reed
Byrd
Murray
Ritchie
Baker
Rovers
Necessary to nominate, 770.
First.
Second,
66634
201 34
9034
52
4254
24
25
23.
21
834
__
67734
19434
9034
5034
4034
18
24
682.79
19034
10134
5234
4034
2734
24.96
i834
8
22
i.3.34
834
Third.
218
Financial Chronicle
On the fourth and final ballot the voting was as follows:
49.
,
t
Reed
f.
Garner
z....
Smith
State.
!Total Vole
THE FOURTH BALLOT.
i a
4 g :i
Alabama
24 24
Arizona
-Arkansas
44 44
California
Colorado
12
12
16
_ _ 16
Connecticut
Delaware
--- --Florida
14
14
Georgia
28 28
Idaho
8
8
-- -Illinois
58 58--- --- --Indiana
30 30
Iowa
26 26
Kansas
20 20
Kentucky
26 26
Louisiana
20 20
Maine
12
12
Maryland
16
16
--- --- --- --- --- --- --- ___
36
Massachusetts
36
Michigan
38 38
Minnesota
24 24
Mississippi
20 20
Missouri
36 36
--- ----- --- --- --- --Montana
8
8
Nebraska
16
16
Nevada
6
----- --- --- --- _-_ __
.6
8
8 , - --- --- ii--- --- --- --New Hampshire_
___ ,ii
New Jersey
32
New Mexico
6
6
63
New York
94
31
--- --North Carolina
2
26
- -- --- - -- - ---- - - - --___
North Dakota
10
--- --- --- -- --- --1
_-_
2
---------3
17
Ohio
29
5
Oklahoma
Oregon
10
-Ii
14 534
Pennsylvania
144 ___
49
7
Rhode Island
1
South Carolina-.
ii
--- - -- --_ _-- --- --- --- --South Dakota
10
1
--- --- --- --- --- --Tennessee
2
24
--Texas
----- --.
4
4
--- --- --Utah
--- ----- --- --Vermont
--- —_ _-_
Virginia
2
2
--- --- --- --- --- --- --Washington _____
1
1
--- --- -__ ___ --- --- --- --West Virginia
___ --- --- --- --1
1
--- _-2
Wiscon.sln
--- ___
2
2
--- --- --Wyoming
--- ----- --- --- --- --Alaska
--- --- --- --- --- --- --- --District of Columbia
--- --- --- --- --- --- --- --Hawaii
--- --- --- --- --- --- --Philippines-Puerto Rico
___
Canal Zone
_-- ___ --- --- --- --Virgin Lslands
Totals
1. 5494
blo cast one vote tor Cox.
1904 ___
34
54 -_-
As we indicate in another item, Gov. Roosevelt appeared
at the convention on July 2, and delivered his speech of
acceptance. This came after the nomination, unanimously,
of John N. Garner as Vice-President. Reporting the latter's
nomination the Chicago correspondent of the New York
"Herald Tribune," (Henry Cabot Lodge, Jr.), on July 2
said:
Jahn N. Garner, of Texas, Speaker of the House, whose switch of votes
last night assured Governor Franklin D. Roosevelt the Presidential nomination, was nominated by acclamation as the Democratic candidate for
Vice-President at 3:38 P. M., Chicago time, to-day. The New York
delegation joined in seconding his nomination.
During the hour and a half which followed the coming to order of the
convention and the nomination of Mr. Garner, all the other Vice-Presidential
possibilities melted away in the blaze of fulsome oratory. There were
eighteen nominating and seconding speeches. As predicted in this morning's issue of the New York "Herald Tribune," the stage was set for
Mr. Garner, due, in overwhelming part, to the debt which the Roosevelt
forces owed to him.
While many qualities were attributed to the Speaker, no serious mention is made of any State which he could carry for the ticket which
Governor Roosevelt could not win alone.
The other member of the team which assured Governor Roosevelt's nomination, William Gibbs McAdoo, is understood to have received word
that in his contest for the Democratic Senatorial nomination in California
he will have the support of the Roosevelt organization.
The present Roosevelt candidate for the Senatorial nomination is Justus
S. Wardell of San Francisco, who headed the Roosevelt forces in the
Presidential primaries in May.
Garner': Ruggedness Praised.
Representative John McDuffie of Alabama, in nominating Speaker Garner, praised his sterling qualities, rugged strength and his experience
with the intricate machinery of government. Speaker Garner, the Alabaman declared, did not preach the theories of "two chickens in every pot
and two automobiles in every garage" and does not believe that we may
have prosperity by Executive proclamation. Unable to say yes and no at
the same time and cool enough for any crisis, Mr. Garner was a man, Mr.
McDuffie averred, who, with Governor Roosevelt, will lead the Democratic party to the greatest victory it has ever achieved."
It was noted in the New York "Times" dispatch from
Chicago, July 2 that only one other nomination was made—
that of General Matthew A. Tinley of Iowa. When the rollcall of the States was concluded General Tinley moved the
nomination be made unanimous.
In Washington on July 2 Speaker Garner addressed the
following message to Representative Sam Rayburn, his campaign manager at Chicago:
"Please convey to the Democrats assembled in Chicago my grateful
appreciation of the honor extended me and the confidence expressed. The
privilege and honor of being associated with our great leader, Governor Franklin D. Roosevelt, is one of personal gratification.
"Under his banner and leadership the people of the United States
w:S.1 have their government restored to them on March 4 1933.
(Signed) JOHN N. GARNER."
July 9 1932
Speech of Gov. Franklin D. Roosevelt of New York
Accepting Nomination as President on Democratic
Ticket—Says Eighteenth Amendment Is Doomed-Declares for Relief of Unemployed and Agriculture Through Reforestation of Unused Timber
Land—Says Tariff Platform of Democrats Will
Protect American Business and Labor—Favors
Steps to Shorten Working Day and Working Week.
Governor Franklin D. Roosevelt of New York who remained in Albany during the early sessions of the Democratic National Convention at Chicago last week, made a
trip by airplane to the convention on July 2, and at the
concluding session that day delivered his speech of acceptance as Presidential candidate on the Democratic ticket.
On July 1, following his nomination, a message had been
sent from Albany to the convention by the Governor requesting that the convention remain in session after the
selection of the Vice-Presidential candidate on July 2 in
order that the Governor might be immediately officially
notified, and deliver his speech of acceptance at once.
The text of Governor Roosevelt's message from Albany
July 1 to the convention, as read from the rostrum by
Chairman Walsh, follows:
It is with a deep sense of my responsibility to meet your high estimate
of my qualifications that I thank you for my selection as your candidate.
It is customary to hold formal notification ceremonies some weeks
after the convention. This Involves great expense and in these times I
would prefer that this be not followed. Instead may I ask the convention to remain in session after the selection of the Vice-Presidential candidate to-morrow, that I may appear before you and be notified at that
time?
I want very much to express my thanks to you all personally and face
to face.
Will you let me know the wishes of the convention? I can arrive
between 2 and 8 o'clock to-morrow.
(Signed) FRANKLIN D. ROOSEVELT.
The Governor and members of his family, who left Albany
by airplane at 8.30 A. M. on July 2, arrived at Chicago at
4.30 P. M. and at 6 P. M. (7 P. M. daylight saving time) he
appeared before the convention and formally accepted the
nomination. In his speech of acceptance Gov. Roosevelt
stated that "as an immediate program of action we must
abolish useless offices." "I propose," he said, "that Government of all kinds, big and little, be made solvent, and that
the example be set by the President of the United States
and his cabinet." As to the prohibition law, he declared,
"I say to you that from this date on, the Eighteenth Amendment is doomed. When that happens, we as Democrats
must, and will, rightly and morally enable the states to
protect themselves against the importation of Intoxicating
liquor where such Importation may violate their state laws.
We must rightly and morally prevent the return of the
saloon."
In indicating his stand in dealing with unemployment and
agriculture the Governor said:
I have favored the use of certain types of public works, as a further
emergency means of stimulating employment and the issuance of bonds,
to pay for such public works, but I have pointed out that no economic end
is served if we merely build without building for a necessary purpose.
Such works, of course, should, insofar as possible, be self-sustaining, if
they are to be financed by the issuing of bonds. So as to spread empoyment of all kinds as widely as possible, we must take definite steps to
shorten the working day and the working week. . . .
We know that a very hopeful and immediate means of release, 'both
for the unemployed and for agriculture, will come from a wide plan of
the converting of many millions of acres of marginal and unused land
into timber land through reforestation. There are tens of millions of
acres east of the Mississippi River alone in abandoned farms, in cut-over
land, now growing up in worthless brush. . . .
It is clear that economic foresight and immediate employment march
hand-in-hand in the call for the reforestation of these vast areas. In
so doing, employment can be given to a million men.
Gov. Roosevelt also said:
It should be our aim to add to the world prices of staple products
the amount of a reasonable tariff protection. Give agriculture the same
protection that industry has to-day. And in exchange for this immediately increased return I am sure that the farmers of this nation would
agree ultimately to such planning of their production as would reduce the
surpluses and make it unnecessary in later years to depend on dumping
those surpluses abroad in order to support domestic prices.
Declaring his acceptance of "that admirable tariff statement in the platform of this convention," the Governor
added:
I would protect American business and American labor.
,
By our acts of the past we have invited and received the retaliation of
nations.
I
propose
an
other
invitation to them to forget the past, to
sit at the table with us, as friends, and to plan with us for the restoration of the trade of the world.
Go into the home of the business man. He knows what the tariff has
done for him. Go into the home of the factory worker. Ile knows why
goods do not move. Go into the home of the farmer. He knows how
the tariff has helped to ruin him.
Expressing the view that, more than anything else, the
people of America want work and "a reasonable measure
of security," Gov. Roosevelt said:
Volume 135
Financial Chronicle
Work and security—these two are more than words. They are more
than facts. They are the spiritual values, the true goal toward which
our efforts of reconstruction should lead. These are the values that this
program is intended to gain. These are the values we have failed to
achieve by the leadership we now have.
The Governor's speech of acceptance follows in full:
Chairman Walsh, my friends of the Democratic National Convention
of 1932:
I appreciate your willingness after these six arduous days to remain
here, for I know well the sleepless hours that you and I have had.
I regret that I am late, but I had no control over the winds of heaven
and could only be thankful for my navy training. The appearance before
a national convention of its nominee for President before being formally
notified of his selection is unprecedented and unusual, but these are unprecedented and unusual times.
I have started out on the tasks that lie ahead by breaking the absurd
tradition that the candidate should remain in professed ignorance of what
has happened for weeks, until he is formally notified of that event many
weeks later.
My friends, may this be the symbol of my intention to be honest and
to avoid all hypocrisy or sham, to avoid all silly shutting of the eyes to
the truth in this campaign. ,You have nominated me and I know it, and
I am here to thank you for the honor.
Let it also be symbolic that in so doing I broke traditions. Let it be
from now on the task of our party to break foolish traditions.
We will break foolish traditions and leave it to the Republican leadership, far more skilled in that art, to break promises. Let us now and
here highly resolve to resume the country's uninterrupted march along
the path of real progress, of real justice, of real equality for all of our
citizens, great and small.
Our indomitable leader in that interrupted march is no longer with
us, but there still survives to-day his spirit.
Many of his captains, thank God, are still with us, to give us wise
counsel. Let us feel that in everything we do there still lives with us,
It not the body, the great indomitable, unquenchable, progressive soul
of our commander-in-chief, Woodrow Wilson.
I have many things on which I want to make my position clear at
the earliest possible moment in this campaign. That admirable document, the platform which you have adopted, is clear. I accept it 100 per
cent. And you can accept my pledge that I will leave no doubt or ambiguity on where I stand on any question of moment in this campaign.
As we enter this new battle, let us keep always present with us some
of the ideals of the party. The fact that the Democratic party by tradition
and by the continuing logic of history, past and present, is the bearer of
liberalism and of progress, and at the same-time of safety to our institutions.
And if this appeal fails, remember well, my friends, the resentment
against the failure of Republican leadership. And note well that in this
campaign I shall not use the words "Republican party," but instead,
day in and day out, the words "Republican leadership."
The failure of Republican leaders to solve our troubles may degenerate
Into unreasoning radicalism.
The great social phenomenon of this depression, unlike others before it,
Is that it has produced but a few of the disorderly manifestations that
too often attend upon such times.
Wild radicalism has made few converts, and the greatest tribute that
I can pay to my countrymen ia that in these days of pressing want there
persists an orderly and hopeful spirit on the part of the millions of our
people who have suffered so much. To fail to offer them a new chance is
not only to betray their hopes, but to misunderstand their patience.
Way to Meet Danger of Radicalism.
To meet by reaction that danger of radicalistn is to invite disaster.
Reaction is no barrier to the radical. It is a challenge, a provocation.
The way to meet that danger is to offer a workable program of reconstruction, and the party to offer it is the party with clean hands.
This, and this only, is a proper protection against blind reaction on
the one hand and an improvised, bit-or-miss, irresponsible opportunism on
the other.
There are two ways of viewing the government's duty in matters
affecting economic and social life. The first sees to it that a favored few
are helped and hopes that some of their prosperity will leak through, sift
through to labor, to the farmer, to the small business man. That theory
belongs to the party of Toryism and I had hoped that most of the Tories
left this country in 1776, but it is not and never will be the theory of the
Democratic party.
This is no time for fear, for reaction or for timidity, and here and now
I invite those nominal Republicans who find that their conscience cannot
be squared with the groping and the failure of their party leaders, to
join hands with us; here and now, in equal measure, I warn those nominal
Democrats who squint at the future with their faces turned toward the
past, and who feel no responsibility to the demands of the new time, that
they are out of step with their party.
Yes, the people of this country want a genuine choice this year, not a
choice between two names for the same reactionary doctrine. Ours must be a
party of liberal thought, of planned action, of enlightened international
outlook, and of the greatest good to the greatest number of our citizens.
Now it is inevitable, and the choice is not ours—the choice is that
of the times—it is inevitable that the main issue of this campaign should
revolve about the clear fact of our economic condition, a depression so
deep that it is without precedent in modern history.
It will not do merely to state, as do Republican leaders to explain
their broken promises of continued prosperity, that the depression is
world-wide. That was not their explanation of the apparent prosperity
of 1928.
The people will not forget the claim made by them then, that prosperity was only a domestic product, manufactured by a Republican President and a Republican Congress. If they claim paternity for the one,
they cannot deny paternity for the other.
I cannot take up all of the problems to-day. I want to touch on a
few that are vital. Let us look a little at the recent history and at
simple economies, the kind of economics that you and I and the average
man and woman talk. In the years before 1929 we know that this country
had completed a vast cycle of building and inflation.
For ten years we expanded on the theory of repairing the wastes of
the war, but actually expanding far beyond that and also far beyond our
natural and normal growth. Now it is worth remembering, and the cold
figures of finance prove it, that during that time there was little or no
drop in the prices that the consumer had to pay, although those same
figures prove that the cost of production fell very greatly. Corporate
profit resulting from this period was enormous. At the same time little
of that profit was devoted to the reduction of prices. The consumer
was forgotten. Very little• of it went into increased wages. The worker
219
was forgotten, and by no means an adequate proportion was even paid
out in dividends. The stockholder was forgotten.
And, incidentally, very little of it was taken by taxation to the beneficient government of those years.
Spell of Delirious Speculation.
What is the result? Enormous corpomte surpluses piled up, the most
stupendous in history. Where under the spell of delirious speculation did
those surpluses go? Let us talk economics that the figures prove and that
we can understand.
Why, they went chiefly in two directions. First, into new and unnecessary plants which now stand stark and idle, and secondly, into the
call money market of Wall Street, either directly by the corporations or
indirectly through the banks.
These are the facts. Why blink them?
Then came the crash. You know the story. The surplus invested in
unnecessary plant became idle. Men lost their jobs, purchasing power
dried up, banks became frightened and started calling loans. Those who
had money were afraid to part with it. Credit contracted. Industry
stopped. Commerce declined and unemployment mounted, and there we
are to-day.
Translate that into human terms. See how the events of the past three
years have come home to specific groups of people. First, the group
dependent on industry; second, the group dependent on agriculture; third,
and made up in large part of members of the first two groups, the people
who are called small investors and depositors.
In fact, the strongest possible tie between the first two groups, agriculture and industry, is the fact that the savings and to a degree the
security, of both are tied together in that third group, the credit structure
of the nation.
Interests of AU People United in Economic Problem.
Never in history have the interests of all the people been so united
in a single economic problem.
Picture to yourself, for instance, the great groups of property owned by
millions of our citizens represented by credits issued in the form of
bonds and mortgages, Government bonds of all kinds, Federal, State,
county, municipal, bonds of industrial companies, of utilities companies,
mortgages on real estate in farms and cities, and finally the vast investment of the nation in the railroads.
What is the measure of the security of each of those groups? We
know well that in our complicated interrelated credit structure if any
one of these credit groups collapses they may all collapse. Danger to one
is danger to all. And how, I ask, has the present administration in Washington treated the interrelationships of these credit groups? The answer
is clear—it has not recognized that interrelation existed at all.
Why, the nation asks, has Washington failed to understand that all
of these groups, each and every one, the top of the pyramid and the
bottom of the pyramid, must be considered together; that each and every
one of them is dependent on every other, each and every one of them
affecting the whole financial fabric?
Statesmanship and vision, my friends, require relief to all at the same
time.
Just one word or two on taxes, the taxes that all of us pay toward the
cost of government of all kinds. Well, I know something of taxes. For
three long years I have been going up and down this country preaching
that Government—Federal and State and local—costs too much. I shall
not stop that preaching.
Must Abolish Useless Offices.
As an immediate program of action, we must abolish useless offices.
We must eliminate actual prefunctions of government—functions, in fact,
that are not definitely essential to the continuance of government. We
must merge, we must consolidate subdivisions of government, and, like the
private citizens, give up luxuries which we cannot longer afford.
By our example at Washington itself, we shall have the opportunity
of pointing the way of economy to local government, for let us remember
well that out of every tax dollar in the average State in this nation, 40
cents enters the Treasury in Washington, D. C., 10 or 12 cents only go
to the State capitals, and 48 cents out of every dollar are consumed by
the costs of local government in counties and cities and towns.
I propose to you my friends, and through you, that government of
all kinds, big and little, be made solvent, and that the example be set by
the President of the United States and his Cabinet.
And talking about setting a definite example, I congratulate this
convention for having had the courage, fearlessly to write into its
declaration of principles what an overwhelming majority here assembled
really thinks about the Eighteenth Amendment. This convention wants
repeal. Your candidate wants repeal. And I am confident that the
United States of America wants repeal.
Two years ago the platform on which I ran for Governor the second
time contained substantially the same provision. The overwhelming sentiment of the people of my State as shown by the vote of that year extends,
I know, to the people of many of the other States.
Eighteenth Amendment Doomed.
A say to you now that from this date on, the Eighteenth Amendment is
doomed. When that happens, we as Democrats must and will, rightly and
morally enable the States to protect themselves against the importation
of intoxicating liquor where such importation may violate their State
laws. We must rightly and morally prevent the return of the saloon.
To go back to this dry subject of finance, because it all ties in together—the Eighteenth Amendment has something to do with finance, too
—in a comprehensive planning for the reconstruction of the great credit
groups, including governmental credit, I list an important place for that
prime statement of principle in the platform here adopted calling for the
letting in of the light of day on issues of securities, foreign and domestic,
which are offered for sale to the investing public.
My friends, you and I as common sense citizens know that it would
help to protect the savings of the country from a dishonesty of crooks
and from the lack of honor of some men in high financial places. Publicity
is the enemy of crookedness.
Employment and Agriculture.
And now one word about unemployment and, incidentally, about agriculture.
I have favored the use of certain types of public works, as a further
emergency means of stimulating employment and the issuance of bonds
to pay for such public works, but I have pointed out that no economic end
Is served if we merely build without building for a necessary purpose.
Suchworks, of course, should insofar as possible be self-sustaining, if
they are to be financed by the issuing of bonds. So as to spread the
points of all kinds as widely as possible, we must take definite steps to
shorten the working day and the working week.
Let us use common sense and business sense, and just as one example
we know that a very hopeful and immediate means of release, both for
220
Financial Chronicle
the unemployed and for agriculture, will come from a wide plan of the
converting of many milliOns of acres of marginal and unused land into
timber land through reforestation.
There are tens of millions of acres east of the Mississippi River alone
In abandoned farms, in cut-over land, now growing up in worthless brush.
Why, every European nation has a definite land policy and has had
one for generations. We have not; hoving none, we face a future of soil
erosion and timber famine. It is clear that ecoomic foresight and immediate employment march hand in hand in the call for the reforestation of these vast areas. In so doing, employment can be given to a
million men.
That Is the kind of public work that is self-sustaining—and therefore
capable of being financed by the issuance of bonds which are made
secure by the fact that the growth of tremendous crops will provide adequate security for the investment.
Yes, I have a very definite program for providing employment by that
means. I have done it and I am doing it to-day in the State of New
York. I know that the Democratic party can do it successfully in the
nation. Thit will put men to work and that is an example of the action
that we are going to have.
Now, as a further aid to agriculture we know perfectly well—but have
we come out and said so clearly and distinctly—we should repeal immediately those provisions of law that compel the Federal Government to
go into the market to purchase, to sell, to speculate in farm products, in
a futile attempt to reduce farm surpluses.
And they are the people that are talking of keeping Government out
of business. Why, the practical way to help the farm is by an arrangement
that will, in addition to lightening some of the impoverishing burdens
from his back, do something toward the reduction of the surpluses of
staple commodities that hang on the market. It should be our aim to
add to the world prices of staple products the amount of a reasonable
tariff protection, give agriculture the same protection that industry has
to-day.
Reconstruction of Agriculture.
And in exchange for this immediately increased return I am sure that
the farmers of this nation would agree ultimately to such plagning of
their production as would reduce the surpluses and make it unnecessary
In later years to depend on dumping those surpluses abroad in order to
support domestic prices. That result has been accomplished in other
nations; why not in America, too?
Farm leaders, farm economists generally agree that a plan based on
that principle is a desirable first step in the reconstruction of agriculture. It does not in itself furnish a complete program but it will
serve in great measure in the long run to remove the pall of a surplus
without the continued perpetual fret of world dumping. Final voluntary
reduction of surplus is a part of our objective, but the long continuance
and the present burden of existing surpluses make it necessary to repair
great damage of the present by immediate emergency measures.
Such a plan as that, my friends, does not cost the Government any
money nor does it keep the Government in business or in speculation.
And as to the actual wording of a bill, I believe that the Democratic
party stands ready to be guided by whatever the responsible farm groups
themselves agree on. That is a principle that is sound, and again I
ask for action.
One word about the farmer, and I know that every delegate that lives
In the city in this hall knows why I lay emphasis on the farmer. It is
because one-half of our population, over 50,000,000 people, are dependent
on agriculture, and my friends, if those 50,000,000 people have no money,
no cash to buy what is produced in the city, the city suffers to an equal
or greater extent.
And that is why we are going to make the voters understand this year
that this nation is not merely a nation of independence, but it is if we
are to survive, bound to be a nation of interdependence, town and city,
and North and South, East and West. That is our goal and that goal
will be understood by the people of this country no matter where they
live.
Yes, the purchasing power of that half of our population dependent
on agriculture is gone. Farm mortgages reach nearly ten billions of
dollars to-day and interest charges on that alone are $560,000,000 a year.
But that is not all. The tax burden caused by extravagant and inefficient
local government is an additional factor. Our most immediate concern
should be to reduce the interest burden on these mortgages.
Rediscounting of Farm Mortgages.
Rediscounting of farm mortgages under salutary restrictions must be
expanded and should, in the future, be conditioned on the reduction of
interest rates. Amortization payments, maturities should likewise in this
crisis be extended before rediscount is permitted where the mortgagor is
sorely pressed. That, my friends, is another example of practical immediate relief. Action.
I am to do the same thing and it can be done, for the small home
owners in our cities and villages. We can lighten his burden and develop his purchasing power. 'rake away, my friends, that spectre of too
high an interest rate. Take away that spectre of the due-date just a short
time away. Save homes; save homes for thousands of self-respecting
families and drive out that spectre of insecurity from our midst.
Our of all the tons of printed paper, out of all the hours of oratory,
the recriminations, the defenses, the happy thought plans in Washington
and in every State, there emerges one great, simple, crystal-pure fact that
during the past ten years a nation of 120,000,000 has been led by the
Republica leaders to erect an impregnable barbed-wire entanglement
around its borders through the instrumentality of tariffs which have
Isolated us from all the other human beings in all the rest of the round
world.
Accepts Tariff Plank.
I accept that admirable tariff statement in the platform of this
convention. It would protect American business and American labor. By
our acts of the past we have invited and received the retaliation of other
nations. I propose an invitation to them to forget the past, to sit at the
table with us, as friends, and to plan with us for the restoration of the
trade of the world.
Go into the home of the business man. He knows what the tariff has
done for him. Go into the home of the factory worker. He knows
why goods do not move. Go into the home of the farmer. He knows
how the tariff has helped to ruin him.
Yes, at last our eyes are open ; at last the American people are ready
to acknowledge that Republican leadership was wrong and that the
Democracy is right. My program of which I can only touch on these
points, is based upon this simple moral principle—the welfare and the
soundness of a nation depends first upon what the great mass of the
pe,-ple wish and need; and secondly, whether or not they are getting it.
Work and Security for American People.
What do the people of America want more than anything else? In
my mind, two things; Work; work with all the moral and spiritual
July .9 1932
values that go with work. And with work, a reasonable measure of
security—security for themselves and for their wives and children.
Work and security—these two are more than words. They are more than
facts. They are the spiritual values, the true goal toward which our
efforts of reconstruction should lead. These are the values that this
program is intended to gain. These are the values we have failed to
achieve by the leadership we now have.
Our Republican leaders tell us economic laws—sacred, inviolable, unchangeable—that these laws cause panics which no one could prevent.
But while they prate of economic laws, men and women are starving.
We must lay hold of the fact that economic laws are not made by nature.
They are made by human beings.
Yes, when, not if when, if we get the chance, the Federal Government
will assume bold leadership in distress relief. For years Washington has
alternated between putting its head in the sand and saying there is no
large number of destitute people in our midst who need food and clothing,
and then saying the States should take care of them if there are. Instead
of planning two and a half years ago to do what they are now trying to
do, they kept putting it off from day to day and week to week and month
to month, until the conscience of America demanded action.
I say that while primary responsibility for relief rests with localities
now, as ever, yet the Federal Government has always had and still has a
continuing responsibility for the broader public welfare. It will soon
fulfill that responsibility.
And now, just a few words about our plans for the next four months.
By coming here instead of waiting for a formal notification I have made
it clear that I believe we should eliminate expensive ceremonies and that
we should set in motion at once, to-night, my friends, the necessary
machinery for an adequate presentation of the issues to the electorate of
the nation.
I myself have important duties as Governor of a great State. Duties
which in these times are more arduous and more grave than at any
pr wious period, and yet I feel confident that I shall be able to make a
number of short visits to several parts of the nation and my trips will
have as their first objective a study at first hand from the lips of men
and of women of all parties and all occupations, the actual conditions and
needs of every part of an interdependent country.
One word more; out of every crisis, every tribulation, every disaster,
mankind rises with some share of greater knowledge, or higher decency, of
purer purpose. To-day we shall have come through a period of loose
thinking and descending morals, an era of selfishness, of individual men
and women and of whole nations.
Blame not Governments alone for this. Blame ourselves an equal
share. Let us be frank in acknowledgment of the truth that many
amongst us have made obeisance to Mammon, that the profits of speculation, the easy road without toil, have lured (Is from the old barricades.
To return to higher standards, we must abandon the false prophets and
seek new leaders of our own choosing.
Asks Support to Resedre America to Its Own People.
Never before, never before in modern history, have the essential
differences between the two major American parties stood out in such
striking contrast as they do to-day. Republican leaders not only have
failed in nraterial things, they have failed in national vision, because in
disaster they have held out no hope, they have pointed out no path for
the people below to climb back to places of security and of safety in our
American life.
Throughout the nation men and women, forgotten in the political
philosophy of the Government of the last years, look to us here for guidance and for more equitable opportunity to share in the distribution of
national wealth.
On the farms, in the large metropolitan areas, in the smaller cities
and in the villages, millions of citizens cherish the hope that their old
standards of living and of thought have not gone forever. Those millions
cannot and shall not hope in vain.
I pledge you—I pledge myself—to a new deal for the American people.
Let us all here assembled constitute ourselves prophets of a new order
of competence and of courage. This is more than a political campaign;
It is a call to arms.
Give me your help, not to win votes alone, but to win in this crusade
to restore America to its own people.
Former Governor Alfred E.Smith Indicates His Support
of Democratic Party.
Former Governor Alfred E. Smith of New York, who was
a candidate for President at the recent National Democratic
Convention in Chicago at which Governor Franklin D.
Roosevelt was nominated for the presidency, indicated in a
statement issued in New York on July 6, that he would
support the Democratic Party. Following the switch
of the Garner votes in California and Texas by William G.
McAdoo to Governor Roosevelt, there had been many conjectures as to the attitude of the former Governor toward
the ticket named. Mr. Smith left Chicago before the arrival
there of Governor Roosevelt on July 2, and the silence which
he had maintained as to the developments at the Convention
was not broken until his statement of July 6, which we give
herewith:
Upon the urgent insistence of many patriotic supporters, I entered
the contest for the Democratic nomination for the purpose of fighting for a
declaration of principles in the interest of the whole country as well as
the Democratic Party. The principles which I advocated have in part
been adopted, notably the declaration favoring repeal of the Eighteenth
Amendment and immediate modification of the Volstead Act.
PI
I want my friends all over the country to know that my heart is full
of gratitude for the loyalty which they have displayed toward me. Since
the nomination was made at Chicago. and continuing to this momnet,
I have been receiving thousands of letters and telegrams from them,looking
to me for advice and suggestion; thousands more making definite suggestions to me. Obviously, it will be impossible for me to reply to them
individually.
Most of the suggestions urge the organization of an independent political
party. These come from people dissatisfied with the conventions of both
parties. To them I say it Is not practical, in our country, to start a third
party at this time, as it would simply register a negative vote which would
accomplish nothing for the people in their hour of need.
We are living under a system of two major political parties. The
parties out of power should constitute the necessary check and audit
upon the party in power. The question before us to-day for decision is,
Volume 135
Financial Chronicle
shall the record of the last 12 years of Republican Administration be approved at the polls in November? As far as I am concerned, I am totally
dissatisfied with that record and shall do nothing to lend it countenance.
I shall, therefore, support the Democratic Party.
Prohibition Plank in Platform Adopted at Republican
National Convention.
In view of the fact that the plank in the Republican platform, covering the Eighteenth Amendment, was incorrectly
given in our issue of June 18 (page 4427) we give the same
herewith in correct form:
The Eighteenth Amendment.
The Republican Party has always stood and stands to-day for obedience
to and enforcement of the law as the very foundation of orderly government
and civilization. There can be no National security otherwise. The duty
of the President of the United States and of the officers of the law is clear.
The law must be enforced as they find it enacted by the people. To these
courses of action we pledge our nominees.
The Republican Party is and always has been the party of the Constitution. Nullification by non-observance by individuals or State action
threatens the stability of government.
While the Constitution makers sought a high degree of permanence, they
foresaw the need of changes and provided for them. Article V limits the
proposals of amendments to two methods: (1) Two-thirds of both Houses
of Congress may propose amendments or (2) on application of the legislatures of two-thirds of the States a National Convention shall be called by
Congress to propose amendments. Thereafter ratification must be had in
one of two ways: (1) By the legislatures of three-fourths of the several
States, or (2) by conventions held in three-fourths of the several States.
Congress is given power to determine the mode of ratification.
Referendums without constitutional sanction cannot furnish a decisive
answer. Those who propose them innocently are deluded by false hopes:
those who propose them knowingly are deceiving the people.
A nation-wide controversy over the Eighteenth Amendment now distracts attention from the constructive solution of many pressing National
problems. The principle of National prohibition as embodied in the
Amendment was supported and opposed by members of both great political
parties. It was submitted to the States by members of Congress of different
political faiths and ratified by State legislatures of different political
majorities. It was not then and is not now a partisan political question.
Members of the Republican Party hold different opinions with respect to
it and no public official or member of the party should be pledged or forced
to choose between his party affiliations and his honest convictions upon
this question.
We do not favor a submission limited to the issue of retention or repeal.
for the American nation never in its history has gone backward and in this
case the progress which has been thus far made must be preserved, while
the evils must be eliminated.
We therefore believe that the people should have an opportunity to pass
upon a proposed amendment the provision of which, while retaining in the
Federal Government power to preserve the gains already made in dealing
with the evils inherent in the liquor traffic, shall allow States to deal with
the problem as their citizens may determine, but subject always to the
power of the Federal Government to protect those States where prohibition
may exist and safeguard our citizens everywhere from the return of the
saloon and attendant abuses.
10: Such an amendment should be promptly submitted to the States by
Congress, to be acted upon by State conventions called for that sole purpose
inlaccordance with the provisions of Article V of the Constitution and
adequately safeguarded so as to be truly representative.
Cost of Broadcasts at Democratic Convention Placed
at $943,440.
From the New York "Times" of July 3 we take the following:
The major radio networks of the country signed off last night from
Chicago Stadium microphones following the address of acceptance of
Governor Roosevelt, and another National Democratic Convention passed
into history, so far as the radio listener is concerned.
During the last 24 hours listeners heard the nomination of a potential
Vice President by acclamation, the cheering of throngs that jammed the
Stadium as Governor Roosevelt was being awaited, and the bedlam of
applause and cheers that greeted his arrival on the speakers' platform to be
introduced by Senator Walsh.
The broadcasting networks during the week devoted nearly 50 hours
each to the presentation of the meeting of the Democrats, at an estimated
cost running close to a million dollars. The cost is based on existing day
and night hour rates of the radio facilities. The WEAF and WJZ networks of the National Broadcasting Co., spanning the continent, were
on the air 47 2-3 hours up to eight o'clock last night. It has been estimated
the cost of the networks for that time would amount to $409,500. The
WABO Columbia chain of more than 90 stations, on the air for approximately 44 hours up to 8 p. m, yesterday, is estimated to represent a cost
of $533,940. The total estimated cost thus reaches $943.440.
The longest continuous time on the air was approximately 12 hours,
from about ten o'clock Thursday until mid-morning on Friday.
Governor Roosevelt, Mayor Cermak of Chicago, Mrs. Roosevelt, two
sons of the Governor, and others were heard over the entire radio network
facilities of WABC and WEAF-WJZ shortly after the party alighted from
their airplane at the Chicago Municipal Airport. From that time until
the Governor's arrival in the Stadium, listeners heard the closing exercises
and resolutions.
The same paper in its July 2issue said:
A record political broadcast was established Thursday night June 301
and yesterday morning July 1] when for 11 hours and 50 minutes 158
stations scattered from coast to coast in the United States were attached
to microphones in the Chicago Stadium. For the major portion of that
time the combined stations associated with the WEAF-WJZ and WABO
networks reached a total of 184 transmitters. On the part of the radio
men there was no thought of going off the air.
The WA130 network signed off from the Stadium to resume its regular
Friday morning programs at 10:30 a. m. (Eastern daylight time), having
nearly 12 hours of continuous convention broadcasting to its credit. The
WEAF-WJZ stations cut the Chicago microphones 15 minutes earlier. Over
that chain the session had been picked up the previous evening at 10:25
o'clock. WOE joined the NBC network at midnight Thursday and resumed its regular features yesterday at 6:45 a. m.
Besides the broadcasting stations scattered in more than 40 States of
the United States, several powerful' short-wave transmitters relayed the
proceedings to listeners in foreign countries.
New Offering of 90-Day Treasury Bills to Amount of
$75,000,000 or Thereabouts.
A new offering of 90-day Treasury bills, to the amount
of $75,000,000 or thereabouts, was announced on July 6
by Secretary of the Treasury Mills. They will replace
a maturing issue of $76,200,000. The new bills will be dated
July 13 1932 and will mature Oct. 11 1932. Tenders for
the same will be received at the Federal Reserve banks,
or their branches, up to 2' p. m. Eastern standard time, on
Monday, July 11. The bills are sold on a discount basis
to the highest bidders, and the face amount is paid on the
maturity date without interest. Secretary Mills announcement also says in part:
They will be issued in bearer form only, and in amounts or denominations of $1,000. $10,000, $100,000. $500,000, and $1,000,000 (maturity
value).
No tender for an amount less than $1,000 will be considered. Each
tender must be in multiples of $1.000. The price offered must be expressed
on the basis of 100, with not more than three decimal places, e.g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a
deposit of 10% of the face amount of Treasury bills applied for, unless the
tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from
all taxation, except estate and inheritance taxes. No loss from the sale
or other disposition of the Treasury bills shall be allowed as a deduction,
or otherwise recognized, for the purposes of any tax now or hereafter imposed by the United States or any of its possessions.
It is stated that bill maturities in July, August and
September amount to $615,632,000.
Gardner Cowles Sr. Sworn In as Director of
Reconstruction Finance Corporation.
Gardner Cowles Sr. was sworn in on July 5 as a director
of the Reconstruction Finance Corporation. Before taking
the oath, he paid a call of respect on President Hoover.
The action of the Senate in confirming Mr. Cowles' nomination was noted in our issue of July 2, page 63.
Deficit of $2,885,000,000 Shown by U. S. Government
at End of Fiscal Year, According to Secretary Mills
--Compares with $903,000,000 at Close of Previous
Fiscal Year.
The United States Government closed its fiscal year June
30 1932 with a deficit of $2,885,000,000, compared with
$903,000,000 at the end of the previous fiscal year, according to a statement issued July 1 by Secretary of the Treasury
Mills. Total receipts for the year just ended amounted to
$2,121,000,000, a decline, says Secretary Mills, of $1,196,000,000 from 1931. The expenditures during the latest
year aggregated $5,006,000,000—$786,000,000 greater than
the previous year. At the outset of his statement Secretary
Mills observes that "the Federal finances for the fiscal year
just closed reflect the effect of the unprecedented depression upon both the revenues and the outlays of the Government."
The deficit for 1932 was $762,000,000 larger than the
estimate of $2,123,000,000 which was presented in the
annual report of the Secretary. Secretary Mills also says:
Expenditures exceeded the estimate of $4,482,000,000 by $524,000,000
as a result of subsequent authorization by Congress for the purchase of
capital stock of the Reconstruction Finance Corporation and Federal Land
Banks, which together aggregated $625,000,000.
Expenditures exclusive of these two items were $101,000,000 less than
estimated. Total ordinary receipts were $238.000,000 less than estimated,
due to the fact that business did not maintain the expected level of activity.
Mr. Mills said that in considering the heavy deficits of
the last two years, aggregating $3,788,000,000, it must not
be forgotten that the aggregate surplus from the preceding
years applied to the reduction of the National debt was
$3,460,000,000.
According to Mr. Mills, public debt retirements to meet
sinking fund requirements chargeable against ordinary
receipts total $412,000,000, so that the deficit, exclusive of
debt retirement, amounted to $2,473,000,000. The total
gross debt outstanding June 30 1932 at $19,487,000,000
was increased by $2,686,000,000 during the year. Mr.
Mills's statement follows:
The Federal finances for the fiscal year just closed reflect the effect of the
unprecedented depression upon both the revenues and the outlays of the
Government. A reduction in Federal revenues during the fiscal year 1932
and an increase in expenditures, due to emergency measures, resulted in a
deficit of $2,885.000.000, as compared with a deficit of $903,000,000 for
1931.
Retirements of United States obligations to meet sinking fund requirements chargeable against ordinary receipts totaled $412,000,000, so that
the deficit, exclusive of debt retirement, amounted to $2,473,000.000. The
total gross debt outstanding was increased by 82.686,000,000.
Total receipts amounted to $2,121,000,000, which represents a decline of
81.196.000,000 from 1931.
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Financial Chronicle
Expenditures chargeable against ordinary receipts aggregated $5,006,000.000 and were $786.000,000 larger than for the previous year. The
Increase may be accounted for by the following items: Expanded governmental construction activities and payments under the Settlement of War
Claims Act, the postal deficiency, and payment for the capital stock of the
Reconstruction Finance Corporation and the Federal Land Banks.
The deficit for the fiscal year 1932 was $762,000,000 larger than the
estimate of $2,123,000,000, which was presented in the annual report of
the Secretary.
Expenditures exceeded the estimate of $4,482,000,000 by $524,000.000
as a result of subsequent authorizations by Congress for the purchase of
capital stock of the Reconstruction Finance Corporation and Federal Land
Banks, together aggregating $625,000,000.
Expenditures exclusive of these items were $101.000,000 less than
estimated.
Total ordinary receipts were $238.000,000 less than estimated, due to the
fact that business did not maintain the anticipated level of activity.
Receipts.
The aggregate amount of customs and internal revenue receipts during
the year was $1,888.000.000. or $919,000,000 less than for 1931.
Income tax receipts totaled 31,057,000,000, which was $803.000.000 less
than during the fiscal year 1931, and $83,000,000 less than the estimate of
$1,140,000,000.
Receipts from customs duties were $328,000.000 as compared with
$378,000.000 in 1931, a decline of $50.000.000. The decline is to be accounted for primarily by a further reduction in the volume and value of
Imports.
For the ten months ended April 1932, the value of dutiable imports fell
off 19%. and of non-dutiable. 30%, as compared with a like period in the
fiscal year 1931. The estimate indicated receipts of $410,000,000 from this
source.
Miscellaneous internal revenue receipts totaled $503,000.000. or $66.000,000 less than for 1931 and $41,000.000 less than estimated. Reports
through May indicate that tobacco tax receipts, which account for over 79%
of the total, were $42.000,000 smaller than in 1931; documentary stamp
taxes declined about $14.000.000. primarily as a result of smaller receipts
from taxes on capital stock transfers and on capital issues.
Miscellaneous receipts other than internal revenue amounted to $233,000.000 and were $276.000.000 less than in 1931. This decline was due
chiefly to the postponement of the payments due from foreign governments
during the fiscal year 1932 in the amount of about $252.000.000. The
numerous smaller items included under this head yielded a diminished
revenue.
Expenditures.
Total expenditures chargeable against ordinary receipts were $5.006.000.000. as compared with $4,220,000,000 for 1931, an increase of $786,000.000.
The preliminary information now available concerning the details of
expenditures for 1932 shows the following principal items of increase:
For the Reconstruction Finance Corporation, $500.000,000 for capital
stock; for the Federal Land Banks, $125.000.000 for additional capital
stock;for the Treasury Department,an increase of$83,000,000. representing
payments on account of the awards of the War Claims Arbiter under the
Settlements of War Claims Act of 1928. and construction activities in
connection with the public building program;for the Department of Agriculture an increase of $22.000.000, reflecting largely additional outlays for
Federal aid highway construction; an increase of $57,000,000 in the postal
deficiency, in consequence of reduced postal revenues; an increase of
$79.000.000 in the Veterans Administration as a result largely of liberalized
provisions for military and naval compensation and insurance to war
veterans; an increase of $20,000.000 for Interior Department, principally
on account of the Boulder Dam project; an increase of $18.000,000 for the
Shipping Board on account of construction loans; an increase in tax refunds
of $10.000.000 and an increase of $8,000,000 for Department of Justice on
account of penal institutions.
The more important reductions in expenditures for 1932, as compared
with the previous fiscal year. Include a decrease of $9,000,000 for the Commerce Department, due to the fact that the census was practically completed
in 1931; a decrease of $54.000.000 in the net advances under the Agricultural Marketing Act; a decrease of $10,000,000 for the War Department;
a decrease of $12,000.000 of interest on the public debt; and a reduction in
debt retirements chargeable against ordinary receipts, due to the fact that
there were no foreign repayments to apply to debt retirement.
Leaving out the extraordinary items above mentioned, such as Reconstruction Finance Corporation and Federal Land Banks, ordinary expenditures were 3101.000.000 less than estimated.
Exclusive of expenditures resulting from legislation enacted after the
submission of the budget, the deficit is thus $137,000,000 more than was
estimated.
Public Debt.
The fiscal year 1932 closed with the total gross public debt at $19,487,000,000, as compared with $16.801,000,000 on June 30 1931, or an increase
of $2,686.000.000. The net balance in the general fund was $417.000.000
on June 30 1932. or $55,000,000 less than at the end of the preceding fiscal
year.
Public debt retirements of $4412,000,000 were made from the sinking fund
as required bylaw. This reduction was more than offset by new borrowings.
The average annual rate of interest on the outstanding interest-bearing
debt on June 30 1932 was 3.50%,as compared with an average rate of 3.56%
on June 30 1931. Total interest payments during the year were $599.000,000.
as compared with 3611,000.000 for the year 1931.
General.
In considering the record of the fiscal year just closed, and more particularly the heavy deficits of the last two years, it must not be forgotten
that, while these combined deficits aggregate $3,788,000,000, the aggregate
surplus from the preceding years applied to the reduction of our national
debt was 33,460.000,000.
We have,in effect, been drawing on what might fairly be termed a reserve
previously set up.
Moreover, the expenditures of the last two years include items such as
advances to the Federal Farm Board, payments for the stock of the Federal
Land Banks and for the stock of the Reconstruction Finance Corporation.
These will, in large measure, be repaid into the general fund, to be available
either for current expenditures or debt retirement.
And, finally. the considerable reduction in expenditures and the enactconstitute
ment of so sweeping a tax measure as the Revenue Act of 1932
real achievements in putting our financial house in order.
While much remains lobe done in reducing the cost of government, under
confident
I
the pressure of an enlightened and aroused public opinion, am
this movement will go forward.
continued
is
for
need
there
but
Important progress has been made.
prudence and self-restraint in the conduct of our public finances.
July 9 1932
President Hoover Vetoes Bill Providing for Minimum
Wage Scale on Government Buildings.
President Hoover on July 5 returned to the Senate without
his approval a bill providing for the payment by the Federal
Government of the prevailing wage scale for laborers and
mechanics employed by contractors on public buildings.
Under the bill the Secretary of Labor would be called upon
to determine the prevailing wage rate for any locality where
Government construction is undertaken, for insertion in
advertised specifications for the contracts. The "United
States Daily" of July 6 further observed:
The bill vetoed was designed to amend the existing prevailing wage law
applicable to construction of public buildings, which, although it made
mandatory Payment of not less than the wage prevailing in the community
where the building was located, permitted adjustment of wage disputes
by negotiation.
In his veto message President Hoover said:
To the Senate: I return herewith without approval Senate bill 3847 "An
Act to amend the Act approved March 3 1931, relating to the rate of wages
for laborers and mechanics employed by contractors and subcontractors
on public buildings."
I attacn hereto a memorandum from the Secretary of Labor setting out
in detail the reasons for this action.
HERBERT HOOVER
The White House, July 11932.
Memorandum Upon Senate Bill 3847.
The bill should not be approved. It is obscure and complex, and would
be impracticable of administration. It would stretch a new bureaucracy
across the country.
The bill is an amendatory substitute for the existing Act of March 3
1931, which is a clear and sufficient law. That law has been clarified and
reinforced by an Executive Order issued last January requiring certain
stipulations in public contracts to make effective the manifest purpose of
the statute. The law during its brief existence has worked with beneficial
and generally satisfactory results, and, without increase in personnel or
appropriation, is being administered so as to accomplish substantially the
ends sought by this legislation, without the many objectionable features
which it would entail.
The existing law of March 3 1931,should not be scrapped for this proposed
amendatory bill with its complexities and obscurities, the results of which
could only be dissatisfaction, endless controversy in enforcement, and
great increase in expense to the taxpayer.
The present law consists of two fundamental provisions. The first is
that all contracts on the part of the United States or the District of Columbia
for the construction, alteration, or repair of public buildings in excess of
$5.000 shall contain a stipulation that laborers and mechanics employed on
such work shall be paid not less than the prevailing rate of wages for work
of a similar nature in the city, town, village or other civil subdivision of the
State in which the public buildings are located,or in the District of Columbia
If the public buildings are located there.
The second provision is that every such contract shall contain a further
stipulation that in case any dispute arises as to what are the prevailing rates
of wages whicn cannot be adjusted by the contracting officer the matter
shall be referred to toe Secretary of Labor for determination and that his
decision thereon shall be conclusive on all parties to the contract.
It does not require a determination of the rate of wages by any Government official before the contract is let, or even afterwards unless a dispute
arises over the prevailing rate of wages in the locality. Such disputes requiring decision by the Secretary of Labor under the present law have been
comparatively few because in a majority of the cases presented prevailing
rates of wages as required by that law and agreeable to the contractor, the
laborers and mechanics in the locality and to the contracting officer, have
been arrived at in the practical way of negotiation and conciliation without the necessity of formal decisions.
This new amendatory proposal introduces a complication into the law
by requiring that the advertised specifications for every such contract
shall contain a provision stating the prevailing rate of wages in the city,
town, village, or other civil subdivision of the State or the District of Columbia. as determined by the Secretary of Labor. An enormous amount of preinvestigation would be necessary by representatives of the Department of
Labor before the letting of each contract within the terms of the Act in
excess of $5,000. For. unless the fixing of toe rate of wages be based upon
a thorough personal investigation in the locality, the rate stated in the
advertised specifications would only provoke dissatisfaction and controversy.
Not only would the government be put to great expense, but there would
be cost and inconvenience to the contractors and to the employees remote
from Washington to be represented personally before the Secretary of
Labor at Washington for the consideration of their cases, all of Which the
government would ultimately have to pay for in the contract price. Otherwise, Investigations by competent representatives of the Secretary of Labor,
at great expense to the government, would have to be made in the locality
in advance of the letting of every contract within the terms of this amendatory proposal.
A large increase in the personnel of the Department of Labor would be
necessary to deal with matters which experience under the present law has
demonstrated in most cases do not arise, and when they do arise can generally be adjusted through negotiation and conciliation to the satisfaction of
all concerned. The policy of the present law is more practicable in requiring
the investigation by decision by the Secretary of Labor in cases only where a
dispute arises after the contract is let that cannot be settled by the contracting officer. For that reason a more flu rough investigation and careful
consideration can be given by the Secretary of Labor and his staff in the
comparatively few disputes reaching him for decision.
The present law applies only to public buildings and hence requires
consideration only for the rates in the locality of the building work, but the
amendatory proposal applies also to public works and that would involve
rates varying from one locality or State to another for the same work, as,
for instance, in levee work on the Mississippi or road building in National
parks or Government reservations.
Under the present law the rate of wages is that for "all laborers and
mechanics" employed under contracts within the law, but the amendatory
proposal requires the determination of the rate of wages for the "various
grades of mechanics and laborers," clearly indicating that the rate is to be
determined not only for the different trades, as bricklayers and carpenters,
but for the different grades of such workers within each trade, which would
require an official determination of the comparative efficiency of individual
workers employed on the work by the contractor or sub-contractor.
The amendatory proposal provides for fixed monetary penalties and
de uctions to be imposed upon the contractor for violations, thus excluding
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Financial Chronicle
the idea that he may be otherwise penalized. The present law affords superior protection by leaving the matter of breach of its stipulations to
be treated like a breach of any other stipulation of the contract.
For that reason all consequences of a breach to the laborers and mechanics, to the government, and to the contractor or sub-contractor, may
be taken into account in determining whether the contract should be
abrogated or what other measure should be taken by the government.
The amendatory proposal introduces a further new provision declaring
that when any of the departments or independent establishments of the
United States. including the District of Columbia, performs work "by
Government plant and hired labor" which could have been performed
under contract, but not including work in arsenals or navy yards, or work
performed by the Panama Canal, such departments and establishments.
including the District of Columbia, shall also pay not less than the prevailing rate of wages as established by the Secretary of Labor at the time
the work is undertaken.
This not only requires the Secretary of Labor to determine in such cases
the prevailing rate of wages, but necessarily also to determine whether the
work is such as could be done by contract: and there is no provision as to
the method of determining such facts or for any method for enforcing the
findings of the Secretary of Labor. This new provision is obscure in many
respects.
For instance, it does not state any locality for use in determining the
prevailing rate of wages for the purposes of this provision or whether it is
subject to the 55,000 minimum limitation stated in another section of the
bill relating to public works. Further, as to what is meant by "work"
and whether "hired labor" would include permanent employees paid by
the day or month at rates fixed according to other laws.
Also, whether the provision applies only to work that is being done both
in a Government plant and by hired labor or applies to either situation.
A further obscurity is whether the provision is to apply when the work is
done by Government plant and hired labor but is let out to be done under
contract.
The whole design of the new amendatory proposal requires an expansion
of bureaucratic control over activities which now function effectively with
the minimum of interference by the Government and that only when dispute arises.
W. N. DOAK, Secretary of Labor.
June 30 1932.
President Hoover in Message to Congress Asks Appropriation of $120,000 to Continue Work of Unemployment Relief Organization Under Direction
of W. S. Gifford.
In a message to Congress on July 5 President Hoover
asked for an appropriation of $120,000 to continue the
activities of the President's Organization on Unemployment,
of which Walter S. Gifford is Director. The President
pointed out that Congress omitted an appropriation for the
Unemployment Organization in the second deficiency bill
recently enacted. Should no appropriation be given, Mr.
Hoover said, "there would be grave danger of national,
State and local volunteer groups concluding that services
such as they have rendered were no longer necessary." The
President's message follows:
The second deficinecy bill just passed omitted an appropriation for continuanace of the activities of the President's Organization on Unemployment
Relief. I urgently request that Congress make a special appropriation of
3120,000 to continue this work over the next fiscal year.
This organization, of which Mr. Walter S. Gifford is director, is comprised of leading men and women throughout every State in the Union and
has served to establish and co-ordinate State and local volunteer effort in
relief of distress throughout the nation. The organization has secured in a
large way the co-operation of industry and labor, of the national social
welfare organizations and has assisted in mobilizing a large amount of
voluntary funds and administering local resources to the best advantage.
This organization is the only agency for national co-ordination and stimulation for the multitude of voluntary efforts and a clearing to these thousands
of organizations with suggestions and methods for the alleviation of unemployment distress.
Should this organization be discontinued, not only would its important
functions of stimulation of private giving and co-ordination be destroyed,
but there would be grave danger of national, State and local volunteer
groups concluding that services such as they have rendered were no longer
necessary.
Voluntary effort among our people is of far more importance both morally
and financially than the direct aid of local or other governmental agencies.
To demobilize this organization might easily create widespread confusion
and bring great har !ships when the need is greatest.
It is obviously of the utmost importance that no action be taken which
shall in any way diminish voluntary efforts which combine the intimate
knowledge of local conditions with the sense of responsibility toward fellow
citizens and neighbors in distress. Continuance of this organization with
Its background of experieince is, in my opinion, most essential to the intelligent carrying out of the provisions of all relief activities whether private
or public.
The organization is made up primarily of volunteers serving without
pay or expense. It is non-partisan and representative or various economic
and social groups. To function successfully it must have funds to employ
a relatively small number of trained personnel, together with necessary
office help.
The appropriation requested for continuance of this organization is
Infinitesimal in its ratio to the large resources which are put at the command
of those in distress and thus also relieves burdens upon municipalities,
States and the Federal Government.
House Passes Garner-Wagner Unemployment Relief
Bill as Agreed to In Conference—Involves Total of
$2,122,000,000, of Which $1,500,000,000 Represents
Addition to Borrowing Power of Reconstruction
Finance Corporation.
The $2,122,000,000 Garner-Wagner unemployment relief
bill, as agreed on in conference, was passed by the House
on July 7 by a vote of 202 to 157. According to the Washington account July 7 to the New New York "Herald
223
Tribune"itheIrconferenceireportiwent through the House
following a noisy three-hour debate which afforded no opportunity to change the bill in line with President Hoover's
recommendations. The same account stated:
With the bill already symbolizing a major political issue, the proposa
before the House was to vote it up or down, and with party lines drawn
fairly tight 166 Democrats led 35 Republicans and 1 Farmer-Laborite
to accept the proposal one provision of which, the President has said, will
put the Government in the pawn-broking business and another endanger
the balanced budget. Only two Democrats. Representatives John H. Morehead, of Nebraska, and Michael K. Rielly, of Wisconsin, voted with 155
Republicans against the report and the bill as it stood.
Senate May Vote To-Day.
The measure went to the Senate to-night with the issue squarely drawn
bqween the President and Speaker John N. Garner, now acknowledged
leader of the Democrats in Congress, as the result of his success in forcing the
bill through conference with his program incorporated to "take the bridle
off" loans to be made by the Reconstruction Finance Corporation and
Open its proposed $3.500,000.000 resources to "any person" who can tornish adequate security.
As to the provisions of the bill we quote as follows from
the same account:
Briefly, the measure, as approved by the House to-day, provides for Reconstruction Finance Corporation loans of 5300.000.000 to States and cities
on application of Governors stating that relief needs necessitate aid; for
5120.000,000 for road loans to States; for $202.000.000 authorized public
works when the Treasury Department considers financing possible, and
for an addition of $1,500,000,000 to the borrowing power of the Finance
Corporation.
Late yesterday (July 8)it was stated that Speaker Garner
and Senate Democrats failed to agree at a conference on
the $2,122,000,000 unemployment relief bill. The Associated
Press (July 8) said:
A committee of Senate Democrats conferred with Mr. Garner for almost
two hours to work out an agreement on the relief bill, but the Speaker
insisted that his provision for loans to individuals should stay in the bill
in the face of opposition from President Hoover.
Senators who conferred with Mr. Garner said he was not convinced
that President Hoover would veto the bill in its present form.
The compromise measure represents an adjustment of
the differences between the Garner bill passed June 7 by
the House, as noted in our issue of June 11, page 4257,
and the Wagner bill passde by the &ante on June 23, to
which reference was made in these columns June 25, page
4596. The compromise bill was approved on July 5 by the
House and Senate conferees. All of the conferees signed the
bill except Representative Treadway (Rep., Mass.), a strong
Administratian supporter. Reporting that conflict between
the nesident and Congress over provisions of the bill,
thought in most quarters to have ended with recession by
House and Senate conferees on importatn matters at issue,
developed at a hurriedly called White House conference at
night July 5, the Washington correspondent of the New
York "Journal of Commerce" on that date said:
Present were House and Senate leaders, Democratic and Republican,
and in addition Secretary of the Treasury Mills, Governor Meyer of the
Federal Reserve Board and Directors Jones and McCarthy of the Reconstruction Finance Corporation, under whose administration the major
portions of allotted funds were to be distributed and loaned.
Session Lasts Two Hours.
After a session of more than two hours ... the 20 guests issued from
the Executive offices and announced that a Congressional subcommittee
would meet with the Executive to-morrow morning to try to effect a compromise, and that meantime the conference report would be brought up
in the House.
Regarding the conference a statement given out at the
White House July 5 said:
At a conference with leaders of the Senate and House the President
stated his objections to the form of the relief bill as it now stands. There
was general discussion of these objections and a general disposition to
meet them and to reach a compromise agreement acceptable to all. In
an effort to arrive at a definite conclusion it was agreed that a subcommittee
should meet with the President to-morrow morning at nine o'clock.
In the House on July 6 Speaker Garner stated (we quote
from Associated Press dispatches) that he would fight to
the end against President Hoover's views on reflief legislation. The dispatches continued:
Mr. Garner took the floor amid cheers from the Democratic side to
recite the events occurring at the White House conferences on relief. Prolonged conferences between Congressional leaders and the Chief Fxecutive
nad failed to break a deadlock on the legislation which is holding up adjourment of Congress.
"It hasn't becn customary since I've been a member of Congress for the
President to call members to the White House to discuss legislation agreed
on in conference," Mr. Garner began.
"However,I do think it was proper for members to accept that invitation.
"It's not the best custom. I do not think it is quite in keeping with the
Constitution," he added.
The reference was to an invitation extended by President Hoover yesterday for Congressional leaders to confer witn him at the White House on
the relief legislation. The Chief Executive was understood to be ready to
veto it in its present form.
At the White House conference to-day, which was called to work out a
compromise on the $2,122,000,000 relief bill, President Hoover demanded
that a provision for loans to individuals be eliminated, but Speaker Garner
and his colleague: refused to yield.
The outcome of th3 conference virtually put an eV t hopes for an
agreement between the President and Congress and made it likely that
Congress would pass a bill that Mr. Hoover will veto.
Financial Chronicle
224
Mr. Garner said Mr. Hoover desired a "select clientele" for the Reconstruction Finance Corporation and not all of the citizens, as desired by the
Democrats.
About the same time, Secretary Mills charged that Mr. Garner blocked
any hope of an agreement by insisting that the bill provide for loans to
Individuals.
Otner controversies in the gigantic bill were ironed out at the two-hour
conference, in which three Senate leaders met with the President, Governor
Meyer of the Federal Reserve Board, Secretary Mills and the House
delegation.
Agree on Need as Basis.
It was agreed that the $30,000,000 emergency relief fund for loans to
States should be allocated on the basis of need as the President wanted,
with a limitation of 15% on the amount that any one State should receive.
It was also provided that municipalities could borrow through State
Governors.
A compromise on the controversial public works section also was worked
out. The President wanted this eliminated entirely, but finally agreed to
leave in the bill $132,000,000 for highway funds and the remainder of the
$322,000,000 program with the stipulation that the Secretary of the Treasury
would determine whether the fiscal situation of the Government warranted
the expenditures.
As to the action taken by the conferees on July 6, the
New York "Times" reported:
Conferees Cling to Provision.
House and Senate conferees at an afternoon meeting rewrote two of
the three sections of the relief bill to harmonize them witn the President's
demands, but refused to budge on the point in controversy in face of the
warning of a Presidential veto.
The President, in a conference with Speaker Garner and Senators and
Representatives at the White House this morning, following a similar
session last nignt, had attempted vainly to reach an acceptable compromise.
When the Speaker afterward made his speech on the floor of the House
Representative Snell precipitated a heated political debate by terming
Mr. Garner's talk "demagoguery."
President Hoover and Senate Democrats had advocated the establishment of a fund of $1,500,000,000 in the Reconstruction Finance Corporation from which loans would be made for self-liquidating projects,
and the Wagner Senate bill provided authorization to carry out that plan.
The demands of the House to make the money available for loans on a
broader basis prevailed, however, when the conferees started to harmonize
the Senate and House bills, and President Hoover thereupon took an
active hand in the shaping of the bill. This action by Mr. Hoover also
drew the fire of Speaker Garner.
On July 6 President Hoover issued a statement bearing on
the conferences held July 5 and 6 with the House and Senate
conferees, in which he expressed regret that the endeavor
"to arrive at a basis of a workable relief bill did not succeed."
The President indicated that the conflicting views would
have been harmonized had it not been for the insistence
of Speaker Garner that the Reconstruction Finance Corporation "shall also make loans to any individual, any private
corporation, any partnership, any State or municipality on
any conceivable kind of security and for any conceivable
purpose." The statement of President Hoover, which we
give in full elsewhere in these columns, contained the
following assertion:
The fatal difficulty is the Speaker's insistence upon provision that
loans should also be made to individuals, private corporations, partnerships, State and municipalities on any conceivable security and for every
purpose. Such an undertaking by the United States Government makes
the Reconstruction Corporation the most gigantic banking and pawnbroking business in all history.
President Hoover's Statement Citing Objections to
Proposal in Unemployment Relief Bill Insisted
Upon by Speaker Garner that Loans by Reconstruction Finance Corporation Be Made to
Individuals, States or Municipalities, &c.
In a statement issued July 6 President Hoover voiced his
regret at the failure of conferences he had had, on July 5
and 6, with leaders of the Senate and the House to effect
an adjustment of objections raised by the President to the
$2,100,000,000 unemployment relief bill. The President
stated that agreement had been blocked by the insistence
of Speaker Garner that the provision governing loans by
the Reconstruction Finance Corporation be made to include
"loans to any individual, any private corporation, any
partnership, any State or any municipality on any conceivable kind of security and for any conceivable purpose."
In his statement President Hoover said:
The Speaker's proposal in no sense contributes to relieve such distress.
It would compel the Reconstruction Corporation to attempt to deal with
millions of people In terms of hundreds of thousands of small and large loans.
It would result in dumping a vast amount of doubtful private and corporation debts on the Federal Treasury to no National purpose of relieving
unemployment. . . .
I wish to emphasize what it means. Such a proposal means that the
Reconstruction Finance Corporation is to take over an impossible task and
most difficult part of the banking business, that is, to deal with the doubtful
credits in the whole United States.
In conclusion the President stated:
While I am determined that there shall be relief legislation at this session
of Congress, I cannot accept the proposal up to now insisted upon by
Speaker Garner as a condition to securing his support. for I do not propose
to further increase unemployment by such disastrous action as is now
proposed through jeopardizing the whole credit of the government and
laying our people open to every kind of injustice and loss.
July 9 1932
• Elsewhere we refer to the Congressional action taken on
the bill. President Hoover's statement of July 6 follows
in full:
I regret that the conferences in endeavor to arrive at a basis of a workable
relief bill did not succeed. It is all the more regrettable, since the deliberations this morning made it clear that it was possible to harmonize conflicting views and so reach an agreement, were it not for the insistence of the
Speaker on one point.
The bill, as reported by the conferees, provides:
First, provision for expanding the borrowing authority of the Reconstruction Corporation by $1,500,000,000,to be used for temporary financing
of self-liquidating construction projects of public and semi-public character
to increase employment.
Second, Speaker Garner insists that the Corporation shall also make
loans to any individual, any private corporation, any partnership, any
State, or any municipality on any conceivable kind of security and for any
conceivable purpose.
Third, provision of a fund by the Reconstruction Corporation of $100,000,000 for the President, to be disposed of either as charity or as loans,
and one of $200,000.000 to be loaned to State Governments who are unable
to finance themselves to care for distress, but such loans to be apportioned
amongst the States on a per capita basis of population.
Fourth, 8322,000,000 of additional public works beyond the $500,000,000
of construction work now provided for in the budget.
As to the first provision, the Reconstruction Corporation authority to
make loans to-day is practically limited to institutions under State and
Federal regulation, that is—banks, savings banks, building and loan
associations, agricultural credit corporations and railways. It is serving
to protect the credit structure of the nation whose collapse would mean
the complete disaster to all and the savings of all the people that directly
or indirectly are in the safekeeping of the great fiduciary institutions,
savings banks, insurance companies, building and loan associations.
That is, the whole people.
The provision to finance $1,500,000,000 self-liquidating construction
projects for relief of unemployment comprised part of the proposals I had
already made to the Congress.
The fatal difficulty is the Speaker's insistence upon provision that loans
should also be made to individuals, private corporations, partnerships,
States and municipalities on any conceivable security and for every purpose.
Such an undertaking by the United States Government makes the Reconstruction Corporation the most gigantic banking and pawn-broking business
in all history
There are 48 States and 16.000 municipalities who could under its terms
dump their responsibilities upon the Federal Government. The purpose to
take care of unemployment distress in such centres is provided for in the
proposals of employment and loans to the States..
Speaker Garner's Proposal.
The Speaker's proposal in no sense contributes to relieve such distress.
It would compel the Reconstruction Corporation to attempt to deal with
millions of people in terms of hundreds of thousands of small and large
loans. It would result in dumping a vast amount of doubtful private and
corporation debts on the Federal treasury to no National purpose of relieving
unemployment.
It would require the extension of branch offices in every town and county
in the United States and set up a huge bureaucracy able to dictate the
welfare of millions of people and at the will of its agents deal favor and
disaster amongst them. No group of seven men can so organize as not to
discriminate unfairly between competitive enterprises. There is no body of
men who could physically administer such a gigantic project.
The board of the Reconstruction Corporation, except one absent member.
informs me unanimously that the making of loans to individuals is totally
unworkable. It would undermine Federal credit and bring a vast increase
in unemployment.
I wish to emphasize what it means. Such a proposal means that the
Reconstruction Finance Corporation is to take over an impossible task and
most difficult part of toe banking business that is to deal with the doubtful
credits in the whole United States. To carry out such a purpose it would
be necessary, as I have said, for the board of seven men to set up branch
banks in practically every community and to direct their operations from
Washington. It would be dependent upon men in these thousand branches.
The task of organization and of finding competent personnel would not
be a matter of months, but of years. From an organization and administrative standpoint, it is self-evident that the proposal is impossible of execution, and huge losses and great scandals must inevitably result from any
attempt to do so.
Any attempt to carry out such a law under these circumstances must
mean the squandering of hundreds of millions of dollars of public funds.
The board would be flooded with hundreds of thousands of applications.
There would be serious interference, if not a complete breakdown, of the
vital activities it is now carrying on under high pressure. And there will
be disappointed on the part of hundreds and thousands of individuals and
thousands of businesses who will have been led to believe that the credit
of the United States Government was made available for their individual
purposes. There will be inevitable discriminations. The organization
would be subject to predatory corporations and interests everywhere.
Aside from the utter impracticability of the proposal, no funds, or totally
inadequate funds, are provided for the making of these loans. The bill as
it came from the Senate provided for increasing the authority of the Reconstruction Finance Corporation to borrow by $1,500,000,000 for certain
self-liquidating construction projects enumerated in the bill. Presumably
the Senate did not provide more than it thought was necessary for these
purposes.
Not one penny is to be added for the making of these individual, private,
corporation and public loans. In other words, the Reconstruction Corporation is to be charged with a duty which is impossible to carry out in practice,
and it is to be furnished with no additional funds with which to make the
loans, unless the Senate unemployment projects are to be abandoned.
Some concepticin of the credit needs of the prople of the United States
may be had from the following figures:
Total bank loans on Dec.31 last aggregated over $31,600,000. This does
not take into consideration loans made by insurance companies running into
the billions, loans made by savings banks, mortgage companies, building
and loan associations amounting of $9,000,000,000, or the funded debt of
corporations running into further billions.
To hold out the hope to the people of the United States that the United
States Government is prepared to take care of their credit needs with the
ridiculously small sum provided, or the impossible organization urged, must
be condemned, in addition to every other reason, as a deception. Furthermore, the statement of the Speaker that the board can determine if it
should enter upon such loans is a shifting of responsibility from the Congress
to the board, which is itself misleading the hopes of the people.
Under the provisions of the bill as it came from the Senate, the funds
available to the Reconstruction Finance Corporation were Increased from
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Financial Chronicle
$2,000,000,000 to $3,800,000,000. Of thisl the ircorporation must
borrow $3,300,000,000. The corporation can only borrow such a sum
because its debentures are guaranteed by the United States, or, in other
words, because the credit of the United States is pledged to secure its
obligations.
To sell any such vast amount of securities at a time like this is a difficult
enough task, strong as is the credit of the United States Government.
But it can only be done, and done without danger to breakdown of the
credit of the Government, if the purposes for which the funds are to be
used are economically sound and if the loans be made under such safeguards
that they will be repaid, in order that the transactions will not,constitute
a charge on the general fund of the Treasury and the taxpayers. But if
these funds are to be squandered by the making of loans for every conceivable purpose, with inadequate safeguards, it will at once become evident
that the credit of the Government is being misused.
We have sought during these difficult times to maintain as a pillar
of unassailable strength the credit of the United States Government.
It is not too much to say that the measure proposed and insisted upon.
even to the extent of defeat of relief legislation, by the Speaker of the
House, threatens the credit of the United States Government and disaster to our people. The proposal violates every sound principle of public
finance and of government.
Objection to Second Proposal.
My objection to the second proposal of placing $100,000,000 at the
disposal of the President was that the Federal Government should not
make direct charitable gifts to individuals and that such responsibility
should not be placed on the President; a further objection is that the
$200,000,000 of loans to States were allocated on a population basis, or
$1.66 per capita. A large part of the States are able to take care of their
own and to finance their relief needs, and probably three-fourths of the
total amount would be unused by such States or alternatively there would
be every pressure upon State officials to demand the money, even though
there was no need.
The funds assignable to States where there is acute need would, when
reduced to the per capita of the people suffering from unemployment in
those acute areas, amount to less than $10 per person for a whole year.
The apparent large sums discussed would raise false hopes, would tend
to destroy charity and undermine local and governmental contributions
to the needy in several times the amount which would be made available.
Furthermore, loans are to be made to States solely on the certificate of
the Governor and administered solely by him. There is no precaution
that the funds are to be administered under the ordinary checks and supervisions of the State Governments or Federal Government. To allocate
such large sums to a public official without restriction or the necessity of
proper accounting and auditing is unheard of.
Further Obtections.
As to the third point, that is, the provisions to spend additional $322,000,000 on public works, my objections were that the cost of these works
ultimately will produce a deficit in the budget by just the amount expended;
that it discards to the winds every effort made to balance the budget.
Many of the works designed are remote from centres of unemployment.
The technicians of the Government state that it would give, during the
year, an average direct employment to less than 100.000 out of a total of
8,000,000 unemployed.
It was, however, possible to reach a fair adjustment of the proposal
as to $300,000,000 loans to the States which may be unable to relieve distress and to protect the Treasury in large measure in the matter of the
$322,000,000 of non-productive public works. We are in agreement in
the provision of temporary loans by the Reconstruction Corporation to
finance $1,500,000,000 of productive construction work for the unemployed.
There is unquestioned need for the passage of legislation to take care of
unemployment and such cases of destitution as the resources of the States
are unable to meet. I have recommended such legislation. While I am
determined that there shall be relief legislation at this session of Congress,•
I cannot accept the proposal up to now insisted upon by Speaker Garner
as a condition to securing his support, for I do not propose to further increase unemployment by such disastrous action as is now proposed through
jeopardizing the whole credit of the Government and laying our people
open to every kind of injustice and loss.
Increased Postage Rates on First-class Matter and
Air Mail Effective July 6—New Assignments of
Post Office Grades.
Postmaster Kiely at New York announced June 30 that,
effective July 6 1932, the postage rates on first-class matter
and air mail would be increased. His notice of June 30 added:
Domestic letters and other first-class matter will be increased to 3 cents
an ounce or fraction of an ounce. There will be no change in the rate on
postal cards, private mailing cars or postcards.
Letters in business reply envelopes will be increased to 3 cents an ounce
or fraction of an ounce plus 1 cent additional for each letter.
pi Domestic air mail will be increased to 8 cents for the first ounce or fraction and 13 cents for each additional ounce or fraction of an ounce (except
to Puerto Rico, Virgin Islands of the United States or the Canal Zone).
Air mail will also be increased to 8 cents for the first ounce or fraction
and 13 cents for each additional ounce or fraction of an 01111C0 for Mexico,
Canada, Newfoundland (including Labrador), Bahamas and Cuba.
For articles mailed in this country for dispatch by air mall to a coast
exchange office for forwarding therefrom by steamship to transpacific or
transatlantic countries. 10 cents for the first ounce or fraction and 15 cents
for each additional ounce or fraction of an ounce.
In announcing June 8 that air mail postage rates would
be increased, effective July 6, to 8 cents for the first ounce,
and 13 cents for each additional ounce, Postmaster-General
Walter F. Brown, according to the "United States Daily,"
said:
At the same time, it was stated orally by Nelson A. Tacy, Superintendent of the Division of Postmasters, that a Nationwide change in
classes of post offices, involving new class assignments to 863 postal stations, will become effective July 1.
The reallocation will be the most general in recent years, Mr. Tacy
explained, because of abnormal decreases in postal revenues at individual
offices. A total of 802 offices will be designated at one class below their
present standing, while 61 will be increased one class.
Automatically accompanying the class changes will be salary reductions
for hundreds of postal employees, and possible discharge of a few in certain
offices, according to an oral statement by Thomas F. Fitch, Assistant
Superintendent of the Division of Post Office Service.
225
New Air Mail Rates.
The announcement relative to air mail rates follows in full text:
"Carrying out his promise when he appeared before the Senate Finance
Committee that if Congress increased the rate on first-class postage to
3 cents an ounce he would increase the air mail rate on the same day.
Postmaster-General Brown announced to-day (June 8), that, effective
July 6 1932, the rates of postage on mail matter carried by airplane will
be 8 cents for the first ounce or fraction and 13 cents for each additional
ounce or fraction.
"When Mr. Brown appeared before the Finance Committee he estimated
that the increased rate on air mail matter would add $3.000,000 to the
revenues of the Department each year. Under the law, the PostmasterGeneral has authority to increase air mail rates whenever he drains it
expedient to do so.
Schedules Beyond Border
"The present domestic air mail rate is 5 cents an ounce or fraction and
10 cents for each additional ounce or fraction. The new rates will be
regardless of distance, except when air mail is to be sent to Puerto Rico,
Virgin Islands of the United States or the Canal Zone, for which the rates
now in force will continue.
"The rate between Puerto Rico or Virgin Islands of the United States
and the United States is 10 cents for each half ounce or fraction and between the United States, Puerto Rico or Virgin Islands of the United
States and the Canal Zone it is 20 cents for each half ounce or fraction.
"There will be no change in the existing air mail rates to Mexico. Central
and South American countries."
The following additional information was made available by Mr. Tacy
and Mr. Fitch, and in Department records:
New assignments will increase 16 offices from second to first class, and
45 from third to second class; and will decrease 74 from first to second
class, 185 from second to third class, and 543 from third to fourth class.
In each first class office there are several employees whose salaries
are determined by revenues at that office; in some cases, the number
exceeds 10. These employees, totaling several hundred (including postmasters, cashiers, assistant mall superintendents, foremen, and in some
instances assistant postmasters and superintendents of mail), all will
suffer salary reductions effective with the class change of the 74 first-class
offices which drop to second class.
In second-class offices the postmasters and occasionally certain supervisory employees are paid proportionately with revenue at the offices.
In third-class offices only the postmasters' salaries are dependent upon
receipts. A total of 728 second and third class offices will be decreased
one step, and salaries will be reduced.
Postmasters and other employees of second and third class offices which
will be advanced one class will receive proportionate salary increases.
The number of increases, however, will be only about 1-15th the total of
decreases.
Congress Adopts Resolution Authorizing Distribution
by American Red Cross of 45,000,000 Bushels of
Wheat and 500,000 Bales of Cotton Held by Federal Board.
Congressional action completed on July 1 on the resolution (H. J. 418) calling for the distribution by the American
National Red Cross of 45,000,000 bushels of wheat and
500,000 bales of cotton owned by the Federal Farm Board.
On July 1 the House adopted the conference report on the
resolution, the Senate having adopted the report the previous
day (June 30). The resolution was sent to conference
following the action of the Senate, on June 24,in authorizing
the use by the Red Cross of 50,000,009 bushels of Farm
Board wheat. The House had previously (on June 16),
authorized the distribution of 40,000,000 bushels of wheat
and 500,000 bales of cotton. The House bill was referred to
in our issue of June 18, page 4416. In conference 45,000,000
bushels of wheat and 500,000 bales of cotton were agreed
upon, and accepted finally by both branches of Congress.
On July 1 the "United States Daily" said:
In presenting the report for approval, Senator McNary (Rep.), of Oregon.
recalled that advices previously received from the Red Cross were to the
effect that new supplies would be needed next winter. He thought it
advisable, therefore, to have the legislative action concluded now to avoid
possible delay in the fall.
Senator Ashurst (Dem.), of Arizona, asked in connection with the Red
Cross activities that it make sure none of the supplies "found their way
into the hands of foreigners." He told the Senate he had received reports
that numerous Mexicans had crossed the international boundary and
obtained wheat and flour from the former stock transferred to the Red
Cross. He hoped, he said, the Red Cross would guard against a repetition
of the circumstances.
On July 6 the Houss passed an indefinite appropriation to
cover the actual expense of carrying out the already authorized distribution of 45,000,000 bushels of wheat and
500,000 bales of cotton. As to this, we quote as follows from
the "United States Daily" of July 7:
The vote was viva voce and the measure now goes to the Senate. The
action of the House followed a conference of James C. Stone. Chairman of
the Federal Farm Board, with the House Committee on Appropriations.
Representative Byrns (Dem.), of Nashville, Tenn., Chairman of the
House Committee on Appropriations, stated orally that while it was
estimated that carrying out of the recently enacted law for distributing
these supplies would cost the Government $45,000,000 or $50,000,000.
there is not any definite sum mentioned in the resolution making the
appropriation because the current market value of wheat and cotton cannot be determined in advance and that the expense will be limited to the
market price the Board, through the Stabilization corporations, has to
pay for the commodity "at their market prices payable at their times of
delivery."
The authorizing law directs the Federal Farm Board to take such action
as may be necessary to deliver to the Ameriean Red Cross, or any other
organization designated by the Red Cross,the amounts of the two commodities mentioned for use in providing food, cloth and wearing apparel for
needy and distressed people and in providing feed for livestock in the
1932 crop failure areas.
226
Financial Chronicle
Monthly Report of Railroad Credit Corporation—
Loans July 1 1932 Totaled $29,589,563.
Loans either actually made or authorized by the Railroad
Credit Corporation to railroads to meet their fixed interest
obligations totaled $29,589,563 on July 1 1932, according
to the monthly report of that Corporation filed with the
Inter-State Commerce Commission and made public on
July 4. Of that amount, $15,938,690 represents loans
actually made, leaving a balance of $13,650,873 to which
the Corporation is committed. The further announcement
of the Corporation July 4 says:
Collection of rate increases under Ex Parte 103, according to the report,
totaled $20,783,249 in the first four months this year, the increase having
become effective on Jan. 4. The amount derived from the increase
amounted to $5,516,655 in April.
The railroads, by the terms of the plan under which the fund is administered, have forty days after the end of each month in which to file with
the Corporation the amount received from rate increases during that month
and they are allowed ten days in which to turn the funds so derived over
to the Corporation.
In a letter transmitting a copy of the monthly report to
the chief executives of the various railroads, E. G.Buckland,
President of the Railroad Credit Corporation, said that the
co-operative spirit existing among the railroads in their
dealings with the Railroad Credit Corporation is a manifestation of the willingness and readiness of the carriers to
assist in the amelioration of the financial conditions. The
letter says:
The increased rates, Constituting the fund to be administered under
the Marshalling and Distributing Plan, 1931, became effective about six
months ago. A brief review may not be out of place.
In Ex Parte 103, the first decision of the Inter-State Commerce Commission denied the 15% increase for which the carriers made application,
or any increase, except to the extent that a fund should be created to give
to needy carriers such help as they might require to meet their fixed interest
obligations. The principal objection on the part of the carriers to the
creation of such a fund was that one carrier might not lawfully give to
another carrier the revenue so obtained.
Representations were made to the Commission that, if granted an increase in rates for that purpose, the railroads could and would arrange for
the proceeds from such increase to be loaned to needy carriers to meet their
fixed interest obligations and to avoid default, upon the terms and conditions outlined in the Marshalling and Distributing Plan. 1931.
The revenues from the increase were thus impressed with a trust, the
administration of which was imposed upon the Railroad Credit Corporation.
Each carrier is entitled to its equitable share of the fund in any partial distribution and final liquidation, but this share may be realized only after
the purposes of the plan have been fully carried out.
The quick and substantially unanimous assent to the plan, the subsequent adherence to its spirit and the fulfillment of its purpose in spite of
decreased revenues and increased requirements, are a tribute to the willingness of the railroads to do their part in the present emergency.
The report for the month follows:
THE RAILROAD CREDIT CORPORATION REPORT TO INTER-STATE
COMMERCE COMMISSION AND PARTICIPATING CARRIERS AS
OF JUNE 30 1932.
Balance
Net Change
Assets—
During June 1932. June 30 1932.
Investment In affiliated companies, loans made.-- $8,717,116.00 $15,938,690.00
Cash
*3,772,932.13
2,691,738.36
Petty cash fund
25.00
Special deposit, reserved for taxes, gm
549,930.33
2.076,284.25
Miscellaneous accounts receivable, due from contributing carriers
17,352.33
20,406.50
Interest receivable
24,935.40
48,417.42
Deferred assets, loans authorized—contra
*1,071,769.68 13,650,873.82
Expense of administration, Dec. 14 1931-June 30
1932 inclusive
12,568.65
67,077.86
Total
$4,477,200.90 $34,493,513.21
Liabilities—
Non-negotiable debt to affiliated companies, reported rate increases under Ex Parte 103
$5,518,655.59 $20,783,249.00
Deferred liabilities, loans authorized—contra
*1,071,769.68 13,650,873.82
Income from funded securities, interest accrued on
loans to carriers
20,162.04
43,773.49
Income from unfunded securities and accounts,
Interest on bank balances, ,Scc
12.152.95
14,416.90
Capital stock
1.200.00
Total
$4,477,200.90 $34,493,513.21
*Decrease.
Since the May 31 report has not heretofore appeared in
these columns, we give it herewith:
THE RAILROAD CREDIT CORPORATION REPORT TO INTER-STATE
COMMERCE COMMISSION AND PARTICIPATING CARRIERS AS
OF MAY 31 1932.
Net Change
Balance
Assets—
During May 1932. May 311932.
Investment In affiliated companies (loans made)---- $3,032,992.00 $7,221,574.00
Cash
2,318,284.17
6,464,870.49
Petty cash fund
25.00
Special deposit (reserved for taxes. &e.)
595,545.59
1,526,353.92
Miscellaneous accounts receivable (due from contributing carriers)
d23,102.42
3,054.17
Interest receivable
16,275.95
23,482.02
Deferred assets (loans authorized—contra)
230,066.00 14,722,643.50
Expense of administration (Dec. 14 1931 to May 31
1932, inclusive)
10,764.99
54,509.21
Total
Chairman Stone of Federal Re erve Board Reports
Stabilization Stocks of Wheat Reduced—Says
Trade Now Has Chance to Raise Prices.
The time has come for the grain trade to make good its
boast that, except for the "black cloud" of Grain Stabilization Corporation stocks of wheat overhanging the market,
wheat prices could be brought back up to a much more
satisfactory level, James C. Stone, Chairman of the Federal
Farm Board, stated orally July 7. We quote from the
"United States Daily" of July 8, from which we also take
the following:
Sales of wheat and legislation for free distribution of the grain to the
needy have now brought the cash wheat supplies of the Corporation available for sale down to slightly less than 30,000,000 bushels, Mr. Stone
said. This comparatively small amount cannot prevent any upward
movement of prices which the grain trade may be able to foster, he added.
He gave the following additional information:
There is ample storage space available for wheat at present as the new
crop begins movement to market. The free movement of wheat, without
congestion and without embargoes which formerly were placed on the
grain when a city's storage space became congested, is one of the results
of the more orderly marketing methods developed under the National
co-operative marketing pollcy.
The reduction of the Farm Board's administrative fund to $800,000
from the $1.880,000 recommended in the budget will restrict severely
the Board's services to co-operatives generally. It will necessitate also a
reduction in personnel of the Board, which is now under consideration
by the members.
George S. Milnor of Grain Stabilization Corporation
Says Sale of 15,000,000 Bushels of Wheat to China
Has Opened Up New Market Potentialities.
The 15,000,000 bushels of American wheat sold to China
by the Grain Stabilization Corporation has opened new
marketing potentialities for farmers here, George S. Milnor,
head of the Corporation, said on July 6, according to Associated Press dispatches from July 6 to the New York
"Evening Post" which also stated:
The sale was arranged on long-term credit and the Corporation and
the
Federal Farm Board, which owned the wheat, were severely criticized
recently before a Congreesional committee on that score and because of
the allegation that China had resold some of it for cash.
In fact Mr. Milner said the wheat was distributed by the Chinese National
Food Relief Commission to starving peasants in exchange for labor on the
dikes and levees of the Yangtze River. It made possible construction or
repair of more than 2,000 miles of flood protection. His information
was
contained in a report by M. S. Briggs, Corporation representative in
Shanghai.
"Contrary to the general belief that the Commission simply dealt out
wheat or flour to starving refugees," Mr. Briggs wrote, "It organized
a
vast army of over a million laborers who are willing to exchange work for
the wheat or flour. All the relief wheat and flour was handled
under
this arrangement.
"What is quite pertinent to us is the fact tnat it is estimated that over
2,000,000 Chinese have been positively converted from rice eaters to wheat
consumers and it is felt that they had been permanently converted,
because I understand these people have learned that they can do more work
over a longer period of time on less wheat than they have been accustomed
to do on a larger quantity of rice.
"The summation of it all is that the Commission has really created
in
the Yangtze Valley a market for waeat and flour and, if some arrangement
can be subsequently worked out whereby this educational process
may
continuo, there certainly are enormous potentialities for the outlet
of
American grain."
From the New York "Journal of Commerce" of July 7
we take the following:
May Appeal to Congress.
Opinion in the independent grain trade here yesterday was that the
Farm Board is again preparing "to dump on a foreign country" and that
while Cnina is as good an outlet as any there is every likelihood that
the
Western grain trade which has already registered complaint against the
tactics of the Board and the Grain Stabilization Corporation in the
Far
East will again appeal to Congress for relief.
In its issue of May 25 the "Journal of Commerce" carried a story on the
China wheat deal as viewed from the angle of the Western grain traders,
members of the Portland Merchants' Exchange. That the Farm
Board
was able only to sell China after ridiculous credit terms had been arranged
Is well known to the trade, as the Portland Exchange points out. While
the Farm Board was dickering with China on the deal, Australia and
Japan were able to increase their sales of cash wneat to China very considerably. In fact, sales of wheat to China during 1931 amounted to
59,607,221 bushels, of whim only the 15,000,000 of Farm Board controlled
wheat had to be sold on long-term credit arrangements. Australia
managed
to dispose of 30,937,391 bushels of cash wheat, Canada of 6,757,425 and
American traders in direct competition with the Farm Board 0,900,000
(against 7,446,170 in the previous year). Japan, it is estimated, sold
10,000,000 bushels cash to China which was Canadian and American In
about equal proportions.
$6,180,828.28 830,016,312.31
Liabilities—
Non-negotiable debt to affiliated companies (rePorted rate Increases under Ex Parte 103)
85,032,353.43 $15,288,593.41
Deferred liabilities (loans authorized—contra)
230,066.00 14,722,643.50
Income from funded securities (interest accrued on
loans to carriers)
18,405.38
23,611.45
Income from unfunded securities and accounts (interest on bank balances, do.)
2,001.47
2,263.95
Capital stock
1,200.00
Total
$8,180,826.28 $30,016,312.31
d Denotes
July 9 1932
Previous reports of the Railroad Credit Corporation were
given in our issues of April 9, page 2648, and May 7, page
3386.
decrease.
Secretary of Agriculture Hyde Declares "V isionary"
Plan of Gov. Roosevelt to Provide Employment for
1,000,000 Men Through Reforestation.
The proposal of Gov. Franklin D. Roosevelt of New York
to aid agriculture and unemployment through reforestation
of unused timber land has drawn from Secretary of Agriculture Arthur M.Hyde a statement in which he says "with
only a reasonable degree of efficiency one man can plant
Volume 135
Financial Chronicle
about one acre, or something near 1,000 trees a day. A
million men, therefore, could plant about one billion trees
a day." "But" Secretary Hyde went on to say, "all the
nurseries in America, whether publicly or privately owned,
do not possess one billion seedling forest trees. . . .
Forestry is a long-time job, but the Governor would have us
believe that by 'economic foresight' he has privately discovered 'immediate employment' for 'a million men' on a
'self-sustaining' basis. The utterly visionary and chimerical character of that discovery is well demonstrated by the
illustration given."
Gov. Roosevelt's proposal was embodied in his speech
at Chicago July 2 accepting the nomination as President
on the Democratic ticket. The speech appears elsewhere in
our issue to-day. Secretary Hyde's statement which was
issued at Washington July 5, after, it is said, he had conferred with President Hoover, follows:
Governor Roosevelt has given us the specifications of one item in his
"new deal." He will employ "a million men" to reforest" abandoned
farms and cut-over lands"—"immediate employment and economic foresight march hand in hand," in this program which, he says, will be "selfsustaining." "The growth of tremendous crops will provide adequate
security" for the issuance of bonds.
This grand project is worthy of the "economic foresight" of the Governor. With only a reasonable degree of efficiency, one man can plant about
one acre, or something near 1,000 trees a day. One million men, therefore, could plant 1,000,000,000 trees in a day. But all the nurseries in
America, whether private or publicly owned, do not possess 1,000,000,000
forest trees. They probably do not possess 200,000,000.
But suppose there were 300,000,000 seedling trees available, a million
men could plant them in about three hours!
Thus "immediate employment and economic foresight," marching hand
in hand a la Roosevelt, would speedily meet an untimely end.
Of course, the Governor may object that this statement is not fair because
forestry means more than mere tree-planting. So it does. Forestry
is a long-time job, but the Governor would have us believe that, by "economic foresight," he has privately discovered "immediate employment"
for "a million men" on a "self-sustaining" basis. The utterly visionary and
chimerical character of that discovery is well demonstrated by the illustration given.
The number of men permanently employed by the United States Forest
Service is 2,800. There are 3,400 others who are employed on a 61x months'
basis. These 6,200 men care for 160,000,000 acres—or about one man to
25.000 acres. On that basis, a million men could care for 25,000.000,000
acres—or twelve times the entire land area of the United States.
The forestry program of New York, of which Governor Roosevelt so
enthusiastically exclaims, "I have done it, and I am doing it to-day,"
calls for reforestation of 1,000,000,000 acres over a period of 15 years at a
cost of $20,000,000. It employs 72 men on a permanent basis, and enough
occasional employees to equal the hours of 207 more permanent employees.
Thus the Governor's enthusiastic "Eureka" reduces itself, as a matter of
permanent employment, to 279 men!
Nobody knows how many acres there are of cut-over, marginal and abandoned lands which lie east of the Mississippi River.
Let us suppose there are 100,000,000 acres of such lands. They would
have to be purchased, titles cleared and encumbrances paid before a tree
could be planted. From one to three years would have to elapse before
seedling trees would be available. In acquiring titles to so vast an area.
counties and large areas would be disorganized, taxation units destroyed,
schools and roads closed. To do it on an emergency basis would throw
more people out of their homes than the New York Governor could employ.
The cost, on the basis of New York's program, would be around $2,000.000,000. The men employed would equal, on the basis of New York's
program, 27,900 permanent employees.
The tremendous crop which the Governor anticipates would be from
25 to 60 years In maturing. In the meantime,the debt would have doubled
or tripled. The oversupply of forest products would have depressed the
market to "nothing flat." This is, in Governor Roosevelt's opinion,
"self-sustaining." This is "adequate security" for bond issue with a vengeance.
I believe in forestry. It has a great economic, social and recreational
value. The United States Department of Agriculture has been a leader in
forestry for over 30 years. I believe in a National policy of land use. It
holds promise of great agricultural and conservational benefits. This
department has studied and advocated such a policy for 15 years.
But they are not emergency programs which can be inflated by balloon
methods. And I do not subscribe to any visionary scheme which, by its
sheer excesses, makes both programs appear ridiculous.
Extension of Federal Loans Through Reconstruction
Finance Corporation to Private Enterprises to
Increase Employment Advocated Before Senate
Banking Committee by Clarence M. Woolley of
American Radiator & Standard Sanitary Corp,
and Sewell L. Avery of United States Gypsum
Corp.—Hearing on Barbour Relief Bill.
The facilities of the Reconstruction Finance Corporation
should be made available, with safeguards, to private enterprises in a position to put men to work, the Senate Banking
and Currency Committee was told June 13 by Clarence M.
Woolley, of New York, Chairman of the Board of the American Radiator & Standard Sanitary Co. According to the
"United States Daily" of June 14, similar contention was
made by Sewell Avery, Chicago, President of Montgomery
Ward & Co., who expressed the belief that since the banking
situation was aided by the Reconstruction Finance Corporation, "with restrictions a similar treatment could be made
in the industrial field." In the Washington account, June 13,
to the New York "Herald Tribune," It was stated that business spokesmen who entered the Senate conferences that
227
day over the general Administration program for Federal
employment and economic relief encountered unyielding
resistance to the proposal that Reconstruction Finance Corporation funds should be lent to private industry. It was
added that Messrs. Woolley and Avery both extended
the argument before the Senate Banking and Currency Committee for this policy which Ogden II. Mills, Secretary of
the Treasury, began last week. The question and answer
exchanges of the hearing, however, said the "Herald Tribune," served chiefly to put Committee members on record
against the idea. In the dispatch to the same paper it was
also noted:
Says Congress Is Opposed,
Senator R. F. Wagner, Democrat, of New York, whose bill enlarged the
Finance Corporation's lending power by $1,500,000,000 and authorizing a
Government expenditure of $500,000,000 for public works, told the visitors
before adjournment that he saw no chance of getting Congress to accept
the principle of advancing funds to private industry.
From the "United States Daily" of June 14 we quote as
follows:
Opposed as Competition.
Senator Barkley (Dem.), of Kentucky, emphasized that Government loans
to private industry would put the Government in the position of competing
with banks set up for that purpose.
Senator Glass (Dem.), of Virginia, questioned the principle of the Government taxing the people and loaning that money to industry. He declared
that "our imaginations have run away with our common sense. We've done
more foolish things," he said, "in the last six months than we have done
in the history of our country."
Senator Gore (Dem.), of Oklahoma, maintained that loans would have
to be made to every concern in every industry. Senator Norbeck (Rep.), of
South Dakota, on the other hand, stated that he saw no objection to
loaning to competitive industry, and that loaning to one would not
necessarily mean loaning to all.
Questioned by Senator Barbour (Rep.), of New Jersey, whether he would
object to a competitor in his field receiving the aid of a loan from the
Government, Mr. Woolley said that be would have none whatever.
Favored by Credit Group.
Mr. Avery told the Committee that the committee in Chicago, similar
to the so-called Young Committee in New York, had been favorable to the
Barbour Bill, which would permit loans to private industry, though it had
done so with restrictions as to requirement for loans.
As to the introduction of the Government into business, Mr. Avery said
the extremity was so great and the need for stopping distress so immediate
that extraordinary measures deserve consideration. He stated, however,
that care should be taken in making loans to industry to be assured of
good security and that the funds will be used in soundly needed projects.
Mr. Avery expressed favor especially, by way of example, of advances
to railroad equipment companies to better equipment of the railroads during
the present time of stress, thus giving employment and bettering the condition of the railroad companies themselves. He stated that "there is
nothing more threatening than the threat under which our railroads are
now operating."
Group Treatment Proposed.
Questioned by Senator Barbour (Rep.), of New Jersey, as to the objection
of loans to one concern and not another in the same field, Mr. Avery said
that difficulty might be avoided by treating one industry in a group.
The Reconstruction Finance Corporation has loaned funds to banks, which
are "as competitive as shoe shops," said Senator Barbour. "There the
Government has supported competitive industry, and the disease seems
to have been at least arrested. I am wondering if the principle is not
applicable on a broader field than to purely financial institutions."
"My impression is that the banking situation has been successfully
aided," responded Mr. Avery. "With restrictions, a similar treatment
could be made in the industrial field."
Discrimination Questioned.
Senator Wagner (Bern.), of New York, called attention to equipment
loans to railroads, questioned whether buses would not make similar requests
to better their equipment, and whether discrimination would not be
shown in denying them loans and extending aid to the railroads.
Mr. Avery pointed out that the direct objective was to save the country
from the "situation that fear is burdening us with."
"The position of the Reconstruction Finance Corporation would be that
of dictator," declared the New York Senator. "Other factors would enter
Into making loans other than the mere fact of security."
Mr. Woolley told the Committee that it "would seem wise
that any concern applying for a loan to go forward with a
project employing people should be itself required to furnish
one-third of the necessary funds, calling upon Reconstruction Finance Corporation for only two-thirds." "This," he
said,"would have the advantage of restricting loans to those
which are sound in character and make Government money
stimulate employment beyond the limits thereby created."
Mr. Woolley's statement before the Committee follows:
I assume that the object of the legislation before this Committee is Se
put the unemployed to work. That is what the country wants. There
seem to be two broad methods by which this can be accomplished. The
first consists in removing obstacles which have been standing in the
way of business confidence. Every day workers are being turned away
from jobs because the business men of the country are uncertain as to
the future. Congress has the power to remove some of those uncertainties
and has already taken important steps in this direction in the passage of
beneficent legislation which I do not need to review. Some further steps
which are essential are the definitive completion of the work of balancing
the budget and the removal of the fear of unwise legislation. No unfortunate legislation has actually become law. You gentlemen in Washington
have stood as a bulwark to protect the country against unwise proposals
which have flooded in from every side. If confidence can be restored many
of our problems will take care of themselves through the normal operation
of the business and financial machine. Our principal hope for prompt
recovery lies in getting the powerful normal agencies at work.
But I think we are all now agreed that in this emergency we must in
addition seek unusual means of finding employment for idle workerw.
Before discussing particular proposals I want to state ene gum'lab**
228
Financial Chronicle
July 9 1932
than they normally would, and many of those at work are working greatly
which is that Government funds should be used as the primer to start the
pump rather than as the main source of supply. If we try to accomplish
reduced hours. In addition, railroad purchases of equipment, rails, Sm.,
our task solely with Government money we are doomed to failure, for the
have shrunk to almost nothing. It is in fact in the equipment and steel
Government cannot sell enough of its securities to provide a sum adequate
industries that the worst unemployment situation is found. If the railto cure the unemployment problem by direct use of funds, and any
roads are compelled to continue their neglect of maintenance of way and
effort so to do would be so destructive to the bond market, upon which. equipment it is reasonably fair to assume that in due course they will
arrive at a condition which will render their service dangerous to their
the normal forces of business rely for their financing, as to create more
patrons. These is some indication of an increase in major accidents.
difficulties than it would cure.
There are, it itsims to me, four principal avenues through which GovernIf the railroads were to restore their personnel to a point necessary for
reasonable maintenance, and were to resume normal purchases of equipment money may be applied to this problem of unemployment. They are:
ment, it is fair to assume that many hundreds of thousands of men would
1. Public Construction.
2. Private Building Construction.
find work in the areas and industries now hardest hit.
3. The Railroads.
As the United States Government has for many years past assumed a
4. Protects of Private Corporations.
measure of responsibility for the control of the railroads, a peculiar
obligation, in my opinion, rests upon us with respect thereto.
1. Public Construction.
In addition, the position of our banks and insurance companies is much
There is, I believe, coming to be general agreement that certain forms
affected by the value of railroad bonds, which have always been regarded
of public construction may well be stimulated by loans by the Reconstrucin this country as prime investments. The present condition of the bond
tion Finance Corporation. These forms are what may be called productive
market, which is now practically closed to most new borrowers, in that
public works like toll bridges, toll roads, waterworks or other projects
way has operated to check and diminish business activity, in its turn is
Senator
facility
for
repaying
the
loans.
carry
within
themselves
the
which
affected more largely by the situation of railroad securities than by any
Pittman some weeks ago submitted a list of such projects. There is a
other influence.
considerable number of these which could be used effectively as means of
In the light of all these facts it appears to me most important that
creating employment. Loans for these enterprises could be made by
means be found promptly for bettering the financial position of the
a
as
possible
Reconstruction Finance Corporation to public bodies. As fully
railroads. The plan which has appealed to me most of those which I
these public bodies or the security market would be called upon to provide
have heard is that the Reconstruction Finance Corporation should be
a part of the funds so that Government money would be used in accordance
authorized to lend money to the railroads which they might use for the
with the principle above noted, as a means of priming the pump.
purchase
of their own bonds at present depreciated prices. In this way
A second type of public works, concerning which some difference of
the railroads could bring about a substantial reduction in their annual
opinion has I believe arisen, is construction of buildings, roads or other
interest charges and so effect an important improvement in their financial
projects directly by the United States Government. The two principles
position. Moreover, the purchase of these bonds in the market would be
bearing upon this question seem to me, first, that the national budget
most beneficial to the banks, insurance companies and other institutions
should of course be completely balanced, and there is a question how far
holding
railroad obligations and would bring nearer the time when the
Government
which
the
national
the general principle of pay as you go,
general bond market would be able to resume its function of financing the
has always followed, may be impinged upon and the budget still considered
new business undertakings which are so necessary to normal business
balanced. The second principle is that Government money should be
activity and a larger measure of employment.
used economically and, as far as possible, as a means of getting other
than
money to work. Again it is a question of priming the pump rather
4. Projects of Private Corporations.
supplying the water.
I understand that one important question before this Committee is
These two important principles seem to suggest that public works
whether legislation upon this subject should provide for loans to private
carried through directly by the Federal Government are less effective and
industry for productive purposes, or whether loans should be restricted to
desirable than the use of Government funds as a means of putting other
public
or semi-public bodies.
funds and credit to work.
This is a practical question. I fully realize from my experience with
2. Private Building Construction.
the War Trade Board the difficulties encountered by any organization
which has the power to extend privileges to private enterprise. Such
I am convinced that private building construction, particularly the
experience certainly indicates that if the bill which you gentlemen finally
construction of homes, offers the most advantageous field in which small
recommend contains a provision authorizing loans to private enterprises
amounts of Government money would be effective in employing large
that it should contain limitations and qualifications which would support
numbers of people in practically every department of the national business
First,
let
housing
surplus.
the administrative authorities in declining loans which are unsuitable.
organization. It has been said that we have a
Just what these limitations should be I am not prepared to suggest in
me suggest that housing is very different from wheat. When there is a
detail, but I thould think they might stipulate that any concern receiving
surplus of wheat in one place it creates a universal surplus of wheat, but
aid from the Reconstruction Finance Corporation must be an established
in the case of homes there may be a large surplus in one locality, or a
enterprise with earning capacity demonstrated over a period of years, and
large surplus in certain types of construction, while in other places and
must have a sound credit position indicated by a ratio of quick assets to
in other types of construction there may be a decided shortage.
quick liabilities of at least two to one.
The peak of home construction was in 1925, when provision was made
It would also seem wise that any concern applying for a loan to go
for 499,000 homes in 256 cities as reported by the Department of Labor.
forward with a project employing people should be itself required to
At the peak of the boom in 1928 there were only 388,000 new homes profurnish
of
higher
priced
one-third of the necessary funds, calling upon Reconstruction
largely
took
the
form
vided in these cities, and these
Finance Corporation for only two-thirds. This would have the advantage
apartment buildings in Park Avenue, Fifth Avenue, Euclid Avenue, Lake
of restricting loans to those which are sound in character and make
Shore Drive and other high class residence areas in the larger cities of
Government money stimulate employment beyond the limits thereby created.
the country. The construction of homes is presently proceeding at the
only
With these or similar safeguards it would seem to me not only wise
country,
which
is
rate of only 30,000 for the year 1932 for the entire
but eminently desirable that facilities of the Reconstruction Finance Corpo6% of the construction recorded for the year 1925. These statistics in
ration should be available to private enterprises in a position to put men
themselves clearly indicate that the vast mass of our people of moderate
to work. The economical, and, in fact, the only feasible, way of dealing
means were neglected with respect to home provision during the boom
year.
effectively with unemployment is to employ men where they live in occupaperiod. There are still approximately one million marriages per
tions with which they are familiar. Most of the unemployed have been
The process of growth is still operative. The need for new housing is an
released by private industry. Most of them cannot be re-employed until
ever-continuing factor of our national economy. It is now found that
private industry is prepared to give them work. It is a basic principle
apartment houses can be built containing every accommodation found in
of American economy that we rely primarily upon private enterprise to
the most expensive and luxurious homes which can be rented at the rate
bath.
apartment
and
conduct
the nation's business. I believe it will be seen, when this period
$36
for
a
three-room
of $12 per room per month, or
of emergency is over, that the principal channel for re-employment was
The rooms contain from 2,800 to 3,000 cubic feet of space, with well
found in private enterprise.
equipped kitchens, electric refrigeration, Sm. There presently exists in one
I recognize that it is difficult to foresee exactly what projects private
section of New York City, so I am informed by a high official of the State
enterprise may put forward to utilize idle man-power, particularly while
Housing Board, a waiting list of 1,800 people who are eager to avail
the upward turn in business is not yet apparent. I am sure, however,
themselves of such modern living accommodations at these extremely low
that the minute that upturn appears many private enterprises will be eager
rental rates. Similar conditions exist in other cities of the country. If
to increase their undertakings, and anything we can do to facilitate that
capital were available a building program of considerable magnitude would
process when the time appears will be most effective. Meanwhile I believe
promptly be set in motion.
times
that
there are in American industry many men of imagination and public
in
normal
in
the
country
The building industry is the largest
spirit who will find ways of employing workers if funds are made available
and is to-day the most depressed. It normally employs directly and
under the safeguards and restrictions which you may find it wise to
indirectly four million men, contributes 18% of all the tonnage transported
introduce.
by the railroads, and has an annual turnover of seven to eight billion
Since time immemorial private enterprise has been our main reliance in
with
just
a
dollars exclusive of public works. Once this industry is infused
the growth of American civilization. Private enterprise has created the
reasonable measure of activity it will exert a most important influence in
greatest industrial machine the world has ever known. Why, then, should
affording employment for vast numbers of people.
it not be employed, encouraged and in every way assisted in expressing
Aside from the need for new homes is the question of repairs and
its great power to offer employment by giving it the essential credit
improvements. Many houses need to be painted, leaking roofs need
such
facilities,
which in recent months have been inadequate?
way
for
a
large
available
in
attention, but there is no capital
purposes. A reasonable sum made available to this industry would quicken
Commodity Loans.
it into a measure of activity, in my opinion, which would prove most
I may add that I am in complete sympathy with the provisions of the
beneficial in the public interest.
Barber Bill for loans on commodities. I am leaving comments respecting
The question has been raised whether funds for this purpose should
that provision to others who have special knowledge of the suhiam:
be provided through the Reconstruction Finance Corporation or by the
proposed Home Loan Mortgage Bank. In my opinion both agencies should
be employed. The Reconstruction Finance Corporation under its present
Approval by President Hoover of United States Tariff
charter is not sufficient to handle it alone because it is not able to make
sufficiently long-time credits to encourage the financing of new works,
Commission's Report on Silicon Aluminum,
which could only be done by advancing credit up to 10 years, the normal
Aluminum Silicon, Alsimin, Ferrosilicon Aluminum
period of a Building and Loan Association and a number of other agencies.
and Ferroaluminum Silicon—Reduction in Duty
The matter of securing management which is unbiased by sectional or
other interest is of supreme importance.
on Certain Grades of
3. The Railroads.
The Reconstruction Finance Corporation already has the authority to
make loans to the railroads under certain prescribed conditions. Loans
made by the Corporation have been effective in aiding the roads and
avoiding receiverships. They have not, however, been effective in employing more workers or even in maintaining the forces of the roads without
decline. The reason for this is found in the very small volume of traffic
and in the financial position of the roads in the face of this difficulty.
So many roads have found their income inadequate to do more than cover
their fixed charges and essential expenditures, or have even lacked sufficient
sums for these items, that a general policy of retrenchment has been
followed. The railroads are now employing 400,000 to 500,000 less men
Foregoing.
President Hoover has approved the United States Tariff
Commission's report of its investigation with respect to
silicon aluminum, aluminum silicon, alsimin, ferrosilicon
aluminum and ferroaluminum silicon, indicating that there
should be a reduction of 234 cents in the present duty of
5 cents per pound on alsimin, ferrosilicon aluminum and
ferroaluminum silicon containing 20 but not more than 52%
of aluminum. No change in the rate of duty is specified
on other grades of these articles or on silicon aluminum
Volume 135
Financial Chronicle
aluminum silicon. The Tariff Commission's announcement June 20 also says:
OT
This investigation was made under the provisions of Section 336 of the
Tariff Act of 1930, pursuant to an application from the producer in Switzerland.
The articles, the subject of this investigation, fall into two groups:
(1) Alloys consisting essentially of aluminum and silicon used in nonferrous metallurgy. With respect to such alloys,known as silicon aluminum
and aluminum silicon, the Commission makes no findings;
(2) Alloys composed essentially of aluminum, silicon and iron known
as ferrosilicon aluminum and ferroaluminum silicon. This latter group
of alloys is used to deoxidize molten steel. Only a few ounces are used
per ton of steel. Alsimin is the trade name of a grade of such alloy made
In Switzerland. Imports of the latter group of alloys were about 5,000,000
pounds in 1927 and in later years have been relatively unimportant. Domestic consumption has not exceeded 6,000,000 pounds per year.
The Commission obtained as of 1930 costs of production and other
data from the domestic producer and from the foreign producer in Switzerland, the principal competing country. Inasmuch as there was only
a single domestic and a single foreign producer neither the costs obtained
nor the precise difference in costs are published, as to do so would reveal
the operations of the individual concerns. The investigation indicates
that the present rate of duty of 5 cents per pound on the alloys of aluminum,
silicon and iron containing 20 but not more than 52% of aluminum should
be decreased to 23.5 cents per pound. This change, which has been proclaimed by the President, will become effective July 18 1932.
No findings are made concerning the alloys of aluminum and silicon
inasmuch as no cost-of-production data were secured nor are findings made
concerning those alloys of aluminum, silicon and iron containing less
than 20% or more than 52% of aluminum.
Report by Tariff Commission on Relation of Duties to
Value of Imports.
The Tariff Commission issued on May 3 a report comparing the average equivalent ad valorem of rates of duty
on imports during 1929, under the Act of 1922, and during
the year ended Sept. 30 1931, under the Act of 1930. In
this report the Commission shows a comparison for the years
1929 and 1930-31 of the imports, rates of duty, duties collected, and equivalent ad valorems for all of the items
dutiable under either or both of the Tariff Acts of 1922 and
1930.
Summaries have been shown for the items subject to
various types of duty, such as specific, ad valorem, and
compound, and each of these is in turn subdivided to show
the value, duty, and equivalent ad valorem, for those items
on which the 1930 rates were the same as, higher than, or
lower than the 1922 rates.
The report points out the effect of price changes upon
ad valorem equivalents, and estimates what the average
ad valorem equivalent would have been in 1930-31 had prices
remained at 1929 levels. The report also discusses the
effect of shifts in the relative importance of the commodities
imported upon the average ratio of duty to value.
A summary of the report follows:
This report compares the average ad valorem equivalent of duties in
1929 under the act of 1922 and in the year ended Sept. 30 1931, under the
act of 1930.
In 1929 the total value of imports of articles which were at that time
dutiable, together with imports of articles transferred from the free to
the dutiable list by the act of 1930, was $1,658,100,000. The duties collected on these imports amounted to $584,271,000. the average ratio of
duty to value, designated as the ad valorem equivalent, being thus 35.2%
In 1929. The value of the same articles imported in the year 1930 31, including some which had been transferred from the dutiable to the free list
by the act of 1930, amounted to $758,455,000, and the duties thereon
totaled $373,868,000, or an average of 49.3%. This latter figure has,
however, been materially affected by the decline in prices, and when the
1930-31 values are adjusted to the price level of 1929,. the average equivalent
of the duties becomes about 41.5%.
Apart from any changes in the rates of duty fixed by law and apart
from transfers from the free to the dutiable list and vice versa, the average
ad valorem equivalent of the duties collected on actual imports may change
between one period and another as the result of two causes. In the first
place, changes in the prices of individual commodities may exercise an
important influence on articles subject to specific duty. A specific duty
Is fixed at a given sum per pound, yard, or other unit of quantity, and if
the price falls the duty will represent a higher percentage of the value.
Price changes also affect in less marked degree compound duties, which consist in part of a specific and in part of an ad valorem rate-a given percentage of the value. In the second place, the average ad valorem equivalent is affected by variations in the relative importance of the conunodties
imported. If there is an increase in the imports of articles bearing rela tively high rates,and no change or a decrease in the imports of those bearing
the lower rates, the average ad valorem equivalent on total imports will
tend to rise, and the opposite will occur if the relative movements are in
the reverse direction.
The importance of these two factors in affecting the average ad valorem
equivalent is Illustrated by comparison between the years 1923 and 1929.
Both these years were under the same tariff act and only minor changes in
the rates of duty had been made in the interval by presidential proclamation. Yet the average ad valorem equivalent on dutiable imports rose
from 36.2% in 1923 to 40.1% in 1929 by reason of changes in prices and
In relative importance of the commodities imported. This 1929 figure is
not to be confused with that given above (35.2%) which includes articles
dutiable under either the tariff act of 1922 or 1930.
In the comparison between 1929 and 1930-31 the commission has undertaken to make an adjustment for the first of these factors, namely the
decline in prices. It has made no such adjustment for shifts in the relative
Importance of commodities, since the primary purpose of the report is to
compare the average rates on the actual imports; and for this reason the
comparison should not, as the commission points out, be taken as a direct
measure of the relative height of duties under the acts of 1922 and 1930. A
previous report of the Commission issued in 1930 makes such a direct cora-
229
parison between the two acts by applying the rates of each to thc same
quantities and values of imports, namely those of 1928.
As an aid to interpreting the comparison between 1929 and 1930-31,
the Commission has introduced certain groupings of the dutiable commodities, thus giving a more complete picture than has heretofore been
presented. The report distinguishes, in the first place, between articles
subject to the different forms of duty-specific, ad valorem. compound,
and miscellaneous. It further distinguishes, as to articles subject to each
form of duty, between those on which the 1930 rates were the same as,
higher than, or lower than the 1922 rates.
The Effect of the Fall in Prices on Duties.
In estimating what would have been the average ad valorem equivalent
of the duties in 1930-31 if the prices of commodities had remained the same
as in 1929, adjustment is made only for price changes on articles subject
to specific duty. This, however, furnishes a sufficient basis for approximately correct conclusions concerning the effect of the fall in prices on
total imports and the duties on them. No adjustment, of course, is required for articles subject to ad valorem duty, since the percentage which
the duty forms of the value remains the same whatever the price. The
group of articles at compound rates, in which price changes exercise some
influence on the average ad valorem equivalent,is of very minor importance.
The results of this calculation are as follows:
For articles subject to specific duty-that is, articles so dutiable under
both the Act of 1922 and the Act of 1930, or at a specific rate under one
of these Acts and free under the other-the actual average ad valorem
equivalent of the duties was 36.5% in 1929 and 58.4% in 1930 31. How
ever, when the prices of 1929 are applied to these 1930-31 imports the
value is raised 37%, and using this adjusted value as a divisor, the average
ad valorem equivalent of the duties at specific rates falls to 42.6%. On
imports subject to all other forms of duty, taken together, the actual ad
valorem equivalent in 1930-31 was 40.7%. Combining these two averages, 42.6% and 40.7%, with weights according to the relative importance
of these two great groups, the Commission finds an adjusted average ad
valorem equivalent for all imports in 1930-31 at about 41.5%. which is
comparable with the figure of 35.2% for 1929.
A further evidence of the important effect of the recent decline in prices
upon the average ad valorem equivalent is furnished by the statistics
for that group of articles subject to specific duty on which the rates for
each commodity were precisely the same under the Act of 1922 and the
Act of 1930. For this group the average ad valorem equivalent in 1929
was 25.5%, and if there had been no change in prices it would probably
have been about the same in 1930-31, whereas the actual figure for the later
year was 33.5%.
Average Ad Valorem Equivalents for the 15 Individual Schedules.
The following table makes a comparison, as to each of the 15 schedules
el the dutiable list, of the average ad valorem equivalent for all articles
dutiable under both Acts or dutiable under one Act and free under the
other, no adjustment being made for the decline in prices:
1929. 1930-31.
31.1
Schedule I, Chemicals, Oils, and Paints
28.9
"
2, Earths, Earthenware, and Glassware
46.9
51.7
"
3, Metals and Manufactures of
35.5
37.4
"
4, Wood, and Manufactures of
11.2
15.5
"
5, Sugar, Molasses, and Manufactures of
132.4
84.0
"
6, Tobacco and Manufactures of
68.2
65.0
"
7, Agricultural Products and Provisions
19.0
37.7
"
8, Spirits, Wines, and Other Beverages
29.6
29.6
9, Cotton Manufactures
47.5
"
39.3
" 10, Flax, Hemp, Jute, and Manufactures of
26.2
18.8
" 11 Wool and Manufactures of
50.8
72.7
" 12, Silk Manufactures
59.5
56.9
" 13, Manufactures of Rayon or Other Synthetic Textlle _ _ 59.1
59.9
" 14. Papers and Books
24.8
25.4
" 15. Sundries
24.8
36.0
The changes shown by this comparison are due only In part to increases
or decreases in the actual rates of duty under the new Tariff Act. They
are also affected by the decline in price levels and by shifts in the relative
Importance of the commodities imported.
An approximate adjustment for the decline in prices has been made by
the Commission for eight of the 15 schedules, where that decline has had
considerable influence on the average ad valorem equivalent. This factor
has been particularly important in the case of Schedules 5,7 and 11.
Schedule 5 (Sugar, Molasses, and Manufactures thereof) consists chiefly'
of specific rates. . . .
Schedule 7 (Agricultural Products and Provisions) also consists very
largely of specific rates. The ad valorem equivalent for the schedule was
19.0% in 1929 and 37.7% in 1930-31, but when an adjustment is made to
the basis of 1929 prices the average for the later year becomes 28.3%•
In Schedule 11 (Wool and Manufactures Thereof) only about one-third
of the imports are at specific rates, but this third consists chiefly of raw
wool and the price of raw wool has fallen greatly, thus affecting in a marked
degree the totals for the entire schedule. The unadjusted ad valorem
equivalent for the schedule in 1930-31 was 72.7%. When, however, the
1929 prices are applied to the 1930-31 imports of articles subject to specific
duty, the average for the entire schedule falls to 62.8%, as compared with
50.8% in 1929.
Articles Dutiable L nder Each Tariff.
In addition to the comparisons above mentioned, which relate not only
to articles dutiable under both tariffs but to those dutiable under one
tariff and free under the other, the comparison is made of the average ad
valorem equivalent as between articles actually dutiable in 1929 and those
actually dutiable in 1930-31, disregarding shifts from the free to the dutiable
list and vice versa. The average for the former year was 40.1% and for
the latter 51.2%. In this comparison there is no adjustment for the decline in prices.
Degree of Doctor of Laws Conferred on Justice B. N.
Cardozo, Associate Justice of U. S. Supreme Court,
by University of Pennsylvania.
The University of Pennsylvania on June 22 conferred the
honorary degree of doctor of laws upon Benjamin Nathan
Cardozo, Associate Justice of the United States Supreme
Court, after the jurist had been formally presented for the
honor by Justice Owen J. Roberts, a fellow member of the
Supreme Bench. The degree was conferred by President
Thomas S. Gates at the university's 192nd annual commencement. Justice Roberts in presenting Justice Cardozo
referred to him as "scholar, lawyer, jurist; instinct with the
traditions and aspirations of the American people."
Justice Cardozo, previously Chief Judge of the Court of
Appeals of New York, assumed his new duties as Associate
230
Financial Chronicle
Justice of the United States Supreme Court on March 14.
His appointment by President Hoover to the latter post
was noted in our issue of March 5, page 1688. As stated
therein, Justice Cardozo succeeded Oliver Wendell Holmes,
resigned. With regard to the assumption by Justice Cardozo of his new duties, a dispatch March 14 from Washington to the New York "Herald Tribune" said:
The new Associate Justice, after the required oaths had been administered,
took his place on the bench and sat with the court through the afternoon
hearing arguments.
Before noon Judge Cardozo met Chief Justice Hughes and the other
members of the court in the robing room, just off the court chamber. In
these narrow, historic quarters, where the members of the court don their
solemn black robes, he was greeted by the Chief Justice and his colleagues.
Only the members of the court and the clerk, Charles Elmore Cropley, were
present.
Hughes Administers Oath.
In the robing room Chief Justice Hughes administered the Constitutional
oath. Then, in accordance with the time-honored custom, the members
of the court, punctually at noon, crossed the corridor and went into the
court room. The Chief Justice was at the lead, the Associate Justices
following in order of their length of service. Judge Cardozo, as the newest
member, brought up the rear.
Instead of taking a place on the bench at once Judge Cardozo stopped
at the desk of the Clerk of the Court and took a seat by his side. After the
members of the court were seated and the crier had signified the opening of
the court, Chief Justice Hughes announced that the President of the United
States had appointed Judge Cardozo as the successor of Associate Justice
Oliver Wendell Holmes, retired; that he was present; that the Commission
would be read, the judicial oath administered and the Marshal would then
escort Judge Cardozo to his place on the bench.
The clerk then read the Commission and administered the judicial oath.
Thereupon Judge Cardozo was escorted by the Marshal to his place on the
extreme left of the Chief Justice and next to Associate Justice Harlan F.
Stone. Justice Stone greeted him with a handshake, the new Associate
Justice sat down and the business of the court proceeded without further
formality.
Spectators Pack Court.
A large crowd of attorneys and others packed the limited room of the
court and a long line waited outside unable to gain admittance. Among
those waiting in line was Senator Marcus A. Coolidge, of Massachusetts.
Among those in the courtroom were Senator William E. Borah, of Idaho,
who was instrumental in having Judge Cardozo appointed, and Rabbi Wise.
of New York.
It was announced that Judge Cardozo had selected Joseph M. Paley, for
fourteen years associated with him as Secretary, to continue with him in
that capacity.
Judge Cardozo formally resigned from the Court of
Appeals on March 7. Gov. Franklin D. Roosevelt on
March 8 named Cuthbert W. Pound (Republican) of Lockport, N. Y., as Chief Judge of the Court of Appeals of New
York, succeeding Benjamin N. Cardozo, who resigned to
become Associate Justice of the United States Supreme
Court. The State Senate confirmed the nomination of
Judge Pound on March 8. Judge Pound, for 17 years was
an Associate Judge of the Court of Appeals.
Death of William C. Redfield, Former Secretary of
Commerce.
William C. Redfield, former member of the House of
Representatives, and Secretary of Commerce in the Cabinet
of President Woodrow Wilson, died in his sleep on June 13
at his home in Brooklyn, N. Y.
A sketch of Mr. Redfield's career is taken as follows from
the Brooklyn "Daily Eagle" of June 13:
Mr. Redfield was born June 18 1858 in Albany, N. Y., and received
his early education there and in the schools of Pittsfield, Mass., to which
city his family moved when he was a boy of nine. He came to New York
at 19, worked for a few years with a stationary engineer and then became
bookkeeper and shipping clerk for J. H. Williams & Co. of Brooklyn,
steel and iron products manufacturers. He rose steadily in that concern
until he became President.
In 1907, after 22 years with the Williams concern, he resigned to establish
the Sirocco Engineering Co., which was merged later with the American
Blower Co., of Detroit, of which Mr. Redfield became Vice-President.
Be retained that connection until 1913.
Meanwhile, in 1902 and 1903, he served as Commissioner of Public
Works of Brooklyn. Back in 1896 he had been a candidate for Congress
as a Gold Democrat, but failed of election. In 1910 he ran for Congress
again and was elected.
Expert on Tariff.
When he entered Congress from the 5th District, Brooklyn, the dominant
issue was the tariff and Mr. Redfield very quickly came to be recognized
as one of the tariff experts in the lower house of Congress. Though himself a manufacturer he was a consistent advocate of lower tariff rates.
He insisted that a high tariff for protection was not necessary, because
the cheaper wage-scale of Europe was more than compensated for by the
greater skill of American labor. He made a number of addresses during
the discussion of the Underwood Tariff, and one of them was used as a
campaign document in the 1912 campaign for the election of President
Wilson.
President Wilson appointed Mr. Redfield Secretary of Commerce on
March 4 1913, and he remained in that office until his resignation on
Nov. 1 1919. One of his chief services during his term of office was to
reorganize and expand the Bureau of Foreign and Domestic Commerce
for the development of manufacturing industries in this country.
Advocated by Navy.
During the World War Mr. Redfield also helped in developing the War
Trade Board, the Bureau of Standards and the Council of National Defense. He advocated a big Navy as necessary for the protection of American
business Int-vests abroad.
At various times Mr. Redfield was President of the American Manufacturers Expos t Association, the National Society for Promotion of Industrial
Education, the American-Russian Chamber of Commerce, the Netherlands
July 9 1932
Chamber of Commerce in New York and the National Institute of Social
Sciences. In 1927 he was President of the Danish-American Corp. He
became President of the Brooklyn National Bank at its organization in
January 1929.
He wrote and lectured on business and Government subjects, being
author of"The New Industrial Day"(1927),"With Congress and Cabinet"
(1924),"Glimpses of Our Government"(1924-1925),"Dependent America"
(1926) and "We and the World" (1927).
In a message on June 13 as follows to Mrs. Redfield, widow
of the former Secretary of Commerce, President Hoover
said:
I am deeply grieved to learn of the death of your husband, who was my
good friend and distinguished predecessor in the Department of Commerce. His service to country was so varied and valuable as to earn the
gratitude of the nation and his character won him high regard of a host
of friends. I send you my profound sympathy in your bereavement.
Yours faithfully,
HERBERT HOOVER.
Death of 0. K. Davis, Secretary of National Foreign
Trade Council.
Oscar King Davis,Secretary of the National Foreign Trade
Council, died in the Lawrence Hospital, Bronxville, N. Y.,
on June 3 of a heart attack. He was 66 years of age.
From the "World-Telegram" we quote:
He had been Secretary of the National Foreign Trade Council since 1917
and his word on international commercial conditions had come to be regarded as authoritative.
A newspaper man of long experience in the United States and abroad, he
had a knowledge of political conditions which elevated him in 1912 to high
position in the "Bull Moose" Progressive Party founded by the late Theodore Roosevelt.
Born in Baldwinsville, N. Y., Mr. Davis was graduated from Colgate
University in 1888, later receiving additional honorary degrees.
He was special correspondent for “The Sun" and "Harper's Weekly"
during the Spanish-American War and the Philippine insurrection.
From Orient to Washington.
He later covered the Boxer rebellion, and in 1904 was special correspondent with the first Japanese army. Upon his return to the United
States he was Washington correspondent for the New York' Times" and
"Philadelphia Ledger."
When the Progressive party was organized he became secretary of the
National Committee and was in charge of the party's publicity campaign.
Mr. Davis returned to foreign service in 1915, and was special correspondent for the Chicago "Tribune" in China and for the New York "Times"
in Berlin. He was a delegate from the United States to the first Pan-American postal congress at Buenos Aires.
His books included "Our Conquests in the Pacific," "At the Emperor's
Wish." "Dewey's Capture of Manila" and "Released for Publication."
Death of Charles F. Staples, Director of Bureau of
Valuation of Inter-State Commerce Commission.
Charles F. Staples, Director of the Bureau of Valuation
of the Inter-State Commerce Commission, died in Washington on June 25, after a long illness. Ho was 75 years old.
Associated Press accounts from Washington said:
Mr. Staples was one of the country's outstanding authorities on rail
valuation. A native of Stillwater, Minn., he became nationally known
in railroad circles when as a member of his State's Railroad Commission
he bested James J. Hill in the famous Minnesota rate case.
Death of Edward J. Gallien Formerly Secretary New
York State Bankers' Association.
Edward J. Gallien, former Secretary of the New York
State Bankers'Association died at his home in Albany,N.Y.,
on June 25. He was 74 years of age.
The "Knickerbocker Press" of Albany on June 26 said:
Mr. Gallien, a native of Albany, had lived recently in New York City.
Be was a son of the late Henry Gallien, a former Comptroller of New
York State.
Mr. Gallien was Comptroller of the city of Albany during Mayor Blessing's administration, and until two years ago he was Secretary of the
New York State Bankers' Association, a position he held for many years.
Dedication of Hall of Science Erected for Chicago's
1933 World Fair-75% of Buildings Reported
Completed or Contracted For.
The Hall of Science, erected for Chicago's World's Fair
of 1933, was dedicated on June 1, which date was proclaimed
World's Fair Day by Mayor Cermak. The Mayor in his
proclamation called upon Chicagoans to "proclaim their
faith in the exposition and in Chicago by the display of
flags and bunting and by ringing of bells and blowing of
whistles for five minutes, beginning at noon."
The official opening of the Fair—under the title "A
Century of Progress," will take place a year hence. It is
stated that the beginning of the last 12 months of work on
the fair sees 75% of the buildings completed, under construction or contracted for.
Rufus C. Dawes, President of "A Century of Progress,"
presided at the dedication of the Hall of Science.
China Will Have Entry at Chicago Exposition.
China will be represented at Chicago's Century of Progress
exposition, according to an announcement by the Nationalist
Ministry of Industries, and forwarded to the Commerce
Volume 135
Financial Chronicle
Department from Commercial Attache Julean Arnold,
Shanghai. The Commerce Department on June 18, stated
that the details of the Chinese exhibition have not yet been
developed, but it is stated that it will be one of the most
complete at the exposition.
National Industrial Conference Board Finds Financial
Relief Measures Enacted by Congress for Most
Part Temporary Expedients—Believes Problem of
Banking Control Rests With State As Well As
National Government.
rile various measures recently enacted by Congress for
.,ile relief of the financial situation in the United States are
for the most part temporary expedients, and while some of
them may contribute in a certain degree to the permanent
improvement of banking conditions, it would be an illusion
,o conclude that they are capable of providing a lasting
mlution of the American banking problem. This is one of
the conclusions reached by the National Industrial Conference Board after an exhaustive study of the banking situadon by its staff experts, as revealed in a report under the
title, "The Banking Situation in the United States," made
available June 27. The significance of the startling developments in the field of banking that have taken place during
the last two years is set forth in this report, says the Board,
which also says:
Although the American banks, as a whole, absorbed without immediate
disrupting effects the shock of the security market collapse in the fall of
1929, they were compelled later to make adjustments that involved further
risks for American banking with its heterogeneous structure and organize.
ji0/1. These adjustments, resulting from the decreased credit demands of
trade and industry and of the real estate and security markets, involved
the employment by the banks of their rapidly accumulating funds and
released credit capacity in the purchase of fixed income securities, though
not United States Government issues. The change in investment policy
involved a new element of risk, because of the already impaired liquidity
of the banks and also because their security holdings, as contrasted with
loan assets, hold no margin of protection. Thus it was that, when the
epidemic of bank failures began to exact a toll among the larger banks
at the end of 1930 and the beginning of 1931 and to threaten all banking
Institutions, many banks were found unprepared to deal with the unexpected
turn of affairs.
This situation produced one of the greatest financial catastrophes ir.
me history of the nation, resulting in the closing of 1,611 banks, involving
over a billion dollars of depositors' funds, within the brief space of the
latter half of 1931, and finally made necessary the series of extraordinary
proposals advanced by President Hoover as measures for checking the surging
forces of credit liquidation. These measures included the establishment
of the National Credit Corporation and the Reconstruction Finance Corporation, an increase in the capital stock of the Federal Land Banks, and the
broadening of the eligibility provisions of the Federal Reserve Act respecting discountable assets of member banks. This last proposal was embodied
In the Glass-Steagall Act, which became a lew Feb. 27 1932.
As to these, the report of the Conference Board says:
The importance of the rediscount provisions of the Glass-Steagall Act
arises from the fact that they permit Federal Reserve banks to assist
their member banks in unusual conditions without regard to the restrictions
on the eligibility of member bank assets for rediscount established in the
Federal Reserve Act for ordinary circumstances. Individual member banks
with insufficient eligible assets may therefore under pressing circumstances be assured of accommodation at the Federal Reserve banks. In
addition, other banks, possessing ample eligible assets but disposed to
,conserve them in anticipation of possible emergency conditions, may be
assured that if they employ these assets for rediscount in order to render
adequate banking accommodation to their respective business communities
or to non-member correspondent banks, they will not close the doors of
she Federal Reserve System on themselves in case of the development of
unforeseen emergency needs. While the importance of the last-named
provision lies partly in the fact that the assets of member banks pledged
co the Federal Reserve banks under the provisions of the Act may not be
employed by the latter as collateral for issuance of Federal Reserve notes,
it also possesses a broader significance. It enables the Federal Reserve
System as a whole to pursue more liberal credit policies under emergency
conditions than would otherwise be permitted."
While these emergency measures have appreciably relieved
the credit stringency, the analysis presented in this report
leads to the conclusion that the difficulties of the banking
situation are too diverse and deep-rooted to be permanently
adjusted by provisional acts for liquefying the assets of
banks, and especially the assets of the large number of small
Independent unit banks. Moreover, says the Board, they
are not likely to be permanently disposed of by governmental
creation of new financial institutions for the purpose of providing alternative credit resources to those ordinarily provided by private independent banks for special branches of
production, unless the Government is to be expected to undertake ultimately the financing of all industry and trade. The
problem of control of banking still awaits solution. In its
discussion of the subject the Conference Board says:
Must not the problem be faced whether a satisfactory banking system
can be attained with legislative and administrative control of bank establishment and bank operation vested not only in the National Government
but in the States as well? Experience has shown that the National
banking system established in 1863 and the Federal Reserve System established in 1914 have been unable to bring about a unification of the banking
system. Both sought this end by making their provisions attractive to
banks operating under State charters. If unification of legislative and
administrative control is to be attained, must there not be a resort to some
231
measure of compulsion? Those who answer this question affirmatively
are not deterred by the obvious objection that national action to this end
might be in contravention of rights reserved to the States by the Federal
Constitution. They hold that there is ample legal authority for the Federal
Government to take over the control of all banking institutions and make
clear that, if the Supreme Court of the United,States should not uphold this
view, the way of constitutional amendment remains open. The fact that
the Federal Reserve Board is actively studying ways and means of bringing
all the banks of the United States without exception under its jurisdiction
is encouraging to those who believe such a course to be a first step toward
the attainment of satisfactory banking conditions.
Publicity Urged by William P. Ripley of Harvard
University on Condition of All Corporations—
Would Stabilize Values in Securites He Tells
Committee Inquiring Into Short Selling—Proposes
to Utilize Federal Tax Powers—Complete Disclosures Asked on Financial Status of Inter-State
Companies and Share Holdings of Their Officers.
Complete publicity for the earnings and the general status
of affairs of corporations, such as is now required of railroads
and utilities reporting to the Inter-State Commerce Commission, was advocated by Dr. William Z. Ripley,of Harvard
University, June 14, in testifying before the Senate Committee inquiring into Stock Exchange trading. The "United
States Daily" in its account June 15 went on to say:
The witness urged this method, rather than "attempts to prevent direct
short selling." saying that with publicity there would be nothing "with
which the speculators can play," and Senator Couzens,(Rep.), of Michigan,
a member of the Banking and Currency Committee before which Dr.
Ripley appeared, stated orally he was so impressed with the idea that he is
prepared to draft legislation to that end.
Disclosure of Activities Urged.
"There is always so much mystery about market fluctuations." said
Dr. Ripley. "The pools thrive on this mystery. In many instances, the
pools—and they may be bulls as well as bears—are started by the dissemination of false information.
"Now, I am convinced that the way to reach them is to force full disclosure of their activities. There is no question in any mind as to the
constitionality of it. Authority is available incident to the taxing power
and it can be applied without question to any corporation engaged in
inter-state commerce. When that is done. I believe there will be greater
stabilization of values in securities than we have ever known before.
"The country can not go on this way. It is a condition that must be
changed."
Interest in Market.
Dr. Ripley told the Committee he had "very little interest" in the main
subject of short selling. His thoughts, he explained, ran in the direction
of a remedy for the "deeper condition," and added that if mystery were
swept away then none would have to worry about short selling or bull
markets, or the evils of them. Those conditions would be rectified by the
investors themselves, in his opinion.
Replying to an inquiry from Senator Brookhart (Rep.), of Iowa, whether
there had not been as much fluctuation in rail stocks since the passage
of the Transportation Act of 1920 as before, Dr. Ripley replied that such
changes in values as had come had their origin in fundamental conditions.
Trend in Rail Stocks.
'They have gone the only way they could go." he said. "That was down.
"And I may add that the reason for the even trend in rail stocks is that
there is nothing which the speculators can get hold of. They can't make
mystery out of it. Everybody is informed concerning the companies."
The witness deplored the activities of officers or directors of corporations
who take advantage of inside information to make profit out of operations
in their own stocks. He referred to "bald statements" which he said were
made by Percy Rockefeller who testified before the same Committee and
who said in effect that he had profited by operations in stocks of companies
in which he was interested.
Statements on Holdings.
"I believe," he continued, "that this publicity plan ought to require
officers and directors to disclose from time to time bow much of the stock
of their own corporations they hold. My reason for that is nay knowledge
that some of them, utterly disregarding their fiduciary relationship and
responsibility, unload their holdings when they know in advance that
adverse reports are coming out.
"I would like to see some requirement that would stop such a thing as
an officer of a company taking to a lifeboat and guiding the ship by wireless
while he still is inviting everybody else to go aboard the ship."
The witness criticized many auditing firms for misleading statements
respecting affairs of corporations. Fle said they were prone to take just
a balance sheet and on that basis announce in a certification that the
company is sound. He complained further that the auditors in too many
Instances were either unwilling or unable to get facts which they should
analyze before making a certification on a corporation statement.
Urges Standardized Audits.
"Of course," he continued, "there are so many instances where the most
skilled analyst can not tell when a corporation is sound. It is simply impossible. But it would not be impossible if a standardized Government
form had to be filled out and filed with a Federal agency and a heavy
penalty attached for breach of the requirement."
Senator Walcott (Rep.). of Connecticut, observed that he believed
much of the bad financing had gone on as a result of high pressure salesmanship and advertising campaigns.
Dr. Ripley agreed with Senator Walcott that advertising campaigns
had played an important role, and he traced this phase of present-day
financing methods to the country-wide sales campaigns for Liberty Bonds
during the World War. He added that those campaigns had resulted "in
more money being pulled out from behind the chimney than during the
time the Liberty Bonds were sold."
Effect on Refinancing.
As to other advantages which the witness suggested might accrue from
full publicity, he mentioned the simplicity of financing or refinancing of
one of those corporations whose affairs were well known. He said the
American Telephone & Telegraph Co. could borrow short term capital
readily because the bankers were able "on a moment's notice" to inquire
of the Inter-State Commerce Commission as to the details of the financial
situation of the company.
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Financial Chronicle
In this connection, however, Senator Walcott declared he believed
people did not read the statement of corporations, generally speaking, or
paid no attention to them if they did read the statistics thus set forth.
Of this Senator Glass (Dem.), of Virginia, remarked that "not 10% of
the Congressmen could understand them anyway."
Stock Sales to Employees.
Dr. Ripley told of information that had come to him concerning the
actions of corporations in forcing their employees to purchase stock in the
employing corporation, and of threats that the employees would lose
their jobas if they failed to take some of the stock. Usually, he said, the
amount was not large individually, but in the aggregate it was a large total.
"That is one of the things that is going to come out in the Insull situation
in Chicago," he added, referring to the receivership of the Insull interests.
Dr. Ripley was asked by Senator Norbeck (Rep.), of South Dakota.
Committee chairman, and by Senator Fletcher (Dem.), of Floriada,
whether it would be possible to distinguish between speculation and investment and whether it would not be a wise course.
Speculation and Investment.
"It would, if you could do so," he replied. "But I do not know how it
can be done. For example, I bought some Gillette Safety Razor stock;
It looked like a good investment. I found out in a very few days, or perhaps the next day, that the figures on which I had based my judgment
were false. Of course, I didn't keep that stock. I got rid of it as quickly
as I could.
"That might have been called speculation, yet I bought it as an investment. It would have been pretty much of a blow to me to pay, say, a
10% tax as a speculator in addition to my losses."
The witness cited other circumstances such as an emergency arising that
would require immediate disposal of stock holdings in order to realize
cash as among the difficulties to be overcome in defining speculation.
Senator Glass argued, however, that these were exceptions and that legal
phraseology could be drafted to exempt them.
Advertising of Securities.
In discussing advertising campaigns for the sale of securities, Dr. Ripley
cited operations of the Associated Gas Sz Electric Co., which he said had
been disposing of so-called baby bonds of $10 denominations so that it was
gaining new funds at the rate of about $1.000.000 a week. While declining
to comment on the condition of the corporation, because of lack of knowledge,Dr. Ripley said it was his opinion such securities were not good investments for persons of small means.
"They are not good investments," he explained, "because they lack
the element of instantaneous convertability. They are not available as
collateral because banks won't loan on them. They are investments bemuse when one gets them there is nothing to do but keep them."
Suggests Exemptions.
Amplifying his views respecting publicity for corporate earnings, the
witness told the Committee he felt sure there would be little difficulty
In drafting legislation that would work effectively.
He suggested that there should be exemptions provided so that small
corporations or companies in whose stock there was not trading would not
be required to go to the trouble of filing the returns and reports. It
would do them no harm, he explained, but it was unnecessary since the
evils which he sought to reach were not found in such corporations.
As an instance of the point he was seeking to make, Dr. Ripley told the
Committee that "more than 1,000,000 persons are now registered shareholders in Cities Service. Obviously," he said, "full disclosure as to the
condition of such a corporation would be valuable whereas a corporation
whose stock was held within one family or within a small group should
be exempted because there would be no trading in It."
Block Holdings Cited.
In this connection, the witness said that the latest compilation showed
"more than 18,000,000 blocks of stock are now held in this country." In
explanation, he added that indicated an even greater number of individual
holders of stock, for obviously many investors held more than one kind
of stock.
Two Years' Work of Tariff Commission Under Tariff
Act of 1930-31 Tariff Changes Proclaimed by
President.
Two years' work under the Tariff Act of 1930 finds the
Tariff Commission reporting 42 completed rate-adjustment
investigations to the President and 14 special investigations
(petroleum, copper, &c.) for Congress or general surveys
on the Commission's own initiative. It has to-day 23
investigations in various stages of progress, and 48 applications are pending. Forty other applications have been
denied and dismissed, says an announcement June 18
issued by the Commission, from which we also quote as
follows:
Based on the Commission's work the President has proclaimed 31 tariff
changes, 13 increases and 18 decreases. Rates on 42 commodities were
left unchanged.
The articles coming under these rate-adjusting investigations comprise
about 11% of the dutiable imports of 1931, or $75,000,000. Duties were
decreased on nearly $14,000.000 and increased on $0,000,000. Rates
were left unchanged on the balance, 352.000,000.
Twenty of the rate investigations were completed this year; 22 the
year previous. Of the special investigations under the general powers
ofthe Commission eight were completed this year, and six the year previous.
A comparison of simple numbers of reports completed is, alone, of
little value in appraising the activities of the Commission, however. A
number of small investigations may be completed in less time than one
Into which a number of complex and complicated rhases enter. The
present economic conditions both in the United States and in other countries
which cause unusual instability in such basic factors as wages and prices,
make the problems in rate-adjustment investigations to-day much more
difficult than in normal times.
In the two years completed to-day the Tariff Commission has received
164 applications for investigations under Section 336 of the Tariff Act of
1930 looking toward changes in the statutory rates of duty. Of the 164
applications for readjustments, 81 indicated a desire for decreases; 59
requested increases. (Orders for investigation received from Congress
of course do not specify the direction of change desired by the original
proponents. One hundred and five of the applications were received
during the first year after passage of the Act and 59 since the beginning
of the present fiscal year. Twenty-one of the applications received during
July 9 1932
the first year for rate-adjustment reports were Senate resolutions, and
during the second year two such resolutions were received. (Some resotions cover many commodities, however.) Of the total 164 applications,
47 remain pending awaiting the Commission's action. Eight applications
were withdrawn by the applicants. In 40 cases, about equally divided
between the two years, the Commission found that the facts do not warrant investigations at this time, and therefore denied and dismissed the
applications without prejudice.
The remaining 69 applications are covered by investigations formally
instituted in accordance with the Commission's rules and under the
provisions of Section 336. This section provides that with certain limitations and nstrictions, rates provided for in the Tariff Act of 1930
may
be increased or decreased (not to exceed 50% of the present rate) by proclamation of the President, after an investigation and report by the Tariff
Commission. Of the 76 investigations instituted under this section,
51
of which were upon resolutions of the Senate, 42 have been completed
and acted upon by the President. Twenty of these were completed
and
acted upon during this fiscal year and the other 22 during the
preceding
fiscal year. Eleven of the investigations formally ordered, were
later
dismissed, nine in accordance with provisions of Senate resolutions.
During an investigation under Section 336 the Commission holds public
hearings, at which parties interested are given opportunity to be present.
to produce evidence, and to be heard. Thirty-three such hearings
were
held during the fiscal year just following the passage of the existing
tariff
law, and 24 during the present fiscal year.
During the fiscal year immediately following the passage of the Tariff
Act, and after the reorganization of the Tariff Commission provided
for
In this Act, the Commission concentrated Its work on these rate-adjustment
investigations, most of which wen at the direction of the outgoing Congress.
Much of the time of the personnel during the current or
second year,
however, has been devoted to numerous special economic studies made
at
the request of the House or Senate. These special investigations
were made
under the Commission's general powers as described in Section
332 of the
existing tariff law. A specific provision was included in this
section at the
time of the passage of the Tariff Act for the investigation of
crude petroleum.
The reports in this investigation and in 13 others under
this section, have
been completed and sent to both houses of Congress, or
otherwise made
generally available. In addition to the crude petroleum investigation
provided for in the Tariff Act, the House of Representatives ordered
a second
Investigation that included crude petroleum and its refined
products. Copper, creosote oil, certain vegetable and animal oils, the
effect of depreciated
currencies on imports of wood pulp and pulpwoods,
and a general study
of the effect of depreciation in the value of foreign currencies
upon imports
into and exports from the United States
of all the more important commodities, are among the principal special investigations made
for Congress
under Section 332 during the Commission's second year.
Most of the items
included in these investigations conducted under the general
powers of the
Commission are on the free list and could not have
been included within
any Tariff Commission activities relating
to readjustment of rate,, as transfers between the free and dutiable lists are
enjoined by the Tariff Act.
These and other broad special investigations were
conducted simultaneously
with the 20 rate-adjustment investigations which
have been concluded and
reported to the President during the current fiscal year.
"Domestic Value" vs. "Foreign Value" as Base for,Dulies.
Section 340 of the Tariff Law directs the Commission to make
a special
Investigation, "Domestic value—Conversion of rates." The
section Pmvides that the Commission report to Congress by July 1
1932, the 1930 ad
valorem rates of duty converted to give, on the basis of domestic
valuation
of imports, the same revenue as the actual 1930 rates would
have given,
levied on the basis of foreign valuations, had they been applied against
imports of the fiscal years 1928 and 1929.
The study is to reflect, so far as such a study of the facts
permit, how
the declared or "foreign" value of imported merchandise in the
foreign
market compares with the "domestic" value of the same article in the
principal markets in the United States, and to show the ad valorem rates
of
duty on the basis of the domestic value that will be equivalent to the
ad
valorem rate in the Tariff Act of 1930 on the basis of foreign value. By
equivalent rate is meant a rate that will yield the same revenue
when
applied against the "domestic value" as does the rate for the
same article
In the Tariff Act of 1930 which is levied against the "foreign "value.
This
picture is obtained from the Hawley-Smoot rates set up beside their
companion rates, the "converted" figures computed by the Commission
from
the vast body of data obtained from the detailed investigation.
While work to collect the necessary data was started early in
1031, much
of it has been done during the present fiscal year. Direct examination of
the transactions in many thousands of commodities were made in the
field.
After transcribing the basic records in the offices of importers of
various
types, such as general wholesale importers, importing jobbers, chain stores,
department stores, mail order houses,and obtaining data from the
important
custom houses, the real job of testing,selecting, organizing and
summarizing
the material occupied a force of nearly 150 persons for many months.
Nearly a thousand rates of duty based wholly or partly on the value
of the
article had to be studied in detail and then converted in detail from
the
existing basis to a rate based on the domestic value as found for
the article
through this broad investigation. The manuscript of the report is now
in
the printing office. The printed report will be available after July 1.
Brief tabulations of applications received, investigations instituted
by
the Commission and tariff changes by proclamation of the President during
the mat two years are appended.
Special Committee of House Ways and Means Committee Named to Investigate Conflicting State and
Federal Taxes—Systematic Investigation Must
Precede Co-ordination of Conflicting Income
Sources, Secretary Mills Declares.
An investigation of State and Federal taxes with a view to
suggesting methods of eliminating those which conflict, will
be made by the House Committee on Ways and Means this
summer, according to an agreement reached by that Committee June 16. A sub-committee was appointed to conduct
the investigation with instructions to "begin its sessions
soon after the adjournment of Congress," according to a
statement issued by the Majority Floor Leader, Representative Rainey(Dem.)of Carrollton, Ill. The "United States
Daily" of June 17, in reporting this, gives Mr. Rainey's
statement as follows:
This morning in the Ways and Means Committee, the Committee, realizing the importance of the complete reconsideration of all of our tax system'
Volume 135
Financial Chronicle
both Federal. State and local, adopted a resolution appointing a sub-committee to sit during the vacation for the purpose of investigating State and
Federal taxes with a view to suggesting methods of eliminating conflicting
taxes, leaving to the States, if possible, certain fields of taxation, and reserving for the Federal Government certain fields of taxation.
A committee was appointed and instructed to begin its sessions soon
after the adjournment of Congress and to make a complete investigation
of the subject and to report back at the next session of the present Congress.
The committee appointed was composed of the following members:
Representatives Vinson (Dem.) of Kentucky, Chairman; Cullen (Dem.),
of New York; Lewis (Dem.), Maryland: Crowther (Rep.). New York, and
Chindblom (Rep.), Illinois.
From the "United States Daily" of June 18, we take the
following:
In the study which the sub-committee of the House Ways and Means
Committee will make during the summer months of the duplication in
State and Federal taxes, the purpose will be toward a reduction in taxes,
it was stated orally June 17 by Representative Vinson (Dem.), of Ashland,
Ky., Chairman of the sub-committee.
The work of the sub -committtee will include investigations into practically
every field of taxation both State and Federal, and in determining from
which each should withdraw so as to eliminate as far as possible the existing
injustices caused by the imposition of both a State and Federal tax on
certain industries, it was pointed out by Mr Vinson, who was the sponsor
of the investigation.
Tobacco Taxation Cited.
Declaring that the matter was brought to his attention at first through
the double taxation imposed upon the tobsrpo industry, Mr. Vinson said
he proposed the investigation to the Ways and Means Committee and that
they approved his motion at its executive meeting of June 16.
The purpose of the investigation, according to Mr. Vinson, is expressed
In the motion which he made before the Committee on June 16, in which
it is stated:
Text of Authorization.
"The sub-committee is authorized and directed to make an investigation
and study of the overlapping, duplication and lack of correlation, in the
imposition of taxes by the United States and the States, the legal and
constitutional limitations on the taxing powers of the United States and the
States, giving rise to maladjustments of Federal and State taxation, method
of attaining co-ordination in the administration of the tax laws of the
United States and the several States, and all problems which, in its opinion,
arise in connection with the relations of the States and the United States
with respect to taxation."
"It will be our endeavor to avoid duplication in taxation," Mr. Vinson
stated. "We are not searching for new taxes. I want that made clear.
Propose to Reduce Taxes.
"On the contrary, it is our purpose to reduce tax burdens. And this
comes at a time when reductions in Government expenditures should in
itself reduce tax burdens and at a time when the State governments can
withdraw from the fields in which they do not properly belong, and the
Federal Government from the fields which do not properly belong to it.
"When our sub-committee was working on the recently enacted tax bill,
we found that when we went to look for taxes both the State and Federal
governments had taxes on the same articles. Of course, it is a question
of which was first in the particular field, and which is invading the fields
of the other.
Duplication in Cigarette Levy.
"As an instance, let me point to tobacco. The Federal Government
has had a tax on tobacco since about 1800. Within recent years 13 States
have imposed a tax on tobacco and this has resulted in a montrous burden
on the tobacco industry.
"To-day in the State of Arkansas, on a package of cigarettes selling at
15 cents. the Federal Government has a tax of6 cents and the State Government gets 5 cents as tax. This leaves only 4 cents to go to the industry
itself—the merchants, retailers, growers, &c.
"There is also a duplication of taxation as between the Federal and State
governments in the case of the income, estate and excise taxes, among
many others. And as to gasoline, even the cities, in some cases, impose
a tax to be added to that charged by the State governments plus that of the
Federal Government. The burden is tremendous.
"It is soy contention that the more taxes that are placed upon a commodity, the more that industry suffers."
State Co-operation Sought.
Mr. Vinson explained that the Committee will undertake to contact
every State in the Union to get from their governors and tax experts their
views and suggestions on this question, which he said is of vital interest
to the States, and will have to look into the various taxing systems used
throughout this and other countries.
"This is an era in which a reduction of governmental expenditures is
demanded," Mr. Vinson said, "and it is a fine time to develop a system of
just taxation. It is not fair for some industries to be doubly taxed wale
others are only subjected to the one tax, either State or Federal."
The Treasury Department has given its approval to such an investigation
as that which the sub-committee proposes to make. This was done by the
Secretary of the Treasury, Ogden L. Mills, when he appeared before the
House Committee on Ways and Means during the hearings on the tax bill.
Approved by Secretary Mills.
Representative Bacharach (Rep.), of Atlantic City, N. J., asked the
Secretary why the Treasury Department did not include in its original tax
recommendations a tax on gasoline.
"Well, Mr. Bacharach," the Secretary answered, "that is a very close
question. The Treasury Department did consider it very, very seriously,
and I think that the only reason which led us at the last not to recommend
it was the feeling that on the whole the States had looked upon the gasoline
tax as one which more or less belonged to them, and on which they were
relying to a very great extent.
"I want to say this, however, that if the States continue to trespass on
what have always been regarded as taxes that belonged peculiarly to the
Federal Government, the tobacco taxes—if the States continue, and they
are doing it to an increasing degree, to impose tobacco taxes, then I say
unhesitatingly we are justified in trespassing on State taxes and levying a
gasoline tax. I think there ought to be comity between the State and
Federal governments."
Gasoline Levies Discussed.
"Do you not think now is an opportune time to put a tax on gasoline, as
a notice to the States that put a tax on tobacco?" Mr. Bacharach asked.
"I think it brings in $400.000,000."
233
"More than that," Secretary Mills answered.
"Yet you want to increase the tax on something from which the States
are getting part of the revenue, while on gasoline, which is easier to tax than
any other commodity, a tax is not recommended by the Treasury Depart
ment?" Mr. Bacharach continued.
"I am telling you frankly the reason," replied the Secretary.
System Declared Confused.
"It is a very attractive tax, and it was a very tempting tax, but on the
whole our taxation system in this country is sufficiently confused, that if we
get reasonable comity between the States and the Federal Government as
to what properly belongs to the States and what properly belongs to the
Federal Government, we will tend to decrease this confusion. That is the
only reason. It is the most tempting tax I know of."
Later during that testimony, Mr. Mills and Mr. Vinson became involved
in a controversy as to whether or not a tobacco tax is passed on to the
smoker or is borne to a great extent by the producer, the former contending
the smoker pays the tax.
Treasury Aid to Be Asked.
Mr. Vinson stated that as soon as the sub-committee completes its
organization routine, the Treasury Department will be asked to co-operate
with the sub-committee throughout the investigation.
Mr. Vinson stated that he has not yet definitely thought out the question
as to what form of legislation would be necessary to place in effect any
recommendations the sub-committee may make. That, he said, will depend
to some extent as to what develops during the investigation.
Urged by Secretary Mills.
The country needs correlation of Federal and State taxation to eliminate
duplication which now results in crushing burdens, high administrative
costs and irregularities, Ogden L. Mills, the Secretary of the Treasury,
declared orally June 17, in connection with the action of the Ways and
Means Committee.
Because of current interest in taxation, "this would seem to be an auspicious moment to make a start," but none of the suggestions for improvement are wholly satisfactory, according to the Sceretary. The Treasury
has urged the appointment of a commission with half of its members selected
by the President and half by the Governors' Conference to attack the problem, Mr. Mills said.
Sketching three suggested ways of eliminating State-Federal conflicts,
Secretary Mills pointed out difficulties inherent in each of them. A thoroughgoing separation of Federal and State tax sources would avoid overlapping, reduce the costs of administration and free the activities of both
the States and the central Government from interference by the other, but
any complete separation probably would prove too inflexible over a long
period of time and might deny important revenue sources to either the
States or the Federal Government, be said.
Discusses Federal Tax Credit.
"Something could undoubtedly be done along this line, but it is doubtful
If this remedy would be sufficient," Secretary Mills stated orally.
"Some observers advocate an extension of the principle now used in the
Federal estate tax—the allowance of a limited credit against the Federal
tax for a similar tax levied by the States," Secretary Mills continued.
"Such a change might achieve a large degree of simplification, but it
would practically force the States to adopt taxes similar to those of the
Federal authority, robbing them of much of their autonomy and concentrating too great power in Washington," according to the Secretary.
Inter-State Commerce Levies.
A third suggestion is the enactment of a law which would permit the States
to tax directly Inter-State commerce under prescribed conditions and in
accordance with specified methods. This reform could follow the general
lines of the Federal Act governing taxation of national banks by States,
Secretary Mills pointed out, but such a law might be held unconstitutional
although a strong case could be made out for its validity.
"Considering the obvious objections and limitations to the various plans
for eliminating or reducing the evils which beset us in this field, the only
safe conclusion is that there exists an urgent need for systematic, unbiased
and comprehensive study of these problems before we can hope to secure
the co-ordination in our State and Federal systems of taxation which we so
sorely need," according to the Secretary.
United States Senate Confirms Renomination of T. V.
O'Connor as Chairman of United States Shipping
Board—Opposition by Senator McKellar--Chairman Defended by Senator White Against Charges
of Government Waste.
Although vigorously opposed by Senator McKellar(Democrat), of Tennessee, the renomination of T. V. O'Connor
of Buffalo as Chairman of the United States Shipping Board
was confirmed by a vote of 35 to 16 in the Senate on June 20.
The Associated Press accounts from Washington, June 20,
said:
The Senate acted after a warm debate in which Senator White, Republican, of Maine, defended Mr. O'Connor against Senator McKellar's charge
that he wasted $22,000,000 of Government money by making loans to
shipping lines at low interest rates.
"At no time when these loans were made was the Chairman on the Loan
Committee of the Shipping Board," Senator White said.
"This man, so far as I know, has been faithful, intelligent and honest
in the performance of his duty."
Mr. White contended that Congress and the Treasury were responsible
for the low interest rates, as the loans were made on rules laid down in the
law and on the certification of the Treasury Department.
Carrying on the fight he launched last Saturday (June 18), Senator
McKellar said the Shipping Board had sold for $64,800 a ship which cost
$1,804,000, and paid out of that $44,500 for repairs, getting only $21,300.
"How is it possible to explain a thing of that kind," asked Senator Howell,
Republican, of Nebraska.
"It can't be explained," Mr. McKellar replied. "There is no doubt this
in the most ideal man that could be found in America for the Shipping
Board interests."
He charged that the Shipping Board was guilty of "woeful, wanton
waste," and that "it is a race between the Farm Board and the Shipping
Board" to spend money.
Eleven Democrats and five Independent Republicans voted against
confirmation. They were: Democrats—Bankhead, Black, Bulow, Costigan, Hayden, King, McGill. McKellar, Neely, Thomas of Oklahoma and
Trammell. Republicans—Blaine, Frazier, Howell, LaFollette and Norris.
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Financial Chronicle
Senator Copeland, Democrat, New York, asked that the confirmation
be made to apply as of June 9, when Mr. O'Connor's appointment expired,
but Senator McKellar objected.
H. H. Heimann Challenges Business to End Huge
Annual Waste, at Opening of National Credit Convention in Detroit-Fraud Losses in 1931 $7,500,000,000-Urges Putting Credit to Work.
Challenging American business to put an end to the
billions of dollars of economic waste in this country annually.
Henry H. Heimann, Executive Manager of the National
Association of Credit Men, on June 20, opened the 37th
annual convention of the Association by pointing out to the
1,000 credit executives assembled from the entire country,
that the country's fraud loss was four times greater than
the sum of the net incomes of the 1,500 biggest industrial,
utility, and railroad companies of the nation.
The net income of these companies in 1931, the credit
chief stated, dropped to less than $2,000,000,000 from the
1929 total of $4,500,000,000 butfraud losses have continued to
rise year by year to the staggering sum of $7,500,000,000
in 1931. "If we could save even a small proportion of the
vast wastes that are poured into the great American ash
can each year," Mr. Heimann emphasized, "it would easily
spell the difference between prosperity and depression."
Mr. Heimann added:
It is a conservative estimate to attribute to traceable facts billions of
dollars in economic waste in this country annually. Our annual fire losses
reach the staggering sum of $500,000,000. It is estimated that the financial
loss through frauds approximates $3,860,000,000. Of this sum, over
$1,000,000,000 is accounted for by tax and insurance frauds. Credit
frauds, without taking into consideration bankruptcy liabilities, exceeds
$400,000,000. The bankruptcy losses of this country reach the tremendous
total of $1,000,000,000 annually, and at least 25% of these losses are recoverable. Bankruptcy is largely a commercial credit problem and the
National Association of Credit Men is particularly concerned with its
administration.
One of the primary reasons for our economic losses and
the current depression was described by Mr. Heimann as
"the discounting of the individual." He had some praise
to extend to the commercial credit grantors of the nation,
whom his association represents. Mr. Heimann further
said:
Commercial credit was for the most part extended along reasonable
lines. This does not hold true relative to other types of credit. The utter
lack of confidence that has beset the nation and that has taken its toll by
way of discounting the individual, has been a major contributory factor
to the present deplorable situation. The moral risk of a man as such, it
seems in certain fields has been wholly discounted. All of the integrity, all
of the character and all of the performance that may have been given in the
past seems to count for naught.
It behooves every man to ask whether after all this lack of human confidence in this severe depression has been due to the fact that men have
banked on colateral rather than character, on balance sheets rather than
balanced judgment, upon mortgages rather than human bonds. The
world drew no character report or a business procedure report on Hairy,
Stinnes, Custris, Gualinos, Lowenstein, Kreuger, or the Bank of the
United States, and its people are paying the penalty.
Putting credit to work is the only way to put business to
work, the credit head continued, explaining that "in selecting
'Working Credit Means Working Men' as the keynote
theme of our Convention program, I do not have in mind
that putting credit to work means the inflation of credit.
It is not the lack, but the congealed condition of credit that
is holding up the ship of commerce. There is sufficient credit
available in the nation. It is the lack of normal circulation
and velocity of credit that has prevented the resumption of
normal buying, and consequently normal production activities. The proper distribution of credit through all economic
channels is essential in developing a return of confidence."
The speaker also said:
Legislation and panaceas put forward to create new cerdit fall wide of
the mark. The credit is here and it behooves everyone interested in its
administration to see that this available credit is fully employed. To have
our economic storehouses filled with stagnant credit is to add further to
the credit unemployment situation. Our solution does not lie in credit
inflation. We must not forget the indisputable fact that liquid credit
means solid business.
As a means to accelerate circulation of credit, Mr.Heimann
advocated greater use of the trade acceptance, saying:
The Reconstruction Finance Corporation, the Glass-Steagall Bill, and
the open market operations of the Federal Reserve System, have given to
banks a measure of much needed liquidity. Bankers, have, however, been
severely criticized because they haven't passed on this liquidity to industy
and business. One of the most important reasons behind the bank's reluctance to pass this credit on to business has been the scarcity of good
commercial paper. As the bond market is not conducive to invesment.
except in very high grade issues, the banker feel that to expand credit
generally might result in their return to a frozen condition.
In an endeavor to make available to the banks a type of paper that
would be very attractive and at the same time enable banks, through the
purchase of such paper to indirectly pass on to business and industry the
helpfulness they have received, we are launching a vigorous program to
Increase the use of trade acceptances. This plan involves the adoption by
big business of trade acceptance methods of financing, purchases and sales,
thereby providing a large volume of two-name eligible paper.
July 9 1932
Selected Income:and Balance Sheet Items of Class I
Steam Railways for April.
The Bureau of Statistics of the Inter-State Commerce
Commission has issued a statement showing the aggregate
totals of selected income and labance sheet items of Class I
steam railways in the United States for the month of April.
These figures are compiled from reports representing 164
steam railways, including 17 switching and termianl companies. The report in full is as follows:
TOTALS FOR THE UNITED STATES (ALL REGIONS).a
Income Items.
For the Month of April.
1932.
1931.
For the Four Months of
1932.
1931.
1. Net railway oper. income_ $20,711,926 $39,775,727 $87,984,882 $148,671,815
16,416,508 20,482,790 84,978,287 80,579,758
2. Other income
3. Total income
$37,128,432 $60,238,517 $152,963,189 $229,251,573
4. Rent for leased roads_... 11,129,545 11,059,354 43,623,888 43,555,772
5. Interest deductions
44,489,265 44,874,222 177,386,807 178,335,683
2,192,349
2,181,936
6. other deductions
8,442,166
8,400,508
7. Total deductions
657,811,159 $57,615,512 $229,452,681 $228,291,963
2,623,005 d78,489,492
8. Net income
d20,882,727
959,610
9. Div. declarations (from
.
Income and surplus).
2,578,873 18,686,192 56,594,077
9-01. On common stock
589,203
9-02. On met stock
808.481
2.054.552
5.583.134 1fi ails nas
Balance Sheet Items.
Balance at End of April.
1932.
1931.
Selected Asset Items10. Investments in stocks, bonds, &c., other than
those of affiliated companies (Total. Acct. 707) $778,348,668 $840,490,847
11. Cash
12. Demand loans and deposits
13. Time drafts and dem-sits
14. Special deposits
15. Loans and bills receivable
16. Traffic and car-service balances receivable
17. Net balance receivable from agents & conductors
18. Miscellaneous accounts receivable
19. Materials and supplies
20. Interest and dividends receivable
21. Rents receivable
22. Other current assets
Total current assets (Items 11 to 22)
Selected Liability Items24. Funded debt maturing within six months_b__
23.
25. Loans and bills payable
26. Traffic and car-service balances payable
27. Audited accounts and wages payable
28. Miscellaneous accounts payable
29. Interest matured unpaid
30. Dividends matured unpaid
31. Funded debt matured unpaid
32. Unmatured dividends declared
33. Unmatured interest accrued
34. Unmatured rents accrued
35. Other current liabilities
287.039,243
45,881,376
28,815,892
36,098,402
21,103,095
52,368,279
38,738,471
153,101,845
368,563,943
36,587,829
3,978,815
5,683,038
398,250,348
55,438,960
116,000,114
110,494,582
10,829,832
70,091,182
50,771,721
171,422,102
432,103,822
37,618,580
4,780,032
8,636,384
$1,073,940,028 $1,468,235,839
$104,737,686
6151,523.930
279,097,621
142,199,209
66,234,977
90,315,198
220,594,848
300,715,928
71,504,670
69,502,793
167,080,786 c171,007,860
7,853,595
18,713,385
51,188,402
48,939,780
3,389,747
24,571,238
108,120,974
110,160,788
33,049,843
32,727,442
18,327,373
22,347,588
36. Total current liabilities (Items 25 to 35)
$1,016,442,716 61,031,201,187
a Complete data for the following Class I railways not available or inclusion in
these totals: Canadian National Lines in New Egnland, Canadian Pacific Lines
in Maine,and Canadian Pacific Lines in Vermont.
b Includes payments which will become due on account of principal of long-term
debt (other than that in Account 764, Funded debt matured unpaid) within six
months after close of month of report.
c Includes $28,132,816 unpaid interest accrued by Chicago & Alton RR., sueceeded by the Alton RR., as of July 19 1931.
d Deficit.
Revenue of $43,263,£71 Derived in Canada from Manufacture and Sale of Liquor in 1931.
The total Canadian revenue derived from the manufacture
and sale of liquor last year amounted to $43,263,871, according to a report issued at Ottawa on June 20, it is
learned from Canadian Press accounts June 20, which further said:
This was a decline of $13,000,000 from the previous year, and of
$16,000,000 from the peak year of 1929.
Customs duties on imported liquor formed the major portion of the
amount, these totaling $20,093,556. Excise duties on liquor of domestic
manufacture amounted to $12,198,772, while excise taxes-the malt tax,
&c.-produced $6,803,592. On malt the excise duty, brought a revenue
In 1930 of $4,138,910.
Interesting to note is the fact that in 1914 a sum of $9,168,846 was
obtained from excise duty on liquor at the rate of $2.40 per imperial
gallon. In 1921 this rate was advanced to $9 a gallon, and the 1931
figures are on the $9 basis.
Eight of Canada's nine Provinces operate under varying systems of
Government control of liquor. The first to adopt such a system was Quebec, in 1921. Since then that Province had derived net profits amounting to approximately $70,000,000, the banner year being reported in 1930,
when the profits totaled $10,080,613. Last year they dropped to $8,262,188.
British Columbia, which adopted a Government control act in 1921, derived about $35,000,000 in profit from that line of business in its ten
years of operation.
Manitoba and Alberta followed suit in 1923 and 1924, respectively, with
the former Province replacing its legislation by another act in 1928.
More than $10,000,000 has accrued to the Manitoba Treasury in the seven
and a half years, while Alberta has gained approximately $12,000,000.
Saskatchewan's liquor act, operative since 1925, has produced revenue
totaling nearly $13,000,000, and Ontario, under Government control since
early in 1927, has had its Treasury enriched in that period by more than
$43,000,000.
The newcomers among the Government-control Provinces are New
Brunswick and Nova Scotia, in that order. New Brunswick's act stoned
operations in 1927 and from that year the Province's revenues have been
swelled by more than $5,000,000. Nova Scotia, the last to line up with
Volume 135
Financial Chronicle
the seven others, has derived from August 1930 to Sept. 30 1931, a total
of $728,000.
The Province of Prince Edward Island is the only one which continues to operate under prohibitory laws.
Railway Age Replies to Criticisms of Edward A. Filene
as to Reasons for Inefficiency of Railroads.
The "Railway Age," in an editorial in its July 2 issue,
pays its respects in general to self-ordained transportation
"experts" and in particular to Edward A. Filene, Boston
merchant, who, according to the "Railway Age," "having
made a success at selling ribbons, cosmetics and diaper pins,
has discovered that the railroads are inefficient because
they have no research department."
"The railways had to work from 1920 to 1930 under the
handicaps of the most bureaucratic and restrictive regulation
ever applied to any industry," declares the "Railway Age,"
"and of competition with other carriers which were aided
by the State and National Governments both with huge
subsidies and complete freedom from regulation." Continuing the "Railway Age" says:
Under these handicaps they made a record in improving their service,
Increasing their efficiency and reducing their operating expenses which
probably will bear comparison with that made by any other industry,
whether government aided and regulated or not. It would be safe to bet
that the difference between the wholesale prices Mr. Filene pays and the
retail prices he charges for merely buying and selling 80% of his goods
exceeds the total transportation costs included in his retail prices for them.
Mr. Filene contrasts unfavorably the progress of railway transportation with the progress of highway transportation. In 1930 about 34,000
people were killed and almost 1,000,000 injured in accidents on the highways. Highway transportation is at least wonderful as a means of controlling the growth of population. Between 1920 and 1930 the number
of railway passengers killed declined from 229 to 61. or from one passenger
killed for every 5,500,000 carried to one passenger killed for every 11.600,000
carried. The number of railwaY employees killed was reduced from 2,578
In 1920 to 977 in 1930. or from one killed out of every 805 employees to
one out of every 1,553 employees. The average number of freight cars
per train increased from 37 to 48, or 32%. The average speed of freight
trains per hour increased from 10.3 miles to 13.8 miles, or 34%. The
number of tons of freight moved one mile per train hour increased 48%•
The number of pounds of fuel consumed per 1,000 gross ton miles was
reduced 30%. Loss and damage of freight was reduced 71%• While
crime was rapidly increasing throughout the country, the efficiency of
railway police reduced pilferage and robbery of freight cars more than
90%. The railways paid a slightly higher average wage per hour in 1930
than in 1920, and meantime reduced their annual payroll $1,165,000,000.
Their total operating expenses in 1930 were almost $2,000,000.000 less
than in 1920, or a reduction of about 30%. Did Mr. Filene know these
facts when he made his speech? If so, he made a deliberately dishonest
speech. If not, he made a deliberately ignorant speech.
Is anybody fool enough to believe that without vast research by the
railways and the railway equipment and supply industry there could have
been made as much progress in railroading as there was made between
1920 and 1930? The railroads have done much research work for themselves but what many of those who discuss this subject do not know is that
the railroad industry actually is divisible into two parts—the railroads
themselves, and the railway equipment and supply manufacturing industry—and that almost every railway manufacturing plant is virtually
a research plant for the railways.
The nation has a transportation emergency confronting it because, for
more than a quarter century, it has accepted the transportation views of
inspired dry goods merchants, subsidy seekers and economic quacks instead
of the transportation views of men who have had experience in the railroad business and have actually studied the technical and economic problems
of transportation. Henry Ford entered the railroad business like a lion,
and retired from it like a lamb because he found that, after having become
a billionaire in making cheap automobiles, he could not successfully run
even a small railroad as long as the Inter-State Commerce Commission
could get him indicted If he ran it as he saw fit. Now we have a Boston
stuffed prophet appearing in the guise of a dealer in ladies' step-ins inviting
railroad men to walk up to his lingerie counter and learn from him.
As we have now heard from Mr. Filene, why not get the views of Amos
and Andy on the transportation problem_ They are even more successful
in their line than Mr. Filene is in his, and therefore have more reason than
he for considering themselves authorities on everything. As authorities
on transportation they have only one disadvantage as compared with
Mr. Filene—they know something about it because of their long experience
In operating the Fresh Air Taxicab Company.
Wages and Salaries Cut 5% by New York Central
Railroad Effective July 1.
The cut of 5% in wages and salaries announced by the
New York Central Railroad Co. on June 14, became effective July 1. The reduction only affects employees who
are unorganized. This change follows, but has no bearing,
it is stated, on the 10% reduction accepted by unionized
forces Feb. 1 for a period of one year. Salaries of officers
receiving over $500 a month were reduced from 10 to 20%
on Oct. 1 1931, the higher percentage affecting the larger
salaries. A 10% reduction was made in salaries of from
$350 to $500 a month by the company effective Nov. 1.
•Pensions were also reduced from 10 to 15% by the road on
January 1.
First Recapture Suit Filed for Inter-State Commerce
Commission—Government Demands $696,705 from
Fredericksburg & Potomac Road on Two Years'
Earnings.
Action was taken on July 5 by the Government against
the Richmond Fredericksburg & Potomac RR. in the Su-
235
preme Court of the District of Columbia to recover $696,705,
which, it is contended, is the unpaid balance of the defendant's recapturable excess income for the years 1922 and
1923. A dispatch from Washington, July 5, is quoted
further as follows:
"The Inter-State Commerce Act, as amended in 1920, provides that when
In any year a railroad receives net railway operating income in excess of
6% of the value of its railway property, it shall pay one-half of such excess,
commonly called recapturable excess income, to the United States," the
Department of Justice said.
"The Inter-State Commerce Commission is required by the Act to administer any amounts so paid as a revolving fund for the purpose of making
loans to railroads. More than a year ago the Inter-State Commerce Commission determined, after a full hearing, that the unpaid balance of the
defendant's recapturable excess income for the years 1922 and 1923 was
$696,705.68.
"The Government's bill of complaint alleges that payment of this sum
has been demanded, but that the defendant has filed to make payment.
"There has been previous litigation growing out of the provisions of the
Inter-State Commerce Act dealing with recapturable excess income, but
this if; the first suit brought for the purpose of recovering such income."
Ethelbert Stewart, Commissioner of Labor Statistics
at Washington Loses Post Through Age Limit
Provision in Omnibus Economy Bill.
The fact that the United States Department of Labor lost
24 employees, including Ethelbert Stewart, Commissioner
of Labor Statistics, was noted in these columns last week,
in our item (pages 58-59) in which we referred to the signing
by President Hoover of the Omnibus Economy Bill. The
dropping of Commissioner Stewart from the Government
payroll, occasioned the following from Washington July 2,
which we take from the New York "Times":
Ethelbert Stewart, Commissioner of Labor Statistics and widely recognized as the foremost analyst of labor conditions in the United States, arose
to-day to find himself without a job. He is resting up a bit, he says, before
starting out on his "job hunt."
Commissioner Stewart left his office at the Labor Department yesterday
after having been continuously on the Government rolls for 45 years. To
meet the age limit provision in the Economy Bill he was recommended for
retirement. His plea for an extension failed to obtain the proper endorsement,however, and his name was excluded from the list of valuable officials
who, at the direction of President Hoover, received extensions yesterday
because he deemed their service indispensable at this time.
"I have still a lot of pay dirt left in me and I have a number of matters
up my sleeve." said the 75-year-old statistician, "and I'm a long way from
being through."
On the wall of the Labor Commissioner's office hung a framed commission
parchment bearing the signature of President Hoover and stating that Mr.
Stewart's appointment was to run until Dec. 19 1933. On the civil service
rolls there was a notation that his retirement extension was good until next
April.
It has been common knowledge among those familiar with the Labor
Department that Mr. Stewart has not been on the best of terms with
Secretary of Labor Doak since an open break occurred between them about
-four months ago. Secretary Doak stated at a conference with newspaper
men about that time that employment throughout the United States was on
the increase. His statement, he explained, was based upon data supplied
by an aide.
Not sure of their ground, the newspaper men went direct to Mr.Stewart,
to discuss the announcement, whereupon the aged statistician reached for a
telephone and informed the Secretary that his data did not warrant such
an announcement.
Secretary Doak was reported to have recalled the reporters to his office,
advising them to disregard the announcement and at the same time inviting
them to be present at a conference later in the day between Mr. Stewart
and himself. The conference was held as scheduled in the Secretary's office
and Mr. Stewart was rebuked by Mr. Doak in the presence of newspaper
men.
Mr. Stewart refused to-day to discuss the affair.
"All I will say now," he stated,"is that I have a contract with the Government and it has been broken."
"Retired," he shouted. "Please don't put it that way. It is not a
proper word. Please say for me:
"I have had a tin can tied to the end of my coat tail."
Inter-State Commerce Commission Rejects Request of
Michigan for Inclusion of State in Eastern
Standard Time Zone.
The Inter-State Commerce Commission has rejected the
request of the State of Michigan that the Eastern Standard
Time zone be extended to include the full State within that
time zone. A Washington dispatch to the "Wall Street
Journal" of June 6, indicating this, added:
Commission said that granting of the Michigan petition to the extent
of including the lower peninsular in the Eastern zone and placing the
Eastern boundary at the State line is wholly impracticable. "It is so
fraught with operating difficulties and danger of accident as to be contrary to sound public interest," Commission stated. Furthermore it was
said, such action would not be in accord with provisions of the standard
time act which require Commission to fix zone boundaries with due regard
for the convenience of commerce and the existing junction points and
division points of the railroads.
Daniel Willard of Baltimore & Ohio RR. Looks for
Improved Conditions Following Completion of
Legislative Program By Congress—Favors Modification of Prohibition Law and Extension of Debt
Moratorium.
Steady improvementin conditions after Congress shall have
completed its legislative program, is looked for, Daniel
Willard, President of the Baltimore & Ohio RR., who. in
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Financial Chronicle
addressing the Alumni Dinner of the University of Rochester,
at Rochester, N. Y., on June 20, said: "I feel and believe
that we are at the bottom of the depression through which we
have been passing and from now on we may reasonably
hope for a gradual but none the less constant improvement."
Upon the occasion of his address, the degree of Doctor of
Laws was conferred upon Mr. Willard by the University.
In his speech Mr. Willard dwelt upon economic conditions,
as a result of which, he said "the railroads as a whole are
carrying to-day less than 50% of the volume of business that
they were carrying three years ago. All of these reductions
in industrial activity have resulted in throwing thousands
of men out of work, and the most important problem confronting us now is how to restore industry in general, not to
the hectic conditions existing in 1929 but to what might be
considered a normal condition for a nation with more than
120,000,000 population."
In part he added:
July 9 1932
or amended, it will be done in such a manner that the saloon will never
return, and that is a great accomplishment of itself. But it should be
possible to so amend the law that not only would the saloon be forever
abolished, but the control of the liquor traffic so established as to remove
the most serious objections which exist to-day,and that too in such a manner
as to really promote temperance, and I doubt very much if the existing law
has done that. I am convinced, however, after such trial as it has already
had, that whatever it may have accomplished, it has certainly not accomlished what its proponents had hoped and expected, and it has certainly
been responsible for a very great and growing disregard for the law. It
seems clear now that sincere efforts will be made to correct the evils of the
present situation in light of our 12 years experience.
Consumption of Coal by Class I Railroads and Electric
Power Plants in April 1932 Showed Declines of
20.4% and 21%, Respectively, As Compared With
the Corresponding Period in 1931-Coking Coal
Consumed in May at By-Product Plants Off 43.8%.
According to the United States Bureau of Mines, Department of Commerce, consumption of coal by class I
railroads and electric power plants in the United States
during the month of April 1932 fell off 20.4% and 21%,
respectively, as compared with the same period last year.
The total amount of coal charged into by-product ovens
during May 1932 declined 43.8% from the same month in
1931. The Bureau's statement follows:
First of all I think it is generally accepted that a condition of satisfactory
business activity can only be had when there is a sufficient degree of confidence in the stability of our institutions and in the future to justify men in
assuming the hazards necessarily associated with all business endeavor.
I think we might well assume that the most important thing, if there is any
one thing more important than some other, in order to bring about a business revival, would be to take such steps as might be necessary to allay the
feeling of uncertainty and lack of confidence which has become general
during the last three years. Happlly this fact was understood and appreCONSUMPTION OF COAL BY CLASS I RAILROADS IN ROAD-TRAIN
ciated not only by the President of the United States but by the members of
AND YARD-SWITCHING SERVICE AS REPORTED BY THE INTERCongress, irrespective of party.
STATE COMMERCE COMMISSION.
It is just as important that a Nation should live within its income as it
Is that a corporation or individual should do so. It is a matter of common
Number Net Tons Consumed.
Decrease.
Railroad Region.
of Roads
knowledge that the United States as a Nation or Government has not been
Reporting.
Apr.1932
Apr.1931
Na
Tons. P.C.
living within its income during the last two years at least, in fact has been
running a very large deficit each year, and there could be nothing but lack
New England
11
228,923 263,449- 36,526 -131
Great Lakes
of confidence in the future of a Government carried on in such fashion,
27
1,131,611 1,329,538- 197,927 -14.9
Central Eastern
25
1,474,533 1,822,182- 347,649-19.1
Just as there would be nothing but lack of confidence in a corporation or an
Pocahontas
4
285,087 358,321- 73,234 -20.4
Individual who managed his affairs in a similar manner.
Southern
23
944,893 1,263,168- 318,275-25.2
Northwestern
Consequently, a real effort has been made by Congress to balance the
17
650,129 821,215- 171,086 -20.8
Central
Western
21
659,436
856,499- 197,063 -23.0
budget. To that end a bill has been passed designed to increase the
Southwestern
28
207,900 299,160- 91,260-30.5
taxes which the Government will collect by approximately $1,250,000,000
Total
per annum, and efforts have been and are being made to reduce the ex156
5.580.512 7,013,532 -1.433,020 -20.4
penses of the Government as much as $200,000,000 to $400,000,000 Per
CONSUMPTION
OF
COAL
BY
ELECTRIC
POWER PLANTS IN THE
annum. We are assured by the Administration in Washington that if all
UNITED STATES AS REPORTED BY THE UNITED STATES GEOthis is done it will have the effect of substantially if not entirely balancing
LOGICAL SURVEY.
the budget unless business should become very much more depressed than
it is at present, which is hardly possible.
Number Net Tons Consumed.
It is true that there are some who say that the efforts which have been
Decrtase.
Consuming Region.
of Plants
made in this connection have fallen short of what they should have been
Reporting. Apr.1932 Apr.1931 Net Tons. P.C.
and that it will be found that taxes have not been raised sufficiently in
New England
the aggregate, and that the expenses of the Government have not been
62
116,959 156,810
39,851 -25.4
Middle Atlantic
150
899,268 1,024,461
sufficiently reduced in the aggregate to have the effect of making the in125,193 -12.2
Ohio
85
260,833
346,318
85,485-24.7
come and outgo balance. Perhaps no one can speak with definiteness
Southern Michigan
37
112,160 162,074
49,914 -30.8
upon that subject at the present time. We will have to await developIllinois-Indiana
116
442,102 598,537
158,435 -26.1
Lower Missouri Valley
164
172,018 231,449
ments of the future, but in any event I believe it must be admitted that
59,431 -25.7
Lake Dock Territory
117
98,229 136.035
37.806 -27.8
a genuine effort has been made to accomplish that result and if it should
Southeast
158
161,850 209,082
47,232 -22.6
develop that the actual result falls short of expectations it will not be a
Southwest
44,997
53,510
8,513 -15.9
So. Rocky Mountain
difficult matter for Congress at the next session to take such further steps
37,474
26,045
11,429-30.5
No. Rocky Mountain
97
7,046
8,899
as may then seem necessary ,but it is by no means certain that any such
1,853 -20.8
Pacific
additional steps will be necessary. A definite purpose has been announced
not merely by words but by action and the result, if not entirely satisfacTotal
986
2.341,507 2.964,649 -- 823,142 -21.0
tory, ought to be helpful and stimulating. . . .
CONSUMPTION OF COKING COAL AT BY-PRODUCT PLANTS, AS
It seems to me. and I speak with all modesty and in no sense as one
REPORTED TO THE BUREAU OF MINES.
having knowledge of the matter not within reach of the average individual
that things will not be entirely satisfactory in our country or in the world
Number Net Tons Consumed.
until the question of war reparations and related payments has been put on
Decrease.
Consuming Region.
of Plants
a more definite and satisfactory basis than at present.
May 1932. May 1932 Map 1931 Net Tons. P.C.
It so happens that I was one of that number who would have been glad
New England
5
191,160 217.013
after the end of the war if the question of such payments could have been
25,853 -11.9
Middle Atlantic
24
1,006,995 1.826.419
819.424 -44.9
definitely settled at that time and in such a manner as would have enabled
Ohio
14
273,202 576.958
303.756-52.6
all of the war stricken nations to regain with the least delay their economic
Southern Michigan
7
258,926 311.662
52,736-16.9
stability. Unhappily at the immediate close of the war and with the state
14
300,223 718.265
418,042-58.2
Lower Missouri Valley
118,956 133,584
of mind necessarily existing at that time among all the people of all the
14,628-11.0
Lake Dock Territory
nations involved in the great conflict, such an agreement was impossible.
Southeast
13
323,066 624.253
-48.2
301,187
It is frequently said that if this country were to forego for a time the interest
Mountain and Pacific
3
45,854
74,844
28,990-38.7
payments which it is now entitled to receive by virtue of definite agreements.
Total
86
2.518,382 4,482,998 -1,964.616-43.8
it would place an unbearable burden upon the American taxpayer. Those
who say that must forget that the burden is already there. Our Government
In order that it might loan the large sums of money which it did loan to its
Harry A. Wheeler, Chairman, Railway Business
Allies or associates for the purpose of carrying on the war was obliged first
of all to borrow the money from the American people and on the money so
Association, Says Concerted Railroad Purchasing
borrowed our Government has been paying the agreed rate of interest
Can Turn Tide of Depression.
regularly since the loans were made. Our burden would not be increased if
for instance the moratorium now existing should be prolonged for 20 or
The present income of the American people, taken in its
more years. It simply would not be reduced. However, I cannot escape
broadest sense, while greatly reduced is still sufficient to
the feeling that action of the kind I have mentioned might have such a
turn the tide of this depres3ion if concertedly and intelstimulating effect upon the business of the world, and consequently upon
our foreign trade, that what we would gain in that respect in the way of
ligently applied, Harry A. Wheeler, Chairman of the Railway
more active business and additional employment, with the resulting inBusiness Association and former Chairman of the United
creased taxes flowing therefrom, would many times offset the relatively
small amount of interest which we are entitled to under existing agreements,
States Chamber of Commerce, told the Purchases and
an amount which is variously estimated at from $250,000,000 to 6270.000,Division of the American Railway Association at its
Stores
Dispatches
year.
from
the conferences now sitting at Lausanne
000 per
annual meeting in Chicago on June 2'4.
encourage the hope that a constructive and helpful agreement in this connection may perhaps be reached.
Reminding the assembled group that in every depression
There are others who hold that before we can have an entirely satisfactory
1893 to 1920 the needed impetus to restore prosperity
from
condition, some modification must be made of our Prohibition Law, and I
was supplied by railroad purchases, Mr. Wheeler urged both
am inclined to be sympathetic with that thought. Whatever else it has
done, one of the by-products of prohibition as we now have it has certainly
railroads and general business not to go beyond the bounda
been a noticeable increase in crime, due to the very reason that those who
of reasonable economy in curtailing purchases for the reason
are willing to indulge in crime are now better financed than ever before
that persistent retrenchment beyond the point of practical
because of the profits of the so-called boot-legging business, and therefore
better able to carry on their lawless undertakings.
adjustments serves only to strangle the nation's recuperaThe American people have been going through a severe school of experience
tive power. Mr. Wheeler said:
In this connection during the last 10 or 12 years and I am inclined to think
The actual buying power of the American people is not being exercised
they have very nearly reached a common accord concerning a number of
essential points related to this problem. I am quite certain that no one • to-day, either by the corporations or by the population. Confidence has
been shattered and faith is lacking. These two qualities must be reto-day would wish to see the saloon restored as it was before prohibition,
stored and action based upon them must be used to reverse present trends.
and I am certain that no matter how the prohibition law may be changed
Volume 135
Financial Chronicle
And why should not we consider this an appropriate time for united
action? Are not promising constructive conditions in sight? Let me
name a few:
Foremost among them is the corrective influence of time. The whole
world is more ready to-day than ever before to face truth, abandon false
hopes and ambitions, and to replace international diplomacy with the
spirit of international co-operation.
The foreign drive against the American dollar has lost its force and
the
gold standard is safe, at least for the present.
A reasonably balanced budget insures National solvency.
A beginning of Government economies with an aroused public sentiment
for further action will be reflected in reduced taxes.
Bank failures have decreased and greater mobility is evident in banking
resources.
The expected enlargement of powers and resources of the Reconstruction
Finance Corporation is extremely hopeful.
Commodity prices are lower than we had ever expected to see and present
inventories are admittedly low.
Finally, and with a feeling of thanksgiving, we are promised the early
adjournment of Congress.
If these favorable indicators are accepted as reasons for confidence
and faith by the people in broadening their purchases and by business
in preparation for better business, car loadings and earnings will
reflect
the upward trend and the depression will have entered a new and hopeful
phase.
Soberly reveiwing the path we have travelled, what do we find?
1. That we completely failed to measure the character of the depression
or its duration.
2. We indulged the false assumption that by co-operative action of
Industry and finance a bridge could be built upon which the nation
could
pass safely over the pit its own folly had digged.
3. We hoped that Federal legislation could rebuild the bulwarks
of confidence by providing palliatives or proposing unsound economic
legislative remedies.
4. We encouraged the American people to believe that they could
rely
upon and benefit by corrective measures from the top instead of taking
off their coats and digging their own way out of the dilemma
in which
they found themselves.
These doubtless provided cushions, but not correctives.
Last Saturday, when General Dawes returned to Chicago he said
to the
press, out of his experience as retired President of the Reconstructi
on
Finance Corporation, "The recovery in the depression will start
from
the bottom up. For real evidence of reaction we must look to the
mass
attitude of our people and not to the shifting opinions of certain
sections.
It is the average man and the average man's business which is the
main
factor in the situation."
Here at last is the truth. Only in the hands of 120.000,000
People
lies
their salvation from complete economic breakdown. The
spirit of the
pioneer days must be reborn. In those days men and women
understood
that the solution of the problem of hard times was simple
living, hard
work to create new wealth and reliance upon themselves for the
restoration
of better conditions rather than expecting either external
interests or a
paternal government to intervene in their behalf.
H. A. Wheeler, President of Railway Business
Association, Warns Railroad Group That Failure
to Revive Earnings Imperils Private Ownership
of Railroads.
The railroads of this country, because they constitute
the largest single interest with the largest buying power
and the largest distributive ability, may have it within
their own power to turn the tide of depression and save
themselves while saving the country from further indefinite
suffering and loss, H. A. Wheeler, President of the Railway
Business Association and former President of the United
States Chamber of Commerce, told the Mechanical Division
of the American Railway Association at its annual meeting
in Chicago on June 23. This they can do, he said, by
making a decision to go forward with the purchase of selfliquidating goods so profitable to the railroads and enormously important to the country. Mr. Wheeler pointed
out that:
Such purchases would at once increase revenue tonnage,
increase employment, increase consuming power through wages
distributed, expand
general business operation, and through this expansion
further increase
tonnage and employment not only to the point of
interrupting the contraction from which we have suffered steadily since 1929,
but also serving
to break the stranglehold of depression and produce an expansion
movement that would restore a measure of normality.
"It is of greatest importance that railroad earnings shall
increase," Mr. Wheeler said, "because:
Railroad securities must be stabilized before other security
issues feel
a permanent, favorable influence.
Falling to secure such stabilization, savings banks and
insurance companies will become increasingly embarrassed in their efforts
to maintain
their reserves.
In the absence of improved earnings, continuing and larger
Inevitable from Government sources to meet fixed charges, loans are
and such
continuation will give the Government a stake in the
roads sufficient
actually to imperil private ownership.
This question of ownership was a hard fought battle in 1920. In the
conferences preceding the passage of the Transportation Act, representatives of the then Administration urged the retention of control by the
Government for a further varying period, and those Individuals and
interests who had neither investment in railroad securities nor directly
provided any of the tonnage to be carried by the railroads, were vociferous
in the expression of their belief that the Government should continue its
operating control.
Mr. Wheeler emphasized that justice alone could not exact
further sacrifice from the railroads that gave so generous
co-operation to the President of the United States in 1930,
when he pledged the important industries to proceed with
their normal operations by continuing purchases and employment beyond their immediate requirements. He went
on to say:
237
It would seem that self-preservation would suggest the railroads entering
the market for the purchase of self-liquidating equipment and supplies,
particularly if payments can be arranged so that no immediate use of any
of their present cash resources will be required.
To urge the roads to again step into the breach may seem unreasonable,
but only the earnings from increased operating efficiency and from increased tonnage will provide required operating earnings, and lacking
earnings, defaults are inevitable.
The railroads of the United States are facing problems more general
and more difficult that any heretofore confronting them, and yet in one
respect at least there is more than a silver lining to the overhanging clouds.
That silver lining is the general and sympathetic public interest that I
find to-day everywhere expressed.
The opportunity now exists to take advantage of this favorable public
sentiment to secure relief from too rigid regulation, to secure the repeal
of certain burdensome legislation, and to bring about either the better
control of competitive agencies or such freedom of action to the roads
as will enable them to compete on terms of equality.
It has always seemed to me that periods of major railroad legislation
come in rather well-defined cycles. One of these is immediately ahead
and will begin to be felt in next winter's Congressional sessions. My
firm belief is that a great opportunity for constructive work exists.
In this the executive group of the railroads hold the key to the situation
because of the necessity that they agree upon a program in which pride
of assumed property rights and prerogative shall be subordinated to a
broad and generous recognition of present-day public interest.
Behind such an agreement can be marshalled as never before the forces
that will make effective, sound and just provisions of law and regulation
to usher in a new day of sympathetic understanding and co-operation.
Export Associations Present Plan to Eliminate Foreign
Exchange Restrictions—Propose Clearing House
for Exchanges to Be Operated As Adjunct of Edge
Act Bank—Support of Federal Government Also
Urged.
With a view to eliminating foreign exchange restrictions,
a plan has been evolved by representatives of foreign trade
associations which proposes:
I. The creation of a specially organized bank to hold foreign currency
deposits.
IL The organization of a voluntary association of importers and exporters, for a clearing house for exchanges to be operated as an adjunct
of the Edge Act Bank.
III. The active co-operation of the Federal Government.
The plan is embodied in a report of the export association's Committee on Foreign Exchange Restrictions. Ray C.
Schlotterer, Secretary of the Drug, Chemical and Allied
Trades Section of the New York Board of Trade, Inc., In
making the report available on June 14, said:
This plan is the crystalized report of several months of study and discussion by representatives of foreign trade associations. To make it
effective, it requires the full and active support of the Government, the
exporting and importing community, and the banks.
The Committee on behalf of the sponsoring associations will now direct
its efforts to put the plan into active operation.
The plan has been discussed during the process of its formulation with
various Government officials, and it is now being submitted to President
Hoover and the heads of the various Departments in Washington in its
completed form.
Among the leading associations which have already given their approval
of this plan are the following:
American Manufacturers' Export Association,
American Foreign Credit Underwriters,
American Foreign Credit Interchange Bureau,
New York Board of Trade, Inc.,
Proprietary Association,
Export Managers' Club,
Drug and Chemical Export Club,
Newark Foreign Trade Club,
Foreign Trade Club of New Haven,
Foreign Trade Club of Bridgeport.
The report follows:
The joint committee of representatives of the various export bodies and
associations, which, during the past month, in a series of meetings, has
been considering the general export situation with particular reference to
foreign exchange difficulties, now submits this report through its subcommittee for the purpose of crystalizing its discussions and presenting
a
concrete plan, which it is believed will result in an alleviation of existing
conditions.
There are two major difficulties to be met, both relating to foreign
exchange. There is the problem of frozen currency deposits. In
some
countries the restrictions prevent the withdrawal of the local currency
from the country. This is true, for example, In Germany, Austria,
Chile,
and Brazil. In these countries many American companies
and business
houses have large sums on deposit in the local currencies. Such
a deposit
constitutes an asset which has only a local value; it has been
deprived
of its character of currency in that it has no value in international
trade,
and the owner may only use it in buying raw materials
to be consumed
domestically or in payment of domestic operating expense
of a branch
of his business. His right to use and dispose of
the asset (the deposit)
as he pleases has been inhibited by the Government.
While this inhibition
continues, the currency may, as has been the case already
in some countries,
suffer serious depreciation, with a heavy resulting
loss to the owners of
such frozen deposits.
The other problem relates to the difficulty
of securing foreign exchange
for the settlement of current transactions.
There
tions now in effect in some 23 foreign countries, are restrictive regulaand these regulations
make it exceedingly difficult for American
exporters to collect for goods
currently sold in these countries. In all of
these countries there are
serious delays in obtaining payment, and in some
cases the exchange control
regulations are so drastic and call for a spread of
installment payments
over such a long period, as to have the practical
effect of forcing violent
price reductions of imported goods by governmental
fiat.
In dealing with these problems there are certain
should be considered preliminarily. It is frequently general ideas which
pointed out that the
exchange problem is fundamentally a question of
trade interchange, and
that our foreign customers as nations must either
pay us in gold or must
have a favorable balance of trade. And this
statement is followed with
238
Financial Chronicle
the general assumption that the countries which are now refusing to
part with dollar exchange, except in small quantities and under severe
restrictions, are suffering from unfavorable trade balances. However, the
actual 'figures show that this assumption is incorrect as to many countries.
For example, we may take Brazil and Colombia, two of our good friends
in South America, with which we have substantial trade relations. According to the figures of the Pan-American Union in its Bulletin No. 92,
Brazil's favorable balance of world trade in 1929 was $39,000,000, and in
1930, $61,000,000. According to the same source, Colombia in 1929 had an
unfavorable balance in world trade of about half a million dollars, but
In 1930 had a favorable balance of trade of over $48,000,000. There are
no complete figures available for 1931, but the Department of Commerce
figures covering the United States-Latin American trade for 1931 show
that as to the United States, Colombia in that year had a favorable balance
of trade of $59,000,000, inasmuch as we export to Colombia about
$16,000,000 and imported from Colombia nearly $75,500,000. These
same Department of Commerce figures as to Brazil for 1931 show that
in that year we exported to Brazil $28,500,000, but imported from Brazil
over $110,000,000, thus giving Brazil for 1931, as to the United States,
a favorable trade balance of nearly $82,000,000. The entire Latin American group for 1929 had a favorable trade balance of $500,000,000, which,
however, declined in 1930 to a favorable balance of 8186,000,000. These
figures, it is true, relate only to trade and do not show the unfavorable
balances on the debt service. But these are far less than the general
trade balances.
Another rather common idea often raised as an objection to any constructive plan is that the American Government cannot interfere with the
domestic trade concerns of foreign governments. This is true, and particularly so in Latin America, where special care should be taken to avoid
kindled by certain episodes and policies
fanning the dying embers of
in the past.
It is the duty of our Federal Government to give some consideration to
the protection of American business interests abroad. This is the policy
followed by the State Department in the past, and followed in the main
with discrimination, diplomacy and effective results. Where American
property rights abroad have been threatened by legislation of is discriminatory and apparently inequitable character, the State Department has used
its influence to protect such American interests. Examples in recent
years are the Mexican and Venezuelan oil legislation, and more recently,
the French tax situation.
To-day, currency deposits owned in certain countries by Americans are
tied up by prohibitory decrees. While such decrees remain in effect there
is a real danger, in view of the prevailing economic conditions, that such
currency deposits will melt away by depreciation—a process which has
already gone on to a considerable extent. A frank analysis indicates that
there is little difference between this process and one of outright confiscation. It would seem that some of these foreign countries, in their natural
and proper desire to protect their currencies and credit, may have swung
the pendulum too far, and it may well be that our State Department, without disturbing our relations of amity with these countries, can induce them
to modify their regulations somewhat, so as to permit more normal commercial intercourse. Certainly, our trade interests, even when well
organized in strong associations, do not have sufficient influence in themselves to deal with foreign governments.
The problem is one which calls not only for concerted action by our
foreign trade associations, but also for the support of the Federal Government.
With these general considerations in mind, a plan is thus presented
involving the following points:
I. The creation of a specially organized bank to hold foreign currency deposits.for
II The organization of a voluntary association of importers and exporters.
:clearing house for exchanges to be operated as an adjunct cf the Edge Act Stank.
III. The active cooperation cf the Federal Government.
These points are in greater detail as follows:
I. The Creation of a Specially Organized Bank to Hold Foreign Currency
Deposits.
This bank would be a foreign banking corporation organized under SecFederal Reserve Act. The bank would
the
of
Act")
tion 25(a) (the "Edge
be in a position to give a collateral loan value to the frozen currency
deposits by supplying the guarantee required by Section 5(a) of the
Reconstruction Finance Corporation Act. This Section provides that the
Reconstruction Corporation may lend on domestic collateral or on a
bank guarantee. The Edge Act banking corporation would give the
necessary guarantee to the Reconstruction Finance Corporation by endorsing the exporters' drafts drawn on the Reconstruction Oorporation. Such
acceptances should, when necessary, be for long terms up to 12 months'
original maturity. The co-operation between this Edge Act bank and the
Exchange for Exchanges, hereinafter mentioned, will offer to the exporters,
granting long-term credits, an opportunity to realize immediately upon
his
the exchange which he will receive at a future date in payment of
export invoice. The guarantees granted by the Edge Act bank would be
extended only to exporters with approved financial responsibility, because
the risk of further currency depreciation naturally would be on the
exporter. He has that risk to-day, but the proposed arrangement would
snake this frozen asset available for use in producing goods and employing labor. There should be no more danger of inflation in such credits
than in the credits now being extended domestically by the Reconstruction
Corporation, particularly as the Edge Act bank could be relied upon to act
with caution in giving its guarantees.
To make the banking corporation workable, large exporters would agree
to give to the Corporation a sufficient volume of acceptances to guarantee
to it a rate of return that would justify interested commercial banks in
furnishing the necessary capital. Exporters would also agree to transfer
their foreign currency balances to this banking corporation in order that
it might centralize negotiations with foreign central banks for the withdrawal of deposits in currency or exportable merchandise.
The proposed banking corporation, having no other function than to
deal with the Reconstruction Finance Corporation and with foreign currency deposits, would be dissolved at the expiration of the Reconstruction
Finance Corporation, and the business conducted by the banking corporation would then be turned over to the Interested commercial banks which
had subscribed its capital and managed its affairs.
II. The Organization of a Voluntary Association of Importers and Exporters, for a Clearing House for Exchanges to be operated as an
Adjunct of the Edge Act Dank.
Through such a clearing house, American exporters who are tendered
foreign currency in payment of their invoices could sell this foreign
currency to American importers who wish to purchase the goods of the
foreign country in question. Such an Exchange would act as a clearing
house both for bi-lateral and multi-lateral exchange transactions, and in
this way any excess of exchange offered by American exporters would be
available for purchase by the importers of other countries, thus giving to
the transactions of the Exchange the necessary liquidity required by world
commerce.
July 9 1932
It may be assumed that the co-operation of the importers may be readily
obtained in the creation of such an Exchange. The United States cannot
long continue to create dollar exchange in payment of our imports from
foreign countries unless those foreign countries will pay their bills due US
for export, either by sending us dollar exchange or their merchandise purchased with their own local exchanges. The very existence of the import
business, therefore, depends upon the continuation of the export business.
III. The Active Co-operation of the Federal Government.
In addition to the creation of the Edge Act banking corporation, and the
clearing house for exchanges, the active support of the Federal Government should be obtained. It has been suggested that before resorting to
the imposition of penalty charges authorized by Section 338 of the Tariff
Act, the President of the United States might call a convention of the
diplomatic and business representatives of all countries which are affected
by drastic currency restrictions. It would focus the attention of the
governmental and industrial leaders of these nations on the trade problems
of their principal foreign customers, as well as on their own domestic
problems, and it undoubtedly would lead to a broader point of view and
enable some effective remedial measures to be taken with the full support
of the governments represented. The result of the deliberations of this
international economic commission regulating depreciated currencies should
be the voluntary relaxation of exchange control regulations to permit
without restriction the exportation of products purchased with local foreign
currency.
Conclusion.
It seems reasonable to expect that the governments of countries that
benefit greatly from their trade with us should, on a further study of the
situation, voluntarily offer some relief. The United States is by far the
best customer of the Latin American nations, taking approximately 34%
of their products as against 20% taken by the United Kingdom, as the
second best customer. When we buy from a country two, three or even
four times as much as we sell to the country, it is only fair and logical
that such country, which is receiving prompt payment from our importers,
should pay for the much smaller amount of goods supplied by our exporters. We are not only Colombia's best customer, but we practically
support her export trade. In 1929 the total export trade was $123,066,000,
of which $92,532,000 was taken by the United States, making the percentage of the total trade taken by the United States 75%. In 1930, of
the total export trade of $109,327,000, $88,926,000 was taken by the
United States, making the percentage 81.3%.
Where such conditions prevail, are we not entitled to be treated as a
favored nation in trade relations? Favored nation provisions as to customs
duties are of frequent use in trade treaties. If applied to tariffs, such
provisions may be utilized with even greater justice in currency regulations
to enable a debtor country to pay its best customer for current purchases.
We believe that the United States and a few other countries which remain on the gold standard are discriminated against, within the meaning of Paragraph E, of Section 338 of the Hawley-Smoot Tariff Act of
1930, by foreign countries whose Governmental control of exchange makes
it impossible for the citizens of the United States to obtain remittances
either in local currency or in exportable products, although the Governments of those foreign countries require American citizens to pay in
"dollars" the bills due those countries. Obviously this discrimination is
a serious menace to our nation's gold reserves. Such a discrimination is
equally against each of those few nations which are still on the gold exchange basis, but is not a discrimination against any of those twenty-eight
nations which are not on the gold exchange basis.
The discrimination of these laws and regulations has the further effect
of prohibiting shipments being made to the United States unless "dollar
exchange" is created by the transaction. This snakes it impossible, for
instance, for an American importer of Brazilian coffee to buy milreis
from an American flour exporter and spend those milreis in Brazil to
buy coffee and ship it to the United States.
In the event that the business and diplomatic representatives called by
the President of the United States to a conference on the exchange problem,
are unable to agree that goods which have been purchased and paid for
in local foreign currencies may be exported free of any exchange restrictions, the President of the United States should be requested by the business
and financial interests of our country to enforce by proclamation the
penalties provided in the Tariff Act. Obviously, the Exchange for Exchanges would be impractical unless foreign currency can be used for
the purchase of exportable merchandise. Obviously also, any plan under
which local foreign currency is restored to its former full trade usage, will
increase the value and purchasing power of that currency.
We believe that this action on the part of the United States would result
In the improvement of trade relations with foreign countries because it
would tend to restore the normal practice of exporting to those countries
goods to be paid •for in the currency of those countries and importing
from those countries goods purchased in the currency of those countries.
Respectfully submitted:
STEERING COMMITTEE OF COMMITTEE ON FOREIGN
EXCHANGE RESTRICTIONS,
George P. Reinberg, Chairman, The Mennen Company.
Louis 0. Bergh, Marvin & Bergh.
A. B. Dad, Salem Glass Works.
John J. Doran, Parke, Davis & Company.
Georges St. Jean, American Manufacturers Export Assn.
Secretary:
Ray C. Schlotterer,
Drug, Chemical & Allied Trades Section,
New York Board of Trade, Inc.
41 Park Row, New York, N. Y.
Postal Savings Deposits Not Taxable in Nebraska.
The Attorney-General of Nebraska, C. A. Sorensen, has
advised the Tax Commissioner of that State that postal
savings deposits are not subject to the intangibles tax.
Advices from Lincoln, Neb., Juno 7 to the "United States
Daily" reporting this gave the opinion as follows:
Under date of May 14 1929 this office, by George W. Ayres, Assistant
Attorney-General, gave an opinion to T. S. Rollins, Director, Postal
Savings System, Washington, D. C., reading as follows:
"You inquire whether in the opinion of this office postal savings deposits
are taxable under the new intangible tax law recently enacted by the
Nebraska State Legislature.
"Allow me to say in answer to your question that in the opinion of
this office postal savings deposits are not taxable in this State. The
language of the State statute IS broad enough to include them, but in view
of the fact that such savings are loaned to the United States Government
Volume 135
Financial Chronicle
239
designated as "the Nema Mutual Unmeployment Benefit
Plan," embracing,it was declared,the first concrete measures
taken by a body of manufacturers to meet this obligation of
employers to employees. The Nema Plan, in accord with
the proposals of Mr. Swope, ignores the dole, and recognizes
the principle of mutuality, both employers and employees
contributing to a common fund. In this respect, it was
pointed out, it differs from other plans; which call for contributions solely from the employer. The Nema Plan is
State Income Tax Like Federal Law Urged in Alabama— applicable in normal times to 200,000 workers. The National
Levy Would Reduce Other Taxes and Pay Current Electrical Manufacturers Association has 300 member comDebts, Governor Says in Message to Legislature. panies with a total output comprising from 85 to 90% of the
A State income tax modeled after the Federal law was purely electrical product of the country. The Policies
suggested by the Governor of Alabama, B. M. Miller, in Division is composed of one representative from each member
Governor
a recent message to the State Legislature. Such a tax company. The Chairman of the Division is former
President
of the
also
who
is
Connecticut,
Trumbull
of
H.
J.
would, in a few years, pay all of the State's current debts,
Committee.on the Swope
aid in keeping the schools open and gradually reduce ad Association. The report of the
valorem taxes, the Governor declared, it is learned from plan said:
In view of legislation already enacted in Wisconsin, and under contemplaMontgomery, Ala., wivices June 10 to the "United States
tion in other States, providing for establishment of funds for unemploy
Daily," from which we al.io quote the following:
ment relief wherein all contributions are made by the employer and none
and that they may. be exchanged for United States bonds, this office is
inclined to hold that they arelnot taxable."
We regret that this appears to,,be the law. The theory on which such
"deposits" are exempt is, of course, that they are not in fact deposits.
The depositor loans his money to the Federal Government and gets in
return a certificate by the terms of which the Federal Government agrees
to pay to the holder of the certificate the amount "deposited" and a certain
amount of interest. The Federal Government issues and is back of these
certificates in the same way that it issues and is back of United States
Government bonds. The State cannot tax any notes or bonds or debentures issued by the Federal Government.
A constitutional amendment permitting the imposition of an income
tax was submitted to the 1931 Legislature, but due to amendments and
changes during passage was declared invalid by the Supreme Court, the
Governor pointed out. The letter follows in full text:
Previous Proposal Cited.
To the Senators and Representatives of Alabama: You will remember
that on June 9 1931, while you were in session, I wrote, and read you in
person, a message in which was stated there should be issued:
"Warrants or notes or bonds in amounts not exceeding $20,000,000 to
pay the deficit of the State as of Oct. 1 1931; to permit a graduated income
tax modeled after the Federal income tax'' to be submitted to the voters
for approval or rejection; and "to pass an enabling income tax bill to be
effective when the income tax amendment is approved by the electorate;
a part of the tax to be ubed to pay annually a part of the bonded debt
and the interest thereon and a part of the tax to be used annually for the
elementary schools of the State."
A constitutional amendment was submitted to you embodying these
ideas; it passed, but was so amended and changed in its passage as to be
unrecognizable;and for that reason it was declared void and unconstitutional
by members of the Supreme Court.
The bonded debts of Alabama, including the $5,000,000 bridge bonds.
amount to practically $66,000,000; the current debts new of Alabama
will exceed $20,000,000; making the total debts in excess of $86,000,000.
Income Tax Collections,
Chief Examiner of Accounts, J. H. Hard, Jr., at my request writes me
a letter and gives with it facts in regard to the Federal income tax as to
Individuals and corporations in Alabama. Copies are hereto attached.
From them these facts are gathered:
1. It gives the facts as to the income tax amounts collected each year
by the United States from Alabama for 16 years.
2. The smallest amount collected any year since 1921 was in 1931, which
was the sum of $4,308,287.
3. The largest amount of tax collected in any one year was in 1918, viz:
$7,791,362. The amount of additional tax in the war tax years is not
included in the comparison of these figures.
4. During the 16 years from 1916 to July 1931 the income tax paid by
Alabama to the United States was the sum of $130,804,777.
Effect on Taxpayers.
5. This shows United States income tax for only 16 years; during that
time the net income to the income taxpayers in Alabama was the sum
of $2,259,902,270. This does not include profits of 1930 and 1931, which
are not available at present. They paid the Federal Government during
that time a tax of the sum of $130,804.777; and this left them a net profit
of $2,140,062,459 plus profits for 1930 and 1931.
6. The Federal Government during the 16 years collected from the
Alabama income taxpayers the sum of $130,804,777. This left with the
Income taxpayers the sum of $2,140,062.459 net protit plus the net profits
for 1930 and 1931. If these income taxpayers had paid Alabama during
those years a similar sum, viz., $130,804,777, this would still have left
in their hands net profits amounting to the sum of 12.009,257,682 and
the profits of the two years 1930-1931.
Would Pay All Bonded Debt.
7. If the Alabama income taxpayers had paid to Alabama during the
16 years the same sum, $130,804,777, that they paid to the Federal Government, this would have been sufficient to pay all of the Alabama bonded
debts, 366,000,000; all of the current debts of Alabama, over $20,000,000;
would have left in the Treasury of Alabama $44,804,777; and the income
taxpayers would have in their possession net profits left to them amounting
to $2,009,257,682, plus the net profits of 1930 and 1931. and Alabama
would owe no debts.
8. During the last four years Alabama income taxpayers paid the Federal
Government the sum of $22,785.705 If a similar tax had been in existence
in Alabama during that four years the revenue would have been sufficient
to pay all the current debts of Alabama.
9. An income tax in Alabama, modeled after the Federal income tax,
will In a few years, pay all of the current debts of Alabama, aid in keeping
the schools open and running and may gradually reduce the ad valorem
tax on real and personal property.
These facts have been made known to me and I feel it my duty to give
them to you for your consideration.
Plan of Gerard Swope to Stabilize Industry and Employment Approved by National Electrical Manufacturers Association.
The plan advocated by Gerard Swope, President of the
General Electric Co., to stabilize industry and employment,
was sanctioned by the National Electrical Manufacturers
Association at its spring meeting in Hot Springs, Va. on
May 16. Acting upon a report of the Committee on the
Swope Plan, appointed in New York last September, the
Policies Division of the Association adopted what is officially
by the employees benefitted. the Committee appointed to consider the plan
presented to the Association by Mr. Gerard Swope in September 1931, has
given its first attention to this feature of his proposal.
The Committee proposes a "Nema Mutual Unemployment Benefit Plan"
which may be independently adopted by any company. It has been prepared in the belief that it will be adjudged by State commissions as equalling if not exceeding the requirements of State measures. If universally
adopted throughout any branch of industry there exist the obviously
desirable possibilities of extension to the industry operation proposed by
Mr. Swope.
The plan includes all employees who have served 12 consecutive months
In either wage or salary relation, and whose full time compensation does not
exceed $2,500 per year, and its institution is conditioned on acceptance by
a minimum of60% ofsuch employees. Except when his earnings are below
50% of normal, each such "participating employee" contributes 1% of his
actual wage over a period of five years, and the company matches his contribution. These contributions must have been made throughout six consecutive months before an employee is entitled to benefits.
Provision is made for two unemployment conditions, namely: normal and
emergency. Under normal conditions and after an initial unemployment
aggregating two weeks, a "participating employee" receives 50% of his
normal average earnings (but not more than $20 per week)for a period not
exceeding 10 weeks in any 12 consecutive months. Provisions for part time
employment are also incorporated.
An unemployment emergency begins when payments from the fund
exceed 2% of the normal pay rate of all "participating employees," and
with its announcement normal contributions and payments cease. There
upon all company employees (excepting only those receiving 50% or less
of normal) contribute 1% of their pay throughout the period of emergency.
This includes non-participating as well as participating employees, those
with leas than one year's service, sales, clerical and supervisory staff, and
also company officers—without salary limitation and whether or not eligible
for benefit. The company matches these contributions.
Emergency payments are made to employees laid off or working part
time and (after any residue of normal contribution has been exhausted) in
amount and for periods set by the administrators and based on the financial
need of the applicant and the funds available.
Seventy per cent of the normal fund is available only for unemployment
benefit. Twenty-seven per cent may be used as a revolving fund for loans
to "participating employees," as approved by the administrators but not
exceeding $200 per person. Three per cent may, in the discretion of the
administrators, be available for the relief of any needy employee or pensioner. The administrators are selected half by the "participating employees" and half by the company.
Provisions are made for the refund to a deceased or departing employee of
his interest in the fund and for corresponding refund to the employer, for
guarantee by the employeer of 50% employment, in which event the
employeer's contribution ceases, for the appointment and powers of
trustees to act as custodians of funds, and for the conditions under which
the plan may be terminated.
The Swope Plan for the stabilization of industry was anannounced at the annual dinner of the National Electrical
Manufacturers Association in New York, Sept. 16 J931.
Mr. Swope urging control of economic forces through the
emancipation of both labor and industry. His plan, it was
explained, contemplates the stabilizing of production and
consumption, and of employment.
Underlying Mr. Swope's proposals are five basic principles,
which he enumerated as follows:
Regularity and continuity of employment through the stabilization of
industry, with unemployment insurance as a reservoir of safety.
Leadership by organized industry to avoid the lack of uniformity and
co-ordination inseparable from direction by the legislatures of the States.
Standardized forms of reports to stockholders to enable them as owners
to be thoroughly and continuously informed as to the progress of their
business.
Co-ordination of production and consumption on a broader and more
intelligent basis for the particular benefit of wage earners.
Promotion of individual initiative and enterprise, and the protection of
the public through Federal supervision.
Mr. Swope recently received the Gold Medal award of the
National Institute of Social Sciences in recognition of his
public service in formulating the Swope Plan. The members
of the Committee on the Swope Plan, which framed the
Nema Plan, are:
Clarence L. Collens, President of the Reliance Electrical & Engineering
Co., Cleveland.
H. B. Crouse, President of the Crouse-Hinds Co., Syracuse, N. Y.
D. H. Murphy,President of the Wiremold Co., Hartford, Conn,
Walter Robbins, Chairman of the Board of the General Cable Corp,
New York City.
240
C. H. Strawbridge, President of the Goodman Mfg. Co ,Chicago.
Former Governor Trumbull, President of the Trumbull Electric Mfg.
Co., Plainville, Conn.
Francis E. Neagle, counsel, 165 Broadway, New York City.
Plans for unemployment insurance, it is stated, are being
considered by other bodies. The Chamber of Commerce of
the United States has formulated a Plan for Unemploym6nt
Reserves, which contemplates no contribution from employees
in financing the unemployment benefit fund except in case
of emergencies.
The Wisconsin Legislature has passed a law requiring
employers to provide unemployment benefits if they do not
do so voluntarily. The Inter-State Commission on Unemployment Insurance, composed of representatives of the
Governors of the States of New York, Ohio, Massachusetts,
Pennsylvania, New Jersey and Connecticut, has reported
in favor of the compulsory establishment of State-wide
systems of unemployment reserves. The special committee
on Unemployment Insurance of the United States Senate is
said to have agreed that unemployment insurance is advisable and should be handled by the States on a compulsory
basis.
Previous items bearing on Mr. Swope's plan appeared in
these columns Sept. 19 1931, page 1819 and Nov. 21 1931,
page 3323.
United States Supreme Court Rules Against Modification of Packers' Consent Decree—Denies Packing
Industries Privilege of Dealing in Groceries—REhearing Denied.
A rehearing sought by Armour & Co. and Swift & Co.
of the decision in which the U. S. Supreme Court denied
them the privilege of engaging in the wholesale grocery
business was refused May 28 by the Supreme Court of the
United States, without opinion. A formal order denying
the petition for rehearing was entered. The U. S. Supreme
Court in an opinion handed down on May 2 ruled against
the modification of the so-called packers' consent decree to
permit meat packers to deal in groceries. From the "United
States Daily" of May 3 we quote as follows regarding the
Court's decision of May 2:
The Court, by a vote of four to two, held that the modification of the
consent decree, entered by consent of the parties in 1920, which was ordered
by the Supreme Court of the District of Columbia was not warranted.
The showing of changed conditions in the food industry. it was declared,
was not sufficient to justify any relaxation of the prohibitions of the consent
decree.
Lower Court Reversed.
The Supreme Court reversed the decision below and ordered that the
petitions of Armour & Co. and Swift Sr Co., and their affiliated organizations be dismissed. Wilson & Co. and Cudahy Packing Co.,against whom
the consent decree also runs, while not joining in the petition to modify
the decree, consent to any modification provided it were applicable to them.
"Size and aggressions induced the fear in 1920 that the defendants (the
packers), if permitted to deal in groceries, would drive their rivals to the
wall. Size and past aggressions leave the fear unmoved to-day," the Court
stated in its majority opinion, written by Justice Cardozo, in disposing of
the packers' contention that there no longer is need for any restraint against
their handling groceries at wholesale and that this prohibition is appressive
and unjust.
Two Justices Dissent.
The majority of the Court consisted, besides Justice Cardozo,ofJustices
McReynolds, Brandeis and Roberts. A dissenting opinion by Justice
Butler was concurred in by Justice Van Deventer. Chief Justice Hughes
and Justices Sutherland and Stone did not participate in the case, having
engaged in prior proceedings.
The facts were declared in the dissenting opinion to "negative any suggestion that danger of monopolistic control now exists." Citing the operating losses suffered by the packers and the manufacture and distribution
offood by integrated concerns, Justice Butler declared that "the diversification of the business of defendants permitted by the modification of the injunction is in harmony with present legitimate tendencies in the business of
Producing and selling meat, groceries and other articles of food."
Lower Food Prices Seen.
Should the defendants have been permitted to more efficiently use their
equipment to lessen operating expenses, it would make for lower prices,
according to the dissenting opinion, and so be in the public interest.
After ruling that the lower court had power to modify the decree, contrary
to the contention of two intervening wholesale grocers associations, the
majority opinion discusses "whether enough has been shown to justify
Its exercise."
"The defendants, controlled by experienced business men, renounced the
Privilege of trading in groceries, whether in concert or independently, and
did this with their eyes open," it is stated by Justice Cardozo. "Two
reasons, and only two, for exacting the surrender of this adjunct of the
business were stated in the bill of complaint (the bill of complaint which
resulted In the original decree of 1920). Whatever persuasiveness the reasons then had, is theirs with undiminished force to-day."
The two reasons are said in the opinion to be the position of the packers
to distribute foods and other unrelated commodities with substantially no
Increases of overhead, and the "practice of fixing prices for groceries so
low over temporary periods of time as to eliminate competition by rivals
less favorably situated."
"Whether the defendants would resume that practice if they were to deal
in groceries again, we do not know. They would certainly have the
temptation to resume it. Their low overhead and their gigantic size, even
when viewed as separate units, would still put them in a position to starve
out weaker rivals."
filly 9 1932
Financial Chronicle
"Mere size, according to the holding of this Court, is not an offense
against the Sherman Act unless magnified to the point at which It amounts
to a monopoly; but size carries with it an opportunity for abuse that is not
to be ignored when the opportunity is proved to have been utilized in the
past. The original decree at all events was framed upon that theory."
The majority observed that "changes there have been that reduce the
likelihood of a monopoly in the business of the sale of meats, but none that
bear significantly upon the old-time abuses in the sale of other foods."
From the New York "Evening Post" of May 4 we take
the following:
•
Although disappointing to the company, the recent ruling of the U. S.
Supreme Court refusing to allow meat packers to distribute canned meats
and groceries will not affect the business of Swift & Co., according to a
statement which has been issued by G. F. Swift, President of the company.
"The Court's decision will merely limit our operations to those in which
we have been engaged during the past 12 years," he said. "We had hoped
for a favorable decision so that we might handle canned foods along with
meat and produce. This would have made it possible to reduce distribution
costs not only on meat but on other fooditems as well, and naturally this
would have benefited producers, retail dealers and consumers, as well as
packers."
Dr. H. Parker Willis, Before Florida Bankers' Association, Alleges Bankers Share Responsibilities for
Present-Day Conditions—Holds National Credit
Corporation Did Nothing—Federal Reserve Criticized—Glass Banking Measure Sound.
Speaking before the Florida Bankers' Association at
Jacksonville on June 3, Dr. U. Parker Willis of Columbia
University minced no words in laying upon the banker his
share of the responsibilities for to-day's conditions, according to the Florida "Times-Union" of June 4, which also had
the following to say:
He charged some bankers with "lending their names to securities promotions," and criticized dealings of bankers on the stock market, pointing out that "the credit structure of the country has been broken down."
Saying that "this is essentially a financial panic," Dr. Willis said, "I hold
no banker wholly unresponsible." He said that from his observation,
however, that "the best banking is In those countries where there is less
legislation."
The Federal Reserve System came in for criticism from the internationally
known economist, and he declared that the National Credit Corporation did
nothing, in his opinion. He said that the Reconstruction Finance Oorporation "helped some," but declared that the fallacy of that organization
is that "the public believes that it is but a plaster on the outside of the
evil." He continued by expressing the opinion that "the remedial
measures passed by the Congress will have only the tempomry effect of
holding up the business structure of the country, with further deterioration
to come."
Citizen Loses Confidence.
"The trouble with the patient is," Dr. Willis said in referring to the
everyday citizen, "that he doesn't believe these things will help, or in
other words he has lost confidence." He then turned to the Glass banking measure, discussing its feature points and expressing the opinion that
it is "sound." He said that the branch banking provision "is intended to
permit a bank becoming a branch of another rather than failing."
"Try to get the average man to believe if he puts his money into the
banks it will be safe," Dr. Willis urged. "Restore the prestige of your
institutions. Give the investor the assurance that he can go to his banker
and obtain advice from a man who is not underwriting questionable
securities."
"It is up to the bankers to say what they want In Federal legislation,"
Dr. Willis urged in emphasizing the necessity for bankers "to go
without
your State for the legislation you want." In that connection he took the
occasion to criticize the American Bankers Association and the Investment
Bankers Association to exerting efforts to "kill" measures and none
toward constructive legislation.
Indebtedness of Florida's Municipalities and Counties
Discussed by J. H. Therrell Before Florida Bankers'
Association—State Taxation Proposals Include 3%
Retail Sales Tax.
After outlining that the bonded indebtedness of Florida's
counties, districts and municipalities, not including drainage
districts, totaled more than $500,000,000, and insisting that
the debt must be paid, Dr. J. H. Therrell, of Ocala, Florida,
Chairman of the Legislative Committee of the Florida
Bankers' Association, offered before the annual meeting of
the association at Jacksonville, Fla., on June 3 his taxation
suggestions.
We quote from the Florida "Times-Union" of Jacksonville,
from which we also quote as follows:
Featuring the suggestions are: The levying of a 3% State retail sales tax,
"this to be on all retail sales of commodities ta consumers and to be collected
through the county tax collectors"; the levying ofa city retail sales tax of2%,
"this to apply as a credit on the 3% State tax and to be remitted by the
county tax collector to the city in which the sale is made"; the levying of a
State gasoline tax of 10 cents per gallon; and the levying of a city gasoline
tax of four cents per gallon to be levied at the option of any incorporated
city, the four cents or any part of it levied to be applied as a credit on the
10 cents levied by the State.
Dr. Thorrell's further suggestions along that lino are:
Would Lift Realty Burden.
"Recognize that all outstanding obligations must be paid; recognize that
the major portion of the public indebtedness—$360,000.000 or 72% of the
$500,000,000 outstanding—was created and expended for the solo benefit
of the motorist; recognize that there is no just reason to require the real
estate along the highway and street to pay for the pavement for the passing
Volume 135
Financial Chronicle
motorist; determine that the user of the highway will be required to Pay a
'toll' charge in the form of gasoline taxes and license tag taxes to pay the
debt existing for the construction of the highways, to maintain the highways
and build whatever new highways are necessary; determine that for the
counties real estate shall not be taxed to pay for either principal or interest
on the existing highway bonds, for the maintenance of the paved roads,
or for the maintenance of the State Government, but that the county
real estate will be required to pay principal and interest on all county
Indebtedness other than for roads and bridges and to maintain the public
schools and the county government; place in the hands of the present
board of administration in Tallahassee the handling of all funds for the
payment of the outstanding county and district road and bridge bonds
keeping the debt liability for the existing road and bridge bonds placed
as it now is, and when refunding is necessary to do it in the name and for
the benefit of the original county or district creating the debt; and pay to
the board of administration from the gasoline and tax tax income sufficient
monies to pay all the interest and to amortize the outstanding approximately $160,000.000 of road and bridge bonds, paying to the State Highway
Department any remainder to be used to maintain the paved highways
and to build any new highways possible."
Dr. Therrell estimated that the gasoline tax would bring in a revenue of
$9,000,000 annually, and that the sales tax would bring in approximately
$16,000,000. "We have tried to point out the difficulties that beset Flosida
in her tax problems occasioned by her bonded indebtedness," Dr. Theme11
declared in concluding his report. "We have tried to face the facts developed.
We have tried to suggest a way out. A way not pleasant, not easy and
certainly not popular, but we believe a sure, if a hard and stony way."
He estimated that 68% of the municipality bonded indebtedness is in
default.
Resolutions Adopted at Annual Convention of New
York State Bankers' Association—Clarification
Asked of Provision in Revenue Act Imposing Tax
on Checks—President of Association to Appoint
Committee to Suggest Candidates for Directorship
of Federal Reserve Bank of New York.
One of the resolutions adopted at the annual convention
of the New York Bankers' Association, held at Rye, N. Y.,
June 15, while expressing accord with the tax on checks
recently enacted in the new revenue measure, urges a
clarification of the law. The following are the resolutions
adopted at the convention:
Resolved, That the Association extend its thanks to the
speakers whose
addresses nave made this meeting memorable.
Resolved, That we thank the Westchester Country Club for its
hospitality
and service.
Resolved, That the officers of the Association be authorized
to expend
a sum not to exceed $2,000 from the general fund of the Association
to
purchase emblems to be distributed under the direction of the
New York
State College of Agriculture to the boys and girls of the rural
sections of
the State who complete the junior project during the year under the
direction of the College of Agriculture.
One of the most important functions of our member banks
Is to cooperate in the continued selection of men of the highest standing
and
experience to act as directors of the Federal Reserve Bank of
New York.
To tnis end, be it
Resolved, That the President be authorized to appoint a committee
of
five to act with the representative of the New Jersey banks for
members
of the Federal Reserve Bank of New York, and the
representative of
the Connecticut banks for members of the Federal Reserve Dank
of New
York, to the end that proper recommendations of candidates for
directors
of the Federal Reserve Bank of New York be made to all member
banks,
and that the member banks be informed of the qualifications of
all candidates for such directorship and that all proper steps be taken
to secure
toe best possible men as directors of said bank.
Resolved, That the following minute be adopted and spread
upon
our
records in memory of one who had a great part in the creation
of our Association and who rendered it valuable and willing service:
William 0. Cornwell, one of the founders and the first President
of the
New York State Bankers' Association, died at St. Luke's
Hospital on
May 11 1932, at the age of 80 years.
For many years he was connected with the Bank of Buffalo
and in
1893 organized the City Bank at Buffalo, N. Y. He was
a prime mover
in organizing the Buffalo Clearing House and was active in
promoting
the organization of the American Institute of Banking.
Throughout his life be was an ardent student and writer upon
financial
topics. In his later years he was the editor of the "Bache
Review."
Resolved, That Section 6 of the By-Laws be amended to
transfer the
County of Richmond from Group 8 to Group 7, and that the
appropriate
paragraphs of said Section 6 be amended so as to read as follows:
Group 7.—Consisting of the Counties of Kings, Queens, Suffolk,
Nassau
and Richmond.
Group 8.—Consisting of the Counties of New York and Bronx.
Resolved, That the New York State Bankers' Association is in
hearty
accord with the purpose of the tax on checks recently enacted into
Federal
law, as every member deems it of the utmost importance that the
National
budget be balanced at an early date and without fail.
However, it is the unanimous feeling of the Association that
the law
as now drafted is indefinite and confusing, and capable of such construction
that a very largo part of normal checking business may escape the tax,
and by so doing cut down the amount of revenue derived therefrom. Furthermore, the method of collection provided is cumbersome, unsatisfactor
y
and expensive, and, in cases where no cash balances are on deposit witn
the banks, impractical, if not impossible of collection.
And it is strongly urged by this Association1. That the law be clarified, and
2. That the use of stamps be considered as the most practical and economical method of collection.
And Be It Further Resolved, That a cony of this resolution be forwarded
to the Secretary of the Treasury of the United States and to the Commissioner of Internal Revenue,
S. G. H. TURNER,
M. M. HOLMES.
C. R. DEWEY,
B. A. GRAY,
DELMAR RUNKLE.
Resolutions Committee.
241
H. J. Haas,President of American Bankers'Association,
Cites Constructive Factors Tending Toward Favorable Turn in Affairs.
Hairy J. Haas, President of the American Bankers' Association, speaking before the convention of the District of
Columbia Bankers' Association at Hot Springs, Va., on
June 9, said that "if it were not for the morbid state of
mind of the public which has taken root and thrived for a
period of nearly three years, with its unreasoning, overexaggerated influence on business, I might be tempted to
be a prophet on the basis of several tangible factors that
have developed and normally could be relied upon to break
through the vicious circle that has prolonged the depression."
Mr.Haas further said: "If these changes that now appear
to be taking place prove able to hold and expand, and if
they are joined by similar occurrences in other parts of the
business picture, I think we will be justified in feeling that
a favorable turn in our affairs is at hand." The factors
cited by Mr. Haas are:
First, we know, and the world knows, that the national budget of the
United States will be balanced. I have repeatedly said recently in public
statements that a balanced national budget was a prerequisite for business
recovery. And when I said that, I also meant that such a balanced budget,
when it became a fact, would of itself be a powerful factor toward
recovery of business.
Second, I believe the element of bank failures has been eliminated as a
cause of public hysteria and business fear. The weekly returns of bank
suspensions have been sufficiently low for several weeks, running through
May and the fore part of June, indicating that the steps taken to meet this
situation are proving effective.
Third, while we cannot say that the commodity price level as a whole
Is encouraging, nevertheless, if we find any important sign of betterment
that of itself is promising. And we do now find several analysts of prices
pointing out that, while the general price level has recently continued
downward, it is falling at a slower rate, which is accepted as a forerunner
of stabilization. Furthermore, we do find in respect to wheat that the
world situation is reported improving, with the absorption of surplus stocks
progressing. As this condition spreads to cotton and other world
commodities, as we have reason to hope it ultimately will, it will serve to
bring about a reconstruction of the commodity price situation and re-establish it once more as a definite factor on which business plans can be
based.
Fourth, tariff barriers have been enacted by many countries which
have
stifled our normal exports to those countries. At the same time
many of
these countries are beginning to realize that following the World War
many
large American industries established assembling plants in their
countries
and gave employment at good wages to many of their people, that
the
prohibitive tariff against the import of American finished merchandise
has
resulted in closing up these assembling plants and thrown many of
their
people out of employment. As an indication of a better feeling,
only
recently France and the United States have arranged a trade
agreement
granting the United States most favored nation treatment on those
imports
which are now restricted by the French quota system. This should
increase
our trade with France to about two and a half million
a year, and the
prior agreement with France, which eliminated the double
taxation, has
lifted many millions of dollars in taxes on American business
in France.
Fifth, we have a monetary gold dock of $4,106,000,0
00, which is
approximately equal to the 1928-29 average, but there
are important
relative differences to be taken into consideration. For
one thing, the
present stock is being called upon to support a much
smaller credit
structure. It has also been estimated that since 1929 the
foreign shortterm funds in the New York money market have been
reduced
two-thirds, and that foreign investments in American securities by about
likewise
have been substantially cut down, so that there is a very
much smaller
potential foreign threat against our gold supplies now
than in 1928
and 1929.
Sixth, in the industrial field the month of May witnessed
a slight
expansion in steel mill activity contrary to the seasonal
trend, accompanied by a better feeling in the steel trade for the
future, despite the
return to a seasonal slack that prevailed in June. In general,
commercial
lines for three consecutive weeks in May authoritative
trade reviews
reported scattering signs of improvement, and for the month
of May as a
whole one of them declared that the wholesale and
distributive totals
made the best showing in volume for any month in
the year.
Seventh, in the financial situation there are also
significant factors.
The world is observing the operations of our Federal
Reserve banks in
their open market operations through their purchase
of Government obligations. This has resulted in releasing funds of Federal
Reserve
banks and
Increasing the surplus reserves of banks.
Liquidation appears to have
been checked and the latest report of the
reporting member banks of
the Federal Reserve System shows an actual
expansion in credits through
an increase in commercial loans and In
investments other than United
States securities. We have just witnessed the
organization in New York
of the $100,000,000 bond pool. The significance
of this pool is not so
much in its organization and the volume
of its funds subscribed and
assured even beyond the $100,000,000, but
in the theory on which its
operations may be based. I understand that
it has not been organized to
supply artificial price support to the bond
market, but in accordance
with an announcement it is a business
proposition to take advantage on a
large scale of the bargain prices now available
in the bond market. This
means that the best financial thought
is working along lines to bring
security values back to realities and
not merely stimulate or support
prices, and therefore it is not merely an
In the securities market, but it has all emergency reconstruction measure
the appearance and possibilities
of a real turn in basic conditions.
It is a sound profit-making enterprise—
and profit-making is the greatest
incentive for business recovery.
Mr. Haas added:
"Recoveries from depressions in the past have been
feroshadowed by the
appearance here and there in the general business
picture of mild betterments reported in detailed factors such as I have
outlined. Month after
month during the last two and a half years in no
direction did we see any
substantial factor of improvement that seemed
structurally sound and
based on fundamentally liquidated and reliable conditions.
"But in every depression there has come a time
when here and there
general business has undergone subtle changes.
Some of them have
242
Financial Chronicle
proved to be but temporary, but others proved to be due to actually changed
conditions for the better.
"I leave it to you to judge as to whether these changing spots in the
business picture do not represent indications of a new and better business
era ahead of us. I venture to hope that they do. I am courageous enough
to suspect they are more than passing shadows."
Reduction in Annual Dues of Investment Bankers
Association of America.
In the June 14 issue of its bulletin,"Investment Banking,"
the Investment Bankers Association of America said:
For the ensuing fiscal year, beginning on Sept. 1 1932, the Board of
Governors at Its recent May meeting reduced the annual dues to $150.
The authority to do this is granted to the Board by the amendment to the
pertinent by-law adopted by the convention in November 1931.
The Board has also approved and will recommend to the members of
the Association for adoption by the 1932 convention an amendment proposed by the Constitution and By-Laws Committee to the effect that the
Board may in any year extend to members the option of paying the annual
dues in two equal installments, on Sept. 1 and March 1.
Feeling that this amendment will undoubtedly be adopted by the convention in October, 1932 (and subject to its adoption at that time), the
Board has authorized the office of the Association to extend such option
on the bills for annual dues which will, as usual, be mailed to members
during the latter part of August. Members, therefore, will have the
option of paying next year's dues in two installments of $75 each, as against
the one payment of $250 in previous years.
Gas Industries by
Committee of Investment Bankers Association of
America.
The June 25 number of "Investment Banking," the official
• organ of the Investment Bankers Association of America,
contains a report on "Recent Developments in the Oil and
Gas Industries." This interim report, which supplements
the committee's previous extensive studies, details the
present status and outlook of the oil and gas industries, the
progress of control measures in production, mergers, taxation
and tariff as affecting the industries, and the earnings of
oil and pipe line companies. The interim report on the oil
and gas industries was presented at the recent meeting of
the Association's Board of Governors, but was not made
public until its publication in the official bulletin. The
report was presented by Donald O'Melveny, Chairman of the
Association's Oil and Natural Gas Securities Committee
and Vice-President of the Union Company, Los Angeles.
The June number of "Investment Banking" also contains
two other committee reports. One, by the Industrial Se_
ourities Committee, and the other report is by the Association's Government and Farm Loan Bonds Committee,
and is an interim review of that subject.
Report on Developments in Oil and
Leading Economists at Summer Session of Columbia
University to Discuss World Frictions Arising from
National Economic Policies.
•
World friction arising from National economic policies
the
at
Columbia
economists
leading
by
will be analyzed
University Summer Session, beginning July 5, it is announced by Director John J. Coss. A comparative study of
economic life in the United States and in Europe, with special
emphasis on England, France, Germany and Russia, will be
directed by Dr. Robert Valeur, docteur en droit of the University of Lyons. "The social and legal problems and the
cultures of these countries," it is explained, "will be approached with an idea of better understanding their economic
situation. The economic policies of Europe will be studied
against their national backgrounds, and an introductory
analysis will be made of the frictions and tensions arising
from the projection of these national economic policies into
the contemporary international situation." Understanding
of current problems by application to them of established
economic theory will be the purpose of a course in economic
problems to be given by Dr. Valour. Crises, trusts and
labor combinations will be studied.
A symposium on current problems of taxation in which
financiers, economists, public officials, lawyers and accountants will pool resources will be held under the auspices
of the School of Law this summer, directed by Professor
Roswell Magill.
Lecturers will be:
Arthur A. Ballantyne, Assistant Secretary of the Treasury.
Prof. T. S. Adams of Yale Univers.ty, member of the Fiscal Committee
of the League of Natio!s.
Prof. Robert Murray Haig of Columbia, Executive Secretary of the
New York Commission tor Revision of the Tax Laws.
Colonel Robert H. Montgomery of Lybrand. Ross Brothers & Montgomery. past President of the Internatioral Congress or Accour Ling.
Winthrop W. Aldrich, President o. the Chase National Bank.
July 9 1932
Edward H. Green of the law firm ot Sullivan & Cromwell, member of the
Executive Committee of the Association of the Bar of the City of New
York, and former Chairman of its Taxation Committee.
Mitchell B. Carroll of the Secretariat of the League of Nations.
Conceived as a method of bringing into touch lawyers,
accountants and bankers for consideration of the law and
practice of taxation, the symposium will cover the division
of forms of taxations between the Federal Government and
the States; methods for the elimination of inter-State and
international double taxation; the scope of administrative
action in connection with revenue laws; accounting methods
and the concept of income; the corporation as a device for
escaping taxation, and the function of the inheritance tax—
the taxation of "inter vivos" transfers. Legislative developments arising during the spring will be given special attention
in the seminar which is open only to practising lawyers,
accountants, bankers and others in the field of finance, to
graduate students in law and to undergraduate law students
of exceptional ability.
American economic development will be discussed by
Prof. Carter Goodrich in a course in the economics department "to aid in the understanding of present-day economic
institutions in the United States by an analysis of their
historical development."
The public control of business will be surveyed by Prof.
Stacy May of Dartmouth College, co-author with Dr. M.
Keezer of "The Public Control of Business." Relations
between the institutions of business in their characteristic.
American forms and those of government will be analyzed.
Other lecturers in the economics department this summer
will be Professors Rexford G. Tugwell, Horace Taylor and
J. M. Chapman. In the School of Business there will be a
course in international banking directed by Professor J. M,
Chapman, which will deal with foreign exchange markets,
the balance of international payments and the documents
and instruments used in international trade. Methods of
financing foreign trade, short and long term credits, relations
with foreign branches and correspondents, government borrowing, foreign short term finance and international long
term loans will be taken up. Banking and business, centering on the nature of exchange fluctuations on gold, gold
exchange and paper standard countries will be the subject
of another course by Professor Chapman. Other courses
in the summer session cover accounting, advertising, finance,
business administration, labor problems, economic geography, business law and marketing. Instructors will include
Professors R. B. Kester, H. K. Nixon, R. S. Alexander,
Ivan Wright, Nels A. Bengtson, Dr. Elcanon Isaacs, S. B.
Koopman, R. T. Bickel', H. A. Inghram, N. W. Barnes,
W. I. Orchard and Miss Nina Miller.
Business Moratorium in Chicago Heights (III.) Ends.
Indicating the termination of the business moratorium in
Chicago Heights (Ill.), an Associated Press dispatch July 2
from Chicago said:
A couple of days with a fishing rod was enough to pull Chicago Heights
out of that down condition.
The suburb's only bank was paying out fast last Monday [June 271. By
Thursday [June 30] the crisis was in sight. Mayor Daniel P. Bergin.
borrowing the prescription of a half dozen other Illinois Mayors, gave
Chicago Heights a sleeping potion that was supposed to last a week.
Stores and shops and bank closed. Business was to shut down by
proclamation for a week. To-day they reopened, five days ahead of time.
"Everybody grabbed a fishing pole and made a holiday of it," said
Mayor Bergin. "They got calmed down and came back ready for business.
Panics and bank runs are due mostly to hysteria, and the best antidote
is to get the rod and reel and his down to a creek or a lake. We thought
It would take a week to quiet the town, but a day and a half did it."
Bank depositors, meanwhile, pledged to stop withdrawing funds and
business men canvassed for new accounts.
The same cure was effective in North Chicago this week, when a week's
business holiday was cut short after a couple of days had restored confidence.
The moratorium was referred to in our issue of July 2,
page 69.
Fort Dodge (Ia.) Business Moratorium.
United Press advices from Fort Dodge, Iowa, to the
"Wall Street Journal" of July 5 stated:
A 10-day business moratorium Is in effect here. The Community Chest
organization is seeking pledges from depositors in the Fort Dodge National
Bank and in the First State Bank & Trust Co. to waive withdrawals for
three years.
, Mayor C. V. Findlay ordered closed all businesses but those necessary
for necessities.
Officers Elected at Annual Meeting of New York City
Bank Auditors and Comptrollers.
At the annual meeting on June 27 of the New York City
Bank Auditors and Comptrollers Conference, the following
officers were elected:
Volume 135
Financial Chronicle
President, C. W. Borten, Auditor, Irving Trust Co.;
First Vice-President, C. C. Hubbell, Jr., First National Bank;
Second Vice-President, David 0. Banks, Auditor, Empire Trust Co.•
Secretary and Treasurer, Edwin T. Ward, Tax Auditor, Agency of
'Bank
of Montreal;
Assistant Secretary and Treasurer, 0. Fritz, Assistant Comptroller,
Bankers' Trust Co.
•
Mr. Borton succeeds as President A. A. O'Neill, Jr., Auditor of the Bank of Manhattan Trust Co. The New York Conference is one of a number of Conferences throughout the
United States operating under the National Conference of
Bank Auditors and Comptrollers. Its objects are to provide
a means of exchanging ideas relative to banking operations
in general and auditing practices in particular; to raise the
standard of work performed in bank auditing, and to procure
uniformity of practice and methods.
Appointment of Two New Directors of Financial
Advertisers' Association.
The appointment of two new directors of the Financial
Advertisers' Association to fill vacancies on the board is
announed by Charles H. McMahon, President of the Association, and Assistant Vice-President, First Wayne National
Bank, Detroit, Michigan. The new members of the board
are Peter Michelson, Advertising Manager,Bank of America,
San Francisco, and Stephen H. Fifield, Assistant VicePresident, Barnett National Bank, Jacksonville, Florida.
Mr. Michelson takes the place made vacant by the resignation of F. R. Kerman, formerly Vice-President, Transamerica Corporation, San Francisco. Mr. Fifield succeeds
Virgil Allen Jr., formerly Assistant Vice-President, First
Bank & Trust Co., Utica, N. Y., resigned.
Text Book on Financial Advertising to Be Published by
Financial Advertisers' Association—Result of Prize
Contest for Title of Text Book.
A name for the new text book on financial advertising
to be published by the Financial Advertisers' Association in
September and 'written by Don Knowlton of the Union Trust
Co., Cleveland, has been picked out of the 537 titles submitted by members of the Association who participated in
a prize contest, it is announced by Preston E. Reed, Executive Secretary. The name chosen is "Advertising for Banks,"
and it was submitted by two members of the Association.
The winners are Frank James, Reynolds, New York, President of Albert Frank & Co., national advertising agency,
with offices in New York, Chicago and San Francisco, and
IV. F. Guilford, of the trust department, California National
Bank, Sacramento, Cal.
The prize is a check for $50 donated by Rand, McNally &
Co., publishing house of Chicago. It will be presented to
the winners at the 17th annual convention of the Association to be held in Chicago, Sept. 12-15, inclusive. Mr. Knowlton picked the title from the 537 names submitted after
the titles and the names of the contestants were recorded
by Secretary Reed and the names of the contestants removed
from the originals so that Mr. Knowlton would not know
the identity of the many contestants. The new text book
will consist of 25 chapters and will be well illustrated. The
first chapter will be on the banker as an advertising man,
while the second will take up the reverse theme and discuss
the advertising man as a banker. Other chapters will
include,"What Does a Bank Have to Sell?", "Three Jobs in
One," "Selection of Advertising Media," "Building the Advertising Appropriation," "Layout in Financial Advertising,"
"Copy in Newspapers and Magazines," "Banking Journal
Advertising," and "Special Campaigns and Continuity."
Annual Convention of Mortgage Bankers' Association
to be Held at Niagara Falls, N. Y., Oct. 11-13—
"Mortgage Banking in Reconstruction Period"
to Be Discussed.
"Mortgage Banking in the Reconstruction Period" is the
theme chosen for the 19th annual convention of the Mortgage
Bankers' Association of America to be held at Niagara
Falls, N. Y., Oct. 11-13. This subject was announced
June 25 following a meeting of the Board of Governors on
June 20 and 21, in Chicago, where it was decided that the
coming convention might well devote its major time to the
new problems of real estate management, refinancing and
reorganization, which confront even the most conservative
lenders as the result of disturbed economic conditions.
At the general sessions of the convention consideration
will be given to current economic questions since the payment of interest and liquidation of indebtedness depends so
directly upon such factors as employment and commodity
243
prices. The more technical phases of city and farm mortgage
financing will be discussed at separate group meetings of
urban and rural bankers.
Summer Conference Course in Industrial Relations at
Princeton University Sept. 19-24.
The Second Summer Conference Course in Industrial
Relations will be held at Princeton University, Sept. 19-24
under the auspices of Industrial Relations Section, Princeton
University. J. Douglas Brown, Director of the Industrial
Relations Section of the University says under date of June 29
The subjects covered, the leaders invited to participate, and the limitation of attendance to two relatively small groups indicate the emphasis
which will be given to the careful and intensive discussion of major company
problems.
The time of the Conference, Sept. 19-24, is believed to be well suited to
the consideration of programs for the coming winter, since the plans of
many companies represented in the Conference will have reached a fairly
definite stage by that time. The charges for both registration and board
have been reduced to the least amount consistent with the high quality of
leadership and accommodation provided.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
New York Cotton Exchange membership held by the estate
of A. E. Norden was sold July 6 to Marshall Geer, for
another,for $9,250, a decrease of $300 from the last previous
sale, June 27.
Following the regular meeting of the Directors of the
Bank of Manhattan Trust Company of New York, F. Abbot
Goodhue, President, announced on July 1 the appointment
of Henry G. Warland as Assistant Vice-President. Mr.
Warland has been assigned to the 43rd Street office.
The statement of the Chase National Bank of New York
for June 30th, made in response to the call of the Comptroller of the Currency, shows the following changes in
important items since March 31st, the last quarterly statement date. Cash in the bank's vaults and on deposit with
the Federal Reserve Bank and other banks amounted to
$299,944,000, as compared with $327,674,000 on March 31st;
investments in United States Government securities $218,073,000, as compared with $176,553,000; securities maturing within two years, $106,511,000 as compared with $51,081,000; other bonds and securities, including stock in the
Federal Reserve Bank, $99,847,000 as compared with $101,355,000; loans and discounts $860,646,000, as compared with
$1,025,866,000. The capital of the bank amounted to $148,000,000, unchanged; surplus $100,000,000, as compared with
$124,000,000 on March 31st; undivided profits $17,381,000,
as compared with $20,789,000; reserve for taxes, interest,
contingencies, etc., $12,170,000, as compared with $28,650,000; deposits $1,302,456,000, as compared with $1,328,737,000.
The statement of condition of the Guaranty Trust Company of New York as of June 30 1932, Issued July 6, shows
deposits, including outstanding checks, totaling $928,343,300,
which figure compares with total deposits of $892,931,648
at the time of the last published statement, March 28 1932.
The company's capital account totals $270,495,733, comprising capital $90,000,000, surplus fund $170,000,000, and
undivided profits $10,495,733. The last figure shows a decrease of $14,467,651 from the March statement in accordance with the announcement of the Board of Directors on
June 1st that a sum had been appropriated from undivided
profits to strengthen the reserves of the company for possible doubtful items. The company's total resources are
$1,240,705,948. Its cash on hand, in Federal Reserve Bank,
and due from banks and bankers, and its U. S. Government
obligations total $537,258,847, as compared with $457,505,782
on March 28 1932.
The statement of condition of the Brooklyn Trust Company of Brooklyn, N. Y., as of June 30 1932, issued July 2
in response to the call of the State Banking Department,
showed total deposits of $110,162,557 against $101,987,519
on March 28, the last preceding call date, an increase of
$8,175,038. Total resources were $143,378,437 against $142,833,534. Undivided profits were $2,314,194 on June 30
against $2,996,991 on March 28. Surplus of $10,000,000 was
shown, unchanged from the preceding statement, while reserves were $5,829,765 against $10,210,342. Total cash, including that on hand and due from Federal Reserve and
other banks, was $38,656,084 against $22,092,514 on March
28.
Financial Chronicle
244
•
Concerning the affairs of the Franklin Trust Co., of
Philadelphia, Pa., which closed its doors on Oct. 6 1931,
the Philadelphia "Finance Journal" in its issue of June
20 stated that inventory and appraisal of the assets of the
institution filed on June 20 in the Prothonotary's office at
City Hall by Dr. William D. Gordon, State Secretary of
Banking for Pennsylvania, shows total book value of all
assets $37,828,146 and total appraised value $19,236,439.
Deducting offsets and assets pledged to secure deposits and
bills payable aggregating $11,031,123 leaves total net assets
at appraised values of $8,205,316 to cover net deposit liability of $16,097,000. Net assets at appraised values are
equivalent to 50.9% of net deposit liability. Appraisal was
filed as of Oct. 5 1931, date of closing of the Franklin Trust
Co. We quote furthermore in part from the paper mentioned:
The schedule of assets showing book and appraised value as filed is
summarized as follows:
Appraised
Book
Value.
Value.
$767,648
$767.648
hand
on
Cash
805,063
805,063
Due from other banks
58,390
73,268
Due from special collateral banks
3,308
3,898
Cash items
5,112,337 2,404,755
Demand loans, secured
644,454
1,099,375
Demand loans, unsecured
2,184,922 1,183,554
Time loans, secured
39,347
39,347
Time loans, secured by leases
5,178,453 2,618,444
Time loans, unsecured
738,677
2,426,777
Bond and mortgage loans
Investments15,571,066 8,650.099
Securities
4,150,250 1,296.152
Mortgages
2
179,322
Real estate
13.565
158,625
Furniture and fixtures
8,921
65,273
Safe deposit box
Item of securities includes 100 shares of stock of the Franklin Building Corporation carried at $540,000 and appraised at $1. The appraisal
represents the company's equity in the bank building. Other real estate
Includes investments made in building operations on Lincoln Drive and
Glen Echo Road, Germantown, carried at a book value of $178,417 but
which have been written down to $1.
Some of the larger loans listed in the inventory follow:
Demand loans, secured, Albert Co., $240,000; Harry L. Bernbaum,
$154,403 ; John J. Caine, $131,400; Frank P. Croft, $135,000; G. E.
Dale, $156,483; A. B. Dauphinee, $33,216; Helen F. Dauphinee, $70,550;
R. A. Downea et al, $130,000; A. H. Geuting, $51,060; Paul J. Henon, Jr.,
$189,842; J. L. Huye, $112,000; Max Livingston, Jr., $137,076; John
T. McGuirk, $294,811; Sundheim & Folz, $249,577.
Demand loans, unsecured, John J. McGuirk, $150,000; George B. Wells,
$187,000, C. A. Harris, Jr., syndicate manager, $218,000.
Time loans, secured, Albert Co., $99,123; Belber Trunk & Bag Co.,
$180,900; Louis Hamm, $109,250; George de B. Heim, $200,000.
Time loans, unsecured, Bankers Bond de Mortgage Co., $250,000; Bankers
Realty & Holding Co., $290,000; John J. Caine, $194,800; Alfred M.
Campbell, $210,000; Franklin Building Corporation, $290,000; A. H.
Geuting Co., $280,000; George G. Melloy, $153,500; Walton Hotel Corporation, $100,000.
Our last reference to the affairs of this bank appeared in
the "Chronicle" of April 23, page 3040.
Regarding the affairs of the closed Franklin Savings &
Trust Co., of Pittsburgh, Pa., the Pittsburgh "Post Gazette"
of July 2, stated that a 10% distribution to depositors of
the institution, amounting to $204,532, would be made July
18 next, according to an announcement by Dr. William D.
Gordon, State Secretary of Banking for Pennsylvania on
July 1. The paper mentioned continuing said:
All payments under 99 cents, it was stated, will be In cash over the
counter.
The bank had net deposit liability of $2,069,297.98, to cover which
there were total net available assets amounting to $920,895.67, according
to the inventory and appraisal filed last week. The appraisal showed
total book value of all assets as $3,122,902.11 and total appraised value,
as of Sept. 21 1931, the date of the bank's closing, $1,424,677.54 off-sets
and secured liabilities were shown to aggregate $503,781.87.
The closing of the Institution was noted in our Sept. 26
1931 issue, page 2031, and our last reference to its affairs
appeared April 23 1932, page 3041.
-4---
A merger of three North Side banking institutions in
Bethlehem, Pa., was consummated on July 5. They were
the First National Bank & Trust Co., the Lehigh Valley National Bank, and the Bethlehem Trust Co. The new organization continues the title of the First National Bank &
Trust Co. and Robert S. Taylor, Jr., continues as President.
The banking house of the First National will also be the
home of the enlarged institution. A Bethlehem dispatch, on
July 5, to the Philadelphia "Ledger," from which the above
information is obtained, furthermore said:
The merged bank has total resources of $18,482,871; deposits of
$9,218,504; capital, surplus and undivided profits of more than $1,500,000,
and cash amounting to $909,593, as of this morning.
Reduction in overhead is given as one of the principal reasons for the
merger. The First National is the oldest bank here, having been orgenized
In 1863.
According to the Philadelphia "Ledger" of July 2, announcement was made the previous day by Dr. William D.
Gordon, State Secretary of Banking for Pennsylvania, that
July 9 1932
depositors of the Parkway Trust Co. of Philadelphia, which
closed Sept. 2 1931, would receive a dividend on July 22
next of 15%, amounting to $158,134. This payment, it was
stated, will represent the third distribution by the defunct
bank, which has a total deposit liability of $1,054,224, and
will bring the total received by the depositors to 50%, the
first advance of 20% having been made Nov. 27 1931 and
the second of 15% on March 7 1932.
A consolidation of the Dime Savings & Trust Co. of
Allentown, Pa., with the Lehigh Palley Trust Co. of that
city was effected on July 5, according to Allentown advices
on the date named, printed in the Philadelphia "Ledger."
The dispatch went on to say:
News of the consolidation was given in a statement by Reuben J. Butz,
President of the Allentown Clearing House Association. Fred E. Lewis,
President of the Dime Savings & Trust Co., is Mayor of Allentown.
It is learned from the Philadelphia "Ledger" of July 2
that depositors of the Security Trust Co. of Harrisburg, Pa.
(which closed its doors Oct. 26 1931 with a total deposit
liability of $1,033,921 and 6,200 accounts), will receive a
second dividend on Aug. 3, when $206,784, or 20% of the
amount due them, will be distributed. The first cash advance was made Dec. 23 1931. The closing of the Security
Trust Co. was noted in the "Chronicle" of Oct. 31 last,
page 2867, and reference made to its affairs in our issue
of Dec. 5, page 3728.
Morgan Waite Young, Chairman of the Board of the
Toledo Trust Co. of Toledo, Ohio, and one of the prominent
business men of that city, died on June 30 after a prolonged
illness. Mr. Young was born in Maumee, Ohio, 72 years ago.
Shortly after the Civil War the family moved to Toledo,
where the decreased banker received his early education
in the public schools. Later he prepared for Yale at Hopkins Grammar School, New Haven, Conn., and was graduated from the University in 1883. Upon his return to Toledo
Mr. Young began his business career with the Clover Leaf
and Wheeling & Lake Erie railroads, and this led him later
into the hardwood lumber business. Subsequently he became a director of the Second National Bank of Toledo, and
in 1908 was elected President of the institution. In the
latter part of 1924 the Second National Bank was consolidated with the Toledo Trust Co. and Mr. Young became
Chairman of the Board of the enlarged institution-the
office he held at his death. Mr. Young was also President
of the Blade Printing & Paper Co., and was interested in
many other Toledo business enterprises.
The Adams State Bank, 3951 West 26th Street, Chicago,
Ill., was closed on July 1 by the State Auditor, according
to the Chicago "Journal of Commerce" of the following day.
The institution was capitalized at $200,000 with surplus of
$75,000 and had $415,000 in deposits. John W. Jedian was
Chairman of the Board of Directors; Frank H. Bicek, ViceChairman and Henry F. Tukal, President.
A new bank was opened recently in Oconomowoc, Wis.,
under the title of the Oconomowoc National Bank. The institution is capitalized at $75,000 with surplus of $25,000
and paid in "undivided profit" of $5,000, making the capital
resources $105,000. The officers are as follows: Grove E.
Palmer, President; Major F. W. Mouso, Vice-President;
Frank Gross, Jr., Cashier and M. J. Bartelme, W.0. Clausen
and W. J. Counsell, Assistant Cashiers.
At a meeting of the directors of the Midland National
Bank & Trust Co. of Minneapolis, Minn., held June 30, the
resignation of Charles B. Mills, as President of the institution was accepted and Edgar L. Mattson, heretofore Executive Vice-President, was advanced to the Presidency as
his successor. Mr. Mills, who resigned to assume new duties
with the North-West Bank Corporation, with which the Midland National is affiliated, will continue with the bank as
a director. The "Commercial West," of July 2, from which
the foregoing is learned, in outlining the banking careers
of Mr. Mills and Mr. Mattson, said in part:
Mr. Mills, who is to become connected with the Northwest Bancorporation, Is a pioneer banker. He began his banking career with the Bank of
Sioux Rapids, Iowa, on Nov. 10 1885, and later became a member of
Moe, Hulett & Mills, private banking firm, at Sioux Rapids.
In 1902, Mr. Mills was called to Clinton, Iowa, where he was made
• Cashier hnd Executive Officer of the Peoples Trust & Savings Bank, then
the second largest bank in Iowa. After 11 years with that institution, he
left Clinton to come to Minneapolis.
Mr. Mills is a former President of the Iowa Bankers' Association and
a former member of the executive committee of the American Bankers'
Volume 135
Financial Chronicle
Association. At present, he is a member of the commerce and marine
committee of the American Bankers' Association, one of the important
groups in the National organization of bankers.
.
Mr. Mattson, the new President of the Midland National, is a native of
Minnesota and another pioneer among bankers of the Northwest. Ile first
engaged in the banking business in 1888, with the Swedish-American
National Bank, which later was consolidated with the Northwestern National Bank. Mr. Mattson continued with the Northwestern, winning promotion to official rank, until 1912, when he joined the Midland organization.
Thus Mr. Mattson's entire banking career has been with institutions
which now are affiliated with the Northwest Bancorporation. He also
has been prominent in banking organizations. He is a former President
of the Minnesota Bankers' Association, and a former member of the
executive council of the American Bankers' Association. He also served
a term as President of the National Bank Division of the American
Bankers. Mr. Mattson for some years was Treasurer of the Minnesota
Agricultural Society, governing body of the State Fair.
The Midland National Bank & Trust Co. Is capitalized at
$1,000,000 with surplus and undivided profits of $523,624,
and has deposits of more than $14,400,000.
That the new Davenport Bank & Trust Co., Davenport,
Iowa, representing a reorganization of the American Savings
Bank & Trust Co., which closed Sept. 30 last, was to open
for business on July 5 is indicated in the following advices
by the United Press from that city on July 3:
With the aid of the Reconstruction Finance Corporation one of the
large closed banks in the Mid-West has been reorganized and will reopen Tuesday. When the American Savings Bank & Trust Co., here closed
Sept. 30 1931, its officers immediately set about perfecting reorganization
plans, led by E. P. Adler, publisher of the "Davenport Times."
Depositors were called upon to co-operate and Were asked to accept
debenture bonds for 60% of their deposits. These bonds total $15,600,000.
When the bank, under the name Davenport Bank dr Trust Co., opens
Tuesday (July 5), the remaining 40% of the depositors' accounts will be
immediately available if they desire the money. The debenture bonds
will be liquidated gradually.
Reference was made to the new Davenpo-rt Bank & Trust
Co. in our issue of May 28 last, page 3929.
Plans were announced in St. Louis, Mo., on July 1 looking towards the consolidation of two St. Louis banks, the
Guaranty Bank & Trust Co. and the Plaza National Bank,
under the title of the Guaranty-Plaza Trust Co., with combined resources of approximately $3,500,000. As indicated
by its name, the new organization will operate under a
State charter. Its combined capital, surplus and undivided
profits will total $625,000. The union will become effective
Aug. 31 next, if ratified by the respective stockholders of
the institutions. The directors of both banks have unanimously approved the proposed merger. The foregoing is
learned from the St. Louis "Globe-Democrat" of July 2,
which furthermore said in part:
The consolidation generally has been considered a logical move for
some time, as both institutions are located near Twelfth Street and serve
virtually the same vicinity, being within three blocks of each other.
Plans to bring them together are said to have been under consideration
for ten months or snore. . . .
The new enlarged bank will function in the present quarters of the
Plaza National, on the ground floor of the Missouri Pacific Building. It
will be headed by F. It. von Windegger as President. He is now President of the Guaranty Bank & Trust Co., having organized that bank in
1925, becoming its President four years later. He began his career in
1904 with the American Exchange Bank.
Carl A. Reinholdt, Cashier of the Plaza National, will become VicePresident of the new bank. He has been actively in charge of the Plaza
National since its organization in the Fall of 1929, and prior to that
had been with the National Banking Department for ten years.
W. L. Gregory, Vice-President and Cashier of Guaranty Bank, will be
Cice-President and Treasurer, Gregory, prior to joining the Guaranty
Bank had been Assistant Federal Reserve Agent of the St. Louis Federal
Reserve Bank.
Julius W. Reinholdt, Jr., President of Plaza National, is expected to
retire from the institution as an officer, as he is an active partner in
the New York Stock Exchange firm here of Reinholdt & Gardner. It is
understood he has contemplated withdmwing from active duties at the
bank since his firm became affiliated with the New York Stock Exchange
In September 1930.
The United Bank & Trust Co. of Greensboro, N. O., an
institution organized as a successor to the bank of the same
name that closed its doors on Dec. 30 1931 with more than
$5,000,000 in deposits, opened for business on July 1, making available $3,500,000 of the funds tied up by the closing,
according to Associated Press advices from Greensboro on
the date named. At the same time the institution opened
branches at Burlington, Reidsville and Sanford, where its
predecessor also maintained branches, the dispatch said.
A Greensboro dispatch on June 28 last, printed in the Raleigh
"News & Observer," with reference to the then approaching
opening of the institution, said, in part as follows:
The bank opens with $500,000 in new capital, $400,000 of it paid and
the other payable on schedule, and with 85% of the deposits in the old
bank represented in agreements signed by the depositors. The agreements specify that 65% of the proved claims on the bank shall be avail.
able in cash at any time after the opening and that the remaining 35%
shall be represented in stock in a real estate holding company which
245
will hold the bank's home building in Greensboro and all other real
estate and paper secured by real estate.
Under the plan of reopening, Col. Frank P. Hobgood will be Chairman
of the Board of Directors; E. W. Staples, President of the bank, Claude
Kiser, Vice-President and Trust Officer, and R. Stan Travis, Cashier.
Col. Hobgood has been the Chairman of the committee which has taken
the lead in reorganization. Staples was in charge of the bank when it
failed but had only been in that position for a short time. He has acted
as receiver for the State.
The closing of the United Bank & Trust Co. was recorded
In the "Chronicle" of Jan. 2 1932, page 80.
Spartanburg, S. C., advices on July 5 to the New York
"Journal of Commerce" stated that the Nicholsn Bank Trust
Co. of Union, S. C., had failed to open for business on that
date and a posted notice gave the reason as "impending
heavy withdrawals by depositors in the near future." The
dispatch added:
Officials stated that in fairness to depositors the bank would be placed
in the hands of the State Bank Examiner for a period of thirty days.
Thomas A. Early, receiver for the First National Bank
of Greenwood, Miss., which closed Dec. 20 1930, has announced the payment of a second dividend, 10%, to depositors in the institution, according to advices on July 1
from that place to the Jackson "News," which added:
The bank paid a 20% dividend some months ago. The payment of the
10% dividend will distribute approximately $150,000 to the depositors
of the bank.
George Harrison Pittman, active Vice-President of the
First National Bank in Dallas, Dallas, Texas, died on June
24 at his home in that city. The deceased banker, who was
63 years of age, was born in St. Louis, Mo., but moved with
his family to Sherman, Tex., when a child. After receiving
his education in the public schools and attending Add-Ran
College at Thorp Spring, Tex., Mr. Pittman went to Dallas
in 1888 and the following year was employed by the Texas
& Pacific Ry. as a clerk. Two years later he entered the
banking field and by January 1904 had risen to Assistant
Cashier of the National Exchange Bank of Dallas. When
the National Exchange Bank and the American National
Bank consolidated in June 1905, under the name of the
American Exchange National Bank, Mr. Pittman became
Assistant Cashier of the consolidated bank and served in
that capacity until Jan. 11 1916, when he was elected cashier.
In January 1920 he was advanced to Vice-President and
Cashier and the following year was made Vice-President
without the Cashiership. He became a Director Jan. 12
1926. Mr. Pittman continued as Vice-President and Director
of the American Exchange until Dec. 31 1929, when the
American Exchange and City National were consolidated
under the name of the First National Bank in Dallas. Mr.
Pittman then became Vice-President (and Director) of the
enlarged bank, the office he held at his death.
That the Republic Bank & Trust Co. of Austin, Tex., had
acquired the Texas Bank & Trust Co. of that city, giving the
former resources of more than $3,000,000, was reported in
a dispatch by the Associated Press from Austin on June
27, which continuing said:
Eldred McKinnon and Walter Bremond, President and Vice-President,
respectively, of the Republic Bank, will continue in those official capacities. Sam Sparks, President of the Texas Bank & Trust Co., announced
his retirement.
A $51,600,000 increase in deposits with 130,000 new depositors added since the return of the Bank of America National Trust & Savings Association (head office San Francisco) to California management and control is reported by
the bank in a combined statement of condition published July
1. Deposits are shown to have increased to $710,903,000 from
$659,222,000 on Mar. 12, at which time a business building
campaign was inaugurated. Earnings of more than $2,800,000 were realized for the period ending June 30, of
which $1,120,000 was utilized for depreciation on bank
premises and fixtures. Undivided profits were increased
to $6,259,048 during this period and reserves for losses and
contingencies brought to $11,183,467 by a transfer of $10,000,050 from surplus account. An announcement in the
matter goes on to say:
"It is stated that the full benefit of increased deposit and economies
in operations effected by the present management since March, should
be reflected to an even greater extent in the earnings of the bank for the
last half of the year, which is normally a period of substantial increase
In deposits and earnings.
"These satisfactory constructive accomplishments have been made possible through the interested, united and loyal support and co-operation of
our entire organization, stockholders and friends. The economies have
been effected in a manner calculated not to aggravate the existing distressing unemployment situation, but at the same time to accomplish
246
Financial Chronicle
necessary savings in the interest of our stockholders," said A. P. Giannini,
Chairman of the Board of Directors, in commenting on the progress of
the bank since the recent proxy contest.
"We have pursued the policy of conducting the bank's affairs •in a
normal sane manner and have without exception cared for all legitimate
credit requirements of our clients. We have especially encouraged the
building of small homes by making installment loans for new construction.
"It has been our old established policy to invest a very substantial
portion of our savings deposits in installment first mortgage loans on
Improved California real estate. The wisdom of this policy has been
clearly demonstrated throughout the depression by the fact that the
shrinkage in this type of investment has been less than in any other
type of security with the exception of United States Government bonds,
another of our major investments."
A further increase in liquidity is shown in the statement
of condition of The Wells Ilargo Bank & Union Trust Co.,
San Francisco, Calif., for June 30 1932. Cash on hand or
with other banks exceeded $30,000,000, or nearly $4,500,000
more than the total reported as of Dec. 31 1931. The ratio
of cash and bonds to deposits rose to 69.6%, as compared
with 66% six months ago and 64% one year ago. One half
of the banks' bondholdings are in United States Government securities. Undivided profits maintained the steady
growth witnessed in recent years.
The proposed union of the Anglo & London Paris National Bank of San Francisco, Calif., and its affiliated Institution, the Anglo-California Trust Co., became effective
June 30 and on July 1 the consolidated institution and its
nine branches opened for business as the Anglo California
National Bank of San Francisco. The head office of the
new bank•is at No. 1 Sansome St. The principal officers
of the new organization, according to the San Francisco
"Chronicle" of July 1, from which the above information
is also obtained, are as follows: Mortimer Fleishhacker,
Chairman of the Board of Directors; Herbert Fleishhacker,
President; H. L. Machen, E. R. Alexander, J. S. Curran,
L, C. Pontious, T. C. Tilden, Louis Sutter, Victor Klinker
and R. D. Brigham, Executive Vice-Presidents; A. N. Baldwin, Harry Coe, J. Friedlander, O. F. Hunt, Leon Sloss, Jr.,
C. L. Smith, George A. Van Smith and Fred V. Vollmer, VicePresidents; Claude H. Alexander, H. T. Armstrong, William
H. Arnold, C. E. Baen, E. J. Berges, W. B. Burns, Grant
Cordrey, Mortimer Fleishhacker, Jr., H. F. Fletcher, Leonard
L. Formes, B. J. Frankenheimer, H. Kanter, Elmer G. Lind,
J. M. McCarthy, A. L. McRowe, Henry C. Muller, B. Neustadt, Fred. F. Ouer, Eugene Plunkett and Dario Righetti;
Frank L. Moss, Cashier, and J. J. Cambridge, Jr., Auditor.
San Francisco advices on July 6, appearing in the New
York "Evening Post," stated that the Pacific National
Bank of San Francisco, Calif., had purchased the City
National Bank of that city and would operate the institution as a branch available to the city's retail district. The
advices continuing said:
Leslie E. Alt, Vice-President and Cashier of the City National, will
become Vice-President of the Pacific National, remaining in charge of
the uptown office. No changes will be made in the City National's office
personnel.
The Security Bank of Myrtlepoint, Ore., has taken over
the Bank of Myrtlepoint. The enlarged Security Bank is
capitalized at $25,000 with surplus and undivided profits of
$41,965, and has deposits of $409,161 and total resources
of $515,549. The officers are as follows: R. C. Dement,
President; N. G. W. Perkins, Vice-President; Karl Kaufman, Cashier, and Harry G. Dement, Assistant Cashier.
According to cable advices received at the office of its
New York representative, 44 Beaver Street, Barclay's Bank,
Ltd., London, has declared the usual dividend of 10% on
the A shares and 14% on the B and C shares for the period
Jan. 1 to June 30 1932. These rates are identical with the
distribution which has been in effect for some years past.
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Quiet and irregular price movements have characterized
the dealings on the stock market during the present abbreviated week. Some liquidation was apparent on Tuesday
and while this tlisappeared under the modest improvement
during the last half of the session on Wednesday it was
again in evidence on Thursday. Public utilities,food stocks
and chemical issues have generally been weak. Railroad
shares were slightly higher about midweek, but were unable
to hold their gains as the market continued to drift downward. International Shoe furnished the feature on Thursday as it broke 6 points and closed at 21. Specialties were
down most of the week and so were the motor stocks and
July 9 1932
oil issues. On Thursday there was quite a flurry in BrooklynManhattan-Transit, which moved briskly upward to 183%
finally closing at 17 with a net gain of 13% points. Call
money renewed at 23/2% on Tuesday, continued at that
rate until Thursday, when it dropped to 2%, where it
remained during the rest of the week.
Stocks continued their downward drift as the market resumed its sessions following the three-day suspension of
business over the Fourth of July. The trend was downward
in the early trading, but some resistance was apparent as the
market leaders neared new low levels and while there was
some improvement at the close, the advances were small
and had little effect on the final quotations. Public utilities
were the weak spots and led the morning decline. Prominent
speculative issues also were hard hit and stocks like Eastman
Kodak, Auburn Auto, Consolidated Gas, International
Business Machines, American Tel. & Tel. and Union Pacific
yielded heavily. United States Steel was off about 2 points
at one period of the trading and American Can was also
down. The outstanding changes of the day were on the
downside and included American Brake Shoe pref., 23%
points to 423%; American Tel. & Tel., 23% points to 763
4;
3 Endicott Johnson, 3
Eastman Kodak, 3 points to 37%;
points to 193%; Norfolk & Western pref., 43/i points to 65;
United States Steel pref., 23% points to 54; United States
Tobacco,3 points to 55; American Smelting pref., 81% points
to 15, and International Business Machines, 13% points
to 62%.
Trading continued quiet on Wednesday and while many
stocks lost ground during the morning dealings, the list
showed slight gains as the market closed. The advances
were not particularly noteworthy, but the upward movement was fairly steady during the afternoon. Railroad
stocks were prominent in the advance, most of the active
shares moving ahead from fractions to a point or more.
American Tel. & Tel. also attracted considerable attention
and shortly after the opening hour yielded to a now low at
75, but climbed up to 773% at the close. Public utilities,
food stocks and some specialties were soft during the early
trading, but showed improvement later in the day. On the
other hand, mining issues and oil shares moved slowly, but
steadily, upward during the greater part of the day. The
principal changes were on the side of the advance and included such active issues as Allied Chemical & Dye pref.
33% points to 1021%, American Tobacco "B" 178 points
5
4, Atchison 13/i points to 207, Auburn Auto 2%
to 513
%, Colgatepoints to 493%, J. I. Case Co. 13% points to 243
Palmolive 23/i points to 753%, General Cigar pref. 23%
points to 821%, Hershey Chocolate pref. 23% points to 62,
% points to 12, National Biscuit pref.
Ludlum Steel pref. 23
3 points to 109, Royal Dutch 13% points to 181%, Union
Pacific 11% points to 311%, Western Union Telegraph 11%
points to 14%, Columbian Carbon 13% points to 18 and Air
% points to 333A•
Reduction 13
Stocks declined during the first hour on Thursday, but
showed moderate improvement during mid-session and again
sold off at the close. Price movements, however, were
extremely narrow with considerable irregularity in evidence
throughout the session. Local traction shares were the
feature of the trading and moved forward under the leadership of Brooklyn-Manhattan-Transit, which made gains of 2
points in both the common and pref. stocks. International
Shoe, on the other hand, was especially weak and closed at
21 with a loss of 6 points. Modest losses were also recorded
by such stocks as United States Steel, Drug, Inc., American
Tel. & Tel. and Chesapeake Corp. At the close the preponderance of the changes were on the side of the decline
and included among others, American Can, which dropped
back 2 points to 311%; Am. Tel. & Tel., which yielded 38%
points to 743%; Atchison, which dipped 13
% points to 193%;
Coca-Cola, 23% points to 81; Consolidated Gas, which fell
off 2% points to 34, and Drug, Inc., which declined 23%
points to 261%. Other downward revisions were Eastman
Kodak, 23% points to 36; International Business Machines,
63% points to 553%; Loews pref., 8 points to 39; National
Lead, 2 points to 50; Public Service of N. J., 23% points to
293%; Union Pacific, 134 points to 30; United States Steel,
13% points to 22, and Westinghouse, 13% points to 163%.
The trend of prices continued irregular on Friday and
while there were frequent attempts to rally the market, the
changes continued within a narrow range and the tendency
was toward lower levels. Am. Tel. & Tel. was under pressure
during part of the session due to the unsatisfactory earnings
statement. Other weak spots were Allied Chemical & Dye
1 and Pacific Tel. &
pref. which dipped 33% points to 105%
Financial Chronicle
Volume 135
Tel. which slipped back 334 points to 6934. Numerous
active stocks broke through their previous low levels at some
time during the session including such popular issues as
Union Pacific, Public Service of N. J., Eastman Kodak and
Coca-Cola. Among the losses of the day were American
Sugar pref. 1% points to 54; Bucyrus Erie pref., 634 points
to 36; Coca-Cola, 4 points to 77; Delaware & Hudson, 2
points to 32; Detroit Edison, 6 points to 54; National Lead,
5 points to 45; Norfolk & Western, 4 points to 59; Peoples
Gas, 4 points to 43, and United Biscuit pref., 10 points to
75. As the market closed trading was quiet and prices were
close to their lowest for the day.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY, WEEKLY AND YEARLY.
Week Ended
July 8 1932.
Stocks,
RatIroad
State
Number of and Muesli. Municipal ve
Shares.
Bonds.
For'n Bonds.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
612,690
727,880
784,401
720.168
Week Ended July 8.
1932.
Stocks-No. of sharesBonds.
Government bonds- - State /ft foreign bondsRailroad .4 misc. bonds
Total
Total
Bond
Sales.
EXT RA HOLID AT.
INDEP ENDENCE DAY.
$3,616,000
4,696,000 $1,609,000
4,813,500
5,370,000
1.765,500
5,060,000
5,060,000
2,649,000
4,183,000
4,873,000
2,533,000
2.845,139 $17,672.500 $19,999,000
Sales at
New York Stock
Exchange.
United
States
Bonds.
1931.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Jan 1 o July 8.
1932.
1931.
2,845,139
9,211,001
180,080,467
346,300,361
31,291,000
15,696,000
29,618,000
$409,673,100
408,330,500
772,417,000
$91,918,200
424,480,100
975,917,700
%4&228.000 546.605,1100 al 560 496 RAO II 409 .516 non
Total
Prey. wk. revised.
Philadelphia.
Shares. Bond Sales. Shares. Bond Sales
HOLI DAY
HOLI DAY
11,509
$1,000
12,508
6,000
12.625
1.000
5.542
14,000
Baltimore,
Shares. Bond Sales.
HOL/ DAY
HOLI DAY
10,516
$21,000
9,314
15,900
12,646
4,500
4,430
HOLI DAY
HOLI DAY
645
$9,000
802
7,200
994
200
381
1.800
42,184
822,000
36,906
$41,400
2,822
$18,200
65,797
$19,500
56.294
$3,824
3,724
$20,000
THE CURB EXCHANGE.
Moderate improvement was apparent in several of the
more popular issues on the curb market during the present
week,and while the changes were extremely narrow they kept
steadily on the side of the advance. Some liquidation was
in evidence from time to time, but the tone of the market
was fairly steady throughout the week. On Tuesday the
New York Curb Exchange announced the suspension of
A. K. Shaw & Co. for failure to meet engagements. Public
utilities have been in fairly good demand at slightly higher
prices, though there were occasional periods when some
individual issue was under strong pressure. American Gas
& Electric, for instance, on Tuesday was under severe
pressure and dropped off 13
4,and Common% points to 157
wealth Edison dipped 3 points to 52. Philadelphia Traction
dropped more than 20 points on a 50-share sale and Long
Island Light pref. B broke more than 21 points. On Wednesday, Lackawanna Securities, which advanced about 3
points following the announcement of the terms of liquidation, had a further advance of 334 points to 2834, but slipped
back to 253
% at the close.
On Wednesday, the dealings were largely professional,
and, while there were some minor advances, trading was, on
the whole, very quiet. Considerable interest was manifest
in mining stocks on Thursday and a number of issues in this
group showed moderate gains, and public utilities displayed
general improvement under the leadership of American
Superpower 1st pref., which forged ahead about 7 points
at its top for the day, closing at 397
4,with a net gain of 334
points. The short position in all securities on the Curb
Exchange as of June 30 1932, totaled 31,666 shares, a decrease of 1,962 shares, compared with the total of 33,628
shares as of June 15 1932. This is a new low record since
the Exchange began to issue figures on the short interest
in the fall of 1931. The high record was established on
Sept. 23 1931, when the short interest amounted to 129,542
shares. During the period covered in the latest compilation,
909,905 shares were dealt in.
Advances and declines for the week were again about
evenly balanced. Among those showing moderate gains
3
were such active stocks as American Beverage, 534 to 5%;
American Superpower, 13% to 1%; Associated Gas & Electric
A 134 to 13%; Brazil Traction & Light, 834 to 9; Deere &
Week Ended
Jahr 8 1932.
$8,556,500 $46,228,000
$8,556,500
19.999,000
17,672,500
Boston.
Co., 33s to 4; Hudson Bay Mining, 134 to 1%
5 ;Humble Oil,
37 to 3734; International Petroleum, 8% to 83/s; National
Power & Light pref., 44 to 46; New Jersey Zinc, 20% to
203/8; Pennroad Corp., 1 to 134; Standard Oil of Indiana,
1834 to 1834; Swift & Co., 95% to 1034; Tech Hughes, 334
3 and United Light & Power A,2 to 234. Prominent
to 3%,
among the active stocks showing losses for the week are such
popular issues as Aluminum Co. of America, 23 to 2234;
American Gas & Electric, 1634 to 153
%; American Light &
Traction, 1334 to 13; Commonwealth Edison, 52 to 5134;
Consolidated Gas of Baltimore,4334 to 42; Creole Petroleum,
23.4 to 234; Electric Bond & Share,6 to 534; Ford of Canada
A,6% to 6; Niagara Hudson Power, 834 to 8; Penn Water &
Power Co., 37 to 3534; United Gas Corp., % to %, and
United Shoe Machinery, 27 to 2634.
A complete record of the Curb Exchange transactions for
the week will be found on page 276.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
$9,921,000
11,949,000
12.769,000
11,589,000
DAILY TRANSACTIONs AT THE BOSTON, PHILADELPHIA AND
BALTIMORE EXCHANGES.
Week Ended
July 8 1932.
247
Stocks
(Number
of
Shares).
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
63,320
80,390
93,515
84,140
Total
Bends (Par Value).
Foreign
Foreign
Domestic. Government. Corporate.
Total.
EX TRA HOLI DAY.
INDEPE NDENCE DAY.
$271,000 82,298,000
$212,000
$1,815,000
327,000 2,703,000
260,000
2,116,000
383.000 2.910,000
2,221.000
306.000
1,923,000
369,000 2,626.000
334,000
321,365 88.075.000 $1.112.000 81.350.000 $10,537,000
Sales at
New York Curb
Exchange.
Week Ended July 8.
1932.
1932.
1931.
1,523,758
24,684,098
67,477,851
$8,075,000 514,967.000
1,112,000
563,000
1,350,000
450,000
8374,260,100
15.673.000
37.934.000
8499,225.000
16,062,000
22.635.000
$10,537.000 $15,980.000
E427.867,100
E537.922,000
Stocks-No,of shares.
Bonds.
Domestic
Foreign Government
Foreign corporate
Total
Jan. Ito July 8.
1931.
321,365
Course of Bank Clearings.
Bank clearings this week will again show a decrease as
compared with a year ago. Preliminary figures compiled
by us, based upon telegraphic advices from the chief cities
of the country, indicate that for the week ended to-day
(Saturday, July 9), bank exchanges for all the cites of
the United States from which it is possible to obtain weekly
returns will be 52.4% below those for the corresponding
week last year. Our preliminary total stands at $4,027,411,552, against ,466,924,446 for the same week in 1931.
At this center there is a loss for the five days ended Friday
of 57.8%. Our comparative summary for the week follows:
Clearings-Returns by Telegraph,
Week Ended July 9.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
1932.
1931.
Per
Cent.
81,960,683,939 *4,643,447,664
347,571,441
138,448,712
344,000,000
214.000,000
322.000,000
132,000,000
80,704,798
45,563,713
77,400,000
40,500,000
130,837,469
72,788,000
No longer will re port clearings.
114.745,535
59,698,831
96,973,011
42,771,528
90.825,208
49,046,277
67,167.211
41,227,766
36.745,603
26,302,172
-57.8
-60.2
-37.8
-59.0
-43.5
-47.7
-44.4
-48.0
-55.9
-46.0
-38.6
-28.4
Twelve cities, five days
Other cities, five days
*2,823,080,938
533,095.355
$6,352,417,640
760,301,160
-55.6
-29.9
Total all cities, five days
All cities, one day
$3,356,176,293
671,235,259
$7,112,718,800
1,354,205,646
-52:8
-50.4
TntRI All Mt'.fnr craPk
24 027 411 M2
IR 4AR 094 44R
-52.4
Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day, inasmuch as the week ends to-day
(Saturday) and the Saturday figures will not be available
until noon to-day. Accordingly, in the above the last day
of the week has to be in all cases estimated.
In the elaborate detailed statement, however, which we
present further below, we are able to give final and complete
results for the week previous, the week ended July 2.
For that week there is a decrease of 38.2%, the aggregate
of clearings for the whole country being $5,420,763,910,
against $8,771,381,225 in the same week in 1931. Outside
of this city there is a decrease of 29.0%, the bank clearings'
at this center recording a loss of 42.6%. We group the
cities now according to the Federal Reserve districts in
which they are located, and from this it appears that in the
New York Reserve District, including this city, the totals
record a loss of 42.4%, in the Boston Reserve District of
31.6% and in the Philadelphia Reserve District of 32.0%.
In the Cleveland Reserve District the totals have been
diminished by 31.1%, in the Richmond Reserve District by
Financial Chronicle
248
18.8%, and in the Atlanta Reserve District by 13.5%. The
Chicago Reserve District suffers a contraction of 33.7%,
the St. Louis Reserve District of 25.3% and in the Minneapolis Reserve District of 4.4%. The Kansas City Reserve
District has a decrease of 21.0%, the Dallas Reserve District
of 30.4% and the San Francisco Reserve District of 30.5%
Week Ended July 2 1932.
1931.
1932.
1929.
1930.
$
Federal Reserve Diets.
$
$
$
%
656,259,996
558,609,760
435.036,159 -31.6
let Boston ____12 cities
297,439,15e
2nd New York. 12 "
3,543,487,256 6,151,574,983 -42.4 7,516,516,391 10,185,176,304
684,319,424
552,962,720
478,293,107 -32.0
3rd Philadelpla 10 "
325,072,955
446,793,523
456,783,940
4th Cleveland__ 6 "
297,087,970 -31.1
204,756,137
190,326,653
153,867,938
5th Richmond _ 6 "
141,255,607 -18.8
114,633,470
166,860,415
124,292,644
109,403,546 -13.6
6th Atlanta __ --I1 "
94,589,336
916,199,666 1,009,963,171
552,639,942 -33.7
7011 Chicago _ - _20 "
373,093,979
176,004,522
168,072,969
113,619,457 -25.3
85,874,323
8th St. Louis__ 5 "
119,566,328
109,561,688
82,683,967 -4.4
79,061,410
9th Minneapolis 7 "
209,853,451
172,388,121
122,040,405 -21.0
98,448,662
10th KansasCity 10 "
72,508,014
57,765,739
46,018,171 -30.4
32,063,743
11th Dallas
5 "
251,697,911 -30.4
333,509,224
175,243,481
358,503,260
12th San Fran 14 "
Total
118 cities
Outside N. Y. City
flenotle
99 offlea
010 005715
901 704 AM
-158
543.834.618
438,966,022
June
1932.
June
1931.
Federal Reserve Diets.
$
$
%
953,157,997 1,906,579,671 -50.6
1st Boston -_ -_14 cities
2nd New York._13 " 14,334,142,434 25,692,124,014 -46.3
1,177,400,399 1,960,125,389 -39.9
3rd Philadelpla 14 "
4th Cleveland--13 "
898,182,130 1,387,191,644 -39.0
484,248,597
644,267,791 -27.9
5th Richmond __9 "
358,854,636
537,203,232 -33.2
6th Atlanta _ _--16 "
1,567,213,655 2,814,415,861 -44.3
7th Chicago --_27 "
576,977,627 -33.0
386,581,051
8th 88. Louis--__7 "
323,537,21e
452,838,776 -28.6
9th Minneapolls13 "
533,193,532
760,084,774 -29.9
10th KansasCRY 14 "
246,971,826
361,178,428 -31.6
10 "
11th Dallas
767,446,725 1,153,532,974 -33.5
12th San Fran 23 "
June
1929.
3
2,231,389,545
33,884,376,220
2,595,355,313
1,760,339,634
791,245,875
686,051,299
3,794,767,849
796,832,585
557,733,959
980,295,140
411,486,433
1,743,756,699
$
2,275,358,574
35,412,033,176
2,698,132.039
1,962,196,243
874,758,024
841,883,823
4,966,186,348
826,580,615
672,981,258
1,501,719,373
489,236,692
2,095,928,184
Total
173 cities 21,948,930,796 39,248,521,381 -44.1 50,243,613,551 59,615,992,347
8,047,063,895 13,186,310,259 -39.0 17,094,893,213 20,056,346,209
Outside N. Y. City
40 reltizsa
1 0/11 111 401
I 190 107 FIR -01 0
1 710 010 077
1 000 7111 001
We append another table showing the clearings by Federal
Reserve districts for the six months for each year back to
1929:
6 Months
1932.
6 Months Inc.or 6 Months
1931.
Dec.
1930.
6 Months
1929,
8
3
$
Federal Reserve Diets
3
%
1st Boston ____14 cities 6,623,951,162 11,122,872,048 -40.4 13,555,150,110 14,383,627,663
2nd New York_ _13 " 88,821,929,140 153,686,083,624 -42.4 194,305,523,813 233,220,791,072
7,728,165,159 11,194,743,318 -31.0 15,084,873,106 16,524,569,643
2nd Philadelpla 14 "
5,434,159,578 8,485,363,982 -38.0 10,580,430,543 11,770,066,986
4th Cleveland__13 "
2,850,135,609 3,801,854,949 -250 4,756,132,888 4,756,132,888
5th Richmond __9 "
2,457,771,436 3,397,248.975 -27.6 4,450,847,899 4,957,057,168
6th Atlanta_ _ __16 "
9,775,616,252 17,352,382,456 -43.7 23,270,912,485 27,806,732,686
7th Chicago ___27 "
2,447,712,128 3,458,924,346 -29.1 4,841,255,272 5,326,377,815
85h St. Louis---- "
1,814,033,205 2,535,673,228 -27.3 3,028,811,557 3,313,947,096
95h Minneap011.413 "
3,270,716,351 4,559,218,153 -28.4 6,018,859,578 6,722,599,179
10th KansasCity 14 "
1,619,134,056 2,262,062,544 -28.4 2,733,257,954 3,282,314.606
10 "
11th Dallas
5,030,881,032 7,036,753,305 -28.9 9,118,085,411 9,902,878,558
12th San Fran 23 "
173 cities 137.874,202,119 228,903,211,928 -39.8 291,775,140,616 341,966,037,370
Total
51,751,940,129 78,825,465,008 -34.3 101,877.360,242 113,473,635.358
Outside N. Y. City
Canada
1932.
1931.
Total bonds
1931.
1932.
176,718,672
331,993,460
$761,926,500
372,796,500
399,841,100
8926,207,700
399,725,100
88,214,200
$255,775,800 $265,018,350 $1,534,584,100 81,414.147,000
The volume of transactions in share properties on the
New York Stock Exchange each month since Jan. 1 for the
years 1929 to 1932 is indicated in the following:
1932.
1931.
1930.
1929.
No. Shares. No. Shares. No. Shares. No. Shares.
Month of January
February
March
34,362,383
31,716,267
33,031,499
First quarter
42,503,382
64.181,836
65.658,034
62,308,290 110,805,940
67,834,100 77,968,730
96,552,040 105,661,570
99,110,149 172,343,252 226,694,430 294,436,240
Month of April
May
June
31,470,916
23,136,913
23,000,594
Second quarter_
Six monthn
54,346,836 111,041,000
46,659,525 78,340,030
58,643,847 78,593,250
82.600,470
91,283,550
69,546,040
77,608,423 159,650,208 265,974,280 243,430,060
176 718 872
391.003.400
402669 710
097 SiliFt 910
The following compilation covers the clearings by months
since Jan. 1 1932 and 1931:
MONTHLY CLEARINGS.
Clearings. Total all.
Clearings Outside New York.
Month.
1932.
1931.
%
1932.
1931.
%
3
8
3
8
Jan-- _ 26,483,613,804 39,676,379,908 -33.2 9,799,279,675 14,375,919,731 -31.8
Feb.__ 21,364,746,405 32,942,435,566 -35.1 8,146,220,677 11,719,181,974 -30.5
Mar.- 24,517,396,666 39,301,344,645 -37.6 8,907,952,306 13,132,959,663 -32.2
1st qu_ 72,365,756,875 111920160,119-35.3 26,853,452,658 39,228,041,368 -31.5
April-- 22,861,717,985 39,852,451,460 -42.6 8,892.895,892 13,471,643,296 -34.0
May. 20,697.796,463 37,884,078,968 -45.4 7,958,527,684 12,940,470,085 -38.5
June.. 21,948,930,796 39,246,521,381 -44.1 8,047,063,895 13,186,310,259 39.0
2d qu- 65,508,445,244 116983051,809 -44.0 24,898,487,471 39,598,423,640 -37.1
6 mos. 137874202,119 228903211,928-39.0 51,751,940,129 78,826,465,008 -34.3
June
1930.
Inc or
Dec.
Six Months.
Month of June.
Description.
5,420,763,910 8,771,381,225 -38.2 11,130,530,800 14,275,125,061
1,972,787,714 2,779,909,726 -29.0 3,801,473,951 4,324,216,185
We also furnish to-day a summary by Federal Reserve
districts of the clearings for the month of June. For that
month there is
.a decrease for the entire body of clearing
houses of 44.1%, the 1932 aggregate of clearings being
$21,948,930,796, and the 1931 aggregate $39,246,521,381.
In the New York Reserve District the totals register a
diminution of 46.3%, in the Boston Reserve District of
50.5% and in the Philadelphia Reserve District of 39.9%.
In the Cleveland Reserve District the falling off is 39.0%,
in the Richmond Reserve District 27.9% and in the Atlanta
Reserve District of 33.2%. The Chicago Reserve District
registers a decline of 44.3%, the St. Louis Reserve District
of 33.0% and the Minneapolis Reserve District of 28.6
The Kansas City Reserve District suffers a loss of 29.9%,
the Dallas Reserve District of 31.6% and the San Francisco Reserve District of 33.5%.
1-...,.....
Our usual monthly detailed statement of transactions on
the New York Stock Exchange is appended. The results for
June and the six months of 1932 and 1931 are given below:
Stock, number of shares_ 23,000,594 58,643,847
Bonds.
Railroad & miscell. bonds 8122,480,200 8166,455,700
State, foreign, &c., bonds 67,001,000 83,521,500
U.S. Government bonds_ 66,294,600 15,041,150
SUMMARY OF BANK CLEARINGS.
Inc.07
Dec.
July 9 1932
32 cities 6.293.210.077 8.780.093.381 -28.3 10,159,837,610 12,057,433,554
The course of bank clearings at leading cities of the country
for the month of June and since Jan. 1 in each of the last
four years is shown in the subjoined statements:
BANK CLEARINGS AT LEADING CITIES.
June
Jan. 1 to June 30(000,0008
1932. 1931. 1930. 1929. 1932. 1831. 1930. 1929.
$
omitted.)
New York
13,902 26,060 33,149 34,561 86,122 150,077 189.898 228,492
990 1.795 2,4812,655 6,213 11,112 15,126
Chicago
Boston
804 1,708 1,991 1,988 5,721
9,922 12,053 12,654
Philadelphia
1,087 1.831 2,239 2,529 7,189 10,399 14,157 15,448
544
575
St. Louis
416
1,658 2,470 3,231
267
3,652
586
772
826 2,223 3,648 4,628 4,960
343
Pittsburgh
408
599
785
834 2,685 3,748 5,078 5,295
San Francisco
278
318
Cincinnati
175
240
1,104 1,493
1,687
1,964
336
387
426
1,497 2,004 2,452 2,569
Baltimore
242
518
579 1,679 2,298 3,199 3.474
380
Kansas City
278
576
662 1,763 2.711
463
Cleveland
274
3,467 3,8713
181
174
192
104
720 1,083
New Orleans
1,219
1,333
364
334
292
1,202
217
Minneapolis
1,626
1,980 2,067
152
464
166
74
98
Louisville
594 1,006
997
715
964 1,819 3,486 4,828 5,843
Detroit
580
300
79
103
128
151
435
Milwaukee
628
788
885
34
48
58
69
226
Providence
292
365
427
149
175
189
595
92
Omaha
918
1,117
1,159
110
172
226
272
695
Buffalo
1,033
1,355 1,570
104
111
St. Paul
68
90
396
529
732
607
52
73
91
105
332
Indianapolis
449
566
630
112
132
81
150
492
Denver
637
841
960
112
148
187
Richmond
171
681
883 1,136
1,089
37
52
273
Memphis
72
79
327
502
554
99
141
171
Seattle
219
607
828
1,036
1,314
Hartford
47
35
65
75
218
302
416
509
39
74
Salt Lake City
60
83
247
367
457
475
20,303 36,760 46,532 49,299 127,257 213,852 272,985 320,951
1,646 2,487 3,712 5,318 10,817 15,051 18,790 21,016
__Total all
21,949 39,247 50,244 54,617 137.874 228,903 291,775 341,968
Outside N.Y.City- 8,047 13.186 17.095 20,056 51,752 78,826 101,877 113,474
Total
Other cities
We now add out detailed statement showing the figures
for each city separately for June and since Jan. 1 for two
years and for tne week ended July 2 for four years:
CLEARINGS FOR JUNE, SINCE JANUARY 1, AND FOR WEEK ENDING JULY 2.
Month of June.
Six Months Ended June 30.
Week Ended July 2.
Clearings at1932.
1931.
$
8
First Federal Rese rve District- Boston2,981,292
2,103,092
Maine-Bangor
9,287.577
13.104,479
Portland
804.000.000 1.707,953,225
Mass.-Boston
4,381,695
3,060,971
Fall River
1,556,243
2,133,836
Holyoke
1,319.329
2,140.170
Lowell
5,160,853
2,372,272
New Bedford
19,596.246
13,953,000
Springfield
13,195,000
9,298,036
Worcester
Conn.-Hartford.... 34,509,295 46,760,787
29.850,261
20,951,263
New Haven
9,085,300
5,027,500
Waterbury
47,761,300
33,965,400
R. 1.-Providence...
2,475,227
1,754,019
N. 88.-Manchester
Total(14 cities) _ _
1931.
Inc. or
Dec.
1932.
1931.
8
%
$
$
-25.8
-26.0
-42.4
-25.3
-21.2
-23.8
-29.8
-26.6
-23.7
-24.4
-18.2
-37.8
-22.4
-19.5
548,684
2.477,003
264,000,000
585,703
834,561
3.475,218
383,679.062
920,657
317,095
504,821
3,420,000
2,095,180
9,033,552
5,004,910
408,644
2,315,479
4,827,697
2,957,946
14.265,387
7,880.768
8,771,900
680,310
12,575,700 -30.2
896,042 -24.1
10,974,500 . 17,569,400
1,032,829
1,314,135
8,623,951.162 11,122,872,048 -40.4
297,439,158
435,035,159 -31.8
558,609,760 656,289,998
Inc. or
Dec.
1932.
%
$
-29.5
-29.1
-52.9
-30.1
-27.1
-38.4
-54.0
-28.8
-29.5
-26.2
-29.8
-44.7
-28.9
-29.1
943,157.997 1,908,579,671 -50.5
11,682,648
58,943,205
6,720,772,974
19,181,407
10,694,919
8,180,117
16,509,257
86,849,296
57,591,258
218,144.331
146.805,212
30,247,100
226,368,200
11,981,238
15,737,283
79,651,429
9,921,966,182
25.678,126
13,568,678
12,347,663
23,525,321
118,307,567
75,526,068
301.860,788
179,560,104
48,646,900
291,604,700
14,891,33
Inc. or
Dec.
%
1930.
1929.
-
$
-34.3
680,187
-28.7
4,182,928
-31.2 503,173,479
-36.4
955,841
-22.0
-78.2
-29.2
-29.2
-36.7
-36.5
446.602
1,092,244
5,386,650
3,733,767
18,372.186
8,578,747
3
962.786
4,870,841
584,000,000
1,118,004
1,333,461
1,138,444
6,927,460
4,373,278
21,734,004
10,920,195
Volume 135
Financial Chronicle
2-13
CLEARINGS-(Continued.)
Month of June.
Clearings at1932.
Six Months Ended June 30.
Inc. or
Dec.
1031.
8
$
Second Federal Re serve District -New YorkN. Y.-Albany
20,426,878
25,333,619
Binghamton
3,324.920
4,579,200
Buffalo
110,415,197
171,853,125
Elmira
3,329,045
4,714,240
Jamestown
2,770,541
4,186,952
New York
13,901,866,901 26,060,211,122
Rochester
30,462,102
43,725,756
Syracuse
15,366,113
21,234,479
Conn.-Stamford
15,168.065
14,359,311
N. J.-Montclair.2,726,379
3,948,564
Newark
102,069,520
157,566,727
Northern N. J
119,634,048
171,132,806
Oranges
6,582,722
9,278,113
Total(13 cities)
1932.
1931.
Inc. or
Dec.
Sleek Ended July 2.
1932.
$
--19.4
143,442,202
164,718,685
--27.4
22,051,159
29,973,458
--35.8
694,927,022 1,032,643,351
--2.9
20,833,616
27,672,712
--33.8
16,060,631
25,648,728
--46.7 86,122,261,990 150,076,746,920
--30.3
197,127,687
256,984,225
--27.6
102,737,808
127,695,817
+5.6
72,145.664
84,081,067
--31.0
14,627,379
19,487,968
--35.2
611,565,425
819,515,695
--30.1
768.275.088
978,676,021
--29.1
35,873,469
42,239,977
Inc.or
Dec.
1931.
1930.
1929.
5
--I2.9
9,505,289
8,609,264
--26.4
911,786
1,573,525
32,167,491
--32.7
46,973,880
1,364,832
--24.7
1,344,307
--37.3
781,868
969,448
--42.6 3,427,976,196 5,991,471,499
--23.3
--19.5
8,989,699
13,688,949
--I4.2
4,772,188
6,504,148
--24.9
2,368,282
3,669,629
--25.4
1,274,215
998,130
--2I.5
22,973,606
30,137,842
--15.1
30,401,804
46,634,362
+10.4
7,593.440
8,023.997
---42.1
1,900.969
2,063,734
--31.5
57,977,162
74,767,413
i-1.5
1,377,444
1,522,189
--17.7
1,481,696
1.758,836
---42.6 7,329,056,849 9,951,908,876
-34.3
--26.6
-35.5
+12.8
-23.8
-34.8
17,984,930
8,135,162
4,827,966
1,046,503
37,039,081
48,095,189
25,037,374
10,707.998
6,513.929
1,237,534
42,130,952
59,503.472
14,334,142,431 26,692,124,014 -46.3 88,821,929,140 153,686,083,624
-42.2 3,543,487,256 6,151,574,983 -42.4 7,516,516,391 0185.176,304
Third Federal Res erve District -Philadelph iaPa.-Altoona
1,724,029
2,829,013 --39.1
Bethlehem
11,852,068
13,772,207 --13.9
Chester
1,624,194
3,662,869 --55.7
Harrisburg
10,375,420
15,307,577 --32.2
Lancaster
4,872,054
10,865,734 --55.2
Lebanon
1,379,187
2,474,393 ---14.3
Norristown
2,191,146
2,958,808 --25.9
Philadelphia
1,087,000,000 1,831,000,000 ---40.6
Reading
9,547,108
12,632,548 --24.4
Scranton
9.777,803
17,777,870 --45.0
Wilkes-Barre
7,479,318
12,790,512 --41.5
York
5,017,072
7,186,858 ---30.2
N.1.-Camden
5,327,000
8,128,000
Trenton
19,234,000
18,739,000 --2.6
Total(14 cities) _ --- 1,177.400.399 1.960.125.389 -39.9
7.728,164,169 11,194.743,318 -31.0
Fourth Federal Re serve District -Cleveland
Ohio-Akron
d 1,869,000
13,116,000
Canton
b
b
Cincinnati
165,035,407
239,580,052
Cleveland
274,371,207
463,216,664
Columbus
31,644,200
51,519,800
Hamilton
2,016,714
2,991,124
Lorain
486,922
1,304,659
Mansfield
c4,781,605
6.295,487
Youngstown
b
b
Pa.-Beaver Co
888,611
1,350,940
Franklin
469,138
640,831
Greensburg
1,416,860
3,728,552
Pittsburgh
342,652,329
586,179,354
Ky.-Lexington
3,727,540
4,495,373
W.Va.-Wheeling_ - 6,823.197
12,773,008
-85.8
b
-29.9
-40.8
-38.6
-32.6
-62.7
-24.4
b
-34.2
-26.8
-62.0
-41.6
-17.1
-46.6
11,227,000
b
1.103,643,853
1.763,178,728
207,228,400
12,267,652
3,540,084
19,477,757
b
5,347,518
2,768,486
7,688,884
2,223,483.261
30,197,633
441,105,322
85,706,000
b
1,492,947,351
2,711,003,995
337,996,500
20,183,242
7,610,135
38,772,525
b
8,774,818
3,752,464
22,509,303
3,648,242,763
32,367,965
75,496,921
--39.1
--26.2
--65.8
--39.1
--6.7
--41.6
846,182,730 1,387,191,844 -39.0
5,434,154,578
8,485,363,982 -36.0
-25.8
10,801,471
71,802,783
680,886,897
18,278,750
21,758,343
24,657,650
1,496,614,455
6,458,135
b
518,877,125
16,822,833
91,197,142
882,680,568
44,844,238
45,205,684
56,614,089
2,004,255,257
10,441,040
b
649,794,098
--20.I
19,438,525
22,979,023 -15.4
20,054,622
30,010,231
644,267,791 -27.9
2,850,135,609
3,801,854,949 -25.0
114,633,470
141,256,607 -18.8
153,867,938
190,326,653
2,127,321
9,506,349
26,700,000
555,752
4,340,860 -51.0
10,485,401 -9.3
30,670,910 --12.9
1,164,450 --52.3
3,000,000
16,594,836
28,930,601
1,471,199
3,500.000
21,382.787
48,875,777
1,638,310
446,757
8,236,960
742,859 -39.9
9,290,187 -11.3
1,400,000
10,867,557
1,790.124
12,326,763
9.468,352
860,205
11,519,309 -17.8
1,194,880 -28.0
17,605,864
1,781,860
21.103,640
2,116,148
1.066,000
1,566,000 -31.9
2,214,328
3,095.000
143,426
25,478.214
169,978 -1-5.6
38,258,712 -33.4
235.899
41,290,500
406,437
50,615,429
94,589.338
109,403,546 -13.5
124,292,644
166.850,415
103,814
787,145
74,288,596
164,289 --36.8
751,834 +4.8
118,261,033 --37.2
217,967
784.502
162,098,081
379,304
1,329.995
196.557.622
Total(13 cities)----
Fifth Federal Rose rye District- RichmondW.•Va.-Huntington_
1,809,434
2,688,007
Va.-Norfolk
12,413,000
16,229,592
Richmond
111,670,555
148,312,043
N.C.-Raleigh
2,677,453
7,496,866
S. C.-Charleston_ _ _
3.372.541
6,999,141
Columbia
4,388,940
9,149,682
Md.-Baltimore
2.41,505,439
336,374,155
Frederick
961,574
1,903,912
Hagerstown
D. C.-Washington_
85,449,661
115,114,393
Total(9 cities)
464,248,597
Sixth Federal Rest rve District- AtlantaTenn.-Knoxville_ _ _ 13,917,435
7,000,000
Nashville
37,113,821
53,953.775
Ga.-Atianta
108,900,000
151,152,767
Augusta
2,986,133
5,155,531
Columbus
1,584,764
2,978,605
Macon
2,035,637
3,340.161
Fla.-Jacksonville _ _
36,325,652
52,322,598
Tampa
4,564,283
6,831,736
Ala.-Birmingham __ _
35,847,521
54,075,589
Mobile
3,169,933
5,642,444
Montgomery
1,866,222
2,704,914
Miss.-Hattiesburg -1,975,000
3,922,000
Jackson
3,301,862
5,121,839
Meridian
1,012,662
1,387,010
Vicksburg
446,570
553,500
La.-New Orleans_ _ _
103,807,137
181,060,763
Total(16 cities)-- - -
358,854,636
-32.7
-23.6
-24.7
-64.3
-51.8
-52.0
-28.2
-49.5
+75.8
-31.2
-28.0
-42.1
-46.8
-39.1
-30.6
-33.2
-33.7
-43.8
-31.0
-49.6
-35.5
-27.0
-19.3
-42.7
537,203,232 --33.2
12,362,999
21,543,304 --42.6
68,219.095
86,623,223 --21.2
11,578,474
23,627,191 --51.0
64,723,089
91,421,338 --29.2
32,029,871
60,807.011 --47.3
9,944,529
14,506,043 --31.4
11,907,551
16,938.289 --29.7
7.189,000,000 10.399,200,000 --30.9
62,424,069
79,490,579 --21.5
65,069,239
112,427,729 --42.1
46,544,970
80.753,397 --42.4
31,706,583
46,586,614 --31.9
30.046,000
48,451,000 --38.0
92,607,700
112,367,600 --17.6
68,340,158
245,371,229
746,975,000
22,531,074
12,423,626
13,162,432
262,530,034
31,739,963
243,512,321
23,616,707
13.593,880
19,376,000
23,917,197
7,965,331
3,167,651
719,548,833
52,500,000
346,028,311
957,815.274
35,318,849
18,928.447
21,441,982
336,734,980
41,793,231
364,039,260
37,192,712
- 19.076,521
31,124,000
38,610,400
10,270,895
3,869,182
1,082,506,431
564.766 -37.3
3,927,915 -72.3
1,016,145 --52.0
1,423,603
4,859,437
1,370,072
1,708,280
5,342,867
2,032,618
1,096,474
2,278,483 -51.9
1,849,074
2.045,957
309,000,000
2,646,662
2,466,111
2,128,795
1,262,412
453,000,000
3,131,465
4,263,518
3,024,221
1,651,594
--31.8
-15.5
-42.2
-29.6
4,541,006
5,435,000 -16.4
325,072,955
478,293.107 -32.0
533,000,000 644,000,000
3,965.361
5,955,925
4,998,310
6,527.867
4,475,044
4,681,263
1,797,819
2,468,923
5,224,000
9,525,724
562.962,720 684,319,424
--56.9
a389.000
2,472,000 ---84.3
4.653,000
7.006,000
--26.I
--35.0
--38.7
--39.2
--53.5
--50.0
43,507,813
66.158,338
7,245,700
50,456,393 --13.8
100,190,228 -34.0
11,092,900 --34.7
65,323,555
135,064,016
15,070,700
76,176,615
149,653,835
18,107,500
c887,050
1,402,530 -36.8
1,978,857
1.867,888
86,568,236
131.473,919 -34.2
234,693.812
193,981.685
204,756,137
297,087.970 -31.1
456,783,940
446,793,523
412,067
3,340,186
28,588,772
502,734 --I8.0
3,784,966 --11.8
33,808,038 --15.4
1,131,599
3.479,455
37,298,631
1.358.392
5,254,636
39,845,73E1
--35.8
--2I.9
--22.9
--59.4
--51.9
--56.5
--21.3
--38.1
--30.2
--29.1
--22.0
--36.2
--34.4
--38.6
--22.0
--24.1
--33.I
--36.5
--28.7
--37.7
--38.I
--22.4
--I8.1
--33.5
2,457,771,436 3,397,248,975 -27.6
Seventh Federal R eservc Distric t--ChicagoMich.-Adrian_ -. _
421,616
696,312 -39.5
3,190,475
4,450,782 --28.3
Ann Arbor
2,296,086
3,807,165 -39.7
16.373,295
22,259,949 --26.4
Detroit
300,276,427
579.771,628 -48.2 1,818,625,269 3,485,741,737 --47.9
Flint
4,280,121
9,516,876 --55.0
35,977,097
59,351,966 --39.4
Grand Rapids
12,211,108
19,846,431 --38.3
77,445,867
121,302,747 --36.2
Jackson
1,977,064
3,621,998 -45.4
14,637,820
21,909,349
--32.8
Lansing
5,364,611
11,531,546 --53.5
38,838,860
73,559.850 --47.3
Ind.-Ft. Wayne_ _ _
4,589,409
11,592,020 --51.9
29,552,460
66.053,638 --55.3
Gary
7,271,435
16,089,045 --54.8
44,600,167
98,472,007 --54.5
Indianapolis
51,727,595
72,506,000 --25.8
331,904,151
449,216,000 --25.7
South Bend
4,335,472
7,823,980 -44.6
34.017,410
54,301.896
--37.3
Terre Haute
12,366,776
18,425,859 --27.5
85,619,966
115,834,802 --26.1
Wis.-Madison
4,240,287
10,318,752 -58.9
32,178,714
63,494,902 --49.2
Milwaukee
78,837,837
102,853,281 -23.3
435,110,982
627,691,777 --29.1
Oshkosh
1,775,634
2,677,336 --32.9
11,654,470
I7,198,85S --32.2
Iowa- Cedar Rapids
3,224,288
11,172,351 --71.2
19.977,434
68,836.047 --71.0
Davenport
20,930,894
43,479,071 --51.8
135,574,377
291,306,590
--53.5
Des Moines
22,545,737
28,018,524 --19.6
136,284,449
177,913,860 --17.8
Iowa City
b
b
Sioux City
9,403,855
17,665,900 -46.8
66,349,353
103,595,438 --35.9
Waterloo
1,239,090
3,170,391 --60.9
8,463,026
21,526,108 --60.7
Ill.-Aurora
1,953,237
3,887,963 --47.2
11,389,736
23,294,274 --50.3
Bloomington
4,140,585
6,407,167 --33.8
26,761,175
40,677,051 --34.2
Chicago
990,490,071 1,795,175,859 -39.3 6,212,946,611
11,112,426,362 --44.1
Decatur
2.201,968
3,997,650 -44.9
15,475,844
24,468,709 --36.8
Peoria
10,478,495
13,284,155 --21.2
65,790,226
87,692,801 --23.7
Rockford
2,030,244
8,002,974 --74.6
22,525,528
60,555.749
--62.8
Springfield
6,570,713
9,075,647 --27.6
44,351,502
59,249,206 --25.1
Total(27 cities)-- 1,587,213,655 2,814,415,861 -44.3 9,775,616,252
17,352,382,451 -43.7
Eighth Federal Re serve District -St. LouisInd.-Evansville
b
b
b
New Albany
471,711
1,302,739 -63.9
3,098,334
6,951,516 -55.5
Mo.-St. Louts
267,079,201
415,812,516 -35.8 1,657,566,998 2,470,245,720
--32.9
Ky.-Louisville
73,618,642
98.186,081 -25.1
463,603,583
594,015,262 -22.0
Owensboro
b
b
b
Paducah
5,348,644
4,895,653
+9.3
32,001,821
35,691,766 -10.3
Tenn.-Memphis37,208,470
52,475,263 -29.1
273,426,267
327,278.534 -16.2
481,323
608,201 -28.8
2,986,542
4,099,417 -27.2
2,375,059
QuInoY
3.699,174 -33.0
15,030,581
20,602,131 -26.0
Total(7 cities)
386,581,050
576.977,627 -33.0 2,447,712,126 3,458.924,346 -29.1
354,234
e1,089,784
487,483
774,605
1,759.637 --56.0
2,500.000
3.000,000
62,079,315
78,422,209 --20.8
89,403,631
110,857,658
2,431,370
3,929,950 -38.1
5,293,403
6,994,362
1,547.500
1.263,001
2,986,201 -48.2
1,925,419 -34.4
3,298,679
3.591,043
4,330.000
4,729,005
12,611,000
902,354
4,367,605
18,541,000 -32.0
1,240,949 -27.3
6,336,899 --31.1
25,119,000
6,118,438
6,073.585
29,298,000
5,885,011
6,983,133
17,567,077
23,998,900 -26.8
33,299,153
41,369.316
650,362
2,548,350 --74.5
3,180,964
3,681,326
6,130,711
5,222,429 +17:i
7,356,639
10,733,145
2,183,934
225,061
3,781,807 --42.i
795,373 --71.7
5.728,663
1,264,000
6.785,500
1.818,672
1,769,444
639,479,267
1,192,641
4.810,504
3,394,057
2,129,627
1,826,353
672.972,371
1,175,269
6,095,481
4.367,398
2.651,808
1,098,979
242,293,138
452,901
2,434,087
473,311
1,282,033
1,493,427
364,054,868
922,057.
3,082,040
1.298,620
1,304,497
373,093,979
562,639,942 -33.7
57,400,000
17,326,451
83,200,000 --31.0
18,527,237 --6.5
112,600,000
37,821,160
121,600,000
34,248,224
9,482,214
94,295
571,363
10,851,851 --12.6
100,000 --5.7
940.369 --39.2
16,398.372
166,052
1,087,385
17.884,192
482,297
1,789,809
54,874,323
113,619,457 -25.3
168,072,969
176,004,522
-26.4
-33.4
--50.9
-21.0
-63.6
-1.7
916,199,666 1,009,963,171
Financial Chronicle
July 9 1932
CLEARINGS-(Conc2uded)
1931.
1932.
Week Ended July 2.
Si: Months Ended June 30.
Month of June.
Clearings atInc. or
Dec.
1932.
1931.
Inc. or
Dec.
$
$
%
1932.
1931.
$
$
Inc. or
Dec. •
%
1929.
1930.
$
$
$
$
%
Ninth Federal Res erve District -Minneapoll s25,214,441 -75.0
6,292,691
Minn.-Duluth
291,575,464 -25.6
216,847,088
Minneapolis
1,516,683 -23.0
1,167,900
Rochester
90,373,195 -24.5
St. Paul
68,230,290
8,357,033 -15.2
7,084.916
No. Dak.-Fargo
6,026,000 -18.6
4,906,000
Grand Forks
1,400,000 -39.9
840.831
Minot
3,751,816 -29.1
2,660,166
S. D.-Aberdeen_ _
7,050,575 -54.8
3,191,232
Sioux Falls
2,403,383 -35.1
1,559,506
Mont.- Billings
3,630,497 -38.0
2,249,614
Great Falls
11,201,218 -25.9
8,298,812
Helena
328,470 -36.6
208,172
Lewistown
56,218,336
1,202,002,151
6,598,117
396,484,241
45,401,179
27,494,000
4,951,471
15,656,348
22,235,105
8,964,964
13,250,545
43,650,053
1,126,291
108,535,495
1,626,197,565
8,669,978
529,282,365
49,585,459
35,241,000
7,527,777
22,208,097
44,044,152
14,108,932
20,598,079
68,040,088
1,634,241
-48.2
-26.1
-23.9
-25.1
-8.4
-22.0
-34.2
-29.5
-49.5
-36.5
-35.5
-35.8
-31.1
1,800,639
58.588,787
3,729,918 -51.7
56,372,327 +3.9
5.057,070
76,760,684
8,796,546
77,666,802
14,299,597
1,506,693
17,742,606 -19.4
1,677,894 -10.2
22,088,897
1,868,004
25,759,617
2,123,176
1,130,394
1.965,991
452.838,776 -28.6
1.844,033,205
2,535,673,228 -27.3
Tenth Federal Res erve District -Kansas Cit y1,217,797 -38.7
746,748
Neb.-Fremont
1,500,000 -58.1
628,325
Hastings
12,803,363 -40.6
7,611,161
Lincoln
148,748,000 -38.4
91,685,547
Omaha
11,259,735 -28.5
8,045,223
Kan.-Kansas City....
12,147,165 -33.5
8,083,370
Topeka
22,390,206 -23.0
17,246.247
Wichita
2,001,927 -35.3
1,294,880
Mo.-Joplin
380,048,793 -26.7
278,394,847
Kansas City
17,773,802 -38.4
10,993,861
St. Joseph
28,870,556 -29.6
20,315,086
Okla.-Tulsa
4,469,112 -24.4
3,380,619
0010.-Colo. Springs_
111,822,190 -27.3
81,350,406
Denver
6,032,128 -0.0
3,417,212
Pueblo
4.919,033
4,340,655
53,600,432
595,459,612
47,887,096
49,156,362
105,325,101
8,987,878
1,678,899,904
72,773,861
117,110,722
19,143,789
491,915,763
21,196,146
7,229,748
10,067,719
77,062,966
918,394,892
58,611,911
73,975,430
137,144,376
13,221,889
2,298,386,148
111,580,346
168,825,923
25,727,173
637,362,721
31,656,911
-32.0
-56.9
-30.4
-35.2
-18.3
-35.6
-23.2
-32.0
-27.0
-34.8
-30.6
-25.6
-22.8
-33.0
760.084,774 -29.9
3,270,716,354
4,569,248.153 -28.4
Eleventh Federal Reserve Distr ct-Dallas7,114,916 -32.3
4,028,605
Tex.-Austin
6,018.977 -35.3
3,893,717
Beaumont
149,625,488 -28.4
107,068,172
Dallas
19,293,152 -46.5
10,321,470
El Paso
21,609,139
31,143,949 -30.6
Fort Worth
10,362,000 -12.5
9,063,000
Galveston
117,225,451 -33.2
78,309,393
Houston
2,014,705 -49.4
1,019,183
Port Arthur
4,186,000 -45.5
2,282,000
Wichita Falls
14,193,790 -33.9
9,377,107
La.-Shreveport
25,155,444
25,622,532
696,913,698
66,545,467
148,913,304
55,744,000
515,834.292
7,363,374
15,081,000
63,961,045
361,178,428 -31.8
1,819,134,056
Total (13 cities)._ _ -
Total(14 cit1es)._ - _
Total(10 cities)--- _
323,537,218
533,193,532
246,971,826
Twelfth Federal R eserve Metric 1-San Franc Isco-3,000,000 -39.5
1,815,000
ash.-Bellinghana_ _
99,144,705
141,431,229 -30.0
Seattle
41,768,000 -43.3
23,703,000
Spokane
3,534.404 -57.2
1,516,543
Yakima
5.998,607 -31.0
4.136,797
Idaho-Boise
1,478,000 -53.4
589,900
Oregon-Eugene
127,690,458 -33.2
75,399,819
Portland
4,531,775 -65.3
1,576.748
Utah-Ogden
59,533,176 -34.2
39,198,539
Salt Lake CRY
13,403,000 -36.8
8.476,054
Arizona-Phoenix__4,028,399 -28.2
2,891,060
.
Calif.-Bakersfield-.
18,136,234 -23.3
13,914,516
Berkeley
23,244,368 -43.3
13,176,882
Long Beach
No longer will report clearing s.
Los Angeles
2,409,602 -30.9
1,665,771
Modesto
19,237,821 -33.6
12,782,727
Pasadena
3,763.298 -22.2
2,927,074
Riverside
34,538,610 -30.6
23,953,811
Sacramento
16,645,781 -25.9
12,327,277
San Diego
599,134,137 -31.9
408,274,910
San Francisco
9.813,323 -31.2
6,752,125
San Jose
6,712.739 -30.7
4,650,551
Santa Barbara
6,849,113 -42.9
3,911,715
Santa Monica
6,650,900 -29.9
4,663,400
Stockton
38,986,337
40,572,908
927,135,322
126,294,645
197,955,060
66,077,000
725,181,253
12.475,777
32,175,000
95,209,242
-35.5
-36.8
-24.8
-47.3
-25.8
-15.6
-28.9
-41.0
-53.1
-32.8
2,262,062,544 -28.4
10,935,540
606,684,197
156.224.000
11,657,608
25,097,027
4,376,326
477,420.524
11,587,869
246,768,782
61,912,898
18,212,284
91,385,015
86,053,905
17,419,000
828,084,166
238,332.000
22,623,463
33.062,613
7,972,000
718,219,285
28,266,245
387,282,692
85,656.000
25,419,419
100,189,737
150,772.060
-37.2
-26.7
-34.5
-48.5
-24.1
-45.1
-33.5
-58.9
-32.5
-27.7
-28.3
-8.8
-42.9
10,797,100
93,799,997
23,250,187
165,399,946
83,032,370
2,685,356,114
42,694.356
31,030,227
25,889,978
31,317,782
15.054,630
132,448,63
23,181,17
183.135,27
118,626,20
3,745,879,90
63,393,51
46,717,02
43,587,95
41,430,300
-28.3
-29.2
+0.3
-9.7
-30.0
-28.3
-32.7
-33.6
-4.6
-24.4
591,534
751,629 -21.3
946,067
308,169
439,599 -29.9
627,363
735,793
1,969.994
-0.2
2,213,603
3.354,000
79,061,410
82,683,967
-4.4
109,561,688
119,566328
191,596
117,188
1.694,661
21,254,425
299,049
261,990
3,102,048
27,688,873
-35.9
-55.3
-45.4
-23.2
318,954
514,221
3,670,145
39,129,402
433,476
624,964
4,340,068
42,251,385
1,647,201
4,315,288
3,127,365 -47.3
5.744,719 -24.9
3,995,225
8,597.725
4,045,235
10,971,174
64,055,374
2,091,374
76,071,908 -15.8
3,731,223 -43.9
109,002,364
4,908,165
137,390,601
8,273,082
668,310 -39.5
404,329
aa
677,226
1144,921 -49.6
1,006,656
a
1.245,284
1,565,898
a
1,957,568
122,040,405 -21.0
172,388,121
209,853,451
96,448,662
1,008,322
1,482,354 -32.0
1,528,534
1,945,439
22,847,404
30,427,749 -24.9
36,658.059
47,290,714
4,508,875
1,748,000
8,479,958 -48.8
2,234,000 -21.8
10,283,662
4,177,000
13,740,214
4,172,000
1,951,142
3,424,110 -43.0
5,118,484
5,359,647
32,063,743
46,048,171 -30.4
57,765,739
72,508,014
22,490,194
5,789,000
462,430
28,672,805 -21.6
8,898,000 -34.9
734,840 -37.1
37,635,324
11,843,000
974,623
49,300,780
13,447,000
1,614,010
16,473,569
25,561,31• -35.6
34,060,352
39,696,837
10,867.113
13,995,544 -22.4
18,311,176
20,408,056
5,336.326 -45.3
2,918.572
No longer will report dead nes.
7,269,951
9,072,873
4,258,627 -25.4
5,564,107
6.819.268
-55.4
7,758,953
-28.9
5,548,511
-28.8 194,919,699
-54.3
3,473,459
-32.7
2.097,220
-45.3
1,979,449
-49.5
2,273,400
5,984,898
6,990,073
193,218,958
4,492,100
2,075,849
2,375,458
3,007.300
3,177,636
4,144,770
2,823,347
101,752.074
1.550,232
1,101,336
765,747
927,461
9,284,637
3,863,944
142,830,076
3,389,838
1,635,575
1.400,680
1,835,800
767,446,725 1,153,532,974 -33.5 5,000,884.032 7,036,753,305 -28.9 175,243,481 251,697,911 -30.4 333,509,224 358,503,260
Total(23 cities)-.-.
8.771,381,225 -38.2 11130 530,800 14276 125,061
Grand total(173 cities) 21,948,930,796 39,246,521.381 -44.1 137,874,202,119 228,903,211,928 -39.8 5,420,763,910
-29.0 3,801,473,951 4,324,216,185
0uts,cle New York_._ 8,047,063,895 13,186,310.259 -39.0 51.751,940,129 78,826,465,008 -34.3 1,972,787,714 2,779.909,726
•
CANADIAN CLEARINGS FOR JUNE, SINCE JANUARY 1, AND FOR WEEK ENDING JUNE 30.
1932.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
New Westminster
Medicine Hat
Peterborough
Sherbrooke_
Kitchener
Windsor
Prince Albert
Moncton
Kingston
Chatham
Sarnia
Sudbury
8
337,852,928
325,662.664
167,540,853
51,336,697
21,460,970
18,621,981
9,945,675
17,341,119
23,472,955
7,043,305
5,847,245
12,596,359
18,365,996
13,096,757
1.467,965
1,344,743
6,187,888
2,299,311
3,643,253
2,490,185
1,971,026
785,853
2,559,795
2,429,010
4,555,528
10,482,003
1.180,811
3,249,911
2,827,592
1,768,591
1,872,488
2,246.966
1931.
Week Ended June 30.
Sts Months Ended June 30.
Month of June.
Clearings at
Inc. or
Dec.
$
490,767,480 --31.2
440,613,678 --26.1
169,027,460 -0.9
71,170,248 -27.9
29,015,823 -26.0
22,230,988 -16.2
13,791,482 -27.9
22,940,981 -24.4
28,019,433 -16.2
9,341,243 -24.6
8,041,398 -27.3
13,299,045 -5.3
20.700,517 -20.9
14,118,177 -7.2
1.766,157 -16.9
1,798,368 -25.2
7,278,167 -15.0
3,143,599 -26.9
4,392,357 -17.1
3,009,714 -17.3
2,734,209 -27.9
1,050,592 -25.9
3,257,921 -21.4
3,376,420 -28.1
4,866,966 -6.4
13,543,498 -22.6
1,598,899 -26.1
3,822.398 -30.0
3.101,729 -15.3
2,139,202 -17.3
2,420,861 -22.7
3,768,530 -40.4
1932.
1,974,484,362
1,992,827,663
856,721.136
319,517,924
125,548,851
106,636.337
60.304,545
98,961,803
124,948,032
44,946,845
36.351,843
66,806,438
98,979,698
82.718.196
8.337,801
7,979,925
35,108,424
14,253.073
20,099.256
14,026,589
11,951,928
4,451,460
14,916,348
14,734,008
22,302,660
60,624,150
7,545,347
18,969,192
14,037,841
11,425,957
10,239,828
12,472,557
1931.
Inc.or
Dec.
3,152,807,848 -37.4
2,836,829,554- 29.8
937,165,822 -8.6
404,820,300 -21.1
163,139,322 -23.0
140,130.811 -23.9
77,346,490 -22.0
128,415,438 -22.9
186,902,738 -25.1
59,657,523 -24.7
48,642,412 -25.1
74,834,971 -10.7
114,454,937 -13.5
84,708.904 -2.4
10,157,873 -17.9
10,158,736 -21.4
43,659,750 -19.6
20,357,278 -30.0
25,416,664 -20.9
16,729,291 -16.2
15,673,875 -23.7
5,730,398 -22.3
19,047,243 -21.7
19,228,962 -23.4
28,177,559
82,227,583 -26.3
10.299,728 -26.7
19,398,529 -2.2
16,950.145 -17.2
14,336,952 -20.3
13,787,377 -25.7
19,020,368 -34.4
1932.
1931.
Inc.or
Dec.
82,556,980 105,008,206 -21.4
88,953,483 -21.4
69,885.162
33,036,113 -3.3
31,944,139
15,491,177 -26.7
11,347,855
5,342,058 -7.3
4,923,280
5,188.199 -20.5
4,125,365
2,528,359 -21.1
1,994,060
4.760,259 -29.7
3,344,783
5,148,313 -11.5
4,555,500
1,688,769
1,563,671
1,149.741
1,691,717 -32.0
2,850,741 -20.7
2,260,808
3,093,841
4,216,700 -26.6
3,002,837
2,817,718 +14.7
299,765
350,399 -14.5
289,938
371,667 -22.0
1,231,436
1,402,342 -12.2
516,885
368,707 +40.2
884,029 -23.3
877,670
488.969
560,538 -12.8
617,827 -31.9
420,752
236.435 -37.7
147,381
531,839
549,266
805,844 -39.1
490,660
830,460 +0.6
835,068
2,458,112 -9.8
2,217,011
215,172
352,803 -39.0
813,801 +6.2
864,441
727,693 -18.2
595,579
523,768 -19.5
421,415
423,861 -19.9
339,552
678,300 -19.3
547,172
-
1930.
1929.
$
S.
170,874,346 208,038,403
104,141,679 145,690,903 .
59,110,731
81.016,266
19,164,644
22,196,747
6,858,944
8,059,186
8,919,718
9,051,688
3,4.5,041
4,819,838
6,476,226
7,240,367
7,973,348
10,585,955
2,263,882
3,117,314
2,629,042
3,503,085
3,685,684
3,890,347
6,276.375
6,920,340
4,502,699
7,139,032
465,819
700,275
549,602
662.734
1,922,392
2,482,455
1,272,870
1,653,266
1,205,674
1,583,832
797,652
1,055,999
918,578
1,090,649
408,251
621,860
930,535
1,111,574
871,434
1,042,287
1,173,641
1,278,619
4,823,335
5,146,712
473,444
526,925
1,033,575
1,060,087
1,246,199
1,167,601
635,016
838,828
685.188
541,984
1,460,663
-28.3
236,878,725 291,794.665 -18.8 426,966,222 543,834.618
Total (32 cities) _ _ _ _ 1,081,348,423 1.420,157,538 -23.9 6,293,210.077 8.780.093,381
present. c Clearing house reopened In February. d Figures smaller due to merger of two
at
functioning
Clearing
not
house
b
clearings.
weekly
reports
longer
No
a
between fewer Institutions.
largest banks. e Due to merger of three leading banks, this figure represents the exchange of checks
Volume 135
THE ENGLISH GOLD AND SILVER MARKETS.
We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of
June 22 1932:
GOLD.
The Bank of England gold reserve against notes amounted to £134.479,710
on the 15th inst.. as compared with £131,720,738 on the previous Wednesday.
Purchases of bar gold announced by the Bank of England during the
week amounted to £1,241,502.
Supplies of gold available in the open market have been fairly substantial and included about E90,000 of Rhodesian gold disposed of yesterday,
but the source of most of the offerings has not been revealed. The amounts
offered were taken for the Continent and owing to appreciation of the
gold exchanges, prices showed a considerable advance.
Quotations during the week:
Equivalent Value.
Per Fine
Ounce.
of E Sterling.
June 16
1128. 10d.
15s. 0.7d.
June 17
113s. Id.
15s. 0.3d.
June 18
1138. 11d.
145. 11.0d.
June 20
114s. Od.
14s. 10.8d.
June 21
1148. 5d.
14s. 10.2d.
June 22
114s. Od.
145. 10.86.
Average
1135. 8.56.
14s. 11.3d.
The following were the United Kingdom Imports and exports of gold
registered from mid-day on the 13th Inst. to mid-day on the 20th inst.
Imports.
Exports.
British South Africa
£1,289,735 Netherlands
£856,000
British India
871,435 France286,355
United States of America.. 923.301 Switzerland
47,704
Straits Settlements and
Czechoslovakia
29,250
Dependencies
34.706 Austria
9,450
Kenya
12,669 Other countries
7,629
Iraq
12,360
Germany
11.370
Other countries
2.406
£3,157,982
£1,236,388
The SS. Ranch' and the SS. President van Buren, which left Bombay
last week, carry gold to the value of £752,000 and £14,000 consigned to
London and New York respectively.
SILVER.
Prices have again shown very little movement, but have been inclined
to harden in sympathy with the appreciation of the dollar in terms of
sterling, and this on occasion, brought some demand from America in the
afternoon. Otherwise the market has continued rather inactive, selling
by the Continent and buying by China perhaps being the chief features,
with a few operations both ways by the Indian Bazaars.
On the whole, buyers and sellers are apathetic and prices seem to have
settled for the time being into rather a narrow groove pending the inteit
vention of some new factor of importance sufficient to indicate a more
definite tendency.
The following were the United Kingdom imports and exports of silver
registered from mid-day on the 13th inst. to mid-day on the 20th inst.,
Imports.
Exports.
Japan
£21,427 Hong Kong
£119,534
British West Africa
15,874 British India
10.000
Belgium
5,135 French Possessions in India
4,000
Canada
4,976 Straits Settlements
4,232
British India
2,506 Other countries
5,908
Other countries
630
£50,548
£143,674
Quotations during the week,
IN LONDON.
IN NEW YORK.
Bar Silver per Oz. Standard.
Cash.
2 Mos.
(Cents per Ounce. .999 Fine)
June 16
1613-166. 16Hd.
June 17
16 15-166. 17d.
June 15
27
June 18
176.
171-166. June 16
27
June 20
1615-16d. 17d.
June 17
27
June 21
17d.
17 1-166. June 18
27
June 22
1615-16d. 1615-16d. June 20
278
Average
16.937d.
16.9828. June 21
27
The highest rate of exchange on New York recorded during the period
from the 16th inst. to the 22d inst. was $3.67 and the lowest $3.595i.yol
INDIAN CURRENCY RETURNS.
(In Lace of Rupees)June 15. June 7. May 31.
Notes in circulation
16921
16828
16847
Silver coin and bullion in India
11117
11029
11050
Gold coin and bullion in India
1078
1071
1071
Securities (Indian Government)
4726
4728
4726
The stocks in Shanghai on the 18th inst. consisted of about 77,000.000
ounces in sycee, 232,500,000 dollars and 4,780 silver bars, as compared
with about 73,800,000 ounces in sycee, 230.000,000 dollars and 5,040
silver bars on the 11th Inst.
ENGLISH FINANCIAL MARKET-PER CABLE. gr
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as follows the past week "
Mon..
Tues..
Wed..
Thurs..
Frt.,
July 2.
July 4.
July 6.
July 6.
July 7.
July 8.
Silver, per oz_. ---16346.
16540.
16 9-166. 163i6.
16540.,
Gold, p.fine'os. ____
115e. 10d. 1168. 5d. 1165.
1159. 8d. 1155. 8d.
70
Consols,2Si%. 7034
70
70
71
7254
British 551 __.
101
101
101
10154
102
British 41-4%-1021-4
10234
1021-4
French Rentes
(in Paris)77.20
3% ----R.
77.60
76.70
77.60
French War L'n
(in Paris)99.70
99.90
99.40
99.00
The price of silver in New York on the same days has been:
Silver in N.Y ,
2654c.
26)4c.
2834o.
per os
261-Ic.
2634c.
PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
as received by cable each day of the past week have been
as follows:
July 2 July 4 July 5 July 6 July 7 July 8
1932. 1932. 1932. 1932. 1932. 1932.
Francs. Francs. Francs. Francs. Francs. Francs.
11,300 11,200 10,900 10,900
Bank of France
1,540 1,570 1,540 1,550
Banque de Parts et Pays Bag
460
Banque de Union Parisienne
450
455
Canadian Pacific
259
255
254
259
14,250 14,210 13.875
Canal de Sues
---2,250 2.250 2,195
_
Cie Distr d'Electricitie
2,240 2,240 2,180 2,220
Cie General d'Electricitie
415
415
382
Citroen B
1,240 1,230 1,180 1,220
oomptoir Nationale d'Esoompte
251
Financial Chronicle
July 2 July 4 July 5
1932. 1932. 1932.
Francs. Francs. Francs.
Cots,Inc
210
365
Courrieres
Credit Commerciale de France
670
4,300
Credit Fonder de France
Credit Lyonnais
1,960
Distribution d'Electricitle Is Par
2,270
Eaux Lyonnais
2,340
Enercie Electricitie du Nord
619
Energle Electricitie du Littoral
1,040
French Line
84
Gales Lafayette
85
Gas Le Bon
780
Kuhlmann
480
L'Air Liquids
RollHolt870
Lyon (P. L. M.)
day
1,025
day
Mines de Courrieres
380
Mines des Lena
490
Nord RY
1,580
Paris, France
1,090
Pathe Capital
130
1,360
Peehiney
Rental 3%
77.20
Routes 5% 1920
120.20
Rentes 4% 1917
92.40
Reines 5% 1915
99.70
Reines 6% 1920
100.70
Royal Dutch
1,360
Saint Cobin C.& 0
1,860
Schneider & Cie
1,190
Societe Andre Citroen
390
Societe General Folic:fere
222
Societe Francaise Ford
108
Societe Marseillaise
600
Suez
14,500
Tubize Artificial Bilk. prof
200
Union d'Electricitie
880
Union des Mines
200
Wagon-Lila
72
July 6
1932.
Francs.
220
367
672
4,260
1,980
2,250
2,34.0
609
1,042
92
87
780
480
860
1.025
370
490
1,500
1,090
133
1,380
77.60
120.10
92.90
99.90
100.70
1,360
1,860
1,195
410
222
115
605
14,200
201
870
200
74
July 7
1932.
Francs.
220
360
650
4,140
1,940
2,190
2,300
618
1,030
85
88
770
470
850
1,015
360
470
1,540
1,090
130
1,330
76.70
119.70
92.40
99.40
100.60
1,390
1,830
1,165
380
223
115
605
13.900
195
850
200
72
July 8
1932.
Francs.
210
-4:1e0
1,950
2,210
2,330
-_ii
86
780
480
850
"iie
470
1,510
1,090
1..8
- -70
77.60
119.60
93.10
99.00
100.50
1,360
_ioa
.
224
108
13;566
"iiii
200
----
THE BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange resumed trading on Friday,
April 29 1932 after having been closed by Government decree
since Sept. 18. Prices suffered heavy declines. Closing
prices of representative stocks as received by cable each day
of the past week have been as follows:
July July -My
7.
5.
6.
Per Cent of Par
Relchsbank (12%)*
130 129
131
Berliner Handela-Gesellschaft (4%)'
88
88
88
Commerz-und-Privat Bank A.G.(0%)•-...
16
16
16
Deutsche Bank und Disconto-Ges. (0%)•-..
30
30
30
Dresdner Bank (0%)•
18
18
18
Allgemeine Elektrizitaets Oce3.(AEG)(0%)•
25
25
25
Gesfuerel (4%)•
59
59
59
Siemens & Halske (9%)•
Holl- Holt- 123 123 121
1.0. Farbenindustrie (7)•
day day 92
93
93
Salsdethfurt (15%)•
170 168 164
Rheinische Braunkohle (10%)•
177 173 175
Deutsche Erdoel (5%)•
70
69
68
Mannesmann Roehren(6%)•
41
41
41
Hapag (0%)•
13
13
12
North German Lloyd (0%)•
14.
14
13
July
2.
July
4.
July
8.
128
88
16
30
18
24
58
120
91
163
170
86
39
12
13
• Last dividend.
In the following we also give New York quotations for
German and other foreign unlisted dollar bonds as of July 8:
Ask.
Btd.
Anhalt 7s to 1946
27
23
Argentine 5%, 1945, 3100-pieces
54
59
Autioquia 8%. 1945
18
13
Bank of Colombia 7%. 1947
22
24
Bank of Colombia 7%, 1948
22
24
Bavaria 6 Hs to 1945
32
29
Bavarian Palatinate Cons. Cit. 7% to 1945
21
24
Bogota (Colombia) 634%. 1947
110
Bolivia 6%, 1940
Brandenburg Electric 6%. 1953
373-4
aSi
Brazil Funding 5%,1931-1951
32
27
British Hungarian 13k. 734s. 1952
30
3114
Brown Coal Ind. Corp. 6)0.1953
29
21
Call (Colombia) 7%. 1947
/531
Callao (Peru) 734%, 1944
/5
Ceara (Brazil) 8% 1947
1254
---Central German Po: of Msdeburg 6% 1934
40
35
City Savings Bank Budapest 7s. 1953
26
2734
Dortmund Municipal t,t II. t3)1%. 1948
21
24
Duisberg 7%.10 1945
21
24
Dusseldorf 7s to 1945
21
24
East Prussian Po,wer 6%, 1953
3734
39
European Mortgage & Investment 710,1966
34
3534
French Government 534s, 1937
105
100
French National Mall S. S. Line 6%, 1952
101
102
Frankfurt 75 to 1945
23
27
German Atlantic Cable 7%, 1945
40
45
German Building & Landbank 634%. 1948
31
35
Hamburg-American Line 614s to 1940
31
Hanover Harz Water Works 6%. 1917
i5ii
18
Housing & Realty Imp. 7s, 1946
42
45
Hungarian Central Mutual 7s. 1937
3134
30
Hungarian Discount & Exchange Bank 75. 1963
21
20
Hungarian Italian Bank 7)4%, 1932
7044
6834
Koholyt 634s, 1943
35
32
Land Mortgage Bank, Warsaw 8%. 1941
53
50
Leipzig Overland Power 81.4%. 1948
4034
4334
Leipzig Trade Fair 7s, 1953
29
26
Luneberg Power Light de Water 7%, 1948
25
21
Mannheim & Palatinate 75. 1941
40
37
Munich 713 to 1945
33
31
Municipal Bank Hessen 7% to 1945
21
24
Municipal Gas & Elec. Corp. Recklinghausen. 7a, 1947
28
24
Nassau Landbank 6 H%, 1938
41
45
National Central Savings Bank of Hungary 734s, 1962
31
2934
Natl. Hungarian & Ind. Mtge. 7%, 1948
2934
28
Oberpfalz Electric 7%, 1946
32
35
Oldenburg-Free State 7% to 1945
21
24
Pomerania Electric 6%. 1953
33
31
Porto Alegre 7%, 1968
s
16
Protestant Church (Germany) 7s, 1946
2734
2534
Provincial Bank of 'Westphalia 6%, 1933
37
39
Rhine westphsiia Electric 7%,1936
42
47
Roman Catholic Church 6)4%, 1946
4034
4234
Roman Catholic Church Welfare 7%. 1846
2834
3034
Saarbruecken Mortgage Bank 6a. 190
63
60
Salvador 7%. 1957
8
634
Santa Catharine (Brazil) 8%. 1947
834
Santander (Colombia) 7%, 1948
10
11
Sao Paulo (Brasil) 6%, 1947
9
1754
Saxon State Mortgage 6%. 1947
33
Siemens & Halske debentures 8%.2930
240
285
South American Railways 6%, 1933
1434
13
Stettin Public Utilities 7%,1946
35
32
Tucuman City 7s. 1951
17
14
Vamma Water 53-4%, 19.57
61
55
Veeten Electric Railway 7%, 1947
22
19
Wurtemberg 75 to 1945
35
31
f Flat pr.ce.
f"
Financial Chronicle
252
Foreign
Trade of New York-Monthly Statement.
Customs Receipts
at
New York.
Merchandise Movement at New York.
Imports.
Month.
1931.
1930.
Exports.
I
1931.
1931.
1930.
1930.
84.823.090 99,990,234 67.058,129 98.069.398 17.237.635 15,617,549
81,423,455 99.085,2871 59.208,716 97,722,024 20.162,713 16,700.854
94.872,046 110,496,855, 67,749,087 92,321,673 21,683,259 20,672,440
92,059,201 124,376,643, 65,352.268 95,822,991 18,506,473 22.811,155
86.585,105 102.937,4711 51.967.285 93,543.704 15.161,993 19,861.973
87,837,295 99,742,695 55,939.911 95.875,509 15,902,204 15,596,668
1931
1932.
1932.
1931.
1931. I 1932.
January _ 65.450,212 87,278,8071 44,388,825 94,604,323 13,177.186 15.764.232
February - 68,324,224 83,741,723 47,040,6351 91,336,302 12,756,949 15,741,196
March_ _ 67.088 157 101 718 7971 48,261,354 85,927,653 12,047,238 17,612,788
April
61.785,558i 90,924,314 42,176,624 80,714,213 10,741,892 14,702.264
1
157,377,5221175,081,119
Total__ 790,248,343 1000292826 549.142,8341925.937,790
July
August_.September
October
November.
December..
Movement of gold and silver for ten months:
I
Gold Movement at New York.
Month.
1930.
1931.
Total
1931.
1930.
Silver-New York.
I
Imports.
I
1931.
Exports.
1931.
525,184
13,156,577, 1,000,328 30,001.977;
4,592,811
32,50 35,314,272 1,590,557
639.872
5,263,713 28,690,327 3,974,842
791,382
17,825.288 398.471,056
30.000:
841.678
1,200
21,480.117 4.935.286
2,013.826
11,317,784 32,622.524
1932.
1932.
1931.
1931.
919,079
9,404,455 107,842,041
829,844
11.309.143128.185.769
20,320,531 43,902.866
2,000 1,116,271
1,229,933
1,321,509
1,234,391
1,282.981
1,181.579
697,934
1.741.027
1932.
572,257
494,562
700,483
715,007
153,635.278 150,883,958705,163,673 69,324,291 10,497,626
9,941,730
10,926,608
25,844,790
35,034,945
25,656,339
6,840,308
13,248,219
1932.
January _ 19,067.937
February _ 7,221.315
March_
6.630,355
April
July
Allgll9t- - September
October
November.
December_
Exports.
Imports.
CURRENT
NOTICES.
-Guaranteed railroad stocks have continued as dividend payers, even
in spite of bankruptcies or receiverships of leasing and guaranteeing roads,
It Is pointed out in a review and discussion of these securities by Joseph
Walker & Sons, New York. Among the reasons given for this are:
They are stocks of railroad companies which own, but do not operate
railroads the specified rental is either a direct guarantee of a definite
dividend, or a guarantee to the lessor of the payment of a sum sufficient
to pay a stated rate of dividend the leased property, ownership of which
is represented by the guaranteed stock, either forms such a vital part of
the guarantor's system that its continued possession under the lease is
an absolute necessity to the operation of the guarantor (lessee), or the
property contributes such valuable traffic and earnings to the guarantor
that it is essential to the fullest possible maintenance of the guarantor's
earnings, and finally, any default on the part of the lessee in the payment
of dividends, or in anything else required by the lease, permits the repossession of the leased property by the owners and the consequent disintegration of the lessee's system.
-Important additions to the European facilities of Fenner, Beane &
Ungerleider, members of the New York Stock Exchange, which will connect
their various offices in the United States with the principal securityand
commodity markets abroad, has been announced. The present extension'
of the foreign facilities embraces a new Paris office, and two new office
centrally located in the financial district of London. A coded cable service
of great speed and accuracy between New York and the foreign offices
makes it possible to maintain much the same brokerage service in stocks
and commodities for the European clientele that is maintained in the
United States.
-Organization of a new Investment firm to be known as Harker Sc
Hamlin, Inc., with offices in the Bankers Building, Chicago, has been announced by Herbert L. Harker and C. Eldredge Hamlin. former vicepresidents of P. W.Chapman & Co., Inc. The firm will conduct a general
investment business and will open formally July 6. Mr. Harker was with
the municipal bonds department of Harris Trust & Savings Bank from 1905
to 1915, when he joined P. W. Chapman & Co. as a Vice-President. Mr.
Hamlin was associated with P. W.Chapman & Co.for nine years as manager
of their Chicago office.
-Edward C. George has become associated with the Organization of
Lawrence Stern & Co., Chicago and New York investment bankers. Mr.
George was formerly associated, for many years, with Lee, Higginson
& Co.. where he was Western Syndicate Manager for that firm.
-Craigmyle, Marache & Co., Inc. of this city announce that Alexander
Pinney,formerly with Lee, Higginson & Co., is now associated:with them.
July 9 1932
50,000
June 29-The Cohasset National Bank, Cohasset, Mass
Effective June 20 1932. Liq. Agent, John J. Cahill,
care of the liquidating bank. Absorbed by The Rockland Trust Co., Rockland, Mass.
July 2-The Atlantic National Bank of Boston, Mass
8,950,000
Effective June 25 1932. Liq. Agent, Waldron H.
Rand Jr., care of the liquidating bank. Absorbed by
The First National Bank of Boston, Charter No. 200.
The liquidating bank has twelve branches.
July 2-The First National Bank of Texas City, Tex
25,000
Effective June 27 1932. Liq. Agent, E. L. Noble.
care of Texas City National Bank, Texas City, Tex.
Absorbed by The Texas City National Bank, Texas
City, Tex., No. 10040.
CONSOLIDATIONS.
June 28-The First National Bank of Radford, Va
$100,000
June 28-The Farmers & Merchants National Bank of Radford, Va
60,000
Consolidated to-day under the Act of Nov. 7 1918, as
amended Feb. 25 1927. under the charter of The First
National Bank of Radford, No. 6782, and under the
corporate title of "The First & Merchants National
Bank of Radford," with capital stock of $128,000
and surplus of $25,000.
June 30-The Grayson County National Bank of Independence. Va
35.000
The First National Bank of Troutdale. Va
25,000
Consolidated to-day under the Act of Nov. 7 1918, as
amended Feb. 25 1927, under the charter and corporate title of "The Grayson County National Bank of
Independence," No. 10834, with capital stock of$50,000
and surplus of $15,000.
June 30-The First National Bank of Northfork, W.Va
100,000
The Clark National Bank, Clark, W. Va
50,000
Consolidated to-day under the Act of Nov. 7 1918, as
amended Feb. 25 1927, under the charter of The First
National Bank of Northfork. No. 8309, and under the
corporate title of "The First Clark National Bank of
Northfork," with capital stock of $100,000 and surplus
of $50,000.
June 30-The Anglo & London Paris National Bank of San
Francisco, Calif
$10,000,000
Anglo-California Trust Co., San Francisco, Calif-1,500,000
Consolidated to-day under the Act of Nov. 7 1918. as
amended Feb. 25 1927, under the charter of The
Anglo & London Paris National Bank of San Francisco, No. 9174. and under the corporate title of "The
Anglo California National Bank of San Francisco,"
with capital stock of $10,400,000 and surplus of $2,600,000. The consolidated bank has seven branches,all
located in the City of San Francisco, which were
branches of Anglo-California Trust Co. and which
were in lawful operation on Feb. 25 1927.
BRANCHES AUTHORIZED UNDER ACT OF FEB. 25 1927.
June 30-Pacific National Bank of San Francisco, Calif. Location of
branch, 26 O'Farrell St., San Francisco, Calif.
June 30-The Anglo California National Bank of San Fransco, Calif.
Location of branches, 532 Market St., San Francisco, Calif..
and Montgomery and Sacramento Sts., San Francisco, Calif.
Auction Sales.-Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week.
By Adrian H. Muller & Son, New York:
Shares. Stocks.
$ per Sh.
132 Amer. Insurance Co., Newark,
N.J., par $2.50
434
30 Brooklyn Trust Co., par $10(1 - A08
75 Burns Brothers, class A common. no par
$21 lot
50 HomesteadFre Ins. Co., par 810_ 4
36 Huron Holding Corp.(Continental Bank 61 Trust Co. of N. Y.,
depositary) Ott
$9 lot
10 Irving Trust Co., par $10
1414
36 Manufacturers Trust Co.,
par $20
1714
55 Maryland Casualty Co., par $2. 234
52 National Title Guaranty Co.,
par $100
534
10 National Union Fire Ins. Co.,
Pittsburgh, Pa., par $50
1034
25 National Surety Co. of N. Y.,
par $50
4%
220 New York Investors, Inc., common, no par
45c.
50 New York Title dr Mtge. Co.,
par $10
5%
Shares. Stocks.
$ Per Sh.
10 Omnibus Corp. 8% cum. pref.,
series A cony., par $100
5135
20 Title Guaranty & Trust Co.,
par $20
2434
10 Westchester Fire Insurance Co.,
par $10
a
1,343 Inde Gold Mining Co., par
$100
$11 lot
200 Pinelawn Cemetery Land Purchase Fund
1%
22 Rondack Garage Corp
$100 lot
245 Finndale Realty Co.,Inc., common, no par; 245 Finndale Realty
Co., Inc., pref., par $100; 250
Dobbston Realty Corp., corn.,
no par; 250 Dobbston Realty
Corp., pref., par $100;695 Ferryton Realty Corp., cora., no par;
695 Ferryton Realty Corp., pref.,
par $100; 147 Hagdahl Realty Co.,
Inc., no par
$75 lot
80 Clark & Co.(N. .),parJ
$100-.150 lot
By R. L. Day & Co., Boston:
per Sh.
Shares. Stocks.
50 First Nat. Bank, Boston, par $20 1934
25 National Shawmut Bank, Boston, par $25
163i
56 Webster & Atlas National Bank,
Boston, par 5100
40
9 Pepperell Mfg. Co., par MOIL - 15
220 Arlington Mills, par $100
7
10 Suburban Electric Securities
2d pref
234
Shares. Stocks.
$ per Sh'
50 Massachusetts Bonding & Insurance Co., par $25
10
3 Massachusetts Bonding & Insurance Co., par $25
10
100 Venezuela Mexican 011 Corp.,
par $10
$10 lot
Bonds$1,000 Harbor Building 1st mtge.
s. f. 65. July 1937
10% flat
By Barnes & Lofland, Philadelphia:
Commercialand Wisceilautonsnews
National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
CHARTERS ISSUED.
Capital.
June 27-First National Bank in Loup City, Loup City, Neb__-- $25,000
President, A. B. Outhouse; Cashier, C. H. Ryan.
June 28-The Peoples National Bank of Parkersburg, Parkersburg, W. Va
340,000
President, H. J. Lockhart; Cashier, J. G. Williams.
400,000
June 28-The National Bank of Bay City. Bay City, Mich
President, Michael W.Carroll; Cashier, John Hoffman.
Tex.-- 50,000
June 29-The First National Bank in Decatur, Decatur,
President, W. T. Waggoner; Cashier, E. P. Gibson.
CHANGE OF TITLE.
June 30-The First National Bank & Trust Co. of Merchantville, N. J.,
to "Merchantville National Bank & Trust Co."
VOLUNTARY LIQUIDATIONS.
$50,000
June 27-The Woodstock National Bank, Woodstock, Ill
Effective June 21 1932. Lig,Committee: D. R. Joslyn Jr.. W. R. Conley and Wm. Zimmerman, care of
the liquidating bank. Absorbed by The American
National Bank of Woodstock. No. 6811.
50,000
June 29-Portland National Bank, Portland, Pa
Effective June 23 1932. Liq. Agent, Willard Hartzell,
care of the liquidating bank. Succeeded by The Portland National Bank, Portland, Pa., No. 13606.
Shares. Stocks.
per Sh.
5 First National Bank of Phila.,
193
par $100
43
27 Phila. Nat. Bank, par 520
23 Corn Exchange Nat. Bank dr
3334
Trust Co., par $20
Penna. Co. for Ins. on Lives Sc
Granting Annuities, par $1041 at 28, 60 at 2735
Shares. Stocks
$ per Sh.
30 Citizens National Bank Sc Trust
Co., Lehighton, Pa., par $25_ ...- 35
20 Irving Trtuit Co., New York_ _ _ 1434
BondsPer Cent.
$1.000 Temple University 6% 1st
mtge. ref., Jan. Sc July, due
1942
85
By A. J. Wright & Co., Buffalo:
Shares. Stocks.
10 Angel International Corp
$ per Sh. Shares. Stocks.
150 500 A dargas Mines
per Sh.
50o. lot
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Per
Name of Company.
Railroads (Steam).
Boston Sc Providence RR.Co.(quar.)--.Co.Clev., Ctn., Chi. Sc St. Louis Ey.
Common (8.-a.)
Preferred (guar.)
East Penn RR.,6% guar.(8.-a.)
Cent.
When
Payable.
Books Closed.
Days Inclusive.
.235 Oct. 1 *Holders of rec. Sept. 20
July 30 *Holders of rev. July 21
*5
*134 July 30 *Holders of rec. July 21
'135 July 19 *Holders of rec. July 9
Volume 135
Name of Company.
Railroads (Steam) (Concluded).
Michigan Central RR.(8.-a.)
_Northern RR.(N. H.),(quer.)
Philadelphia & Trenton RR.(quar.)
Portland RR.(Me.)(0.-a.)
Financial Chronicle
Per
When
Cent. Payable.
*25c
.1y4
2%
'234
Books Closed.
Days Inclusive.
July 30 *Holders of rec. July 21
July 30 *Holders of rec. July 6
July 10 Holders of rec. July 1
Aug:' 1 *Holders of rec. July 16
Public Utilities.
Atlantic City Electric, pref. (guar.)
- '$1 34 Aug. 1 *Holders of rec. July 7
Bangor Hydro-Electric Co., com.
*50c. Aug. 1 *Holders of rec. July 10
Brazilian Traction, Light & Power
e2
Sept. 1 Holders of rec. July 30
Brockton Gas Lt.& Coke (guar.)
*50c. July 15 *Holders of rec. July 1
Cables & Wireless, Ltd., 534% pref.
x23/ Aug. 22 Holders of rec. July 14
Amer. dep. rec. 535% preferred
x23/ Aug. 2/ Holders of rec. July 14
Canadian Public Service Corp., Ltd.sui July I *Holders of
634% preferred (guar.)
rec. June 20
Canadian Western Nat. Gas, Light. Heat
& Power Co., Ltd. (guar.)
*21
July 15 *Holders of rec. July 14
Central Power & Light Co.(Mass.), 7%
preferred (guar.)
*1% Aug. 1 *Holders of rec. July 15
6% preferred (guar.)
*1% Aug. 1 *Holders of rec. July 15
Commonwealth Edison Co.(guar.)
13/ Aug. 1 Holders of rec. July 15
Concord Electric, common (guar.)
*AM. July 15 *Holders of rec. July 1
Preferred ((IWO
*$135 July 15 *Holders of rec. July 1
Edison Elec. Ilium. Co.(Boston) (qu.). 83
Aug. 1 Holders of rec. July 11
Electric Power Co. of N. F.
Amer. dep. rec. A bearer eh
27.67fr July 7
English Electric Co.,of Canada, Ltd., cla as A-DIvIden dHolders of rec. June 29
Fitchburg Gas & Electrict Light (qu.)- - *690. July 15 omitted.
"Holders of rec. July 1
Harrisburg Gas Co., Pref. (gear-)
*El% July 15 *Holders of rec. June 30
Hartford Electric Light (guar.)
•68;10 Aug. 1 *Holders of rec. July 15
Honolulu Rapid Transit (guar.)
20c. June 30 Holders of rec. June 23
Lyons Water & Light Co. Amer. dep.
•• recta. for bearer shares_ .._(in francsj_ *38.7 July 8 *Holders of rec.
July 6
Mass. Power & Light Assn., $2 Pref.-50c. July 15 Holders of rec. July 2
Michigan Gas de Elec., 7% pref. (guar.) •1% Aug.
1 *Holders of rec. July 15
$6 participating Preferred (quar.)_ _ _ _ .213,5 Aug. 1 *Holders of rec.
July 15
86 preferred (guar.)
*2134 Aug.
*Holders of rec. July 15
Mohawk-Hudson Power, 1st pref. (qu.). •$1% Aug. 1
1
*Holders
July
rec.
of
15
Monongahela West Pena Pub. Seri,
. Co.
7% preferred (guar.)
1% Oct. 1 Holders of rec. Sept. 15
Northern N. Y. Utilities, Prof.(quar.) *21)/ Aug.
1 *Holders of roe. July 11
Phila. & Grays Ferry Pass. Ry.
75e. July 7 Holders of rec. June 30
Piedmont 4. Northern Ry. Co.(quar.) "Sl
July
11
*Holders of rec. June 30
Potomac Edison. 7% pref.
54 AUg. 1 'Holders of rec. July 20
(guar.)
6% preferred (guar.)
•135 Aug. 1 'Holders of rec. July 20
Public Service Co.of No. Ill., com.
75e. Aug. 1 Holders of rec. July 15
(q11.)
7% preferred (guar.)
154 Aug. I Holders of rec. July 15
6% Preferred (guar.)
1)4 Aug. 1 Holders of rec. July 15
Rockland Light & Power Co.(quar.)_
•200. Aug. 1 *Holders of rec. July 15
Rhode Island Pub.Ser. Co., el. A (guar.) *21
Aug. 1 *Holders of rec. July 15
rrezerrea qu
*500 Aug. 1 *Holders of rec. July 15
Shasta Water Co., class A (guar.)
•3734c July 1
Springfield Gas Light, com. (guar.).- *63c..101y 15 *Holders of rec. June 27
*Holders of rec. July 1
Taunton Gas Light (guar.)
4135 July 1 *Holders of rec. June 15
Underground Elec. RYS. CO., Interim__ •2
United Electric Co. of ParisAmer. dep. rec. "0" bearer shs-to13 9-10fr. July
7 Holders of rec. June 30
United Light & Rys. Co.(Del.)
7% Preferred (monthly)
58 1-3c Aug. 1 *Holders of rec. July 15
6.36% Preferred (monthly)
*53c. Aug. 1 *Holders of rec. July 15
0% preferred (monthly)
*50e. Aug. 1 *Holders of rec. July 15
Utica Gas & Elec., 86
4.$135 Aug. 1 *Holders of rec. July 20
Pref. (guar.)
Virginia Elec. & Power.
6% Pref.(guar.) •lh Sept. 20 *Holders of rec. Aug. 31
Trust Companies.
Corn Exchange Bank & Trust Co
Aug. 1 Holders of rec. July 22
31
Mut'l Tr.Co.(Port Chester,N.Y.)
(8.-a.) 3
July 8 Holders of rec. July 6
Fire Insurance.
Allemania Fire Ins. Co. (Pitts.)
(guar.) •25e. July 1 *Holders of roe. July 1
American Alliance Ins.(N.
Y.)(au.)
- *25e. July 15 *Holders of rec. July 8,
American Reserve Ins.-Div.
omitted.
Great American Ins.(new)(guar.)
*25e. July 15 *Holders of rec. July 8
Lincoln Fire Ins.-Div. omitted.
Manufacturers' Fire Ins. Co. (Phila.)
10c. July 15 Holders ef rec. July 1
New Brunswick Fire Ins.(N.
J.I-Dly.o mitted
Northwestern Fire & Marine Ins. (8.-a.) *50e. July 1 *Holders
of rec. June 30
Standard Fire Ins.(N.J.) (quar.)
25e. July 23 Holders of rec. July 16
U.S. M arcaaats st Salppers ias. .
Div. o milted.
Miscellaneous.
Across Canada'frust Shares
*24.25 July 2
Adams (J. D.) Mfg. Co. (quar.)-Divi dend o milted *Holders of rec. July 2
Amer. Machine & Miry. Co., com.
20e. Aug. 1 Holders of rec. July 20
(qu.)
Amer. Solvay Invest. Corp.,
pref. (qu.)_ $13/ Aug. 15 Holders of rec. July' 15
Amsterdam Trading Co., Amer.
25e. July 15 Holders of rec. July 12
shs
ASSOC. Standard 011 stocks,ser.
14.260
Atlas Powder Co., pt. (guar.) A(qu.)-•"31.34 July 15
Aug. 1 *Holders of rec. July 20
Basic Industry Shares (8.-a.)
n$625
Beneficial Indus. Loan corp.,
com.(all.) 3730 July 30 Holders of rec. July 15
Preferred series A (guar.)
5730 July 30 Holders of rec. July 15
Boots Pure Drug Co., Ltd., American
dep. rec, for ord. reg
•15c. July 8 *Holders of rec. June 15
British Amer. Tob., Am.dep.rec.reg- *13.9e
July 8 *Holders of rec. July 3
American dep. rec., bearer
*13.90 July 8 *Holders of rec. July 3
Brookintre Investors, com. (guar.)
"40e. July 15 *Holders of rec. July 1
Brown Shoe Co. pref.(guar.)
$13/ Aug. 1 Holders of rec. July 20
Bunker 11.& Sun. Min.& Cone.
Co.(qu.) *2134 July 5 *Holders of rec. June 30
Bunte Bros., com.-No dividend
action taken
Preferred (guar.)
$15/ Aug. 1 Holders of rec. July 25
Cartier Inc., 7% Pt.(guar.)
•13/ July 30 *Holders of rec. July 15
Central Illinois Security pre/
*3730
Aug. 1 *Holders of rec. July 20
(guar.).
-Century Shares Trust partic. shares-.
44c. Aug. 1 Holders of rec. July 7
Century Ribbon Mills, Inc., Pref.
8134 Sept. I Holders of rec. Aug. 20
(qu.)CInc.Postal Terminal & Realty, p1.(qu.) ell% July 15
*Holders ol rec.'July 5
Cluett, Peabody & Co., common
25c. Aug. 1 Holders of rec. July 21
(qu.)
Coates(J.& P.) Ltd. Am.dep. rec.
*50. July 8 *Holders of rec. May 20
re/Colgate-Palmolive-Peet, com.
250. July 25 Holders of rec. July 15
(guar.)
Collins Co.(guar.)
•500. July 15 *Holders of rec. June 30
Columbian Carbon Co. (guar.)
500. Aug. 1 Holders of rec. July 18
Consol. Water Pow. & Paper Co.
(qu.). *$134 June 30 *Holders of rec. June 30
Coon (W.11.)7% prof.(guar.)
•1,‘ Aug. 1 *Holders
rec. July 12
Cosmos Imperial Mills, Ltd., pref.(qu.)- •87350 Aug. 15 *Holders of rec.
of
July 30
Courtauld's Ltd., Amer. dep. rev, for
5% prat. ref
*5c. July 9 *Holders of rec. June 10
Crescent Creamery Co.,Ltd.,7%
•154 July 15 *Holders of rec. June 30
Cumulative Trust Shares
•12c. July 15
Distillers Co., Ltd., Amer. dep. reo--25c. Aug. 9 Holders of rec. July 25
Dufferin Paving & Crushed Stone, Lt d.
7% 1st pref.-Action deferred
Dutton(A.C.) Lumber.7% Pref.(guar.)
50e. June 30 Holders of rec. June 15
Eau Claire Sawmills, Ltd., pref.-DIvi dend milted
Employers Group Assoc.-Dividend om Med
Fairmont Creamery Co.(Del.) (guar.). •250. July 1 *Holders
of rec. June 20
Preferred (guar.)
•31% July 1 *Holders of rec. June 20
Faultless Rubber, COLD. (quer.)
•50e. Oct. I *Holders of rec. Sept. 15
Fenn (J.J.)& Co.,Inc.,cum.(s.-a.) -- *4,5 July 5 *Holders
of rec. July 10
Fenton United Cleaning & Dyeing, corn.-Div' dendom Med
Fiberboard Prod.. pref. (guar.)
*$134 Aug. 1 *Holders of rec. July 16
Fidelity & Deposlt Co. of Md.(guar.)._ *El
July 18 *Holders of rec. July 8
First All Canadian Trustee SharesCoupon No. 3 ordinary
30e. June 30
First National Corp.(Ore.) , el. A (qu.) •50c. July 25 *Holders
of rec. June 25
First National Corp. (Seattle) (guar.)._ *25c. July 1 *Holders
of rec. June 28
First Securities Corp.(Utah), el. A & B -Div' dends o milted
Five-Year Fixed Trust 011 Shares„-0$ 61.997 June 30
Fixed Trust Oil Shares (s.-a.)
o$ 440.68 June 30
Foundation Co. of Can., Ltd., corn. div. discos tinued.
General Cigar Co., com. (guar.)
$1
Aug. 1 Holders of rec. July 16
Preferred (guar.)
813/ Sept. 1 Holders of rec. Aug. 23
General Mills, Inc., corn. (guar.)
75c. Aug. 1 Holders of rec. July 15a
Name of Company.
253
Per
When
Cod. Payable.
Books Closed.
Days Inclusive.
M iscellsneous(Concluded).
Great Amer. Inkurance Co.(guar.)
.26e. July 15 *Holders of rec. July 8
Guardian Realty Co. of Canada, pf.(qu.) 4111i July 15 *Holders of rec. June
30
Hickok Oil, class A (a.-a.)
*50e. Sept. 15 *Holders of rec. Sept. 15
Homestake Mining Co. (monthly)
*75c. July 25 *Holders of rec. July 20
Honolulu Plantation (monthly)
*25c. July 11 *Holders of rec. June 30
Humbarstone Shoe (guar.)
*50c. Aug. 1 *Holders of rec. July
International Cigar Mach'y Co.(quar.)_ 37%c. Aug. 1 Holders of rec. July 15
20
Jefferson Realty Corp.,5% let pf.(s.-a.) '234 July 1 *Holders of rec.
June 20
2d preferred
*4
June 20 'Holders of rec.
20
Kress (S. H.) & Co., common (guar.).-- *25c. Aug. 1 *Holders of rec. June
July 20
Special Preferred (guar.)
•15c. Aug. 1 *Holders of rec. July 20
Kroger Grocery & Baking Co., com.(gr.) *25e. Sept. 1 *Holders of rec.
Aug. 10
6% preferred (guar.)
'134 Sept.30 *Holders of rec. Sept. 20
7% Preferred (quar.)
*13/ Nov. 1 *Holders of rec. Oct. 20
Lawbeck Corp., $6 prof. (guar.)
$135 Aug. 1 Holders of rec. July 20
Lazarus(F. & R.) & Co.. 634% pf.(qu.) *I% Aug. 1 *Holders of rec.
July 20
Loew's Boston Theatres Co.(quar.)..
*150 Aug. 1 *Holders of rec.
23
Marquette Cement Mfg. Co..6% Pf.(ilu) *1% July 1 *Holders of rec. July
June 30
Masbach Hardware, 1st pref. (guar.)... *$134 July 15 *Holders of rec. June
30
Mascot 011 Co. (guar.)
llic July 25 Holders of roe. June 1.5
Maytag Co., 1st pref.-No action taken
McKinney Steel Holding, pref.-DivIden C omit ted..
Aug
Melville Shoe, common (q uer.)
*30c Aug. 1 *Holders of rec. July 15
1st Preferred (guar.)
1 *Holders of rec. July 15
2d preferred (guar.)
*734c. Aug. 1 *Holders of rec. July 15
Mercantile Amer. Realty.6% Pr.(qu.)- •1
*Holders of rec. July 1
Metal Textile Corp., pref.(guar.)
81340 Sept. 1 Holders of rec. Aug. 20
Midwest 011 Co., common (guar.)
*4e. July 15 *Holders of rec. June 30
Preferred (guar.)
•fic. July 15 *Holders of rec. June 30
$10 cum. preferred (guar.)
*40c. July 15 *Holders of rec. June 30
Moloney Electric, coin. A-Dividend ac lion no t taken
Monroe Calcul. Machine, pref.(quar.) '2154 June 30
Montreal Tramways Co.(quar.)
5234 July 15 Holders of rec. July 7
National Carbon Co., Inc.,8% /IL
Aug. 1 *Holders of rec. July 20
*2
Distillers Prod. Corp., pf.(qu.)
(qu.)Nationl
61231:. July 1 Holders of rec. June 21
National Tea Co.. pref. (guar.)
Holders of rec. July 15
Aug.
N.Y. Merchandise Co., Inc.. cam.(qu.) 13540
*25c. Aug. 1 *Holders of rec. July 20
Preferred (guar.)
.8111 Aug. 1 *Holders of rec.
N.Y. Trap Rock Corp., $7 pre/.(qu.)._ *2154 July 1 *Holders of rec. July 20
June 29
National Share (Del.) class A (guar.)
•433/0 July 10 *Holders of rec. June 30
Class A extra
*63/ c. July 10 *Holders of rec. June 30
North American Trust Shares (1955)- '72-Sc July 15 *Holders of rec. June
30
1956
*7 3-5c July 15 *Holders of rec. June 30
Noxema Chemical Co. (8.-a.)
July 11 *Holders of rec. July 6
*21
Outlet Co., common (guar.)
81
Aug. 1 Holders of rec. July 20
1st preferred (guar.)
8134 Aug. 1 *Holders of rec. July 20
2d Preferred (guar.)
El% Aug. 1 Holders of rec. July 20
Penberthy Injector (guar.)
'$234 June 30 *Holders of rec. June 25
Perfection Stove Co., com.(monthly)
10c. July 31 Holders of rec. July 20
Common (monthly)
10c. Aug. 31 Holders of rec. Aug. 20
Petrolite Corp.. Ltd. (guar.)
*25e. Aug. 1 *Holders of rec. July 22
Extra
*25e. Aug. 1 *Holders of rec. July 22
Plymouth Cordage (guar.)
July 20 *Holders of rec. June 30
Queen City Petrol. Prod., 7% prof.(qu.) *SI%
*154 July 15 *Holders of rec. July 1
Raymond Concrete Pile Co., pref. (qu.)
75c. Aug. 1 Holders of rec. July 20
Reed (C. A.) Co., class A (guar.)
*50c. Aug. 1 *Holders of rec. July 21
Republic Service, prof.(guar.)
•3135 Aug. 1 *Holders of rec. July 15
Rochester Amer. Ins. of N.Y.(guar.)._
*Holders of rec. July 8
Rockwood de CO., 8% Pref.-Dividend c muted
55Jly 15
RussellMotor Car Co., Ltd.,com.(qu.)
*25e. Aug. 1 *Holders of rec. July 15
Salt Creek Producers Assn., Inc.(guar.) 234 Aug. 1 Holders
of rec. July 150
San Carlos Milling (monthly)
*20c. July 15 *Holders of rec. July 7
Santa Gertruells Co., Ltd., ord. dividend -Actl on defer red
Second Standard Royalties, Ltd.,12%pt.
*lc. Aug. 1 *Holders of rec. July 15
Service Stations, Ltd.. cum. con. pf. stk. -Actl on deferred
Cum. cony. pref. ser. A-Action defer red
Shell Transport & TradingAmerican shares
•530. July 22 *Holders of rec. July 15
Solvay American by.. pref. (quar.)
Mil% Aug. 15 *Holders of rec. July 15
Stool Co. of Canada, Ltd., prof
14354e Aug. 1 Holders of rec. July 7
Suburban Elec. Secur. Co., 1st pf. (au.) •3135 Aug. 1 *Holders of rec. July 15
Tonic-Hughes Gold Mines, Ltd
115e. Aug. 1 Holders of rec. July 15
Tide Water Oil, prof. (guar.)
41 34 Aug. 15 *Holders of rec. Aug. 1
Trustee Standard Inv. Shares, sexes C
103-Sc Aug. 1
Series D
102-50 Aug. 1
United Linen Supply, class B (guar.). __ itt*e5d0c. July 20 *Holders of rec.
July 1
U.S. Merch.& Ship. Ins.-Dividend
Universal Trust Shares
• .2118e July 15 *Holders of rec. June 30
Upson Co., pref. (guar.)
*$134 July 1 *Holders of rec. June 28
Weedon & Co.-Dividend omitted
Williams (R. C.) Co.-Action deferred
Western Assurance Co.-Dividend omit led
Western Pipe & Steel, 7% prof.(5.-a.)35c July 15 Holders of rec. June 30
Woolson Spice Co. (guar.)
*25e. June 30 *Holders of rec. June 28
Preferred (guar.)
*31 34 tune 30 *Holders of rec. June 28
Worthington Ball Co., class B
*25c July 15 *Holders of rec. June 30
York Share Corp
*30c. July 15 *Holders of rec. June 30
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week, these being given in the preceding table.
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Railroads (Steam).
Alabama Great Southern, pref. (s. a.)._
3
Aug. 15 Holders of rec. July 9
Atchison. Topeka & Santa Fe Ry. Co.
Preferred (s.-a.)
234 Aug. 1 Holders of rec. June 30a
Augusta & Savannah RR.(semi-annual) '234 Jan5'33
Nitta
•25o. Jan5 *23 .
Boston RR. Holding, pref. (5.-a.)----- *2
July 11 *Holders of rec. June 30
Canada Southern Ry. Co.(8.-a.)
135 Aug. 1 Holders of rec. July 1
Carolina Clinchtleld & Ohio Hy
July 11 Holders of rec. June 30
1
Certificates (guar.)
134 July 11 Holders of rec. June 30
Connecticut & Passumps1c, pf. (s.-a.)-. 3
Aug. 1 Holders of rec. July la
Detroit River Tunnel (8.-a.)
*4
July 15 *Holders of rec. July
Georgia RR.& Banking Co.(guar.)-234 July 15 Holders of rec. July 1
Kansas City Southern Ry. Co.. Pt.(qu.)
500. July 15 Holders of rec. June 30
Little Schuylkill Navigation RR.& Coal
Co.,(8.-a.)
$1.09 July 15 Holders of rec. June 170
Mahon1ng Coal RR. Co.. common
1234 Aug. 1 Holders of rec. July 15
Massawippl Valley Ry. (8.-a.)
3
Aug. 1 Holders of rec.
Mill Cr.& Mine IIIII Nay.& RR.(s.-a.)_ *$13/ July 14 *Holders of rec. July la
July 2
Northern Central Ry. Co.(semi-ann.). 4
July 15 Holders of rec. June 30
Peterborough RR.(semi-ann.)
•15/ Oct. 1 *Holders of rec. Sept.26
Pittsburgh Bessemer & Lake Erie, com_
13.4 Oct. 1 Holders of rec. Sept. 15
Pittsburgh Cln Chic & St. Louis(s.-a.)
23.4 July
Holders of rec. J1119 9
Pittsb. Ft. Wayne & Chic., corn.(au.).. •15/ Oct. 20
1 *Holders of rec. seps.10
Common "guar.)
•154 Jan 2'33 *Holders of rec. Dec. 10
Preferred Mann/
154 July 5 Holders of rec. .1tIne 10
Preferred (guar.)
'134 Oct. 4 *Holders of rec. Sept. 10
Preferred (guar.)
'154 Jan 313 *Holders of rec. Dee. 10
Pittsburgh & Lake Erie RR
234 Aug. 1 Holders of rec. July 1
Reading Co., common
250. Aug. 11 Holders of rec. July 14
1st preferred (guar.)
30c. Sept. 8 Holders of rec. Aug. 18
2d preferred (guar.)
50c. July 14 Holders of rec. June 23
2d preferred (guar.)
50c. Oct. 13 Holders ef rec. Sept. 22
United N. J. RR.& Canal (quar.)
235 July 10 Holders of rev. June 20
Public Utilities.
Amer. Cities Power.& Light cl. A (qu.). m75e. Aug. 1 Holders
of r,c. July 50
Amer. Dist. Telegraph Co.. com.(qu.). $1
July 15 Holders of ree June 15
Preferred (guar.)
$134 July 15
American Electric. Secur. pref.(bl-mthly) 250. Aug 1 Holders of rec.,une 15
Holders of rec. July 15
American Gas & Elec. Co pref.(guar.). 134 Aug.
1
Amer. Lt.& Traction Co. com.(qu.)- - - m234 Aug. 1 Holders of rec. July 8
Holders of rec. July 150
Preferred (quar.)
134 Aug. 1 Holders of rec. July 156
July 9 1932
Financial Chronicle
254
When
Per
Cent. Payable.
Name of Company.
Books Closed
Days Inclusive.
Public Utilities (Continued.
234 July 15 Holders of ree. June 200
American Telep. & Teleg. Co.(quar)._
American Water Wdrks & Elec. Co., Inc.
50e. Aug. 1 Holders of rec. July 8
Common (guar:)
50c. Aug. 1 Holders of rec. July 8
Common v.t.c. (guar.)
$134 Oct. 1 Holders of rec. Sept. 9
36 1st preferred (guar.)
5150c. Aug. 1 *Holders of rec. July I
Artesian Water
Aug. 1 Holders of rec. June 30a
1134
_
_
A_
Associated Gas & Elec. Co., class
July 29 *Holders of rec. June 27
Atlas Elec.& Gen.Trust. Ltd.,ord reg-- •1
.
sq
29 *Holders of rec. June 27
July
for
ord
reg
Amer. dep. rec
July 29 Holders of rec. June 27
xrol
Amer. dep. rec. ord. reg. (final)
*50c. Aug. I *Ilolders of rec. July 11
Bangor Hydro-Electric(quar.)
Holders of rec. June 23
Bell Telephone Co. of Canada corn.(qr.) $134 July 15
Bell Telephone Co. (Pa.)Holders of rec. June 20
15
July
134
61.4% preferred (guar.)
15 *Holders of rec. July 5
Brit. Col. El fly., Ltd.5% pref.(s-a)--- *254 July
15 Holders of rec. June 30
British Columbia Pr.Corp..Ltd.cLA (qu) 1500. July
11 *Holders of rec. June 30
July
*3134
(guar.)._
corn.
Brooklyn Borough Gas,
Bklyn.-Manhattan Transit Corp.
July 15 Holders of rec. July 1
$134
Preferred (guar.)
Buffalo, Niagara Sr East Power Corp.
$134 Aug. 1 Holders of rec. July 15
35 preferred (quar.)
July 15 Holders of ree. June 30
Calif. Oregon Power Co., 7% pref. (0u.) 134 July 15 Holders of rec. June 30
134
13% preferred (quar.)
134 July 15 Holders of rec. June 30
6% preferred, ser. 1927 (guar.)
20c. July 25 Holders of rec. June 30
Ca nada North.Pr.Corp.,Ltd.,com.(q11.)134 July 16 Holders of rec. June 30
7% preferred (guar.)
of 1 July 15 Holders of rec. June 30
34
-a.)
(s.
Co.
Power
Canadian Light &
July 15 Holders of rec. June 30
Central Ill. Public Service Co.pf.(quar.) $134
134 July 15 Holders of rec. June 30
Central Power Co., 7% pf. (quar.)
July 15 Holders of rec. June 30
135
6% preferred (guar.)
Chesapeake & Potomac Telephone Co.
15 Holders of rec. June 30
July
5134
(quar.)
(Bait.), preferred
•30c. July 15 *Holders of rec. July 8
Chester & Philadelphia Ry (guar.)
Gin. Newport & Covington Light & Trac.
•3154 July 15 *Holders of rec. June 30
Common quarterly
31.125 July 15 *Holders of rec. JUne 30
$434 preferred (quar.)
_
$135 Sept. I Holders of rec. Aug. 15
(qu.)_
pf.
Illuminating,
Elec.
Cleveland
4•13,‘ July 15 *Holders of rec. July 1
Clinton Water Works. 7% pref. (quar.)_
15 Holders of rec. July 20
Columbia Gas & Elec. Corp., corn. (qu.) 525c. Aug.
134 Aug. 15 Holders of rec. July 20
5% cum. pref. (guar.)
Holders of rec. July 20
15
Aug.
154
5% cony. pref.(quar.)
154 Aug. 15 Holders of rec. July 20
6% pref., series A (guar.)
of rec. June 30
*Holders
15
July
51134
Commonwealth Teleph.(Wis.), pf.(qu.)
Consolidated Gas Co.(N.Y.)Holders of rec. June 30
1
Aug.
154
5% Preferred (guar.)
July • 15 Holders of rec. June 30
Causal. Traction Co.(N. J.) (8.-a.)--- $2
134 Oct. 1 Holders of rec. Sept. 15
Consumers Power Co.,$5 pref. (quer.)
1 Holders of rec. Sept.)
Oct
134
6% preferred (quar.)
1.65 Oct. 1 Holders of rec. Sept. 1
6.6% preferred (guar.)
I Holders of rec. Sept. 1
Oct.
131
7% preferred (guar.)
50e. Aug. 1 }folders of rec. Ally 1
6% preferred (monthly)
50e. Sept. 1 Holders of rec. Aug. I
6% preferred (monthly)
500. Oct. 1 holders of rec. Sept. 1
6% preferred (monthly)
5
550. Aug. 1 Holders of rec. July
6.6% preferred (monthly)
550. Sept. 1 Holders of rec. Aug. 1
preferred
(monthly)
6.6%
rec. Sent. I
of
Holders
1
Oct.
550.
6.6% preferred (monthly)
50c. Aug. I Holders of rec. July 2
Dayton Power & Light,6% pt.(mthly.)_
*8154 Aug. 1 *Holders of rec. July 2
Derby Gas de Elec., 3634 pt. (qu.)
*3151 Aug. 1 *Holders of rec. July 2
$7 preferred (guar.)
$2 July 15 Holders of rec. June 2
Detroit Edison Co., cap. stk. (guar.)--Diamond State Telephone Co.
134 July le Holders of rec. June 2
61.4% pref. (guar.)
134 July 15 Holders of rec. June 1
Duquesne Light Co.5% pref.(guar.)._
15 Holders of rem June
Electric Bond & Share Co.. corn. (guar.) /1 Si July
$134 Aug. 1 Holders of rec. July
$6 preferred (quar.)
Aug.
1 Holders of rec. July
Si
34
$5 preferred (quar.)
*Holders of rec. July 2
Escanaba(Mich.)Pow.&Tr.„8% p .(qu.) '11.4 Aug. 1
Nov. 1 *Holders of reo. Oct. 2
6% preferred (guar.)
*Holders of rec. June 3
15
July
14
1
Gardner Electric Light Co.(s.-a.)
*61 34 Aug. 1 *Holders of rec. July I
Holyoke Water Power Co.(guar.)
of rec. July 1
*Holders
I
Aug.
*25e.
pf.
B
cl. (s.-a.)
Hydro-Elec. Secur.5%
15 *Ilolders of rec. June 3
Illinois Commercial Tel. Co.,36 pf.(qu.) *3134 July
13,5 Aug. 1 Holders of rec. July 15
Illinois Northern Utilities,6% pf.(guar.) *154
Aug. 1 *Holders of rec. July 15
7% Jr. preferred (guar.)
Illinois Pow. & Lt. Corp.
1 Holders of rec. July 9
Aug.
$134
$8 corn. preferred (guar.)
Holders of rec. June 27a
Inter. Hydro-El. System. $334 pf. (qu.) 8734e. July 15
International Utilities Corp.
of rec. July 150
Holders
Aug.
1
$1M
37 prior preferred (guar.)
8754C Aug. 1 Holders of rec. July 150
$335 prior preferred (guar.)
of rec. July 50
Holders
15
July
4334c
5134 preferred (guar.)
•1% uly 15 *Holders of rec. July 1
Joplin Water Works,6% pref. (quar.)._
134 July 15 *Holders of rec. June 25
Kentucky Utilities Co.,6% pref.
*Holders of rec. June 30
Lexington Telephone,855% prof. (guar.) *134 July 15 *Holders of rec. June 30
July 10
Lincoln Telephone & Telegraph (quar.).. 4134
*Holders of rec. dJuly 30
15
*134
Aug.
(qu.)..
pt.
6%
&
Gas
Elec..
Los Angeles
July 15 *Holders of rec. June 30
Louisville G.& E. Co.(Ky.) 7% pf.(qu.) *134 July 15 *Holders of rec. June 30
•134
6% preferred (quar.)
July 15 *Holders of rec. June 30
•154
5% preferred (quar.)
500. July 15 Holders of rec. dJuly 1
Maine Gas Cos., corn. (guar.)
July 15 *Holders of rec. July 1
134
1
•1
Preferred (quar.)
1 Holders of rec. July 20
Milwaukee El. fly.& Lt. Co.,6% pf.(qu) 134 Aug. 1
*Holders of rec. Aug. 15
*134 Sept.
6% preferred (1921) (ouar.)
Holders of rec. June 30
31
July
1380.
(qr.)
new
corn
Pow,
lit.
&
Montreal Lt.
Holders of rec. June 30
15
July
2180e.
Montreal Telegraph (guar.)
15 Holders of rec. July 7
July
$234
(guar.)
Co.
Tramways
Montreal
Holders of reo. June 30
20
July
134
(gu.).
Mountain States Power Co., pref.
July 15 Holders Of rec. June 30
Mountain States Tel.& Tel. Co.(quar.)_ 2
of rec. July 9
*Holders
July
20
'Sc.
(montnlY)
Mutual Telephone (Hawaii)
250. July 15 Holders of rec. June 30
National Fuel Gas Co.,corn.(quar.)___.
$134 Aug. 1 Holders of rec. July 7
Nat. Pow.& Lt. co., 36 pref. (quar.)_
1 Holders of rec. June 30
Nevada-California Elec. Corp., pf.(qu.) 134 Aug.
75c July 15 Holders of rec. Juno 27
New Bedford Gas & Edison Lt. Co.( qu.)
*Holders of rec. June 30
15
July
•15c.
Co
Telephone
New Brunswick
500. July 11 Holders of reo. June 100
New England Power Assoc.. corn.(qu.)
15 Holders of rec. June 20
New York Telephone Co..634% Pt.(qtr.) 11.4 July 9 *Holders of rec. June 30
July
Newark Tel. Co.(Ohio),8% pf.(quar.)_ *134 Sept.
19 Holders of rec. Aug. 31
$2
Norfolk & Western corn.(guar.)
dAug 19 Holders of rec. dJuly 30
$1
(quar.)
preferred
Adjustable
1 Holders of rec. Aug. 15
Sept.
$134
North Amer. Edison Co., pref.(guar.)
•Ifi Oat. 1 *Holders of rec. Sept.10
North Shore Gas, Prof. (guar.)
Northern Indiana Public Service Co.
134 July 14 Holders of rec. June 30
7% preferred (guar.)
134 July 14 Holders of rec. June 30
6% preferred (guar.)
154 July 14 Holders of rec. June 30
534% preferred (guar.)
Northern Ontario Power Co., Ltd.50c. July 25 Holders of rec. June 30
Common (guar.)
134 July 25 Holders of rec. June 30
6% preferred (guar.)
$2
Aug. 1 Holders of rec. June 30
(guar.).
A
corn.
Power,
States
Northern
131 July 20 Holders of rec. June 30
7% preferred (guar.)
135 July 20 Holders of rec. June 30
6% preferred (guar.)
Northwestern Bell Tel. Co.
134 July 15 Holders of rec. June 30
634 preferred (guar.)
4.8134 July 5 *Holders of rec. June 16
Old Colony Light & Pow. Assoc. pt. (qr.)
50c. July 15 Holders of rec. June 30
Paciftc Gas & Electric, corn. (qua:.)__._
75c. Aug. 15 Holders of rec. July 20
Pacific Lighting Corp., corn.(quar.)...
July 15 Holders of rec. June sea
$134
>
$6 Preferred (quar.
Pacific Northwest Public Service•$1.80 Aug. 1 *Holders of rec. July 15
(guar.)
preferred
7.2% 1st
134 July 16 Holders of reo. June 30
Pacific Tel. & Tel. Co., pref. (quar)
•35c. Oct. 1 *Holders of rec. Sept. 18
PeninsularTelephone corn.(quar.)._
•350. Jan 1133 *Holders of rec. Dec. 15
Common (quar.)
•1,4 Aug. 15 *Holders of reo. Aug.
7% preferred (riar.)
Nov. 15 *Holders of reo. Nov. 6
7% preferred (quar.)
*It( 2-15-33 *Holders of reo. Feb. 6
7% preferred (quar.)
Pennsylvania Power Co.
55e. Aug. 1 Holders of rec. July 20
MO preferred (monthly)
55c. Sept. 1 Holders of rec. Aug. 20
MO preferred (monthly)
54 Sept. 1 Holders of rec. Aug. 20
Si
preferred
$6
July 18 Holders of rec. July 5
$134
(qu.)
(Chicago)
People's Gas Lt. & Coke
July 15 *Holders of rec. June 30
Peoples Telep.(Butler. Pa.). corn.(qu.)_ $134
•
Name of Company.
Per
Cent. Payable
loots Ouse-.
Days inclustre.
Public Utilities (Concluded).
•3334 July 10 *Holders Of rec. June 28
Philadelphia City Pass. RY. (3.-11.)
350. July 25 Holders of reo. July 1
Philadelphia Co. common (guar.)
July 9
Philadelphia Elec. Co., $5 pref. (quar.). $134 Aug. 1 Holders of rec. Sept.
10
rec.
Philadelphia Elec. Power CO.8% Of.(gU) 50c Oct. 1 Holders of
June 30
rec.
of
Holders
July
15
134
Power Corp. of Canada. Ltd.
ti July 15 Holders of rec. June 30
6% pref. and 6% partic. pref. (guar.)
Public Service Co. of Colorado'11 Of 1 Aug. 1 Holders of rec. July 15
7% preferred (monthly)
12 Of 1 Aug. 1 Holders of rec. July 15
6% preferred (monthly)
112 Of 1 Aug. 1 Holders of rec. July 15
5% Preferred (monthly)
Public Service Co. of Indiana$134 July 15 Holders of rec. June 30
37 cum. prior preferred (guar.)
$134 July 15 Ifolders of rec. June 30
$6 cum. prior preferred (guar.)
80c. Sept. 30 Holders of rec. Sept. 1
Public Service Corp. of N. J., corn.(qu.)
$13/ Sept. 30 Holders of rec. Sept. 1
85 preferred (quar.)
134 Sent. 30 Holders of rec. Sept. 1
7% preferred (auar.)
Sept. 30 Holders of rec. Sept. 1
2
8% preferred (guar.)
1
rec:
50c. July 30 Itolders f rec
6% preferred (monthly)
Aug.
50c Aug. 31 holders of
6% preferred (monthly)
I
Sept.
rec.
of
30
Holders
Sept.
50c
(monthly)
preferred
6%
Puget Sound Pow. de Lt.$8 pref.(guar.). $134 July 15 Holders of rec. June 20
$134 July 15 Holders of rec. June 20
55 preferred (quar.)
134 July 15 Holdres of rec. June 30
San Diego Consol. Gas ,Sc Elec.. pt. (g1.1.) •13
Oct. 1 *Holders of rm. Sept. 1
Second & 3d Sta.(Phila.) Pass. Ry.(au.)
'$1K July 15 *Holders of rec. July 1
Sedalia Water, pref. (quer.)
15 Holders of rec. July 1
134
July
South Pittsburgh Water Co.7% Pt.(qu.)
134 July 16 Holders of rec. July 1
6% Preferred (quar.)
15 Holders of rec. July 20
Aug.
50c.
(quar.)
corn.
Calif.
Edison,
Southern
July 15 Holders of rec. June 20
2
Preferred (guar.)
134 July 15 Holders of rec. June 20
534% preferred. ser. C (guar.)
Southern California Gas Co.. 6% pret- 3736c July 15 Holders of rec. June 30
3734c July 15 Holders of ree. June 30
6% preferred. class A
3154 Aug. 31 Holders of rec. July 31
634% preferred (guar.)
25c. Aug. 15 Holders of rec. July 30
Southern Canada Pr. Co.,Ltd..com.(au.)
1134 July 15 Holders of tee. June 20
8% preferred (guar.)
Calif.
Southern Counties Gas Co. of
154 July 15 Holders of rec. June 30
6% preferred (guar.)
July 15 Holders Of rec. June 30
Southern New Eng, Telephone Co.(qu.) $2
50c. July 25 Holders of rec. June 30
Standard Gas & Elec. Co., corn.(quar.)_
$1.55 July 25 IIolders of rec. June 30
$6 preferred (guar.)
3134 July 25 Holders of rec. June 30
$7 preferred (quar.)
Standard Power & Light Corp.
Holders of rec. Aug. Ila
300. Sept.
Common and common B (guar.)
Holders of rec. July lea
$134 Aug.
Preferred (quar.)
Tennessee Electric Power Co.of tee. Sept. 15
Ilolders
Oct.
134
(guar.)
5% preferred
Holders of rem Sept. 15
154 Oct.
6% preferred (guar.)
Holders of rec. Sept. 15
134 Oct.
7% preferred (guar.)
Holders of rec. Sept. 16
1 4-5 Oct.
7.2% preferred (guar.)
Holders of rec. July 15
50c. Aug.
6% preferred (monthly)
Holders of rec. Aug. 15
Sept.
50c.
preferred
6%
(monthly)
of rec. Sept. 15
Holders
Oct.
50c.
6% preferred (monthly)
Holders of rec. July 15
600. Aug.
7.2% preferred (monthly)
of
Holders
Sept.
reo. Aug. 15
600.
7.2% preferred (monthly)
Holders of rec. Sept. 15
600. Oct.
7.2% preferred (monthly)
Aug.
Holders of rec. July 15
I-3c.
8
5
_
_
(monthly)
of.
Co.,
7%
Edison
Toledo
Holders of rec. July 15
50e. Aug.
6% preferred (monthly)
Holders of rec. July 15
4 1 2-3c. Aug.
5% preferred (monthly)
1
of rec. June 30
Holders
July
234
-a.)
(s.
pt.
5%
J.),
United Gas de Elec.(N.
30e. Sept. 30 Holders of rec. Aug. 31
United Gas Improvement Co. corn. (gr.)
Sept. 30 Holders of rec. Aug. 31
$134
Preferred (guar.)
*135 Aug. 1 *Holders of rec. July 12
United Ohio Utilities, 6% pf. (guar.),
July 15 *Holders of rec. June 30
United Tel. Co.(Kansas) corn.(quar.).... *32
134 July 15 *Holders of rec. June 30
'
7% preferred (guar.)
Aug. 15 Holders of rec. July 20
134
West Penn El. Co. 7% cum. pf.(qu.)-..134 Aug. 15 Holders of rec. July 20
6% cum. preferred (qusr.)
Aug. 1 Holders of rec. July 6
134
West Penn Power Co.7% pref.(quar.)_.
13.4 Aug. 1 Holders of rec. July 1
6% preferred
15 *Holders of rec. June 30
July
•1%
C
set.
(qu.)
pt.
8%
El.,
Wisconsin Gas &
Fire Insurance.
Oct. I •Ifolders of rec. Sept. 20
•64
Boston Insurance Co
600 July 9 Holders of rem June 30
Continental Insurance Co. (s.-a.)
July 9 Holders of rec. June 30
(30e.
-a.)--(s.
Co.
Fire
Ins.
Phenix
Fidelity
Miscellaneous.
Aug. 1 (folders of rec. July 16
Abraham & Straus preferred (guar.) ---- $134 Aug. 10 *Holders of rec.
30
Acme Farm Dairy. Ltd., pref. MAO --- *3354 July 15 *Ilolders of rec. July
June Ii
•25c.
Admin. & Research class A (quar.)
1
of
Holders
Aug.
July
18
rec.
13
1-3c
Affiliated Products, Inc., cow.(mthly.)
75c. July 15 Holders of reo. June 30
Air Reduction Co., Inc.,(guar.)
15 Holders of reo. June 30
July
3
(Oust.)
Ajax Oil de Gas Co.
1234 Aug. I Holders of rec. July 9
Alaska Juneau Gold Mining (au.)
Aug. 1 Holders of rec. July 11
Allied Chem.& Dye Corp., corn.(qu.).- $134 Oct. 1 *Holders of rec. Sept. 21
O111%
Aloe(H.G.) Co.. pref.(guar.)
•500. Sept.30 *Holders of reo. Sept. In
Aluminum Manufactures, corn. (311.)
•50o Dee 31 *Holders of tee. Dec. 15
Common (gum.)
•15,1 Sept.30 *Holders of me. Sept. lb
Preferred (gum.)
'134 Dee. 31 *Holders of roe. Dee. 16
Preferred (post.)
50c. July 30 Holders of rec. July 15a
Amerada Corp.(guar.)
Aug. 1 Holders of rec. July 15
American Can Co.. common (guar.).- $1
Aug. 1 *Holders of reo. July 20
01M
(quar.)
pref.
8%
Co.,
Amer. Crayon
•1 ti Nov. 1 *Holders of tee. Oct. 20
6% preferred (qua:.)
Sept. 1 *Holden of roe. Aug. 28
American Envelope. 7% pref. (qUn).'11.4 Dee. 1 *Holders of tee. Nov. 25
7% preferred (quar.)
•10c. July 10 *Holders of rec. June 30
American Factors, Ltd. (monthly)
34 July 15 *Holders of rec. July 9
American Furniture Co., cl. A pref.(au.) *3150c.
Oct. 1 Holders of rec. sept.d1U
American Hardware Co.. common (au.).
60c. Janl'33 Holders of rec. Deo416
Common (guar.)
Aug 1 Holders of rec. July 140
300.
--American Home ProdUcts(monthly).
50c. Sept. 1
American Hosiery, corn. (guar.)
50e. July 25 Holders of rec. July 8
American Ice Co., common (guar.)
oild ra
July
$1.50 July 26 .iHolders
Preferred (guar.)
$1.150 Oct. 25 Holders of reo. Oct. 71
Preferred (guar.)
f rtwea;
of
°
•123dc July 9
y 284
oe
7
(Newark)
(guar.).Insurance
American
•1% Oct. 1 *Holders of reo.
20
Amer. Natl. Co.(Toledo), pref. A (au.). •15.4 Jan1'33 *Holders of tee. Sept.
Dee. 20
Preferred A (quarterly)
Oct. 1 'Holders of rec. Sept. 20
Preferred B (quarterly)
Jan i'33 *Holders of tea. Dee. 20
Preferred D (quarterly)
July 15 Holders of rec. July 5
Inc
Co..
News
American
July
15 *Holders of rec. June 30
American Rolling Mill, 6% pf. B (qu.)
Aug. 1 Holders of rec. July 15
American Ship Building common (guar)
1 *Holders of reo. July 15
Aug.
Preferred (guar.)
July 15 Holders of rec. July 2
Anglo National Corp.. cl. A corn.((NJ
•5
July 30 *Holders of rec. June 14
reg.__
ord.
Ltd.,
Co..
011
Anglo-Persian
etc5 Aug. if Holders of rec. June 14
Ordinary shares, final 1931
Aug. C Holders of res. June 14
5
Amer. dep. rec. for ord. reg
July 3C *Holders of rec. Juno 14
*4
1st pref. (reg.)
Aug.
(3 Holders of reo. June 14
4
Amer. dep. rec. for let pref. (rag.).-.
*454 July 30 'holders of rec. June 14
29 pref. (reg.)
6 Holders of reo. June 14
Aug.
435
Preferred (reg.)
250. July 12 Holders Of rec. July 1
Associated 011 Co. (Oust.)
*Holders of rem July 15
July
15
*3134
(guar.)
Atlantic Macaroni
250. Aug. 1 Holders of roe. July 15
Austin. Nichols & Co., Inc., A (quar.)_
July 11 *Holders of rem June 30
61
•
-a.)
(s.
Corp.
Banking
Automobile
$13.4 July 15 Holders of rec. June 20
Baldwin Co.,6% pref.(guar.)
•50. July 20 'Holders of rec. June 30
Houdin! Petroleum (monthly)
$1% July 15 Holders of reo. June 30
((Won)
pref.
1st
Bayuk Cigars. Ino.,
*$15.6 Aug. 1 *Holders of reo. July 15
Beatty Bros.. Ltd.. 9f. set. A (guar.).- •5$134 Aug. 1 *Holders of rec. July 15
BIrtman Elect., Preferred (guar.)
•3734c Aug. 15 *Holders of tee. Aug. 10
Block Bros. Tobacco. corn. (guar.)
513734c Nov. 18 *Holders of roe. Nov. 10
Common (guar.)
•154 Sept.30 *Holders of roe. Sept. 24
Preferred (guar.)
•15.4 Dec. 31 *Holders of reo. Dec. 24
Preferred (quar.)
$131 Aug. 1 Holders of rec. June 20
Bloomingdale Bros., Inc., pt. (quar.)
July 31 Holders of rec. June 15
$1
Bon Aml Co.. class A tom.(guar.)
50c. Sept. 1 Holders of rec. Aug. 15
Borden Co., corn. (guar.)
July 25 Holders of reo. June 30
20a.
(quar.)Co.,
corn.
Bower Roller Bearing
3s. July 26 Holders of rec. June 30
Brakrian Mines, ord. bearer
Ltd.
Co..
Cordage
Brantford
50o. July 15 Holders of rec. Juno 20
1st preferred (quar.)
Financial Chronicle
Volume 135
Name of Company.
Whea
eayable.
Books Closed
Days Indurles.
Miscellaneous (Coriatetwel).
Bridgeport Hydraulic Co.(quar.)
40o. July 15 Holders of rec. June 30
Byers(A. M)Co.. pref.(guar.)
1% Aug. 1 Holders of rec. July 15
Byllesby Engineering & Mgt. Corp.
•15i
7% preferred (quar.)
July 15 *Holders of rec. June 30
6% preferred (quar.)
..134 July 15 *Holders of rec. June 30
Cadillac Storage (guar.)
•100. July 15 'Holders of rec. July 1
Colombo Sugar Estates, corn.(quar.).. 40c. Oct. 1 Holders cf rec. Sept. 15
7% preferred (guar.)
*35c. Oct. 1 *Holders of rec. Sept. 15
•1% July 15 *Holders
Calaveras Cement,7% Pref.(quar.)
rec. June 30
Canada Bud Breweries, Ltd., corn.(qu.) 250. July 15 Holders of
of reo. June 30
Canada Dry Ginger Ale. Inc.(qua:.)
30c. July 15 Holders of tee. July 1
Canadian Bronze Co., Ltd., corn.(qu.)_ 31% Aug. 1 Holders
of rec. July 20
Preferred (illar.)
1% Aug. 1 Holders of roe. July 20
Canadian Car & Fdy. Co.. corn.((NJ
I 150. Aug. 30 Holders of too. Aug. 15
Preferred (qua:.)
I44o. July 9 Holders of rec. June 25
Canadian Converters Ltd.. corn.(qu.).. *50o. Aug. 15 *Holders
of rec. July 31
Canadian Fairbanks Morse, pref. (qu.). .3114 .11119 15 *Holders of
rec. June 30
Canadian Industries Ltd. A& B 41114
*6211c July 30 *Holders of rec. June 30
Common A & B (extra)
*50c. July 30 *Holders of rec. June 30
7% preferred (quar.)
'
1,154 July 15 *Holders of rec. June 30
Canadian Wineries (qua:.)
*5c. July 15 *Holders of rec. July 5
Canfield 011.7% preferred (quar.)
*IR Sept.30 *Holders of tee. Sept. 20
7% preferred (quar.)
.1.134 Dec. 31 *Holders of reo. Dee. 20
Centrifugal Pipe (q‘ar.)
15o. Aug. 1 Holders of rec. Aug. 6
Quarterly
Mc. Nov.15 Holders of fee. NOV. 6
Cherry Burrell Corp., pref.(qua:.)
•111 Aug.
*Holders of rec. July 15
Cincinnati Mill. Mach., pref.(guar.)- - *$134 July 1 "Holders
of rec. June 30
City Investing Co., corn
234 July 1 Holders of me. July 5
Coca Cola Bottling Co.of St.L.(quar.). •400. July 1 *Holders of rem.
July 6
Quarterly
4.40o. Oct. 1 *Holders
rec. Oct. 6
Comm'l Discount Corp., 7% pf.(qu.) *I714c July 1 "Holders of
of rec. July 1
8% preferred (quar.)
"20o. July 1 'Holders
Community State Corp.,class A (qua?.). '1234c Sept.30 *Holders of rec. July 1
of rec. Sept. 26
Clam A (qua:.)
*1244e Dec. 3 *Holders of roe. Dec. 27
Campo Shoe Machinery (initial)
'1234 Sept. 1 *Holders of rec. Aug. 10
Consol. Car Heating Co., Inc., com.(qu.) Ill% July 15 *Holders
of rec. June 30
Common (extra)
"32
July 15 *Holders
Consolidated Chemical Indus.Inc.,pLA• 37140. Aug. 1 *Holders of rec. June 30
of
rec. July 15
Consolidated Laundries. Pref.(guar.).- "111.1 Aug 15 *Holders
of rec. July 15
Consolidated Royalty 011 (quar.)____
Sc. July 25 Holders of rec. dJuly 15
Corn Products Refining CO.corn.(qu.)-750. July 20 Holders of rec. July 5
Preferred (quar.)
8134 July 15 Holders of rec. July 5
Courtalds, Ltd.
Amer. dep. reo. for5% pref.reg (1.-11.) 2% July 9 Holders of roe.
June 10
Creamery Package Mfg. Co.own.(qu.)_
25c. July 11 Holders of roe. July 1
Preferred (qua:.)
II1 31 July 11 *Holders of rec. July 1
Credit Utility Banking Corp., cl. E(qua
25c. July 10
Cresson Consol. Gold Min.& M111., corn.
lc. July 15 Holders of rec. June 30
Crum & Forster. cons. (qua:.)-.
*I5c. July 15 *Holders of rec. July b
Cudahy Packing Co.. common (quar.)
62110 July 15 Holders of moo. July 5
Curtiss-Wright Export, 6% pref.(quar.) *114 July 15 *Holders
of rec. June 30
Devonian Oil Co
*10c. July 20 *Holders of rec. July 1
Dictaphone Corp., pref.(quar.)
$2
Sept. 1 Holders of rec. Aug. 19
Doctor Pepper Co.(quar.)
*300 Sept. 1 *Holders of rec. Aug. 18
Quarterly
*30o. Dec. 1...Holders of me. Nov.18
Dome Mines, Ltd., corn.(qua?.)
250. July 20 Holders Of roe. June 30
Extra
20e. July 20 Holders of roe. June 30
Dominion Textile pref.(qua:.)
131 July 15 Holders of rec. June 30
DuPont de Nemours&Co.,Ino. deb.(QUO 114 July 25 Holders
of rec. July 9
East Geduld Mines. Ltd.
Ordinary shares (initial)
'Cl sh. July 28 'Holders of rec. June 30
Eastern Dairies, Ltd.. coin. (quar.)
25c. Aug. 1 Holders of rec. June 30
Eastern Theater Ltd.. pref.(s.-a).
'$334 July 30 *Holders of rec. June 30
Economy Grocery Stores (quar.)
25o, July 15 Holders of rec. July la
Electric Pr. Associates, Inc.. corn.(qu.).
150. Aug. 1 Holders of rec. July 15
Cl. A (quar.)
15o. Aug. 1 Holders of rec. July 16
Electric Vacuum Cleaner Co.,Inc.(qu.).
15 Holders of roe. June 30
250.
Ely& Walker Dry Goods. let pf. (s.-a.) •S312 July
July 15 *Holders of rec. July 2
preferred
2nd
(s.-a.)
*S3 July 15 *Holders of rec. July 2
Eppens, Smith & Co
Aug. 1 *Holders of reo. July 25
Eureka Pipe Line Co. (quay.)
Aug. 1 Holders of rec. July 15
21
Ewa Plantation Co.(qua?.)
600. Aug. 15 Holders of rec. Aug. 5
Finance Co. of America (Baltimore)Common class A & B (quar.)
10c. July 1 Holders of rec. July 5
7% preferred (qua?.)
134 July 1 Holders of moo. July 5
7% preferred class A (qua:.)
134 July 1 Holders of rec. July 5
Fireman's Fund Insurance (quar.)
*75c. July 1 *Holders of rec. July 5
Firestone Tire & Rubber, corn.(quar.)
25c. July 2 Holders of rec. July 5
Fishman(M.IL), pref. A & B (guar.). $154 July 1 Holders
of roe. July 1
Food Mach., $63.4 prof. (monthly)
*50o. July 1 *Holders of rec. July 10
Preferred (monthly)
•
Aug. 1 *Holders of rec. Aug. 10
Preferred (monthly)
"500. Sept.' Holders of rec. Sept. 10
Foulds Milling Co.,8% pref. (guar.)... *
2
July I *Holders of rec. June 30
General Electric Co.. corn. (qu.)
100. July 26 Holders of roe. June 240
Special stock
15o. July 25 Holders of rec. June 24a
General Electric Co.,Ltd. of Great Brit_
Common (annual)
ma July 2 Holders of roe. June 28
General Foods Corp.. corn. (qua:.)
50c. Aug.
Holders of rec. July 15
General Motors Corp.,85 pref.(quar.)_
g Aug.
Holders of moo. July 6
General Stockyards Corp., corn.(quar.)750. Aug.
Holders of rec. July 15a
t6 Preferred
Aug. 1 Holders of roe. July 150
Gillette Safety Razor Co. pref. (quar.) 11%
81% Aug. 1 Holders of roe. July la
Globe Discount 5c Finance (qua?.)
.250. July 1 *Holders of rec. July 1
Gold Dust Corp.. nun.(qua:.)
400. Aug. 1 Holders of roe. July 9
Gotham Silk Hosiery Co., Inc.-7% preferred (quar.)
Aug. 1 Holders of roe. July 12
Gottfried Baking Co.Inc.. prof.(quar.). 134
134 Oct. 1 Holders of roe. Sept.20
Preferred (guar.)
134 Jan 2'33 Holders of rec. Dec. 20
Govt. Gold Mining Areas Cons., Ltd.
Amer. dep. rec. reg. shares
Holders of roe. June 30
Grape(W.R.)& Co.. 6% pref.(s. a.).- Mo45
3
Dec. 29 Holders of reo. Dec. 28
Preferred A & B (quar,)
2
Sept.30 Holders of reo. Sept 29
Preferred A & B (quar.)
2
Dee. 29 Holders of rec. Dee 28
Great Lakes Engineering Works (quay.)
Aug. 1 Holders of roe. July 25
Guarantee Co. of No. Amer. (quar.)....
July 15 *Holders of rec. June 30
Extra
July 15 *Holders of roe. Juno 30
Hamilton Bridge pref.(qua:.)
Aug. 1 Holders of tee. July 15
Hamilton Woolen Co. (s. a.)
July 15 Holders of rec. June 30
Handley Page Ltd.(Am. dep. for pt. reg)
July 9 Holders of rec. June 23
Harbison-Walker Refrao.,6% p1.(qua?.)
July 20 Holders of roe. JulY 9
Hardesty(R.) Mfg..7% prof.(quar.).. '154 Sept. 1 *Holders
of rec. Aug. 15
•15‘ Deo. 1 *Holders of
7% preferred (quar.)
rec. Nov. 15
Hercules Powder, pref.(quar.)
$111 Aug. 15 Holders of rec. Aug. 4
Hershey Chocolate Corp., corn. (qua?.) "31% Aug. 15 'Holders
of
rec. July 25
Convertible preferred (quar.)
"S1
Aug. 15 *Holders of roe. July 25
Hewitt Bros. Soap, pref.(quar.)
*2
Oct. 1 *Holders of roe. Sept.20
Preferred (quar.)
*2
Jan 1'33 *Holders
Hibbard, Spencer, Bartlett & Co.,tmthly .) 100. July 29 Holders of roe. Dee. 20
of roe. July 24
Monthly
100. Aug. 28 Holders of roe. Aug.
19
Monthly
10a. Sept.30 Holders of rec. Sept. 23
Hollinger Cons.Gold Mines Ltd.(mthlY.)
60. July 14 Holders of reo. June 30d
Extra
50. July 14 Holders of rec. June 30c1
Holly Dev. Co. (guar.)
*2110. July 15 *Holders of roe. June 20
Horn & Hardart of N.Y.(quar.)
62310 Aug. 1 Holders of rec. July 11
Household Finance Corp. pref.(qu.).
$1.05 July 15 Holders of roe. June 30a
Common class A & 13
900. Jul)
, 15 Holders of moo. June 30a
Howe Sound Co. (Qum.)
100. July 15 Holders of reo. June 300
Incorporated Investors, Inc. (guar.)
•25c. July 15 *Holders of rec. June 21
Industrial & Power EleourItice (qua?.)
26o. Sept. 1 Holders of roe. Aug.
Quarterly
25e. Deo. 1 Holders of rec. Nov. 1
1
Insur. Co.of North Amer.(s.-a.)
$I
July 15 Holders of rec. June 30
Inter-Island Steam Navigation(mthly.)- 1.100. July 31 *Holders of roe. July 24
Monthly
4,100. Aug. 31 *Holders of reo. Aug. 24
Monthly
slOo. Sept.30 *Holders of roe. Sept.24
Monthly
4.100. Oct. 31 *Holders of tee. Oct. 24
Monthly
•10a. Nov.30 *Holders of rec. Nov.24
Monthly
*100. Dec. 81 *Holders of reo. Dec.
Internat. Business Mach. Corp.(quar.). 11 3.4 July 11 Holders of rec. June 24
224
Quarterly
$1 3.4 Oct. 10 Holders of rec. Sept. 22
International Harvester Co. (guar.).- 45c. July 15 Holders of rec. June
International Nickel of Canada. pf.(qu.) $1 54 Aug. 1 Holders of rec. July 20
2
Name of Company.
255
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Internat. Printing Ink Corp., prof.(W.) $1% Aug. 1 Holders of rec. July 16
International Shoe preferred (monthly)
600. Aug. 1 Holders of rec. July lb
Preferred (monthly)
500. Sept. 1 Holders of rec. Aug. 15
Preferred (monthly)
50c. Oct. 1 Holders of rec. Sept. 15
Preferred (monthly)
50o. Nov. 1 Holders of rec. Oct. 15
Preferred (monthly)
50o. Dec. 1 Holders of rec. Nov. 15
Internat. Tea Stores, Ltd. Am.dep. reo_ rwl8 Aug. 10 Holders of rec. June
24
IntertYPe Corp., 1st pref. (qua?.)
Oct. 1 Holders of rec. Sept. 15
$2
Invest. Foundation Ltd., cum. pf.(qr.)380. July 15 Holders of rec. June 30
Jewel Tea Co.,(no.. common (quay.).
$1 July 16 Holders
reo. July 1
Kalamazoo Vegetable Parchment (qU.). *15e. Sept.30 *Holders of
of rec. Sept.20
Quarterly
*150. Dee. 31 *Holders of rec. Doe. 21
Kaufmann Dept.Stores. Inc. corn. (qu.) 20o. July 28 Holders of rec. Juno 9
Kemper-Thomas Co.. corn.(quar.)
..1234c Oct. 1 *Holders of rec. Sept.20
Common (qua?.)
*12)4e Jan113 *Holders of rec. Dee. 20
Preferred (qua?.)
*Mt Sept. 1 *Holders of roe. Aug. 20
•154 Dec. I *Holders of rec. Nov.2
Preferred (guar.)
Keystone Cold Storage
*31.25 Oct. 1 *Holders of roe. Sept.20
Knudsen Creamery, class A & B (quar.). *3731c Aug. 20 *Holders of rec. July 31
Class A and B (qua?.)
•37340 Nov. 20 *Holders of roe. Oct. 31
Kroger Grocery & Bak. Co.7% 2d preferred (quar.)
•111 Aug. 1 *Holders of roe. July 20
Landers, Frary & Clark (qua?.)
*62310 Sept.30 *Holders o free. Sept. 20
Quarterly
*62%0 Dec. 31 *Holders of rec. Dee. 21
Lane Bryant, Inc. 7% prof.
1% Aug. 1 Holders of rec. July 15
Langendorf United Bak.class (quar.)
A (qua?.).
500. July 15 Holders of rec. June 80
Letcourt Realty Corp., corn. (quar.)200. Aug. 15 Holders of rec. Aug. 5
Preferred (quay.)
750. July 15 Holders of rec. July 5
Lehigh Coal & Nay.(qua:.)
200. Aug. 31 Holders of rec. July 30
Leonhard Tlets, Inc.Amer. dep. rec, corn, bearer (annual)- rtaf3 July 22 Holders of rec. July 15
Lincoln Telep. Securities Cl. A (quar.)
*50o July 10 'Holders of rec. June 30
Class B (qua:.)
"250 July 10 *Holders of rec. June 30
6% preferred (qua?.)
'13.4 July 10 *Holders of rec. June 30
Link-Belt. corn.(quay.)
20o Sept. 1 Holders of rec. Aug. 15
Lock Joint Pipe Co., own.
*670 July 31 *Holders of rec. July 31
(monthly).C
(monthly)
*670 Aug. 31 *Holders of rec. Aug. 31
Common (monthly)
*66o Sept.80 'Holders of roe. Sept. 30
Common (monthly)
'670 Oct. 31 *Holders of rec. Oct. 81
Common (monthly)
*1370 Nov. 30 'Holders of rec. Nov. 30
Common (monthly)
*880 Dee, 31 *Holders of reo. Doe. 31
Preferred (quar.)
Oct. 1 *Holders of rec. Oct. 1
*32
Preferred (quay.)
Jrn1 '33 *Holders of reo. Jan. 1
Lord & Taylor. 2d pref.(quay.)
Aug. 1 *Holders of rec. July IS
*82
Lowell Electric Light (quar.)
"90c July 13 'Holders of rec. July 7
Lucky Tiger Combination Gold M.(qu.)
30 July 20 Holders of reo. July 9
Common (qua?.)
30 Oct. 20 Holders of rec. Oct. 10
Lunkenhelmer Co., preferred (quar.)•1% Oot. I *Holders of rec. Sept.20
Preferred (quar.)
Jan 2'83 *Holders o roe Dee. 22
MacAndrews & Forbes. dna.(quar.)..
250 July 15 Holders of rec. June 30
Preferred (quar.)
8111 July 15 Holders of rec. June 30
Macy (R. FL)& Co. com.(guar.)
500 Aug. 15 Holders of roe. July 22
Magma Copper Co. (qua?.)
12% July 16 Holders of rec. June 30
Magnin (I.) & Co..6% pref.(quar.)...... •134 Aug. 1 *Holders of
rm. Aug. 5
6% preferred (qua?.)
•114 Nov. 15 "Holders of roe.
Nov.
Mansfield Theatre prat.
*33)1 July 3 'Holders of rec. June 30
Mersey Oil Corp.(quar.)
25c July 11 Holders
Massachusetts EMI. Assoc. pref.(gust.). 62% July 15 Holders of roe. June 20
of rec. June 30
McCall Corp.(quar.)
50c Aug. 1 Holders of rec. July 16
McColl Frontenao 011 pref.(quar.)
1111 July 15 Holders of rec. June 30
McCrory Stores Corp., pref. (guar.).- $1 34 Aug. 1 Holders of
rec. July 20
McIntyre Porcupine Gold Mines (quar.)
'
37340
Menzenthaler Lino Co.cap.stk.(au-).-850. Sept.30 Holders of rec. Sept. 7a
Mexican Petroleum Co.. Prof. (quar.)-- "82
July 20 *Holders of rec. June 17
Missouri River-Sioux City Bridge Co.
Preferred (quar.)
July 16 Holders of rec. June 30
Mohawk Investment Corp.(quar.)
July 15 Holders of rec. June 30
Monarch Mtg.& inv. Ltd. Pf.(quar.)
July 15 *Holders of rec. June 30
Morris (Philip) & Co., Ltd.. inc.(quay.)
July 15 Holders of rec. July 1
Mutual Chemical of Amer., pref. (lu.)Sept.28 *Holders of rec. Sept. 15
Preferred (quar.)
Dec. 28 *Holders of rec. Dec. 15
National Biscuit Co.. corn. (qUar.)-July 15 Holders of rec. June 17a
Common (qua:.)
Oct. 15 Holders of roc. Sept. 15
Preferred (qua:.)
Aug. 31 Holders of rec. Aug. 12
Nat. Distillers Products,corn.(guar.)...
Aug. 1 Holders of rec. July 15a
National Lead Co.. pref. class B (quay.).
Aug. 1 Holders of roe. July 22
National Weaving Co., 7% pref. (s.-a.).
July 30 *Holders of rec. June 30
Nelson, Baker & Co.(guar.)
•16o. Sept.30 *Holders of rec. Sept.24
Neptune Meter, pref. (quay.)
2
Aug. 15 Holders of rm. Aug. 1
Preferred (qua?.)
2
Nov.
Holders of roe. Nov. 1
New England Grain Prod.. 27 pref.(qu.) *31.75 Oct. 16
1 *Holders of rec. Sept.20
$7 preferred (guar.)
*21.75 Ja.2 33 *Holders of roe. Dee. 20
tft preferred A (qua:.)
*81.50 July 15 *Holders of ree. July 1
86 preferred A (quar.)
41.50 Oct. 15 *Holders of roe. Oct. 1
$o preferred A (qua?.)
*31.50 Ja 15'33 *Hold, of reo. Jan. 1 '33
New Jersey Zinc (quar.)
50c Aug.
Holders of rec. July 20
Newberry (J.J.) RIM.Co.,631% Pf.(qu) 134 Aug. 10
1 Holders of rec. June 15
6% preferred (quay.)
13.4 Aug. 1 Holders of rec. June 16
Niagara Shares Corp.(Md.)Common B
fa% July 15 Holders of reo. June 24
Class A, preferred (quar.)
$134 Oct. 1 Holders of rec. Sept. 16
Class A preferred (quar.)
Jan313 Holders of rec. Dec. 16
$I%
Northern Securities Co.(s.-s.)
3
July 9 Holders of rec. June 20
Northeastern Indus. Loan Corp.(quay )'El
July 1 'Holders of rec. July 1
Oahu Sugar Co., Ltd., corn. (monthly)
5c July 1 Holders of rec. July 6
Ohio Brass Co., prof. (quar.)
$13.4 July 15 Holders of rec. June 30
Onomea Sugar (monthly)
*20c July 20 *Holders of rec. July 7
Otis Elevator Co., corn.(quay.)
37% July 15 Holders of rec. June 30
Preferred (quar.)
$134 July 16 Holders of rec. June 30
Pacific Financial Corp.. Cl. A pref.(qu.) 20c Aug.
1 Holders of rec. July 15
Cl. C preferred (quar.)
18% Aug. 1 Holders of roe. July 15
Cl. D preferred (quar.)
1734 Aug. 1 Holders of rec. .1111y 15
Package Machinery, 181 pref.(guar.).- •1% Aug. 1 *Holders
of roe. MY 20
First preferred (quar.)
Nov. 1 *Holders of roe. Oct. 20
Pan American Petroleum & TransportNew common (initial) (quar.)
25c. July 20 Holders of rec. June 30
New common B (Initial) (quar.)
250. July 20 Holders of rec. June 30
Parke. Austin & Lipscomb, Inc.
Preferred A (quar.)
h25c. July 15 Holders of rec. July 1
Participation in Selected Standard Oils-- *17.90 July 31 'Holders
of rec. June 30
Peck Bros. & Co., Prof. (quay.)
•37110 July 11 *Holders of rec. June 30
Penman's. Ltd., common (guar.)
750. Aug. 15 Holders of rec. Aug. 5
Preferred (qua?.)
134 Aug. 1 Holders of rec. July 21
Pennylvania Salt Mfg. Co.(quar.)
75c. July 15 Holders of rec. June 30
Philadelphia Insulated Wire (s.-a.)
*750. Aug. 1 *Holders of rec. July 16
Piggly Wiggly (Can.). Ltd.. pref.(5,-a.) 'f$334 July 11
*Holders of rec. June 80
Plume & Atwood Mfg. (quay.)
*50o .Oct. 1 *Holders of rec. Sept.25
Pollock Pap.& Box, pref.(quay.)
4154 Sept.15
Preferred (quar.)
*3134 Doe, 16
Premier Shares, Inc.(quar,)
.
100. July 15 "Holders of rec. June 30
Procter & Gamble Co.,8% pref.(qu.)._
2
July 15 Holders of rec. June 25
Prudential Investment, $8 pref. (quar.)_ El% July
15 Holders of rec. June 30
Pullman, Inc.. corn.(quar.)
75o. Aug. 15 Holders of rec. July 23
Quaker Oats Co., common (guar.)
21
July
15
Holders of rec. July 1
Preferred (qua:.)
3134 Aug. 31 Holders of rec. Aug. 1
Railways Corp. (quar.)
"e2
July 15 'Holders of rec. June 30
Republic Stamping & Enameling Co.
Common (quar.)
250 July 10 Holders of roe. July 1
Rich Ice Cream Co., Inc. (quar.)
•500 Aug.
*Holders of rec. July 15
Roos Bros., Inc. (Del.), $63.4 pref.(qu.) *Sic Aug. 1I 'Holders
of rec. July 15
St. Croix Paper Co., common (quer.)
"$114 July 15 *Holders of rec. July 6
Scott Paper Co.,7% set. A pref.
114 Aug. 1 Holders of rec. July 16
series B pref.(quar.)
(quar.)6%
134 Aug. 1 Holders of rec. July 16
Seeman Bros.. Inc., common (quay.) - 7hc Aug. 1 Holders of rec. July 15
Served. Inc., preferred (quay.)
"81.75 Aug. 1 *Holders of rec. July 20
Preferred (quar.)
*31.75 Nov. 1 *Holders of rec. Oct. 20
Shaffer Stores, 7% pref. (guar.)
July 1 *Holders of rec. June 30
Sharp & Dohme. Inc., class A pref.(qu.) 4134
50c Aug. 1 Holders of rec. Jul., 15
Silverwood's Dairies, Ltd., pref.(quar..)_
13.4 July 30 Holders of rec. June 30
Southland Royalty Co., common
50 July 15 Holders
Spicer Mfg. Corp.. pref. see. A (quar.).. 75o July 15 Holders of rec. July 1
of roe. July 1
July 9 1932
Financial Chronicle
256
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly to the Association and the returns of these two banks
are therefore no longer shown below. The following are
the figures for the week ending July 1:
Miscellaneous (Concluded).
18M July 26 Holders of rec. June 30
Springs Mines, Ltd
Standard-Coosa-Thatcher,7% pf.(qu.) .1 5i July 15 *Holders of rec. July 15
July 15 Holders of reel June 30
Standard Oil Co.(Ohio)5% pref.(qu.)....
Standard Royalties Co.(N. Y.), Inc.,
July 15 Holders of rec.. June 30
1
Class A preferred (monthly)
59c. July 15 Holders of rec. June 30
State Street Investment, corn. (quar.)-43Mc Aug. 1 Holders of rec. July 7
Steel Co.of Canada, ord.(guar.)
Stag Baer & Fuller. 7% prof.(quar.). *43 No Sept.30 *Holders of rec. Sept.15
Dec. 81 *Holders of roe. Doe. 15
•43
7% preferred (quar.)
25c. July 15 Holders of rec. July 5
Superheater Co. (guar.)
27 Mc Aug. 1 Holders of rec. July 23
Superior Portl. Cement,cLA
123.c July 20 Holders of rec. June 15
(monthly)Cas
B common
$1 M Aug. 15 Holders of rec. July Ito INSTITUTIONS NOT IN THE CLEARING HOUSE WITH THE CLOSING OF
Swift Internacional (5.-a.)
BUSINESS FOR THE WEEK ENDED FRIDAY, JULY 1 1932.
Tacony-Palmyra Bridge Co.
•1K Aug. 1 *Holders of rec. July 10
73% prof. (quar.)
NATIONAL BANKS—AVERAGE FIGURES,
250. Aug. 1 Holders of rec. July 15
Telautograph Corp.(quar.)
90c. Aug. 15 Holders of rec. July 30
Thatcher Mfg., pref. (guar.)
Toronto Elevators, Ltd., pref. (quar.) *SI ii July 15 "Holders of rec. July 2
Other Cash Res. Dcp., Dey. Other
Loans,
'$1,' July 15 *Holders of tee. June 30
Tuckett Tobacco., pref.(poor.)
Gross
Disc. and
Gold. Including N. Y. and Banks and
562340 Aug. 10 *Holders of tee. Aug. 1
Union Storage (quar.)
Bank Notes Elsewhere. Trust Cos. Deposit*.
Investments
•62 Ke Nov. 10 *Holders of roe. Nov. 1
Quarterly
1
iept.
50c.
16
Aug.
rec.
of
Holders
United Biscuit of Amer..corn.(Guar.)...$
$
$
3
$
$
$14i Aug. 1 Holders of rec. July 15
Preferred (quar.)
Manhattan—
United Piece Dye Works, pref. fauar.)- 134 Oct. 1 Holders of rec. Sept.20a Grace National 16,788,274 1,500
14,240,451
74,451 1,286,194
915,072
2'38
Holders of rec. Dec. 20a
134 Jan
Preferred (quar.)
'8734c July 15 *Holders of rec. June 27
United Retail Chem.. pref.(Oust.)
Brooklyn—
50c July 15 Holders of rec. June 30
United Securities, Ltd.. corn.
76,000
358.000
Peoplaa Nat'l_ - 6,040,000 LOGO
32,000 5,210,001
"25c July 20 *Holders of rec. July 15
U. S. Capital, class Acorn.(guar.)
20
July
15
July
e2
rec.
of
*Holders
stock)
(in
common
Class A
30a
20
July
June
50o.
Holders of rec.
U B. Pipe & Fdy.. corn. (guar.)
50o Oct. 20 Holders of rect. Sept. 300
Common (guar.)
500. Ja.20'83 Holders of tee. Dec. 310
TRUST COMPANIES—AVERAGE FIGURES.
Common (guar.)
30c fuly 20 Holders of rec. June 30a
First preferred (quar.)
30o Oct. 20 Holders of rec. Sept. 300
First preferred (guar.)
Res've Dep., Depot.Other
Loons.
310
Ja.20'88
Dee.
80o.
rec.
Holders of
First preferred (quar.)
N. F. and Banks and
Disc. and
Gross
U.S.Smelt., Ref. & Mln. Co.. com.(ou.) 25c. July 15 Holders of rec. July la
Cash.
Elsewhere. Trust Cos. Deposits
Investments.
la
July
15
July
rec.
of
Holders
87344
Preferred (guar.)
United Verde Extension Min. Co.(an.) 10c. Aug. 1 Holders of rec. July 2a
$
8
$
$
$
Universal Leaf Tobacco Co., Inc.—
Manhattan—
50c. Aug. 1 Holders of rec. July 21
Common (quar.)
50,772,000 *2,389,800 14,325,800 2,475,100 57,907,000
July 20 Holders of rec. July 7a Empire
Vulcan Detinning Co.,pref.(guar.)---15,887.800 *2,083,300 1,635,51)0 1,146,100 16,048,200
1K Oct. 20 Holders of rec. Oct. 7a Fulton
Preferred (quar.)
63.774,479 7,453.000 16,410,280
59,773,000
United States
33( July 26 Holders of rec. June 30
West Springs. Ltd., ord. re"
West Va.Pulp & Paper Co.. pref.(an.)- 81% Aug. 15 Holders of rec. Aug. 1
Brooklyn—
20
June
rec.
15
of
(qu.)
Holders
July
$1%
Western GroceraLtd.(Montreal),pf
Brooklyn
89,655,000 2,732,000 32.868,000
306,000 103,807,000
250. July 30 Holders of rec. June 30
Westinghouse Air Brake Co.(ouar.)
24,237,738 1,720,316 5,494,442
24,764,687
Westinghouse Elec. Mfg. pref.(quar.)-. 87344 July 30 Holders of rec. July 110 Kings County
200. Oct. I Holders of rec. Sept. 15
Westmoreland,Inc
July 15 *Holders of rec. July 10
Wichita Union Stockyards, Prof. (s.-s.). "84
follows:
as
Federal
Reserve
Empire. $1,170,000: Fulton,
Includes amount with
Aug. 1 *Holders of rec. July 15
Winsted Hosiery (guar.)
$1,947,300.
Nov. 1 'Holders of rec. Oct. 15
*2
Quarterly
30
June
rec.
of
'Holders
A
•50e
_
_
July
(guar.)
1
class
Co.,
Ball
Worthington
Holders of rec. July 20
25c
Wrigley (William), Jr.(monthly)
Holders of rec. Aug. 20
250 Sept.
(Monthly)
Holders of rec. Sept. 20
250 Oct.
(Monthly)
Holders of rec. Oct. 20
25e Nov.
Boston Clearing House Weekly Returns.—In the fol(Monthly)
250
Oct.
Holders of rec. Sept. 10
Co.
Mfg.
(guar.)
Towne
Yale &
•From unofficial sources. t The New York Stock Exchange has ruled that
stook will not be quoted ex-dividend on this date and not until further notice.
The New York Curb Exchange Association has ruled that stook will not be
quoted ex-dividend on this date and not until further notice.
a Transfer books not closed for this dividend.
c Payable In South African currency.
Correction. e Payable in stock.
f Payable in common stock. g Payable In scrip. h On account of accumulated
dividends. J Payable In preferred stock.
or
m American Cities Power & Light Corp. Pays 1-32 of 1 sh. of class B stock
within
75c., at the option of the holder. Notice must be received by the corporation
cash.
receive
to
holders'
the
desire
record
of
date
10 days after the
n Holders of Basle Industry Shares receive $625 per unit.
o Fixed Trust 011 Shares pays $440.68 per unit and the 5-year Fixed Trust Shares
Pays 561.997 per unit.
Payable in Canadian funds.
u Payable In United States funds.
se Less deduction for expenses of neposItarY.
z Leas tax.
y Dividend based on Union of South Africa Currency to be Paid In English
Currency computed at the exchange rate prevalPng on July 26 1932.
Weekly Return of New York City Clearing House.—
Beginning with March 31 1928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now make only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. We give the
statement below in full:
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY. JULY 2 1932.
Clearing House
Members.
'Capital.
*Surplus and Net Demand
DePosits,
Undivided
Average.
Profits.
Time
Deposits,
Average.
$
3
3
$
10,925,000
76.917,000
9,866,800
6.000.000
Bank of N.Y.& Tr. Co_
208,496,000
36,179,000
44.436,300
Bank of Manhat.Tr. Co. 22,250.000
177,863.000
National City Bank____ 124.000.000 101,347,500 a906,128.000
23,255.000
212,751.000
44,895,100
21.000.000
Chemical Bk.& Tr.Co—
55,292,000
6744.114.000
194.963,400
90.000.000
Co
Trust
Guaranty
83,227,000
241.841,000
27.122,900
32.935.000
Manufacturers' Tr. Co
44,532,000
417,472,000
75,023,500
21,000.000
Cent. Hanover 13k.& Tr.
24,531,000
168,005,000
22,710,400
15.000.000
Corn Exch. Bank Tr. Co.
23.987,000
278.261,000
10,000.000 112,537.200
First National Bank
40.095.000
287.822,000
75,564,900
50.000.000
Co
Trust
Irving
2,498,000
18.056.000
6,747,800
4.000.000
Continental Bk.& Tr.Co
148.000.000 143,075.000 c1,018,307,000 105,930,000
Chase National Bank
2,897.000
33,559.000
3.630,500
500.000
Bank
Fifth Avenue
42,678,000
76,307,900 4421.255,000
25.000.000
Bankers Trust Co
588.000
29,564,000
21.193,2(4)
10,000.000
Co
Trust
&
Title Guar.
5,892.000
39,137,000
7,022,000
10,000.000
Marine Midland Tr. Co_
1.046,000
10,650,000
2,498,000
3,000,000
Lawyers Trust Co
20.147,000
169,216,000
26,928,600
12.500,000
New York Trust Co
42.013,000
1,813,000
9,235,600
7.000.000
Comml N.Bk.& Tr. Co.
5,837,000
26,192.000
2,863.200
2,000.000
Tr.Co.
N.B.&
Harriman
28,002,000
7,876,400
34,447.000
8.250.000
Public N. B.& Tr. Co
622.435.000 1,015,846,200 5,385,103,000 737,214,000
Totals
per official reports: National. Dec. 31 1931: State, March 28 1932: trust
companies. March 28 1932.
Includes deposits in foreign branches as'follows: (a) $207,466,000; (b) $49,406.000: (c) 353.821,000: (d) $23,880,000.
• As
lowing we furnish a summary of all the items in the Boston
Clearing House weekly statement for a series of weeks:
BOSTON CLEARING HOUSE MEMBERS.
Week Ended
July 6
1932.
Capital
Surplus and profits
Loans. deals & invest'ts.
Individual deposits
Due to banks
Time deposits
United States deposits
Exchanges for Clg. House
Due from other banks
Reeve In legal depositles
Cash In bank
R.In excess In F.R.Bk.
$
79,900,000
72,826,000
785,379,000
544,507.000
137,552,000
189,369,000
10,771,000
13,831,000
120,068,000
90,541,000
7,984,000
26,654.000
Changes from
Week.
Week Ended
June 29
1932.
Week Ended
June 22
1932.
s
5
$
PreVious
Unchanged
79,900,000
79.900,000
—1,009,000
73.535,000
73.835.000
+942,000 784,437,000 794,579,000
+14,738.000 529.709,000 527,847,000
+11,559,000 125.993,000 127,733,000
—1,104,000 190.473.000 192,819,000
—3,781,000
18,812,000
14,552,000
+5,410,000
8,016.000
8,421,000
+12,439,000 107,629,000 112,239,000
+4,565,000
86.464,000
85.976.000
—217,000
8.392,000
8,201,000
+3,062,000
24.503.000
23.592.000
Philadelphia Banks.—Beginning with the return for the
week ended Oct. 111930, the Philadelphia Clearing House
Association began issuing its weekly statement in a new
form. The trust companies that are not members of the
Federal Reserve System are no longer shown separately,
but are included with the rest. In addition, the companies
recently admitted to membership in the Association are
included. One other change has been made. Instead of
showing "Reserve with Federal Reserve Bank" and "Cash
in Vault" as separate items, the two are combined under
designation "Legal Reserve and Cash."
Reserve requirements for members of the Federal Reserve
System are 10% on demand deposits and 3% on time deposits, all to be kept with the Federal Reserve Bank. "Cash
in Vaults" is not a part of legal reserve. For trust companies not members of the Federal Reserve System the
reserve required is 10% on demand deposits and includes
"Reserve with Legal Depositaries" and "Cash in Vaults."
Beginning with the return for the week ended May 14 1928,
the Philadelphia Clearing House Association discontinued showing the reserve required and whether reserves held are above or
below requirements. This practice is continued.
Wee* Ended
July 2
1932,
Changesfrom
Previous
Week,
Week Ended
June 25
1932.
Week Ended
June 18
1932.
$
$
$
$
77,011,000
—41,000
77.052.000
77.052.000
CaPltal
202.981,000 —2,737,000 205,718,000 205,718,000
Surplus and profits
—1,309,000 1,141.942,000 1,140.423,000
LOAM, dials. and invest_ 1,140,633,000
20,879,000 +6.487,000
Exch.for Clearing HOW
14,569,000
14,392,000
109,765,000 —53.686,000 111.285,000 114,629,000
Due from banks
161,783,000 —1,668,000 163.451.000 161,982,000
Bank deposits
609,492,000 +5,560,000 603,932,000 606,499,000
Individual deposits
Time deposits
261,921,000 +1,255,000 260.656.000
. .
1,033.196,000 +5,157,000 1.028.039,000 1.020.130,000
Total deposits
Reeve web F.R.Bank... 89,096.000 +1.581,000
87.515,000
89.384.000
Volume 135
Financial Chronicle
257
Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon, July 7,and showing the condition
of the twelve Reserve banks at the close of business cn Wednesday. In the first table we present the results for
the System
as a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding week
last year.
The second table shows the resources and liabilities separately for each of the twelve banks. The Federal
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between the Reserve Agents'
Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon the
returns for the
latest week appears on page 202, being the first item in our department of "Current Events and Discussions
."
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOSE OF
BUSINESS July 6 1932.
July 6 1932. June 29 1932. June 221932. June 15 1932 June 8 1932. June 1 1932.IMay 25
1932. May 18 1932. July 8 1931.
RESOURCES.
$
$
Gold with Federal Reserve agents....... 1,926.767.000 1,918,617.000 1,899,307.000 1.897,307,000 1,943,700,000 2,038,319,000
2.113,407,000 2.177.750.000 1,964,764,000
Gold redemption fund with U. S. Tress-52,186.000
59,798,000
61,256,000
48.915,000
41,729,000
46,928.000
40,368,000
36.954,000
29,616,000
Gold held exclusively asst. F. 11. notes_ 1,988,023,000 1,978,415,000 1,951,493,000 1,946,222,000
Gold settlement fund with F. R. Board._ 250,643,000 265,672,000 270.216,000 283,224,000 1,990,628,000 2,080,048,000 2,153,775,000 2,214,704,000 1,994,380,000
Gold and gold certificates held by banks. 339.784,000 335,287,000 340.808,000 331,749.000 310,724,000 300,348,000 362.593,000 370,787.000 489,921,000
325,609,000 370,671.000 340,713.000 333,541,000 943,604.000
Totalgold reserves
2,578,450,000 2,579,374,000 2,562,517,000 2.561,195,000 2,626,961.000 2,751,067,000 2,857,081,000
2.919.032.000 3,427,905,000
Reserves other than gold
189,359,000 202,567,000 203.516.000 205,280.000 203,339.000 201,577.000 207.131,000 203.123,000 164,042,000
Total reserves
2,767,809,000 2,781,941,000 2.766,033,000 2,766.475.000 2,830,300,000 2,952,644,000 3,064,212,000
3,122.155,000 3.591,947,000
Non-reserve cash
72.070,000
69,975,000
67,836,000
71,143,000
72,397.000
69,012,000
76,136,000
68,713,000
72.905,000
Bills discounted:
Secured by U. S. Govt. obligations
190,828,000 182,693,000 196,563,000 202,225.000 210,518,000 204,770,000 190,168.000 189,083.000
59,787,000
Other bills discounted
308,998,000 287,135,000 291,643,000 294,014.000 291,393.000 289,831,000 281.099,000 275,860,000 102,599,000
Total bills discounted
499,826.000 469,828,000 488,206,000 496.239.000 501,911,000 494,601,000 471,267,000
464.943,000 162,386.000
Bills bought in open market
53,718,000
63,519,000
77,353,000
65,661,000
35,717,000
35,479,000
38,373,000
91,788,000
40,643.000
U. S. Government securities:
Bonds
429,004,000 434,532,000 429,185,000 429,056,000 429,990,000 396.794.000 374,784,000 358,658,000 183.393,000
Treasury notes
274,746,000 267,983,000 224,676,000 104,997,000 174.619,000 171,622,000 166.372,000
51,748,000
165.422,000
Special Treasury certificates
Certificates and bills
1,097,315,000 1,098,456,000 1.075,840,000 1,068.154.000 1.039.958,000 1,006,784,000 984,040,000
942,323,000 432,812,000
Total U. S. Government securities 1,801,065,000 1,800,971,000 1,729,701,000 1,692.207.000
1,644,567,000 1,575,200,000 1.525,196,000 1,466.403,000 667,953,000
Other securities
5,716,000
5,944,000
5,993,000
5,611,000
5,778.000
5,144,000
5,220,000
9,975,000
5.023,000
Foreign loans on gold
Total bills and securities
Due from foreign banks
Federal Reserve notes of other banks-Uncollected items
Bank premises
All other resources
Total resources
LIABILITIES.
F. R. notes in actual circulation
Deposits:
Member banks—reserve account
Government
Foreign banks
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
2,384,237,000 2,340,262,000 2,277,341,000 2,259.718.000 2,187.973,000 2,110.424,000 2,040,056,000 1.977.012,000 932,102,000
3,655,000
3,648,000
2,655,000
3,645,000
3,642,000
3,643,000
4,644,000
3,726,000
4,629.000
13,601,000
14,768,000
13,082,000
15,500,000
13,623,000
12,102,000
14,624,000
14,201,000
14,733.000
391,960.000 328,552.000 *354,342,000 418.230,000 337,720.000 403,247.000 337,924.000 393,311.000
498.736,000
58,085,000
58,082,000
58,113,000
58.083,000
58,083,000
58,084,000
58,084,000
58,834,000
58,084.000
43,036,000
45,205.000
46,251,000
42,316,000
42,908,000
40.903,000
39,541,000
25,999,000
38.457,000
5,731,943,000 5,642,443.000 *5588153,000 5,635,110,000 5,546.646.000 5,650,059,000 5.635.221.000
5,681.286.000 5.194.258,000
2,868,163,000 2,755,864,000 2,615,932,000 2,575,799.000 2,557.119,000 2,564,399,0002.532 714,000 2,558,107,000 1,736,922,000
1,962,989.000 2,033,697,000 2.066,092,000 2,101,243.003 2,111,673,000 2,124,685,000 2,214,384,000 2,192,403,000 2,439,578,000
28,331,000
54,351,000
40,336,000
2,695,000
36,596,000
12.985,000
36,366,000
16,060,000
26,429,000
8,396,000
17,556,000
8,752,000
60,122.000
41,696,000
74.035,000
40,706.000
39,875,000
45,578,000
36,937,000
34.893,000
32,915,000
31,368,000
20,237,000
31,376.000
29,319,000
31,833,000
25,125.000
2,044,992,000 2.107,361,000 2.172.892.0002,198,428.000 2,210,202,000 2.243.081,000 2,320.775.000
2,527,346,000
370,623.000 326,818,000 *347,596,000 411,713,000 330.996,000 304 072,000 334,481.000 2,289.535.000 474,368,000
154.816,000 154.806.000 154.809 000 154.779.000 154.801,000 154,749,000 387,068,000
154,788,00
167,979,000
154.784,000
259,421,000 259,421.000 259.421,000 259.421.000 250,421,000 259,421.000 259.421,000
259,421.000 274,636,000
38,163,000
37.506,000
33,956,000
34,129.000
34.940.000
33.385,000
33.081,000
13,007,000
32.371.000
Total liabilities
5.642,443.000 *5588153.000 5.635.110,000 5,546,646,000 5.650,059.000 5.635,221,000
Ratio of gold reserve to deposits and 5,731,943,000
5.681.286.000 5,194.258,000
F. R. note liabilities combined
53.0%
53.5%
52.4%
55.1%
54.0%
57.2%
58.7%
Ratio of total reserves to deposits and
80.3%
60.2%
F. R. note liabilities combined
57.2%
57.8%
57.9%
56.3%
59.4%
61.4%
63.1%
Contingent liability on bills purchased
84.2%
84.4%
for foreign correspondents
98,163,00, 101,465,000 102.212.000 150.342.000 179,564,000 216,402,000
73.775,000
239,948,000 302.020,000
Maturity Distribution of Bills and
Short-Term Securities1-15 days bills discounted
347.952,000 326.127,00
347,447,000 354,211,000 359,396,000 335.608,000 334.792,000
94,801,000
16-30 days bills discounted
31,666,000
331,176.000
31,458,000
33,084,00
36,911,000
36,443,000
35.449,000
32,074,000
13,676,000
31-60 days bilis discounted
56,940,000
31,644,000
51,548.000
48.812,00
44,680,000
46,978.000
46.420.000
50.172.000
19,987,000
41,029,000
61-90 days bills discounted
49,932.000
36.775,000
34,687.00
36.272.000
36,323.000
34,265.000
29,464000
18,857,000
Over 90 days bills discounted
22,239,000
28,665,000
23,970.000
24,176,000
24.165,000
22,771.000
22.769,000
24,764;000
15,615,000
23,526.000
Total bills discounted
499,826.000 469,828.000 488,206,000
496,239.000
501,911.000 494,601,000 471,267,000 464,943.000 162,936.000
1-15 days bills bought in open market- 42,528,000
29,041,000
21,403,000
26.979.000
3.091,000
7,506,000
6.054,000
16-30 days bills bought in open market
35,792,000
6,767,000
8,042.000
2,545.000
2,618,000
9,793.000
4,000,000
7.447.000
10.092.000
31-60 days bills bought in open market
12,203,000
6,249,000
7,600,000
2,945.000
2,831,000
1,761,000
2.212.000
8,019,000
10,095,000
61-90 days bills bought in open market..
14,688,000
21,796,000
12,830,000
28,975.000
26,866,000
26.414.000
27,128.000
12,493.000
11.892,000
Over90 days bills bought In open market
28,996,000
11,931,000
13,G00
13,000
14 000
240.000
114,000
240,000
Total bills bought in open market
77,353,000
63,519.000
53,718,000
35.717.0n0
65,661.000
35,479,000
38,373.000
1-15 days U. S. certificates and bills
91.703,000
40.643.000
81,475,000
65.287.000
36,550,000
36.550,000
39,590.000
39.550.000
16-30 days U. S. certificates and bills
54.500,000
5,500,000
81,980.000
109,320,000
83,625,000
87.475,000
74,000,000
36,550,000
36.550,000
31-60 days U. S. certificates and bills
39,550,000
26,850,000
40,550,000
216,041,000 191,749,000 187,800,000 175,025,000
81-90 days U. S. certificates and bills_
55.125,000
231,861,000 293.313.000 340,543.000 208,750.000 316.104,000 158,625,000 152,025.000 112.050,000
Over 90 days certificates and bills
96,171,000
458,618,000 464,482.000 423.472.000 573.829.000 330.749.000 204.649,000 187,816.000 159,525,000
516.965,000 567,410.000 550.149.003 548,218.000 249,166,000
Total U. S. certificates and bills
1,097,315,000 1,098,456.000 1,075.840,000 1,068,154.000
1.039,958,000 1,006,784,000 984,040.000 942,323,000 432,812,000
1-15 days municipal warrants
5,801,000
4,493.000
4,411,000
4,791.000
5.542.000
4,580.000
18-30 days municipal warrants
3.656,000
3,819.000
116,000
1,387,000
1,250.000
785.000
201,000
463.000
31-60 days municipal warrants
1,419.000
1.031,000
31.000
19,000
20.000
35.000
61-90 days municipal warrants
110,000
75,000
110.000
45,000
Over 90 days municipal warrants
31,000
28,000
.45.000
35.000
35.000
35.000
35.000
35.000
35,000
Total municipal warrants
5,993,000
5,944,000
5,716.000
5,611.000
5.778,000
5,144.000
5.220,000
75,000
5.023,000
Federal Reserve Notes—
leaned to F. R. Bank by F. It. Agent— - 3,093,935.000 2,990.511,000
2,850.896,000 2,791.931.000 2,786.801,000 2,785,241,000
Held by Federal Reserve Bank_
2,758.223,000 2,762,673,000 2,132,684,000
225,772.000 234,647.000 234.964,000
216.132.000 229,682,000 200,842,000 225,509,000 204,566,000 395,762,000
In actual circulation
2,868,163,000 2,755,864.000 2.615.932,000
2,575,799.000 2.557.119,000 2,564,399.000 2.532.714.000 2,558,107,000 1,736.922,000
Collateral Held by Agent as Security for
Notes Issued to Bank—
By gold and gold certificates
944,252.000 946,502,000 834.292,000 831.342,000
840,635,000 797.624,000 880,812,000 915,160,000 612,334,000
Gold fund—Federal Reserve Board
982,515,000 972,115.000 1,065,015.000
1,103,065.000 1,240,695,000 1.232,595,000 1.282,590,000 1,352.430,000
By eligible paper
522,675,000 489,285,000 500,838,000 1,065.965,000
519.313.000
U. S. Government securities
682,000,000 606.700,000 473.700.000 401,700.000 497,002.000 488,992,000 469,274.000 465,844.0001 216.206,000
360,200,000 263,300,000 196.400,000 148,300,000
Total
3.131.442.000 3.0l4,602.0002,873,8 45 000 2.818.320
000 2,800.902,00 02,790,611.000 2.779 081 000 2.791.894.0002,180.970.000
• Revised figures.
WEEKLY STATEMENT OF RESOURCES AND LIABILITIES
OP EACH OF THE 12 FEDERA
SERVE BANKS AT CLOSE OF BUSINESS July 6 1932
Two Ciphers tow °mama.
Federal Reserve Bank of—
Total.
Boston. New York. I Phila. Cleveland. Richmond
..l.tOnfa. Chicago. Si. Louis. Minneay. Kan.City. Dallas. San Fran,
RESOURCES.
$
i
$
$
$
$
$
$
$
$
$
301d with Federal Reserve Agents 1,926,767,0 176,627.0 424,572,0149,100,0 173,970,0
$
3
44,500,0 52,500,0595.595,0 59,870,0 39,805,0 49,680,0
61,256,0 2,654,0
3old red'il fund with U.S. Tress
29,285.0 131,263,0
13,779,0, 6,271.0 6,636.0 2,716,0 3,706,0
10,076,0 2.292.0 2,093,0 2,518,0
887,0 7,628,0
Gold held excl. agst. F. R. notes 1,988,023,0 179,281,0 438,351,0 155,371,0
180,606,0 47,216,0 56,206.0605,671.0 62.162,0
Dold settle't fund with F.R.Board 250,643,0 17,028,0
41,898,0 52,198,0 30.172,0 138,891.0
60,268,0 8,514,0
10,746,0 6,787,0 47,692,0 10,352,0
3old and gold ctfs. held by banks. 339,784,0 15,410,0 209,777,0, 8,546,0 27,548,0
17,919,0 6,608,0 8,427,0 27,087.0 5,059,0 12,838,0 15,004,0 6,194,0 27.672,0
3,116,0 10,801.0 5,372,0 21,662.0
Total gold reserves
2,578,450,0211.719,0 708,396,0 172,431,0 226,073,0
64,570,0
Reserves other than gold
189,359,0 19,332,0
50,552,0 30,845,0 17,804,0 9,563,0 71,420,0 680,450,0 77,573,0 57,852,0 78,003,0 41,738,0 188,225,0
4.990.0 22,534,0 8,594,0 2,937,0 4,650,0 8,410,0 9,148,0
Total reserves
2,767,809,023l,051,0 758,048.0203,276.0
243,877.0 74,133,0 76.410,0
Son-reserve cash
67,836.0 4,667,0
18,482.0 3,065,0 3,381,0 3,230,0 4,680,0 702,984.0 86,167,0 60,789,0 82,653,0 50,148,0 197,373.0
13,700,0 3,619,0 2,158,0 1,933,0 3,474,0 5,447,0
Bills discounted:
I
See. by U.S. Govt. obligations_ 190,828,0 13,784,0 61.790,0 23,798,0 19,646,0
5,426,0 9,264,0 11,460,0 7,939,0 3,782,0 1,994,0 2,244,0 29,701,0
Other bills discounted
308,998,0 14.831,01
41,092,0 44,644,0 34,103,0 21,018,0 26,672,0
23,314,0 5,264,0 9,258,0 20,014,0 10,994,0 57,794,0
Total bills discounted
499,826,0 28,615,01 102,882,0 68,442,0 53,749,0
28,444,0
34,774,0 13,203,0 13,040,0 22,008,0 13,238,0 87,495,0
Bills bought in open market
77.353,01 _3,117,0
29,944.00 3,931,0 5.298.0 3.516.0 35,936,0
2 077 n 17 Alll 0 1 4A0 0
115R 0 1 0111 n
1 R7A n
A A911 r
Financial Chronicle
258
ma
Cio..ers (00) °mines.
,...ESOURCES (Concluded)—
. S. Government securities:
Bonds
Treasury notes
Certificates and bills
Boston. New York.
Total.
9
i
Cleveland. Richmond Atlanta. Chicago. St. Louts. Mtnneap. Kan.City. Dallas. San Fran.
Phila.
$
$
0
July 9 1932
$
$
$
8
5
3
$
$
429,004,0 20,154,0
274,746,0 15,108,0
1,097,315,0 77,467,0
182,938,0 30,072,0 35,061,0 9,552,0 10,564,0 60,929,0 13,372,0 16,865,0 11,143,0 14,200,0 24,154,0
97,445,0 20,652,0 27,155,0 7,398,0 8,092,0 51,217,0 9,971,0 7,177,0 8,573,0 3,251,0 18,707,0
411,997.0 84,274,0 110,813,0 30,183,0 33,020,0 155,059,0 40,687,0 29,214,0 35,000,0 13,270,0 76,331,0
Total U.S. Govt.securities__ 1,801,065,0 112,729,0
5,993,0
other securities
692,380,0 134,998,0 173,029,0 47,133,0 51,676,0 267,205,0 64,030,0 53,256,0 54,716,0 30,721,0 119,192,0
4,413,0 1,539,0
41,0
.owl bills and securities
Due from foreign banks
F. R. notes of other banks
Uncollected Items
Bank premises
All other resources
2,384,237,0 144,461,0
211,0
2,655,0
210,0
13,082,0
391.960,0 46,767,0
58,113,0 3.336,0
46,251,0 1,911,0
829,619,0 208,910,0 232,076,0 77,096,0 89,689,0 319,540,0 78,722,0 67,322,0 78,260,0 45,335,0 213,207,0
106,0
268,0
98,0
286,0
372,0
18,0
11,0
77,0
950,0
75,0
183,0
716,0
579,0 2,722,0 1,156,0
621,0
303,0
3,828,0
373,0 1,221,0
248,0 1,105,0
110,383,0 32,300,0 37,948,0 29,804.0 10,500,0 46,414,0 15,676,0 8,260,0 22,610,0 11,711,0 19.587,0
14,817,0 2,901,0 7,966,0 3,612,0 2,489,0 7,827,0 3,461,0 1,835,0 3,649,0 1,787,0 4,433,0
656,0 1,350,0 3,592,0 3,631,0 2,760,0 1,364,0 1,582,0
921,0 1,250,0 1,252,0
25,982,0
Total resources
LIABILITIES.
F. R. notes in actual circulation
Deposits:
Member bank reserve account
Government
Foreign bank
Other deposits
5,731,943,0 432,614,0 1,763,009,0 451,697,0 527,487,0 192,289,0 188,076.0 1,096,319 190,183,0 142,330,0 191,324,0 11,4,028,0 442,587,0
Total deposits
Deferred availability items
Capital paid In
Surplus
Ali other liabilities
2,044,992,0
370,623,0
154,788,0
259.421,0
33,956,0
Total liabilities
Memoranda.
Reserve ratio (per cent)
Contingent liability on bills p
chased for foreign correspond'
5,731,943,0 432,614,0 1,763,009,0 451,697,0 527,487,0 192,289,0 188,076,0 1,096,319 190,183,0 142,380,0 191,324,0 114,028,0 442,587,0
2,868,163,0 210,733,0
613,511,0 257,134,0 293,578,0 89,921,0 114,406,0 727,870,0 97,139,0 80,720,0 89,270,0 38,350,0 255,531,0
1,962,989,0 141,921,0
480,0
40,336,0
637,0
8,752,0
131,0
32,915,0
858.279,0 117,008,0 146,427,0
20,514,0 2,323,0 1,920,0
847,0
3,103,0
863,0
22,232,0
74,0 3,308,0
—
904,128.0 120,268,0 152,502,0
99,000,0 29,655,0 36,598,0
59,185,0 16,217,0 14,266,0
75,077,0 26,486,0 27,640,0
12,108,0 1,937,0 2,903,0
143,169,0
46,096,0
11,518,0
20,039,0
1,059,0
56.3
n
,9 ..7,
K
65.3
50.0
6.76 n
os eox 0
53.9
54.7
n
7 A9A A
7 olfad
55,036,0 43,255,0 258,364,0 58,200,0 41,671,0 66,890,0 48,145,0 127,793,0
1,571,0 1,558,0 3,850,0 1,919,0
754,0 1,298,0 1,342,0 2,807,0
310,0 1,123,0
335,0
293,0
185,0
243,0
235,0
578,0
29,0
355,0 1,336,0
682,0
219,0
86,0
23,0 4,440,0
56,971,0 45,478,0 264,673,0 61,094,0 42,829,0 68,517,0 49,745,0 135,618,0
27,564,0 10,273,0 44,073,0 16,211,0 7,861,0 20,553.0 12,184,0 20,555,0
5,216,0 4,876,0 17,329,0 4,471,0 2,923,0 4,068,0 3,937,0 10,782,0
11.483,0 10,449,0 38,411,0 10,025,0 6,356,0 8,124,0 7,624,0 17,707,0
1.134,0 2,594,0 3,963,0 1,243,0 1,641,0
792,0 2,188,0 2.394,0
50.5
47.8
70.8
n
9 700 0
0(ma 6
9 054
54.5
49.2
n
1(1S1 0
9 All
52.4
56.9
n
o nco ri
9 1R9
50.5
K 1 AI
n
FEDERAL RESERVE NOTE STATEMENT.
Total.
Federal Reserve Agent at—
Boston.
3
$
..'n,... ;totters (00) omitted.
Federal Reserve notes:
Issued to F.R.Bk. by F.R.Agt- 3,093,935.0 228,865.0
Held by Federal Reserve Bank.. 225,772,0 18,132,0
2,868,163,0 210,733,0
In actual circulation
Collateral held by Agt. as security
for notes Issued to bank:
944,252,0 47,010,0
Gold and gold certificates
982,515,0 129,617,0
Gold fund—F.R. Board
522,675.0 29,336,0
Eligible paper
682,000,0 23,400,0
U. S. Government securities
mni.st onlitawral
9
111 449
New York.
Phila.
$
$
.eveland. Richmond Atlanta.
5
$
$
Chicago. St. Louis. Minneap. Kan.City. Dallas. SanFran.
$
3
8
$
$
$
079,864,0 267,231,0 303,713,0 94,384,0 131,262,0 776,101,0 104,162,0 82,787,0 98,199,0 42,990,0 284,377,0
66,353,0 10,097,0 10,135,0 4,463,0 16,856,0 48,231,0 7,023,0 2,067.0 8,929,0 4,640,0 28,846,0
613,511,0 257,134,0 293,578,0 89,921,0 114,406,0 727,870,0 97,139,0 80,720,0 89,270,0 38,350,0 255.531,0
350,572,0
74,000,0
119,552.0
151,000,0
n 990 ma n
75,420,0
73,680,0
68,930,0
50,000,0
13,170,0
31,330.0
28,726,0
21,500.0
71,970,0
102,000,0
55,788,0
80,000,0
13.500,0233.395,0
39,000,0362.200,0
35,853,0 47.993,0
45,000,0 140,500,0
20,770,0
39,100,0
12,908,0
31,500,0
12,805,0 9,880,0 12,260,0 83,500,0
27,000,0 39,800,0 17,025,0 47,763,0
12,858,0 22,297,0 13,555,0 74,879,0
30,600,0 28,000,0
500,0 80,000,0
fi6.5 124.0 211S.030.0 309.758.0 94.726.0 133.353.0 784.088.0 104.278.0 83.263.0 99.077.0 43.340 0 906
1490
Weekly Return for the Member Banks of the Federal Reserve System.
Following is the weekly statement issued by the Federal Reserve Board, giving the principal items of the resources
and liabilities of the reporting member banks from which weekly returns are obtained. These figures are always a week
behind those for the Reserve banks themselves. Definitions of the different items in the statement were given in the statement of Dec. 14 1917, published in the "Chronjcle" of Dec. 29 1917, page 2523. The comment of the Reserve Board upon
the figures for the latest week appears in our department of "Current Events and Discussions," on page 203, immediately preceding which we also give the figures of New York and Chicago reporting member banksfor a week later.
Beginning with the statement of Jan. 9 1929, the loan figures exclude "Acceptances of other banks and bills of exchange or drafts sold with endorsement, and include
al, real estate mortgages and mortgage loans held by the bank. Previously acceptances of other banks and bills sold with endorsement were included with loans, and some
of the banks included mortgages in investments. Loans secured by U. S. Government obligations are no longer shown separately, only the total of loans on securities
being given. Furthermore, borrowing at the Federal Reserve is not any more subdivided to show the amount secured by U. S. obligations and those secured by commereial
paper, only a lump total being given. The number of reporting banks IS now omitted: in its place the number of cities included (then 1011, was for a time given, but be.tinDing Oct. 9 1929 even this has been omitted. The figures have also been revised to exclude a bank In the San Francisco district with loans and investments of 5135,000,000
onJan.2 1929, which had then recently merged with a non-member bank. The figures are now given in round millions instead of ill thousands.
PRINCIPAL RESOURCES AND LIABILITIES OF ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE OF
BUSINESS JUNE 29 1932 (In millions of dollars).
Federal
Reserve
District—
Total.
$
18,754
Loans and Investments—total
Loans—total
On securities
All other
Investments—total
U.S. Government securities
Other securities
Reserve with F. R. Bank
Dash in vault
Net demand deposits
Time deposits
3overnment deposits
Due from banks
Due to banks
Boston. New York
$
1,190
$
7,556
Cleveland. Richmond Atlanta. Chicago. St. Louis. Minneap. Kan.City. Dallas. San Fran.
Phila.
$
1,105
$
1,931
$
$
582
501
3
2,372
$
$
$
$
533
333
535
388
$
1,728
11,263
772
4,293
640
1,178
334
328
1,679
306
197
272
242
1,022
4,745
6,518
293
479
1,967
2,326
319
321
534
644
126
208
110
218
796
883
118
188
56
141
78
194
75
167
273
749
173
693
227
136
263
146
706
89
84
390
303
99
128
67
69
138
125
89
57
375
331
28
268
62
7
218
1,234
192
937
19
33
62
204
71
328
1411
40
7
287
200
7
64
88
2
21
5
177
143
3
47
56
1
45
13
360
178
8
123
142
4
32
6
227
127
20
76
73
92
17
550
887
28
122
163
7.491
418
3,263
465
753
248
4,254
3,237
222
196
2,061
1.202
195
270
410
343
119
129
1,584
240
10,925
5,542
340
1,167
2,581
96
16
701
406
17
107
126
69
12
632
264
30
89
164
108
26
845
814
29
72
212
167
9
750
57
5,415
1,167
133
131
1,077
gn
li
94
35.
12
279
227
13
70
81
7
1
RR
Condition of the Federal Reserve Bank of New York.
The following shows the condition of the Federal Reserve Bank of New York at the close of business July 6 1932, in
comparison with the previous week and the corresponding date last year:
Resources—
Gold with Federal Reserve Agent
Gold redemp. fund with U. S. Treasury_
Gold held exclusively agst. F. R. notes
Gold settlement fund with F. R. Board_
Gold and gold ctfs. held by bank
July 6 1932. Jane 22 1932. July 8 1931.
S
S
5
424,572,000 415,572,000 396,919,000
13.856.000
12,845,000
13,779,000
438,351,000
60,268,000
209.777,000
429.424,000
72,342,000
203.644.000
409,764,000
140,210,000
638,325,000
Total resources
708,396,000 705,414,000 1,188,299,000
Total gold reserves
54,747,000
52,345,000
Reserves other than gold50,552,000
---1,243,046,000
757,759,000
.
758,948,000
Total reserves
19,305,000
17.031,000
18,482,000
Non-reserve cash
Bills discounted:
14,698,000
66,450,000
obligations
61,790.000
Secured by U. S. Govt.
11,643,000
42.226,000
41.092,000
Other bills discounted
Total bills discounted
Bills bought In open market
U.S. Government securities:
Bonds
Treasury notes
Special Treasury Certificates
Certificates and bills
Total U.S. Government securities—
Other securities (see note)
Foreign loans on gold
Resources (Concluded)—
Due from foreign banks (see note)
Federal Reserve notes of other banks__ Uncollected items
Bank premises
All other resources
102,882,000
29,944,000
108,676,000
11.589,000
26,341,000
25,387,000
182,938,000
97,444,000
184.454,000
96.053,000
51,453,000
7,319,000
411,998,000
—
692,380,000
4,413,000
414,038.000
107,377,000
694.545.000
4.292,000
166,149,000
4,985,000
Liabilities—
Fed. Reserve notes In actual circulation.
Deposits—Member bank reserve acc't_
Government
Foreign bank (see note,
Other deposits
Tote. deposits
Deferred availability Items
Capital paid in
Surplus
All other liabilities
Toum liabilities
July 6 1932. June 29 1932. July 81931.
5
5
5
950.000
1,281,000
3,257,000
3,828,000
4.639,000
3,396,000
110.383,000
88,026,000 130,725,000
14,817,000
14,817,000
15,240,000
25,982.000
24,979,000
11,044,000
1,763,009,000 1,728,234,000 1.648,875,000
613,511,000
858,279,000
20,514,000
3,103,000
22.232,000
904,128,000
99,000,000
59,185,000
75,077,000
12,108,000
--—
1,763,009,000
itil
.
578,664,000 294,881.000
871.743.000 1,050,978,000
2,436,000
17,078.000
2,802,000
15,954,000
22,855,000
17,491,000
.
914,478.000 1,086,859,000
87,175.000 117,469,000
59,185,000
65,456,000
75,077,000
80.575,000
13.655.000
3,635,000
—
1,728,234,000 1,648,875,000
Ratio of total reserves to deposit and
Fed. Reserve note liabilities combined_
50.0%
50.7%
90.0%
Contingent liability on bills purchased
for foreign correspondents
23,495,000
29,263,000
829.619,000 819,102 000 222,862,000
96,761,000
Total bills and securities (see note)
- NOTE.—Beginning with the statement of Oct. 17 1925.two new items were added la order to show separately the amount of balances osid abroad and arnaunts due to
foreign correspondents. In addition, the caption "All other earnings assets," previously made up of Federal Intermediate Credit Bank debentures was ohan ged to 'Other
securities." and the caption,"Total earnings assets" to "Total bills and seourItlei." The latter term was adopted as a more accurate description or the total of the discouc a
acceptances and securities acquired under the provisions of Section 13 and 1101 the Federal Reserve Act. which it was stated are the only Items included therein.
Volume 135
Financial Chronicle
259
•
Ore
(Cantin(
a 04
Attnanrtztt
(glinntirle
PUBLISHED WEEKLY
Terms of Subscription—Payable in Advance
Including Postage—
6 Mos.
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Within Continental United States except Alaska
$10.00
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In Dominion of Canada
8.75
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South and Central America. Spain. Mexico, U. B.
Possessions and Territories
13.50
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Great Britain, Continental Europe (except Spain), Asia,
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8.50
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WILLIAM B. DANA COMPANY, Publishers,
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Published every Saturday morning by WILLIAM B. DANA COMPANY.
President and Editor, Jacob Seibert; Business Manager,
Treas., William Dana Seibert; Sec.,Herbert D.Seibert. AddresseeWilliam D. Riggs:
of all, Office of Co.
Wall Street, Friday Night, July 8 1932.
Railroad and Miscellaneous Stocks.—The review of the
Stock Market is given this week on page 246.
The following are sales made at the Stock Exchange this
week of shares not represented in our detailed list on the
pages which follow:
STOCKS.
Week Ending July 8.
Sake
for
Week.
Range for Week.
Lowest.
Highest.
Range Since Jan. 1.
Quotations for
United States Treasury Certificates of
Indebtedness, &c.
Maturity,
Int.
Rate.
Bid.
Asked.
Maturity.
Int.
hate.
Bid.
Asked.
Sept. 15 1932._
June 15 1933.—
Mar. 15 1933...
May 2 1933...
Sept. 15 1932._
May 9 103.11
154%
134%
2%
2%
3%
Rot
1004n
100"n
1000s,
101
1001%,
111011,,
100.12
100"21
-___
____
10015,,
1021.,
June 15 1935-AIM. 1 1932-Oct. 15 1932...
Dec. 15 1932...
Feb. 1 1933..._
Mar. 151933__
3%
334%
334%
334%
334%
3%%
100%
1001n
1001%
101912
1004922
102sii
101,
81
100%
10014,
1011142
102
1024.
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.—
Below we furnish a daily record of the transactions in
Liberty Loan bonds and Treasury certificates on the NewYork
Stock Exchange. The transactions in registered bonds are
given in a footnote at the end of the tabulation.
Daily Record of U. S. Bond Prices, July 2. July 4. July 5 July 6. July 7. July 8.
First Liberty LoanHigh
10111, 10103, 10119,1 1011 ss
314% bonds of 1932-47__ILow_
101112 101433 101,
101',,
32
(First 3Hs)
close
10Pii 101422 101922 1011131
Total sales in 31,000 units-133
43
111
125
Converted 4% bonds of(High
------------1932-47 (First 48)._ Low(Close
-Total sales in 31,000 units-Converted 454% bondHigh
10-104,, 10114,2 10104,, 10 1411
of 1932-47 (First 4)4s) Low
10120,1 10121,1 1012,3 101"2,
(Close10111,, 10110,2 101221 101"n
Total sales in $1,000 tants_
41
54
58
75
Second converted 4%%1His
bonds ot 1932-47(First) Low.
___
--------(Second 4)4s)
Close
____
--------- Total sales in 31,000 snits_
____
-------- -Fourth Liberty Loan
102usi
[High
logien
102u
1112
1
0
2
"
,
434% bonds of 1933-38._ Low.
10221,2 102"22 102"22 102.221
(Fourth 43(s)
Close
1024.22 10214, 1022122 10211m
Total sales in 31,000 ,snits..
149
264
223
79
Treasury
{High
1051,n 105ess 105.1n 105tie
414s, 1947-52
Low_
10430,, 1051,2 1056st 105n,,
Close HOLI HOLZ
105,u 105,h, 105,10
Total sates in $1,000 units.... DAY DAY 1054n
126
125
177
64
High
,2 1022.22 10219s
45, 1944-1954
[Low.
102:::: 11.0
02 ,, 102111,, 102113
Close
1021% 102"n 102un 102",
Total sales in $1.000 units_
218
117
87
74
111161;
100
1.2 100.12 100142, 100",
354s. 1948-1958
Low_
1004,, 1034,, 1004,2 1001,,
Close
1001,, 1001,1 10011,, 100u,
Total sales in 51,000 units__
352
286
522
51
High
98.,2
98.ss
08"12 98",
354s. 1943-1947Low.
98
981,1
98412
98.22
{Close
98722
98,
:s
98,
In 981.:
Total sales in $1,000 units__
115
35
560
66
H
1igh
2323',,934,, 92n,
939,2
3s, 1951-1955
Low_
92, 92",,92
93
92ns
(Close93.22 922.22 93122
922,
Total sales in $1,000 units..,..247
251
229
31)
(Hig
82
h9 i, 98"n 99
98103
33-4s, 1940-1943
Low_
981.s2 98"12 9824, 98",
close
98202
98",2 98", 98",
Total sales in $1,000 units_
38
65
71
(High
9810,, 9810,2 98", 98'11
354s, 1941-43
Low_
98
981,1
9801, 98,
31
(Cl
98•32
984u
98"82 98",2
Total sales in 51,000 units__
76
403
106 1,25
{High
0
9410
940
9411, 94111
344s, 1946-1949
Low_
94
94
941., 9310,
Close
94.22 94112
94.32
94121
Total sales in $1.000 units.—
,55
69
/AS
26
Lowest.
Highest.
Railroads—
Par Shares. $ per share. $ per share. $ per share.$ per share.
Col dr Sou let pref-100
100 8 July? 8 July 7 8
Mar 14
Mar
Cuba RR pref
100
56
4 July 6 4% July 6 4
July 17
Mar
Mid dc Mash pref.-100
100 30 July 5 30 July 5 2414 May 48
Jan
Int Rye of Cent Am—
Pieferred
100
60 4% July 8 4% July 8 314 Jun
9% Jan
Nash Chat & St L_ _100
78 73.4 July 6 10 July 8 734 May 2734 Jan
Pitts Ft W & C pf_ _100
2 105 July 5 105 July
105
July 136
Feb
Indus. & Miscell.
Affiliated Products_ _
40
July 8 US Any 71 4% May 1634 Mar
Amal Leather pref.-100
100 6 July
6 July 6 53-4 Ap 10
Mar
Amer Agile Chem
(Conn) pref
100 4 July 8 ,4 JI113, 6 4
July 6
Apr
Amer Chain pref._ AOC
10
7)4 July 8 7% July 8 7 June 26
Jan
American News
•
F. 17% Ally 7 19 JUIP
16 Jun 83
Jan
Anchor Cap Corp pf...1
30 45 July 7 45 July 7 40 May 74
Mar
• Artloom Corp pref. A00
150 44 Julys 46 July 7 44
July 50
Jan
Austin Nichols prior X
20 12 July 7 12 July 7 12 May 18
Note.—The above table includes only sales of coupon
Jan
Barker Bros pref. —100
20 1034 July 7 10% July 7 10
Ap 30
Jan
bonds. Transactions in registered bonds were:
Brown Shoe pref._..100
80 101 July 8 101
July
101
July 11934 Jan
11 4th 4%,
102",2 to 102142,
Coca Cola Internat._
1 171 July 171
July 8 171
July 171
July
Colum Piet v t o
3.1
5 July 8 V% July 8 434 May
Mar
Corn Cred prof (7). _ _25
1 12% July 5 12% July 5 1134 June 2114 Mar
The Curb Exchange.—The review of the Curb Exchange is
Consol Cigar pref(7) 100
5 22 July 7 22 July 7 21 Jun 72
Feb
Crown Cork & Seal pf.•
given this week on page 247.
400 18 July 5 19% July 7 1734 Jun 24
Jan
Crown Wmette 1st pf._•
2 25 July 8 25 July 8 21 Jun 37
Mar
A complete record of Curb Exchange transactions for the
Davega Storm
5
200 4% July 5 4% July 8 4 May 5
Apr
Durh Boa Mills 1)1_100
20 14
14 July
14
July
week will be found on page 276.
18
Apr
Fedeml M & Sm pfd 100
100 18
F 18 July 8 15 J
July 6
20
May
Gen Cimr prof
100
10 82 July 6 83 July 6 75 Ju 101
Feb
Gen Gas & El pf A (76.*
80 5% July 6 5% July 6 534 Jun 2934 Feb
CURRENT NOTICES.
Guantanamo Shg p1100
4
4)4 July 5 434 July 5 3 Jun
434 Ally
—Gerald Clokey, head of the firm of Clokey & Miller
Helme (G W)prof..100
4 113% July 7 113% Ally 7 113% July 130
from 1923 to 1930.
Mar • who
Belly Springfield Tireretired as a member of the New York Stock Exchange firm
of Lyon.
8% pre( °Us
100
100 8 July 7 8 July 7 7 Jun 1134 May
Clokey & Co. on June 30, will head a new
firm to be known as Clokey & Co.
Kresge (818, Co pf...100
1 94 July 8 94 July 8 88
May 110
Mar
to conduct a general brokerage and investment
Maytag Co pref ex-war_j
business
in unlisted seloo 2% July 7 2% July 7 2 June 2% July curities,
Mesta Machine Co...5
specializing in municipal bonds and bank and insurance company
200 5%
1% July 6 5% May 1934 Jan
Nat Distil Prod pref_40'
stocks. The firms offices are located at 50
100
j
JIl
ully C
7 25 July 7 2034 May 3234 Feb
Broadway.
Outlet Co
•
8 26 JUIY E 27 July 5 25
Mr. Clokey was graduated from Yale in
Apr 46
Apr
Pao Tel & Tel prof..100
1914 and in 1915 he entered the
20 92 July
92 July 8 8554 Jun 109
Jan
bank stock firm of Gilbert Elliott & Co.
Pierce-Arrow Co p1_100
200 15 July
Matthew J. Hall,formerly bond
15 July 8 14
May
41
Jan
Pirelli Co of Italy
buyer of the municipal bond house of Stacy &
100 2334 July 5 23% July
21 Jun 3134 Mar
Braun of Toledo and New
Pitts Term Coal p1.10
York and later head of the new business
11 7 July 6 7 July 6 7
May 1234 Mar
department of Samuel UngerProc & Gamble prof.10
36 81 July 6 81% July 6 81 ,July 103
leider & Co., now Fenner, Beane & Ungerleider,
Jan
will be a special partner.
and Otto J. Dells, formerly of Clokey & Miller,
Scott Paper
•
30 22 July 5 22 July 5 18
will be associated with the
May 42
Feb
Bless-Shaft St &
new firm.
300 3% Jul'
354 July 5 334 June 10
Feb
Preferred
1
6
8 July 8 -7 July 6 6
July 14
Jan
—Formal announcement is made by Phillips &
Spear & Co
60
% July 8
)4 July
Co., members of the
44 July 134 Apr
New York Stock Exchange, with offices
United Dyewood._ _100
2
1
July 6 - 1
34 Apr 1.14 Mar
July 6
in New York and Les Angeles Of
Va IF Coal & Coke p1100
5
8 July 8 8 July 8 8
the
acquisition of the brokerage business of McCreery
July
30
Mar
Finnell & Co..
Fars°
I
& Co_ _
X% ells
99
% July 7
Si July 7
% July
members of the San Francisco Stock and Curb
14 Jan
Exchanges. Phillips & Co..
• No par value.
will conduct a brokerage business at the offices
now occupied by McCreery.
Finnell & Co.. 111 Montgomery St., and 104
Market St., San Francisco.
Willard Sheldon and Richard De C. Schwerin,
former partners of McCreery.
Foreign Exchange.—
Finnell & Co., will be associated with
the firm in San Francisco.
To-day's (Friday's) actual rates for sterling exchange were
3.58(43.5834
—The firm of Glass & Krey, Inc., has
for checks and 3.5834 43.58 for cables. Commercial on banks, 3.5734
been formed by Arthur W. Glass
®
and John H. Krey to engage in interpretative
3.583-4; sixty days, 3.56 Si 3.571,5; ninety days, 3.563.48j3.573-4; and
study of factors controlling
documents for payment, 3.57(8t3.58. Cotton for payment, 3.573-4, and
security values and to act either in
an advisory capacity or as practical
grain 3.5774•
managers of investment accounts. Offices will
(Friday's)
actual rates for Paris bankers francs were 3.92 11-16
To-day's
be at 535 Fifth Ave.. New
York City. Mr. Glass was formerly
(43.93 13-16 for short. Amsterdam bankers' guilders were 40.33@)40.3415•
with Stone, Webster & Blodget, Inc..
Exchange for Paris on London, 91.28; week's range, 91.28 francs high
and Grover O'Neill & Co.as economist,
and
prior
to that an instructor at
and 90.40 francs low.
United States Military Academy, West
Point, N. Y. Mr. Krey has been
The week's range for exchange rates follows:
associated with financial firms for the past
17 years, and since 1924 with
Sterling, Actual—
Checks.
Cables.
Grover O'Neill & Co.
High for the week
3.58 4
3.5834
Low for the week
—The appointment of Horace Gear as manager of
3.5434
3.5434
the Eastern division
Paris Bankers' Francs—
of Transamerica Corp.'s wholly-owned marketing
subsidiary—Associated
High for the week
3.9334
American Distributors—has been announced. He will be
3.9354
in charge of all
Low for the week
3.92H
3.92 11-16
sales activities of the organization, which is at present
concentrating on
Gerniany Bankers' Marks—
distribution
the
of
Transamerica
capital
Corp.
High for the week ,
stock,
in the New England
23.78
23.80
and Atlantic seaboard States. Mr. Gear recently retired
Low for the week
23.64
23.65
as a partner
of August Belmont & Co., and prior to his association with
Amsterdam Bankers' Guilders—
that firm he
High for the week
40.41
was with W. A. Harriman Ss Co., Inc., as head of the
40.43
municipal bond
Low for the week
40.3034
40.33Si
department.
1
Report of Stock Sales—New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-- Page One
oar
FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST. SEE PAGE PRECEDING.
HIGH AND LOW SALE PRICES—PER SHARE, NOT PER CENT.
Saturday
July 2.
Monday
July 4.
Wednesday
July 6.
Tuesday
July 5.
Thursday
July 7.
Friday
July 8.
Sales
for
the
Week.
PER SHARE
Range lot Year 1932
On basis of 100-share lots
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range for Previous
Year 1931
Lowest
Highest
Lowest
Highest
——
---par 8 per share I per share 8 ver share per
Railroads
Shares
0
Moro
32,400 Allah Topekr.& Santa Fe__100 1778June 28 99' Jan 14
7914 Dec 20338 Feb
Preferred
100 36 July 8 86 Jan 18 175 Dec 10814 Apr
800
1,200 Atlantio Coast Line RR...100
934May 26 4114 Jan 14
25 Dec 120 Jan
10,000 Baltimore & Ohio
100
334June 1
2158 Jan 21
14 Dec
8778 Feb
Preferred_
100
400
6 June 3 4114 Jan 1
25 Dec
801, Feb
Bangor & Aroostook
50
91/June 2 2414 Jan 1
18 Dec
6634 Feb
Preferred.
100 50 June 1 7912 Jan 1
80 Dec 113% Mar
Boston & Maine
100
5 May 4 141/ Jan
10 Dec
66 Feb
27 July 6 1014 Mar
400 Brooklyn & Queens Tr_No par
614 Oct
1338June
Preferred
300
No par 2314June 28 58 Mar
40 Dec
6434June
Bklyn-Manh
Tran v t o No par 11 18June 8 5014 Mar
52,200
3114 Oct
5938 Mar
Preferred vie
No par 3112June 8 7858 Mar
7,300
63 Dec
9414 Feb
400 Brunswick Ter&Ry Fee No gar
12 Apr 13
2 Jan 1
91 Feb
13, Dec
22,900 Canadian Pacific_ __ _ _ _...25
714May 31 2058 Mar
1034 Dec
453 Feb
Caro Clinch & Oble stpd_ _100 90 June 13 70 Feb
72 Dec 102 Apr
18,100 Chesapeake & Ohio
25
934Ju1y 6 3114 Jan 1
,Dec
231
4612 Feb
Chicago Great Wrstern
100
114June 2
77 Feb
438 Jan 11
214 Dec
Preferred
100
100
212May 25 1518 Jan 22
rts Dec
2714July
300 Chicago Milw St Paul & Paa_.
',June 1
314 Jan 14
114 Dec
8% Jan
Preferred
700
118May 20
514 Jan 13
214 Dec
1538 Feb
1.700 Chicago & North Wastern.100
1258 Jan 15
2 May 31
5 Dec
.1514 Feb
Preferred.
300
100
5 June 29 31 Jan 22
1314 Dec 116 Mar
500 i hicago Rook 1,1 & Pardfle_100
1 12May 25 108 Jan 22
778 Dec
6514 Jan
7% preferred
100
414May 26 271,Jan 14
14 Dec 101 Mar
6% preferred
500
100
2 May 25 3414 Jan 14
90 Jan
10% Dec
Colorado & Southern
100
412June 29 17 Mar 5
7% Dec
48 Jan
500 , orsol Rh of '...era pref.-100
3 June
11/4 Jan 2
10 Dec
4212 Feb
200 Delaware & fieddeo.....--100 32 July 21
8 8914 Feb 13
64 Dec 15714 Feb
1,200 Delaware Lack & Weater, __50
178g Dec 102 Jan
812June 1 2834 Jan 13
200 Deny dr ftlo Gt we.. prei we
112May 28
81/ Dee
9 Jan 15
4554 Feb
800 Erie
2 May 31 10 Jan 22
100
3934 Feb
5 Dec
First preferred
200
100
258May 19 1314 Jan 28
4514 Feb
6% Dec
Second preferred --------100
9% Jan 11
2 May 25
10% Jan
5 Dec
4,600 Great Northern preferred. _ 100
512May 28 25 Jan 14
6934 Feb
1558 Dec
Gulf Mobile & Northern
31 Dec
2 May 3
100
3714 Feb
8 Jan 14
Preferred
100
14% Jan 21
3 June 1
75 Jan
13 Dec
100 Hud.on & Manhattan...J(10
8 May 31 3034 Jan 18
4414 Feb
2614 Dee
1,900 Illinois Central_ _ . ... __100
4%June 1 1814 Jan 22
89 Feb
9% Dec
100
RR See stock eartifIchtes_ _
4 May 5 1414 Jan 28
61 Jan
7 Dec
7,700 Interboro Rapld Tran vi0_100
214June 10 1458 Mar 7
34 Mar
Os Dec
Kansas City Southern__ 100
67 Dee
214June 1 13% Jan 22
45 Feb
Preferred
100
5 June 9 2358 Jan 18
100
64 Feb
15 Dec
200 Lehigh Valley
5 June 8 18 Jan 12
50
8 Dec
61 Jan
2,000 Louisville & NeabvIl1e-100
712May 26 8258 Jae 14
2014 Dec 111 Feb
8,700 Manhat Elev modified guar 100
67 Dec
4 June 8 20114 Mar 8
39 Feb
200 Market St Ry prier pred_ 100
9 Jan 26
314June 2
514 Dec
22 Feb
Minneapolis & St Loub_. 100
34 Jan
IS Jan 12
% Dee
%Mae 2
200 Minn Si Paul & 88 Marie 100
814 Jan 16
%May 13
1 Dec
1114 Feb
100 Ma-Kan-Texas HR....No par
37 Dec
212
734 Jan 22
flaylaY 26
26% Jae
Preferred
800
5
314June 1 217a Jan 22
100
85 Jan
1012 Dec
300 Mleaourt Pacifle
2
112May 25 11 Jan 22
100
61% Dec
42114 Feb
Preferred
212May 26 28 Jan 26
100
314 1,800
12 Dec 107 Feb
Nat
Rya
of
Mesioo 25 prel_100
% Jan
38 Jan 12
Is Feb 9
18 Oct
14
1158 30,300 New York Central
2478 Dec 132% Feb
834June 2 8658 Jan 15
100
21 Dec
300 N Y Chic & Si Louie Co_.100112May 18
914 Jan 12
15s
88 Feb
Preferred
100
2 June 2 155* Jan 22
99 mar
100
3
5 Dec
40 N Y & Harlem
8812
50 8214May 18 125 Jan 16 1101 Dee 227 Feb
6 May 26 815* Jan 21
634 3,000 e" Y N H& Hartford
100
17 Dee
9478 Feb
Preferred
1178July 6 7834 Jan 14
2,500
14
52 Dee 11958 Fe?
1,400 N Y Ontario & Weetern-.100
858 Jan 22
4 July 7
4
1378June
514 Get
N V Railways pref.—No par
1 Feb 26
/
1
4 Apr 19
2 Feb
Is Dec
12
300 Norfolk Southern
12
214 Jan 14
12June 1
100
se Dec
814 /an
1,200 Norfolk & Weetern
100 57 June 27 135 Feb 17 10558 Dec 217 Feb
69
Preferred
30
100 65 July' 78 Jan 22
71
65% Dec
93 Mar
512May 26 23% Jan 22
718 4,800 Northern Pacific
1412 Dec
100
6078 Jan
1% Feb 18
10 Pacific Coast
1 Mar 17
100
7 Mar
Datine
1
612June 1 3338 MO 21
60
1514 Dec
758 12,500 Pennarvanla
04 Feb
3 Jan 14
%May 27
Peoria & Eastern
100
Di Dec
914 Jan
234
Pere Marquette
13aune 30 18 Jan 14
100
4 Dec
85 Feb
312
20
Prior preferred
312June 2 19 Jan 14
. 100
8% Dec
9214 Feb
512
1714 Jan 14
40
Preferred
.100
212June 1
80 Jan
5% Dec
5
Pitteburgh & Wees virgona 100
9 Apr 2 15 Jan 1
80 Jan
11 Dec
8
912June 10 42 Jan 14
200 Reading
60
80 Dec
14%
97% Feb
185 preferred
50 1514J81ne 27 83 Jan 29
28 Dec
46 Jan
16
2d preferred
— 60 16 May 2 80 Jan 22
47 Jar
2758 Dec
167
,
658 Jan 14
%May 28
500 St Louie-San Franelaeo.-.100
8 Dec
Ds
52% Jan
954 Jan 22
1 May 2
188 preferred
100
76 Jan
414 Dec
300
138
1114 Jan 26
St Louis Boutbweeearn..--100
3 May 21
414 Dec
Ws Jan
6
Preferred
9 Apr 15 2014 Jan 20
100
50 Feb
614 Dec
193
78 Jan 28
Is Jan 2
IVO par
900 Seaboard Air Line
Is Dec
111
.Jan
38
74 Feb 2
Preferred
14 Jan 4
100 ,
3% Jan
% Dec
38
100
612.june 1 37% Jan 21
251 Dec 10914 Feb
714 10,600 Southern Peen) Co
100
21/May 16 13 Jan 14
1,900 Southern Railway
6118 Dec
6578 Feb
31
3 July 1 2014 Jan 22
Preferred
100
300
4
83 Feb
10 Dec
100 15 May 12 33 Feb 2
Texas & Patella.
22 Dec 100 Jan
20
100
378May 28 14 Mar 8
900 Third Avenue
Ms Apr
5
15', July
412June 10
138 Apr 20
Twin City Rapid Tranelt-100
1778 Feb
2 Dec
134
7 June 16 Mg Jan 26
Preferred
100
11% Dec
52 Feb
9
• 100 2838July 8 941 Feb 18
7018 Dec 205% Feb
28,600 Onion Puglia
30
Preferred
100 40 May 31 68 Jan 18
61 Dec
500
b7 May
4011
4 Feb 2
%June 2
100
500 Wabaah
25 Jan
1
78 Dec
6 Jan 28
1 June 1
Preferred A
100
500
61 Jan
114 Dec
P4
78g
114May 28
100
Jan 22
weetern Ma•yland
1958 Feb
6 Dec
24
814 Jan 22
2 May 26
100
2d preferred
5 Dec
20 Feb
4
100
4June 9
6 Jan 14
Western Pacific
1% Dec
14% Feb
1
34May 31
5% Jan 22
Preferred
100
8154 Feb
8 Dec
200
3
Inclusr vial & Miscellanea's.
300 Abitibi Power & Paper_No par
78
100
Preferred
300
4%
Abraham & Straus___No par
1434
100
Preferred
81
No par
218 2,400 Adams Express
Preferred
100
20
27
No par
300 Adams Millie
14
1,200 Addreseegrapb Int CorpNo par
10
Advance Rumen, new_No par
134
No par
14,700 Air Reduction Ine
33
1
300 Air-way Lice Appliance No par
95* 43.000 Alaska Juneau Gold Min__ 10
No par
A P W Paper Co
2
No par
54 1,900 Allegnany Corti
Pref A with 230 wary.._.100
114
Pref A with $40 ware100
100
1
Pref A milieus wan._ _100
2
10 Allegbebr Stool Co
512
No Oa'
$ per share $ per share $ per share $ per share $ per share $ per share
2012
, 1912 2158 19
185, 1958 1834 207
395g 3934 3934 40
3758
3958 3954 36
1014 1012
11
1012 11
1012 1012 10
512 578
512 578
514 57
512
5
618 618
.618 714
7
7
614 614
*12
14
*13
18
*12
17
*12
17
*5712 70
*5712 70
70
*57
.5618 70
*4
5
5
*4
*4
5
*4
9
358
312 3% *3
278 278
*278 358
*31
33
*29
33
29
29
30
30
1914
1518 1514 1478 15/
1
4 1614 1818 18
46
*39
4112 417 4412 43
*38% 42
34
.12
*12
34
*12
34
12
12
214 912
914 10
912 1018
914
978
a_ _ _ _ 43 *____ 43 *__ 43 •_ _ _ 43
1014
1058 10
934 10% 10
98 10%
*158 112 "138 112 *138
112 *138 112
*334 4
*35
378
38 37
*31s 37
1
1
Ds
s%
%
78
%
78
112
114 114
18 138
13
13, 13
212 212
212 212
212 278
212 258
5
5
*5
7
7
*5
*5
9
238 258
214 *238 284
214
214 212
*418 638 *412 658 *412 658 "412 5'4
35, 358
*314 412
4
4
4
4
*414 15
*4% 15
*414 15
*378 15
37
378
*2
*2
3
3
*3
4
3318
22
*33
36
*34
3634 3418 36
9
834 9
9
918
98 *914 10
*134 2
*138 2
2
2
*138 2
3
3
*278 3
3
3
3
3
33
33,
*33
4
*314 4
3
3
214 *114 2'4
214 *1
*1
214 *1
634
614
718
618 65*
6
65
68
*1
6
*1
6
6
'1
.1
6
*1
4
4
*1
*1
4
4
•1
*121 i 145* *1214 1458 *1214 1412
13
13
618 638
65a 634
614 634
6
612
Stock
Stock
*5
6
6
5
*4
5
*4
6
414 434
334 434
Exchange Exchange
358 358
*318 334
.31i 334
"318 4
*258 418 *258 4
10
*5
*5
10
*8
10
9
9
Closed
Closed
512 512 *512 534 .54 584
*512 534
1014 103
212 1018 10
1058 1034 11
LadeExtra
614 7
6
718
5
51.
5
512
3
311
3
8
*3
•234 314
3
pendence
Holiday
*18
14
*18
14
14
*18
14
.18
118
1%
3
*1
1
1
*1
3
Day
12
7g
*57
61
*65
65
614
612
*%
1
7
714
234 *1
3% *2
418
4%
3%
5
*2
8
1112
12
*15
17
1678 *---1
112
112
15*
*3
4
*714
193
14
38
*14
38
718
73
334
4
4
*314
*3
20
414
412
*1%
13
*7
9
3014 2958
4015 41
1
1
114
13
*2
23
*2
4
1
*52
114
114
12
12
63
68
*65
71
634
678
*14
1
718
714
284 *1
*2
3
418
4'8
35
312
*2
8
1112 *12
1658 *15
1678 *--- lis
118
1%
158
512 *3
1934 *714
14
14
*14
38
73
71
334
4
414 *314
*3
20
5
4'2
*112
13
*7
9
1
4
3114 29/
4114 *4058
1
1
114 *113
258 *218
*2
4
*58
1
114 *138
*2
5
*11
314
*Is
1058
158
*214
8812
6%
1314
4
12
.18
*38
12
59
65
*65
71
654i
738
1
1
75,
7
234 *1
312 *2
4% *4
35* *312
*2
8
•12
15
16% *15
1676 *---1113
118
13,
158
*3
6
*714
193
38
14
14
38 .
7
8%
4
312
*314
4
*3
20
5
5
*112
13
*7
9
3134 2858
43's 4058
78
1
118
11
258 *2
*2
4
533
1
*138
3
*34
1
2
3
*9
143
*68
81
2
2
22 *_
14
14
Mg *10
134 *112
3212 3112
58
e58
934
1018
*58
2
12
58
114
*34
1
*58
.14
2
5,2 *514
1
1
*2
2
*9
143
*68
81
214
2
27 •____
14
14
1018 10
134 .112
3334 321
1
*es
, 958
105
*I%
2
54
12
*34
114
34
58
*14
2
5% *51
78
1
•2
41
9
1434
*68
81
2
214
27 •__ ...
*1338
14
10
10
134 *112
3358 3112
*58
1
1014 x918
*58
2
12
58
.
34
114
34
34 .
*14
2
512
512
*178 212
412 434
•134 2
*3% 314
*111
14
1118 1112
4.2% 3
.218 3
*92
95
634 718
127 128
45* 45,
*I,
*12
*5738
65
618
.14
7
*1
*178
*334
*358
*2
12
*15
•1
*112
*3
*714
*4
*14
71
33,
312
*3
4%
*112
•7
29%
4012
*78
*1%
*2
*2
*73
*114
.
*38
3
*9
*68
2
22
*133,
1018
.112
3112
58
8%
*58
%
47
488
*14
*514
58
214 214
*2
212
478 5 I
412 412
158
15
134 134
33,
3
318 314
14
*18
14
*18
1118 1218 115t 1214
2% 214
*214 3
24 234
*214 3
*8812 95
92
89
678 714
718 712
117 1314 1314 14
414 47
412
4
*14
12
Cs
•Bid and asked prams: no sale on this day. a Es-dividend and es-right,
e 50% 1000g dividend paid
/
1
4J une 25
112June 14
10 June 1
68 July 1
158May 31
22 June 24
12 June 1
Penne 18
114June 8
3074July 1
12June 6
734June 9
2 Apr 22
%May 31
%May 31
%June 3
',June 11
5 May 27
s try-divIde el
$ Feb 13
914 Jan 15
24 Jan 18
98 Mar 1
534 Jan 11
70 Mar 8
303, Mar 8
18 Feb 11
812 Mar 7
6214 Mar 8
4 Mar 8
1658 Jan 21
4 Mar 15
3% Jan 14
758 Jan 22
65* Jan 22
6/
1
4 Jan 15
1$ Jan 7
y Ex-rights.
2 Dec
478 Dec
18 Dec
96 Dec
318 Dec
50/
1
4 Dec
2214 Jan
10 Oct
3 Sept
4758 Dee
114 Dec
7 Jan
23, Dee
Ili Dec
2 Dec
1% Dec
134 Dee
10 Dec
la% Feb
52 Feb
89 Aug
10614Mae
23% Feb
92 Apr
8814 Aug
23% Feb
1158 Mar
10218 Feb
1038 Feb
2018June
9 Aug
12% Feb
59% Feb
59 Feb
5514 Feb
46% Feb
New York Stock Record-Continued-Page 2
261
IarFOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE SECOND PAGE PRECEDING
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
July 2.
Monday
July 4.
Tuesday
July 5.
Wednesday I Thursday 1
July 6.
July 7.
$ per share $ per share $ per share $ per share
4512 47/
1
4
45'2 47
*102 105
1021
/
4 10214
434 5
434 434
*413 6
*44 6
1412 144 1434 1434
*312 4
*312 4
61
/
4 8/
1
4
6/
1
4 6/
1
4
*3012 36
*3012 36
*12 1
vt2 1
112 11
/
4 *112 2/
1
4
.
7/
1
4 7/
1
4
7
74
4278 4272 41
41
3214 3312 31/
1
4 3312
"98
98
9772 98
372 414
4
4
18
18
1634 1852
•172 212 •172 212
22
22
2134 22
2/
1
4 2/
1
4
2/
1
4 2/
1
4
*12
1234 *12
124
114
"1
114 31
*312 434 *318 4/
1
4
2
214
2
2/
1
4
5
514
5
512
314 314
3
312
512
*334 54 *4
*312 4
'34 4
•1/
1
4 1/
1
4 "11
/
4 1/
1
4
*6114 8/
1
4 *878 8/
1
4
25
2534 25
2554
10/
1
4 11
11
11
3
3
3
34
*4
ss
*14
38
'2
3/
1
4 *2
314
334 334
37s 37s
19
1912 "19
2134
7/
1
4 7/
1
4
7/
1
4 734
*114 112 *114 112
24 218 *2
214
•
10
10
1072 1072
---. --- --_
4
-438
4
412
*15/
1
4 151
15/
1
4 1558
1072 11
10
11
---- - ____ --1
4
312 3/
312 352
Stock
Exchange
Closed
Extra
Holiday
$ per share
45/
1
4 48
102 102
412 4/
1
4
413 412
15
15
4
4
612 612
*3114 36
es 1
*112 2/
1
4
74 74
*4014 43
314 33/
1
4
99
994
4
412
1652 1914
172 172
2112 22
212 212
1272 1312
•1
114
*34 4/
1
4
212 3
512 7
314 412
512 512
'312 4
*Vs 134
*74 914
26
27
*1012 11
314 34
*14
38
*2
314
37/3 414
20
20
734 734
•114 112
172 172
"10
11
Friday
July 8.
Sales
for
the
Week.
$ per share Shares
4412 4612 46,700
400
1
4
105 105/
412 412 2,800
100
*44 6
700
15
15
4
900
4
614 614 1,000
*311
/
4 36
*12 1
50
•112 2/
1
4
1,000
7
7
200
4014 43
30/
1
4 3212 105,100
99
9972 1,400
354 4
1,800
410
1752 1712
2
2
300
21
21
1,200
214 214 1.300
*12
1212
200
114
*1
*4
4/
1
4
212 2/
1
4 13,500
54 572 3,100
334 4
4,300
*4/
1
4 7
100
'312 4
134 154
100
•8
9/
1
4
2,500
28
26
210
1014 1.500
1,400
3
3
•14
38
2
2
20
414 414 2,200
*1978 211
/
4
500
754 734 2,600
*114
112
*114
112200
40
*10
11
STOCKS
NEW YORK STOCK
EXCHANGE.
Indus. & Miscall. (Cos.) Par
Ained Chemical & Dye_No par
Preferred
100
Allis-Chalmers Mfg ---No par
Alpha Portland Cement No par
Amerada Corp
No par
Amer Agri° Chem (Del) No par
American Bank Note
10
Preferred
50
American Beet Sugar__No par
7% preferred
100
Am Brake Shoe & Fily_No par
100
Preferred
American Can
25
Preferred
100
American Car & Fdy_--No par
Preferred
100
American Chain
No par
American Chicle
No par
No par
Amer Colortype Co
Am Comm'l Aloohol new---20
Amer Encaustic Tiling_No par
Amer European Eleo's-No par
Amer & For'n Power___No par
No par
Preferred
2d preferred
No par
30 preferred
No par
Am Hawaiian El El Co
10
Amer Hide & Leather__No par
Preferred
100
Amer Home Products-No par
American See
No par
Amer Internal Corp
No par
Am L Franoe&Foamite_No par
Preferred
100
American L000motive_No par
Preferred
100
Amer Mach & Fdy new_No par
Amer Mach & Metals_No par
Amer Metal Co Ltd ___No par
6% preferred
100
Amer Nat Gas pref____No par
372 412
6:300 Am Power & right---No par
372 -4
1512 1534 *1514 16
No par
Preferred
500
No par
1114 1114 1012 1114 1,300
25 Preferred
Pref A stamped
--_- -_-___ ____ -----No par
34 334
3/
1
4 354 8,600 AmTlad&StandS,n'y_Nopar
Amalean Bepublios___No par
4
4
4
4
4
26
4/
1
4
4
412 2,500 American Rolling Mill
*1512 161 *1512 1612 *15/
200 American Safety Itasor_No pa
1
4 1612 1512 1514
Amer Seating v t o
No par
"2
3
*58
34
*38
34
*38
34
*18
14
100 Amer Ship & Comm-No par
14
14
*4
14
*18
14
*11
121 '11
1212 *11
Amer Shipbuilding new_No par
1212 *11
1212
832 7/
1
4
6/
1
4 712
7
74
714 7/
1
4 6,700 Amer Smelting & Ilefg_No par
23
23
2312 2312 *2312 26
100
Preferred
25
25
400
Stock
15
15
*15
20 •15
100
20 "15
500
24 preferred 8% ottm
20
*2214 2312 2238 2232 23
25
2314 2212 224
500 American Snuff
Exchange
9312 9312 *9312 94
*934 94
10
100
Preferred
*9312 94
---_ ____
_____
. Amer Solvents & Chem_No Pa
Closed
____
.______
_
No pa
Preferred
200 Amer Steel FoundrIes-No par
34 34 *34 312 "34 312 •318 34
Indc*34
54
34
34
*34
100
54
Preferred
*34
54
10
2438 2432 *24
25
*244 254 *2312 2434
100 American Store!:
No par
pendence *1634 17
100
1714 1812 1712 18
17
17
1,900 Amer Sugar Refining
*53
Preferred
54
54
600
5512 57
100
5412 5412 55
Day
*34 418 4.312 44 *34 , 412 *312 412
Am Sumatra Tobasoo-No par
7512 78/
100
1
4 75
7712 744 774 7154 74781148,300 Amer Telep & Teleg
4712 4734 4754 49
49
5014 48
49 l 4,400 American Tobacco new w I__25
Common class B new w 1-25
49
50/
1
4 4918 5134 4934 5214 4914 51141 68,000
*10014 101
Preferred
101 101
101 101
100
1021
/
4 10212800
5
5
5
*5
s *5
9/
1
4
5
300 American Type Foanders 100
12
100
Preferred
13
1012 1012 *1012 13
*1012 13
60
1112 1212 11/
1
4 1214 1172 1252 1114 111
/
4 4,700 Am Water Wks & Eles_No par
'10
13 "10
13
*10
No par
13
Cora vet tr MN
*10
13
*34
hat preferred
36
*3512 60
200
3512 38
*3512 60
2
2
2
2
400 American Woolen
•172 2
No par
2
2
'17
1712 17
100
17
17
17
*1624 1984
300
Preferred
3,
Am Writing Paper otfe_No par
*14
1 '
14
3s
*14
*14
/
1
4
4.2
278 *2
2/
1
4 '2
21
Preferred earttfloates_100
*2
212'
*i1
2
*112 2
112 11
114
1141
300 Am Zino Lead & Smelt_No par
10
1010
'10
181 *10
181
10
25
Preferred
300
1812
3/
1
4 4
3/
1
4 3/
1
4
334 4
3/
1
4 4
27,500 Anaconda Copper Mining_50
*4
41
41
4
"4
4
412 *4
100 Anaconda Wire & Cable No par
No par
8
8
81
/
4 814
74 772 '712 8
500 Anchor Cap
•118
134 *112 184 *11g 25
Andes Copper Mtning__No par
*112 254
934
10
10
"9
10
600 Archer Daniels MidE4_N0 par
*9
9
934
28/
1
4 28/
1
4 28/
34
1
4 30
36
1,900 Armour & Co (Del) pref-100
3114 34
4
/
1
4 '
1
/
1
4
114 7,300 Armour of Illinois elan A___25
/
1
4
4 114
1
4
25
Clue B
58 9,200
12
12
34
38
12
7
100
Preferred
7
7
712
8
87
84 9
1,200
*114
•114 2
"112 11
17
*11
/
4 1/
1
4
100 Arnold Constable Oorp_No par
*212 a
*24 3
*212 3
*212 5
No par
Artloom Corp
*12 11
*12 114 '
Associated Apparel Ina_No par
12 V '
12 114
3
*254 3
3
3
31
*254 312
600 Antoo Dry Goods
No par
*612 25
*612 25
•612 25
Associated 011
*612 25
25
*512 61
*512 812
Atl CI & W I 1343 Llne___No par
*513 61
*54 81
*612 9
*812 9
*618 9
'64 9
Preferred
100
/
4 1012 104 4,000 Ailentio Refining
10/
1
4 111
1032 10/
1
4 1072 11
25
*712 734
.712 72
712 712
*74 75
100 Atlas Powder
No pot
493 *48
*48
4954 50
493 *48
10
100
Preferred
50
Atlas Stores Corp
No par
lit -41 187;
- "4,-6'2 li" Ii,floo Auburn Automobile-No Dar
-ige
li7 "iir2
•12
*II
7
*12
72
*4
78
No par
Austin Nichols
1
.143
14
418
•18
1
*18
14
No var.
Autosales Corp
*12 1
*4 1
•In
1
*it
1
Preferred
50
172 2
1/
1
4 2
2
2
2
2
2,800 Aviation Corti
N. par
•212 27 '212 2/
234 25
200 Baldwin Loco Works. __No par
1
4
254 254
*914 10
9/
1
4 91
818 9
872 8/
1
4
280
Preferred
100
69
64
68
09 "66
'66
62
63
60 Bamberger (L) & Co pref-100
*/
1
4 2
*34 2
*34 2
Barker Brothers
*34 2
No par
4
4
414
41
414 414
4
414 2,800 Barnedal Corp class•
25
*4
55
*5
53
*4
534 '4
534
Bayuk Cigars the
No per
37
*35
37
*35
*35
37
*35
37
let preferred
100
18
1712 1712 *174 18
1714 171 •17
300 Beatrice Creamery
50
72
72
72
'65
72
72
714 72
400
Preferred
100
311
*31
33
3112
"31
33
*31
33
100 Beech-Nut Peeking Co
-20
4
4
4
4
4
4
4
4
1,300 Belding HaM*Wal Co--No par
*60 - - *6014
- - '6212 - -- 6212 624
100 Belgian Nat Bye part pre}___
4/
1
4 -512
44 --54
4,900 Bendlx Aviation
4/
1
4 -5
4/
1
4 5
No par
11612 6/
1
4
6/
1
4 7
654 7
700 Best & Co
614 614
No par
8
8/
1
4
8/
1
4 914
8/
1
4 872
852 8/
1
4 6,000 Bethlehem Steel Corp-No par
2012 20/
•1814 20
1
4 2034 21
21
211
/
4 1,800
100
7% Preferred
1
4 412 *414 412 *414 al
*414 4/
1
4 *4/
Blaw-Knox Co
No pa'
NA 9
*6/
1
4 9
*6/
1
4 9
Bloomingdale Brothere_No pa*
*652 9
"____ 50
___- 50 *---- 50 *-___ 50
Preferred
100
5/
1
4 6
5/
1
4 58
51
5/
1
4 *54 51
1,500 Bohn Aluminum & Br-No par
5112 *30
"30
5112 *30
511 *30
Bon Am] Mame A
51'l
No par
14
*12
14 '
15
Booth Maberiaa
14
*18
14
•Is
No oar
*___
14 •_-112 •---14 *____
11
1st preferred
100
20i2 217v 2054 214 2114 2178 2014 2112 16,000 Borden Co
25
4
4 1
372 34
800 Borg Warner Corp
4
41
'354 4
10
I.
'1/4
Botany Cone Mills class A...50
*1
/
4
I.1
"13
1
.38
12
*3/
1
4 354 1,100 Briggs Manufacturing _No par
3/
1
4 3/
1
4
354 4
3/
1
4 3/
1
4
I
I
• Bid a Id asked prices: no asks on this day. x Ex-dividend. r Er-Manta
PER SHARE
Range for Year 1932
On basis of 100-share lots
Lowest
Highest
PER SHARI
Range for Pret4ous
Year 1931
Lowest
Highest
5 per share 8 per shore 5 per share 5 per share
421:June 27 874 Mar 8
/
4 Feb
64 Dec 1821
9812 Apr 14 119 Mar 11 100 Dec 128 Apr
4 June 1 18/
1
4 Jan 18
4254 Feb
1012 Dec
4'5 July 7 10 Jan 11
752 Dee
1872 Feb
12 Jan 25 165sMay 12
1114 Dec
23 Mar
312June 2
74 Jan 16
2954 Feb
We Oct
5 Mar 31
62/
1812 Jan 14
1
4 Feb
12/
1
4 Dee
55 Dec
6814 Feb
28 June 21 47 Feb 15
14 Apr 29
14June 17
4/
1
4 Jan
14 Dec
1 Apr 29
1772 Jan
84 Jan 12
112 Dec
612June 2 1512 Jan 15
38 Feb
134 Dec
4012June 17 90 Feb 18
71 Dec 124/
1
4 Mar
29/
584 Dee 129/
1
4June 27 784 Mar 8
1
4 Mar
9312June 2 129 Mar 14 115 Dec 15212 Apr
318June 2
8/
1
4 Mar 8
Co Dec
3854 Feb
88 Mar
16 June 30 13972 Mar 9
20/
1
4 Dec
5 Dec
6354 Feb
6 Jan 13
Vs Apr 22
18 June 1 3752Mar 8
30/
1
4 Dec
4852 Mar
3114 Feb
214July 8
8 Oct
6 Jan 13
11 May 28 1512June 15
16 Mar
1 May 26
Vs Dee
5 Jan 9
752 Dec
334 Feb
254 Apr 11 1012 Jan 16
511
/
4 Feb
64 Dec
914 Jan 14
2 May 31
5 May 31 384 Jan 21
20 Dec 100 Mar
234May 28 17/
10 Dec
7912 Feb
1
4 Jan 14
90 Feb
18 Dec
334Juno 1 33 Jan 18
4 Dec
10', Jan
6 Feb 17
3 May 27
1 May 31
8 Mar
214 Jan 7
1 Sept
30 Apr
472May 3 12 Jan 6
712 Dec
84 Mar
/
4 Mar 9
25 June 1 511
37 Oct
311
/
4 Feb
9 June 2 211
/
4 Mar 8
104 Oct
212June 2
28 Feb
812 Feb 19
5 Dec
118 Jan
se Jan 12
/
1
4 Jan 8
14 Dec
112 Apr 8
112 Dec
15 July
4 Feb 8
8054 Feb
34 July 1
6 Dec
912 Jan 18
19 July 5 44/
8454 Mar
1
4 Mar 7
2912 Dec
4354 Mar
1
4 Jan 14
712lune 27 22/
16 Oct
I June 9
7 Mar
11
/
4 Oct
334 Mar 9
2354 Feb
1172 Dec
6/
1
4 Jan 11
1 12Juno 1
8912 Feb
612June 2 194 Jan 14
14 Dec
1 Jan 4
1 Oct 3972 Jan
172 Jan 11
64% Feb
3 June 2 1872 Jan 13
111
/
4 Dee
1514June 30 68 Jan 14
“
12 Dee 102 Mar
10 July 6 4954 Jan 14
85 Are
35 Dec
34June 1
2114 Mar
812 Jan 8
5 Dec
14 Apr 29
1252 Feb
4 Feb 19
/
4 Dec
11
3 May 25 13 Mar 8
732 Dec
3752 Feb
1314Juue 27 22914 Mar 7
66 Feb
1914 Dec
24 Jan 21
34June 20
1/
1
4 Dec
9 Feb
Is Dec
Ds Feb
12 Jan 6
4 Apr 22
10 June 22 254 Jan 14
20 Oct
42 Jan
512May 31 18511 Jan 2
1712 Dec
5812 Feb
22 June 21 85 Jan 29
75 Dec 13812 Mar
15 July 5 55 Feb 19
1
4 Mar
45 Dee 102/
2134J une I 3452 Mar 8
4214 Mar
28 Oct
90 Jan 11
103 Mar 14
9772 Dec 11072 JuN
le Feb 15
AN Feb
4 Jan 14
le Nov
14 Feb 18
114 Jan 20
/
1
4 Dee
1112 Feb
3 May 31
3114 Feb
814 Jan 21
6 Dee
34 July 6 80 Feb 18
68 Dec 113 Feb
20 May 31 3654 Mar 8
48/
1
4 Mar
88 Dec
13 June 2 3914 Jan 13
60 Mar
8412 Oct
45 May 31 884 Jan 13
8412 Dec 10812 Mar
2/
1112 Feb
6 Jan 7
1
4 Apr 29
34 Dec
7134July 8 137/
/
4 Feb
1
4 Feb 19 Ilk', Dec 2011
4012Jtme 1 8854 Mar 9
1
4 Apr
6012 Dee 128/
44 June 1 8954 Mar 8
64 Dec 1321
/
4 Apr
95I4June 2 1104 Jan 21
96 Dec 132 May
4 June 3 25 Jan 2
19 Dec 105 Jan
1012July 6 70 Jan
72 Dec 11012 Feb
II May 26 3412 Mar
8054 Feb
2312 Dec
11 May 27 81 Mar
8054 Feb
211
/
4 Dec
26 June 2 75 Jan 1
6412 Dec 107 Mar
11
/
4May 25
1172 Jan
512 Feb 2
2/
1
4 Dec
1512 Jan 4 11072 Mar
60 July
1514 Dec
A Jan
14May 10
/
1
4 Jan 1
4 Dec
18 Feb
212May 21
2/
1
4 Dec
5 Apr
114May 25
8/
1
4 Feb
3/
1
4 Jan
24 Dec
10 June 1 23 Jan 1
1912 Dec
6512 Aug
3
@FedFRASER