Full text of Commercial and Financial Chronicle : June 20, 1946, Vol. 163, No. 4500, Section 2

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Final Edition

ESTABLISHED 1839

»vW.»-o

In 2 Sections-Section 2

ki%i*■'•X'■'•%»•':**»**&

••

Reg. XT. S. Pat. Office

Volume 163

Number 4500

New

"No Need for

Third

York, N. Y., Thursday, June 20, 1946

John

„

Hancock,

Lehman

Brothers

Asserting "it is time for third party advocates to stop kidding themselves," Secretary Wallace points out election laws make it difficult
to get a new party on ballots.
Contends third party will serve no
useful function since Democratic party already serves progressive
forces.
Hits at "brazen coalition of reactionaries of both parties/'
and urges restraint upon labor and management without "trappings
of totalitarianism.
Decries the "butchering of OPA" and calls for
continued support of the New Deal.

partner, a director of
companies in varied fields

many

industry and assistant to Ber¬

nard Baruch in his work

Amer-

here tonight as a member of the Democratic Party fighting
And I am here as a member
of the Cabinet^

for the New Deal of Franklin Roosevelt.
of

Franklin

enced

by prophets of Democratic
This is the time to fight
all the harder—in Washington as
everywhere else.

Roosevelt's

successor

Harry

defeat.

—

Tru-

;V man.
h

In recent

If there

{those

who
the

serve
cause

are

for

fight

This is

believes in

ple and

our

advocates

progress, as a peo¬

nation, to be influ-

Even

they

Action Committee, St. Louis, Mo.,

JPodd,

thinking of
1948, I believe it

were

organization. And as far as 1948
(Continued on page 3406)

14, 1946.

Washington
Ahead of the News
By CARLISLE

Keith S.

that

BARGERON

the

had

Chairman of the Executive Com¬
mittee of the Association.

Among

some

directors elected to

Beardsley
Ruml, Chairman of the Board, R.
H. Macy & Company, New1 York
City; James Tanham, Vice Presi¬
dent, The Texas Company, New
York City; Owen L. Coons, Chair¬
of

the

are:

Board,

General

Fi¬

Corporation, Chicago, 111.;
Thomas
Roy
Jones,
President,
American
Type Founders, Inc.,
Elizabeth, New Jersey; W. L. McGrath, President, Williamson
Heater Company, Cincinnati, O.;
James L. Palmer, Executive Vice
President, Marshall Field & Com(Continued

on page

3401)

GENERAL CONTENTS

Page

the

drastic bills.
screamed to

bill

undoubtedly have
fceen withholding from the mar¬
ket in the anticipation of price re¬
manufacturers

Congressmen

and

OPA

Situation...

These propagandists

high Heaven that the

passed meant in¬
disaster.
They ex¬
pressed hope, for the sake of the
country, that the Senate would be
calmer. Well, now they say the
and

Senate has passed an even more
drastic bill and one making - for
even

inflation and.
Those of us who

have
here alike there is disaster.
inflation
and
ss,
conviction that the heat has wanted
disaster,
those
of
us
evil
forces
really been put on the consumer
aloose,
in recent weeks. This heat, it is would seem ;to be sitting pretty.
believed, will be relieved when It would seem that out of the dis¬
the OPA bill is settled one way or
continued on page 3403)

newspapermen

war
merely as a struggle
dictatorship, tyranny, statism, imperialism, ruthlessness, and utter disregard of ordinary decency in inter¬

between

national relations

the

one

hand: and

the other, the

democratic conception of society and government, individual
freedom and initiative, contentment with the status
quo, a
•

sort of

Quixotic mutual consideration in world affairs, and
strictly honorable dealing one people with another. Such
wholly unrealistic conceptions of the situation, without much
question, had at least something to do with the costly part

proceedings-.

They, of course,
patriotism—
which might just as well have been
developed on .a much
sounder footing.
They can scarcely be accused of responsi¬
bility for the basic difficulties which now face the world,
but they are certainly responsible for some of the
futility
at the bottom of the fervor of the

were

and

blunders in which

have

been

war

engaged during the

past year or two.
(Continued

on page

3400)

-4* &%'■

Economic Prospects and Problems
For Post-war Reconversion Period
By MURRAY SHIELDS*
Vice-President and Economist, Bank of the Manhattan Co.

Bank economist calls for restoration of the basic incentives stimu¬

lating industry and greater productive achievement, particularly
through revitalisation of profit motive in environment of free com¬
petition. Asserting that period of radicalism is only temporary,
he concludes that unprecedented era of prosperity only awaits
government's institution of realistic and sound economic program.
My purpose in this address is to convey to you the feeling of
which I have come to have that, if we will realistically

3397

solve

Regular Features
From

c o n

Washington Ahead of the

News

3397

Moody's Bond Prices and Yields

3408

Trading on New York Exchanges...3410
NYSE Odd-Lot

Trading.............3410

Items About Banks and Trust Cos..3401

State

are

say

the House

flation

Carlisle Bargeron

for

childish to think of the

assurance

the

propagandists

producers and

Among

new

the Board of AMA

Financial

Senate, in spite of the
greatest organized pressure that
has ever been put on the legisla¬
tive branch, have passed what the

consumer

which

and

goods than he
has been get¬
ting in recent
weeks; that is
he
will ' get
the goods

lief.

McHugh, Vice President

will

consumer

tion,

that

will get more

the

retarding of produc¬
generally, no* relief is ex¬
pected. You will say that this is
surprising because both the House

'from

executive.

As to the effect which OPA has

misfortune,
will

other and

profit to that extent.

BowlesV

Mr.

chief

Editorial
the

result

aside

was

President- of We^wereTedto takein the

re]porf added,

American

chips are

jonly

the

newspaperman

finally count¬
ed, the belief
Is

man¬

Telephone and
Telegraph Company, will serve as

who believes that, after all the bitter heat
lhat has revolved around the OPA for the past several months, there
will be any worthwhile accomplishment by Congress
except the
deflation of Mr. Chester Bowles, not to be minimized, of course.
As
to any relief to the country's businessmen, none is
expected, and when
the

nance

The amazing thing in Washington tonight is that there is scarcely
a

continue

man

From

phase of

AMA since 1936, ithe

is unrealistic to expect that they
could bring about a change
in
the election laws in enough states
to build a really effective national

Board

agement in industry were named
to posts as officers and directors.

will
if

1952 instead of

by Secretary Wal¬
lace before a joint meeting of the
Iiiberal Voters League of St. Louis
jand the National Citizens Political

single

tives from every

obstacles

foy-third party
stop kidding them¬

the

ciation, it was announced on June
16, following the week-end meet¬
ing of the AMA at which execu¬

selves.

♦An address

June

put big

Chairman

new

the American Management Asso¬

So- it is -time

time for anyone who

Alvin E. Dodd

representative on the Atomic
Energy Commission of the United
Nations, was recently elected the

in its way.

;
no

party

Hancock

ican

the first

third

progressivism

liiSld^^

John

and

election laws that either outlaw

time to aban¬

the

bluntly

Childish Notions

place, it would be
impossible for a third
to get on the ballot in
enough states to make anything
approaching an effective chal¬
lenge. Too few people know that
too many states have restrictive

say

that this is

Henry A. Wallace

don

talk

let

party

—

this

Given the circumstances, strategic, psychological, and
propagandists, under which World War II was fought, it
was all but inevitable that
postwar differences and, diffi¬
culties of the sort now plaguing the nations of the earth
shoiild arise. How absurd it was to suppose that once the
"dictatorships'' had been crushed, - the chief world problem
would be keep them under control, and that any other
problems which might presently confront the remainder of
the world would yield to the selfless efforts of the "peaceloving" nations emerging victorious and all-powerful from
the long and bitter conflict. Evidently a good many had but
a poor grasp of the true state of affairs in the world in
1939,
and certainly of the history of international affairs.
X

the need

Now

simply

| found a para¬
dox

party.

third

realistically.

ress and who,
of late, think
they have

H position
these
I

talk about

for

analyze

of prog¬

weeks, there has been

considerable

Copy

To Head ASIA

Secretary of Commerce

Hancock and Qodd

Party"

By HON. HENRY A. WALLACE*

;

Price 60 Cents

General

Review.

problems,
face

i. 3399

potentialities. The progress of re¬
conversion has been seriously de¬
layed by a breakdown in our ma¬
chinery for handling labor dis¬
putes, the costrprice; structure, is
badly unbalanced in certain areas,

oppor¬

tunity to

ex¬

pand

produc¬

tion,

increase
income,

and

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

his¬

toric

real

Trade

re-

our

version

raise

standard

and there is an unfortunate

ten¬

dency in some quarters', to be
compromisingly ; demanding

the
of

gardless

un¬
re¬

of the difficulties which

Commodity Prices, Domestic Index.3409

this

Weekly

ments of the economy. We are in
a critical period and it is not at
all certain that we shall succeed

living of our
Carloadings..,.....3411 people. I do
Weekly Engine
3408 not : want
to
.

Paperboard Industry Statistics.,..34U

minimize

Weekly Lumber Movement...,...

present

V. .3411

our

culties, for
Coke Output......3406 rarely
have

Weekly /Steel Review.

;.3404

the social and

Murray Shields
.

Moody's Daily Commodity Index....3408

political factors been

Weekly Crude Oil Production...., .'.3409

able to the full realization of the

Non-Ferrous

Metals

Weekly Electric

Latest Summary of Copper
■;

JStatistic3;...

Bank Debits for

unfavor¬

Market........3410

Qutput.....3407

impose

other

seg¬

diffi¬

Fertilizer Association Price Index...3408

Wefekly Coal and

may

solving our immediate probr
lems promptly enough to prevent
a
reconversion' slump involving
considerable
readjustments' es¬
pecially in those areas where in¬

flationary

pressures

have

been

most evident. There is a risk that

^An address by Mr. Shields be¬ if
fore

the

Controllers'

\"I, ;3408 Convention,
May.........,,....3409 1946.

Chicago,
.

Congress
June 19,

threatened with wave
of strikes, business
confidence ^ will, be; ^undermined,
X
(Continued on page 3404)
*
we

after

„

are

wave1

THE COMMERCIAL & FINANCIAL CHRONICLE

339a

Manufacturers Seek

From Moscow?
"In Brazil

well

in the thirty-seven

countries I have visited, wherever

and this is in most of them, that press
J has attacked this effort to provide food for the

against cost uncer¬
being
increasingly
sought by manufacturers by
means
of
price-adjustment
or

hungry :wdrking^ people of the
world, alleging the food was to be
purposes.

form

that

trying to
take food from the people, when
our
only purpose is to provide *
food. The unity of the opposition.
is interesting because the Com¬
munist pr.ess is aware that the
Christian world today is denying
we

are

Manufacturers

control

both

abnormal

and

pressures

costs.

Mr.

suggests, in a desire to fish in troubled
waters, it would be difficult to guess where it
does lie. What one would like particularly to know
in the

degree in which such behavior is inspired in
Moscow, if not directed from that center.

case.

some

industries

the

says

Board's announcement, the stand¬
ard

practice is to break up longterm supply contracts into short,
term contracts for pricing pur¬
poses, with review toward the
close of each quarter. Still other
r
Profit sharing is not the panacea for labor unrest that its advo¬ clauses provide for increased
cates would have us believe, in view of the experience of 161 such prices to cover advances in ma¬
terial costs and wage rates over
plans, according to a recent survey made by the National Industrial
those in effect on the date of
Conference Board.

fjfef Profit Sharing Plans Have Been
Abandoned Says

Conference Board

which were issued on June 15, quotation, advances in total manu¬
Chow that out of a total of 161 true profit-sharing plans, 60%, were facturing costs, increased cost of
an important raw material, and,
Chandoned. More than a quarter &
in
a
few
instances,
increased
cf the discontinuances were the Gamble Company, of Sears, Roe¬
result of employer or employee buck and Company, and of the taxes or freight rates.
Jewel
Tea
Company, are all of 7 A "formula" type of clause, re¬
dissatisfaction, while 36% were
Cropped because there were no this type. This type of plan, how¬ lating prices to certain recognized
profits to share or the company ever, probably will not meet the indexes of material and labor
current demands of labor.
had
costs, avoids many potential ad¬
gone
out of business
or
changed hands.
Success of profit-sharing plans ministrative problems but is diffi¬
Results

■

the

Board's

survey,

Reasons for employer and

em¬

ployee dissatisfaction with profit
charing, as shown by the analysis,
the
Board's
report said,
arose
mostly from the employees' lack
iof understanding of the principles
Involved and their inability to
comprehend the influence of the
business cycle on profits. "The
profit-sharing
plan
apparently
works fairly well as long as, the
company prospers, but dissatis¬
faction arises when profits dimin¬
ish or disappear."
'

Profit

according to the study,

depends,

the presence of certain basic
conditions. "One such condition is
on

that the wage scale in

the

Some ' of

the

most

successful

plans, says the report of the Con¬
ference Board's analysis, provide
for accumulation of the money in

eventual

success

failure is the;

enterprise.
From 1936 to 1939, 50% of the
firms reporting to the Bureau of
profitableness

the

Interior Aides Get Posts
C. Girard Davidson of Oregon
Warner W. Gardner of New

and

York,
ant

the employee until retirement or
In the event of an emergency.

Mr.

fund

es e

deferred-distributions

plans, as they are termed, have
been of considerable value in aid¬
ing employees to accumulate large
of money," the study dedares. The plans of Proctor

turns

June 14 received Senate

confirmation for posts as Assist¬
Secretaries of the Interior.

which is not available to

draft

and

not

very

war years.

til if is made available to him.

the com¬
pany contemplating profit sharing
should equal or exceed the going of considerable error in determin¬
rate of the community for similar ing labor costs of a specific plant.
As to protection of the buyer,
tasks. It should be impressed upon
The Conference Board's survey
the worker that the supplemental
finds*
that suppliers generally are
bonus depends upon profits and
is in no respect a part of wages." agreeing to cancellation clauses,
Another factor influencing the although the buyer may be liable

sharing, though not a new
developed rapidly through
Because of the tax Internal Revenue showed no tax¬
advantages possible under an ap¬ able income. This, according to
proved trusteed plan, an employer the study, "greatly limits the field
iii the excess-profits tax brackets of application of profit sharing."
could give employees a share in Either the profits must be large or
profits without much loss in in¬ the eligibility requirements re¬
come.
Another advantage of stricted so that the profits for
trusteed plans is that the con¬ each
participant
represent
an
tribution is not considered tax¬ adequate sum for each.
able income to the employee un¬
Idea,

cult

widely employed. Adjustment to
material costs has been relatively
simple, but a broad index of aver¬
age earnings holds the possibility

Davidson

succeeds

Oscar

for actual material and labor costs

certain

unstipulated cancella¬
tion charges. While some execu¬
or

that

sources

supply.

Oscar K. Mennenger, on June
named Executive Manager of
the California Bankers Associa¬

tion

succeeding to the post, Lauder
W^Hodges who resigned on June J
.

Mr-. JVIeniiengetv

a«ordm^r to
"Times" from

the? Los

which this information is learned,
has been Assistant Manager of the

became

Association since 1941, when he
left the Federal Reserve Bank of

Bureau.

President

Truman

sent

the nominations to the Senate on

June 10. *

ment

native citizen and that there

are

besides

deportation "for
dealing with those who are dis¬
loyal."
2. That the
under the

statutory work-week
wage-hour act includes

merely the time an employee
spends at productive work, but

"all

time

during which an em¬
ployee is necessarily required to
be on the employer's premises,"
or
on
duty, and that such time
must be paid for. The ruling in¬
volved1 the Mt. Clemens (Mich.)
Pottery Company, whose plant
covers eight acres and is about a
quarter of a mile long, with the
employees entrance in one corner.
The employees punched the clock

Angeles

Court

preme

it.

vacate

Hence

denial.

the

The

stay

order continues in effect.

States

opposing the ICC order
York, New Jersey,
Delaware,
Pennsylvania,
Mary¬
land,
Ohio,
Indiana,
Michigan
New

were

and Wisconsin.

In another action, the Supreme
refused to review a $500,-

Court

000,000 debt-adjustment plan pre¬
pared for Baltimore & Ohio Rail¬
road.

The review

asked by Ran¬

was

dolph Phillips, a New York finan¬
cial consultant, and a B. & O.
bondholder. During the conclud¬
ing session individual dissents of
the Supreme Court are
reported
to have reached a new

interval they changed clothes and
walked to their places. Associate

high of 28
term, Justice Felix Frank¬
furter leading with eight. In ma¬
jority opinions, dissents and con¬
currences,
31
documents
were

Justices

submitted

there fourteen minutes before the
time

their

for

shift,

Harold

which

Burton

and

Felix

Frankfurter,
dissenting,
wrote that unusual working con¬
ditions

should

count

taken

arranging

into

for the

through bargaining, but that Con¬
meant

gress
cover

tween
time

the

work-week

from

"whistle

whistle."
In the Illinois

three

redisricting

Illinois residents

case,

sought to

force

remapping of that state's
Congressional districts. They
asked the Supreme Court to in¬
validate the Illinois Apportion¬
ment Act of 1901, saying the pres¬
ent set-up gives downstate resi¬
dents greater voting power than
those in Chicago and Cook County.
The majority
Supreme Court
opinion, delivered by Justice
Frankfurter, said the action asked
of the court "is beyond its com¬
petence

effective

"the

It held that
working of our

grant."

Government revealed this issue to

peculiarly political nature
therefore, not meant for judi¬
cial determination."
be of

and

If the court should rule out the
1901

apportionment of Illinois, it
said, the state's twenty-six Con¬

then

gressmen

all

would

elected from the state at large and

"defeat the vital po¬

would

this

principle which led Con¬
gress more than 100 years ago to
require districting.
litical

upon

its

powers,

the

remedy

the

people."

Associate
William

whereby

ultimately lies with

of
?

aggregate

Supreme Court

Although

individual

senators

and congressmen expressed opin¬
ions that the matter called for in¬

vestigation, the personal differ¬
appearing to exist between

ences

Associate

Justices

Jackson

and

Black,

according to a statement
made by the former to the Senate!
House Judiciary Committee^
cable from Nuremberg, Ger¬
many, were not likely to receive
formal inquiry after members of

and

the

committees

met

for

discuss

sioft. There

was no indication that
the Senate committee would con¬
sider the subject at least until

Justice

Jackson

returns

the

United

States which may not be
until October.
On

June 13, the House Judici¬
Committee, meeting in execu¬
tive session, decided, according to
Associated Press Washington ad¬
vices, that it did not have suffi¬
cient evidence to take any actiod
in
the
controversy.
Chairman
ary

Hatton
stated

Sumners

that there

mination at
duct

the

was

(D.-Tex.)
"no

deter¬

moment to

investigation."

con--

Adding

that although something might be

shaping

up, nothing received thus
far indicated committee jurisdic¬

tion.

Swiss Pact

Completed;
-m,

Paul Resigns

Randolph Paul, former Treasury
tax
as

expert, resigned on June 12
special assistant to President

Truman in
ment

negotiating

agree¬

between the Swiss and Al¬

Justices Hugo Black,

lied Governments in the matter of

Frank

disposing of German external as¬
sets in Switzerland. Mr. Paul rep*

Douglas

and

Murphy dissented. Their opinion,
written by Justice Black, was that
the old districting law is now un¬
fair and thus violates rights of
citizens which courts should up¬
hold.

only the working hours be¬
"starting" and "quitting"

—

with

132,500 words.

ac¬

rates

pay

standards of fairness are offended,

was

court

ized citizen should be treated like
a

exercising

To Head California Bankers

May

special three-judged Fed¬
in Utica, N. Y. The
court at the same time granted a
sixty-day stay for the filing of
appeals in the Supreme Coui't.
J
The Government appealed from
this stay order, asking the Su¬
by

eral

high tribunal rejected that request
today with a simple announce¬

Congress exclusive authority
to secure fair representation by
the states in the popular House
and left to that House determina¬
tion whether states have fulfilled
their responsibility," the opinion
continued. "If Congress failed in

value, there was agreement that
such rights should be obtained
where possible, since market con¬
ditions might result in new

10% reduction in the South*

Nine states and thirty-three rail-1
roads
opposed
the
ICC
order

thirty,
obtained citizenship in 1937 and
allegedly engaged in Nazi activi¬
ties here. Associate Justices Wiley
B. Ledge and Frank Murphy dis¬
sented, holding that the natural¬

"The Constitution has conferred

need

Secretary, while Mr. Gardner re¬
places Michael W. Straus, who
of the Reclamation

Ger¬

from

age of

for

the

Chapman; recently made Under

head

supplies and equipment is so ur¬
gent at the present time that can¬
cellation rights are of doubtful

tives

believe

here

came

in 1925 at the

fears

that

takes

who

can

who

man

many

not

For controlled commodities, the
type of protection clause is largely
determined by OPA rules and
control, and OPA has generally
premitted "adjustable pricing" up
to time of delivery. Requests for
retroactive adjustment, that
is,
after delivery, are strictly con¬
trolled and are-decided case by

Hoover

less

without separate authorization.

of it."—Herbert Hoover.
as

have

authorization, and he cannot pass
on officially authorized increases
in
the prices of his materials

feeding Communists in all countries

explanation is not to be found,

that

out

will result in
Since most goods
are still under price control, he
cannot adjust his prices to re¬
flect cost changes without OPA

signed by the highest officials of the Russian

the

points

and

alien

be canceled. The
ruling was in the case of Paul
Knauer, Milwaukee insuranee

methods

higher

and always have done so, there obviously has been
lio use of food for political purposes or no intent to
If

wage

normal

Government.

use

the Board

1. That

rates, labor costs and
material prices than in prewar
days, while the spread between
demand
and
supply is unpre¬
cedented. The manufacture today
over

the most fulsome documents of thanks and appre¬

make such

issued by

in integral part of all business
operations, because commitments
must be made for future periods
containing many unknowns, the
present situation is abnormal in
ways never experienced
before.

because after the first
World War, at the request of the Soviet Govern¬
ment, I organized relief for the great famine among
the working people of South Russia and received

was

are

by our action.
"It is still more interesting

we are

in suits which were dismissed

citizenship

The. analysis

saved

"As

naturalization oath "with reserva¬
tions" is guilty of "deceit" and his

while risks and cost uncertainties

people there are millions of Communists who
have received their full share and whose lives were

ciation

Associated Press:

hundred ^business executives made

June 17.

these

thicket", of
unchanged
forty-five years in spite oi> ———
—
large population shifts.
changing Class I railroad .freight
In a pair of 5 to 2 decisions, the rates. The ICC directed a 10%
Court also ruled, according to the increase in the North and East
for

firm-price periods, ac¬
cording to a survey of some four

which

ing people of France, Belgium,
Italy, Poland, Yugoslavia and
twenty other countries may be
saved from starvation.
Among

the ballot box, stating its refusal to enter the "political
Illinois' Congressional district set-up which has remained

shorter

by the National Industrial Con¬
ference. Board,' the report v on

itself food in order that the work¬

Herbert Hoover

escalator clauses in contracts and

"In Latin America it also takes
the

Press Washington advices stated.
In one 4 to 3 ruling, the Court told
citizens complaining of unfair representation in Congress to resort to

Protection

tainties

JSuprema Court Ends Term

The Supreme Court, on the final day of its spring term, handed
down 14 decisions in a five-hour session on June 10, Associated1

Protection Against
Cost Uncertainties

other

there is a Com-

munist press,

f used for political

Thursday, June 20, 1946

»'

•,

resented the United States in the

completion
of
the
transaction,
is subject to approval by

which

the Swiss parliament.
The President inf

accepting"-iff#*

The" same-day* the Court re-¬ Paul's resignation with reluc-:
the Associated Press re¬ tance/ recognized, according»to,
Associated Press Washington ad¬
ported, to issue an order making
San.Francisco. after having served effective immediately an Inter¬ vices, the latter's desire to return
;•
state- Commerce (^mmissidh order id,private^ law practice*'• /,
4-

fused,

,'jf

■

tVolume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4500

New Bank

Analysis
Manual Issued by ABA
To aid the thousands ol banks
which intend to enter the field
of

t i/
The trend of industrial production last week was slow but again
pursued its upward course. Unbalance of inventories was a factor in
many industries

consumer' instalment

Consumer, Credit

shortages of supplies and work stoppages held up
the completion of items. The picture in the future in this respect still
as

remains shrouded in
as

uncertainty,, since

week,

while

initial

Claims fell 42%. Steel production
the second consecutive

week, reaching a level last week
equivalent to that immediately

pnder
ago.

the

coal

strike

and

18%

like period one year
Most
mills,
many .weeks
on

cepting

deliveries,

orders

for

were not oc-

1947.

There

was, however, some slight increase
in total orders for the week.

Shortages of copper continue to
manufacture of wires,
cables, motors and transformers
and thus interfered

with produc¬
tion of electrical appliances,
1
A slight increase of 1.4% was

cars

and trucks

in the week ending June 8. Several

For

the

year

date total motor vehicle production

approximated % that for the like

period in 1941.
t

Lumber

shipments
and
new
Orders for the week ending June
1 were 1.7 and 8.6% respectively
below
production, while paper
output continued to slowly de¬
crease and for the week ending
June 1 the mills were operating
at 96.3% of capacity. In the week

and

reduced to simple mathematics so
raised that> any bank may substitute its

could

have

their

own

past week which

answers

consumers

r In the shoe industry output was
somewhat restricted the past week

whether

plants closed down be¬
cause
of a shortage of cutting
rooms, while total production in
the textile field remained high
and orders covered periods well
in the future.
On Monday of the present week
OPA put into effect retail

the

jprice increases of 11 cents a pound
pound for
Cheddar cheese. Ten days ago the
a

granted an increase of one
cent a quart in the cost of milk.
agency
In

effort

stimulate

divided

are

figures and may obtain the
without making elaborate

computations.
"The

the

opportunity for profits in

consumer

credit field has

taken, ♦for final action by'
session. Those in

Senate Passes Bill

ter

fact, has been overempha¬
sized in many instances), but the
have

costs

"In

times

been

over¬

order

determine

proper

charges and rates, it is necessary
know the contributory factors
influencing the charges. It is the
purpose of this manual to furnish
data that will give bankers some

minds

idea of these elements and to out¬

increased

the ultimate gain in
the total supply of material to be

in-

The

establishment for the first time of

OPA

last

week

took

Steel

the

would

previous and continued to be well
above that of the corresponding
•week a year ago. Larger quantities
of durable goods were arriving in
many stores and helped maintain
rretail volume at high levels. Pur•chrases of Father's Day gifts were
:iiumerous.- In the case of- food
:sales, this week was only slightly
.-above that of the preceding week,
tbut was moderately above that of

amounted to

•

houses.

Wages and Honrs
hours

week

ment- is that it enables the United

upper

States- to control the water level
of the canal in emergencies with¬
out

average

hourly earnings for

earners

in the iron and steel in¬

strike, and; because of the
trend toward the elimination of
overtime, according to the Amer¬
ican

Iron

and

Steel

which further reports:
In

emergency came in the recent
coal strike-when the volume of

•

increased

substitute power.

produce

•

Among

features

many

transfer

New

York

the

resolution- is authorization

of the

State

waterway power facilities.

made by the
in its report,

that

the

figures,

Majority Committee
in which it asserted

waterway is- now
completed, whereas, based

90%
upon

submitted vby rthe
United States Army Engineers it
is disclosed that while $310,000,-

000 will be

required of the United
complete- the project,
only $31,000,000 has been spent by
this
country for
improvements
which
are
considered
integral
States

parts of the waterway; in other
words, says the Senator in terms
of cost the

waterway is only 10%

completed.
Senator

The
less

10%

than

pointed
the

out1 that
American

merchant marine
the

ships could
when loaded.

waterway

the world

fleet

vessels

use

which

might conce;vably use the water¬
72% are under, foreign flag
and 28% are American ships.
(Previous

reference

the

St.

April,

wage

2978.)

Moved la
Due

banks

summer

T^day

the

closing of many
Saturday, during the
months, Allan Sproul,

President of the Federal Reserve

Institute,, Bank of New York announced

earners

worked

average of 37.2 hours per

June 17, that beginning June 27,
the last day of the weekly com¬

•

?■ Average
number-of employees
during April was 581,800,- com¬

putation

period will be. moved
ahead from Friday to Thursday;
This
ruling,
Mr.
Sproul
said,
which has already been approved
by the Board of Governors, will
r

affect

City

those; banks

proper,- as

Buffalo

and

well

others

New York
as

who

those in
are

re¬

quired to make this weekly report

-corresponding week a year
The action of the; Civilan Pro¬ pared with 570,500-during March. covering demand and time
depos¬
;ago. T
■"?- '"v.'
-:
V '.' 41^ duction Administration- in institut¬ The fact that temporary layoffs its./ r
^ ■ v.
- /•
/: wholesale dollar volume . re, ing
a
self-certification ' system' were necessary - at some- plants
]; Mr. Sproul stated that this new
tthained high, last -week- and was which' will • give
preference - to- had no effect- upon the April em¬ revised form is being" sent to the
well above that of a week ago housing, agricultural and^ ware¬
ployment-figure, for the laid-off banks. The alternation of these
and
a
year
ago.
Many more house needs; the "Iron Age" points workers- were- still kept on the
•fhe

•

buyers were seen in, the • ap¬
parel markets last - week and a
large
number of orders- were
placed for Fall clothing... with
greater emphasis on quality. Re¬
.

1. Reduction of the number of
Senate standing committees from
thirty-three to fifteen to lighten
the work load of lawmakers. 2. Increase in Congressional sal-*
aries: from

$10,000

year.
3. Expansion of

technical

and

sistance.

Each

$15,000

administrative
-

the lawmakers?

Committee

as¬

would

get four "experts" and each law-*
maker an i $8,000-a-year adminis-"
trative assistant. - ' r
/ ■
4. Creation of a pension sys*
,

tern

which

ber

would

allow

a-mem¬

Congress •„ to. contribute
voluntarily to "the Government's

retirement fund. He would have
to pay in 5% of his salary for at
least five years, serve six years
in Congress, and be 62 years old
before becoming eligible.
% &- \ 5. Elimination of many of Con¬

gress's routine tasks, such as the
necessity of acting on each dam¬
age claim against the Government
and .on each proposal to build a
bridge across a navigable streamy
6. Tightening of fiscal controls
by requiring Congress to go ore
record in favor of

increase

the national debt each time

in,

esti¬

mated

appropriations are. above,
anticipated income for the next
fiscal year.

....

■ /

Italy Becomes Republic
As a result of the general elec-

tion, Italy was declared a republic,
June 10 and the monarchy dlsK

solved, United Press Rome disr
patches stated; adding that - the
declaration was subject to final
ruling oathe results of the plebes^
cite oh June 18 by the Supreme
Court. King Humbert at first re¬
fused to relinguish his throne un¬
til the Court had made formal,

proclamation," but onl June 13 As-,
sociated Press advices from Rome

stated that he had left Italy fox*
exile in Portugal according : to a
-

Palace

anouncement. The.
Queen and their children had pre¬

ceded

him

into

exile

soon

the/result's of: the election -were,
known.. '
.

Rome

advices from

the Asso¬
ciated Press also reported on June
13
that the
Italian Council of

Ministers, in

order of the day,

had authorized Premier Aleide da

Gasperi to assume the power of
provisional chief of state; Accord¬
ing to the order, the cabinet posi¬
tion is that Signor de Gasperi
<
automatically becomes chief of
procedures,
the
reserve's
an¬
state * upon the Supreme Court's
out; * is " expected to alleviate; the payrolls,
< ""*
nouncement continued; will .give announcement of a Republican
tights 'Situation^ inV theses fields.- 4 The industry's - total payroll for
;banks a chance to adjust their^re^ majority in the referendum. Mon¬
Whether or not the farm ma¬
April was $134,347,800. In March, 'serve, positions on Friday, espe¬ archist charges of irregularity in
chinery field will benefit rests up- a 'longer month than
April,' the cially when the end of the Thurs¬ the voting have still to be passed
(Continued on page 3407)
total payroll was $138,756,100.
day period is reported as a deficit. bni however, by. the Court,
.

Following

are the. major" pro*
as passed by the
chamber, according to the
Associated press:
.

shortage jn ,the.
-'

in# negotiations

wage

week,
compared - with' 27.9 im March..
Average hourly earnings of - wage
the current nail shortage.
Bale earners during April was 134.1
ties were .boosted $4 a ton, and cents
per hour.
In Marph, the
this action is expected to step up average-wage, was 135.1-cents
per
production and.to some-extent-re-- hour.

agricultural regions.

losing; time

with Canada. An example of such

and

miners'

Although
it
ton it was. at

approval would be achieved in
view of the satisfying, results in
the Senate.
visions of the bill

"Chronicle", May 30,
per

dustry dropped slightly during*
April,, as a result of temporary
layoffs necessitated at some plants
during the first month of the coal

$10 a
least $5 less than the industry had
insisted
would
be
required to
bring enough nail capacity back
into production in order to relieve

lieve k: serious

Lake

Lawrence project appeared in the

■

tion

from

way,

Average

and
commercial users; brought 1, but the latest order wipes out
this increase and replaces it with
cinder price control for the first
advance.
Customers .who
time all bulk sales of commercial¬ 8.2%
have received shipments of alloy
ly-separated cream and sales of
steels. at the old prices will be
farm-separated cream so sold by
billed for the difference retroac¬
any seller other, than a farmer.
tive to Feb. 15.
Sales' by a cream station to a.
The increase in nails, the Gov¬
Sautter manufacturer are exempt,
f Retail
volume the past week ernment hopes, will spur produc¬

slightly exceeded that of the week

diverted

Michigan into the-Illinois canal.
The significance of this amend¬

price ceilings on jmilk bought from long-delayed price action on alloy
milk producers by dairy products steels, nails and bale ties. Alloy
manufacturers and by industrial steels were advanced 4% on Mar.

Senator White, in his minority
report;
criticizes the statement

and understated.

looked

the sole discretion of the United
States the volume of water which

rer

Reived wide publicity (as a mat¬

Creased production of butter the obtained.
OPA put into immediate effect the

■

water* was

price would line a
practical procedure
for
material. Some steel
making a cost survey.
producers are not opposing the
"Four cost factors are common
plea for a moderate scrap price
to each instalment loan: (1) the
rise and others would be willing
cost per loan;
to pay more for scrap without re¬ basic. acquisition
(2) the liquidation cost per instal¬
course
to an increase in steel
ment; (3) the basic liquidation
prices, provided additional scrap
cost per loan, and (4) the persupplies could be obtained, states
dollar cost."
the magazine.
The manual presents in detail
Intensive scouting efforts thus
methods by which each bank can
far have revealed little scrap to
determine its correet cost in each
be purchased at any
price. Past of
the four elements quoted above.
scrap drives leaves doubt in some
bring in

some

for butter and 6 cents

come

Reorganizing Congress

the resumption of blast furnace

operation

ago.

: r.

would

of Instalment.

ingot output to a point the
might have seen
the industry
back to pre-coalstrike activity. Major attention in the industry
is now being focused on the scrap
Ending June 8 there was an in¬ supply situation. Only limited
crease of 15% with new orders amounts of production scrap from
Up 31%
and unfiled orders by manufacturing plants have reach¬
4.3%.
ed steel mills, the magazine states,Meat production under Federal and efforts
to bring in so-called
Inspection rose to 209,000,000 lbs country scrap from remote points
for the weqk
are
etid|ng June 8- This
meeting with little success.
was 10% above the figure in the
The question of increasing scrap
previous week and 27% under price ceilings is coming to a head,
that of the like week one year but the scrap trade and industry

way, on which the vote was

en¬

bank does not complete its own
producing centers has al¬
department's cost analyses.
ready held the brakes on higher
"An attempt has been made to
production during the recovery
period. Had ample scrap supplies allocate all expenses as logically
been
available, steel producers as possible, while, keeping the
would not have been forced to procedure simple.
The formulas
place such complete dependency used in the illustrations have been

the work week because of mate¬

shortages.

manual

steel

plants closed and others shortened
rial

Foreign Relations Committee-on June 5,

Impede the

noted in output

has published

Associa¬

ceived approval of the Senate

special advices from- Washington to the New York ''Times"*
stated*
adding, however, that there was little likelihood that the resolution
embodying domestic as well as treaty-makings aspects of the water¬

the

behind

tion

Bankers

Approves Seaway Agreement

The agreement between the United States and Canada
for the *
completion of the St. Lawrence Waterway and Power Project re¬
>

rose, for

before

American

Senate Committee

Congress, this
titled, "Analyzing the Cost Factors
the minority of the 14 to 7 vote
Lending.". The new
included
the, three
—
Republican
manual will be* made available to
Senators from New England,
ports
from
wholesale •• grocery
member banks upon
request.,
houses reflected an appreciable
A bill to reorganize Congress
Minority Leader Wallace H.
1 The, announcement on June 13 White
increase in food volume
above
of Maine, Warren R. Austin sional machinery and at the same
of the issuance, of the' new
mapual of Vermont ahd Styles Bridges of time raise the legislators' salaries
that of the same week a year ago.
by the ABA continued: *
by 50%, plus pension privileges,
New Hampshire.,^
Steel Industry—Surpassing even
J.
"In
the
In a minority * report filed by was approved by the Senate, 49 to
preparation
of
this
the most optimistic
predictions
the ; manual
says,
"the Senator White and released on 16, on June 11, after four days of
made for steel recovery, the in¬ study,"
Committee on Consumer Credit of May 28, the
Senator,'among other such- acrimonious debate that the
dustry last week raised its ingot
the American Bankers
Associa¬ things, took strong exception to quick passage which came whe»
rate 20.5 points to 77.5% of rated
tion has developed a practical
the measure was submitted to a
pro¬ the action of the sub-committee in
capacity.
Thus from a low of
cedure which may be used by a approving the method intended to vote was almost a complete sur¬
44.5% during the last week of the
bank interest
be
used
in
ratifying the agree¬ prise even to the bill's sponsors*
in.making a cost
coal strike, the raw steel rate has
ment. The Senator contended that The legislation was, sent to the
climbed 33 points in two weeks. study of its consumer credit de¬
the
partment
Constitution
operations.
One
ob¬
requires ratifica¬ House, ahd although no plans
Indications are that unless scrap
jective was to set forth the cost tion in the form of a treaty sub¬ have yet t been made ,for its con¬
shortages interfere, the rate this
factors
ject
to
approval
involved,
with
figures
and
by two-thirds of sideration there, the hope was ex¬
week may bound beyond 85% of
conclusions that would give banks the Senate.
pressed by Representative Mon->
capacity, according to the "Iron
a
The: committee • approved, the rbney / (D*Okla.)v4 one rof
picture of the costs and the
Age,"
national
metalworking
profit factors of the instalment "Times" d i s p a t c h stated, an drafters ol the bill, Washington
paper.
loan business.
This study should amendment
by
Senator
Lucas Associated press advices stated",
The critical scrap shortage at
be
informative
even
though a (D.-Ill.), which would leave to that quick and final, Congressional
the larger midwestern and eastern

total unemployment compensation
claims declined by 14% from the

the

satisfactory approach has

yet been made in the settlement of labor problems.
the week ending June 1,*"

For

■c

lending, the

Committee

3399

•

■

*-A"<■

/sm

T-'y*

\:.i

■

THE COMMERCIAL & FINANCIAL CHRONICLE

■

,SV*

'/!

' I

•

Thursday, June 20, 1946

itittuffitii
i'i.

',:

sions.
•n

The

recent decades

-I'1

(Continued from first page);V*f

better

ternal

which the world is faced to¬

day

are

essential to real prog¬

full realization that our

any

have

rate,
of

none

unsecured word

own

tigations

our

about

our

In such respects of the
record, and that record,
these, then, Russia is today of
course, consists not of what

less

^mgsrif Was

outdone
of his satel-

alone

inay w^ll have learned from

ttlenm biJ Stalin. If there was
any "ideological" issue be¬
tween

Germany and Russia, it
had. nothing to do with such
concepts or practices as these,
/$#-W

?*-i

No Reason for Panic

feel

if it

war

temporary

allies),--.only

•••:

something find at the end not some
new or newly discovered. Nor
"brave, new world" about
is there any basis for panic, which we have been told so
as

were

it is true of

course

that the many

of Russia and her al¬

the

iajry stories, but much

old^ universe, beset
lies, and doubtless the really by much the isame old prob¬
success

remarkable

record

that

same

lems.

Americans have

Country in the war now hap¬
pily ove? appear to have given world, war seldom settles
a .decided
fillip to the plain, anything. It has not done so
so

d-fas h i o n e d

imperialism,
poli¬
tics?. by that country.
His¬
torically, however, there usu¬
ally has been at least one coun¬
try," and often more than one,
on. the scene with imperial¬
istic ambitions, and not infre¬
quently at least one which
took aa little pains to conceal
it. '• The identity of the actors
changes but the play remains
and to

blunt,

much the

turies roll

crass power

same

the

cen¬

on.

cash

property.

the

same

old

often said to the rest of the

this time. We should not have

expected it to- do any such
thing. We shall have now to
go about living, in the same
old world, doing the best we
know

how

stances

the

circum¬

-they arise. And we
ourselves a good
deal if we refrain steadily
from expecting or even hop¬
ing that by some • sort |of.
shall

save

has

received

Kenneth

from

Royall, Acting Secretary of War,

income

from

vested

fully

the

against

war

Axis,

much credit is due those members

date

properties will be distributed

the Office, and $4,000,000 of Ital¬

the American

banking system
which participated in the financ¬

cluding interest in 15 business en¬

ing system producers of

terprises."

were

able
.

through private banking sources.
By
the
prompt and whole¬
hearted cooperation of the bank-i

...

availablevto American citizens

credit which could best be put at
the
command
of
contractors

ian and Austrian property to be
retained in its present form, in¬

Patents seized from enemy na¬
tionals
by
the: Custodian
are

U, S, Seizures of

Rathje, President of
ABA, the report further said,

trusts from which cash and other

further

planet.

June 17.

ing of war contractors. This fi¬
"The
present status
of this nancing, which made possible the
property with respect to sales and production of vast supplies of war
liquidations is as follows: $100,000,- materials, included credit accom¬
000 of property to be sold, includ¬ modation to contractors of
every
ing interests in 59 business enter¬ type and size through both ordi¬
prises; $52,000,000 of property to nary and Government guaranteed
be liquidated, including interests loans. The banks offered their fa¬
in 299 business enterprises; $34,- cilities
freely and made available
000,000 of interests in estates and a vast and essential supply of

world, but

Frank

the

There remains as of
$190,000,000 of vested
property in non-liquid form," Mr.
Markham's report stated. ,•

this

should act

sold

happened

patriotic service,
Bankers

their

for

announced the American

"As of June

history has been fought and
But this has always been won
by us and our allies
true. There is no reason why (some of them doubtless only
the rest1 of

—

Association

royalty - free,
non ~ exclusive
questions must inevitably basis, Mr. Markham said.
As of
valid basis for panic—even in arise in
foreign minds. Such June 30, 1945, the Office has is¬
the face of the atomic bomb.
sued licenses covering 7,343 dif¬
things are important not only
ferent patents and patent applica¬
Apart from the implications for what they are but for
tions. Exhibits were held through¬
of this latter device, which as what
other nations see in out the United States to interest
them.
We
businessmen in the patents and a
live
not
in
some
yet are far from clear and
series of abstracts of the patents
new or different
certain, all that has

is that the most terrible

Nothing New

character

supplies of war materials
equipment have been com¬
mended by the U. S. War DepartLand

ment

gions—whether or not our
motives are really only defen¬
sive

But all this constitutes

in credit to finance the production
of vast

30,1.1945, the Office a letter of appreciation and com¬
liquidated approxi¬ mendation, which is as follows: >.
mately $39,000,000 of vested prop¬
In mobilizing the resources of
erty and has collected $13,000,000 the
nation for prosecuting success¬

the

progress

As of June 30, 1945, Mr. Mark¬
ham said, vested interests in 19

has

surrounded

unrelated.;:;

never

by jjitl^i:: or any
.htes; Indeed, as regards some
•of fhem,'the German Fuehrer

—

still In

which provided billions of dollars

control.^ Many inves¬

are

The federally and state chart¬
ered banks of the United States

German, ownership
of
property which has been cloaked.

we are constantly
saying but
by peo¬ of what we have been
doing
ples and governments natur¬ and what we
today are doing
ally out of sympathy with or
apparently doing.
much of the "grabbing" that
It is naturally not easy for
ists; why we should either appears to be on the Russian
foreign statesmen to disasso¬
close our eyes to the facts or agenda.
This is a fact which ciate our insistence
upon hav¬
^
to us stands
out
in
much
hysterical' about
ing a say in many distant
Jthemuv The Russian Govern¬ clearer and bolder relief than
parts of the world from what
ment has all along been the the picture that nation itself
is commonly known as im¬
is so fond of painting for the
perialism. Such outward forms
study — namely a have been characteristic of im¬
ness, disregard of and even world to
contempt for individual lib- communistic country wholly
perialism since the modern
^.ty/Ofwile-' in international surrounded by a world of world began. That we should
express it inild- capitalistic countries — al¬ not for a moment
forget. As
■'■■§$$£&&&■ in its' own way im¬ though to the Russian mind we reach out for more and
the two may not be altogether
perialism. In all of these
more
"bases" in distant re-;

world

enterprises have been
sold, while 291 enterprises are be¬
ing liquidatedv J" ?
->l

scrutiny;

conception of perialism.

regime. The rec¬
ord :has always been there for
ua to read, and reference to
it can scarcely leave us under
•misconception .as to the true
stafe of iaffairs. No reason ex¬

subject to

business

Our

the Russian

APC's

Custodian's

world ambitions^ or lack
war
emotions, and our war which ;;Characterized the so- of
them^r-or, at least, take it
called nineteenth century im¬
propaganda, led us into patent
without reasonable

absurdity in

the

now

authority. It is esti¬
mated that vesting of this cate¬
gory of property will bring an ad¬
ditional
$200,000,000 under the

expect the remain¬

der of the world to take

the ambitions

Department is

discover

must not

appear

Banks

ury

was un¬

der the jurisdiction of the Treas¬

domestic affairs of

not vested because it

was

regularly been at pains 1 to
v: have their
activities labeled
no

number of other countries.

First of all, let us come

ress.

.vsr-

be greatly increased. Some- Ger¬
man and Japanese
property which

have

orien-, own. We think we have
something else. Even Russia
c>£. our
concepts of: imperialistic leanings-—which
today has absolutely no im¬
"world affairs*
affairs, and a more may be true, although; we
perialistic ambitions, if we let
dowmta«eartli type of think¬ certainly do not hesitate to her
tell it, to drop into the
ing aboiit the problems by inject ourselves into the in¬ vernacular.
So it is that we
a

baldest imperial¬

The

ists

published and made avail¬
to! the public./ * :J"
,

During

the fiscal

year

ending

June 30, 1945, Mr. Markham said,
the Office of Alien Property Cus¬
todian continued to work for the

enabled

war

realize

goods
their

maximum

potential
production
and thus to put into the hands of
our
gallant
fighting' men; the
means of waging a successful war
against the foes of democracy.
The

extension

contractors

bank

credit to

not

only handled
expeditiously and efficiently but
in

was

which

manner

resulted

minimum loss both

themselves

the

ment.

and

the banks
Govern¬

The War Department

is ap¬
preciative of the services rendered
by the participating banks/arid
their
personnel1 and wishes to
recognize them through the
American Bankers Association.*

From the beginning of the V
loan program in April, 1942, ta
which
December
31, 1945, applications
James E. Markham, Alien Prop¬ fixed selling prices or restricted
for 9,605 guaranteed loans were
erty Custodian, on June 17 re¬ production, use, sale, or market
received for an aggregate amount
ported to President Harry S. Tru¬ areas, from some of the vested
of
$10,674,433,000; and of this
man that as of June 30, 1945, the
patent contracts with foreign na¬
amount 7,999 loans were actually
net value of property seized by tionals. The Office held, on June
his Office was estimated at $242,- 30,J1945, 1,Q54 foreign interests in effected, covering credits aggre¬
gating $9,891,284,00.
The r total
759 patent contracts.
000,000.

Enemy Property

elimination of agreements

Of this total, Mr. Markham ex¬
plained, $165,251,000 was formerly
German owned while $54,144,000
was-formerly Japanese owned.
The
remainder
was
formerly
owned by residents of Italy and

other countries.
The

total

estimate, the Custo¬
pointed out, excluded any
valuation for approximately 46,000
patents, 200,000 copyrights
more

than

was

400

"trademarks

that have been vested.

».:

cess

Scanlan to Cotton
Knell, President of the
Cotton Exchange, on
June 13 announced the election
of John J. Scanlan to the office
of Exchange: Secretary for the
1946-47 term.-His nomination was
Frank J.

York

confirmed
the

Board

during
of

a; meeting

Managers

net

from

the

banks

ing of plants and other construc¬
tion related to the war program
as well as working capital loans
to manufacturers
to

and other loans-

contributing to the

effort.

•/ /

To illustrate

....

the magnitude of

bank financing of war

held

industries

war

production,,

the total volume of commitments

War/pro-

for all clasifications of

:4
seized property Thursday, June 13. /
of $242,000,000, "Mr. Scanlan was appointed to
Mr. Markham said, the Office has the post of Assistant Secretary on
direct or indirect control over as¬ June 18, 1945, after serving sev¬
sets valued at" nearly a half a eral months as a member of the
billion dollars. He added that the Secretary's
staff.
He
succeeds
Although

has

available

always considerably in ex¬
of the amounts borrowed. * i

Thsee loans financed the build¬

Exchange Ppst
New

dian

and

credit

the

duction

loans

made

the

508

value

largest banks of the United States
as of June 30, 1945, was $12,758,312,141. Of this amount $4,635,559,120 were guaranteed V, VT,
and T loans authorized, and of
"formula," or international value of seized property has in Tinoney C. Figgatt,: a trading these loans the outstandings ox*
organization, we shall over¬ creased through income and' ap-; member of the Exchange, and a that date reached $2,335;,411,117.
long-time member of the Board
night change this old world preciation by $33,000,000.
These figures are contained in; of Managers, who hejd the posi¬
and its inhabitants into some¬
Treasury to Issue the Annual Report of the Office tion of Secretary for the past six
'

vV- Fate

has

make it

possible for Russia, thing

intervened

I;f the "'imperialist, to
allies

summon
successful battle

'against tfte other aggressively
imperialistic nations of the
earth, hll of whom are now in
Ithe dust^ Great Bntam,:'de«;

spite ^alt protestations, is still
^imperialistic at heart. She
intends to. "hold her own," as
.the eloquent Mr. Churchill

the^jtave never been in

years.
Mr. Figgatt ^waived reYear:Ending June 30, nomination this year and asked to
be relieved of his. Official status,
Meanwhile
it
would
be 1945,f which was- transmitted to
Mr. Scaniatii the Cotton Ex-^
Congress by. President Truman, on
helpful if we should acquire
change's announcement continued,
the habit, so far as that is
is a comparative newcomer to the
|n the Report—the third issued
possible, of seeing ourselves by the Office of .Alien Property Exchange. Before entering its em¬
ploy on March 5, 1945 he was
as others see us.
We protest CustodianMr. Markham said
with the
City Bank
that 408 business enterprises have affiliated
that we have no
imperialistic been seized by his Officer The Farmers Trust Company for ap¬
ambitions, and doubtless we Custodian pointed out that the, proximately twenty years. His
last
assignment with the bank
mean
every word of it. In the primary objective of the agency's
vesting program was to free the was in the investment division. In
ordinary sense of the term we
1934
he was elected Vice-Presi¬
enterprises from enemy -control,

the past.

>/r•' '

expressed it. But, by probably have relatively few
large,. she, has reached such ambitions. But what na¬
that stage where she is satis¬ tion does not make a habit of
fied to "hold her own," and saying somewhat the same
to protect herself and her thing to the world on all occa¬
once

\and"

Alien

Property Custodian for

the Fiscal

enter them in war

production

when possible, and to sell them to
U. S. citizens as a useful part of
the American economy. /
/
Mr. Markham stated in the Re¬

port that the vesting program

$1 Million Bond
<

Secretary of the Treasury Vin¬
June 12 announced that on.

son on

and

after July

1946, Treasury
denomination," in coupon and registered
form, will be available for au¬
thorized transactions in all out¬
1,

bonds of the $1,000,000

standing unmatured issues.
t

The Treasury bonds

offered"13

Loan .Drive,

inr
April ,1943, and all subsequent.
Treasury bond issues offered for
subscription,
have carried
the
dent of the City Bank Club—an $1,000,000
denomination.
There
employee organization of the

Na¬

the. Second War

has been

continued

demandr

and the City from the market for this denom¬
Bank Farmers Trust Co.—and was ination in i the eiarlier issues of
elected to the presidency of that Treasury bonds still outstanding^,
which it is now possible to meefcr
will association in 1942.
tional

City

Bank

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4500

163

House Committee

Sav's & Loan School

Items About

Resumes After War
The

Trust
.At a meeting of the Board of
.Directors "of the First National

•Bank of New York, N. Y., Charles

;C. Hubbell, Jr., formerly Assistant
Cashier, was elected Cashier. - r
:

i.f

#:'/frr

•

S.; Sloan
Colt, President of
Bankers Trust Company of New

York, on June 14 announced the
following official changes which
have been approved
of Directors:

by the Board

H. C. Strait, formerly Assistant

Treasurer,
his

elected

was

Vice-President

will

and

association

with

Assistant
continue

the

Haacock and Didd

New

1930

York

To Head AMfl

charge of
In 1931,

South American District.

Mr. Hart was placed in charge of
the Far Eastern District, and in

changed

title was
Vice-President and
Overseas Division.
his

pated

the

concen¬

weeks,

summer

which

the

home

financing executive of the future

Fred T. Greene, President of
the Federal Home Loan Bank of

Manage¬
ment methods and procedures to
create
satisfactory* * relations; in

sold

goods to England and re¬
ceived credit which they could

commerce/

spend only for British goods and

the

services.

States must be

Edward

include

Edwards

•

University School of Busi¬

ness;

appointed Vice - Presidents.
E. Newton Cutler, Jr. and Robert
P.
MacFadden
were < appointed

sistant
the

Treasurer

Banking

elected As¬
will

and

Department at

the

Fifth Avenue office.

Henry

Sharpe

elected

was

Assistant Treasurer and will

tinue

the

Rockefeller

Charles

Garrett,

"military service,

was elected As¬
sistant Treasurer, and will be assighed to the Banking Department
on his return to the bank.

was

announced

June

by F. Abbot Goodhue, President
the

Bank

the

Manhattan

Company, New York, that John
£. Carroll and Henry W. Pfister
have
been
appointed
Assistant
Trust Officers.

and

Mr. Carroll is a graduate of
Fordham University Law School,
a member of the New York State

Bar Association, and has been

Thorne

Sherwin

elected

Secretary

Buffalo

the

Holden

Pfister, who attended New

Department of the bank in 1929.

Bank,

June

13.

Mr.*

Thorne, according to advices
from the Buffalo "Evening News,"
returned recently from the Army.

Company,

New

York, recently announced
following promotions from
Assistant Secretary to Assistant

and had been Assistant Treasurer.
Mr.

Holden, the "News" of June
13 continued, had been President
and Secretary and Ralph W. Stod¬
•

dard had been Vice-President and

These

officers

are

turning over the duties of Secre¬
tary and Treasurer to Mr. Thorne.

Vice-President:

Mr.

Edward

partment, and Messrs. George M.
Bragalini, A. Herbert Sandler and
George C. Wolf, all of whom are
located

branch

offices

the

bank.

The

New

York

State

Banking

Department
that

announced on June
the Manufacturers Trust

Company of New York has been

appointment

Farrar

Frank

Trustee

the

Erie

Savings Bank, Buffalo
June IS, was announced
by the Buffalo "Evening News,"
County

N. Y.,

that

added

Mr.

and

Farrar

Treasurer

is
of

Cottier & Daniels, Buf¬

Denton,
falo.

The directors of the Union Cen¬

ter National Bank, Union, N. J.,
have approved a proposal tb in¬
crease
the capital stock of the
bank
and

from

$100,000

decrease, the

$250,000

value
from $100 to $25 a share, an¬
nounced John R. Buchanan, bank
President, according to the New¬
ark

"News"

par

June

13.

Stock¬

holders of the bank, the "News"

continued, will act
at

the measure

meeting on July 9.
$150,000 ^capital

increase
would be obtained by declaration

Robert M. Catharine, President
of the Dollar Savings Bank of the

effect to the proposed capital in¬
crease,
the bank would have a

City of New York, announced on
a recent meeting
of the Board of Trustees, Fred W.
Bennigsen and Llovd F. Dempsey
were elected Vice-Presidents, and
Urbain C. LeGost and George M.
Root, Assistant Vice-Presidents.

surplus of $225,000 and undivided
profits of approximately $25,000.

June 13 that at

•

■

Boies

•

Hart, VicePresident and Manager overseas
division National City Bank of
New York, died June 15 at the
age of 61.
,

In 1912

The

100% stock dividend and sale
of additional shares. After giving
of

Mr. Buchanan said. The bank

ptt' Hart first: entered

the banking

business when he or¬
ganized the Pioneer Trust & Sav-

will

curriculum

Home

construction

savings

include:

and

finance;

loan

law; financial
systems; investments; and savings
and loan management. *
and

Riefler to Head
-

Appointment

Winfield

Riefler,
formerly
Minister
in
Charge of Economic Warfare at
,

the American Embassy in London,
as
chairman of a committee to
take part in an extensive survey
of the foreign economic relations
of
the United
States was an¬

June

Twentieth

the

Mutual

Vieser, Asst. Treas. of

Benefit

Life

Insurance

Century Fund.

tute for Advanced

ton,

member of

Study, Prince¬

The Fund's Committee will

re¬

factual survey of America's
world trade and financial position
a

during the

of postwar re¬
and will make re¬
commendations iy for; p ,u b 1 i c
policy.
'
nr
years

construction

Other
mittee

;

members

of ; the

are

according to the an¬
nouncement:
Percy W. Bidwell.
Director of Studies, Council on
Foreign Relations,. Inc.; Kermit
Eby, Director of Education and
Research,

Congress of Industrial
Organizations; Paul G. Hoffman,
President, The Studebaker Cor¬
poration; Joseph C.
Rovensky.
formerly Vice President, Chase
National Bank; Theodore W.

Schultz, Professor of Agricultural
Economics, University of Chicago;
and
Robert Watt, International
Representative

the

American

Federation of Labor.

Assets in U. S.
The

Treasury

nounced

Department

an¬

June 14 that Denmark

been

Dime Savings Institution
of Newark, we are advised by the

may

Newark "News" of June 17, which
continued

License

added

the

list

be released under the cer¬
tification procedure of General
No.

taken after

between

95.

action

was

exchange of letters

the

This

Danish

Minister

;jui^sBapk pf Basin, Wyommg-and dent, said they bring the Board Commerce, Trade and Shipping
became its President.
Mr. Hart membership tb: 13. land
the
Treasury
Department
was

Treasurer

the

similar to those written in

Wyoming

Bankers Association for two years.
After joining the National City

The

MontClair

Savings-'.Bank,

1916, and traveling as an
agent in Europe, Mr. Hart was ap¬
pointed Sufr-Manager of the Sao
Paulo, Brazil branch, and re¬
mained there until 1921, when he

Montclair, N. J., on June 13 an¬
nounced a July 1 increase of its
dividend rate from 1 to l1/2%, the
maximum permitted under a re¬
cent ruling of. New
Jersey Bank¬
ing and Insurance Commissioner

transferred

Carey,

Newark "News" of June 13. which

Bank in

Manager.

•;

Later

Pernambuco

he returned

Sao Paulo as Manager and then

was

(Continued

announced

by the

page 3412)

"Citing
lations
sue

con¬

nection with the

defrosting of the
nreviously named in the
license.
Copies of the letters are
available at the. Federal Reserve
Banks, of New York, Chicago and
countries

San Francisco.

The

Danish

designated
tional

agent.

has

Denmarks

Na¬

Bank

its

certifying

the'United

example to; the
■

.v.-

labor-mahagepient ^re¬

the most

important* is¬

before management-, Mr-. iDodd

achieve'

preparedvequally

Bank

and

bilization

plan.

the

was

loan

American

Currency Sta¬
Endorsement of

expressed

Bankers

the

Association,

the

United States Chamber of
Commerce and numbers of other
well

as individ¬
One of the most vehement

opponents, of the loan to testify to
the Committee was former Sec¬

management failure. If we are
prepared to. defend pur nght!; tp
use
the labor of' other 1 meii to
our

industry, wemiist*be
to! -admit? the

failurev. is chiefly :burs if) labor
will -not work1 in harmony that Is

presumably
geous. '

mutually "advanta¬

;
''
"He stated the belief; that, "in¬

dustry's ^managers,: greafT ancl
smaUyWhothrough * theirbrgmii^

zational genius and incessant ex¬
change ol vital thoughtfpnd; in-r
retary of Commerce Jesse Jones formation
brought, industry - „tp
who, according to the Associated technological grandeur can • best
Press, wrote Chairman Spence foster the industrial understand¬

that

the plan was "unbusiness¬
like," and, putting this country in
an

exclusive

Britain,
States

alliance with Great

would
a road

the

start the United
toward financia1

second communication

Committee, which arrived
vote

had

beer

taken, Mr. Jones reiterated his
opinion that the. United Stater
should

receive real collateral for

loan to Britain.

ing that is indispensable, to preSrervation pf our economy
so¬
cial scheme."

some

their

ments in this

profitable

invest¬

country," Jone£ said,

according to the Associated Press:
.'"For
that part
of
the
loan
not

secured, I think

the money should be spent in this
country, principally for our sur¬

farm

plus
least

our

products,
farmers

that

and

workers

will benefit by the loss our Gov¬
ernment is certain to sustain.
"Otherwise
used

against

the

money

will be

trading with

other countries."

the

age

73,

the

Banking and .Currency Committte.
Champion of legislation to im¬
prove conditions
for the cotton
farmer, Senator Bankhead was
the third member of his family to
die while in Congress. His third
in

term

the

Senate

would have

The
cessed

expired in 1949.
Senate
immediately

honor

head's memory.

Senator

Finns Pay JJ. 3
On

June

were

ceiyeclr the; suin of !$160A?9j-frdnv
pf^Finland, rep-,
resenting the semi-annual pay¬
ment of interest in the amount of

$131,652

under

Agreement of-.

May

theFunding
I, 1923,1#%-

riounced the U; S. Timasui^rDepti
on June 17; $13,695.00 oh* tfie mc•

count of the semi-annual payment

the apnuity due .Underthe
postponement; agreement pf^^May
1, 1941, the report continued,' and
$21,132 on account" of the semi^on

under

the

thei iannuity

These

legislative

payihents^re|)resbnt

entire amount due from the1 gov¬
ernment of Finland, oh, ^liner

1946, under these agreements.

Lend-Lease

Colombia

Without

referring ' directly "to
anonymous charges that"the
United States had lent;.Colornbiji
$16,000,000 under
a ^ lend-lease
contract in 1942 arid ' had .'only,
billed her for $6,500,000, the State

Department
re¬

Accompanying his
several

■v-

14th the/ Treasury re^-

June

the Government

Bank-

body to Jasper, Ala., for burial

manage¬

production; fi¬
insurance, packaging, ma.fr
keting and office administration.
nance,

June 12 to Sena¬

result of a stroke suffered on May
24 during a night meeting of the

consecutive

scientific

postponement
agreement of October 14, 1943." ^

tor John Hollis Bankhead of Ala¬

bama,

with

cerned

ann^ial payment

Senator Bankhead Dies
came on

ment of personnel,

due

Death

' '

The American Management
sociation is a group of More than
9,000 industrial and commercial
companies and-executives con¬

Asserting that "they are in a
position to secure a very substan¬
tial part of the loan by pledging

June 13,

special dispatch

ington to the New
made

•

that

the

Colombia

Associated Press Washington ad¬

from

according
from.Was%r

York^TijmesJ*'

announcement'
>

associates of many years' standing.

•

contract

to:

v'v

s <

had

t""

stating
...

#Uthprized

qbta1%;iedl;^^^/

totaling $ 1 ^,2(J0,00.6{ ffiut

vices stated, adding that President

that she had actually utilized Jonly

Truman visited the funeral train

$6,566,951

shortly; before it left Washington

announcement also ;descfibed^fhis

to pay

country's

his respects.

One of Senator Bankhead's last

legislative acts

Government

the

,th^ rest of

World

which
com¬

just

participate in the Bretton Woods

New Jersey.

agers of

Alvah SvAmeimian,'bank Presi¬

the

nation,

ens

shortly after the

now a

countries whose blocked accounts

business,

recovery and
world peace, and that without the
loan Britain would be unable to

Mr. Riefler is

the faculty of the School of Eco¬
nomics and Politics at the Insti¬

has

essential

was

and,

example for.

all in¬

said, "Labor Unrest often betok¬

ruin.

Co., both of Newark, N. J., have

upon

scientific

use

rest of the world, *,

huge

economic

been elected to the Board of Man¬

;

that

tee

"set

were;-elected,

called

national

The fund's report continued:

Unfreeze Danish
Robert A. Zachary, a Vice-Pres¬

the

hearings

officers

Hancock

freeing of world trade, to inter¬

uals.

Survey

was

ident of Public Service Corp., and

lengthy

credit
have repeatedly told the Commit¬

organizations

founded in 1923.

Milford A.

Chittenden

The

view

authorized to open a branch office
on or after June 13, at 689 Morris
Park Ave. in the Bronx, N. Y.

;

During the
proponents of

Mr.

the

nounced

the

Matter-of the bank's Foreign De¬

Distelhorst, manager
Savings and Loan

Institute.

He was with the bank since 1929

which
Trust

been

President Victor

announced

Vice-President
Manufacturers

has

Treasurer

and

Industrial

N. Y.,

Buffalo,

The

York University, joined the Trust

Carl F.

of the American

as-

f)epartment
delated .withsince
the bank
1928.in its Trust
Mr.

Loren¬

Blakeley, W. Leland Foster

Treasurer.

pointed Assistant Cashiers.

Center

present in

and Roderic B. Swenson were ap¬

con¬

office.

States Savings and Loan League;

Murphy, Rutherford,
New Jersey savings and loan ex¬
ecutive; Howard M. Nichols, Pitts¬
burgh savings and loan executive;
A. D. Theobald, Vice PresidentAssistant manager of the League;

Assistant Vice-Presidents.

acceptance
the annual meeting: at

given at

war.

Schenectady,

dustry to

will

Banking Department, at the main
was

Company,
statement

currency
restrictions under which countries
in
the so-called * "sterling bloc"

members

Indianapolis; Horace Russell,
Chicago, general counsel, United

C. H. Graves

immediately preceding the

"In

dissolving the wartime

Faculty

City Bank of New York held
June 18, Lewis B. Cuyler, George
A. Guerdan and Walter G. Speer

by 60% those of'the period

which

office.

ceed

Electric

New York.

Britain in return proposes tc
attempt within a year to begin

Shea, formerly Assistant
Treasurer, was elected Assistant
Vice-President and will be in the

were

waiver of interest payments when¬
ever their exports failed
to ex¬

know.

must

Professor

regular meeting of the

renewed

two

factors

Indiana
At the

this

for

tration, for

Manager

Board of Directors of The Nation¬

H. D.

Sav¬

Companies

Rocke¬

feller Center office.

School

Great Britain received the favorable Vote of 20 to
5 of the House
Banking and Currency Committee on June 13, according to Wash¬
ington advices from the Associated Press, which added that a bitter

ings arid Loan which was sus¬
battle was expected when the bill
finally reached the House floor.
pended during the warp year
The transaction embodied in the
be
resumed
proposed legislation, which Would
August
19-31 at
cover
a.
period
of
50
Indiana' University, Bloomington;
years, pro-e>-Indiana, it was announced on June vides: /< ;
to Rio de Janeiro as Manager and
1. Authorization for the Treas¬
10* by Robert W. AIhioney, Presi*
;
Supervisor
of
the s Brazilian dent of the sponsoring organiza¬ ury to advance Britain up to the
hrnnphps
during
the
next
tion, the American Savings and $3,750,000,000
On Dec, 20, 1927, Mr. Hart was Loan
Institute. An attendance of five years, with no interest dur¬
elected
resident Vice-President, one
Interest at 2%:
hundred savings and
(Continued from first pigef/"'1
loan ing that time,
South American District.
:vexecutives and junior executives would begin in 1951.
pany, Chicago; - 111.; 'L^ M. ~ BduTHe returned to Head Office in from all over the nation
2.
The
British
could
obtain ware,
Vice
is antici¬
President, it General

1943

Graduate

Approves British Loan; ~

Legislation tb ratify the .$3,750,000,000 Senate-approved loan

Banks,

3401

was

to initiate

that'

"amount.^ The

deliveries

along the

same

Colombia

lines a^ to other

Latin American coiihtfies during
major ifems;' bfeihg'airi.

amendment to the Price Control

the war,

Act, Requiring cotton products to

pl&fius, ordnance and signal e<|ui%-.

^reflect the parity price of cotton, ment.

THE

3402

COMMERCIAL & FINANCIAL CHRONICLE

On June 15 President Truman presented to Congress a compro-i
mise plan for unification of the armed-forces in a single Department

Defense, by means of a letter addressed to the Chairmen
of the Senate and House Military and Naval Committees. Following
is the text of the President's letter,, as reported from Washington by

-of National

Press, together with the text of the joint letter of
•Secretary of War Patterson and*
:
•
Secretary of the Navy Forrestal routes of sole interest to naval
advising Mr. Truman of the atti- forces and where the requiretude of the two departments re¬ ments cannot be met by normal
garding merger plans, and the air transport facilities.
President's reply to his two Cab¬
(3) Land-type aircraft neces-i
inet members:
? sary for the training of personnel
Associated

•the

One

the

most

important
"problems confronting our country
today is the establishment of a
definite military policy.
|
In the solution of this problem
,

unified force for

warfare

fense.

Government agencies, includ¬
and io, furnish
such information to the National

ment should contain

tary

Defense

viser,

services are to work as a
team there must be close coopera¬

Council

Government

the

settle

sincere effort

differences

between the services
tion.

They

have

existing

this ques¬

made

splendid

eration, naval aviation
be

restricted

must

opportunity to

every

progress,

but

op¬

must not
be given

develop its

They have reached an agree¬ maximum usefulness. *
ment on eight important elements:
4. United States Marine Corps
of unification, and with reference'
There shall be maintained as a
to the four upon which there was!
constituent part of the naval ser¬
not full agreement their differ¬
ences are not

vice

irreconcilable.

On May 31, 1946, the Secretary
of War and the Secretary of the

balanced fleet Marine Force

including its supporting air com¬
ponent to perform the following

10. Procurement and Supply

There should be an agency to
prevent wasteful competition in
the field of military supply and
procurement through

joint plan-4
ning and cordination of procure¬

ment, production and distribution.
11. Research Agencies

that

should be

agency to
the scientific research

coordinate
and

the military,

of the Cabinet.
would

Each

of the

be headed

witn
with

tne
the

of
of

title

ser¬

ci¬

secre"Secre-

agency

istration

within

their

ser¬

vices.

They would not be mem¬
bers of the Cabinet. Each service
would retain its autonomy, sub¬
ject of

course to

overall

control

of National

•

the authority and
by the Secretary

Defense.

It is

recog-

nized

that the services have different functions and different or-

ganizations and for these
the

integrity

should

service

The

civilian

the services would
of the
Council of

members

Common Defense and in this
naritv

thpv

wrmiiH

gSS
their

respective

services

2. Three Coordinated Services
There

the

fullest extent
X

ca-

nate

should

services—the

and Air Force.

should be
operate in

three

coordi¬

Army,

Navy

The three services

parity and should

common

purpose to¬

ward overall

efficiency of the na¬
tional
uunai defense
ueiense
unaer
Under
tne control
the
control
and supervision of the Secretar
Secretary
tw
mi
of National Defense* The secre
.

taries of the three services should
be known as Secretary for the

5. Council

of National

Defense

To integrate our foreign and
military policies and to enable the
"77~ *

" ^

3. Aviation

miliary services ana tne
the National Security
»
referred to be-

Chairman
?
es

assured

If there should

tary

operations

and

6. National Security Resources

Board

the

(2)

Land-type

aircraft

neces¬

sary for essential internal admin-

establish,

and

keep

,J° esiaD.llsn> ana Kee*> UP ™
po-hcles and FSP**?. fo,r

the

maximum use

of the nation's

resources in support

of our na-

«°"al security. It should operate

under the council and be com¬
posed of representatives of the
military services and of other ap¬
propriate agencies.
,

The

Joint Chiefs

7. Research

us.

For your

convenience,

department falls short of meeting
these objectives.

below

those

matters

upon

]

single mili¬
this
agency

should

cn agency
to
the scientific research

coordinate
and

Agencies

development of the military

services.

gle

If there should be

military

sin¬

department,

exists, as set forth above, would
fully meet the needs of present

this
should be within the de¬
partment. The existence of such
an

agency would not remove the
need for an over-all central re¬
search

review

periodically

to
several

agency

the

systems of education and training
of personnel of the

ices

and

military serv¬
adjust them into an

integrated

program.

further

II.

lowing matters:
1.

Council

To formulate strategic

the

the Chairman t>i the National

Se-1

Board

the maximum

Resources

Staff
In the opinion of the War De¬
partment, the military establish-

willing to omit the feasingle Chief of Staff.

advisable, based
ther experience.

pervision

however,
delegated

use

the

of the nation's

support of our na¬
It should operate

Council

t^e

far

services

should,

possible be
their
respective
as

to 1
heads, in order that each service

have as much freedom
development as possible and
may

that

the

traditions

and

prestige of each be not impaired.

and

com¬

(Only if there is this unity of
structure, headed by an individ¬
ual with power of decision, can
we

achieve action where there is

inaction,

now

where

policy,

■

there

and

policy
disjointed

concerted
is

now

of
resources and
economy

To formulate strategic plans, to

assign

responsibilities to
thereof, to
the military programs,

logistic

the services in support

integrate

to make recommendations

for in¬

tegration of the military budget,
and to provide for the strategic

man¬

direction

United

the

military forces.

States

No single Mif»fary Chief

;;;vv

Staff

action
thereon,
totally
scientific • development
the nature of modern war

The

military- security
of
the
United States is. a single objec¬
tive.

gle

Accomplishment of this sin¬
objective wHh the greatest
and

efficiency demands
Unity*of direction.)
:
economy

NAVY DEPARTMENT VIEW

The Navy favors unification but
and
extreme
opinion-of the War De-! in a • less drastic': a:
parttnent* the military establish^':form;" It believes that serious dis¬

In the

fur¬

The Secretary
ommends

view of

of the Navy rec¬
the
President,
in

the wide

of agreed

area

ment which

presently exists, that
legislation be enacted at once givng statutory effect to those mat¬
ters, on which there is agreement.
Thsee
steps will of themselves
constitute a very substantial adr
vance over our pre- war, and even
our present, organization for na¬
tional security.
If

they are put into effect it
possible, in the opinion of
the Navy, to meet
nine specific
objectives set

will be

the Secretary of

the President's

message

the Congress on Dec.

19, 1945,
Further consideration and study
can then be given to the remain¬
ing questions on which there is
wide and general divergence of
view between, and outside of, the
military departments.
2. Three Coordinate Branches
WAR

DEPARTMENT

The

military

should

contain

VIEW

establishment

three

coordinate

branches—naval, ground and air.
Each should

and

have

civilian head

military commander. These

officials should have access to the

Cabinet rank
derogation
of the position of the civilian head
President,

but

not

since this would be in
of

the

military establishment. As
above,
the
three
branches should be given as much
autonomy as possible. (Our ex¬

was

stated

perience in the last war clearly
that parity for the Air;
Force and
the operation of all

indicates

sential

team

are

esr

national

our

Everything that

security,
know of the

future points to an increase rather
than a decrease in the decisive
role of air

power.)

NAVY DEPARTMENT

VIEWx

The

our

Navy feels that
security requires

tional

na¬

mainte¬
nance of the integrity of the
Navy
Department, headed by a civilian
*pore*ary of Cabinet *ank. Naval
aviation, together with surface
and subsurface components, have
been
soundlv integrated within1
the Navy.
The Navy feels that
similar

integration

the Army

of its air and ground forces would
be in the best interest of

tional security.

our

na¬
y

■<=-■

if the
alternatives
were three military
departments
or
one.
the Navy would prefer
three departments.
However,

prompt
ignores
and

su¬

posed of representatives of the power,
money
military services and of other ap¬ where there is now waste of them
propriate agencies.
".
;• r all. Any organization which does
not'facTitate promot decision and
3. The Joint Chiefs of Staff

To compile, analyze-and evalu-

The administration and

ices.

of unification as

measures

three services

„

tional security.
under

Agency

Security

establish, and keep up to
policies and programs for

resources

8. No Single Military Chief of

Single Military Department

order
2. National

f ?tra
eglc
States

9. Central Intelligence

military j

beads of the military services, and

date,

the

•?

ture of

establishment (if there be a smgle

programs,

agree

WAR DEPARTMENT VIEW

military department), the civilian

thereof, to

United

Government to

civilian head

the services in support

military forces.

unable

The
military
establishment
cooperate.
should be set up as a single en¬
more
effectively in matters in- f
volving our national security. The I tity, headed by a civilian of Cab¬
membershio of this Council should j inet rank with authority and re¬
consist of the Secretary of State, ] sponsibility for the several serv¬
of

^JrSraie the military
.f™?
£,
direction
of
the

are

Defense

plans, to
to

the following matters:

of Common

to below.

assign logistic responsibilities

single military department.

this

there

cies will not be fully effective ex¬

der

the fol¬

From

become

should

as agencies within a single
which we are unable toJ department.
The Navy, on the
agree.
The order of presentation other hand, believes that they will
is not intended to indicate the be more fully effective under a
relative importance of the various coordinated organization than un¬

Council

the

forth

should

Defense.

starting point, it should be
possible to move forward such

Training
There

head

the

Common

the

agency.

8. Militarv Education and

certain advan¬

sees

tages

agency

upon

I. Agreement exists

Navy feels that the
upon which agreement

measures

which agreement exists and those i cept

items.

the

While

ters

6, 7 and 8 above, the War De¬
partment believes that these agen¬

out¬

curity Resources Board, referred

Staff

istration and for air transport over ate information
gathered by vari-

execu¬

be a single military de¬
report a considerable; partment, this agency should be
within the department.
area of agreement. Sincere efforts
to expand it were made by both
As to the agencies mentioned in

cies

aircraft

department,

There

integrate our foreign and
military policies and to enable the
military services and other agen¬

•

United States Marine Corps.

should be within the department.

that

among

ernment

placing a Presidential
deputy with clearly defined pow¬
ers of decision over specified mat¬

ment, production and distribution.

ment should contain a
single mil
The Air Force shall have the re¬
itary Chief of Staff, who would
sponsibility for the development, serve as
principal military ad¬
procurement,
maintenance
and viser,
available to offer advice
operation of the military air re¬ when
differences of opinion arise]
sources of the United States with
among the military heads of the1
the following exceptions, in which several
services. The Navy feels'
responsibility must be vested in that the Joint Chiefs of Staff
tile Navy:
.;
should be the highest source of
(1) Ship, carrier and water^
- ---military advice. The War Departbased aircraft essential to naval
ment is
.

all agencies of Gov¬
responsible for our na¬
tional security. A single military
but

conditions, it

procurement through joint plan¬
ning and coordination of procure¬

these twelve elements has my un¬

exists, not only be¬
military departments

now

the

tween

Government

There should be an agency to
prevent wasteful competition in
the field of military supply and

qualified endorsement. The Sec¬
retary of War, the Secretary of:
the Navy, the Chief of Staff of the
Army and the Chief of Naval Op¬

line

Government to cooperate

effectively in matters in¬
volving our national security. The
membership of this council should
consist of the Secretary of State,
the civilian head of the military
establishment, the civilian heads
of the military services, and the

Army,

Secretary for the Navy,
dnd Secretary for the Air Force.

other

Navy recognizes the need
greater measure of integra¬

tion than

to be able to

reasons

each

retained.

secretaries

and

6. Procurement and Supply

(1) Service with the fleet in the

own

The

for

service

■

thereto.

functions:

tary." These Secretaries would be

charged with the internal admin-

morale.

essential

and

autonomy

periodically the several
systems of education, and training
of personnel of the military serv¬
ices and to adjust them into an
integrated program.
A plan of unification containing

have

Council

basfc pri^

would be under the control of a
civilian who would be a member

vices

and to furnish
information to the National

! tive order, already exists.

review

erations

source

advantages will result from com¬
bining the military services into
one department.
It would involve
sacrifices of sound administrative

Government agencies, includ¬

these lines, established

Military Education and
should

highest

Staff

agencies
entitled
It should operate under
the Council. An organization along

development of the military

Training

the

Central Intelligence Agency

Security

services.
12.

Chiefs

To compile, analyze, and evalu¬
ate information gathered by vari-,

ing

joint

such

There

vilian
viiian

the

military advice. The War Depart¬
is willing to omit the fea¬
ture of a single Chief of Staff.

YoiTwill

hol presented

advice

ment

ous

they will support such a plan.
*
,It.is my hope that the Congress
seizure or defense of advanced: will
pass legislation
as soon as
replied to them today stating my
naval bases or for the conduct of;
possible effecting a unification
position on those points submit¬
such limited land operations as; based
ted to me for decision,
upon
these twelve prin-j
are essential to the prosecution of
v"' I enclose herewith a
clples.
copy of the
a naval campaign.
report of the Secretary of War
(2) To continue the develop-;
THE JOINT LETTER
and the Secretary of the Navy,
ment of those aspects of amphibi-j
together with a copy of my reply
Pursuant to your instructions,;
ous operations
which pertain to!
we have reviewed the major ele¬
the tactics, technique, and equipnotp
that therp
the
tactics- technique, and are
equip- ments involved in establishing a
twrfve
ment
employed by the landing greater measure of unificat.*
lorcps
ciples upon which the unification
ameng our national security or¬
(3)
To
provide detachments and
bf the services can be based. They
ganizations, with a view to defin¬
organizations
for
service
on
are as follows:
ing those matters upon which we
-'V-'■ ;•
armed vessels of the Navy.
' *
•
•;
••
v
agree and those upon which we
L Single Military Department
(4) To provide security detach¬
differ.. While we regret our in—i
for protection
of naval
There should be one Depart¬ ment,
ability to bridge completely the
ment
of
National Defense.
It property at naval stations and gap between us, we are pleased
bases.

Navy delivered a report to me of
the results of their efforts. I have

offer

opinion arise

should

There

sphere of

available to
when differences of

tive order, already exists.

cific duties.
Within its proper

entitled

among the military heads of the
several services.
The Navy feels

At my request the Secretary oi tion, with interchange of person¬
and the Secretary ,of the' nel and special training for spe¬
a

other

serve

It should operate under
the council. An organization along
these lines, established by execu¬

War

'Navy have made

and

agencies

a single mili¬
Staff, who would
principal military ad¬

Chief

thereto.

anti - submarine
protection of ship¬

and

three

national de¬

our

ous

ing 'the military,

reconnaissance,

ping; Can and shouldbe;manned!
have a[ by Air Force personnel.
If the;

I consider it vital that

for the afore-mentioned purposes^
Land-based
planes for naval

Thursday, June 20,1946

WAR

Aviation

DEPARTMENT

VIEW

Responsibility for the develop¬
ment, procurement, maintenance
and operations of the military air
resources

should

of
a

the

United

States

function of the Air

Forces wjth the

following except;

tions; in which cases these re¬
sponsibilities shouM be vested in
the United States Navy:*.,
.

(A)
based

Ship,

carrier

aircraft

"and water-

essential

naval

^Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4500

operations, including those of the

■i

{v
•

Land-type aircraft neces¬
sary for essential internal administration and for air transport over

bases.

and Air Force.

These, matters have' been ex¬
by us with a sincere de¬
sire to comply with your wishes
that the military services reach
complete mutual agreement. Our

should be

routes

plored

interest

sole

naval

the

require.ments cannot be met by normal
air transport facilities.
and

(C)

where

Land-type aircraft neces¬

sary for the

training of personnel
{for (A) and (B) above.
{(The nation cannot afford the
luxury of several completely self-

■

sufficient services. The

dem¬

war

failure

than that
the

they must be com¬
plementary—mutually supporting.
{With respect to land planes, there
•are
no v purely
naval functions
which justify uneconomical du-plication of equipment and instal¬
lations.
For example,
the Air
?-Force already
performs
long'ifange
reconnaissance
for
the

achieve

our

,v„
,

ground

forces

and

The

itself.

Navy's recognized requirement for
jhe products of long-range recon-

naissance

effectively filled
by the Air Force. As regards anti~submarine warfare, it is the
view of the War Department that
the experience of the Army Air

can

Forces in the last

adequately
justifies the belief that land-baced
planes operated by the Air Forces
can meet this requirement.)

{

war

NAVY DEPARTMENT VIEW

The Navy has
to compete with,

desire either
or to dictate to,
the Army Air Forces.
On the
-other hand, the Navy feels that
its experience qualifies it to judge

{/
I

its

aviation needs.

own

One

the

for

Navy's
strong conviction against a single
department is the continued ef¬

forts

reason

the

Army Air Forces to

restrict and

aviation.

limit naval

The Navy knows that these ef¬
forts, if successful, would seri¬
ously impair our sea power and
jeopardize our national security.
To accomplish its fundamental
purpose, the Navy needs a certain
number of land planes for naval
;reconnaissance, anti - submarine
warfare and protection of ship¬
ping.
Experience indicates that
such land planes,

to be effective,
manned by naval per¬

must

trained

sonnel

warfare.

naval

Lack of such aircraft under

plete naval control

com¬

design,

procurement, operations, person¬
nel, training and administration
might be disastrous to our national

security. Similarly the Navy must

have air transport essential to its
needs.
■

4. United States Marine Corps

The Navy and the Army differ
on

the

functions

States Marine Corps

the

United

ROBERT P.

WAR

JAMES

DEPARTMENT

VIEW

FORRESTAL,

joint

of May 31, 1946. It was
also helpful to me to have the
full oral presentation of the points
involved,
which you
and' the
report

made to
I

the

June 4.

me on

progress

gratified at
have made. I

and

pleased

departments

your

you

long

feel

that

way

in narrowing the zone of dis¬

have

come

which had previously

agreement

existed between the services. The

reached on
eight vital aspects of unification
is a significant accomplishment.
These eight elements are Coun¬
cil of Common Defense, National
Security Resources Board, Joint
Chiefs of Staff, omission of single
military Chief of Staff, central in¬
telligence
agency,
procurement
and supply, research agencies and
military education and training.

full

understanding

In addition to these

eight points

agreement, I am advised also
by representatives of both serv¬

they

lieve

that

taries

are

toward

such

part

balanced

the

fleet

naval
Marine

(1) Service with the fleet in the
seizure of enemy positions not in¬
volving sustained land fighting,
and

secre¬

unnecessary.

I agree with t^eir position that
the presence of these four assist¬

secretaries is undesirable be¬

ant

(2)

the

cate

the

administration

internal

services

that

and

such

t^an would deprive the secreatries

"f the respective services of func¬

Your

four

are

report

items

unable

properly theirs.
of May 31 listed
which you were

upon

An analysis of
your comments contained in your
report, and in the lengthy discusto

agree.

s'on which

the services
in

had, disclosed that

not

are

their
as

nearly

far

toward

attitude

had been reported.

determination

these

With

the respective services.
to
the
points
full agreement was

reference

which

upon

not reached my
lows:

position is

fol¬

continue the developtactics, techniques and
equipment relating to those
phases
of amphibious
warfare
which

pertain to

waterborne

as¬

pects of landing operations.
NAVY DEPARTMENT VIEW

There shall be maintained

would

istration

com¬

defense

such

limited

for the conduct of

land

operations

develop¬

member
serv¬

would

within

their

own

serv¬

They would not be members
the

would

Cabinet.
retain

Each

service

its

autonomy, subiect of course to the authority .and
overall control by the Secretary

ices have

the

secretaries

(2)

continue

control

Each of the

of National Defense.

Depart¬

Defense.

the

under

essential to the prosecution of
naval campaign and

are

one

charged with the internal admin¬
ices.

advance

National

ices would be headed by a civilian
with
the
title
of
"secretary."

including its supporting air
ponent for
-

should

civilian who would

These

{ naval bases

ment

constituent part of the naval serv¬
ice a balanced fleet marine force

.seizure

Single Military Department

There

of the Cabinet.

1; (1) Service with the fleet in the

•

It is recognized that the

serv¬

ment of those aspects of amphibi¬ different organizations and for
ous operations
which pertain to these reasons
the
integrity of
the tactics, techniques and equip- each service should be
retained.
ment employed by landing forces. Thecivilian
secretaries
of the
U
There is agreement upon the services would be members of the

{other primary, duties of the Ma¬

National

taries

Defense;

the

The

three

secre¬

should

known as Secretary for the Army,
Secretary for the Navy, and Sec¬

retary for the Air Force.

The

Air

Force

shall

for

;

resources

the

United

States

with the

aircraft

operations,

and

aircraft

naval

the

United States Marine Corps.

naval

forces

and

where

the

quirements cannot be met by

re¬

nor¬

mal air transport facilities.

(3) Land-type aircraft necessary
for the training of personnel for
the aforementioned purposes.
Land-based
planes for naval
reconnaissance,
anti - submarine
warfare and. protection of ship¬
ping can and should be manned

Air

three

Force

personnel.

services

are

work

the
as

team there must be close cooper¬

ation, with interchange of person¬
special training for speci¬

nel and

fic duties.

it may be some
propaganda.
We

that

John

price

several
was

weeks

of
re¬

ago

bitter fight

Snyder

granted

confidence and

tilt

the

over

steel,

prac¬

the

result

of his

with

Snyder would be f that
Snyder had to go and he, Chester,
was to
take his place.
It turned

products should be
a committee to
appointed by Truman to say
When industrial products should
be decontrolled. This would leave

Chester

as only an administrator
prediction is that, in that
event, he really would quit. This
is
an
admitted
accomplishment
but hardly worth all the hullaba¬
loo we've been through, and the
intensified
shortages
in
recent
weeks.
As Senator George said
recently, Chester is the most in¬
flated commodity in town.
*»

and the

■

»———'

constituent part of the naval serv¬
ice a balanced fleet marine force

put

thing that is
Chester

The

very

the

be¬
one

definite is that

coming

reasoning

to why

lovers

are

weeny

bit of disaster

not

the

about

the OPA bill

this, the
disaster

going

get

is.. now in the hands

and House conferees, the
majority of them friendly
OPA, and those who are not,

minds of these conferees is said to
be the belief that there must be

advanced

the conduct of

land

operations

(2)

continue

the'develop¬

bill

which

Truman

ment of those aspects of

ous

conviction that

amphibi¬
operations which pertain to
the tactics, technique, and equip¬
ment
employed by the landing

done

will

sign:

the part of the Democrats, the

price ceilings

are

popular and essential to Truman's
reconversion

program;

uted

generally, have been viewed
impartial and reliable, and
have, gained widespread general

acceptance.

;

(

"During the past few years, and
especially during :the last year,
of 14 however, strong pressures (have

limited

such

for

have

of the

out

bill is this:

out¬

essential to the prosecution of
naval campaign.

Government

eral

are
what are known as skilful,
far-seeing Republican politicians.
Running
overall
through
the

defense

dermine faith in all Government
figures. The report says:.
"Certain agencies of the Fed¬

these statistics have been distrib¬

reasoning
of

come

great

now,

ly add that note.

functions:

bases

Of Gov't Statistics

Wash¬ commendable job of
obtaining, as¬
re^t.
sembling and compiling indus-?
Chester
and
his
very
efficient
try-wide and nation-wide busi¬
propagandizing aides would hard¬
ness and industrial statistics, and

Senate

naval

Urges
No Change in Basis

meteor in the

as a

sky,

including, its supporting air com¬
to perform the following

seizure

OPA

is to the effect that

cause

credence

some

about

consensus

ponent

(1) Service with the fleet in the

State Chamber

Attempts to have Federal Gov¬
ernment agencies change the basis
aides, and that instead of Snyder
of compilation of their statistics
being in jeopardy, Bowles was
in order "to justify the selfish In¬
finally called to the White House
terests of certain minority pres¬
by Truman and told forthwith to
sure groups," were criticized on
cut
out
the
monkeyshines and
produce the steel price formula ?une 3 in a report made public by
which Snyder had first called for. the Chamber of Commerce of the
The report
Since then we have doubted all State of New York:
stories that have dealt with Ches¬ warned that political manipula¬
tion
of
the
statistics
of
any. Gov¬
ter's well-being.
ernment agency would tend to un¬
We

ington

the

been brought to bear:
agencies to change the

on,

these

basis of
compilation of their statistics,, de¬
veloped as a result of many years"
practical experience, so that their
statistics

be used

can

readr

ily to justify the selfish interests
of
certain
minority
'pressure
groups.'"
The

report, which was pre¬
by
Bethune M.
Grant,
Chairman, for the Committee on
sented

Internal Trade and Imorovements,
meeting of the Chamber on
June 6, and
at the

forces.

part of the

(3) To provide detachments and
organizations for service on armed
vessels of the

foolish to re¬
adopted, commends
complaint against the U. S. Bureau of Labor Statis¬
the Administration, that if they tics for the reliability of its re*
are wrong on this, they must have
ports and refers to the reported
his signature to a bill, so if the pressure of labor groups to pre¬

bases.

dence

Navy.
(4) To provide security detach¬
ments
for
protection - of
naval
property at naval stations and

ing

that

move a

Republicans, the feel¬

they

cause

are

revulsion

popular

is still

in evi¬

the

vent

nomination

Dr.

November, or whatever Ford Hinrichs as Commissioner of
It is important that the basic
is, they can name Labor Statistics because of his re¬
elements of the plan of unifica¬ him as a particeps criminis.
If fusal to change official figures of
there is' still agitation against the the Bureau so as to
tion be stated clearly. The
support dlaims
eight
for wage increases.
fundamental points agreed upon OPA, the individual Republicans
can
and the four points which are
■mr': :
say, well, they certainly did
herewith
decided, constitute a everything they could against it. Security Tax Rise Voted
total of twelve basic principles If, on the other hand, prices are
that should form the framework still going up under some relaxa¬ By House Committee
If the House and Senate follow
of the program for
tions, they can still hold Truman
integration.
to be as much responsible as they. the recommendation of the House
There is no desire or intention
Where the public, particularly Ways and Means Committee So¬
to affect adversely the
integrity
the business men, get caught in cial Security taxes will be in-'
of
any
of the services.
They
this muddled thinking is the be¬ creased on Jan. 1, 1947, from the
should
perform
their
the

situation

■

separate
functions under the unifying di¬
rection, authority and control of
the
Secretary of National De¬
fense.
The internal administra¬
.

tion of

the

three services should

be preserved in order that the
high morale and esprit de corps
of each service can be retained.

was

you

and

gratifying to have both
General Eisenhower

and

Admiral

that

Nimitz

would

assure

all

give your
wholehearted support to a plan of
you

unification

matter

decision would be

which

upon

agree.

you

what

the

those points

did

I know that I

fully

not
can

count

gress

organizations for service

their

twelve

little

that

member

with

We are

(2) Land-type aircraft neces¬
for essential internal admin-;
out later that the stories
were
istration and
for
air
transport coming from
Chester, the adver-;
over
routes
of sole interest to
tising man, and his advertising
sary

in obtaining passage in the Con¬

fullest extent.

little reluctant

accept fiie general opinion of
Washington tonight that this is

Truman's

essential

further

armed

This writer is

when Chester

agricultural

decontrolled, and
be

Chester's

Secretry of Agriculture
Anderson»authority to say? when

based

rine Corps, viz:
on

sure

giving

'V (1) To provide detachments and
Vessels of the Navy, and

disaster.,

following exceptions, in
tically every newspaper in the
which
responsibility
must
be
country was carrying stories over
vested in the Navy :
] a period of more than a week,
(1) Ship, carrier and waterthat Chester had Mr.

council pf .common defense and in
this capacity they would have the

opportunity to represent
respective services to the

disaster lovers would

some

afraid

have

the

not to be the case.
;

develop¬
ment, procurement, maintenance
and operation of the military air

different functions and

(dontinued from first page)
aster provided Ibr in the House

bill, and thb additional disaster
supervision of the Secretary heaped on by the Senate, that we

are

tions which

ment

the

From Washington
Ahead of the News

national defense under the control
and

they would greatly compli¬

cause

maintained

assistant

fered

efficiency

the

It is my firm conviction that the
a

overall

ward

are

attitude

component for

constituent
service

The three services

Within its proper sphere of op¬
accord in
provi¬ eration. naval aviation must not
be restricted but must be given
sion in the Thomas Bill, S. 2044,
which provides for four assistant every opportunity to develop its
secretaries in charge of research, maximum usefulness.
intelligence,
procurement,
and
4. United States Marine Corps
training, respectively. They be¬
There shall be

that

ices

their

force including its supporting air

There shall be maintained

Navy

parity and should
Operate in a common purpose to¬
on

responsibility

THE PRESIDENT'S REPLY

members

Army,

Secretary of the Navy.

I have redd with cafe your

services—the

3. Aviation

questions
in the manner which I present
herein will result in a plan which
incorporates the best features of¬

nate

•

these points
■:§-

PATTERSON,

There should be three coordi¬

Secretary of War.

apart

follows:

other
respective views on
reason

of difference are as
sincere as they are divergent.
Faithfully yours,

complete una¬

points

onstrated that

nimity is due to

^Services

2* Three Coordinated

ments

{^. forces
,

(2) To provide security detach¬
for
protection of naval
property at naval stations and

United States Marine Corps.

3403

upon

all of you for full assistance

above.

basic

bill

containing

elements
-

set

the

lief that the Senate conferees will

present 1 per cent to

stand

opposed to the House pro¬
abolishing controls when
supply equals the demand of 1940,

rate against employes' pay and
employers' payrolls. The commit^

and the House conferees will op¬

12, Associated Press Washington

vision

pose

the Senate provision for the

immediate removal of controls
meat

and

that

it
a

advices

takes

time

study;

June

stipulating

the

period of five

years

beginning

Under

the

original

January.

Social Secu¬

rity Act, the tax would automatic

caliy

advance to 2.5 against em¬

ployer and employee the first of

them

the year

applies

take action before that date.

for

This

stated,

amount for

new

other reliefs from controls which
may remain in the bill.

The only worthwhile thing the
are liable to

OPA propagandists

|orth lose,

tee voted for the increase

products.

think they will be able to stall off
applying
indefinitely,
as
they
have
done r about
Congressional
edicts in the past, on the ground

make

1.5 per cent

This
leaves the celebrated MAP provi¬
sion which
the OPA hot-shots
dairy

we are told, is the provision
which it is believed will remain,

unless Congress

should
In

the past Congress has voted each
year to freeze the security tax ut
per

cent

each

against

and employer, thus

employe©

preventing the

automatic increased.

V-

3404
i.

THE COMMERCIAL & FINANCIAL CHRONICLE
i

\;\p.

.,-Tr

v/c-"'

f,'

\*»

•

Stee! Operating Rate Near Precoal Strike
Level—Price Revisions Help Clear Picture
The steel industry this week pushed its operating rate within
threerpoints of the precoal strike level and showed a gain of over
•eight, points over last week's figure. "Whether or not activity will
^gain ^ree or four point3 next week is problematical in view of pres¬
ent coal j supplies,". states

"The Iron Age/" ^ national metalworking
paper in its issue of today {June 20), which further adds;
"Goal output has gained rapidly®in the past week and may soon capacity for the week
beginning
reach record levels, but the 4-day June 17, compared with 76.1% one
shutdown in July may ..cause a week ago, 49.2% one month
ago
temporary stringency in supplies and ^88.8% one -yea?-ago.
This

•

for steel company use.

Neverthe¬ represents an increase of 8,1 pomts
or 10.6% over the
preceding week.
The operating rate for the week
may get by the coal miners' vaca¬ beginning June 17 is equivalent
tion, period without seriously in¬ to 1,483,900 tons of steel
ingots

less and despite

opinion held
to the contrary, the steel industry
some

and

terrupting output.
"While the steel operating rate
continues to exhibit a strong up¬

castings, compared to 1^41,200 tons one week ago, 867,100
tons one month ago, and 1,626,500

ward

tons

trend,-it is not a criterion
for the supply of steel in con¬
hands. For the first time

sumers'

since

the

steel

strike,

sheet and

strip customers of some firms are
in a position to expect shipments
.

to the full extent of their quotas,

although these may fall far short
of what they would like to re-

ceive.'^v
"In

from
too

-■■

these

some

cases

steel

companies

The

late.

full

effects

come

the

complete shutdown in the steel in¬

dustry earlier this
being,:felt.
manufacturers

hand.

the

strike

were

forced to

use

all

inventory

practically

year are now

During

The result this week is that

midwestern plants have been
forced to restrict manufacturing

some

operations by as much as
until, fresh steel shipments
balanced nature

50%

received.

are

"During the second half of this
year, the steel industry is expected
to get

into full stride of uninter¬
rupted output with the result that
customers

will receive

steadier

flow,J of
:

material.
It may be
September, however, before the
unbalance
in
steel
products is
eliminated, thus allowing manu¬

facturingconcerns

to reach the
highest point of efficiency in their
production cycles.
r
"With

into

the steel industry going
period of sustained opera¬

tional some

steel

fearful

the

that

observers

are

unusually large
backlogs will be whittled down
rapidly because
of
duplicate
ordering.
Many customers have
placed identical orders with more
than

one:

firm

the

hope

that

earlier delivery could be obtained
and the excess orders promptly
canceled..

Steel companies have
of {.knowing the magni¬
tude of duplications in steel or¬
dering 1 because they
have
no
access
to
competitors'
books.
However, the total of such dupli¬
no

way

cation is probably heavy.*
"In today's sellers' market, how¬

year ago.

"Steel"

Cleveland,

in its
summary of latest news develop¬
ments in the metalworking indus¬
try,

June 17 stated in part

follows:

■

"New

steel

mills
are
being
completion in order to
meet the growing shortage in flatrolled steel products.
rushed to

assurances

may

one

"This
which

class

includes

steel

products,

material

used

"Steel ingot production in May
4,073,465 net tons, compared
with 5,860,258 tons ini.
April. and
With 7,449,667 tons in
May, 1945.

was

This

loss of 1,787,006 tons
from April and of
3,376,000 tons
from
May last year. For ten
was

months

from

August,

1945,

tons,

compared

with

73(,312,253

tons for the corresponding period
a year earlier.
This is a deficit of
more

than 22 million

tons, which
would account for the scarcity of
steel for manufacturing purposes
this year.".
{
:
,

bodies,

tin cans, re¬
frigerator and range cabinets, as
well as a host of other everyday
necessities, is the most seriously
short of all steel today.
"By the end of this
000 tons of

year, 1,118,capacity will have

new

been installed.

match

The

production

race

with

the

al¬

ready

booming demand. Auto¬
companies
have
been
forced to reduce their production
estimates, largely because of the
pinch in flat rolled steel products.
This shortage has been the cause
of such developments as the for¬
mobile

mation

the

Portsmouth

Steel

Corp., Portsmouth, O., to supply
steel for Frazer and Kaiser auto¬

mobiles.
New expansion is taking place
Pittsburgh, Chicago, Cleveland,
Detroit and the east, with miscel¬
laneous
equipment
going
into

mills in other parts of the coun¬

There

try.

is
sufficient
ingot
already available, as a
result of war expansion, to take
care of the added rolling
capacity.

capacity

"Price
steel

revisions

and

raw

highlight

materials

Price changes are

the

markets.

resulting from

suspensions of Office of Price Ad¬
ministration controls on various

ferroalloys,

alloy!

ores

re^

and

factories, while final clarification
of the alloy steel prlce:situation is;
reflected in spreading of the full

8.2%
time

increase, in effect for some
tool steels and stainless,
alloy products.

other products.

cutdown

are

bound

conform

istically with current
sibility

that

real¬

conditions.

1 On the other hand with the

been

steel,

industry

pos¬

steel

price control
will be out. in 1947, the old-time
steel {consumer, fearful of
rising
prices, would keep all orders on
steel mill books as a hedge.
'The, scrap situation this week

remains, tighter than ever and was
rapidly reaching the point where
extra effort would have to

some

made

While

have

increase

'some
held

scrap

the

supply.

sources

may

back

supplies hoping
for an increase in ceiling prices
such tonnage was a small per cent
of the total.

is due

The shortage of scrap
to demand and lack

of scrap reserves than to the

price

angle.""
The

American

Institute
that

June

Iron

and

Steel

announced

telegraphic reports which it

had -received

indicated

that

rhe

operating rate of steel companies
having 94% of the steel capacity
Of

theindustry will be 84,2%

:of

people will fear
current incomes

People Emerged

The American public, including
businesses as well as individuals,

the

war

-with

their

either

accumu¬

ries which

nation's

jitters,
take

the

then it is
optimistic

great era of produc¬
prosperity eventually lies
a

tive ;:
ahead.

was

goods

productive

one
as

> 2

This back-,'

of demand is alone sizable
enough to require the mainte¬

of capacity production for $

year

much

some

industries and

five years in
A related iactor is the defc&fc
maintenance and aceel- f

others#

four

erated obsolescence which has oer v$?
in

curred

the

lishments

during the

and which

now

the

organization

war.

phase of frustration will soon pass
is based,
among other factors, on
that the tolenance of
American people with labor

ferred

belief

ac-

our

indusshut off when the

mobilized for

nance

possible

My confidence that the present

Cash and Securities

from

spend

consumers'

durable

its7 economic

From War With Record

emerged

demand which has
cumulated in recent years in

was

view that

American

deferred

lated savings. But, if one is pre¬
pared to assume, as I do, that in
time America is going to get over

portation

Still

industrial,

our

and

trans-

.i*:

distribution estab-

another

war

years

;

must be made up.
market is to be

<
policies which incite distrubance
accumulation of cash and
and offend their sense of justice found in the foreign demand for
?
securities, including about $25,- is
American productive machinery.
running out. I believe the
000,000,000 in currency, $75,000,- American
Aside
from
needs
for
relief
and
<
people are coming to
000,000 in demand deposits, $50,recognize that some of the powers rehabilitation, which are enor¬
000,000.000 in time deposits and granted to labor leaders have been mous, there is a real opportunity
almost $100,000,000,000
in Gov¬ abused and that we shall before for rapid industrialization of the
ernment
securities, the Depart¬ long find ways of restricting the so-called backward areas.
For¬
ment of Commerce said on May
activities of the misguided ele¬ eign industry needs to catch up j
27. Once the transition period is
with
American
ments in
labor who have used
productive progr
past, this reserve should be bene¬ their powers to subject the nation ress and we know it will make
ficial in tending to exert downto so many unnecessary strikes. better markets for us if our for¬
Ward pressure on long-term inter¬
And I do not for one moment be¬ eign customers are prosperous.
est rates and otherwise aiding in
Another new market for the
lieve that our people are eco¬
the establishment of a full-pro¬
nomically so illiterate as to be¬ post-war period has its origin in
duction,
full-employment
econ¬ lieve that
industry will or should the fact that close to ten millions v
omy, it was said.
arbitrarily be forced to sell its of our people, who were com¬
In
an
article
by Haskell P. products at prices which will not pletely or partially unemployed
;
Wald,
Commerce
Department compensate for the cost of pro¬ during the great depression, were
economist, appearing in the May duction. Nor do I believe that the raised abruptly from the pauper,
issue of Survey of Current Busi¬ American
people will want in¬ class to the middle income class
ness, the nation's war-expanded definitely to continue OPA con¬
during the war years.
This is a
fact of massive
money supply is analyzed in terms trols.
significance, for
?
They know that their po¬
of its effects on future prices, pro¬ litical freedoms are
these people,
who
were
living •'<
meaningless
duction, and interest rates. In part without economic freedom. They much too close to the subsistence
the
Department's
advices
also are pretty good at arithmetic, and level after they lost their jobs,
said:
they know that they have lost homes, insurance, bank deposits
"The
article
emphasizes that many dollars more in income dur¬ and self-respect in the great de¬
price controls are needed to pro¬ ing the strikes than they will re¬ pression of the early 30s, got welltect the economy from disruptive gain in a long while.
When a paying jobs during the war and
price increases during the transi¬ worker is thrown out of work be¬ now have a sizable stake in cash, J
tion period. Once our huge pro¬ cause of strikes in other indus¬ deposits and War Bonds, in addi¬
duction plant is properly func¬ tries he knows
only too well that tion to the prospect for* continued
tioning and goods are available in he hasn't gained anything. Finally, employment at least during the ;:
large quantity, the public can be¬ the
continuance
of
deficit
fi¬ next few years. They now reorecome
accustomed to have large
nancing is, I believe, out of char¬ sent a vast new market for all of <
cash reserves on hand and the acter with the natural
disposition the goods and services which go ,
to make up the American stand¬
money will no longer burn holes of our people toward integrity in
in the public's pocket.
their own financial housekeeping. ard of living.
"The current money supply far It simply does not make sense that
Another market of importance
exceeds
any
"normal" require¬ a people who during the war has its origin in the migration of —
ments suggested by past experi¬ salted
away many tens of billions people from the farm to the city
ence,
the Department of Com¬ of dollars in war bonds and in and from smaller to larger com- ■?.
merce said.
This situation, cou¬ bank deposits really believe all munities, which came about be¬
pled with the swollen demand of that nonsense about saving being cause of wartime changes in the >
consumers and businesses for con¬
bad, debt being good, and soft location of our productive estab¬
lishments.'
A smaller migration
sumer
durable goods, inventory, money being a
blessing for the
plant and equipment underscores nation. Our people know that the during and following World War
the need for the continuance of a American enterprise system pro¬ I was in part responsible for the
firm price control policy."
duced the goods which enabled us building
boom of the 20s and
•

record

Railway Employes in
Hay Totaled 1,307,231

also

cloth,

been

tubular

"With

these

made

goods

and

wire
some

1,307,251# a decrease of 8.38%
compared, with the corresponding
in

month

changes,

upward

adjustments based

1945 and 2.98%

under

April, 1946, according to a report

on the $5 per
recently issued by the Bureau of
price increase
granted last March by OPA are transport Economics and- Statistics

ton

overall

steel

believed completed.

"Meanwhile
awaited

of the

w o r

new

prices

Interstate Commerce Com¬

being mission. ..1;f
for .pig
A decline under May, 1945, is

iron and coke, both products hav¬
ing been on adjustable pricing
basis for some time,

pending an¬
alysis by Washington of effects of
the recent increase in cost of coal.

"Request by the iron and steel
scrap industry for a $2.50. increase
in ceiling prices has been
refused
by Office of Price Administration.
This action, is expected to release
material which was
being
held
in
anticipation of

shown in the number of employes
for

every

reporting group

the exception of

cials,

and

staff

transportation

assistants

and

(other' than train,

creases

of 0.37%

and

1.47%,

ment

operation

and

supply

improve¬

must await
of normal activity

re¬

scrap.

crease are:

transportation (yardmasters,

gine service), 11.60,

ness

point where it is the envy

that

our

tolerate

I believe that

toward

productive¬
great in this country

people will not for long
policies which keep the

nation's economic organization in
low ge,ar, and hold back its eco¬

nomic progress and keep millions
of people

out of work.

-{ If

faith

people
chances

the

American

justified,

then
the
they will soon
throw off the shackles on produc¬
tion so that business can produce
the goods, the jobs,uand the; ^
comes of which it clearly is capa¬
ble. i

tain,
now

are

But of

that

thing I

one

am cer¬

namely, that the economic

enormous, for
great new
products of Amer¬

are

have several

markets for the

ican industry.

£;{£ :.,£

£ Industry
know, several million
were

new

fam¬

formed and these fam¬

reason

new

for

homes

believ¬

and, will

require communities to open up.£:
new

developments, expand publie \

utilities and build schools in the
years

ahead.

The Need for Sustained Business

Activity After Deferred Demands
Have Been Met

These markets

"I '£1

large enough
to keep our industries busy for a
considerable period once the re¬
conversion problem has been dealt
with, but most of the new mar¬
kets

are

and

one

of a

are

temporary character,

is entitled to

some

mis¬

givings as to what lies ahead
when they have been exhausted.
We all share a feeling of appre¬
hension as to what will happen in.!
our economic system if we exper¬
ience another
great depression.

toward
takes

During the war years, as we all
ilies

number

good

There is

New Markets for American

spectively. The percentages of de¬

by switchtendCrs, and hostlers), 9.87,
metal-working plants generating pnd transportation (train and en¬
sumption

the { instinct

re¬

higher
Professional, clerical, and gen¬
prices following readjustment in
lead, copper and brass scrap. Steel eral, 3.34; maintenance of way
scrap shortage now is the chief and structures, 14.-30; maintenance
Obstacle to mills regaining a
high of equipment and stores, 8.62;
of

ing to

of the whole world.

engine, and yard), which show in¬

some

level

there

ing that this migration factor will
provide a market for a substantial

with potentialities

executives, offi¬

win two World Wars and to
lift the American standard of liv¬

to all

production con¬
tinue^, however, backlogs in the

orders.- As

(Continued from first page)
orders will be cancelled, plans for
expansion will be deferred, and

Ids

automobile

have

such

Economic Prospects and Problems
Foi Post-war Reconversion Period

the

end of the war, to the end of
May
total ingot output was 51,276,314

"Increases of $10 per ton have
made in ceiling prices on
nails, staples add related prod¬
apparently with the basic
ery on orders which they had du¬ ucts,
Employes of Class I railroads
plicated with other firms, would idea of stimulating supply for the of the United States, as of the
be hardly likely to fcancel any ♦\pusing program, and adj ustments middle
of
May,
1946, totaled

ever,., .customers who
would be
fortunate enough to obtain deliv¬

Thursday, June £0fJ946

'•

fearsome world trend

State

the

form

Socialism
in

some

which

nations

outright dictatorship, in others

rigid controls by the Govern-

ment

over industry, in still others
ily units now have to be housed
and supplied with the automo¬ of State ownership of industry. •
biles, electric gadgets, community
Many observers doubt that we

facilities and the other goods and

services

which

are

part tof

the

American standard of living

Another
one

market

period is
but it is large,

post-war
"

new

for

the

shall be able to escape some vio¬
lent

changes in

economic

our

structure

political and
if

the nation

temporary is subjected to another deflation
I refer to the as severe and as long as that we

iVoluine 163 -Huifcber-4500
experienced in the period
1934.

>jv

.J-

THE

1929-

| personally do not expect that

shall have so severe a depres¬
sion as ;we experienced in the
we

early 30s.
We are sure to have
fluctuations in production and we
shall be lucky to
escape declines
severe enough to be
described as
depressions, but the stage does not
appear to be set for another great

monetary
Our

and

banking

sounder,

traction,
than

credit

deflation.

structure

much

monetary supply is
subject to violent con¬

our

and we know better now
did in the early 30s how
central banking sys¬

use

our

tem to prevent disruptive defla¬
tions in bank credit. But
there is
still another reason for

believing

that when the

temporary demands
filled, there will still

have been
be

business for American indus¬

try.
The Opportunity
Technology Of¬
fers for A Great Upsurge
In Production

We are in the midst of
what, for
lack of a better term, I have called

the technological revolution.
The
rate of technological
change in in¬

dustry has increased until it is,
in my view, the most
important
economic fact of life for

today.

We are all vaguely aware that
something revolutionary has

emerged
from
the
industrial
laboratories in the past decade,
but

while

there

are

new

for each of

easy

that in

see

business

our own

processes to be in¬

tegrated into the industrial pat¬

tern,

or
here
product to be

there

and

new

developed, few of
opportunity for ex¬
pansion which these amazing de¬
realize the

velopments offer to the economy
a whole.
It is, in my
opinion,
not too much to say that we stand
on the edge of one of the most
glorious periods of man's struggle
as

to increase his economic
well-be¬

ings The scientific laboratories
universities and of

our

tries

have

wealth of
and

supplied

new

indus¬

our

with

methods, materials

machines

capable of provid¬
solid basis for a new oeriod

ing

economic

What

progress.

want to convey to you is an idea
of the sheer weight and compel¬

ling

ma¬

and, durability,* and also

drillings " technique^

new

feeds

for

automatic

have

centrifugal forging and electronic
controls
for whole batteries of
machines—all of which mean con¬

siderable savings in: materials and
man-hours of labor used

force

involved,

for

science

has prepared the way for a

new

adventure in conquering want and

automobile, of trucks and buses,
gadgets and, railroad
equipment.
In

have

the

hearing aids, in germicidal lamps,
in the

the

electron microscope the new
and techniques which

vista of

open

healthful

tive

hours

for

life,

longer and

produc¬
higher efficiency

and

people.
housing we have partial and
complete prefabrication, packaged
our

kitchens

and

bathrooms,

efficient and compact heating de¬

vices,

host

life

which

processes

materials

will

maintenance

and

extend

housing, lower its

well

insulating, materials

new

and

the

initial

cost

and

increase the comfort it supplies.
We have a host of
synthetic

materials, such

rubber, plas.ics,
unbreakable glass, new coatings
for old as well as new
materials,
and new fibres of
amazing versa¬
tility, utility and cheapness. The
as

wizards

new

try

fact

house of

near

potentialities

products
for

old

ones

mitted to
In

veritable

creating
as

new

markets

if enterprise

is per¬

develop them.

addition

all

these

new

products and processes with their
vasimplications as to material

have
ods

means
esses

over

quality,

color

meth¬

new

analysis

and

for

making industrial
automatic,
cheaper

safer.
means

new

proc¬

and

which

industries

clearly

are

certain

are

defined

at that—are to be

means

for in¬

lation,

the

distant fu'.ure

reproduction,

black

In frozen foods
new

arid

ihere is

industry with the

equipment

land and

etc.

transportation.
44 In the lighting field, we have
fluorescence

cheaper

lighting

for the home and better

industry

ance can

light for
that work perform¬

increased,

new means

for

color.
vast

need

for

refrigeration

railroad

air

new

transportation,

conditioning

barely scratched the surface

have
of

industry which provides the

mechanism
life

for

and

capable of lowering costs
increasing output. somewhere

along the line.

In super-octane
gasoline, in the
diesel engine, in the
turbosuper-

charger and in the gas

turbine

range of food
turn means

products, which in
larger markets for

production and better-fed
and, therefore, more productive
people. Science has

objective today
production.

should vbe

these

Full

full cellar,

the

stage

dreams to present

or near

idle

Production

Necessary
to Validate the

"We Are

realities.

The first reason why full
pro¬
duction is essential' is that our
national debt is now so high rela¬

commodity

picker,

one

produce

did

before.

ticides,
the

With

the

tive

able
as

toll at times that the
cost of

wise.

would

Add

cotton

have

cost

there

that

lion

and

release

from

par rial

that

necessity

larger

sense,

ways of

lifting

debt, which has

the

past few years
one-quarter of ? a tril¬

erable, for

list of the

stresses and

reduce taxes

business

little each year and keep on do¬

ing, it until it is obvious for all to
see that we have reached h level
where the enterprise incentive lk
active and vigorous again.
-1;
,
The Outlook

Thus,

believe that if

Government
realistic

induce

can

our

put into effect

for

economic
destined to enter

program

strains which would

new

terials

after the

temporary post-war de¬

worked

In the

mass

airplanes

economically.
production of small
may look forward

not only to a new
new

aids

iri

industry but to

spraying

Another

mands have been forgotten.

for

crops,

de¬

imperative is that an in¬
creasing supply of goods is an es¬
come

Science Eliminates the Threat of
Economic Maturity
We

have

this

logical

revolution

answer

this

those

nation

the

who

short.

technology make

ultimate

would

The

old

goods

ment

tific

ahead

With
new

insignificance
lous

our

pales

frontier of the
to

the

have

develop¬

new

into

scien¬

relative

inherent in

present, not

to mention the promise of
science
unleashed in the years ahead. The

chronic

unemployment
in
the
thirties, which many sincere but
misguided students assumed to be
our

permanent lot, was but a re¬
flection of the
deadening effect
on
enterprise of a deflation as
serious as that we experienced

ariti-business

policies

at that time.

There is

shall have

so
a

the

popular
risk

now

shortage of
labor, of capital and of savings,
and it clearly is time for us to
a

reappraise the policies of the past
in terms of the new
potentialities
of the future.

This

nalion

for

program

monetary
remove

danger.

course,

the

contraction

inflationary

essential

that

the

dangerous to be
But,

weakf
j i4'! \'C
beginning,

I said at the

take the

optimistic view of oqr
longer range outlook^ Time .after
time in our history the forces of
radicalism have for
our

a period held
in check and threat-?,

progress

ened

institutions;; of LentenAlways before the natural

our

prise,

inclination

our

people^, toward

conservatism

has

vailed and

have gone forward

time

pre¬

heights
of
industrial,
and,
ladies u and
gentlemen,
I
believe
that
we are
people will be ;abl# to
b^#&idmoney'5 w<^h4insprid; ■going,to do it again.,
:
^
of having-the value of their funds,
dissipated in a spiral of rising
prices.
-f-T
markets be flooded .with goods

new

achievement

!that} tl|fe

...

ABA Graduate School

Full Production Is Essential If the
Nation Is to Be Strong

talk

tiali ies of expansion
the technology of the

alone

the
geographical
past.. How ridicu¬

of
over-saving
under-investment when in¬
dustry is faced with the poten-

any

shall need also to take action
reduce
the
over-supply
of

through

the

those

inflation.

money inherited from the war but
it is unlikely that we will be able

ma¬

and

that

markets

result

production,

and

frontier

sell

facts

part

preventing

shambles of all

pessimists.
industries and

new

sential

techno¬

new

reason why a
program
increasing production has be¬

Still another

reason

for increas¬

ing production is that we must
fortify the nation against the eco¬
nomic,
political
and
military
emergencies of the future.
We
live

turbulent, uncertain,
dangerous and, in a sense," an un¬
friendly world, and it would be
a

foolhardy to expect that
not have

the

ahead.

difficulties

those

shall

troublous times in

some

years

any

will

event,
more

easily met and our democratic
of life will be protected from

way

both
gers

internal

building
and

progress

gained
easy

bend

the

health

and

external
our

economic

the

dan¬

efforts

strength

nation.

Real

in that direction is to be
not

economic

subservience

panaceas,*' but by

clearly recognizing that the road
to strength lies in hard work, in
high productivity, and in policies

>v;i

Banking Opens

The
twelfth
session f ol'Kthe4
Graduate School of Banking
ducted by the American Bankers-

Association, opened on June IT at
Rutgers University; Seven"
dred

bank

states, the

officers

District

Columbia,

and Puerto Rico

were included ini
the student body at the Graduate

School this year, making it'the
largest enrollment in th^ histbiy;
of the school.

The Graduate

ing

was

Bankers
offer

officer

School: of

founded by the American'
Association iri 1935r' tw

experienced

bankers

rank

advanced stiidy ha:
banking, economics, law, govern¬
ment. arid philosophy. The

faculty;

of fifty is drawn from leaders 'in;
the field of education,
banking,

and law, and includes a number

faced with
of government officials;
a
; *r r ."v'
tecting and preventing forest fires,
glorious opportunity for a long which
The 1946 suriimer resident ,~ses£
encourage saving and in¬
pa.roling
pipe
lines,. directing period of prosperity, and it will
vestment in new and improved sion will be held from June 1?;
traffic, laying wire and a host of be
the shame of

there are potentialities for
bring¬
ing about changes of profound
our time if that
productive capacity. We dare not
significance in the efficiency and other uses.
opportunity is muffed. And that be, weak and there is no other
cost of, power for
industry and
Finally, we face; a fantastic is why it is so urgently
road by which this nation can be
necessary
transportation.
transformation in the ancient in¬ that a
sound, realistic and prac¬ made strong except through in¬
In air transport—domestic and
dustryof agriculture. We have a tical
program for productive pros¬ creasing production. international—we have not
only wealth of new farm machines- perity be developed and
applied
the irieans of speeding the move¬
new machines for
planting pel- immediately. We cannot afford to Tft£ Times Call for Devitalization
ment of men and materials but of letted
seeds with built in insecti¬
Gf the Profit Motive and
permit misguided labor leadership
reducing costs in many instances. cides, fungicides and
fertilizers, to; featherbed the.. economy to a ;
Restoration of Confidence
New
discoveries
in
powder variable depth planters,
pick-up point where industry will be un¬
In this environment we need
metallurgy are creating an un- balers, transplanting
able to use for the nation's ad¬
machines,
to insist that our Government of¬
advertised revolution in the metal mechanical
pickers, and flame vancement the technological im¬ ficials
resurvey the whole probworking ^industry: Midi'^porous weeders.. combination with
provements
which science
has lem of what
makges our economic

able

dollars

inflation but this is clearly intol¬
it would subject the
whole economic organization to

in the fields
for other industrial
pursuits.
but

and a stoppage

find ourselves- in'-it*
proximately equal to the national situation where the
opportuirittea'
wealth.
One method is
through and the risks are both great. I

back-breaking work
This is

souncT

of anti-business policies by Gov^
ernment. "And it means lower;
taxes on enterprise.
That is why
it is So essential that we balance ;

and now is nearly
twice the national income and
ap¬

men

burden

by nearly

compete wi.h our South
American friends on a little better
basis

wealth

the

only two

are

increased

have

much

use

the

other¬

low

would be able to
of it, to

been

and

possible.

materially higher

this

national

under

are

building up
tivity and the wealth of the na¬
tion as quickly and as
efficiently

insec¬

new

means

balanced budget, careful
administration
of ■ the
central

the budget at a low level of ex^
pehditure, forit is only: with re-v,
the economic produc¬ duced expenditure that we willbe

the

may in time eradicate
weevil which has levied

cotton has been

than

may be

boll

such

man

much cotton

atmosphere of

banking: system,

National Debt

With precision
planting,
flame weeding, and the
mechani¬
cal

we need

money, a

This is all quite
involved, but let
me spell it Out for
one
—cotton.

revitalization of

means a

confidence and that

brought all

from

and that

saying is that we must stop fool¬ the profit motive in an environ¬
ing around with the problem of ment of free competition.v Ii capi¬
reconversion, for the one national tal is to come out of the storm

a; wide

not only for making
comfortable, but also for following 1930, together with

determining the freshness of crea.ing conditions where work¬
foods; and. of preventing
spoilage, ing, efficiency is increased, new
new methods for.
detecting plant standards of precision are feas¬
disease Ond infections — all of ible, and new materials can be
these

cost

many years of intensive

expected in the

facsimile

television

trucks,

sea

beyond in peacetime.
We simply must
clearly restore the basic incentives which
of the drive
industry to greater- abcl
prices, greater productive achievement,

improving the quality production and. profits. What I

reducing the

lower costs of

field of radio, in frequency modu¬

creasing the safety factor in air,

industries

new1

now
have
cheaper thousands of additional locker
tempering, bonding and plants and a fantastic market for
home
metals, wood and other new
freezers
and
new
new

and

for

forming.

materials and

bilities for

die-hard

reduction, there

for

sewing

inflation

•

cost

future—and not

electronics

automatic counters, new

new

controls

the silly talk of economic
turity we have heard from

Some

Machines
area

stresses

vast new
industry in them¬ We cannot afford to delay
selves, these developments are the the time wheri they are
fore-runners
of-far-reaching useful the demobilization
changes. They open up new
possi¬ Government; controls over

progress, quality improvement and

New Industries of the Future

4; In the

and

decade will not solve the prob¬
types of damage which in the and to have an inflationary expro¬ lem of
unemployment 0rj 4 make
past have kept costs
high, pre¬ priation off he people's savings. for prosperity. We ought to know'
cision
We
carinot
planting, and new crops
afford to waste our that the policies which werenec¬
such as soy
beans, which consti¬ time in fruitless industrial strife. essary in wartime will not :Worlr
ous

store¬

miracles with' vast
for

well

wealth

The chemical indus¬

uses.

land of productive achievement.
and

strains

vari¬

We ought to Jknow
experience;: Of the
ploicies of that dismal

sad

our

ing fabrics which offer

areas

New Methods, Materials

system tick.
the

of seeds resistant to

3405

expansion we are
methods, machines and ma¬ leave it
prostrate.
The alternate
the greatest, period of prosperity
which applied science is
and the only sound
way to deal
we have ever experienced.'
great making available to American in¬ with a debt of
;Bim !
the size of that we
chemical industry have provided dustry, yet it is
if we fail to remove the blbcks W
long enough to have inherited from the war
is
show
full
synthetic
that
we
are
production
by
our
on the
private fenlonger-lasting
pain s.
edge of to adopt a fiscal policy which will
new
and
more
effective
terprise system, then we are'likely
glues, a period when hew industries and enable us to pay
part of it off and
new uses for waste materials
to
suffer
a
series
' of
shocks
too new
possibilities
of
expanding to validate, the rest of it through
numerous
to
old indus.ries
mention and
new
through inflation, labor strife and
by reduction in cost increased production.
chronic
detergents.
They have also de¬ to the consumer will provide a
unemployment,
which
veloped new methods of treating, basis for keeping our industries Full Production Is Essential If We would weaken the4nation's ;*prx0t
ductive strength at a time when it
Are to Avoid Inflation
proofing, testing and strengthen¬ operating at a high level long
scientific

new

riyaiiablel^fe^rihot ;affprli

optical devices and in

new

materials

levels undreamed of

in this

medicine

vitamin techniques, in sulfa, peni¬
cillin and streptomycin, in new

raising the standard of living to
even

made

insecticide bombs, new
bug to subject the. nation's financial after the
killers, chemical weed killers, new and monetary organization to the
30s that

tute

in pro¬

ducing the goods we need. New
light metals at new low prices,
we
may be sure, ultimately will
reduce
significantly the initial
and
maintenance
costs
of
the
household

other products and
processes, such

faster strains

machines,

much less

self-lubricating bearings and

chine tools of incredible hardness

How Severe the Next Depression

COMMERCIAL & FINANCIAL CHRONICLE

to 29 inclusive.

The Class Of

whichwiljbe graduated

194®,
'jun^

29, will be the tenth class;

£radtt-:.

ated

School!

since
started.'

the

Graduate
,,

The Graduate

School of Bank-:

ing is a complete college expert-:
ence
for the bankers,
^most of
whom hold degrees from, otheruniversities and colleges.. Ori the:
,

program

are

variety of-class

competitions
and
activities
la
which the "students" participate*

THE COMMERCIAL & FINANCIAL

3406

ferences. There always have

Weekly Coal and Coke Production Statistics

been

there always will be honest
differences in the councils of gov¬
and

of bituminous coal and lignite m the week
ended June 8, 1946, was 12,650,000 net tons, an increase of about 6%
over the 11,973,000 tons produced in the corresponding week of 1945.
Output in the week ended June 1,1946, the first full week of Governof the soft coal mines, although affected bythe ob¬
The total production

That is part of the give

ernment.

and take of our free life.

I have sat in the Cabinet of the

President

since

ever

States

United

the

historic

that

day

Thursday, June 20, 1946 "

CHRONICLE

for

cedure

settling

honest —and these uncertainties

our

contributions

differences.

We must find, and find it soon,i strife.
The enactment of this program
effective means of project-:

ing the general welfare—and do¬ —now long overdue—would con¬
ing this even as we strengthen,- tribute immeasurably to economic
instead of weaken, the rights and! stability and thus to the eliminar
interests of both management and tion of the causes of industrial

holiday, amounted to 3,700,000 tons. March 4, 1933 — that day when labor.
To find this means is the joint
From Jan. 1 to June 8, 1946, production was estimated at 198,140,000 Franklin Roosevelt stripped away
net tons, a decrease of 24.5% when compared with the 262,303,000 the people's fear of national dis¬ responsibility of management and
tons produced during the period from Jan. 1 to June 9, 1945.
aster, and put them back once labor, and of government repre¬
To asure greater coal production for essential-needs, Admiral more on the road of national prog¬ senting all of us.

iBen Moreell, Federal Coal Administrator, and John L. Lewis, Presi¬
dent of the United Mine Workers of America, on June 12 agreed to
.limit the 1946 vacation period for bituminous coal miners to four

honest differences
participated in many

have

I have done

honest controversies.

days, from July 4 to July 7, inclusive.
Oscar »L. Chapman, Acting Solid Fuels

this because the Cabinet of the

announced that domestic consumers

—and

Administrator, on June |6
of bituminous coal, who ordinar-

ening the process of free collec¬

have had many

and

President

never

was

finding

meant to be

be—a meeting of

can never

use ofstorage

period of last year.

beehive coke in the United States

The estimated production of

showed an increase of 38,100 tons

for the week ended June 8, 1946,

J when compared with the output for the week ended June
186,200 tons less than for the corresponding week of 1945.
ESTIMATED UNITED STATES

PRODUCTION OP BITUMINOUS COAL

1; but was

AND LIGNITE

(In Net Tons)

—Jan. 1 to Date—

Week Ended

Li
Total, including mine fuel„

; Daily

average

1946
1945
1946
3,700,000 11,973,000 198,140,000
t740,000
1,996,000
1,478,000
tAverage based on five working days.

1946
12,650,000
2,108,000

Bituminous coal & lignite—

—

■"Subject to current adjustment.
ESTIMATED PRODUCTION OP

June 9,

* June 8,

June 9,

June 1,

June 8,

1945„„
262,303,000
1,924,000

PENNSYLVANIA ANTHRACITE AND COKE

Penn. Anthracite-

tem as,
without

—but

tCommercial produo.
United States total—

-Calendar Year to

June 12,

1946

1945

1937

44,000

749,000
719,000

1,265,000
1,214,000

25,873,000
24,837,000

22,716,000
21,807,000

25,946,000
24,649,000

47,000

8,900

333,200

1,305,000

2,641,800

1,670,600

coal shipped by truck from
to revision. §Revised.

authorized

"Includes wastry and dredge coal and
tExcludes colliery fuel. ^Subject

"No Need ioi

and, of more importance, as
long as there is an opportunity in
that Cabinet to serve the cause
of

the people's progress without
sacrifice of personal integrity and
without compromise of personal

principles—I shall continue to do
my part in the fight for progressivism in the Democratic party in¬
side the councils of government in
Washington.
You

fight

(Continued from first page)
effort
all doubt
reactionary Re¬

beyond

insure

the election of

publican—give him the name of
whatever

you

name

'want.

J Third

Party

Serve

Will

the issues involved—both the im¬

Useful

Function

party can serve no useful function
now or in the
immediate future

The
underlying spirit of the indepen¬
in

national political life.

our

voter

dent

—

whether

worker, a farmer, a professional
man or merchant—is the progres¬

And the Democratic
party has served well the pro¬
gressive cause.
The measure of good that the
people get out of their govern¬
ment, on a lasting basis, is just
sive

spirit.
,

the

about

measure

what

the

people put into their government.
It is the measure of their political
alertness — and
their
political
action,

First, then, let

The

progressive forces of this country
have

basis; today

for disillu¬

sionment in the Democratic party

instrument of national
progress.
"
5 The
independent
progressive
as

y an

voter

who

turned

the

Demo¬

cratic party for national leader¬

ship — after full disillusionment
elsewhere—well knows the facts
of

political

life.

Be knows all

about the obstructionists to prog¬
ress

high Democratic councils.

national

for

cause

recent

look into the
concern

political facts, the independent
progressive voter knows that the
Democratic New Deal has given
the nation more real progress than
it ever knew before.
And I say
that this is an unchallenge¬

well

our

economic

that

and national prog¬

ress, but who
the legislative

also gave to him
tools with which to

the

job.

This fact alone is sufficient
dence of what I mean by

evi¬

the peo¬

labor

costs

not have any

trappings of totalitarianism.
the best labor force of

We have

But we

They

fun.

for

just

know

and

inherent
in
political
If we need
political action.
:
off—then let's

alertness and

spell of cooling
one.
Let's

take

physical hardship and
mental anguish that are incurred
when they invoke their last and
final weapon—their lawful right
to strike.

Siftce

need

can

major

these

and

woman

man,

work

done their best to block the peo¬

ple's

progress
line.

come

the

South

further

than

We must work continuously

seek

And

vetoed

He vetoed this bill
a

people have a definite chal¬
lenge—the same old challenge of
The

alertness

political
action.

in
simple
to an inescapable
namely, that no problem
should be, or can be, settled on
the basis of day-to-day
emer¬
stated

points

fact:

the continua-

tJOD of the Democratic Neiv
—and the people, again, gave

Deal
their

overwhelming approval. And
when the burden of the Presi¬
dency fell

upon

he reaffirmed

what they put in¬

only

kno\y
Eleven
in succession you have sent
J. Cochran to the House of

times
John

St.

Louis,

you

Representatives—and he has never
wavered

Harry Truman,

this New Deal pro¬

gram fully and completely.
This New Deal program

his

support

the

Democratic New Deal.

progress

This program was

political

and

They will get out of gov¬

ernment

the Congress that passed
the Case Bill, there is still a les¬
son from which we can all profit.
ing in

lesson,

the

to the people themselves.
people get progress—or they
don't.
The answer is up to them.

in the unconscionable maneuver¬

terms,

con-r

longs

You

This

and

fear

this

well what I mean by this.

completely un¬
warranted and unjustifiable at¬
tack on the rights of labor.
And
was

in the

of political reaction every¬

Here

because

tak

South—there

the

people's progress.
Progress is something that be¬

to it.

has

consternation

sternation is all to the good of

trial peace.

Truman

governorship

victory for those

outlaw the poll

and

fear

The

The Case Bill Veto

Since the victory of "Big

Alabama—a

and full em¬
ployment.
We
must have
job
security at an adequate annual
wage — a job security that will
provide an ever-increasing stand¬
ard of living for all our people.
This is the road to lasting indus¬

full production

Jim" Folsom for the

who

some

South.
But
ferment of

the

from

tion

side,

participants in this coali-r

the

Democratic

the

where.

President

the

even

Democrats

Southern

The

camps

stabil¬
ized and legal framework of dem¬
ocratic negotiation.
clearly-defined,

the Case Bill.

And

progressive
forces
in
Congress
fought tirelessly to give us the
tools to do the job, the same old
reactionary coalition continued to
stand in the way of this progress.

within

straight

right

—

the

down

settlement of major labor disputes

must

that

elements

reactionary

possible assistance to the

must

in the
Congress of the United States have
the

everywhere

But

need

lend all

that.

and

that

You know, as I know,

stoppages, the government should

Missouri Vflley

have?

change.

every

flood control

things

progress

that

valley

river

and

their

their
we start
political alertness down the road of forced labor.
and political action.
Surely, we as a people—we who gency.
Such problems must be
So to you here tonight—know¬
possess that great intangible sub¬ settled on the basis of long-term
ing full well that you are repre¬ stance known over all the world
interest for the general welfare.
sentative of the progressive spirit
as the American Know-How—can
Even before his death, Franklin
throughout the nation—I say that
golve this problem without re¬ Roosevelt had outlined the path
the course of progress still lies in
verting to the law of the jungle,
the Democratic party.
And that and without recourse to the meth¬ of our postwar progress here at
home—the program of action still
course
is open as long as * free
ods of absolute statism.
■
necessary to remove the causes
men and free women continue to
of insecurity in our national life.
be conscious of the power and the
A Cooling 6ft Spell
investment

develop¬
projects.
right here in St. Louis, I say-

only too well the

child in the United States

Authority—and we need it now. >
But
what
happened to these

disregard for not only the

families

im¬

This, then; is the course thit l frankly say that it is the last half
yet brazen, coalition of reaction¬ urge upon ail -of you. For this is of the seventh inning. Let's stand
the course that J am following
aries in both parties.
up and stretch.
Let's quit throw¬
And he
knows, too, that this coalition is myself—as a New Deal Democrat ing pop bottles at the umpire be¬
who believes that this is no time cause we didn't like his decision—
no newfound symptom of bi-par¬
to surrender to any force of de¬ and let's not
forget that, as the
tisan reaction—for this coalition
featism—whether in Washington
was
at -work
against Franklin
umpire, he called it the way he
or anywhere else.
saw
it.
Then
let's get back to
BoOsevelt and against the people's
The course of honest men must the game. Let's get back to find-;
progress': even before we were
be broad enough for honest dif¬ ing a sound and democratic pro¬
forced into World. War II.
He knows all about the shameful,

attitude

and

program;

And

including
ments

management

housing

provision for useful public works,

that

fact

security

tional

forget that workers do not strike

form of restraint upon both

nation in the world.
won't have it long if

also has

general welfare.
Let the chips of responsibility
fall where they may—but let's not

each part

any

the extension of

measures as

social

rights of labor, but also a wilful
disregard for the rights of the

management and labor in the in¬
terest of the general welfare. But
of the

the

those

maintained

wilful

situation, how¬

this restraint must

We need—and must have-

such

of management.

overlook

some

ever, is not new to us.
We are
is not attribut¬ still a
young and virile country—
able to the greatness of Franklin
a country whose economy is still
Roosevelt alone.
No one man, in
far from being mature. And many
our free way of life, can achieve
times
in our history,
we
have
such ends without a popular will
found it necessary to recognize
behind him. And it was the inde¬
that our laws and our practices
pendent progressive voters of this
required revision if we were to
country—those who hold the reins continue our national
progress.
of our national political power—
We now have learned the hard
who gave to Roosevelt not only
way that in some areas of our
the mandate to do a job that had
economy it is necessary to find
to be done in the interests of na¬

tional security

there

labor,

leaders

not

must

implementation by Con¬
of the Employment Act of

1946.

government is going to be
impartial in dealing with labormanagement relations—impartial
in the interests of all the people
—then your government must as¬
sess
blame where it belongs.
It

But this progress

some

for
of

full

gress

If your

tion.
kind

We need—and we must have-^
a

the part of some

stubbornness on the part

every

This

been

system has be¬

and

means,

dependent
other part—just as you
know that our present laws and
our
present practices have not
quite caught up with the level of
our
complex economic organiza¬
on

search for this effec¬

democratic

affected

know

bills.
•

free

leaders

between the

the

need—and must have-^a real na¬

as we

and

stubbornness

labor-management

management,

been

must realize that if there has been

brought into bold re¬
lief the question as to whether a
of

also must realize certain facts. We

And
tive

us.

conflict exists

contributed

have

provisions to 'all
American
workers;
health and
medical insurance for all; and a
minimum
wage
provision.
We

crises have

come

ple receiving a full return on

% I say, in all sincerity, that the

issues.
they are

The Labor-Management Crisis

Real Progress

able fact in our history.

Secondly, and basically, a third

•i

that

know

you

You

Yet, despite all these unhappy

to you

the

You know

I do.

has

also

that
has given us the solution to the
great bulk of our postwar labormanagement difficulties.

and of the public.

New Deal Has Given

is concerned, a third party

Bricker

well

nature

year.

collective bargaining process

have

the

know

rights

Third Party"

serv¬

the right to do business
monopolistic interference

—

basic

would

condition for

Date

June 9,

June

1946

^operations.

mediately upon

j. Beehive coke—

is not

cence

blind acquies¬

ice in the Cabinet of the President

And

June 9,
1945

46,000

coll. fuel

Total incl.

long

experience in the coming
Holding tight to price con*
trols during the transition period

may

would

inseparable.

Week Ended

§June 1,

for the industrial strife which we

industrial peace than any number
of restrictive and oppressive labor

mediate and the long-term

(In Net Tons)

tJune 8,
1946

And

ground between
For not

a common

butchering of OPA will be
responsible as anything else

only is this process as much a
part of our free enterprise sys¬

703,000 tons, or 93.9 %»when compared
a decrease of 1,219,000 tons, or 96.4%,
Hvhen compared with the corresponding week of 1945. The calendar
year to date shows an increase of 13.9% over the corresponding

Butchering of OPA
The

labor and management.

—

ped to 46,000 tons, a decline of
Iwith the preceding week, and

as:^he basis for

tive bargaining"

minds. No President has
facilities hfe now penriitted to receive i$> to (dosed
ever found strength in the blind
60% of the supply they obtained during the past fuel year, April 1, acquiescence of members of his
And
no
President—
1945 to March 31, 1946.
Those domestic users who do not ordinarily Cabinet.
worth his salt or the people's salt
store soft coal are still limited to ten days' supply, or one truck load,
wants
blind
acquiescence.
'carload or barge lot if they ordinarily obtain coal in that way.
Franklin Roosevelt never asked
Due to the work stoppage among the hard coal miners, produc¬ for it and
Harry Truman has never
tion of Pennsylvania anthracite during the week ended June 8 drop¬ asked for it.

!-By mkfce

strife.

We must do this without weak¬

„In the years since then, I

ress.

basic

are

industrial

our

some

of the Memorial Day

servance

have

another

friend

Congress

from

St.

But too

Louis—John B. Sullivan.

of you slumbered at the
polls on the off-year election day
of 1942—and John Sullivan lost
many

by only 565 votes.
year—another off-year-*

out that year

This
you can

not afford such slumber-,
For the na^-

ing on election day.

tion's progress needs every Coch¬
and Sullivan it can get.

ran
~

Of such is the

challenge to the

people. And the Democratic party,
in its appeal for the people's sup¬
port, also faces a challenge. It is
the challenge of living up to its
heritage of progressive leadership
—a heritage that is as old as the
birthright given to it by Thomas
Jefferson and Andrew Jackson—r
a

heritage that is las new as

the

Wilson
of Franklia

New Freedom of Woodrow

and

the

New Deal

Roosevelt.
If

keep the faith with

** %
these

carnipt fail. For the peor
ple of this country believe in the
ing the immediate and long-term progressive cause. They are still
uncertainties in our economic life on the march.

vides the only basis

pro¬

for eliminat¬

men, we

Volume

163

Number 4500

THE

COMMERCIAL & FINANCIAL CHRONICLE.
3407.

Eteciric Hufpiif for Week Ended June
15,1946
7.8% CeloivTlial for Same Week a Year
Ago
Edison Electric
Institute, in its

Wholesale

Food

Price

week, according to Duri & Brad¬ increase!! 47%
above the "same
Unchanged — The wholesale food street, Inc., in its weekly survey period
last year. This
compared
price index, compiled by Dun & of trade. Total volume was con¬
With an increase of 33
% in the;
Bradstreet, Inc., for June 11 held siderably above that of the cor¬ preceding
week.
For the four

The

Index

unchanged

the

responding week last year with weeks ended June
8, 1946, sales
the largest dollar gains in seasonal rose
by 42% and for the year to
power industry
ended June 15,
wearing apparel, foodstuffs, and date by 33%.
was
1946,
\
4,030,058,000 kwh., which compares with
4,348,413,000 kwh. in the corresponding date, last year, a household furnishings.
Father's
corresponding week a year ago, and
rise
of
2.7%. Eggs and steers Day shopping resulted in a
3,920,444,000 kwh. in the week
high
'ended June 3, 1946.
Business Failures in
The output for the week
slightly
ended June 15, 1946, advanced
during
the dollar volume in gift and men's
May
;was 7.3% below that of
the same week in 1945.
week.
There were no declines.
wear
y
lines.
Business failures In May werd
An increasing ten¬
^
The index represents the sum
higher
in
dency
for
consumers
number
to demand
but lower in
PERCENTAGE DECREASE UNDER SAME
WEEK LAST YEAR
total of the price per
pound of 31 quality in high and low-priced amount of liabilities involved than
mated

peak

level of
$4.21 recorded a week earlier.
This compared with
$4.10 on the

current weekly
report, esti¬
production of electricity
by the electric light and
of the United States for the week

that

the

V-

•

JNew

England

June 10

-West

Rocky Mountain—.
Pacific Coast.

Total Un.ted

June 8

§0.1*

Middle Atlantic
"Central Industrial

Central
Southern States

States

...

June 1

0.3

3.7

4.4

5.0

5.2

12.5

15.1

12.0

1.0

4.0

9.4

12.1

2.0

14.1

15.1

§7.2

12.1

0.5

§12.9

7.1

§7.3

7.5

10.4

9.8

7.3

9.4

11.0

9.0

Warch

March

1945

4,000,119
...

3,987,877
4,017,310
3,992,283
3,987,673

March 30

April 6
April 13

4,014,652

4.332,400

{April 20
April 27

May
4
May 11__

3,987,145
3,976,750
4,011,670
3,910,760

4,411,325
4,415,889
4,397,330
4,302,381

May 18
May 25
June 1
June 8

3.93.9.281

4.377.221

3.941.865

4.329.605

3.741,256

Kilowatt-Hours)

June 15

June 22
Juno 29

1944

1932

1929

—10.6

8.7

4,464,686
4,425,630
4.400.246
4,409,159

3.920.444

4.327.028

4,030,058

4,348,413

7.8

4,408,703

1,702,571
1,687,22?
1,683,262
1,679,589
1,633,291
1,696,543
1,709,331
1,699,822

;

held about
and

even

with last week's

estimated

was

about

17%

cash

grain markets in
with all prices
holding
at ceilings. With the

the

Women's

week

millinery,

footwear,

4,344,188
4.336.247

1,429,032

1,688.434

1,436,928

9.1

4,233,756
4,238,375

1,435,731

4.245.678

Washington.

—10.0

1,698,942
1,704,426

1.425,151

1,705,460

9.0

4.291.750

was

1.615.085

demand. In the men's
lines, suits
and
shirts continued the most
sought for items. A slight

liabilities

1,381.452

of the

down

7.7

4,361,094

7.3

4,307,498

9.6

—

the

were

market

price

awaited

the

control

outcome

development

dollar

Sales volume in oats
than double that of the

1,435,471

1,689,925

4.2R4.P00

1.441,532

1,699,227

4,287,251

1,440,541
1,456,961

1,702,501
1,723,428

Weather

1.341.730

1,592,075

the

and

new

higher

conditions

ceilings.
generally

favorable for winter wheat
harvesting in the Southwest.

were

The bulk of the
said

larger

corn

weather.

crop was

Women's ready-to-wear
plentiful with the
decorative styles in greatest

dresses

4,144,490

easing
supply of men's suits was

reported.

Straw

moisture conditions ideal. The De¬

hats,

especially

selling
high levels.

one

month

ago

week

ago,

49.2%

and

88.8%

one

year

ago. This represents an increase of
8.1 points 01* 10.6% from the
pre¬
vious week.
*

This

occurring

Electrical Production—The Edi¬
Electric Institute reports that
the output of
electricity increased
v

and

week

3,920,444,000 kwh. in the week
8, 1946, from 3,741,256,000 kwh. in the preceding
week.
Output for the week end¬
ing June 8, 1946, was 9.4% be¬
ended June

that

for

the

corresponding

weekly period

one year ago.
i* Consolidated
Edison Co. of New

York

reports

output

system

173,100,000 kwh. in the week end¬
June 9, 1946, compared with

165,300,000

kwh.

for

the

corre¬

sponding week of 1945,
crease

or an in¬
of 4.7%. Local distribution

marked

weeks

the

that fail¬

Two
cerns

out

failing

three

this

$5,000

the

week

con¬

suffered
These

more.

last week

and

week

same

failures

the
a

reported in

year ago.

Small

involving liabilities

under

$5,000 numbered 4,
exceeding by
1

the number

year

there

were

week

ago.

only half

small failures.

Failures

were

trade

total

industry

had

than

was

con¬

Freight

Loading—Car

powers of the Office of Price Ad¬
was

the

underlying'

than

the

comparable

week

1945. Commercial
service, up from
to
2, was the only other
group in which concerns
none

Gains

country

from

26% above that of the correspond¬
ing week a year ago.
Regional

Rising to

percentage increases were: New
England 16 to 20, East 27 to 31,

high ground for the
current prices are at the
new

season,
best level since the 1923-1924
crop
season.
Activity in spot markets

increase in domestic mill con¬
cotton was a contrib¬

the

market

im¬

provement, as was the continuance
of unfavorable weather
conditions
with

its

adverse

crop

effects

prospects.

this

Consider¬

One

ported sales under the Cotton Ex¬
port Program for the week ended

June

year

the

ago.

22,100 bales, from

week

in the week preceding.
Total registered sales for the sea¬

through June
1,563,000 bales.

son

Conditions
market

Canadian

fell to

failure

was

re¬

week,

were

the

were

placed

Middle West 24

28, Northwest
25 to 29, South 21 to
26, Southwest
17 to 21, and Pacific Coast 20
to
24.

quiet during
although handlers of

wool

the
do¬

freight for ported, as compared with none in mestic wools
reported some trad¬
the week ended June 8, 1946, to¬ the previous week
and 1 in the ing in fine* and
half-blood terri¬
taled 830,126 cars, the Association
corresponding week of 1945. tory types, owing to the difficulty
of American Railroads announced.
May* Building Permit Volume in securing desirable wools of for¬
This was an increase of
203,241 Shows
eign origin.
Spot foreign wools
Sharp Expansion
cars
May
(or 32.4%) above the pre¬
were slow with
witnessed a further mild
prices very firm.
drop in
ceding week and 54,532 cars, or
South American
the
total
primary markets
valuation of building
6.2%
below
the
corresponding
held
permits issued in the
strong at the recently ad¬
week for'1945.
country as
Compared with a
vanced
levels.
Domestic wools ap¬
whole. Last month's
the similar period of 1944, a de¬
aggregate
for 215 cities
praised for purchase by the CCC
reporting to Dun &
crease
of 43,048 cars, or
4.9%,
Bradstreet, Inc., however, came to during the week ended May 31
is shown.
$224,259,274, far above the average totaled • 11,836,680 pounds. This
Paper and Paperboard Produc¬
monthly volume for recent years. brought aggregate appraisals of
tion;
Paper production in the It was 6.8% smaller
1946 wools to that date to
than the April
56,117,United States, for the week ending
figure of $240,548,790, but rose to 397
pounds,
against
66,954,005
"une 8, was 104% of mill
pounds
capac¬ about three times the sum
appraised
to
the
same
date
of $75,ity, against 96.3% in the preced¬ 397.122 recorded in
last year.
May 1945.
ing week and 92.8% in the like
New York City
permits for May
Wholesale and Retail Trade
45 week,
according to the Amer- were valued at
$42,376,957, com¬ Despite unsettled weather condi¬
can
Paper & Pulp Association. paring with $37,499,107 in
tions
April,
throughout the country^ re¬
aperbcard output for the current and
$11,104,645 in May last year.
tail
volume
rose
slightly this
—

—

Wholesale

failures

from

May

were

in April and
lowered to $16,000
from $629,000. Retail failures in
May numbered 26 with $1,323,000
liabilities as against 25 with
were

liabilties

Wholesale
above

rose

week

and

above
week

that
a

volume
that

this

the

continued

When the country is divided in¬

week

Dallas

fewer

Reserve

failures

for

corresponding
Steady but slow

the week

ended

June

8,
1946, increased by 39% above the
period of last year.
This
compared with an increase of 32%
(revised figure) in the preceding
same

week.

For- the

36%

four weeks

ended

1946, sales increased by

and for the year to date

was

for the past week

stimulated

for Father's

lineage
48.3%

over

by heavy buying
Day. Store advertising
the

week

advanced

the like period of last

year. A moderate gain was noted
in book clearings and new auto¬
mobile registrations continued to

rise.
Due in large part to the
scarcity
of meat, food sales reflected a de¬
cline for the week. There was a

lagging tendency in primary cot¬
markets as Congress entered
upon the final phase of action on
the new price control' act.Activity
ton

was

confined to little
spot business.

Districts had

May

than in
April, the Richmond and Kansas
City Reserve Districts had the

number, while the remain¬
ing districts had more insolvencies
May than in April. When the
same

amount

liabilities

considered

involved
that

seen

Philadelphia, Cleveland,
St.

Louis

and

the

San

Reserve Districts had

the

Atlanta*
Francisco

liabil¬

ties involved in May than in April,
while all of the
remaining Dis-?

trists had less.

The

Minneapolis

and Dallas Reserve Districts

not

failures in May.

were

having any

Communist Movemeat
Feared by House Group
A

report

mittee
made

than

According to the Federal Re¬
serve
Bank's index, department
store sales in New York
City for
the weekly period to June

the

House

un-American

public

Com¬

Activities,

June 7, declares

that a Communist movement in
the United States is supported
by
Russia and that its leaders "openly
have proclaimed that it advocates

revolution

and the overthrow of
present Government of the
United States", Associated; Press

the

advices

Urging

from
Washington, state'.
individuals, organizations

the

and

27%.
Retail trade

well

the

year ago.

Districts, it is
Boston, Minneapolis

ound that the
and

gains in supplies have been noted
in
many
lines
although acute
shortages exist in some.

dex

to Federal Reserve

distinguished

June

Boston

were

volume for the

estimated

were

volume

factor in the further enhancement
of cotton values in the
past week.

failing 36,400

revenue

was

pres¬

fact, did not have any failures. Al¬ able replanting was reported ne¬
Department store sales on a
though 1 below last
week, manu¬ cessary in Arkansas, northeastern country wide basis, as taken from
facturers failing, at
5, were higher Texas, and eastern Oklahoma. Re¬ the Federal Reserve Board's in¬

year.

of demand great.
in
the
sales

Retail

the

and

price-control legisla¬
noted
pending in Congress,
drugs.
would greatly curtail the

ministration,

from

34 in April but
down to $2,066,000
May from $2,734,000 in Aprih

000

underway. Building
redecorating supplies were

and

now

which

tion

sold well as gifts for June
brides.
Interest in sporting goods
grew as preparations for summer
vacations got

sure

Proposed

$249,April. Construe-'
involvencies in May num¬
More soft goods such as towels
bered 8 with liabilities of
were
$191,000
appearing
in
the
stores.
compared
with 7 in April with
Curtains and draperies attracted
a
liabilities
of
$133,000. Commercial
large amount of consumer buy¬
ing. A contra-seasonal gain in the Service failures in May were up
sales volume of housewares oc¬ to 13 from 5 in April and liabili¬
ties were up to $60,000 in
curred
and
May
supplies
increased
slightly. Silverware, when avail¬ from $40,000 in April. ;
I
at

extremely limited

this week.

failing; wholesale trade, in year's

as many as
the previous

Railroad

price

products, due

increased, with
mills
showing
many greater interest in making forward
commitments. The probability of

three-fourth of the week's
failures. No other line of
cerns

OPA

new

dairy

an¬

Last

most numerous in

300,00ft kwh. for the correspond¬ just
ended, two-thirds
ing week of last year, an increase in last week
and in
of 3.3%.

nouncement

chedules for

manufacturing and retailing, with sumption (ft
these two lines
accounting for uting factor

were at

pending

tion

large failures, at 8, showed
slight decline from the 10 reported
the

Butter and cheese markets
a
virtual standstill

have dipped below last
year's

ures

record.

electricity amounted to 169,- outnumbered ' those
700,000 kwh. compared with 164,- Four retailers
failed

loadings

corresponding

This

six

of the

the

1945.

first time

son

both

week

losses of

week's

operating rate is
equivalent to
1,483,900 tons of
Steel ingots and castings and com¬
pares with 1,341,200 tons one week
fcgo, 867,100 tons one month ago
and 1,626,500 tons one
year ago.

low

failed, 1 short

April.

Manufacturing failures in May
rose

liabilities

the better
grades, continued to sell
well. Stocks of shoes remained
low
but the volume of

planted, with acreage
maintained
anticipated
and

than

than in

were

week as 96%
against 85% in the partment of Agriculture in its
major farm equipment producers
preceding week, and 97% in the June 1 report forecast a wheat
plants. The principal problem of
yield
for
1946
of
corresponding week a year ago.
1,025,509,000
Other farm
equipment plants is
bushels.
Business Failures at Low
Although marking the
the securing of
Level
components from
consecutive
—Commercial and industrial fail¬ third
billion-bushel
suppliers rather than steel.
ures in the week
The American Iron and
ending June 13 harvest, it is felt by many observ¬
Steel
ers
to
be
insufficient to meet both
remained at a low
Institute announced on
level, reports
Monday of Dun &
foreign and domestic demands. able,
this week the
Bradstreet, Inc.
Twelve
operating rate of
concerns

involved.

of
summer
clothes considered only the manufacture
adequate as heavy buying ing and the wholesale groups had
Chicago Board of Trade drop¬
has
been
ped to extremely low levels, as the
delayed by cool or rainy less liabilities involved in May

7.3

the duration of strikes at
two

led

volume of women's
apparel items.

Inventories

4,325,417
4,327,359

accessories

exception of
oats, trading in grain futures on

previous week with prices strong

—

and

nominally

—11.0
—

liabilities

of the Wholesale
group, had more
failures in May than in
April;
When the amount of liabilities
is

8.8

—

(Continued from page 3399)

76.1%

9.9

—

4,353,351

industry will
be 84.2% of
capacity for the week
beginning June 17, compared with

amount

—

4,358,277

steel companies
having 94% of the
fcteel capacity of the

April, When compared with
May a year ago, business failures in
May were higher in number and

—

9.3

—

The State of Trade
On

1,538,452
1,537,747
1,514,553
1,480,208
1,465,076
1,480,738
1,469,810
1,454,505

—11.1

4,203,502

noted.

was

Over-all food volume this week

Price

lifting the general above that of the corresponding Business failures in May) accord-*
price level to a new post-war week a year ago.
There was no ing to Dunn & Bradstreet, Inc.,
totaled 92 and involved
peak.
The
Dun
&
Bradstreet easing noted in the availability of
$36,656,000
meat
or
bread. Canned foods ber liabilities as compared with 81 iri
daily wholesale commodity price
index advanced to 195.79 on June came increasingly scarce in
many April, involving $3,785,000 liabiliV
11, from 195.19 a week earlier, and sections of the country. The sup¬ ties and 72 involving $2,208,000 in
177.50 on the
ply of fresh fruits and vegetables May a year ago.
corresponding date
and
a year
All groups into which the
poultry was adequate and the
ago.
re?*'
volume of sales remained
There was very little
port is divided, with the exception
large.
activity in
strumental

under 1945

4,472,110
4,44.6,136
4,397,529
4,401,716
4,329,478
4,321,794

goods

use.

Commodity

Index—The continued rise in cot¬
ton during the past week
was in¬

% Change

1946

3,952,539

{March 16
March 23

(Thousands of

Wholesale

1.5

9.2

DATA FOR RECENT
WEEKS

Ended-

May 25

3.3

Slncrease.

}f Week

foods in general

-Week Ended-

*4 Major Geographical Divisions—-

guard

Government

against

Communists

and

"Communist front"
and

organizations,
advising labor unions to elim¬
Communistic elements, the

inate

committee called

Communism

foreign-controlled movement'?
publicity committed to "renew
class warfare, agitation
between
the races and

in other ways pro¬

mote revolution in this country."

The
radio
were

report

scrutiny .by
their

War

stated

that

certain

commentators, whose names
not mentioned, were under
the

committee

propaganda

Department

activities.

for
The

subjected to
criticism for publishing a pamph¬
in
1945—-identified
only as
"Orientation Fact Sheet No. 64"—
was

let

which

the

committee

contended

supported Communism and was
still being circulated by some or«*

8, 1946, gamzations.

m^<wmmm^vm\t

Civil

Moody?s Bond Prices and Bond Yield Averages
and bond yield ^averages are

computed bond prices

Moody's

Prepare Elections

Construction—.

Public Construction
MOODY'S BOND PRICES

(Based on Average
1946—

Dally

U. S.

Avge.

Govt.

Corpo¬

Averages^.
June IB/—I

•

Bonds

124.20

118.80.

124.17

118.80

124.17

t^pWTTT*'"

r.>

12.

High'1; 1946—
I9462ii—

Low

1 Y£ar

•

June

Ago

P. TJ.

Indus

116.02

119.20

121.46

123.56

121.46

118.40

112.56

116.02 •

119.20'

121.25

118.40

112.56

116.02

119.00

121.25
121.25

123.34

124.17

118:80

123.34

121.25

118.40

112.56

116.08

119.00

118.80

123.34

121.25

118.40

112.56

.116.02

119.00

121.25

124.02

118.8*6

123.13

121.46. ,118.40

112.56

116.02

119.20

121.25

124.02

118.80

123.13

121.46

118.40

112.56

116.02

119.00

121.25

118.40

112.56

116.02

119.00

121.25

Closed
123.13

118.80

123.13

121.25

118.40

112.56

116.02

119.00

121.04

124.02

118.60

123.13

121.25

118.20

112.56

116.02

119,00

121.04

124.02

118.60

122.92

121.46

118.20

112.56

116.22

119.00

121.04

124.02

118.80

123.13

121.46

118.40

112.56

116.22

119.00

121.04

Closed

123.99

118.80

122.92

121.46

118.40

112.56

116.22

119.00

121.04

123.99

118.80

123.13

121.46

118.40

112.56

116.22

119.00

121.04

124.14

118.60

122,71

121.46

118.20

112.56

116.20

119.00

121.04

123.83

118.80

122.92

121.46

118.60

112.75

116.41

119.20

121.04

119.41

121.04

124.49

119.00

122.92

121.67

118.60

113.12

116.61

124.33

119.00

123.34

121.25

118.40

113.12

116.41

119.41

121.04

125.30

119.61

123.99

121.88

119.20

113.89,

117.20

120.22

121.67

114.27

117.60

120.22

121.88

125.77

120.02

123.99

122.29

119.61

125.92

120.02

123.99

122.29

119.61

114.46

117.60

120.22

122.09

125.61

119.82

123.99

122.29

119.41

114.27

117.40

120.22

122.09

125.74

119.82

123.77

122.29

11941

120.22

122.09

114.08

117.20

125.80

119.82

123.77

122.29

119.20

114.27

117.00

120.22

122.29

125.86

119.82

123.56

122.50

119.20

114.46

116.80

120.43

122.29

125.84

119.61

123.56

121.88

119.20

114.27

116.61

120.22

122.09

120.22

122.09

126.02

120.22

123.34

121.88

119.00

114.27

116.41

126.28

119.00

123.12

121.25

119.00

113.31

115.63

119.41

122.09

119.61

114.46

117.60

120.43

122.50

117.40

112.19

114.46

117.80

120.63

126.28

120.02

124.20

122.50

123.45

117.60

121.46

119.82

1945-

18.

R.R.

123.56

Stock Exchange

2J—r—
25-^,,;

Baa

112.56

124.11

124.02

Jan:

118.40

118.80

Stock Exchange
124.02
118.80

Peb

Corporate by Groups*:

Closed

Stock Exchange
1

Aaa

rate*

123.05

115.82

12084

119.41

115.82

107.80

112.75

115.24

119.61

120.01

112.19

118.40

116.61

112.00

102.63

105.86

113.70

117.20

YtearAAgd
June

)7. 4944.

MOODY'S BOND YIELD AVERAGES

vjr
X.

.Air.

...

•

U. S.

Avge*.

Govt.

Corpo¬

ft V'

1.47

2.85

2.70

2.59

13—

2.85

2.70

2.59

12—

1.47

2.71 *

2.49

2.59

2.73

3.03

2.85

2.70

2.59

1.47

2.71

2.50

2.58

2.73

3.03

2.85

2.69

2.59

1.47

2.71

2.50

2.58

2.73

3.03

v2.85

2.70

2.59

2.85

2.70

2.59

Stock Exchange Closed

-.1

•

ssiBEZ
18_,_,

;; 12—
A'

29„/^___
22,

'' {Y

CM rri y-t:

:x>'

2.59

2.73

3.03

2.50

2.59

2.73

3.03

2.85

2.70

2.60

2.74

3.03

2.85

2.70

2.60

1.47

2.72

2.50

1.47

2.72

2.51

2.58

2.74

3.03

2.84

2.70

2.60

2.50

2.58

2.73

3.03

2.84

2.70

2.60

2.71

2.51

2.58

2.73

3.03

2.84

2.70

1.48

•2.71

2.50

2.58

2.73

3.03

2.84

2.70

2.60

2.84

2.70

2.60

3.02

2.83

2.69

2.60

Pats and Oils

2.68

2.6C

Cottonseed Oil

2.51

2.57

2.72

3.00

2.70

2.49

2.59

2.73

3.00

2.83

2.68

2.60

2.67

2.46

2.56

2.69

2.96

2.79

2.64

2.57

2.54

2.67

2.94

2.77

2.64

2.56

1.35

2.65

2.46

1.34

2.65

2.46

2.54

2.67

2.93

2,77

2.G4

2.55

1.36

2.66

2.46

2.54

2.68

2.94

2.78

2.64

2.55

livestock
17.3

Fuels

10.8

Miscellaneous commodities

Textiles

2.47

2.54

2.69

2.94

2.80

2.64

2.54

7.1

Metals

2.48

2.53

2.69

j 2.93

2.81

2.63

2.54

6.1

2.55

1.3

Building materials
Chemicals and drugs

2.55

2.67
2.67

2.48

2.56

2.69

2.94

2.49

2.56

2.70

2.94

2.82

,2.64

„

f. 2.64

2.83

2.50'

2.77

2.58

2.66

2.78

3.05

2.93

2.76

2.62

2.65

2.45

2.53

2.67

2.93

2.77

2.63

2.53

1.31

2 87

2.99

2.70

(','2.68

1.59

2.86

2.68

2.61

2.86

3.29

3.02

2.89

2.67

3.59

3.40

2.97

2.79

144.6

144.0

147.4

145.2

163.1

All groups

100.0

June

base

166.0

162.7

161.5

162.4

131.4

130.8

132.0

138.6

138.4

133.7

168.4

166.1

157.3

122.2

117.9

108.9

168.1

167.8

155.4

127.5

125.9

127.5

1946,

15,

105.8

June

119.8

119.9

105.8

104.8

141.7

146.9

148.5

116.1;

118.3

118.2

149.0

June

168.1
216.2

192.2

163.5

,105.8

were:

178.4
258.0

190.3

131.4

combined

1926-1928

179.3
267.8

119.8

Farm machinery.—

•Indexes

Year Ago

147.4
147.4

163.1

Fertilizers..YY/--;_-«—.---—Y-

1945

147.4

118.2

—

Jun 16,

1946

147.6

127.5

—

Fertilizer materials

2.55

2.59

•

Aeo

Ago

May 18,

1946

169.6

8.2

2.66

1.34

Jun 8,

190.3

2.66

1.33

Week

Cotton

1.34

2.47

Week

181.1

Farm Products

23.0

2.55

2.64

2.79

2.95

2.68

2.54

—

1.34

1.51

^18, 1945-

3.03

Lowv4946-

17,

Foods-

25.3

2,74

2.70

1946,

115.7;

and

1.80

3.06

2.82

2.73

3.05

t •These

prices are computed from average yields on the basis of one "typical" bond
maturing in 25 years) and do not purport to show either the average
level or the average movement of actual price quotations.
They merely serve to
Illustrate in a more comprehensive way the relative levels and the relative movement
of yield, averages, the latter being the true picture of the bond market.
,
«
the averages was given in the Nov.

22, 1945

of Cnpiier Sialistics

Latest Summary

coupon,

\
NOTE—The list used in compiling
Issue of the "Chronicle" on page 2508.

May 10 released the

The Copper Institute on

SUMMARY

following statistics
COPPER

BY MEMBERS OP THE

COPPER STATISTICS REPORTED
INSTITUTE

(Refined
'

Stocks

Deliveries

Engineering Construction Totals.
$138,911,090 for Week

Civil

engineering

construction

volume

continental

States totals $138,911,000 for the week ending June

ported to "Engineering News-Record.
the previous week, 135% above

This volume is 24% below

the corresponding week of last year

and 12% above the previous four-week

moving average.

issued On June 13, added:

13, 1946 as re«f;

The report
•

•

Private construction this week, $86,367,000, is 28% below last

week

and

340%

above

the

week

last

year.

Public

construction,

$52,544,000, is 16% below last week and 33% greater than the week
last yehr.
last

State and municipal construction, $29,842,000, 44% below

week, is 475% above the 1945 week.

Federal construction, $22,-

702,C00, is 160% above last week and 34% below the week last year,
'Total

records

engineering construction for the 24-week period of 1946
cumulative total of $2,397,796,000, which is 204%

above

fear

1940—

fear

1941—

Year

1942—

Year

1943—

Year

1944—

Year

1945—

5 Mos.,

1946

992,293
1,016,996
1.152,344
1,194,699
1,056,180
841,667

**'

Jan., 1945—

Feb., 1945—
Mar.,

19451945-

Apr.,

corresponding period of 1945, whereas state
$581,829,000,-to date, is 430% above 1945.

59,^15

6,028

69,950

172,585

76,395

218,488

57,142
51,861

74,469

72,271

85,319
74,377

139,203
94,031

i63,841
70,738

July,

1 76,166

1945-

72,855

72,995

88,661

1945,

68,253

69,127

86.8

80.^16 *

Aug.,

Sept.,

1945-

64,091

45,145

83,47!

68,675

Oct.,

1945-

69,322

Nov.,

1945.

65,586

70,363
70,218

104,104 V
119,973 St

Dec.,

1945-

62,641

66,062

103,464 :.

Jan.,

1946-

58,178

1946-

41,667

69,008
49,923

115,601 ;.

Pel)..

58,590

18,989

20,551

31,712

75,756

tBeginning

;

•

*'?■■■•'. —S '

93,647

March,

?At

refineries

;

16,713

67*208
10,255
13,188

14,659

9,732
758

—

7,065
2,573

2,454

—

142

1,044
—10,850
2,106

5,281

—

Attention

also

called in the

certain instances in the
of political violence* as
that all mem*
bers of the Government have not
received
equal
opportunity tp
note, to

country
well

to the fact

study pending legislation and de*
crees. Stating that the impressiort;
is

being

Rumanian

created

broad that the

Government "is in real¬

circumventing

ity

which it has

commitments

made," the note urges
taken "without de*

that steps be

lay to see that it be dispelled,"
through "promulgating ari elec¬
toral law and setting a date for:

elections, at the same time taking
adequate
measures
during ; thi£

ply equally to

members of all such

-3,592

8,388

6,897

140

—

874;

—

+18,946
—

w
—

5,428
4,150

+
+
—

11,641
5,238

1,041

4,632

512

3,421;

2,087

8,256

—

74,339

—

70,249

21,693

65,448

10,291

—

75,754

11,161

—

3,713

1,540
4,090

4,801

10,300

Including scrap,
foreign copper for

consignment ;and in exchange warehouses,
plants or warehouses, ; >

but not including

consumers' stocks at their

and refined production.
Aj)ril;; 194# have been revised.

{Computed by difference between mine

%£'*4v:fr.

Credit Increase for Finland
Announcement was made on,
the United States, by
an
additional
$5,000,000 credit
June 13 that

grant,

had

raised to $15,000,000

amount of American
funds available to Finland for the
total

the

purchase of American surplus
property in Europe for relief and
rehabilitation purposes. In report¬
ing the credit extension , agree¬
ment, Associated Press Washing-^
ton advices stated that; the am*
nouncement had been made by
Thomas B. McCabe, foreign liquid
4m,

dation commissioner.

:»7;m
?,,,*&:&
■mm

.U'-Y

72,799 i. —10,830

909

;

shipments, and custom intake
1941, includes deliveries of duty paid

domestio consumption.

7^
it}*****"-.

fMIne or smelter production or

NOTE—Statistics for the month of

73,913;
74,425
76,512

—

1,446

145,904

1945-

1945.

—

1945-

>ederal^nstruction, $280,212,000r4ropped 38% below the 24-week
Iota!

76,512

24,059

903

May,

1946-

cumulative total for the

—42,608

20,139

—

52,121 r; —12,172
66.780

55,453

May,

and municipal construction,

f,16,636

75,754

86,089

Refined
—130.270

—48,671

June,

$862,041,000, is 53% greater than the

+17,785

65,309

1,635,236

1,643,677
1.206,871
1,098,788 ' 1,636,295
843.113
1,517,342

Decreases (—)

—

161,111

construction in 1946 totals $1,535,755,000, which is 585% above that
Public construction,

307

{Blister

—*41,417

75,436

29,280

for 1945;

Stock Increase( + )

159,485
142,772
75,564

74,392

1946-

cumulative basis,

1,545,541

67,726

Apr.,

48,537

73,754
67,496
76,537

private

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

1,001,886

202,669

41,832

like period of 1945.

134,152

429,683

1946-

814,407

178,610

Mar.,

the. total'for

Period

Export

(•Domestic

818,289

836,074

1939—

fear

United

Copper

End of

to Customers

Production
*Crude
Refined

U. S. Duty
Free

withinRumania
the prompt
and full distribution of the ad¬
dress of the United States Secre¬
tary of State on Feb. 28," as well
as of other impediments to free
censorship

which had "prevented

and stocks of duty-free copper. parties."

pertaining to production, deliveries

(In Tons of 2,000 Pounds)

Civil

pressed concern over the existence

period prior to elections that alL
democratic parties may put for¬
ward their candidates with the
assurance that the freedoms set
forth in the "Moscow decisions^ ap¬

16, 1945, 110.4.

Ago

1944-

of the Rumanian

The note also ex¬

Government.

dissemination of news.

Jun 15,

1946

Total Index

2.72

'High- 1946

(3%%

Group

Bears to the

2.58

1.38

tion on the part

Year

Month

Latest Preceding

2.58

1.45

elections or an electoral
such elections being pro¬

1935-1939 =100*

Z Vears

WHOLESALE COMMODITY PRICE INDEX

Compiled by The National Fertilizer Association

2.52

2.70

June

WEEKLY

2.51

1.44

law for

advanced and 1 de¬
clined; in the preceding week 8 advanced and 3 declined; in the
second preceding week 10 advanced and 2 declined.

2.72

2.82

The

During the week 7 price series in the index

2.71

2.66

The building materials index

level.

high level because of higher prices for white lead.

1.47

1.31

June

a new

1.49

■

peak.

new

week and reached a new high

Sach Group

Closed

Exchange

1.43

1.35

—

it v ■

2.50

2.71

Stock

Apr.?26—

»■ *

2.71

1.47

the

for

mulgated, the United States note
the week and reached emphasized the impression that
The textiles index Advanced for the fourth consecutive was being created of procrastina¬

remaining groups of the index were unchanged.

3.03
3.03

the

The foods group also advanced during

reached

2.73

Quotations

changes in the grains sub¬

2.58

2.73

There were

2.69

Closed

2.59

higher prices for cattle, sheep and eggs.

down.

were

2.85

2.59

+*.«

3.03

2.59

•••3-—

2.73

2.49

May.r3

2.73

2.58

2.49

2.58

2.48

2.71

2.48

which mock

of violence

application of the freedoms
month ago the index stood at 146.9, and a year ago at 141.7 all based guaranteed by the Rumanian Gov¬
on the 1935-1939 average as 100.
The Association's report went on ernment through its acceptance of
the Moscow decisions."
'. "r£
to say:
Pointing out that more than
The rise in the farm products group, which reached a new peak,
four months had passed since the
was largely responsible for the rise in the general index.
The cotton Government's
reorganization;
subgroup reached a further new peak.
The livestock subgroup, ad¬ without either a date being fixed

2.58

2.71

Ma'r

2.71
2.71

promulgated or date set for the

tions

15, 1946 from 148.5 in the preceding week.

in the week of June

2.69

1.46

*16—

Upward Trend

consecutive week the weekly wholesale commodity elections; and, secondly, the abuses
of the freedoms and particularly
price index compiled by The National Fertilizer Association and made
the increasing frequency of ac¬
public on June 17 reached a new high level when it advanced to 149.0

2.85

1.46

Price Index Continues

political life in Rumania that are
giving concern to the Government
of the United States.
First, the
fact that no election law has been

For the fifth

IndUBf

P.U.

R. R.

Baa

3.03

Stock Exchange
-

■;

Corporate by Groups*

Corporate by Eatings*
1

National Fertilizer Association Commodity

•

Aaa

rate*

Bonds

1.46

,f -

-•

jdne'i8/-^_ •

group.

■"

;

work and drainage,

(Based on Individual Closing Prices)

Daily j/f •?;
A\erage»;',,^-

In the classified construction groups,

•

for lambs

■

1946—' ;; ,:s.

——

waterworks, bridges, earth¬ Berry, had made a formal protest
for his government against the
commercial buildings and unclassified construc¬
failure by the Rumanian Govern
tion recorded gains this week over the previous week.
Seven of the
ment to fulfill assurances givers
nine classes recorded gains this week over the 1945 week as follows:
shortly after the first of this year
waterworks, sewerage, bridges, highways, earthwork and drainage,
to
the
Tripartite * Commission
public buildings and commercial buildings.
which was sent to Bucharest pur¬
to
the
decisions of the Mos¬
suant
;
New Capital
New capital for construction purposes this week totals $24,105,000, cow Conference of Foreign Minis¬
and is made up of $22,027,000 in state and municipal bond sales and ters of December 1945. - The an*
nouncement stated that Mr. Bur¬
$2,078,000 in corporate security issues. New capital for the 24-week
ton had delivered a note to the
period of 1946 totals $637,164,000, 22% greater than the $522,889,000,
Rumanian Minister for Foreign
reported for the corresponding period of 1945.
Affairs on. May 27 in which atten¬
tion was drawn to "two aspects of

vanced reflecting

Municipal

Federal

Corporate by Ratings*

State and

Yields)

U. & Asks jSumania

June 13,1946 June6,1946 June 14,1945
$138,911,000
$182,160,000 $59,216,000
86,367,000
119,838,000
19,644,000
The
State ? Department f an¬
52,544,000 >
62,330,000
39,572,000 nounced on May 31 that several
29,842,000
53,590,000
5,186,000 days earlier the American repre¬
22,702,000
8,740,000
34,386,000 sentative in Rumania, Burton Y*

Total U. S.

Private Construction

given in the following table.

the current week,

construction volume for

engineering

last week and the 1945 week are:
.

f r '>

Thursday, June 20, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

3408

[Mys Daily
Commodity Index

285.2

Tuesday. June 11, 1946————*
Wednesday, June 12

286.0

286.4

n^'vcday. June 13—

286.1

Friday,: June:
286.1
Saturday/ June.' 15-—
286.7
Monday, June 17286.3
Tuesday, June 18—;
284.1
Two weeks ago, June .4—.—
278.8
Month ago,; May 18——i----- ---257.6
Year ago, June 18, 1945—*
1245 High, Dec. 27———-Low, Jan, 24-__—
'•
4946:

Low, Jan. 2

252. Z [

286.7

Higli,+June; 17'

265;0

264.7
£

v.;'',-

tfrV

■

••,

Volume 163

Number 4500

THE COMMERCIAL & FINANCIAL
CHRONICLE

Daily Average Grade Oil ProMontor Week

3403

% Labor Dep't Reports Wholesale

Ensfsd June 8,1940, Increased 139,750 Sis,

Prices Up

tew Commerce tern.
An Incentive
Advisory

For Week Ended June 8

The American Petroleum Institute estimates that the daily aver.&ge gross: crude oil production for the week ended June 8, 1946, was
'^4,895,650 barrels, an increase of 139,750 barrels per day over the pre-

has been appointed

"Price advances for most
commodity groups caused an increase
of 0.4% in
average primary market prices during the week ended
June 8, 1946," it was announced
by the Bureau of Labor Statistics
of the U. S.
Department of Labor on June 13/ which went on to
say:
"At 111.5% of the 1926
average, the index of

iceding week and a gain of 42,236 barrels
dug week of 1945.
The current figure

day over the correspondwas also 225,650 barrels in

per

of the daily average figure of 4,670,000 barrels estimated by
•the United States Bureau of Mines as the requirement for the month
»o£ June, 1946.
Daily production for the four weeks ended June 8,
jexcess

j i3946,

averaged 4,790,500 barrels.

The Institute

further

primary markets prepared by the Bureau
the end of the

mately 4,827,000 barrels of crude oil daily and produced 13,864,000
barrels of gasoline; 1,827,000 barrels of kerosine; 5,441,000 barrels of
distillate fuel, -and 9,015,000 barrels of residual fuel oil during the
-week ended June 8, 1946; and had in storage at the end of that week
S4,146,000 barrels of finished and unfinished gasoline; 13,013,000 bar¬

Allow¬

Week

Calculated

ables

Ended

Requirements

Begin.

June

i»*New York-Penna.

from

June 8,

June 1

1946

48,200

Ended

June 8,

June 9,
1946

1946

3,350

—

50,200

250

■•♦West

8~400

8,150

._{

7,600

(4,059

Virginia—

^•Ohio—Soutneast
Ohio—Other

+
—

{2,300

Indiana
.Illinois

—

18,000

20,850

210,000

208,400

31,000
46,000

31,000
47,400

Kentucky
JMichigan
Nebraska

800

"300

7,950

7,400

1,000

5,550

5,100

450

2,550

2,700

1,050

20,000

11,600

—

2,600

209,100
30,600

201,000
29,000
48,200

500

1,850

46,750
750

900

15,050

256,350

250,050

6,250

377,450

387,400

t750

Kansas

255,000

260,000

t239,450

Oklahoma

380,000

{385,000

flTexas—
Cv District

1_—

District II

District

III

District IV

350

24,250

137,450

69,100

463,600

11,600

220,900

107,350

VII-B

i-!District VIII
District IX

—

5,650

39,700
374,000
104,100

32,400

900

31,700

28,450

27,350

584,200

1,450
90,100

516,600

132,400

2,800

130,300

86,450

150

86,350

District Vll-C.r—

—

19,400

64,000
4,350

326,000

Other Dist. VI
District

229,600
43,950

if District V
i East Texas

19,650

155,650
515,400

District X—

81,050
290,100

•Coastal

Louisiana-- i ■

;I: Total

Louisiana—

380,000

417,000

Li—

79,000
57,000
1,000
98,000

78,268

Arkansas

2,261,500

2,180,450

950

1,350

79,900
291,100

69,150
298,950

400

371,000

368,100
79,150
51,750

371,150

—

.Alabama

Jtfew Mexico—So. East)
Wyoming
Colorado

73,200
63,450

97,600

2,300

:450

400

104,000

350
111,400

3,000

113,600

107,350

22,000

19,350

20,300

30,550

10,950

106,000

§831,000

848,000

4,670,000

1,150
95,900

following removal of subsidies
decrease

103,350

2~050

865,200

4,500

862,900

940,500

+139,750

4,790,500

4,853,414

4,895,650

^•Pennsylvania Grade included above—;
;-^*These

<after

are-

61,400

Bureau of Mines calculations of

deductions

condensate

and

natural

-—

4,050

63,700

59,550

the requirements of domestic crude oil

derivatives) based upon certain
ppremises outlined in its detailed forecast for the month
June. As requirements may
4>e supplied either from stocks or from new production,
contemplated withdrawals
gas

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

tto

weekly

restimates do, however, include small but indeterminate amounts of condensate which is
«nixed with crude oil in the field.

Other Commodities—Prices of
all other commodities rose
0.3%
the average
during the week to a level 0.9% above a month
ago
and 4.9% above a
year ago.
There were sharp price advances for
copper and lead and lead pipe
following upward adjustment of OPA
ceilings to cover higher costs
including wage increases since Febru¬
ary 1946.
Lumber prices were higher with
increases in mill realiza¬
tions for western pine and
ceiling increases for northern hemlock
Prices of pine shipping cases
advanced 20%. There were small in¬
creases for
box board as individual
manufacturers were allowed
higher ceilings. Prices of coated fabrics rose more
than 13% with
ceiling adjustments to restore profit
on

reflected in increased
prices for damask, men's underwear
Gasoline prices continued to advance.

CHANGES IN WHOLESALE
PRICES BY COMMODITY
FOR WEEK ENDED JUNE
8, 1946

Commodity group—

A11

commodities

Farm products
Foods
Hides

leather products
Textile products
-

Fuel

and

days, no definite dates during the month being specified; operators only being
•required to shut down as best suits their operating schedules or labor needed to
operate leases, a total equivalent to 4 days shutdown time during the calendar month.
{Recommendation of Conservation Committee of California Oil Producers.
production is now reported according to Texas Railroad Commission

fiTexas

>..

•;

June 8, 1946, from—
5-11

1946

{Figures in thousands of barrels of 42 gallons

■
•

Figures In this section

Include

estimate of unreported
Bureau

% Daily Crude Runs

Refln'g
to Stills
Capac. Daily % OpReport'g
Av. crated

District—

—-—

1 .Appalachian—
v

I (East Coast

99.5

750

89.4

each)

Inc. Nat. Gasoline
Blended
Stocks

22,982

Kerosine

Gas Oil

& Dlst.

Resid.

Fuel

Oil

5,430

76.3

84.7

68.5

317

2,503

262

459

90.3

212

979

139

178

90.5

82.5

2,665
1,331

19,565

387

1,828

3,507

8,253

757

Inland Texas

59.8

229

69.4

944

4,676
1,958

3,075

361/

89.2

320

1,220

98.7

697

3,235

Xouisiana Gulf Coast-

97.4

316

98.4

907

13,851
4,070

55.9

38.1

2,181
1,211

Ho. La. & Arkansas—

135

195

5,311
1,825
417

5,683
1,192

1,708
87

.40

582 ;

7,906

Texas Gulf Coast—-

iRocky Mountain—
District No. 3-—-

19.0

76.9

4-—*

70.9

135

81.8

406

2,220

85.5

801

80.6

2,106

14,853

District No.
California

——

|*otaiu.s.b.ofm.
basis

| Total

June

1946

U. S. B. of M. V
June 1, 1946

basis

128

408

86.8

13,864

*94,146

13,013

95,247

12,509

45,938

4,843

87.1

14,293

533,172

44,408

'
4,892

;
15,132 t87,486
8,703
30,176
39,376
stocks of 8,454,000 barrels.
{Includes unfinished
sgasoline stocks of 11,558,000 barrels.
{Stocks at refineries at bulk terminals in
•transit and in pipe lines.
§ Not including 1,827,000 barrels of
kerosine, 5 441000
barrels of gas oil and distillate fuel oil and 9,015,000 barrels of residual fuel'
oil
produced during the week ended June 8, 1946, which compares #.ith 2,111,000 barrels
5,070,000 barrels and 8,881,000 barrels, respectively, in the preceding week and
1,440,000 barrels, 4,937,000 barrels and 9,419,000 barrels, respectively, in the week
ended June 9, 1945.
50n new basis due to transfer in East Coast.

1945

•Includes unfinished gasoline

the

Advance¬

sional Engineer.
+
John W. Nickerson of

*w?.

Bigblow,

Kent,
Willard
and
Company,
Management Engineers; James H.
Eddy, Industrial Engineer/.s Yale
and Towne

Manufacturing Co.

Treasury Redeems Notes,
$2 Billion in Cash
June

14 announced the off

ing, through the Federal Reserve
Banks, of %% Treasury Ceru.
cates of Indebtedness of Series

um-

6-9

1947,

1945

1946

1945

for par, to holders of Treas¬
ury Notes of Series D-1946, in t; s

open on

106.0

+ 0.4

139.4

1.3

+ 5.

138.8

137.2

135.8

130.7

+ 0.4

+ 2.7

111.9

+ 6;

111.8

amount

111.0

110.9

107.3

+ 0.1

120.9

+ 0.9

+ 4.

120.9

120.3

118.3

will mature

108.3

+ 0.5

+ 2.;

108.2

106.7

99.1

+ 0.1

+ 1.5

+ 9.

exchange basi

par

$4,909,727,00U,
on

it is planned

whie

July 1, 1946. Sin

retire about $*•> of the maturing not^s

84.5

+ 0.2

—0.1

+ 2

104.8

000,000,000

+ 0.9

+ 1.1

+ 5

117.3

+ 0.3

+ 1.1

+ 9.

+ 0.2

+ 0.6

+ 1

cash redemption,
subscripts n
will be received
subject to allot¬
ment to all holders an an
equn

allied

Housefurnishings

products
goods

96.8

96.6

96.2

95.3

110.2

110.0

109.4

108.9

106.2

+ 0.2

+ 1.2

97.9

+ 3.

97.8

96.6

96.2

94.6

+ 0.1

+ 1.8

125.5

+ 3.

125.1

124.2

123.2

Semi-manufactured articles

118.8

+'0«.3

+ 1.9

103.4

+ 5.

101.7

Finished products

101.7

101.6

95.3

+ 1.7

+ 1.8

106.6

106.5

+ 8.

106.2

105.6

102.0

+ 0.1

+ 0.9

+ 4

105.4

105.1

104.9

104.4

100.6

+0.3

+1.0

+4.

104.6

104.3

104.1

103.7

99.7

+0.3

+0.9

+4.

Miscellaneous commodities
Raw

materials

All commodities other than
farm

products
All commodities other than farm
products and foods—

PERCENTAGE CHANGES IN SUBGROUP INDEXES
FROM
JUNE 1,

percentage basis, except that sub¬
scriptions in amounts up to $25,C+D
will be allotted in full.
Cash sub¬
scriptions

The

Increases
7.6

Dairy Products

Fertilizer Materials

Livestock
Other

and

Textile

Poultry.

Cereal

3.4

Other

Farm

Other

Foods

0.3

Products

1.0

Grains

0.9

Hosiery and Underwear
Other Building Materials

Products

Lumber

0.6
and

Products

2.3

Products.

Furnishings

0.5

Other

0.4

Paper and Pulp——;

wlil bear
at

0.1

represent

Bureau

prices

Labor Statistics'

primary

producers

markets.
or

are

wholesale

general,

those

price

the

prevailing

its

report:

data,

prices

for the

are

those

most

part
charged by

commodity exchanges.
The
It is designed as an indicator
changes "and should not be compared directly with the
monthly index.

Weekly index is calculated from one-day-a-week
prices.

the

and

give below:

New

York

—_—

May
1945

3,948
37,894

3,698

Richmond

Chicago

3,094

...

3,033
11,868
2,402

—

Minneapolis
Kansas City

1,598

2,656
2,597

—

Francisco

San

2,803
2,638
11,728
2,363
1,456

7,984

Total, 334 centers
*New York City

•140 other centers—.
193 other centers..

85,898,,
»

35.085

42,433

8,380

May

1946

1945

11,470
116,255

3,558
5,130

5,069
•

May

36,317

3,756

—

10,895
102,669
10,348

11,535

15,172
9,310

14,901
8,196

9,141
36,321
,7,203
4,730

7,867

'35,741

ure

per

ani

annur\

bearer

form

Pursuant to, the provisions of
he Public Debt Act of
1941, inter¬
est

the

upon

certificates: offered

shall not have any

exemption*-

such, under Federal Tax Acts
hereafter

are

enacted.

set forth

cular.

now

The.. full

in the

taxability

official cir*

:-i;+

Subscriptions

are

being received

7,787

■2,273

7,736

6,716

7,116

24,060

21,042

236,939
,

94,975

'128,004

120,211

25,041

21,754

•Included in the national series
covering 141 centers, available beginning in 1919.

and

the

Treasury

..Washington,

a nd
should be accompanied
by a like
face
amount
of
the

maturing

notes.
The

subscription

books

will

close at the close of business Fri*
June 21,

4,107

8,076

261,009
107,964

Branches,

Department,

6,673

2,644

81,724;
v- 33,678
'Ji, 40,643
7,403

at the Federal Reserve
Banks and

SUMMARY BY FEDERAL RESERVE
DISTRICTS
(In millions of dollars)

1946

offere1

interest from that dat£

rate

provisions relating

The Board of Governors of the Federal
Reserve System issued
June 11 its usual
monthly summary of "bank debits" which we

May

semiannually op6 Jan* 1
July 1, 1947. They will mp~
July 1, 1947, They will be

issued

Federal Reserve District-

now

payable

Bank Debits for Month 6f
May
on

received

pnly, in
$1,000, $5,000,
$10,000, $100,000 and $1,000,000.

3.6

Department included the following notation

datedtt July 1, 1946,

denominations

Fruits and Vegetables
Labor

certificates

0.3

0.1

Miscellaneous

will

0.2

Decreases

NOTE—The

not

subscription books for t** ~
offering opened on June 19, 1946,
said the
Treasury Department'•
announcement, which continued:

1946 TO JUNE 8, 1946

Nonferrous Metals

will

The

Atlanta—

85.8

for

Management, and Profes¬

110.1

778

33,958

Society

ment of

87.0

Philadelphia

4,827

ident,

110.7

;•••>•

85.8

Management,
and & Production
Manager, Glass and Closure Pro¬
duction, Armstrong Cork Coir
pany; Phil Carroll, Jr., Vice Pres¬

109.3

182

Dodd, President, Amer
Management Association; J.
Keith
Louden, Vice President, So¬
ciety for the Advancement of

126.8

1,255

23,647

are:

Alvin E.

ican

5-11

—3 Months Ended-

|*J,S.B.ofM.basis
June

Members of the Incentive Ad¬
visory Committee

87.1

186

787

78.3.

earnings for the entire pubi.
increase the purchasing
the dollar,
according i.
the Commerce
Departments
they

power of

127.2

8,601

87.4.

District No. 2-

and

109.4

of week to week

ZKnd., HI., Ky.~.~
«Okla., Kan., Mo-—-

combat the forces of inflation.
Lower costs of production are
essentially an increase in wage:

86.7

District No. 1

thecon¬

6-1

Oil

10,499

lower sales prices to

109.5

manufacturers

{Stks. of {Stks.

suming public is urgently neede-

127.8

Mines basis-

iGasoMne {FinJsh'd;
Produc'n
and
{Stocks
ratRef.
Unfin.
of

1,569

plus

128.2

The

totals

therefore

are

ower

110.5

;

reported

amounts and

said.

prouucuvify
ana>;
costs which can be reflected;

111.1

86.9

was

Increased

6-9

Xrfyyi

trolling costs, it

111.5

lighting materials

Petroleum

£RUDE RUNS TO STILLS; PRODUCTION OF GASOLINE; STOCKS OF FINISHED
\AND UNFINISHED GASOLINE, KEROSINE, GAS OIL AND DISTILLATE FUEL
AND RESIDUAL FUEL OIL, WEEK ENDED JUNE 8, 1946

wage incentives as rewards
Wworkers for theiri contribution t >.
increasing production and; con¬

Metal and metal products

Cor four

•

5-25

leaders in the; field of; man¬
engineering. They have
wide knowledge, of the Use of

Building materials

are for week ended 7:00 a.m. June 5, 1946.
is the net basic allowable as of June 1 calculated on a
30-day basis and
shutdowns and exemptions for the entire month.
With the exception of
those fields which were exempted entirely the entire state was ordered shut down

—

and

6-1

1946

agement

Percentage changes to

6-8

1946

wage'In¬

Secretary of the Treasury Vinscn

GROUPS

(1926=100)

i!;-.'{This
includes

Higher OPA ceilings

and office furniture.

:Wtr {Oklahoma, Kansas, Nebraska figures

(districts.

and elimination of the usual
seasonal

under the milk
marketing agreement. Prices of hominy
corn meal
rose
nearly 15% with increased ceilings. On
the average, food were
0.9% higher than 4 weeks earlier and
4.3%
above a year ago.

"hernials and

___________

sharply with higher ceiling prices

grits and

were

studies of

it was announced
"une 13, by the
department.1

(0.1%)

700

32,800

26,000

California

800
600

1,150

JNew Mexico—Other, .J
Montana

74,200
64,150

and

year.

the

^Mississippi

Total United States

2,151,450

—

offset

slight advance

margins.

+146,700

ago

dairy products and cereal products more
declines for fresh fruits and
vegetables to cause a
in the group index for foods.
Fluid milk
quotations in New York advanced
than

also
2,050,000 {2,293,092

month

Increased prices for

higher than

its

centives,

new

average

2.7%

corresponding week of last

47,050

250

and short

prices advanced to

were

merce

the Incentive Divi¬
Department of Com¬

the

are

re¬

5% and there were smaller
advances for cows, steers
Prices of live
poultry declined in the Chicago market
reduced ceiling. Raw cotton

prices of farm products
6.7% higher than the

Week

Ended

Week

48,300

Florida

4 Weeks

Change

livestock,

22-year
peaks, reflecting unfavorable weather
reports and pending OPA leg¬
islation. Egg prices rose
seasonally. There were sharp declines in
prices of white potatoes with abundant
supplies of the new crop in
most markets and onion
prices decreased with good supplies. Sweet
potatoes rose seasonally and lemon
prices were higher, reflecting
adjustments to higher ceilings
previously granted. On the

for

calves.
a

Commerce, Henry1 A. Wal-

The members of the Committee

supplies due in part to
withholding of animals from the market
pending final
action on OPA
legislation, were primarily responsible for an advance
of 0.4% in market
prices of farm products. Sheep quotation^ were
and

Actual Production

state

♦B. of M.

BARRELS/

(FIGURES INi

year ago.

Foods—Higher quotations

Commit;

by Secret¬

to assist

ace

sion

reported

with

CRUDE OIL PRODUCTION

up more than

kerosine; 33,958,000 barrels of distillate fuel, and 45,938,000

DAILY AVERAGE

above

flecting continued heavy demand

Reports received from refining companies indicate that the in¬
dustry as a whole ran to stills on a Bureau of Mines basis approxi¬

rels of

and 5.2%

.."Farm Products and

reports as

| follows:

.barrels of residual fuel oil.

war

was

commodity prices in
5.7% higher than at

ary of

of
of

except fori the

re-

subscriptions from holders

$25,000

less of the maturing

notes. The subscription books will
close for the receipt of. subscrip¬

tions

the

latter

class

the

close of business Monday, June 24.

THE COMMERCIAL & FINANCIAL CHRONICLE

3410

■

and Exchange Commission made public on
June 12, figures showing the volume of total round-lot stock sales on
the New York Stock Exchange and the New York' Curb Exchange
and the volume of round-lot stock transactions for the account of all
members of these exchanges in the week ended May 25, continuing
a series of current figures being published weekly by the Commis¬
sion.
Short sales are shown separately from other sales in these
;

Securities

The

stated: "Good

for

news

consumers

Markets," in its issue of June 13,

that

to the effect

trading for the account of Curb members of 715,340
15.28% of the total trading of 2,341,035 shares.

shares was

Sales on the New York Stock Exchange and
Transactions for Account of Members*
(Shares)
WEEK

ENDED

MAY

25,

Round-Lot Stock

1946
Total for Week

A. Total Round-Lot Sales:
Short sales

198,070

$Other sales

7,395,390
7,593,460

sales-

Total

Transactions for Account of Members,
Except for the Odd-Lot Accounts of Odd-Lot
•Dealers and Specialists:

B. Round-Lot

Transaction^

of specialists in stocks in which

they are registered—

purchases
Short sales

Total

684,140
110,470

sales

tOther

550,350

Total

sales.;

—

3. Other transactions initiated off the
~

% Other

sales:—

Total

sales—

Round-Lot Stock Sales

Total

for

Transactions

WEEK

ENDED

MAY

25,

2,440,380

are

Total

232,995

Total

With

16,545
198,285

Short sales

sales

tOther

Total

51,325
2,100
37,150

Short sales

Total

sales

Other transactions initiated off the floorTotal

49,240

purchases

10,500

Short sales

Total
4.

92,845

sales

tOther

Total

3.13

103,345

sales

Short sales

tOther
Total

sales—
sales

^Customers'
Total

Total
•The

firms

other sales

126,916

purchases-

126,916

sales

121,660

their

partners,

tRound-lot short sales which

rules

are

included

with

"other

are

members'

June

purchases

and

sales is
that

the Exchange for the reason

convention

become powerful."

the

United

Hatters,\ Cap and :Millinery
Workers Union, American Feder¬
ation of Labor affiliate, heard its
international Vice President

Hershkowitz

Samuel

direct

man came as

tion

•

Mr.

the result of

Mr.

Hill-

opposi¬

Hershkowitz

and

other hatters' union officials to

series of three resolutions calling
for affiliation by the AFL with

the

World

Federation

Trade

Clothing

gress of

hatters'

Sidney

against

President

the

Hilljnajn,:

Amalgamated

Workers, of the Con*
Industrial Organizations,
using' the labor movement to
further his own reputation, ac¬
cording to advices to the "New
York World-Telegram" on June
7. -"Mr. Hillman does not repre¬
sent the/Americanr labor move-*
for

ment no way, no

how," Mr. Hersh-

union, in opposing the
resolutions, is reported to have
stated:
of

week

"If

Trade

strike

the World Federation
Unions

the

Nevada

the Bolivian concentrate contracts.

5.900

700

550

450

384

408

1,800

1,550

310

300

Washington
Total

28,881

•30,525
total.

the

situation
in

the

ended

week

shipment

could

call

marine workers

was as

July

52.000

August
52.000

June

52.000

June

subject was discussed at a meeting
in Washington on June
11 and

52.000

June 11

52.000

52.000s

June 12

52.000

domestic

totaled

OF METALS

Chinese, or 99%
at 51.1250 per

Silver

HYM Odd-Lot

zinc

slab

12, a summary for the week end-j
ed June 1, of complete figures
showing the daily volume of stock
transactions for odd-lot account;of all odd-lot dealers and special-)

declined

7,264 tons during May, leaving a
of 241,442 tons on hand at
the end of the month, the Amer¬
ican Zinc Institute reports. The
total

New

tinuing

M. J." QUOTATIONS)

St. Louis

series of current figures

reports filed with the Commission!
Zinc

—Lead—

New York

Exp. Rely.

14.150

14.500

52.000

8.25

8.10

8.25

14.425

52.000

8.25

8.10

8.25

8.10

8.25

8.10

8.25

June 11

14.150

14.425

52.000

8.25

8.10

8.25

14.150

14.375

52.000

8.25

8.10

8.25

14.150

14.413

52.000

8.25

8.10

8.25

cialists.
transactions

stock

lot account of

■*

1946

Total im
Per Wee*
38,753 $
1,162,835)
$51,974,470 •

Number of shares
Dollar value-——

(Customers' sales)
Number of Orders:

the major United
They are reduced
of cash, New York or St. Louis, as noted. All prices are in cents per pound.
lead and zinc quotations are based on sales for both prompt and future
v

(

trade, domestic copper prices are quoted on a delivered basis: that
consumers' plants.
As delivery charges vary with the destination,

short sales—-

Customers'
•Customers'

Customers'

other

Sales

total

sales

29,153-"

29,221-

Number of Shares:

short

Customers'

is,
the

Atlantic- seaboard. - Delivered
the refinery basis. . .
•
Effectiva March-i4, th» export- quotation for copper reflects: prices obtaining to
the open market and is based on sales in the foreign market reduced to the f.o.b.
refinery equivalent, Atlantic seaboard.
On f.a.s. transactions we deduct 0.075c, for
lighterage, etc., to arrive at the f.o.b. refinery quotation. 1
1
Quotations for copper arg for the ordinary forms of wirebars andj ingot bars..
For standard ingots an extra 0.05c. per pound is charged; for slabs 0.075c. up> and
for cakes 0.125c. up, depending on weight and dimensions; for billets an extra 0.75c.
up, depending on dimensions and quality.
Cathodes in standard sizes'are sold'at ff
above are net prices at refineries on the
prices in New England average 0.225c. per pound .above

2,678

Sales

878,7941

•Customers' -other sales
■

total

Custofliers'
Dollar Value

sales

Short

sales

—

•'£ i'r■$.- ' -v
Total sales

f- 150
132,990:

"'S3

"■

tOther sales
'

- •

■

' '•

133,140

Round-Lot Purchases by Dealers—

Number of sharesu-..399,050

■

Quotations for zinc are for ordinary Prime Western brands.:; - Contract prices fox
High-Grade zinc delivered In the East and Middle West in nearly all instances com¬

♦Sales

marked

"short

exempt"

ported "with "other sales." '

are". r+»

tSales to. offset customers' odd-lot order®
and sales to liquidate a long position which;
is less than a round lot are reported Vltto
"other sales."

881,472k

I———— $38,332,315 J

Round-Lot Sales by Dealers—
Number of Shares:
" '1

•

Odd-Lot Purchases by Dealers—

figures shown

mand

June

Number of orders—

zinc, 8.2500; and silver,-70.7500.

discount of 0.125c; per pound:

Ended

Sales by Dealers—
(Customers' purchases)

Odd-Lot

The above quotations are "E. & M. J. M. & M. M's" appraisal of
States markets, based on sales reported by producers and agencies.

the

Stock exchange

Domestic
f.o.b. refinery, 14.1500; export copper f.o.b. refinery 14.3670;
tin, 52.0000; New York lead, 8.2500; St. Louis lead, 8.1000; St.

delivered

OD£»|

the

for

odd-lot dealers

specialists

and

Week

delivery only,

and spe¬

by the odd-lot dealers

St. Louis

Refy.

52.000

the

Stock Exchange, cpn-

York

being published by the Commis-r
sion.
The figures are based upon

2,013 tons, against 2,030 tons
&

the?:

ists who handled odd lots on

daily rate of production for May

("E.

Exchange
Junef

Commission made public on

likely.
Stocks

Trading

and

Securities

The

High Grade. Inventory restrictions
on
the scare grades are thought

Straits Tin,
New York

Copper,
deliveries; tin quotations are for prompt

tin, continued

pound.

Trading in silver has virtually
ceased, pending developments ia
Washington.
The New York Official price of

shortages exist in certain grades,
as
Prime
Western
and Special

52.000

to the basis

producers left that gathering with
feeling that OPA now questions
the need for any price relief in
zinc. Views on prices among pro¬ foreign silver was unchanged at
ducers remain far apart, which 70%0 an ounce troy. London was
does not help matters, according unchanged at $44.
to members of the trade. Though
total
stocks
of zinc
are
large,

14.375

Louis

52.000

June 10

price

14.375

Straits

follows:

June

appeared to be
state of total confusion.
The

the AFL would file an not less premium of lc. per pound over the current market for,Prime Western but
than lc. over the "E. & M. J." average for Prime Western for the previous
application tomorrow for mem¬ .month.)3/'>:*■'3^
3, 3^:3bership in the WFTIW'
Quotation* tor lead reflect prices obtained for common lead only

Russia,

The price situation here remains
unchanged. Straits quality tin for

zinc

14.150

Average

has not yet been

•6,150
—

Utah

list.

An agreement

reached in the matter of extending

Mexico

New

other metals may be on

the doubtful

950

14.150
14.150

June

ments

1,363

have been

940

June

Texas City

1,504

June

Unions, of which Mr. Hillman is
CIO representative.
Max Zaritzky, President of the

attack

1,400

June

copper

denunciation

ing in the daily press sponsored
by a Wall Street house, offering
platinum
in
50-oz.
lots
as
a
"brokerage service." This firm,
through its metals department, of¬

Average prices for calendar week ended June 8 are:

kowitz is quoted as saying, adding,
"I don't like any man who uses
the labor movement so he may

The

Montana

was

Dom.

§Sales marked "short exempt" are included with "other sales."

\,?A

the

—Electrolytic Copper—

sales."

Hiliman's Views

for

DAILY PRICES

exempted from restriction by the Commission's

Hatters' Union Queries

lead

market

14.16

includes all regular and associate Exchange members, their
including special partners.

tin calculating these percentages the total
compared with twice the total round-lot volume
the Exchange volume Includes only sales.

showing

strong,
with prices
range of 8V20 to 90 per

3,638 tons.
0

term "members"

and

Sales

357,425

sales

short

market

chases.

C. Odd-Lot Transactions for Account of SpecialistsCustomers'

ended at smelters

Metals Reserve to extend its pur¬

333,560
29,145
328,280

purchases-

strikes

pound. So far, funds have not been
made available for the Office of

Total-

1,700

supply will continue well below
the needs of industry. The foreign

1.85

39,250

sales

week over advertisements appear¬

refineries, the supply situa¬
tion in so far as July is concerned
is
expected to show some im¬
provement. However, unless im¬
portations of lead can be increased
in the next quarter the available

9.18

214,830

sales

purchases

tOther

difficulties

and

Other transactions initiated on the floor-

711

15,299

Zinc

Lead

registered—
purchases

Idaho

•Revised

shipment.

B. Round-Lot Transactions for Account of Members:
1. Transactions of specialists in stocks in which
they

May

properties
the
foreign market.
Chilean sellers
now
quote 14.1250 f.o.b. port of

2,405,260

sales

Total

further strengthened prices in

35,120

Short sales—

copper

Colorado

Rhodesian

Northern
1

tOther sales-

labor

threatened

1946

712

15,875

California

The strike at Chile Copper and

Total for Week

A. Total Round-Lot Sales:

States

Arizona

18,989 tons in April.

the New York Curb Exchange and Stock
Account of Members* (Shares)

platinum interested
orderly market

in maintaining an

for the metal were disturbed last

Western States:

83,402 tons consisted of metal re¬
leased by the Government.
Pro¬
duction of refined copper in May
amounted to 20,551 tons, against

15.52

1,178,903

sales—

smelter St

Eastern States
Central

93,647 tons, the Copper
Institute reports. Of this tonnage

1,178,030
168,270
1,010,633

purchases-

Short sales

tOther

Platinum
Sellers

production of recoverable provided for and the flow of metal
lead in April and March, in tons: from that source will be forth¬
March
April coming even though subsidy pay¬

totaled

Total—
Total

released

has

Delieveries
4.83

Export and
(bonded
metal)
ac¬
counted for 4,120 tons of the total
shipped during May.
Government's stocks.

drawback

Mine

ers.

400,093

sales

Total

under war conditions. Metals

about 80,June, but no
such tonnage will be available in
the shapes requested by consum¬

333,650
50,900
349,193

purchases—
Short sales—

market,

000 tons of copper for

1.83

floor-

Total

been forced to close.

like situation has never be¬

Reserve

117,990

^' Total sales..
;

even

6,900
111,090

Short sales

fore existed in the copper

160,240

was

fers to purchase refined platinum
period from Jan. 1, 1946 to June tinued to restrict domestic mine at
$72.50 an ounce and quotes the
3, 1946, 2.3750 a pound on copper, production of lead in April, ac¬ so-called outside market at
$77.50
and 1.750 a pound on lead, for
cording to the Bureau of Mines. to $80. Platinum refiners continue
every pound of unsold recoverable The smelters, refineries, and mines
to quote $53 on wholesale quanti¬
metal in his inventory.
Ceiling of the American Smelting & Re¬
ties and $56 on small parcels on
prices were removed from chrome fining Co., and the Utah opera¬ sales to consumers.
ore,
cobalt, ferrochromium, ter- tions of the United States Smelt¬
Attempts to popularize platinum
rosilicon. molybdenum, tungsten,
ing, Refining & Mining Co. re¬ as a
commodity that may be
and vanadium, effective June 12." mained
inoperative. The smelter bought and sold freely on a
The publication further went on strikes did not materially affect
speculative basis have failed in
to say in part as follows:
the output of the large lead mines, the
past because of the narrow
as
these properties continued to market that
prevails in the metal*
Copper
produce and store concentrates. operators familiar with the history
the
Bureau
reports, of the metal claim.
The squeeze in copper for June However,
has forced many consumers to ac¬ mines with limited storage facili¬
Tin
cept five-and ten-ton lots in place ties or dependent upon prompt
Funds
for
of carloads or more. Sellers claim payment of smelter returns have
operating the tin
that

the floor—

purchases

tOther

-./v.

8.86

660,820

sales

Total

2. Other transactions initiated on

tons

shipments
69,680 tons, of which 4,989
zinc released from the

came

of copper and lead was contained

in the announcement made in Washington on June 11

month previous and 2,240 ton?,

in May last year. Total

agreement was signed by. CIO Mine, Mill and Smelter Work¬
ers and the American Smelting & Refining Co. ending a strike that
closed 18 plants on Feb. 25. Wage agreements are expected soon at
figures.
!
Trading on the Stock Exchange for the account of members Kennecott and Phelps Dodge prop-®*
erties The Office of Economic Sta~ i
During the
last
week OPA
(except odd-lot dealers) during the week ended May 25 (in roundbilization acted last week to adjust amended price regulations on lead
lot transactions) totaled 2,356,933 shares, which amount was 15.52%
of the total transactions on the Exchange of 7,593,460 shares. This subsidy payments on copper and pigments prices to offset increased
costs of pig lead. It was also an¬
lead to conform with the
new
compares with member trading during the week ended May 18 of
price ceilings, RFC was directed nounced that manufacturers of
2,092,340 shares or 15.36% of the total trading of 6,811,400 shares.
to recapture from a mine operator lead storage batteries may adjust
On the New York Curb Exchange, member trading during the
eligible to receive premium pay¬ selling prices upward.
week ended May 25 amounted to 690,985 shares, or 14.16% of the
ments at
any
time during the
Unsettled labor conditions con¬
total volume on that exchange of 2,440,380 shares. During the week

Total Round-Lot Stock

Strikes^

Progressing—Zinc Stocks Declined in May
"E. & M. J. Metal and Mineral

ended May 18,

Non-Ferrous Metals—Settlement of

Trading on Now York Exchanges
V

Thursday, June 20, 1946

Volume 163

Number 4500

THE COMMERCIAL & FINANCIAL CHRONICLE

34J t

Revenue Freight Car Loadings During Week
Ended June 8,1946, Increased 203,241 Gars
.

♦'^•Loading of
totaled

830,126

freight for the week ended June 8, 1946
the Association of American Railroads an¬

Atlantic Coast Line

&
' Miscellaneous freight loading totaled
357,22$v|ars, an increase
pf 36,572 cars above the preceding week, but
^decrease of 42,430
cars below the
corresponding week in 1945.
;

Loading of merchandise less than carload lot ireight totaled 126,898 cars, an increase of
19,148 cars above the preceding week, and an
Increase of 18,604 cars above the corresponding jweek in 1945.
Coal loading amounted to 173,291
cars, an increase of 111,500 cars
above the preceding week but a decrease of

2,065/bars below the

responding week in 1945.

cor¬

Grain and grain products
loading totaled 43,5Q§, cars, an
cars above the
preceding week but a

increase
decease of 9,505 cars
below the corresponding week in 1945.
In
tbi5l^s^ern Districts
alone, grain and grain products loading for the weePof June 8 totaled
increase of 2,681 cars above the preceding week but
decrease of 7,865 cars below the
corresponding week in 1945.
Livestock loading amounted to 15,178 cars, an increase of
an

above the preceding week and an increase

cars

of^711

cars

1,747
above the

corresponding week in 1945.

In the Western Districts alone loading
cf livestock for the week of June 8 totaled
11,362 cars, an increase
pf

1,250

above the preceding

cars

week, and

increase of 781

cars

above the corresponding week in 1945.
Forest products loading totaled
47,135 cars, an increase of 5,325
cars above the
preceding Week and an increase of 588 cars above the

corresponding week in 1945.
Ore loading amounted to
58,493 cars, an increase of 21,093 cars
above the preceding week but a decrease of

14,248

—

Durham & Southern
Florida East Coast

Coke loading amounted to 8,401
cars, an increase of 3,653

decrease of

cars

6,1^7 cars below the

corresponding week in 1945.

All districts reported decreases

compared witliihe corresponding

weeks in 1945 except Pocahontas and Southern and all
reported de¬
creases

compared with 1944 except Pocahontas,
tralwestern.

^
1

weeks

4 weeks
4

weeks

Week

2,604,552

2,616,067
626,885

June

8-,,,.,™

1944

003,655

3,158,700
3,154,116
3,916,037
3,275,846
3,441,616

•**♦,022,088
S&377.335

^,'456,465
837,886

684,658

137

666

628

1,208

1,032

954

1,356

1,116

following table is

34,574

summary of the

June 9, 1945.
LOADED

AND

RECEIVED

(NUMBER OF CARS) WEEK

week ended

Received from

Revenue Freight Loaded
1946

Arm Arbor

Connections

1945

1946

1945

408

262

Bangor 6c Aroostook

367

1,310

1,411

1,595

1,437

Boston 6c Maine

407

207

7,828

.,.4.061

7.068

7,065

Chicago, Indianapolis 6c Louisville

11,211

13,624

1,304

Central Indiana

1,013

Central Vermont

1,087

1,080

Delaware 6c Hudson

2,847

4,982

Delaware, Lackawanna & Western

6,210

7,825

—

?.?aS30&
:;^rr?32

1,905

2,084

2,068

.4:875

9,377

2,458
11,971

'3^686

,~£455

7,959

371

11,234

261

293

198

116

1,303

1,808

,744

915

366

418

120

Arte—---——

2,634

9,677

12,490

Grand Trunk Western

■M513

11,792

1,221
2,678
16,872

4,306

4,093

.r£3i®84

6,815

222

195

215

2,150

Detroit 6c Mackinac

Detroit, Toledo & Ironton
—

Lehigh & Hudson River
Lehigh 6c New England

937

2,127

Lehigh Valley

"*-5,075

1,232

5,865

8,707

>0,445

Maine Central-

7,993

2,729

2,597

3»&403

2,531

7,070

6,423

1:6,613

260

294

2,974

3.069

'"^',868

Row York Central Lines

50,379

51,002

"50,390

M.Y., N. H. & Hartford;

42,856

10,812

10,130

1^^911

13,991
2,172

3,650
15,893

Hew

604

1,024

6,381
—.,

Rutland

6.538

4,037

3,611

28,333

14,761

26,378

25,261

9,528

TotaL

195

166

1,069

12,584
1,091

433

■424

297

370

441

*4,001
1,287

4,709

1,430
10,777
7,655

3,440

3,615

3,130

2,115

2,001

1,179

417

456

407

1,204

472

506

384

11,657

12,113

10,398

6,681
22,101

24,883

745

528

760

737

688

133

137

149

967

1,122

133,519

126,157

121,335

101,782

117,987

18,729

19,753
2,807

14,907
2,779

14,759

2,355
22,052

21,723

9,950

10,712

3,506

3,843

3,940

20,660
3,396

Minneapolis 6c St. Louis.
Minn., St. Paul & S. S. M..

981

29,343
1,014

536

531

9,287

8,600

8,509

10,513

489

418

400

122

19,189

22,536

Atch., Top. & Santa Fe System

—

Alton

Bingham & Garfield
Chicago, Burlington & Quincy—
Chicago 6c Illinois Midland
Chicago, Rock Island 6c Pacific
Chicago 6c Eastern Illinois

—

Colorado & Southern

Missouri-Illinois

—

Nevada Northern—

Mr. Byrnes has

to support his efforts in deal¬
ing with Russia's Foreign Minister
Molotov,
Britain's
Bevin
and
ers

France's Bidault.

8,373

804

1,132

powers

2,046
7,192

2,220

2,049

6,569

3,379

11,506

10,502

5,069

247

128

557

673

2,815

2,597

2,245

4,030

121,915

133,239

134,951

61,884

71,667

27,395

28,042

16,096

3,820

26,326
3,373

9,514

2,574

3,170

4,517

370

483

20,596
3,538

19,026

18,851

9,722

13,391

3,265

670

13,275

13,516

3,176
12,091

11,784

2,820

3,078

2,708

3,187

■

-r

1,859

5,249
2,794

4,048

7,343

717

11,765
1,238

8,774

2,219
9,392

5,970

4,757

6,028

1,143

"33^43

8,201

869

458

331

1,081

1,199

208

4,487

1,509

2,901
1,345
12,952

5,252

5,612

JOOSBSS

162,532

*J«£ij$l

173,358

Moron, Canton 6c Youngstown
Bessemer & Lake Erie—

Indiana-

Jersey

4,645

224,077

Cornwall

Jumberland & Pennsylvania-

485

733

'^672

1,016

43,842

47,681

„AW57

21,821

4,259

1,354
28,291

5,716

1,492

4.6^62

1,478

1,463

^7669

2,136

5,175

7,062

403

497

380

169

967

1,411

2,513

2,029

1,536

2,065
671

1,293

1,249

1,434

1,183
1,834

506

1,457

105

683

799

990

487

651

36,915

34,130

32,250

9,886

17.044

Total™

1,972

3,302

5,180

133,109

134,565

128,016

75,305

112,484

553

561

4,867

5,460

5,702

2,741

2,410

2,371
1,175

3,159

2,574

4,406

1,531

935

1,719

3,958
1,746

Kansas

3,531

5,301

2,565

City Southern
—

Missouri-Kansas-Texas Lines—Missouri Pacific

3,808

6,624
3,935

393

327

307

3,018
2,214
1,146

181

236

162

310

385

4,270
13,732

19,036

5,444

8,164

7,098

17,004

17,972

16,770

239

131

220

289

9,701

8,777

6,850

9,509

3,053

3,674

3,258

5,101

6,953

9,293
5,523

12,032

12,631

5,635

6,188

4,511

7,117

5,540
8,799

157

127

132

Weatherford M. W. & N. W„
TotaL

Oklahoma

Ry.

66,644

78,422

74,054

58,936

72,924

^.Includes Midland Valley Ry.

only in 1944 and also Oklahoma City-Ada-Atoka Ry.

figures received by

The

members

industry, and its

this

member of the orders and

cates the

figures

Association

production, and also

activity of the mill based

are

: ;

—

•

the

advanced to equal 100%, so that

Trade

Orders

Period

Received

1946—Week Ended
Mar. 2

Unfilled Orders
Production

Percent of Activity

Tons

Current Cumulative

198,985

161,122

533,794

178,443

158,229
167,243

551,081
538,572
539,100
549,928

100

607,799
591,661

101

May

229,120

174,501

101

May

155,747
159,370
131,133
142,001
186,073

365.911

605,288
591,206
595,427
565,225

2,428

4,638

v^-f',914

1,389

*56^99

22,368

25,462

sim¬

June 20

$1,315,311,000. +V*

Mar. 30

April

April 13

May
18May ; 25
June

June

—

——

ments of unfilled orders.

re¬

the National Lumber'

Barometer

167,541
169,627

162,563

152,203
139,693

567,068

160,607

501,49ft.

were

7.6%

be¬

these

mills

were

of stocks.

For

reporting softwood mills, unfilled
orders are equivalent to 29 days'
production at the current rate,'
and gross stocks are equivalent, to
34 days'production.

orders

amounted to 84%

100

'•

For the

year^to-datev shipinents
reporting identical mills ex¬
ceeded production by 6.3%; or¬
ders by 4,9%*
■
-

9'6

9ft V

Notes—Unfilled orders of the prior week, plus orders
received* less production, do

not necessarily; equal the. unfilled

reports, orders made for

17.4% below production. Unfilled
order files of the reporting; tmiUs?

Mar.

new

Remaining

Tons

44,905

maturity of

bills

production for the week end¬
ing June 8,1946. In the same week

101

7,660

low

566,152

7,046

amount of

porting

PRODUCTION, MILL ACTIVITY

553,274

was

issue

lumber shipments of 418 mills

they represent the total

167,627

22,298

•

According to the National Lum¬
Manuafcturers
Association,

industry.

156,291

15,374

ber

These

April 20
Apr.
27

13,933

Ended June 8,1946

figure which indi¬

time operated.

164,562

29,767.

••

of the amount bid for at

Lumber Movement—Week

total

225,192
154,235
143,946
148,161

21,180

5,236

:64£65

83%

4,650
2,110

29,187

25,485

represent

program includes a statement each week from each

1,750

—

33,644

0.364%

Paperboard Association, Chicago, 111., in relation to activity in the

4,754

174,321

approximately

Low, 99.905; equivalent rate of
approximately
0.376%

paperboard industry.

539

.145,493

High, 99.908; equivalent rate of
discount

from the National

^1,741

195,188

bids:

There

1,801

194,838

approxi¬

annum.

the low price was accepted.)

1,652

4,192

discount

Range of accepted competitive

(65%

164,267

4,093

per annum.

169,355
183,509

67,136
28,040
7,288

rate

mately 0.375% per

discount

60,585
24,598
3,994

Average price, 99.905+; equiv¬
alent

1945

Peeahontas District-—

esapeake 6c Ohio——
orfolk & Western,....—,

168

15,321

accepted,
$1,310,352,000
(includes $36,828,000 entered on
a fixed
price basis of 99.905 and
accepted in full).

1946.

157,237

420.315

$1,950,634,000.

Total

NOTE—Previous year's figures revised.

Mar. 16

15,966

Total applied for

Kansas,

Mar. 23

19.085

offered ont

per annum.
and

9,646

Offering

June 14, were opened at the Fed¬
eral Reerve Banks on June 17.

\ 49

6,562

159,400

Atlantic Coast Line RR.

Gulf

Treasary

about of 91-day Treasury bills to
dated June 20 and to mature

5,289

10,442

Wichita Falls & Southern

the

3,415
1,474

Quanah Acme 6c Pacific

Louis-Southwestern

The Secretary of the Treasury
announced on June 17 that the
tenders for $1,300,000,000 or there¬

3,187

St. Louis-San Francisco

Texas 6c New Orleans
Texas 6c Pacific

apparent

abandonment

Bill

849

19,805

—

Total.

357

Gulf Coast Lines

the

Sept. 19, which were
397

International-Great Northern
tK. O. 6c a., M. V. 6c O. C.-A.-A.—

tlncluded

from
Washington
on
threat of bitter debate

Result of

Southwestern District—

Burlington-Rock Island—.

Litchfield 6c Madison
Missouri 6c Arkansas-

would

proposal.

18,389

2,079'

88,828

14,041

509

1,973

1,496
1,673
79,281

4,631

13,862

618

11,

forced

2,158

15,116

—

'^,470

—

14,536

674

1,636

2,106

75
-

1,583

12,572

reported
June

the

^?516

368

583

3,799

545

that

eral Russian demands at the first
Paris meeting of the foreign min¬
isters, but, the Associated Press

17,950

,>:-7s7v??72

6,092

566

3,336

518

the

that he had Congressional support
of his firm attitude against sev¬

13,387

554

304

for

represented."

ment of

816

2,678

407

Administration
leaders
had
sought to secure Senate indorseSecretary of State Byrnes'
handling of foreign policy, in

2,636
3,493
6,688

130

103

2,468

—

fail," he
defeat

6,800

2,001

"If

439

—

be a disaster for
He has asked for pray¬

2,373

—

Southern Pacific (Pacific)

would

mankind.

374

—

the
de->
.'•»

declared, accord-*

22,977

—

the

ing to Associated Press reports
from Washington, that the Paris
session is a critical one, in which

460

gave1

2,403

North Western Pacific
Peoria 6c Pekin Union

preceded

489

—

conference

2,113

Denver 6c Salt T.ake
Fort Worth & Denver City
Illinois Terminal

House

order

TotaL

and

off.

is quoted as
saying, "it
for mankind as well

2,109

Spokane International.
Spokane, Portland 6c Seattle.

285

r u man

parture.

3,617

1,035

accompanying v the group to
National Airport and seeing

White

25,195

6,509

7,595
10,159

Northern Pacific

St.

President

them

ilar

434

151,174

Baltimore 6c Ohio

3,647
26,565

23,114

STATISTICAL REPORTS—ORDERS,

Total.

by
the

1,615

10,363
23,580

ters.

added importance to the occasion

failure

Green Bay & Western
Lake Superior 6c Ishpeming—.

Allegheny District—

ilan..

272

We give herewith latest

7,791
5,249

1,055
10,119
2,928

Wheeling 6c Lake Erie.

Jgonler Valley.
[x)ng IslandPenn-Reading Seashore Lines
insylvania System
sdiug Co
Inlon (Pittsburgh)—.—.
Postern Maryland—
—

4,717
17,418

5,492
28,513

27,881

Senatorial
colleagues, Tom
Connally (Di-Tex.), Chairman of
the Senate Committee oh
Foreign
Relations, and Arthur H. Vandenberg (R^Mich.); also a rhember of
that committee, left Washington
for Paris by plane on June 13, fot
the conference of Foreign Minis^

53,076

420

436

Central R. R. of New

720

Secretary of State Byrnes and
his

Weekly Statistics of Paperboard Industry

5,128

6,171

—

2,440

767

Great Northern

8,271
2,794

1,500
11,541
3,107

Wabash

2,160

477

,»

Louisiana 6c Arkansas
Total Loads

York, Ontario & Western
HOw York, Chicago & St. Louis
H. Y., Susquehanna & Western
Pittsburgh & Lake Erie...
Fere Marquette
Pittsburgh & Shawmut—
Pittsburg, Shawmut & North
Pittsburgh 6c West Virginia

1,235

430

18,630,187

JUNg 8

Total

Kaatern District—

Monongahela

1,085

323

20,322
2,078

Utah

FROBJ;::CONNECTIONS

ENDED

Railroads

icon tour.

140

1,034

Chicago 6c North WesternChicago Great Western.
Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. 6c Omaha.
Duluth, Missabe & Iron Range
Duluth, South Shore 6c Atlantic
Elgin, Joilet & Eastern
Ft. Dodge, Des Moines 6c South

873,174

Detroit 6c Toledo Shore Line

26,479

Toledo, Peoria & Western
Union Pacific System

?.■

•

Northwestern District-

the separate railroads and
systems for the week ended June 8, 1946.

FREIGHT

300

Winston-Salem Southbound-

freight carloadings for

During this period only 52 roads reported gains o#r the
REVENUE

218

—

TotaL

2,994

27,853

Western Pacific

16,410,189

The

Cambria

257

104

Norfolk Southern
Piedmont Northern.

810,698

—

830,126.,

> Total

1,634

303

4,928

Richmond, Fred. 6c Potomac.
Seaboard AJx Line

3,999
1,484

402

11,100
4,780
1,379
3.066

1,710

...

Macon; Dublin & Savannah
Mississippi Central
Nashville, Chattanooga & St. t,.

3,731
-

2,608

Byrnes Leaves for
Big Four Meeting

Georgia
Georgia 6c Florida.
Gulf, Mobile 6c Ohio.
Illinois Central System—

8,011

349

Louisville & Nashville

1,916

677

12,720

1,718

Denver 6c Rio Grande Western—

and Cen-

3,052,487

3,982,229

May

June

2,883,620
2,866,710

March

April

Week

January
February

weeks

Southern
.W1945

1946

4 weeks

404

268

Central Western District—

above the preceding week, but

4,017

462

1945

158

71'8

4,210

1946

295

731

12,250

Gainesville Midland..

corresponding week in 1945.

■

1944

520

828

Columbus & Greenville

below the

cars

1945

15,451

Central of Georgia

Charleston 6c Western Carolina
Clinchfleld-

Connections

Southern System.
Tennessee Central

•

4,203

29,254 cars,

AtL 6c W. P.—-W. R. R. of Ala

Atlanta, Birmingham 6c Coast-

Loading of revenue freight for the week of June 8, increased
203,241 cars or 32.4% above the preceding week.

Received from

480
•

cars,

on June 13.
This was a decrease belowsrthe corresponding
week of 1945 of
54,532 cars, or 6.2%, and a decrease, below the same
week in 1944 of
43,048 cars or 4.9%.

Total

Revenue Freight Loaded
1946

Alabama, Tennessee 6c Northern

revenue

nounced

Total Loads
Railroads

leathern District-

orders at the close, •
Compensation lor delinquent
filled from stock, and other items
mads necessary adjust¬

Compared to the average cor¬
responding week of 1935-1939,
production of reporting mills was
4.7% above; shipments were 0.5%

above; orders were 4.5% below*

THE COMMERCIAL & FINANCIAL

3412

This

talization

Items About Banks and Trust

Companies

(Continued from page 3401)
Trust Company,

time also reported
action
taken
by
the

at the

same

similar

Rloomfield

Washington, D. C.

Directors of Manufacturers Na¬
tional Bank of Detroit, Mich., re¬
.

Hamilton, who succeeds his
late father to the position, is As¬

Institute,

Savings

of $300,000, including
$200,000 capital stock, $50,000 sur¬
plus and $50,000 undivided profits.

Mr.

cently voted to transfer $1,000,000
from undivided profits to surplus.
With the transfer, surplus totals
$8,000,000.

sistant Counsel of the bank.

Bloomfield, N. J.

Thursday, Juris 20, 1946

CHRONICLE
divi¬

the second extra

declared

George J. Greenwood

the bank this
year in addition
to its regular
monthly dividend of 12 cents a
share. With the payment on July
3rd, $94,000
in dividends will
have been paid .to stockholders of
the institution during the first
dend

Elected AIB President
George J. Greenwood,
June 13

Edwin C. Graham,

Company,
total re¬

tute's conven-

and

Bank & Trust Co.,

house and was
elected President of the institu¬
tion
in
1922.
The
bank was

ier of the banking

Baltimore National Bank,
Md.,
announced on
June 14 the election of Stanley O.
Kirk as an Assistant Vice-Presi¬
dent, and of Tilton H. Dobbin and
Phillips Lee G&ldsborough, Jr., as
Assistant Cashiers, said advices
tcom the Baltimore "Sun," which
The

Baltimore,

Mr.; Kirk, who was promoted
from Assistant Cashier, has been

since its

from

$1,000,000 will be added to capital
and $2,000,000 to surplus.
The
bank will then have capital ac¬
counts of approximately $17,000,-

When,
in
1930, the Central
Co., Cincinnati, acquired
control of this bank, Mr. Mosler
was made a Vice-President of the
Central Trust. He retired in 1931.
Trust

Ralph A. Lucke, who has been
President of the Lucas County

Toledo, Ohio, on
elected by the direc¬

Bank,

Savings

City, Okla.,
businessmen have purchased the
First National Bank of Ardmore,
Oklahoma

Three

Okla., for $9,000,000.
They were
C. R. Anthony, who operates 69
stores in Kansas, Oklahoma, Texas
and New Mexico; Frank Sewell,
President of the Liberty National
Bank
of
Oklahoma" City,
and

Lloyd W. Judd, former VicePresident of the National Life In¬
Board. At surance Co., Oklahoma City. Mr.
the same time, according to the Judd will become President of the
Toledo '{Blade," the Board elected 57-year-old Ardmore institution,
Clinton B. Dwell, President. : Mr. said International News Service
Ewell, who was also made a di¬ advices of June 8.
rector of the bank along with
Directors
of
the
Baltimore
Jules D. Lippmann, recently left
the Ohio Citizens Trust Company, Bank, Kansas City, Mo., on June
13
declared
the
regular
dividend
At a meeting on June 12 of the Toledo.
of $1 a share and an extra divi¬
-directors of the National Marine
The Lucas County Bank was
Bank, Baltimore, Md., a semi-an¬ organized originally in 1916 as the dend of that amount, both payable

directors of the National
Central Bank, Baltimore, Md., on
June 14 declared a regular semi¬
annual dividend of $2. a share and
an extra dividend of $1 a share,
reported the Baltimore "Sun," on
June 15.
.' The.

nual

dividend

was

"Sun"

Baltimore

declared,

the

anounced

June 11

was

tors {to

the newly created posi¬

tion as Chairman of the

Morris
its

Plan

Bank,

but acquired

June

Citv

present title in 1944.

29,

announced the Kansas
on
June 13, which

"Star"

added:
comprising 3Vz%, or
Stockholders at a recent meet¬
share on capital stock
Milton
Knight,
President of ing authorized an increase oft the
"which is $30 par.
This dividend,
the
Commerce
Guardian
Bank,
bank's capital from $150,000 to
the ("Sun" points out, which is
At present the total
payable July 1 to shareholders on Toledo, Ohio, announced the elec¬ $200,000.
tion
of
Richard
Lennlhan!
as
a
capital, surplus undivided profits
record June 26, is an increase
bank director, according to the and reserves are approximately
from the 3%, or 90 cents previ¬
Toledo "Blade" on June 12, which $380,000.
ously paid.
also reported the promotion of
Forrest Jeffrey, Trust Officer, as
H. Roe Bartle and Roland H.

June I; 13,

$1.05

per

Checks have been sent out for

Vice-President and Trust Officer.

second

liquidating distribution
of $1.80 a share to stockholders of
Hie Baltimore Commercial Bank,
Baltimore, Md., who filed their
Shares in the liquidating proceed¬
a

ings,, Robert C.

Quinn, active Sandusky,
Ohio, banker for 63 years and
Chairman of the Board of the
Third National Exchange Bank,
John

Willis, Jr., and
Stockbridge, liquidating Sandusky, Ohio, of which he was
agents, announced on June 13, ac¬ President for many years, died on
cording to the Baltimore "Sun." June 14 at the age of 79, reported
An initial distribution of $25 a Sandusky advices of the Cleve¬
share was made last March 15, the land "Plain Dealer."

Enos

Record have recently been

elected

Home
& Trust Company, Kansas

third and final distribution

will be made at the expiration of
the I period required by law for

Mr. J. L. McCaffrey,

International

the

"Star" of June 12.
"Star" added, is a
Boy Scout Executive and National
War Dads Official, while Mr. Rec¬
City

President

ord

Jackson

Motors, Inc.

President

Erie

Harvester

Fulton

Company, and Mr. IFowleft B. McConnell, President of Sears, Roebuck and Co., were elected direc¬

Cocke, ?President of the
National Bank, Atlanta,

Ga;{ has

was

claims by stockholders,

stated.

17, 1933, in lieu of a portion of de¬
posits. '
Owners

of more

than 80%

the capital stock of the Baltimore
Commercial accepted an offer of
Trust
Company of

The

new

Belmont

National

Bank of

Chicago will |be opened
for, business July 1 at Belmont
Avenue and Clark Street, Chi¬
cago, 111., Warren H. Orr, former
Illinois
Supreme Court Justice
and President of the bank, said on
June 12.
The opening had been
scheduled for April 1, but was de¬

Announcedthe;Alectiqfai

William Matthews and

G; Davis

went

to say:

joined the Fulton

Mr. Matthews

1929, while Mr. Davis,
who will assume his duties on

Trust in

July

1, has been

Vice-President

the CocaCola Bottling Company of Bos¬
Maryland, Baltimore, to purchase
ton,
August, and on
Sept. 1, 1945, operation of the
bank was taken over by the Union layed because of
difficulty in ob¬
It was announced On June 13
Trust,
taining material,
reported the that the First National Bank in
Chicago "Tribune" of June 13.
Palm Beach will pay an
extra
The Washington "Post" of June
The bank, which will occupy dividend of 5 cents a share, or
the" Union

their holdings last

13 reported the election of George
J3. Hamilton as a member of the

Executive Committee of the Union

the

former

View

quarters

of the Lake

State Bank, the "Tribune"
advices went on, Will have a capi¬

and General Manager of
.

$5,000 on July 3,
holders of record

1946.

affairs

AIB

since the out-

his

set

banking car¬
eer. He joined
the Portland,

Oregon Chap¬
Geo. H. Greenwood

ter in 1922 and

study
courses for 16 years said the
announcement of June 13.
took

He served as

AIB

Portland Chapter

the report con¬
member of the
govornors of the chapter

Consul for 6 years

tinued, and as a
board of

In 1933 he was
President of Port¬
Chapter and in 1934 Presi¬

two

for

elected

Fort Worth National staff.

land

terms.

Vice

dent.
Mr. Greenwood

cash

dividend

$1.00

per

or at the annual rate of
per share on all common
outstanding was declared on
June 11 by the directors of Bank
of America National Trust & Sav¬

period,

Association,

ings

man

This

Associate Council¬

for the State of

In 1942 he was

Oregon.

elected

a mem¬

Executive Council. At;
the same time he was elected ai
member of the National Educa¬
tional Advisory Committee. Heserved as Chairman of that com¬
ber of the

Calif.
25%

for five years

Angeles,

Los

has served as a

three national com¬
mittees of the Institute and was
member

share for the current semi-annual

represents an increase of
the 80 cent dividend

over

paid in the previous semi-annual
period.

mittee during the year
In

June

1945 was

1944-1945;

elected Vice-

President.

At the same time the directors
declared the regular

dividend of $1.00 on

semi-annual
the convert¬

preferred stock at the regular
share.

ible

annual rate of $2.00 per
Dividends

both

common

and

Banking Ins!. Starts
Bank Employee Letter

What is said to "be an innova¬
preferred are payable June 29 to
tion in bank employee manage¬
stockholders of record June 15.
ment relations has" been I initiated!
President L. M. Giannini re¬
by Consumer Banking Institute,.
ported to the board that after re¬
Washington, D. C. It is a BANIC
cent preferred stock conversions
EMPLOYEE Monthly News Letter
aggregating approximately 385,000
for the information and interest
shares, the original 600,000 shares of
employees of banks It is avail¬
of preferred have been reduced
able, without charge, to institu¬
to about 20,000, and as a conse¬
tions
affiliated with Consumerquence the board issued a call for
Bankers Association, the Morris;
the redemption* ©ft the remaining
Plan Bankers Association, and theoutstanding preferred shares, ef¬
Consumer Banking Institute, said"
fective July 31, 1946>. The right to
the institute in a recent announce¬
convert each preferred share into
ment.
approximately one and one-third
As explained in Vol. 1, No.
shares of common stock will ex¬
the

pire June 30.

purpose

of the Letter is "to>

the bank employee up-todate on current events and new
ideas involving the employee as
an individual and as a component
keep

of
India,
London

The Chairman of the Board

Chartered

the

Bank

China

part of the human machinery of a
financial institution." It will con¬

factual news and views
to ai bank employee.
The first issue, containing about a
Total liabilities at the end of
dozen items, covers subjects on\
1945 were £90,045,909. This list
which any bank employee shouldt
is comprised mainly of £73,186,be kept up-to-date as a part oL
199

annual

Dec.

statement of

condition

tain only
of

31, 1945:

of current and other accounts

£7,148,779, of fixed deposits.
capital stock and reserve fund
show £3,000,000 each

and

interest

his institution.

The

Oscar
Vice-Presidents and
The stock was originally issued tors of the Harris Trust and Sav¬ Trust Officers of that institution
to depositors at $19.50 a share in ings Baftk, Chicago, 111.* at a spe¬ at the Board of Directors meeting
on June 13, reported the Atlanta
the reorganization of the Balti¬ cial meeting held June 12.
"Constitution" of June 14, which
more Commercial Bank on June
filing

been active in

England announced in the bank's

advices continued.

{ A

dency,has

Australia

Mr. Bartle, the

Ohio.

post from the
Vice-Presi-

Bank

Kansas

jv;'/''

^ t>\

wood, who ad¬
vanced to this

directors of the Mercantile

City, Mo., increasing the number
of directors to 14,. reported the

Green¬

Mr.

$2.00

000.

Banking

Cin¬

cinnati,

stock

organization in 1933.

be derived
the sale of the new stock,

Of the $3,000,000 to

founded in 1898.

added:

connected with the bank

tion

Cincinnati, of
remains in charge of the Chest¬ which his father, Max Mosler, was
founder and first President.
He
nut Hill office.
rose to Vice-President and Cash¬

Broad Street Trust Company

Jr., on

elected President of

at the final session of the Insti¬

months of 1946.

seven

Chairman of
the Board of the Hamilton Na¬
Manufacturers National began
tional Bank, Washington, i D. C.,
Announcement was made on
sources of $34,027,291
as of the
has announced his intention to operations Aug. 10, 1933, with a June 10 by Mr. R. E. Harding,
opening of business on June 17,
surplus of $1,500,000.
Additions President of the Fort Worth Na¬
retire
at
the
end
of
this
month,
after giving effect to the merger
of $500,000 to surplus were made
tional Bank, Forth Worth, Texas,
Tvith Chestnut Hill Title and Trust according to S. Olivar Goodman,
in each of the three years of 1934,
writing for the Washington "Post"
of a new bank being established
Company, Philadelphia. The state¬
of June 13.
Following ten years 1935 and 1936. An addition of $1,- in the Riverside section of Fort
ment of condition shows capital
Fur¬ Worth. The new bank, for which
of service as Hamilton President, 500,000 was made in 1940.
stock of $900,000; surplus, $1,000,the advices continue, he became ther additions of $500,000 came charter has been granted, will be
€00; undivided profits, $313,696,
in
1942
and
1943.
And
in
1944
ad¬ known as the Riverside State
the batik's Chairman in Septem¬
and reserves for taxes, interest,
ditions of $1,000,000 and $500,000
ber,
1943.
He
was Hamilton's first
Bank, and is expected to be open
•etc., $133,254.
Deposits totaled
were made.
The present addition
$31,634,065.
/.! I President, being elected to the is the ninth in the 13-year history for business on or about Oct. 1.
U Resources of the bank include post when the 14th Street bank
The Riverside State Bank will
of the bank.
All additions have
was organized in 1933.
have a capital structure of $150,cash and due from banks aggre¬
been made from undivided profits.
000, of which $100,000 will be
gating $5,613,287 and U. S. Gov¬
Shareholders of the bank on
Gustave M. Mosler, prominent
ernment securities amounting to
Capital, $25,000 Surplus and $25,Cincinnati .banker
during
the June 17 voted for the issue and 000 Undivided Profits. Directors
$14,984,153. In addition, the bank
1920s and 30s, died on June 11 at sale of 20,000 new shares of $50
are: E. E. Bewley, R. E. Harding,
reports $240,000 on deposit for the
the age of 67, announced advices par stock at a price of $150 a J. E.
McKinney, W. B. Duke, J. T.
purchase of stock of Mid-City
share.
Bank and Trust Company, Phila¬ from the Cincinnati "Enquirer" of
Yeargan, George W. Herd, E. L.
June 12, which went on to say:.
Shareholders
will
be
given
Baker
and John H. Maxwell. Offi¬
delphia.
His apprenticeship in the bank¬ rights for purchase of the new cers are: R. E. Harding, President;
Russell, H.
Ferrier, formerly
stock on a basis of one new share J. T. Yeargan, Vice President and
President, of the Chestnut Hill ing1 field was served at the old
Fifth National Bank, Cincinnati. for each four shares now held. Lawrence Carlson, Cashier, all of
Title and Trust Company* was
entered
the Brighton Rights will expire July 18, 1946. whom are now members of the
elected a Vice-President of the Then he
Brbaid'Street Trust
Philadelphia,
reports

was

The American Institute of

1946 to stock¬
of June 28,

Profits for the year 1945,

inclu¬

Finland Gets Credit

arrangement for an act-;
$5,000,000 to purchase'
U. S. surplus property in. Europe'
total of £713,635.
has been signed with the Govern-'
-The interim dividend
at the ment of Finland,- Foreign Liquir
rate of 5% per annum for the first dation Commissioner Thomas B»
half of the; year, paid in October McCabe announced on June 13. {>
last,; absorbed £75,000. A second
This sum, continues the report,,
interim dividend at the rate of 5 % makes a total of $15,000,000 credit!
pe^ annum; for the seoond half of which has been granted; Finland;
the year* paid in April 1945, ab¬ to enable it to buy American sur-«
sorbed a further £75,000. The plus for relief; and rehabilitation^
amount
available
is
therefore McCabe explained.
'
{ |
£ 563,635. It was not the intention
A $10,000,000 credit arrange-^
of the Directors to declare any
ment was signed by the Finns;
further dividend for the year to
early this year.
31st December, 1945, and the di¬
The additional
credit, which1
rectors propose to deal ■ with the
amount available by adding £75,- represents a ceiling on credit pur-'
chases and does not necessarily
000 to the Officers' Pension Fund
mean the
entire amount will be;
and
£5,000 to the Widows' and
Orphans' Fund; by writing off used, was negotiated for McCabe's;
Premises Account * £ 100,000 and office by John C. Virden, Central
sive pf

£387,372 brought forward

from the

ditional

previous year, showed a

by carrying forward
Of

A credit

the balapce

Field

Commissioner

for

Europe

with Headquarters at Paris.

£383,635,

Full text of Commercial and Financial Chronicle : June 20, 1946, Vol. 163, No. 4500, Section 2

FRASER