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^
"•"Final
Edition
OVER 100
ESTABLISHED
?
J9||-
In 2 Sections-Section
YEARS
1
and
\cll an
ommetciaL
Chronicle
Reg. tT. S. Pat. Office
Volume 159
Number 4294
New York, N. Y.?
Price 60 Cents
Thursday, June 29, 1944
a
Copy
Dewey, Bricker Inflation And The Stock Market Central And Commercial Banking
Problems Discussed By Madden
Nominated
By JOSEPH STAGG LAWRENCE*
Vice-President, Empire Trust Company
Gov. Thomas E. Dewey of New
York
were
John W. Bricker
Gov,
and
nominated at the Republican
Rational Convention at Chicago
yesterday (June 28) as the candi-
Urges Investors' To Be Cautious Against Dean Madden Holds No Need Of Higher Discount Rate
Economist
Blindly Accepting The Thesis That All Prices Are Going
To Check Reserve Ratio Decline—Sees Situation Different
From 1920 When Banks Raised Discount Rates To Stem
Up And That Stock Prices; Must Also Go Up—Holds
Speculation And Price Inflation—Suggests Legislation
Use Of Securities As A Hedge Vehicle Against Inflation
Permitting Reserve Board To Vary Reserve Require¬
May Prove Illusory ments Of Individual Reserve Banks Between 20 and 40%
j
:
During the past 12 years, rthe interest in inflation has run in
cycles, with alternating crests and bottoms. ' Early last spring one
such peak of®
Although the
ratio of the Federal Reserve banks and the
of the commercial banks have de¬
creased, the
reserve
ratio of capital funds to deposits
-
interest
banking
w a s
reached.
It
The
then subsided,
Shape Of Wings To Come
only to reach
in
again
cent
k
crest of inter¬
est. Nearly al-.
that ni¬
ways
E. Dewey
Thomas
dates
,
W.
John
President
for
Bricker
|
one
(Continued
i;
2712)
Special Material
activities
pertaining to
SAVINGS
of
&
LOAN
ASSOCIATIONS will be found on
page
Passengers With 10 Tons Of Cargo, And Cruise At 250
Problems"
Miles Per
sued today by
Dean John T,
Hour—Says Cargo Will Be Mail And "Ex¬
press;' Freight And Passenger Service To Have Comforts
Of Rail Travel With Rates At 3 Cents Per Mile
in
.
" It
was
said thaj; if
the, French Marshal Villars, you may remember who
Heaven would only defend him from his friends, he could
'
market
be
may
self
at¬
enemies.
of the New Deal has
•
when
I
concerning
the
probably
size,
speed, and range of post-war air¬
pre-'
dictions that
page
being
freely
so
concerning
the
future
The first consists of the obvious
aviation,
in past periods
have succeeded in raising prices.
the
pressures
which
pressures
may
be
aircraft
echo
M
rence
York Society of Security
Analysts in New York City on
June 20, 1944.
:
(Continued
on page
Of
part of this confu¬
the exigencies of
war,, since the public
naturally
finds it difficult to distinguish be¬
tween what is necessary in war
course a
sion
is
due
what
and
to
will
be
desirable
in
the
h al'
s
t iments.
One
Geoffrey F. Morgan
2700)
a r s
sen
New
Underwriters
of
that
craft.
industry has peace. Increased speed, range, and
good reason size would obviously work to our
enum-
*An address made by. Mr. Law-!
before the luncheon of the
2712
read
rash
made
riodically affects tjhe market. This
rests roughly upon three pillars.
claims
ridiculous and exaggerated
the
can
hard¬
ly read a pa¬
per nowadays
or
listen
to
a
*An
address
delivered
Morgan at the Second
Conference
stitute
Mo.,
of
on
Banking at
June 8, 1944,
(Continued
by Mr,
Wartime
American
the
of
on page
Buy War Bonds
HI FUNDAMENTAL
for
Hirsch, Lilienthal & Co.
PROSPECTUS
Exchanges
Established 1927
London
-
HAnover
2-0600
Chicago,
OBTAINED
BE
FROM 1
AUTHORIZED
DEALERS
R. H. Johnson & Co.
Members New York Stock Exchange
Geneva Rep.
SECURITIES
INVESTMENT
Y.
or
.
64 Wall Street, New York 5
Teletype NY 1-210
of
York
New
The
out¬
Dean J. T. Madden
standing de¬
velopments in the. condition of the
Reserve banks during the war
have been an increase in the vol¬
ume of Federal Reserve notes, in¬
creased holdings of Government
securities,.and a moderate decline
in the amount of gold
owned
by. the
banks.
These
brought about
Albany
Troy
Pittsburgh
,
Buffalo
Syracuse
Williamsport
Dallas
from
IN CO ft V O RATIft
IS EXCHANGE PLACE
634 SO. SPRING ST
JERSEY CITY
LOS ANGELES
-
certificates
Federal
a
Reserve
combined
factors
decline in the
ratio of gold to total deposits and
(Continued
on page
2697)
In¬
2698)
THE CHASE
*
BANK
OF THE CITY OF NEW YORK
Brokerage
Service
Broaden your customer
for Banks, Brokers
service with Chase
and Dealers
MAY
HUGH W. LONG and COMPANY
PHILADELPHIA
BOSTON
Cleveland
Bond
INVESTORS - INC'
VICTORY
25 Broad St.* New York 4, N.
Finance
NATIONAL
Dealers
other
the
St. Louis,
Distributors
and
Di¬
of
University.
the illus¬
magazines without finding
trated
think,
are
inflation
I
often
to
General Index on
him-®—:—:
—/
from his radio program or scan
defend
.
great deal of fuel for
sentiment that pe¬
a
Madden,
is¬
Institute of
International
of
prevailing
Banking
rector
■
course
These
2705.
a
Comimercial
Inflation Sentiment
--The
the
i
that
and
Says Future Transport Planes Will Carry Up To 100
faetor of inflation.
provided
In This Issue
"Central
tributed to the
vote for General
on page
market,
the
fdStagg Lawreuce<
ji "3W
roll call recorded l,G5o votes fo$
DeAyey, with
expres¬
in ' the
stock
strength
quickIW
^
sion
the
the Presidential nomination,
i
some
measure
President,
respectively, of the
Republican party.
Gov. Dewey,
said the United Press, rodeJLnto
■
finds
so
Vice-
and
ter est
a
posi¬
entitled
letin
Manager Speakers Bureau, Douglas Aircraft Company, Inc.
s
sysin
tion,
accord¬
ing to a bul¬
similar
a
is
strong
By GEOFFREY F. MORGAN*
re¬
wee
for
tern
correspondent
Hardy & Co.
facilities
Members New York Stock Exchange
Members New York Curb Exchange
30 Broad St.
New York/4
Tel. DIgby 4-7800
Tele. NY 1-733
Member Federal Deposit Insurance
Corporation
I
Actual
BOND
Trading
Markets,
always
ELECTRONICS
Soya Co.
Queensborough
Gas & Electric Co.
Federal Machine and
RAILS
BROKERS
Central
Purolator Products, Inc.
Welder Co.
INDUSTRIALS
6% Preferred
V
^
International
l
BULL, HOLDEN & C2
MEMBERS NEW YORK STOCK
Kobbe, Gearhart & Co.
INCORPORATED
EXCHANGE
1Members N, Y, Security Dealers Ass'n
14 WALL ST., NEW YORK 5. N. Y.
TELEPHONE-RECTOR 2-6300
Detrola Corp.
REYNOLDS
Members New York Stock Exchange
.80 Broadway, jsrew York 5, N, Y.
New York 5
45 Nassau Street
Tel. REctor 2-3600
Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise 6015
Telephone:
Bell
HART SMITH & CO.
& CO.
<
New
Members
Security
52 WILLIAM ST., N. Y. 5
Dealers
Assn.
HAnover 2-0980
Bell Teletype NY 1-395
REctor 2-7400
Teletype NY 1-635
York
New
York
Montreal
IRA haupt & co.
Members of
Principal Exchangee
111 Broadway, N.
Toronto
REctor 2-3100
Y. 6
Teletype NY 1-1920
THE COMMERCIAL & FINANCIAL CHRONICLE
2690
-
We Maintain Active Markets in U. S. FUNDS for;
R. B. Semler Inc.
CANADIAN INDUSTRIALS
National Air Lines
N.Y. New Haven & Hart.
Pfd. & Com.
Goodbody & Co.
Established 1920
PI., N.Y. 5 HA
40 Exchange
Members N. Y. Stock Exchange and Other Principal
Dealers Ass'n
York-Security
New
BROADWAY
115
2-2772
Telephone
& Pfd.
BArclay
Exchanges
NEW YORK 6, N. Y.
7-0100
<
-
•
-
Teletype
•
New
NY
York
Stock
25 Broad
Exchange
-
1-672
1
J 120 BROADWAY, NEW YORK
;
-
Tel.
REctor
New Orleans,
Direct wires to
2-7815
Member Economists' National
Committee
Monetary Policy
on
■
American
Embassay,
partnership in
Hoppin Bros. & Co., 120 Broad¬
way, New York City, members of
the
London
Exchange.
has
With all the meetings of experts and "so-called experts"' which
held or are about to be held for the purpose of foreign
II
Exchange
N. Y. 5
been
floor
broker.
as
WOrth 2-4230
thereto
Prior
he
of the essentials
in the past-was with the Bankers
fundamentals of
monetary and banking, system
type of currency stabilization which is to be in
"
<S>-
last-
any sense
ing
all
Not
omists
e c o n
going
York. Curb Exchange
New York 5
ment
1-1548
•
«'v
Byrndun Corporation
Stock
L. H. Gilmer
.
1936
Street, New York 5
Telephone: WHitehall 3-1223
'
Teletype NY
international
about
cur¬
of
stabilization
a
country's
cur¬
and financial system must
be worked out by that country it¬
self.
Some bilateral agreements
rency
H. G. BRUNS & CO.
Bell
Lee
E.
stabilization or even to
proceed to*the point of reaching
some
general understandings or
preliminary agreements, the real
St. Louis-San Francisco
20 Pine
Dr.' Frederic
type
talk
1-1843
two leading coun¬
of assistance but that
mainly in the field of
stabilization
of exchange rates,
between
say,
tries may be
would
a
of the United
rency
Lincoln Building
6s,
of
of
monetary and banking system is
the peculiar product of the coun¬
try in which it has grown up,
and while it .may be pertinent
to
Stock
There is
system.
a
be
particularly the par of exchange,
between the currencies of the two
(Continued on page 2702)
Investment
Pfd.
Rubber 5%
Seiberling
Nu-Enamel
Corp.
U. S. Finishing Co.
Common
with
our
nations
life?
Have
&
Preferred
Steam
Shovel
Preferred
Breene^AComponu
New Law Firm,
over.
High and
Members
37 Wall
Bell
N.
Y. Security Dealers
St., N. Y. 5
Teletypes—NY
Assn.
Hanover 2-4850
1-1126 & 1127
announce
Let
hopes are be¬
pinned
upon this idea.
But, evident¬
ly, so serious
ing
novel
and
plan
for
calls
otic
a
Opens
the formation of d
the Trading
and
Ex¬
Exchange Commission.
A. Nadel
Rappaport will be
Isaac M. Barnett, Jack
and
Jack
1
L.
associated with the firm.
Englishman,
dream
ex-
of
Dutchman,
American
or
;
't'"
A
trusting either of these,■
offenders.
Further
uncalled
for.
may
standpoints,
probably.Spain and Portugal.
The
of
It
Robertson
A.
Wm.
different
from
what
try
been
doing
course
it
New
York Curb
ST.
Exchange
NEW
.
.
YORK
5
HAnover 2-9470
.
our
coun-
for ! the
of our national life,
ought
Philadelphia
black-list,'
this
&
have
won
Reading
% COAL & IRON!
6s,
Bought
•—
1949
Sold
—
Quoted
BUCKLEY BROTHERS
Members New York Stock Exchange
63 Wall Street, New York 5, N. Y.
well be added, and
Greeks
but
war,
is
radically
has
Exchange
our
ad¬
WHitehall 3-7253
Direct
Wires to Philadelphia & Los Angeles
miration for their courage in this
senti¬
mental.
To
is
comment
Bulgaria
them
Curb
would
several
one
WALL
Teletype NY 1-1140
us
different
no
York
own
Frenchman
amination
from
New
on
Members
a place in the fam¬
ily of nations, namely Germany
and Italy. No thoughtful or patri¬
to be subjected to
imaginable' scrutiny.
approach to the sub¬
ject is extremely helpful. That is,
to look at the question as if we
closest
One line of
change Division of the Securities
and
1951
Frank: C.Masterson &Co.
64
v.
have forfeited
this
as
*Dealt in
begin this inquiry by
narrowing it down to the nations
of Europe. Of these, two at least
tyeing asked, as individualsj
partnership for the general prac1 to
join with a group of men in
tice of the law, with offices at
forming a firm or corporation for?
150 Broadway, New York City.
engaging in some line of business:
David Saperstein was formerly
In such a case, one of the first
of
1952
6s,
themselves alone?
en-
thusiastic
that
Julius Silver and David Saper¬
director
'■'V
point of view in
they made money or
lost it when they were acting for
when
is
war
whole
Silver & Saperstein,
stein
Marion
6s,
Harriman Building
/
ing foreign
the
Diana Stores
(Va.)
Debentures
Preferreds
Sfates going ipto,co-operation—almost into partnership
it h lead-
—w
so
Tin
European
widespread belief in the practicability and desirability
countries.
General
&
Indiana Limestone
Smaller
Editor, "Commercial and Financial Chronicle":
the
essentials
such
SViS, 1963
upon
of
Of
Shrewd In Trade To Make Good Partners"
general agree-
Each
Common
Failure
Keep Peace Among Themselves—Notes Pre¬
Unsympathetic Attitude Of Russia — Holds
"Englishmen Are Too Proud And Masterful And Too
less
or
Sy2%
vious
is
there
more
some
Telephone COrtlanflt 7-40T0
Common
To
Or
ments
mone¬
system,
but
System Teletype. NY
Points
Countries To Maintain Stable And Democratic Govern¬
thorough¬
Vanderhoef & Robinson
Bell
Reader
a
up
&
Common
minutia which
tary
31 Nassau Street
*5%
the details and
Loan Bonds
WHitehall 4-8120
Teletype NY 1-1919
Central States Elec.
experts
will agree ful¬
ly
upon
all
make
.
Broadway
Bell System
or
Fifth War
New
Members New York Curb Exchange*
65
Trust Co.
Should The United States Go Into
monetary
Members
Members New York Stock Exchange
or perma¬
nent.
BUY
a
Edward A. Pureed & Co.
&
Satterfield
in
partner
a
Bought—Sold—Quoted
individual
an
Lohrke, Hewitt & Satterfield, and
that lie behind any
1-1227
Teletype N. Y.
was
NATURAL GAS
Satterfield
Mr.
;
active
exchange stabilization and the stabilization of currencies throughout
the United Nations, it might be worth while to consider briefly some
or
SOUTHWEST
John P. Satterfield, member of
New York Stock Exchange,
will be admitted to
Formerly American Financial Trade Commissioner,
4's, 1956
Stocks
11
,
branch offices
our
the
have been
Bell
NY 1-1557
La.-Birmingham, Ala.
J.
Professor of Economics, University of Illinois
Standard Screw
120 Broadway,
Quoted
St., New York 4, N. Y.
HAnover 2-0700
New York Curb Exchange
By Dr. FREDERIC EDWARD LEE
Kendall Company
Members Baltimore Stock
—
Members New York Stock Exchange '
9
Members
•
Monetary Audi Banking System
Mayflower Hotel, Common
&
request ;
on
Sold
Steiner, Rouse & Co.
Mc Donnell & Co.
t
Four Essentials Of A Sound
Talon, Common
La France Indus.
'
—
1-423
BELL TELETYPE NY
Elk Horn Coal, Com.
Bought
Bought—Sold—Quoted
CANADIAN UTILITIES
,
KING & KING
:
COMMON
•.
Analysis
;
,
CANADIAN MINES
-
,
'
Power and Light
~s
& Co. Inc.
p. r
Delaware
\
:
-
CANADIAN BANKS
Mid-Continent Air.
Members
-
'VX-.
!■
-Trading Markett in:.
Thursday,'June 29, 1944
•
were
inquiries we would make would
be'this: How successful have" ou?
prospective partners been in the
management of their
own
af¬
fairs? How sympathetic are they
Greek
oU
than
more
needed for
success
is
courage
in governments
history, since King George
penmark ascended' the throne
in 1863 has been
of deep dis-!
disillusionment!
one
appointment and
Even
able
so
as
Mi
an
or¬
statesman
a
Venizelos could not
secure
derly administration at home. In
spite of the fact that, in classical
times,' Greece was the home of
democratic aspirations,
the fact
remains that a parliamentary form
of government
meet
the
has not seemed to
of
needs
the
6s, 4952
Memorandum
The years1 that followed
close of the First World War
must
bring
every
a blush to the face of
true friend of Greece.
(Continued
on page
Request
F.H.K0LLER& COMPANY
Grecian
INC.
people.
the
on
Ill
Broadway, New York 6, N. Y.
BArclay 7-0570
NY 1-1026
2704)
Amer. Bus. Credit 'A'
Back the Attack!
HENRY HOLT
Federal Machine
FASHION PARK, Inc.
Bagdad Copper
Deb. 5's 1969
Cuba
Co.
(Men's clothing)
Buy More
An industry
War Bonds!
...
& Welder
without compli¬
cated reconversion
its post-war
report on
problems
General
Wm. J.Merickag-Co.
INCORPORATED
request
Troster,Currie & Summers
Members New York Stock
1 Wall
Exchange
St., New York 5, N. Y.
DIgby 4-7060
.*
Teletype NY 1-955
Simons, Unburn & Co.
Members New York Stock Exchange
25 Broad
74
*
St., New York 4, N. Y.
HAnover 2-0600
Tele. NY 1-210
N.
Y. Security Dealers Ass'n
Trinity Place, N. Y. 6
Teletype
Private
Wires
Detroit
-
NY
to
Pittsburgh
-
Members
Union
-
Cleveland
St. Louis
Cleveland
Commerce
Stock
Bldg:,
29
Invest.
Southwest Nat. Gas
Cleveland
Broadway, New York 6
WHitehall 4-3640
Direct Private
Tin
Pressurelube, Inc.
Exchange
Telephone MAin 8500
HA 2-2400
1-376-377
Buffalo
Wheel
Electrol, Inc.
outlook of¬
Members
Gude, Winmill & Co.
Henry Holt Common
fers tremendous possibilities.
Detailed
Differential
Wire to Cleveland
14
MORRIS STEIN & CO.
Established
50 Broad Street,
1924
New York 4, N. Y.
Telephone HAnover 2-4341
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4294
159
The
CHRONICLE
U. S.
Reg.
5th War Loan
and
COMMERCIAL
FINANCIAL
Patent Office
BUY
William Dana Seibert, President
i.
William D. Riggs, Business Manager
\\
Thursday,
June
1944
29,
Published twice
|
'
Offices:
..Other
.
j
S.
Salle
La
1944
FIFTH
William B.
by
Reentered
as
St.,
York,
WAR LOAN
Dana
Company
Before
r\ <"
Newburger, Loeb & Co.
Members
|
Stock
York
New
St., N.Y. 5
Teletype
BeU
Exchange
['
WHitehall 4-6330
NT
|
1-2033
Of Transportation
And Stabilization
ment
In
Record—Mth. $20 yr.
Monthly Earnings Record—-Mth.. .$20 yr.
article entitled "World
an
pearing in the "Grace Log,"
and
Co.
&
Grace
must be made in New York funds.
Line,
the
discusses
trade
interna¬
and
tional
5fc Mark-Up Role
com¬
He
27, as a result of the hearing before the
which various dealer representatives re¬
quested that the SEC abrogate the 5% mark-up rule of the National
^Association of Securities Dealers. At the conclusion of the hearing,!
SEC Chairman Ganson Purcell stated that the Cofrimission would
a
"there
cleavage
t
city,
Messrs,
Patterson
for
York
New
Closed?"
Commerce Open Or
cent hearing by President Frank
Edward A. Kole and A. M. Dunne, did not enter a brief. (Full
Metz, as counsel for the Securities account of the preceedings at the
Dealers Committee; James J. Ma-,
SEC hearing on June 13 appeared
guire of Albrecht, Maguire &
in the "Chronicle" of June 22,
Mills, Esqs., Buffalo, N. Y., on be!
-half of S. C. Parker & Co., Inc.,, starting on page 2582.)
cording to report, by the follow¬
After The War
Securities Dealers Too Can Serve
of
the
tions
na¬
of
the
western hemi¬
r
sphere and the views of the
prosperity is deserving of the most
sympathetic consideration." How¬
ever, he strongly condemns Mr.
Churchill's policy to maintain the
British
"Imperial
Preferences"
agreements despite the Atlantic
Charter, and to create in the post¬
war period a "Sterling Area" con¬
stituting a "trade ; group" oiUthe
entire United Kingdom and the
Colonial Empire.
».,■
.
,
•
"In a word," says Mr. Iglehart,
"a trading wall is to
be built
around
the
British Empire and
reign
at great sacrifice of blood,
:
that
win the peace as well, these are our de¬
wall
is
be
to
extended
heretofore unknown in the world.
peace.
Correspondingly the problems of
peace will be greater. There will
be returning millions to challenge
will
these
thinking.
adept
most
our
must provide.
we
For
That is
>
the
account for
a
1
much
agencies
-
to
The
hope
setting
the
and of
cent
new
•
foreign
discoveries
Many
re¬
will
help make
new1
industries,
39
Broadway
New York 6, N.
HAnover 2-8970
Y.
Teletype NY 1-1203
Crowell
Bought
Members
New
Ill
to
REctor 2-5288
Bell
System
NY 1-2480
Teletype.
TRADING MARKETS
Federal Screw Works
Listed St. Louis S. E.
Memoranda
In
on
Request
Hibzog&[O;
debtor
a
Bell System
.
is
it
reasonable
of
it
or
to
COrtlandt 7-6190
Teletype NY 1-84
remain
may
assume
at least
a
great
so
after
holocaust, - a- corresponding
downward revision of America's
stake abroad would
seeni
If similar allowances
f
in¬
American
SUGAR
in order.
in
other,
parts of the world, notably Cen¬
tral
recent¬
and
South
America,
it
will
be found that the extent to which
the United States is
debtor
De¬
nation
once
more
a
is
substantially in
excess of the three-quarters of a
billion dollar figure given above.
$13 V4
Winkler
Attention
-
billion, of
should
(Continued
be
on page
SECURITIES
made for
are
investments
vestments
of about
Broadway, New York, N. Y.
Bartgis Bros.
taken
Treasury
.
the
an
o
fYork Security Dealers Attn.
the value of this invest¬
deal
at
Sold
purely problematical, and
the
United
—
J.F.Reilly&Co.
enemy countries";
$1,775 million.
Inas¬
that most of it
in new capital, partment re¬
of new business, veals a total
industries.
as
since
lies
up
"the six
investments in
This will take time; and ly ; under the
prove adequate to pull
auspices of the
.
,
ment is
not
promise and our duty.
• ;
enough to say that our this possible.
New
capital,
men
will get their jobs back.
our
will
in all the slack.
J. GOLDWATER & CO
170 Broadway
amount.
American
effort
war
Information
Laclede-Christy Clay Products
again be said to be
which
lion, while
inventory
'
industry
existing
from
Statistical
QUOTED
Members New York Security Dealers Assn.
(Continued.on page 2710)
extent of that
States
Therefore, we are looking ahead. We call it post-war
!
-
..
By DR. MAX WINKLER
about $14 bil¬
'planning.
®
True,
The problem is truly colossal.
We are waging war on a scale convert
SOLD
-
,
ma-
Governmen-
and resources.
To win the war and to
Complete
Excluding United States credits and advances to foreign coun¬
tries in connection with Lend-Lease, as well as recent heavy grants
to and expenditures in the republics South of the Rio Grande, Amer¬
ica's, stake abroad is exceeded by foreign investments in the United
place
terminations.
BOUGHT
fore, agrees that "any plan which
even
purports to bring Britain
II.S. A.--Debtor Nation?
t
By M. R. CONNELL
again, peace which will have been won
CERTIFICATES
ing desperately for guarantees of
security and stability," and there¬
other words, the United States may once
nation to the
The juggernaut of Nazi Lebensraum has been stopped.
We look ahead to the day, not far off, when peace will
TITLE COMPANY
jority of European nations, weak¬
ened and discouraged and seek¬
States to the extent of close to threerquarters of a billion dollars.
•
STREET, NEW YORK
ap¬
was
ing:
\
judg¬
Services
Dealers Association,
represented at the re¬
Security
which
The
the
w e e n
buoyant
Stewart Iglehart
D.
Baker, Hostetler &
of Cleveland,
counsel
NASD.
the
be-
prosp erous,
and by Joseph C.
Hostetler and Stephen C. Thayer,
of
is
national
views
that
the
to come.
points out
that
take the matter under advisements
changed, and an additional week
for making rebuttal briefs,
j
The briefs recently submitted to
the Commission were made, ac¬
in
take
years
on Tuesday, June
Commission on June 13, at
of
rela¬
tionships is to
(. mission
various parties to the
proceedings two weeks in which
'to file,briefs, which are to be ex¬
our
bid!
a
WALL
of W. R. Grace "
NOTE—On account of the fluctuations
exchange, remittances fbr
foreign subscriptions and advertisements
in the rate of
filed with the Securities and Exchange Com-
gave
DO know
we
back
June 27, D. Stewart Iglehart, President
on
mercial
^and
and
of June
Throughout The World ];
Briefs Filed With SEC On
were
you
as
Telephone: WHitehall 4-6551
ating Facilities For Lending Abroad, And (4) Improve¬
world
Three briefs
with
Imports To Balance Exports; (3) Cre¬
pattern which
NASD
99
Program Comprising: (1) Adoption Of L
Increase In Our
Other Publications
Bank and Quotation
ment
Teletype NY 1-S
The Gold Dollar As An International Standard; (2) An
"■,*v.-,
•'
f
•
But, Mr. N.,
today,—and, we'll
Members New York Stock Exchange
A Four Point
;■V
Subscriptions in United States end
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South anu
Central
America,
Spain,
Mexico
and
Cuba, $29.50
per year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
Buy More Bonds
40 Wall
emulate
President Of W. R. Grace & Co. Offers As A Substitute
second-class matter Feb¬
3, 1879,^
I
to
what ANY inactive security is worth
Proposal Of "Imperial
Preference" And "Sterling Area"
Condemned By D. Stewart Iglehart
25, 1942, at the post office at New
N. Y„ under the Act of March
ruary
*
British
"Chicago 3, 111. (Telephone: State 0613);
1 Drapers' Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith.
Copyright
Than
try
issue)}}.
Monday
135
q
y j;y
CHICAGO 4
Harrison 2075 .r'.Vs
Teletype CO 129
DIgby 4-8640
won't
29, 2044.
25 Broad Street, New York
Telephone HAnover 2-4300
(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, etc.)
<•:'
Dealers Ass'n
Board of Trade Bldg.
NEW YORK 4
—we
Spencer Trask & Co.
1
»
week
a
Thursday
and every
STRAUSS BROS.
Teletype NY 1-832, 834
NO,
NOSTRADAMUS!
PREFERRED STOCKS
;
(general news and advertising
Broadway
>,
and Industrial
Editor and Publisher
every
32
Public Utility
>
predict the price of Steel
BONDS
Security
AND COMPANY
BEekman 3-3341
WAR
York
LiCHTinsTim
B. S.
offerings of
':\
...
Herbert D. Seibert,
New
interested in
are
High Grade
25 Spruce Street, New York 8
,
Members
We
;.j.j
William B. Dana Company
Publishers,}
2691
called
DUNNE & CO.
Members New York Security Dealers Assn.
25
Broad
St., New York 4, N. Y.
Tel. WHitehall 3-Q272
to
2712)
It is not
had to close going
Many of them
new
business—all these
spell fi¬
instance in nancing and this .brings us direct¬
The employers of ly into the securities field.
businesses in the first
order to serve.
Securities dealers are both will¬
discontinued theirs
varying reasons arising out of ing and anxious to do their part;
many
for
more
united effort, such as lack of
our
manpower,
war
time
shortages,
regulations, and allocations.
but to do
alertness
a
competent job requires
Does the present set up with
NASD at the helm of good morals
for
in
men, there
their old jobs,
there will be no jobs to re¬
most
of
these
turn to.
to
do
-this,
a
a
fixed responsibility
whacking
securities
must have, an
securities
field
lend
itself
readily to top performance?
•
Here lies
the
good
job.
In
dealers can and
important part.
answer
is
and
120 WALL
Warrants
Pacific Geait
Exchange
ST., NEW YORK
Public National Bank
Securities.
& Trust Co/
*First quarter analysis
available on request
good
on page
business
2707)
Wyeth & Co.
Quotations Upon Request
C.E.
.-;
Teletype N. Y. 1-2123
LOS ANGELES 14
NEW YORK 5
TEL..HANOVER 2-9612
opposites. We believe that the
(Continued
York Stock
Our
decidedly "No."
Monopoly
are
New
New York Coffee & Sugar
Exchange
SUGAR SECURITIES
.
will be no return to
To
American Cable & Radio
co.
Members
from
freedom
and
worry.
farr &
40 Wall St..
■
"
647 So. Spring St.
.
Members Los Angeles Stock
Exchange
Unterberg&Co.
Members New York Security Dealers Assn.
61
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
.
Teletype NY 1-1666
THE COMMERCIAL & FINANCIAL CHRONICLE
2692
Art Metals Cons.
ward & go.
man*
Oxford PaperCom.6- pfd.
Crowell Collier Pub
i
ACTUAL MARKETS
Com.
Cespedes Sugar 7>/2 '39
Assoc. Gas & Elec. 4s 78
Warren Bros."B"& "C"
IN 250
Thursday, June 29, 1944
.
Bought - Sold
-
M00RE McCORMACK LINES
;;
Goodbody & C
England Indus. Units
J
Buda Co.
'
V/'.'
Members N. Y. Stock
1
Common '
:
.
$2.50 Preferred 'V.
''
—/VJ-
CHICAGO
BARCLAY
TELEPHONE
/'
/
105 WEST ADAMS ST.
NEW YORK
Wickwire Spencer
k '
Exchange and Other Principal Exchanges
115 BROADWAY
.
H. H. Robertson
Incorporated
Quoted
ACTIVE ISSUES
New
■
-
Sold
Bought
1-672
NY
TELETYPE
7-0100
Quoted
Scovill Mfg.
Pollak Manufacturing
I
Crowell Collier P. Com. & Pfd.* '
*
Dumont Laboratories
Polaroid
*
*
ACAUXN««>COMEANY
Majestic Radio
Merchants Distilling
Southwest Natural Gas
Chicago
Bendix Home Appliances
Nu-Enamel
*
Title Guar, & Trust
A Low-Priced Stock in
*
Line
Circular
on
With
Request
Public Util. 5V&*
York
New
Security
Dealers
'
REctor
Bell
2-5288
Teletype
System
;1
Div. Arrears
NY
Circular
Semler
Candy
,
Air
San-Nap-Pak
Botany Worsted "A" and Pfd.
Brockway Motor*
Triumph Explosives
Remington Arms
Corporation
Abroad At
United
,
Cement
tions by
Drill "A" & "B"
Canada,"
published
Paper,
the
with
White
connection
in
Using
budget.
1943-44
*1? IINIS
Chicago
& Southern Airlines
Elisha
National
\
Airlines
I
•
'
Gas
Amer.
Pub. Serv. 6% &7% Pfd.
& Power & Wrnts.
Gas
Derby
Peoples Lt. & Pwr. Com.
Power
BRITAIN'S
Springbrook
of
'
ling
.
securities.-.™
of
ster¬
and
free loans
875
' -i •' 2,600
> " 3,500
825
3,300
r-
Pfd.
"In
International Detrola
gregated
to the end of 1943 ag¬
millions
£3,000
about
and above the lend-lease aid
over
received
this
from
I
Magnavox Corp.*
Canada's
I
General Instrument*
tion of 1943-44.
and
country
appropria¬
mutual-aid
,
v
than one-half
ered
by;. drawing
capital and
sources,
including
some
£650 millions
.
v
was
Britain's
on
exchange re¬
the -loss of
of gold and
foreign exchange (largely to the
U.
S.
before
and the
lend-lease)
liquidation of about
£1,000 mil¬
lions of overseas investments.
would
Members N. Y. Security
Dialers Assn.
j
BROADWAY, NEW YORK 5
NY 1-12881
Direct wires to Boston & Phila.
ENTERPRISE 'PHONES
Hartford
6111
—
Buffalo 6024
leave
a
millions
£1,300
of
balance
This
about
borrowed
a
few
regularly
which
other countries
supplied
market before
the
the war.
British
In
on page
the
.
Engdahl With
Goldman, Sachs & Go.
&
Hospital Fund, and a
mittee of New York State.
MASS.
associated
now
Los
Spring St
Angeles
L.
A.
42
Specializing in
with
them
AMALGAMATED SUGAR
as
UTAH-IDAHO SUGAR
Manager of their Trading Depart¬
Engdahl
Mr.
ment.
~
Co.,
announce
is
650 So.
-
196
SALT LAKE CITY
—
Goldman,
75' Federal Street,
that Arthur E. Engdahl
BOSTON,
Sachs
Bldg.
F.
Arthur
member of* Finance Committee of
the United
Russ
San Francisco
S.
New
York, a Graduate Council
Representative of the Princeton
University Fund, trustee of The
Seeing Eye, Inc., a trustee and
C.
COrtlandt 7-1202
-
report on
h. r. BAKER & CO.
PH 30
Private Phone to N. Y.
;
a
our current
Transamerica
St., Philadelphia 3
Pennypacker 8200
Finance Com¬
Princeton Club of
years was
for
many
Analyses Upon Request
with White, Weld & Co.
2709)
Sugar Stocks Attractive
J. V. Loewi Acquires
Amalgamated
Cgo. S. E. Membership
J.
Victor
Loewi &
Loewi,
President
of
Co., 225 East Mason St.,
Milwaukee, Wis., was
elected to
Exchange by the Executive Com¬
mittee, it is announced.
Co.
is
the
eleventh
com¬
parison it may be noted that dur-
(Continued
of
for
and
Utah-Idaho
attractive
offer
Sugar
Company
Sugar
Company
possibilities,
Edward l. burton
&
COMPANY
ESTABLISHED 1899
160
Salt
Main
BELL
Street
Lake City
ac¬
SYSTEM
1,
TELETYPE
Utah
SU
-
464
cording to detailed financial an¬
alyses of the situations prepared
by Edward L. Burton & Company, Kahn Elected Member of
at membership in th,e Chicago Stock
short-term from the sterling area
and
mittee
!
cov¬
overseas
Request
on
probably
1606 Walnut
it
member of the War Finance Com¬
,
"Of this amount somewhat more
Mallory*
/
a-
.
on
PACIFIC COAST
Request
BOENNING & CO.
member of the
Perry E. Hall
•„
MARKETS
SECURITIES
partner of
Morgan Stan¬
ley & Co., a
ance
on
Send
the
Mr. Hall is
9,400
and
of
serves."
1943, according to the Chan¬
of the Exchequer's latest
cellor
Memorandum
of
community
2.350
FRANCISCO
always available
Stock
Common
value
and
Exchange
CURRENT INFORMATION
1
man
——_
Members St, Louis Stock
PH 265
SAN
both to Beek¬
Britain up
REctor 2-8700
STREET
N. Y. WH 3-7253
post.!
be
great-
•
Chicago Tractions
—
hospital
will
Du Mont Lab. "A"*
120
OLIVE
are
affairs
the
"Dollar
■*
650
-the
•
_
Emerson Radio
* Circular
I...
St.LouisI.Mo.
Philadelphia. 2, Pa.
<
Phila. RIT 4488
ticipation in
V
*
budget message, the adverse bal¬
in
international payments
was £ 655 millions. Thus the total
wartime adverse balance of Great
P. R.
"We
this
for
Equivalent
Sterling
balances
Accumulation
Majestic Radio & Tel.*
}
1939-1942
'.pounds
...
gold and ;.
exchange?
of
Sales
Pfd.
St.,
Bell Teletype
His active par-
OF
BALANCE
ADVERSE
PAYMENTS,
foreign
& Pfd.
Pfd.*
Water
Members New
1529 Walnut
an¬
& GAS
Loss
Stromberg Carlson
I
,
Stock Exchange
York Stock Exchange
in
securing
Perry E. Hall,
Tel. Com.
Nassau & Suffolk Ltg. Pfd.
& Lt.
$2
IPuget Sound Pr.
& Lt.
I
Teletype—CG 362
INVESTMENT SECURITIES
request
Walker
Mr.
&
Queensboro Gas & Elec.
I
1
'in
most fortunate
/
Elec.
Iowa Southern
Scranton
Memo
to
...
Cons.
Mass.
"
Stix & Co.
FEDERAL WATER
& Electric
Elec.
3002
Pennsylvania
said:
Serv.
Washington Gas & El. 6s, 1960
Illinois Power Div. Arr. and Com.
Central
Company
Hospital
of
payments
incurred
beginning of the war up
the end of 1942 was met.
His
(Alj. figures in millions)
& Gas Pfd.
I American Utilities
Service Pfd.
Util." Com.
I
Salle St.
ST. LOUIS
from the
Conn. Light & Power Com.
Pub.
Southwest
Randolph
BUCKLEY BROTHERS
Chairman,
estimate, published in the JuneSeptember, 1943, issue of the Eco¬
nomic Journal, is given below:
v
>!
New Eng.
I
Airlines
Airlines
Northeast
Walker,
balance
Airlines
Mid-Continent
MARKET
Members Philadelphia
tion, Dr. Nicholas Kaldor of Cam¬ nounced on June 23 the election
bridge University made a rough of Perry, E. Hall as a director of
calculation as to how the adverse Beekman Hospital.
Airlines
Export
and
S. La
509
Of Beekman
this and other available informa¬
Inland
Teletype BS 69
„
Tax free in
Perry Hall Director
the Letter,
says
"was estimated in the Third
Industries*
Home Appliances
American
'
the United States or the
American
Bendix
1990
arrangements with^
contribu
the lend-lease
Herrington
Setay Co.
United
Great
■■
CHICAGO 3
,
implications of Great Britain's adverse balance of payments. The
institution's views on the subject as revealed in their Letter followf
"The extent of Britain's adverse balance of payments, not covered by
Pub.
McFadden
Marmon
-
H. H. Robertson
T
^
v
,
Portland
Giant
J,
$
.
135
SQUARE
MASS.
9,
Eight Billion Dollars
Letter of the National City Bank
interesting and enlightening discussion of
the accumulation of sterling balances in London, and the post-waT
Whelan
Cigar
Talon
„7-:.
'
■
PHILADELPHIA
of New York contains an
Transportation
Axton-Fisher/'B"
•
Tel. HUB
The June issue of the monthly
;
Rayon
&.
"Terminal
■
SECONDARY
Copies
OFFICE
BOSTON
Estimates The Nation's Post-War Short Indebtedness
Eastern
Shenandoa
Available—Send for
POST
10
Car
Auto
*
,
underwriters
LERNER & CO.
National City Analyzes Britain's
Adverse Balance Of Payments
Riley Stoker *
Luscombe
For
19M-20M
Ctfs.
Pacific Coast
—
DISTRIBUTION
INDUSTRIALS
Long Bell Lumber*
Lawyers Mortgage Co.
Middle West
1-2480
-
Loft
Wholesale Distributors
Stock 2 9/16-2 11/16
New York, N. Y.
111 Broadway
WarnerrSwasey
G.
CARTER H.C0RBREY& CO.
-.7
(Pa.)
Association
1
& Bonds
Industry
an
Bright Future
a
J.F.Reilly&Co.
Members
R.
Minneapolis
CHICAGO
Giant Portland Cement
.
I
Hearst Pfd.
Vicana Sugar Com.
.7
^:
Milwaukee
MOXIE CO.
;
,
Panhandle Eastern Pipe
Cent.
Boston
BOSTON, MASS.
Alegre Sugar
Punta
New York
Stromberg Carlson
Moxie
Liberty Aircraft
Mohawk Rubber*
Incorporated
■s:
Emerson Radio
Consolidated Textile & Bonds
member
change.
corporation
Loewi &
registered
of
the
ex-
160 South Main
City, Utah.
esting
studies
Edward
upon
L.
Street, Salt Lake
Copies of these inter¬
may
Burton
request.
be-had from
&
Company
:
Put and Call Brokers Ass'n.
L. P.
York.
Kahn, 50 Broad Street, New
City, • has been elected a
member of the Put and Call Brok¬
ers
and Dealers
Association, Inc.
159 " Number 4294
Volume
.
2693
THE COMMERCIAL & FINANCIAL .CHRONICLE
/
>•
PANAMA COCA-COLA
Dividends declared 1944 to date
•'.v.
Dividends 1943
-
$4.50
1942
-
3.65
"
-
CANADIAN
$2.25
—
SECURITIES^
Abitibi Power &
Approximate selling price
Circular
27
—
Miracle...
request
on
Bear
Exploration & Radium
British Dominion Oil
HoiiRqse&Trqster
Established 1914
Brown Company
,
Trinity Place, New York 6, N. Y.
74
Consolidated
Teletype: NY 1-375
Telephone: BOwling Green 9-7400
primarily
willingness
American
The
mass of materireason—the
el now overwhel
ming theofAxis
is due
Fanny Farmer Candy
industrialists, often within the
International Utilities
industry, to cooperate,
same
PEACE TIME POSSIBILITIES
Bird & Son '
with
Riley Stoker
.
*PuroIator
Kerr Addison
American Hardware
-
*
Circular
on
request
•
■-
-
Similarly,
j
Magazine Rptg. Razor
;
dealers find it advantageous to cooperate
many
us—as we
do with them. Often
Minnesota & Ontario
directly apply
we can
our
knowledge of securities, based upon both statistical analy¬
ses
and constant market contacts, to the
Preston East Dome Mines
particular problems
Proprietary Mines
Pend Oreille Mines
mutually profitable end.
120 Broadway, New York
Ward & Co.
Members
1926
Established
New
Bell
to
your
Phila.
Sun Life Assurance
business ? 'Phone or teletype us the next time an un-
usual'situation arises—and let
6111—Buffalo 6024
Hartford
'Phones
applicable
Why not test for yourself just how this policy is
V
Teletype NY 1-1288
York Security Dealers Association
Direct Wires to Boston &
Enterprise
Steep Rock Iron Mines, Ltd.
2-8700
REctor
Paper Co.
Noranda Mines
.
of the dealer and his customer to a
Phone:
Paper
Electrolnx
to one
*Electrolux
Paper Co.
Andian National Corp.
if
us see
we
Thompson Lundmark Mines
Ventures Ltd.
can't get together.
HART SMITH & CO.
52
R. W.
By Creating Incentives
TO LARGER PRODUCTION AND NEW
Economist
By BENJAMIN F. FELDMAN,
According
Force of able
boston io
newark 2
-1
Members New York Stock
Exchange
government,
public
Back the Attack!
.
Construction
^
y
!
5th War Loan
railroad,
municipal,
utility,,
bonds
industrial
stocks
investment
and
The Problem and Basis of Approach,
Frederic H. Hatch & Co.
C.ry,
■
t
Incorporated!
63
estimates, the post-war Civilian Labor
and willing workers will number between 53 and 55
Wall Street
reliable
to
Toronto
Buy U. S. Treasury
Employment By Means Of A Graduated Scale
Of Corporate Income Tax Reductions For Expanded
Output—Also Would Allow Temporary Tax Exemp¬
tions On New Capital Outlays And Increased Deprecia¬
tion Deductions On New
HAnover 2-0980
NY 1-395
Montreal
<
■YKi
"
744 Broad Street
Incentive Basis For Increased
Economist Presents An
Post-War
;
new york 5
' •' v- ' >
'
St., N. T. 5
Bell Teletype
Pressprich 8C Co.
68 william street,
!. .c .•.r.\\.;
■■
r!
201 Devonshire Street ' !
■■
CAPITAL EXPENDITURES
WILLIAM
New York
I
New York 5, N. Y.,j
'
,
Bell Teletype NY 1-897
I
I
\
millions. Post-<$
Employ-
war
o
should
t
m e n
-c
m
p r
hend
e
Elmer E.
fairly
work
through¬
Merrill
steady
the
out
year,
provide
an
annual income
t
sufficient
.
furnish
o
fair
a
standard
o
f
living, and
represent real
jobs
which
produce goods
a n d
services
?
needed
—
not
manufac¬
tured
Feldman
F.
Ben.
y
.•'
or
jobs.
relief
More¬
in achieving such employ¬
ment, resort should not be made
to spreading work or shortening
over,
such
the
below
hours
normal
The
because
conceals
procedure only
unemployment.
some
magnitude of the problem
if we note that even
is emphasized
our
total maximum production of
goods and services attained in the
peace year of 1929 would be ma¬
terially inadequate after the war
to provide the necessary amount
of employment and to support by
tolerable
taxation annual expen¬
Federal Govern¬
ment of roughly 20 billion dollars
ditures
by
Myers Joins
Internat,l
-
the
Lynch Staff
Elmerassociated
Fen--
Pierce,
&
ner
E.', Myers has
- with
Merrill
Beane,
;
.
-
.
.
-
.
...
International monetary conferences are a
and
Exchange and
other leading
Following the Napoleonic wars, JhoweVer,
.national.
broadened
foreign
their
changes.
Mr.
Myers has re¬
cial
cently
change,
bee n
forces
in Africa. Be¬
F.
Rothschild
&
Co.,
c o
Elmef
E.
Myers
New
York
City, as
manager of, the., unlisted depart¬
ment
and
prior
thereto
with
Sutro
&
Bros.
for
Co.
of years in charge
a
number
of the unlisted
was
of the organizers of
one
different
of
Security Traders Association
New York.
in-
about
h
firm
and
A.
hap¬
M.
Sakolski
organization
issue
concerns
ment
to
to
and
wield
use
after the war in
basic
assumption
(Continued
of
on page
de¬
This
methods
by Vilas & Hickey, 49 Wall Street,
and
New
not
so,
plan
2706)
York
City, members of the
'a
New York Stock
is
of this
study
firm upon
Exchange. Copies
may
.be had from the
request.
inconveniences.
d
situation
particularly
And
my
a
tailed study of the situation issued
coping with the
employment problem.
according--to
a n
power
extensive
totalitarian
but fractional
turbances
became
when
Australian
gold
manifest,
California
the
discoveries
only increased vastly the sup¬
ply' of
brought
.
formerly
&
Co.
monetary
about
continued
'
material,,
abrupt
on page
and
2708)
but
dis¬
&
Hammill
"
Formation
be
do not want the Federal Govern¬
fundamental
A
the
5s,
Pfd.
\
of
'
with
Co.
C.
Moore
previously reported in
The Financial. Chronicle of June 1.
Co.
,
»
7.A.Saxton&Co./Inc.
J
PINE
ST.,
N.
WHUehall 4-4970
Y. 5
Teleytpe
1-609
NY
;
-
Frank
Northern Ry.
2032
Copies available upon request
70
political aspects involved in
post-war employment.
It is my
strong conviction that most df us
terest.
was
'
pfd.1" -
England Power Ass'n
6%
in
charge of the order room and
stock trading.
Prior thereto he
was a partner in Frazier Jelke &
Co., and was with E. F. Hutton
more
to
Moore
Shearson,
na¬
enever
pened
Moore.
Frank C.
is
Mr.
of
Com.
&
New Orleans Great
in
the placement of large blocks of
securities. Proprietor of the new
moved
tions
New
with
York
July 1
securities business specializing
and
Coins
there
the
be-
currency
Open July I
will be opened on
to do a general over-the-counter
more
more
$5
City,
tensified.'
w
Cert.
Interstate Bakeries ; ;
offices at 42 Broadway, New
nt'inuous
and
1952
Giant Portland Cement
Frank C. Moore Company,
and
easily,
trading department.
He
moves
came
L.
with
was
To
_
Fireproofing
5s,
•
Div.
and*
transfers
entering
assisted.
or
Frank G. Moore Go.
monetar y
the service, he
promoted
& 5s
$5 Pfd.
General
in'ter-
nt
m e
be
4Vis
.
Cleveland-Cliffs Iron
the nations of Europe in-
*-<$>
'
:
commer-
capital
serving in the
fore
and
creased,
ex¬
operations
exchange
discrepancies in the
ratios of exchange values between
th$ coins and currency of separate
Arbitrage Possibilities
countries, it would result in the
Interesting arbitrage possibili¬ local drainage of the supplies of
ties are offered in the Chicago, these
necessary
exchange me¬
diums, and create financial dis¬
Milwaukee, St. Paul & Pacific re¬
including around 6 billions for in¬
would
York .Stock
armed
development of the last
century.
Previously, nations constructed their monetary systems in¬
dependently-and there were no serious efforts to bring these systems
into harmony or to create a mechanism whereby international trade
York
New
City, members
of • the • New.
following
Associated Electric Co.
City College, New York
,
70 Pine Street,
the
on
prepared in recent
months r
By A. M. SAKOLSKI
<
.
.
Memoranda
have been
A Review And A Forecast
become
Lynch,
'•
Monetary Conferences
American Maize
Products Co.
was
General Tin Investment
Investment Opportunity ;
Ohio Match
Securities of the Southern Pa¬
interesting opr
portunities for investment accord¬
cific: System offer
ing to
a
Corporation,
100
Co¬
Boston
pies of this circular discussing the
situation
from
& Pump Co.
circular prepared by The
Broadway, New York City.
First
Tokheim Oil Tank
The
tion upon
in
detail
First
may
Boston
request.
be
Frederic H. Hatch & Co.
had
Corpora¬
63 Wall
Incorporated
New York 5, N. Y.
Street
n.il
T.l.tvn«
NY
1 -897
FINANCIAL CHRONICLE
THE COMMERCIAL &
2694
Thursday, June 29, 1944
Central Illinois Elec. Gas Com.
Public Service of Indiana Com.
Company
Securities
First
Delaware
UTILITY PREFERREDS
Chicago
of;
\
&
6
CO.
&
in
membership
135
Riine, Webber, Jackson & Gr its
the
i
1520
AN DOVER
STREET
SALLE.
TELETYPE
1399
C.G.
stock
WANTED
was
Reliable trader
ordered cancelled bythe SEC).
was
About
a
two of the company's stockholders brought suit
year ago
claiming
against International Paper
accounting
an
or
to
'■
•
Hydro of certain security hold¬
ings.
Explained
By DAVID M. WOOD*
In this connection the Fed¬
exclusive ju¬
tion
damages in
range of
1942 had
stock in
common
ities
doubtful whether it could be
risdiction, and appointed a special
investigate the relations
between the two companies. Coun¬
national
sidered
a
a
"real"
of
asset
Inter¬
Public Securities Under
while, although the SEC has con¬
tinued its parallel investigation,
Aims
the "death sentence" oi-der of dis¬
companies.
suspended by
the court's interlocutory decree.International Hydro's principal
assets consist of an 86%
equity
sented several months ago to
Of Wood, Hoffman,
York City
King & Dawson, Attorneys, New
sel's
Of
Attempts Of SEC To Place Issuance
Because Of
Federal Control, The Boren Bill
To Insure That No Distortion Of The Securities
That Defeats Intention Of
Congress To Exempt Transactions In Public Securities
Bill Checks Transgression On State And Local Autonomy
Exchange Act Can Be Used
I
been
have
explain briefly to the members of this
of the Boren Bill and the reasons which
prompted^
to
asked
organization #the purposes
J
Congressman
to
Boren
111-
let
First,
me
what
state
the Boren Bill
It
isnot.
not
bill
a
relieve
dealer
is
to
any
in.pub¬
lic
securities
f
penalties
o
for fraudulent
transactions in
securi¬
such
M.
Wood
Federal
which
became
in¬
the Securities Act of 1933j was
Congress, it was ap¬
plicable, to State and municipal
bonds, and all of the restrictions
placed upon the issuance of cor¬
porate bonds by that bill were apiplicable to State and municipal
bonds! This produced a storm of
protest from State and municipal
^officials, with the result that be¬
fore Congress enacted the bill it
-exempted such securities from all
fof its provisions, with the single
address
the
made by Mr.
Municipal
Wood
of
Forum
,New York, June 25, 1944.
(Continued
,
con¬
were
distributed
prizes
at"'the
outing-dinner on June 15, 1944,
and were reported in detail in our
issue of June 22, 1944, J. Arthur
Warner
of
Arthur
J'.
Warner
&
period of the outing, upon his
Alfred E. Loyd,
complish, it will be necessary for
to review the history of the
Federal securities legislation.
before
which
other
and
door
be indicted by
ane
f*An
for
tion
the
explain to you just what
the Boren Bill is intended to ac¬
bill,
cash
made
by yario.us members of the New
York
Security Dealers Associa¬
dulges in such
practices can
to
troduced in
the
Co., members of the Association,
the
the
to
tributions amounting to $170
who had been out of town during
regardless of the en¬
actment of the Boren Bill! In or¬
When
addition
In
Billing
"in¬
who
authorities
der
N. Y. Dealers
ties. The deal¬
er
David
Additional lift For
on page
2710)
return
New
to
York
mailed
to
Executive Secre¬
tary of the Association, a check
of J. Arthur Warner & Co. in the
of
making a total
contribution
by
member
of $220.
amount
cash
firms
$50,
Ins. Situations Of Interest
Firemen's
Co.
Insurance
of
Newark and Providence Washing¬
ton Insurance Co. offer interesting
situations,
memoranda issued by
Hecht,
York
detailed
according -to
67
Wall
solution
has
interest
in
Huff, Geyer
Street, New
randa
City. Copies of these memo¬
may be had from the firm
upon
request.
*
■
.V
been
,
Gatiheau
of
Power
Canada, 88% of the common stock
New England Power Associa¬
tion
and
100%
interest in the
of
stocks of two
hydro-electric oper¬
Hudson River
Power Corp. and System Proper¬
ties, Inc. (plus advances to the
latter companies).
The value of
these assets may be estimated as
ating
it.
troduce
report is to be made to the
court by Sept.
1, 1944. ;,; Meanr
Millions
,
1,439,024
Gatineau
shs.
shs.
England
Power
—1
4.9
—
Hudson
to
and System
River
Power
Earnings
italized
have
from
of
Hudson
at
10
Seeks
,
in
but
stock would receive new
common
of the
dividends
and
arrears
on
This
figure
is equivalent
to the 6%
preferred
amounts
to
$1,140 per bond on the de¬ $12.50. Hence, it is problematical
benture 6s of 1944, but these fig¬ whether the
present bid price for
ures might be subject to consider¬
the common on the Curb
(the
able shrinkage before bondholders stock has been inactive
recently)
have their claims liquidated. Hud¬
reflects the potential liquidating
son
River
Power
reported
no value
of
International
Hydro's
Federal tax liability in 1942-43,
holdings.
presumably because of the con¬
Perhaps the key to the future
solidated system tax return; and value of New
England Power lies
if placed on an independent basis in Federal taxes. In
presenting its
Federal taxes might cut sharply
plan to stockholders the manage¬
into earnings.
1
Some of the utility companies ment estimated "normal average
Quebec Province-are being ex¬
legislative, order.
the Que¬
by
propriated
Rates have been .cut by
bec Public Service Board and the
post-war" share earnings on the
new
common
stood
that
at
this
$1.15; it is under¬
based
was
on
re¬
;
duced Federal taxes.
authorities
attitude of the Quebec
!. While
there may be consider¬
like that of Washington, to
antii-utility. Whether able shrinkage in the liquidating
Gatineau Power has felt the full Value for
Hydro' bonds, as esti¬
seems,
,
be distinctly
Interesting Rail Situation
Adams
&
63 Wall St.,
New -York City, have prepared
an interesting circular on Boston
& Albany RR., which appears at¬
tractive at the present time, the
firm believes.
Copies of this cir¬
cular may be had from Adams &
Peck upon request.
Peck,
effects
of
this
is not clear.
current- campaign
rumored that International Hydro
might
distribute' its • holdings
Gatineau
as an
of
initial "liquidating
dividend" to bondholders,
but this
presumably has been deferred by
the court investigation.
New
mated
Some time ago it was
England
Power
.
/^
:
Associa¬
above,
be offset
ous
of this might
some
by scattered miscellane¬
assets not included in our esti¬
(if
any)
with
New
Exchange
Box R
firm.
1, Com¬
Financial Chronicle,
Stock Excb. Rules On
"When Issued" Order
A notice to members of the New
York Stock Exchange was issued
as follows on June 23
by Edward
C. Gray, Director of the Depart¬
might
from
be
the
obtained
"When
from
ities
..
•
member
customers
on
when
j"
firms
orders
accept
in
secur¬
"when-issued" basis
a
or
they effect trades in such
securities
on
dealer
a
basis, it is
essential that there be
clear
a
un¬
derstanding by both parties as to
the particular plan under which
the
securities
If any
are
to be issued.
change is made in the plan
under which the
securities are,to
be issued, all contracts made after
the
of such
change must
clearly refer to the changed plan',
date
that
so
if
it
is
determined
the earlier contracts
both
parties
tracts
of
status
tell which
can
is
the
Until
reached
offset
they
con¬
de¬
a
to
the
made
be¬
as
contracts
the change,
fore
that
cancelled
are
cancelled.
are
termination
not to
are
"when-issued"
against
contracts in securities to be issued
under
"It
litigation
against International Paper.
of Member Firms.
ment
be
mate, plus whatever damages or
adjustments
production.
but the SEC has
about
in
&
^
merged company,
yet indicated its views on
ferred
connec¬
25 Spruce St., New York 7, N. Y.
plan presented to the SEC the
exchange formula. The com¬
in recent years has been
paying only two-thirds of the pre¬
$30.5
mercial
Under
common
Stock
Draft exempt.
only
1943
earned.
was
Large
connection
York
In 1942 81 cents
1941.
reported,
new
a
tion. 18 years experience. Own
clientele.
pany
Total
Trader Available
Desires to make
system basis
widely,
dropping
$1.88 in 1937 to a deficit of
as
New York, N.
varied
about 40 cents
26
Executive
stock
common
Box
pre¬
the
9.1
times—.
'A-A
consolidated
12 cents in
not
River Power*:
and System Properties, Inc. cap
Earnings
a
on
the
on
h t
g
Trinity Station,
Public
Island
i
r
Address 5-C,
^yV;v%V:' -V\';
share for share;
5.7
Properties, Inc.——
Rhode
of
Service.
the
$10.8
New
""Assn." 'at '6
Advances
Power,
iVz
at
common
821.780
holders
was
-v.
plan
a
Excellent
.
,
Post Office
the
SEC, all five companies would be
merged, in order to simplify the
system structure and conform to
the Utility Act. Objections to the
plan have been raised by repre¬
sentatives of the preferred stock¬
companies,
follows:
Under
V;
man.
con¬
Hydro.
However,
last
year the stock advanced from 1 to
5% and this year's range has been
3-7 y2. New England Power is it¬
self a holding company and it has
four
affiliated
or
sub-holding
counsel to
*
wanted.
opportunity for
5/s-1V2 and it then seemed
eral Court took over
specializ¬
ing in Real Estate Secur¬
connection with the sale by Papers
The Boren Bill
CG 1279
,
DIgby 4-8500; NY 1-633
:TRADER
England holding
formerly controlled by International Paper (the latter's
wiped out three years ago when the company's Class B
company,
ILLINOIS
3.
interest
J
Utility Securities
International Hydro-Electric System is a New
CHICAGO
"
'
Ills.
3,
0933
International Hydro-Electric
;
LA
Street
E X C HAN GE
Public
SOUTH
;
Exchange
LaSalle
Chicago
State
ESTABLISHED 1879
STOCK
"3 05
York Stock
South
N. Y. Office:
'CHICAGO
(Del.)
Pref.
7%
Bear, Stearns <r Co.
Members New
Announces its admission to
Light Com.
Bought—Sold—Quoted
FORMERLY
RYAN-NICIIOLS
Power &
No. States Power
the
is
firmations
well
as
tracts
plan
as
sent
the
changed.
that
essential
to
the
con¬
customers,
"when-issued"
as
con¬
themselves, clearly specify
the
Covered Wagon Co. >
;
($1.50 Cum. Conv. Class A Pfd.)
Eifingon-Schild Co. Inc.
British Type
We
We
are
Investors, Inc. A
R. Hoe & Co.,
Inc.
Common Stock
Analysis
on
request
want to. bi
Douglas Shoe Company:
Great Lakes Transit Corporation
Hydraulic Press Mfg. Co.
principals—Brokers may trade
for our account.
Ohio Match Co.
particular plan under which
the sub-r»
ject of the contract, are to be is¬
sued."
;
the securities, which are
.
.
Stock
AIGELTINGER & CO.
76 William Street,
New
York 6,
N. Y.
Telephone WHitehall 4-7544
New York
BOwling Green 9-3530
Gilbert j.; Postley & Co.
29
BROADWAY,
NEW YORK 6, N. Y.
"
Direct
Wire
to
Chicago
of
the
Public
National
Bank and Trust Company of NeW
York offers interesting possibili¬
a
2 RECTOR STREET
..
Public National Attractive
ties
S. R. Melven & Co.
.
for
investment, according to
issued by C. E.
memorandum
Unterberg & Company; 61 Broad¬
way, New York City:
Copies'of
this memorandum outlining the
situation may be had upon
from C. E. Unterberg
request
& Co.
.
<
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE.
Number 4294
159
2695
Broker-Dealer Personnel Ilems
Delaware, Lackawanna
.
If you contemplate making additions to your personnel <
is
Chronicle)
(Special to The Financial
S
MASS.—Harry
BOSTON,
Paine,
Jackson
Webber,
,
Chronicle)
(Special to The Financial
/
"'
,.
North Water Street.
(Special to The Financial Chronicle)
was
-
Members
Mr. Young¬
Prior
forces.
thereto
BOUGHT
pflugfelder, bampton & rust
recently been in the
has
ren
;
61
he
New
Stock
York
Broadway
Exchange
We offer
New York 6
D'i
nance
&
Co.,
Law
Building, Pittsburgh, Pa.
*
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
V.
Mason Street.
become
Mr. Malkson in the
past was with Bond & Goodwin,
LOUIS, MO.—Ralph A. En-
Louisiana And
KesiSucky Legislative Bodies
Pass Resolutions. Favoring The Boreh Biil
Congress the passage of the Boren Bill,
introduced by Ambrose M. Smith in the lower branch of the Louisiana
A resolution
urging
on
Legislature, was adopted by that body and was concurred in by the
State Senate. The Boren Bill (H. R, 1502), referred to in the March
the
shares
the
of
value
fundamental
the
of
recognition
rise to
gave
Considering the gen¬
rumors.
eral-background the latter ap¬
pears as the more plausible ex¬
planation. Those close to the sit¬
uation
are
doubt that
inclined to
tangible merger progress will
any
9, 1944 issue of the "Chronicle" (page 996), was introduced in Con¬ be announced for some time to
gress by Representative Lyle H. Boren of Oklahoma, on Jan. 23, 1943. come at least,
'*:» [The
Kentucky State Senate^
!? Regardless of the cause of the
Whereas, there has been intro¬ recent < pronounced
unanimously approved a similar
market
duced
into
resolution at a special session on
Congress and is now
strength, which incidentally was
in
the
hands
of
Committee
a
Bill
June 14, and a copy of the resolu¬
not communicated to the bonds
tion has been sent to all members by Congressman L. H. Boren of
although they would obviously be
Oklahoma
which
would
amend
of
the
Congressional Kentucky
major beneficiaries of any devel¬
the
Securities
and
Exchange
Act
delegation and to personnel of the
opments such as those rumored,
Interstate Commerce Commission.] of 1934 and specifically exempt most rail men are in accord with
It
municipal bonds from the juris¬
dealings
diction of the Securities
specifically aims to remove
in state and municipal
securities from the possibility of
the
Act
the
section
Legislature of the State of
Louisiana, the Senate of the Leg¬
islature of the State of Louisiana,
concurring, that the Legislature
of
Louisiana
does
en¬
hereby
dorse said Borenf Bill;
R. 1502,
and urgently redommends to the
Representatives and Senators, in
Congress that they employ their
every effort toward effecting its
early passage through Congress.
Be It Further Resolved, that of¬
ficial copies of this resolution be
forwarded by the Clerk of the
House of Representatives to each
which
SEC the power, under
to define, by rules
and regulations, "such devices or
contrivances as are manipulative,
deceptive and otherwise fraudu¬
Section 15 .(c)
lent."'
resolution
The
adopted by the
Legislature
is
as
the
diate
lows:
Whereas, there has appeared re¬
cently indications on the part of
the Securities and Exchange Com¬
Senator and Representative of the
sidered
Act
and
of
to
Louisiana
the
States.
belief that
such surveillance by the Securi¬
ties
was
and
it
is
the
referred to; and
have prepared an attractive book¬
Act
/
Whereas, it is necessary for the
proper
ment
expansion and improve¬
states, cities and other
of
political subdivisions that bonds is-,
sued by them should encounter
the
least amount of difficulty and de¬
lay in their issuance; and
v
■
J
feel that the issu¬
ance and sale of bonds by states,
cities and other political subdivD
sions is a right inherent in the
Whereas,
let
containing
cles
in the series they have beer
first
arti¬
to Mark
Merit, in care of Schen¬
ley
Distillers
Corporation,
350
Fifth Avenue, New York 1, N. Y
further ex¬
Coca-Cola
offers
interesting situation according to
circular being distributed by Hoit,
Rose & Troster, 74 Trinity Place,
New York City.
Copies of "this
circular may ' be had
from the
firm upon request; V"
yk/k ;,/
harassing regulations of any fed¬
•
Erie
,
prior
the
their
debt
much
as
as
20% and they are Illinois Central
and
Southern
Pacific.
For the
addition
In
investment
to
fundamental
its
appeal the stock obvi¬
York Stock Exchange and other
leading Security and Commodity Exchs.
120
Broadway, New York 5, N. Y.
So.
231
LaSalle
most
debt
part the Nickel Plate
SEABOARD AIR LINE
RAILWAY COMPANY
who
witnessed
have
of
earnings
gregate
Specializing in
preferred stock¬
of the
expense
holders
more
ag¬
than
D
Underlying Mortgage
$100 a share in recent years with¬
out any dividend return.
from
Aside
financial
the
other
there are
siderations justifying
provement
most
thing
it
efficient
of
one
a
towards
attitude
is
"
;/-
/
,
im¬
con¬
construc¬
stock.
Van Tuyl & Abbe
■I 72 WALL STREET
the
NEW
of the
country's
one
the
and
,
Leased Line Issues
YORK
5
railroads, exclusive of the coalers.
This high rate of efficiency, which
has been further improved in the
railroad traffic.
and
the second place,
In
BALTIMORE & OHIO
l!i». I960
Special analytical letter
on
request
the road's long^
term traffic trends have been not¬
merger
about the most
the traditionally
By the very
nature of things—heavy density,
148 State St., Boston 9, Mass.
long haul, etc.—the road is rela¬
Tel. CAP. 04^5
:
:
Teletype BS 25!)
tively less vulnerable than other
N. Y. Telephone HAnover 2-7914
roads to competitive inroads. This
is also a basic factor, tending to
give strength to the belief that the Case For N. Y. Bank Stocks
preferred stockholders can look T Laird, Bissell
& Meeds,
120
forward rover the long term to
Broadway, New York City, mem-,
consistent adequate earning power. bers of the New York Stock Ex¬
In the long run the long-term fa¬
change, have issued a circular en¬
vorable aspects, together with the
titled "The Case for New York
large dividend accruals should be
given even greater market recog¬ Bank Stocks" giving their rea-'
under
nition.
ously gets a considerable specula¬
tive boost from the dividend ar¬
As of
dend
July 1,1944 the divi¬
will
;; arrears
amount
•
to
which alone are
practically all
recent market price.
Nat¬
$78.00
share,
a
sufficient to
cover
and the high" earn¬
years,
ing power of the railroad proper¬
the preferred stockholders
going to hold out for very lib¬
eral
treatment
when,
and
if,
ties,
are
negotiations actually get
There is little ques¬
but that Chesapeake & Ohio
missed any change it might
tion
has
way.
had'
have
once
properties
prices.
Nickel
in
acquire
to
at
merger
financial
a
Plate has
the
bargain
ably favorable
second grade credits.
somewhat
for favoring this group.
sons
pies
of
may
In Dresser & Escher
Meeds upon
mitted
been
group
excess
H.
to
Escher
has
been
profits taxes. Nevertheless,
beginning .of 1941 it has
SEABOARD 4s/50
request.
,/
ad¬
the firm
Boston &
as
of the trading and FHA
Albany R. R.
Mortgage departments.
We maintain active trading
Co¬
circular
general partnership in
associated with
manager"
interesting
be had from Laird, Bissell
to become subject to heavy
since the
this
James Escher Partner
standpoint
been
—
favorable among
hampered in relation, to other of Dresser & Escher, 111 Broadway,
the former marginal rails in that New York
City.. Mr. Escher has
it. was one of the first of the
5th WAR LOAN
BOUGHT—SOLD—QUOTED
markets in::
:
•
Buy More Than Before
St., Chicago 4, 111.
reduction has been at the financial
business
years.
New
major marginal carriers have
reduced
last year through the purchase of
period. Un point of basic
heavy motive power, strengthen¬
earning power under normal busi¬
ness
conditions
this
preferred ing of bridges, and installation of
C. T. C., augus well for main¬
stock appears as a thoroughly
tenance, of high earning, power in
sound
issue
even
though divi¬
the
post-war
years
of • normal
dends have not been paid in many
From
an
Lake
stock, the results &re still im¬
pressive. This is the most drastic
reduction
accomplished by any
similar carrier. Only two other of
James
Attractive Situation
Panama
states, cities and other .political
subdivisions; /of, the
states,; / and
should not be subjected to the,
/' v;
the
running in the "Financial Chron¬
icle." Copies of this booklet may
be had upon request by writing
we
eral, agency;, and
for fa
maintained
is
&
lien
tended
recent
Schenley Distillers Corporation
Commission
intended under
not
Available On Request
our
Exchange
re¬
urally, with the vast improvement
in the company's debt structure in
1934; and
Whereas,
position
strong
a
gardless of whether or not the
present boom in railroad business
of the
Exchange
of
State
to
the
and
in
Granting that in part
due to sale of its holdings
was
MEMBERS
in its non-equip¬
than 26%
Wheeling
For
of the United
States
jurisdiction
of
true of Nicket Plate which is con¬
Securities
their
this
tive
issuing and sale of municipal
bonds under the provisions of the
United
the
under
.
more
ment debt.
This is particularly
rears.
assume
term prospects of
and long
the two roads.
in Congress
Speaker of the House
of Representatives and the Presi¬
dent of the Senate of the Congress
of
mission
interme¬
the basis of the
on
,
fol¬
been able to effect a reduction of
opinion that it is" fully justi¬
fied
the
gives the
Louisiana
and Ex¬
change Commission;
Therefore, Be It Resolved by
the House of Representatives of
action by the Securi¬
ties and Exchange
Commission,
under Section 15, (c)
(1) of the
Securities Exchange Act of 1934.
The
bill j;would also
eliminate
regulatory
from
At 103 & Interest
particularly bold relief. As usual the awaken¬
buying wave in motion or whether
orthodox buying based merely on
•
and Nickel Plate preferred
of Pere Marquette
stocks has stood out in
ing of speculative enthusiasm was accompanied by renewal of the
dicott and Henry E. Schemmer are rumors of possible near term action on the much-discussed merger
now with Slayton and Company, ;with Chesapeake & Ohio.
It is difficult to determine whether the
Inc., Ill North Fourth Street. ;; V rumors of merger progress set the<^
ST.
connected
with Loewi & Company, 225 East
has
Malkson
Corporation Ltd.
Coll. S. F. 5s, May, 1953
general lackadaisical markets of the past week* or so the
In the
spectacular action
KMILWAUKEE, WIS.—Wilbur
$60,000
Railroad Securities
If
;
Co., 807 Marquette Ave.
:
;
(Special to The Financial Chronicle)
MINNEAPOLIS, MINNI-r-C. W.
Phillips is with J. W. Goldsbury &
Fi¬
and
QUOTED
—
with Charles W. Brew.
COLUMBUS, OHIO—Robert A.
Wasson
Issued)
SOLD
subject
/.
Bell Teletype—NY 1-310
Telephone—DIgby 4-4933
—
Canada North. Pcwer
Kttnz has been added to the staff
of
Refunding 5s, 1973
Income 5s, 1993
(When
MILWAUKEE, WIS.—Ralph L.
has become affiliated
with
Adolph G. Thorsen,; 735
armed
V
ICTORY
(Special to The Financial Chronicle)
V
Youngren
..
BOSTON, MASS.—John E. Costeilo is with W. F. Rutter, Inc., 19
Congress Street.
1st &
&
Curtis, 24 Federal Street.
V,
& Western Division
Madison, Wis.
Middendorf has become associated
with
New York, Lackawanna
WAR LOAN
th
Inc., in Portland, Maine, and was
with B. E. Buckman & Co. of
.
& Western Railroad
War Bonds
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
V
'
.
Buy MORE
ASI0N
-
Circularrequest
on
SEABOARD 6s/45
/;//■:/;;•
SEABOARD 4s/59
SEABOARD-ALL FLORIDA 6s/35
Mclaughlin, baird & reuss
Members New York Stock Exchange
J;'
•
ONE
TEL.
WALL STREET
HANOVER 2-1355
NEW
"
/
,
D.
■
YORK 5
TELETYPE NY 1-1310
*/•
1. h. rothchild & co.
.
specialists in rails
52 Wall Street
;
-
;
HAnover
2-9072
n. y. c.
5
Tele. NY 1-1293
Adams & Peck
63 Wall
Street, New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
THE COMMERCIAL & FINANCIAL CHRONICLE
2695
SPECIALISTS
Ramsdell Lasher With
Tomorrow's Markets
Hopkins, Harbach Go.
Walter Whyte
in
TRADING
/
LOS
Real Estate Securities
REAL ESTATE
1929
' ft
for
'
Boll Teletype
*
Seligman, Lubetkin & Co.
•'
'
'
■
Members New
41
NY 1-953
HAnover 2-2100
Real Estate Securities
-
■
Good News For Holders Of Real Estate Securities
AND
New Tax Rate Of $2.74 Is 15 Points Below Current Level
TUDOR CITY UNITS
Lowest In Seven Years
Considerable
C. H. TIPTON
SECURITIES
CORP.
Members N. Y. Security
Dealers Aes'n
BROADWAY
*
NEW YORK 6, N. Y.
WOrth
Security Dealers Association
Broad Street, New York 4
Buying
FRED F. FRENCH Stocks
ill
York
By JOHN WEST
ALL
2-0510
relief has
been given
of real estate and
holders of real estate securities by the New York City Council
adopting a basic tax rate 15 points lower than the 1943-1944 rate
for the 1944-1945 period.
Obviously it results in a reduction of ex¬
penses for the property owner and should correspondingly increase
net income which gives a better leeway of earnings for0the pro¬
tection of those holding mortgages
f
or mortgage bonds secured by the'
properties.
This tax relief coupled with the
fact that earnings of New York
City properties have been on the
uptrend for some time due to
higher occupancy ratios should
The Indiana Limestone Corpo¬
have the effect of increasing se¬
owners
Formation Of Indiana
Limestone Bondholders
Savoy Plaza, Inc.
2d Mtge. 3%
With
-
6% Income Bonds
Without Stock
or
AMOTT, BAKER & CO.
Incorporated
Broadway, New York 7, N. Y.
Telephone BArclay 7-2360
Teletype NY 1-588
First Securities Go,
Chicago S. E, Member
First Secur¬
Chicago, for¬
Ryan-Nichols & Co., an¬
CHICAGO, ILL.
ities
Company
merly
Chicago
the
ship in
change.
At the
Ex¬
Stock
address, 105 South
Street, and with the
same
Salle
personnel,
same
continues
as
the
company
distributors and
investment
of
derwriters
un¬
secur¬
ities with complete trading facilties.
Officers
are
Leston
Nay.
B,
President; Clifton P. Walker, Jr..
Executive
Vice - President
in
charge of
sales and
research;
Harry J. Nelson, Vice-President;
Fred O. Fleischer, Vice-President;
Donald
B.
Stephens, Secretary,
Treasurer and manager of trading
department, and George W. Smith,
Assistant Secretarry.
Callahan Quits N. Y.
Curb
Joining Nat; Elks War Com.
P.
John
director
Callahan,
of
public relations for the New York
Curb Exchange since July 1, 1942,
has resigned that post to become
Director of the
Relations
Public
National
War
Elks
Mr. Callahan
Commission.
joined the securities
department of the Curb Exchange
1935
in
and
transferred
to
the
public relations department early
in 1939.
S. Doyle, who\ joined
department in April] of this
year, will be in charge of1;he pub¬
lic relations of the Exchange.
He
was
publicity and
advertising
Edward
the
manager
from
tp.. 1941
1929
of
Doyle & Black, custom shirt mak¬
ers
in New York, and wrote for
Florida
papers
before that time.
From 1927 to 1928 he
tax
was
with the
department of the Chase Na¬
tional
Bank, and
curities
new
tax rate is
particularly
was
department
in the
of
the
Iselin & Co. prior to 1927.
se¬
A.
Committee,
M. Matalene, Chairman;
members
years
the
of
him.
the
with the idea of speeding up the
savings
annually.
to
amount
$189,800
,
•
The committee has been formed
reorganization
>
.
-■
•...
and
Angeles Stock Exchange.
Mr. Lasher brings to the firm
25 years of continuous experience
in brokerage, investment counsel
and investment banking, He has
just returned from six months'
retaining the
creditor status of the bondholder.
residence
in
he
upon
Mexico
City, where
invitation of the
largest brokerage firm in that
neighboring capital to take charge
of their foreign department and to
supervise the reorganization and
expansion of their business in
went
American securities.
Wins
Gup
CLEVELAND, OHIO—Herbert
Covington, resident manager
for Harriman Ripley & Co., Inc.,
won permanent possession of the
Cleveland Bond Club Cup with a
score of 77 over the Country Club
course.
Mr. Covington had previ¬
ously won two legs of the cup.
H.
in
advocates,
§cts as corre¬
member of the New
a
York
Exchange and holds
on
the - New York
Stock
membership
Burge, of Ball, Burge &
President of the Club, an¬
nounced that Walter B. Carleton,
of Fahey, Clark & Co., and J. L.
Quigley, of Quigley & Co., had
been elected governors for threeyear terms, succeeding A. H. Rich¬
ards, of Field, Richards & Co., and
For
the
American
tion with which he has made
ities.
the
.
present
Emile
A.
Cleveland
Le
GroSj
of 0the
First
Corporation,
Herman-.Sheedy, of McDonald
& Co., chairman of the Area No. 1
economics
potential¬
and
He has been
member of
a
Mexico
City Stock & Bond
Exchange during this period and
is the only such member in the
U.
S, A.
Memberships of the
Mexican exchange are now lim¬
;n the Fifth War Bond drive, and
Vice-President of the Bond Club,
presented $25 War Bonds to the
winners of the three door prizes.
that,
with
loaded
didn't faze
Timing
of
amendments
proposed
They
the
ideal.
was
at a time when the press
full of invasion news, so
came
was
little space was given
didoes
of
Congress.
to the
That
of the measures will
ited to citizens of Mexico.
help industrial income is
Mr. Lasher's intensive studies
But alongside of it
of
Latin
American
economics granted.
is the fact that the passage of
were
begun/ years before much
interest in the subject prevailed in such laws sets in motion a
spi¬
financial
circles
of
the
United
many
ral that won't do business
or
States.
During the five-year pe¬
riod, 1933 through 1937, he pre¬
pared comprehensive surveys of
Mexico at his own expense. These
were
so
outstanding that they
the
nation
long
run.
good in the
any
.
Be that as it may, the mar¬
throughout this ket isn't concerned with the
country and from high officials of dim future. Its business is to
evinced much commendation from
financial
leaders
both
American
the
Mr.
and
Mexican
act
events
on
of
mechanical
nell
immediate,
This it did. It
a bat out of hell
and established new highs all
along the line.
graduate in importance.
engineering from Cor¬ shot up like
Lasher
is
a
University "and has lived
in
California since 1915.
In the last two
bonds
1964,
to
Man's Bookshelf
Businessman's
Stake
in Amer¬
York Cotton Exchange for 1943—
In lieu of the accrued interest
existent bonds, the
90% of
the common stock and the pres¬
ent
stockholders
10% of the
Washington, D. C.—
stock.
-
;
Mgr. For Dow, Jones
Whether
these
Book
New York Cotton
incidences
point to a change in trend, or
simply a halt in the market's
upward move, is too early to
say. But it isn't too early to
begin looking around at some
of
the
company the market
acquired in the last week.
ft
Cotton Year
X
X
of the New
Exchange, New
York'City.
What Your Bank Can Do About
Wage and Salary StabilizationNew York State Bankers Associa¬
tion, 33 Liberty Street, New York
City—paper—$1.00.
A. D. Smith Midwest
lessened but evidences of poor
buying and good selling have
appeared on the tape.
has
paper.
bondholders to receive
.
days this de¬
stratosphere
has lessened. Not only has it
sire to reach the
bonds.
common
fact
The
was
ex¬
United States,
now
action.
action
inflation
tensive studies of Western Hemi¬
sphere
The
D-Day; the second,
and perhaps marketwise, the
more important, was
Congres¬
potentials
past
16 years, Mr.
the lawmakers,
specialized in Latin
'J : ,;ftsecurities, in connec¬ [■•'i
ft
proximately $236,000, now held
by the trustee, to be paid into
sinking fund and available for a
period of one year to acquire
the
from two factors."
was
has
The Business
secured by a first mortgage on
the fixed assets of the company,
on
first
sional
Lasher
.,v
For the past two weeks
practically everything has
gone up. The leaders acting;
like leaders for once, didn't
hurt the procession either.
The impetus for the breakout
this
,
John
move
By WALTER WHYTE
exchanges, with all of which Mr.
Lasher has had long experience.
together with the entire stock ican-Soviet Friendship, The—Harof the wholly-owned subsidiary, land H. Allen—National Council
Ilco Ordnance Corp.
of
American-Soviet
Friendship,
The bonds to bear interest at Inc., 232 Madison Ave., New York
5%, payable out of 50% of the 16,
N.
Y. — paper—100
(lower
A net annual earnings and cumu¬ prices in quantity).
Winners
of
the
blind
bogey li lative up to 10%.
tournament were T. C. Wellsted,
25% of the net earnings to be
Controlling Federal Expendi¬
Ball, Burge & Co., and R. B. Hays,
used for a sinking fund to ac¬ tures—Finance Department,
Federal Reserve Bank, a guest.
quire bonds.
The sum of ap¬ Chamber of Commerce of the
Co.,
new
possibilities.
Curb and various other American
The extension of the maturity
the
lated stocks show
substance, the fol¬
lowing plan:
of
buying dwindles as bet¬
selling takes Over. Steels
now feeling top territory. Iso¬
ter
came
The Mexican firm
spondent for
It is reported that the committee
H. H. Covington
Bond Club Golf
Good
governments.
outstanding and applying the new
tax rate to the assessed values,
its admission to member¬
nounces
La
—
of
Protective
Bondholders'
ration
consisting of Eugene
Lester S.
favorable to holders of securities Miller, and Donald W. Hayden,
in such liquidating trusts as New has been formed for the protec¬
York Title & Mortgage Co. Series tion of the general mortgage 6%
C-2
as
the
Trustees hold and income bonds (now first mortgage
■' 'vv
operate various properties assessed bonds).
The counsel consists of Ray¬
for approximately $20,000,000 on
which the saving would be about mond L. Wise, New York City,
$30,000 a year all accruing to the and Herbert E. Wilson, Indianapo¬
income account of the trust and lis, Ind.
William A. Cluff, 111 Broadway,
distributable to certificate hold¬
New York City, is the Secretary
ers.
^
^
,,
' ,
[ Picking 23 properties at random of the Committee, and all corre¬
on which mortgage securities are
spondence may be addressed to
The
5% Income Debentures
Bell System
Protective Committee
curity values considerably above
present discounted prices.
Roosevelt Hotel, Inc.
ISO
many
Says-—
•
Incorporated
Exchange
Dlgby 4-4950
We Are Interested In
become
Los
Afamb«r< New York Stock Exchange
Members New York Curb
has
Hopkins, Harbach
Co., brokers in stocks and bonds,
Building, 609 So. Grand Ave., and
SHASKAN & CO.
40 EXCHANGE Pl).,N.Y.
Lasher
—
located in the Edwards & Wildey
SECURITIES
ft
S.
CALIF,
associated with
&
Since
ft
ANGELES,
Ramsdell
MARKETS IN
Thursday, June 29, 1944
Geography of World Air Trans¬
Stock after stock has
now
reached old
supply levels that
were strong enough to stop
advances in the past. In the
forefront
lehem
are
the steels. Beth-,
up against the'
barrier at 63 to 65. Big Steel
starts
comes
running against stock
from 59
port, The—J. Parker Van Zandt— are
on.
The smaller
about the
same
steels;
distance
Brookings Institution, 722 Jackson
James F. Lincoln, head of the
away from their supply areas.
CHICAGO, ILL.—Dow, Jones & Place, Washington 7, D. C.—cloth
Lincoln Electric Co., spoke on
On the downside, the group
—$1.00.
'Incentive vs. Government Con¬ Co.-Illinois Telegraph News Co.,
shows critical levels which
Oil and The Americas—Joseph
trol," following dinner, which was, Inc., announces the appointment
Pogue—The Chase National have to hold if the recent
attended by about 150 members of Alfred D. Smith as Midwestern E.
Bank, Pine Street corner Nassau, strength isn't to be dissipated
and guests.
Manager. Mr. Smith, who was in New York City—paper.
by a severe reaction. In Beth¬
charge of the Chicago office of the
lehem the figure is 59; in
Mallory Interesting
National
Quotation Bureau for
Interesting Situation
U. S. Steel it is 52.
P. R. Mallory & Co., Inc., offers
many years, will assume direction
Common stock ef Federal Water
an interesting situation, according
ft
x
ft
to an analysis prepared by Steiner, of news ticker sales operations in & Gas offers an attractive situa¬
the
Rouse & Co., 25 Broad St., New
Among the secondary
Chicago, Detroit, St. Louis and tion, according to a memorandum
issued by Boenning & Co., 1606 stocks the
York City, members of the New Cleveland
following prices are
territory. He will make
Walnut Street, Philadelphia, Pa.
York Stock Exchange. Copies of
his headquarters at the Chicago
important as support points:
Copies of this interesting memo¬
this analysis may be had from
office
in
the
Board of
Trade randum may be had from Boen¬
Baldwin—18; Bendix—37;
Steiner, Rouse & Co. upon re¬
ning & Co. upon request.
(Continued on page 2709)
Building.
quest.
THE- COMMERCIAL & FINANCIAL CHRONICLE
Volume 159 -Number 4294
2697
is owned by the rest of the world,
is to overlook realities completely.
ADVERTISEMENT
OUR
It is,, therefore, not likely that the
decline,in the
Problems Discussed By Madden
Reserve
liabilities,
note
the bulletin stated.
ratio
reserve
a
of not less than 40% in
would merely cause an increase in
Federal
reserve
tion
banks
Reserve
and
minimum
a
of 35%
in
gold certificates or other lawful
against their deposits. The
Reserve banks are holding their
reserves almost
entirely in gold
certificates, and only a relatively
small amount in Treasury cur¬
rency.
No Federal Reserve notes
money
Federal Reserve bank notes are
or
in
required by law to maintain
gold certificates against Federal
Reserve notes in actual circula¬
_
have any effect on the volume
or
circulation, on
gold, or on demand for credit on
the part of industry and trade. It
■'The
are
1920, when the ratio reached
of
the bulletin stated:
included
in
the
currency
interest
thus raise the
and
rates
cost of borrowing by the Govern¬
ment. "
//'
v
"Those who advocate the adop¬
tion of
credit restriction - policy
a
similar to that of 1920 seem to be
Unable
or
unwilling to face the
reality that the country is
in the midst of a war which must
stark
be
regardless of cost in life
and treasure and the declining re¬
won
On the- other hand,
ratio.
Thus,
of a total reserve of $19,361,875,000 on May 31, 1944, gold certifi¬
serve
cates, including those in the re¬
demption fund with the Treasurer
proaching budgetary equilibrium.
The deficit of $1,075,177,412 for
the fiscal year ended June 30,
1919, had been cut down to $608,099,354 in the year ended June 30,
1920, and converted into a surplus
of $772,940,13i in the year of July
1, 1920, to' June 30, 1921,
; :
of
the
reserves.
United States for the
demption
of :i Federal
re¬
Reserve
notes, amounted to $19,096,799,000
and the balance of only $265,076,000
'other cash'; i.e., Treasury
was
currency,
"The"
\
after
are
1939, to
Dec.
and decreased, to 55.8%
war.
the
decreases. there
ratio
various
measures
posal of the monetary authorities
on
June
either to increase the ratio
tization of the idle
and the gold homings of the Fed¬
eral Reserve banks to decline, the
ratio will continue to decrease.
the
This development has caused con¬
siderable, discussion, for it raised
the question as to what effect it
may have on the credit policies
the Reserve authorities
if the
the
statutory
minimum of 40%. It was pointed
out that when in May, 1920, the
of the Federal Re¬
ratio
reserve
banks reached 42%,
serve
restrictive
credit
adopted
measures were
by the Reserve authorities, accom¬
panied by a sharp, increase in the
discount rate, which was followed
by a material decline in prices of
to
gold held by
Exchange" Stabilization Fund
in the
and
General
Fund
the
of
Treasury. (2) Monetization of the
silver seigniorage profit through
the printing Of additional silver
certificates, (3) The issue of Fed¬
eral Reserve. Bank motes requir¬
ing no gold cover instead of Fed¬
eral Reserve notes, (4) Lowering
the reserve requirements, Which
Would create
of
substantial amount
a
balances, most
of which would be used fey the
excess
reserve
member banks to purchase Treas¬
ury bills from the Federal Reserve
banks. This would reduce the de¬
posits
the
of
Federal
Reserve
banks and thus increase the ratio.
Government bonds.
"The
"The conditions which prompted
actions of the Reserve aur
the
thorities in 1920
or
prevent it from going down. Some
of the measures are; (1) Mone-
in circulation continues to mount
should reach
at the dis¬
1941,
14, 1944, It is quite certain that
long as the volume of currency
ratio
at. peace
ahd 1 ap¬
3,
on
so
of
was
victorious
a
"As
from 8-3.9% at the end of August,
91.1%
country
Congress can, of course,
legislation relieving the Fed¬
pass
eral Reserve banks from the obli¬
different from those that prevail
gation of maintaining a fixed ra¬
tio of gold against their notes in
at
circulation.
were
continue
will
present and
materially
to
the end of the war;
In 1920 spec¬
ulation in the United States was
rampant and prices of commodi¬
ties rose sharply.
The Bureau of
Order
from
the
ing
reserve
1920.
The
counted
by
of
volume
the
bills
member
dis¬
banks
with the Reserve banks was very
high and amounted on May 14,
1920, to $2,551,290,000.
Hence it
was obvious at that time that a
tightening of bank credit and a
material increase in interest rates
could
the
forces.
ures
effective
be
speculative
The
taken
in
reason
breaking
inflationary
and
for the meas¬
fey the Reserve author¬
ities, therefore, was primarily to
curb the excessive use of bank
credit
for
which
contributed
speculative
to
purposes
the
sharp
increase in prices of commodities.
"Money market conditions
at
are
present entirely different from
which. prevailed in 1920.
those
The
decline
in
the ratio
is
due
primarily to the increase in the
volume of currency in circulation
and
to
a
moderate
reduction
stock.
restrictive measures sUch;
the monetary gold
taken by
in
Credit
as
those
the Federal Reserve au¬
1920 could have
thorities
in
effect
the demand for currency
on
at home or the
no
conversion of dol¬
lar balances into gold by foreign
governments.
Furthermore, the volume of bor¬
central
banks
or
rowing of the member banks with
the Reserve banks is. exceedingly
small,
while the amount of de¬
posits at the disposal of industry
and trade is greater than needed
for business purposes. Under these
circumstances, therefore, to adopt
the same measures as were taken
measure
a
was
Canada when
of May 1,
1940, released the: Bank of Canada
an
sale
201
Such
taken
actually
Labor Statistics index of whole¬
prices (1913=100) rose from
in March, 1919, to 272 in May,
the
"Since
in
Council
in
obligation of maintain¬
the required minimum gold
against its outstanding
notes and deposit liabilities.
On
the
same
the
date
Bank sold
its
ratio
reserve
This is number thirty-seven of a series.
Under
Governors
of
Reserve System to vary re¬
serve requirements of the individ¬
ual Reserve banks between 20 and
40%.
Since a material improve¬
tion of
In
the
the
proposed
the Federal Re¬
serve Act could be made to expire
one"or two years after cessation
war,
,
f the
to
of hostilities."
'
analyzing the capital fundsdeposit ratio—the bulletin re¬
capital
lacks
resources
of
$1 of
to $10 of deposits
scientific basis, as the test
a
of adequacy of capital funds can¬
not be reduced to a mathematical
be
to
correlated
the
type of
assets in general and to risk
sets in
its
are:
(1)
cash
on
bank
Non-earning assets, i.e;,
hand
and
due
from
the
Federal Reserve Bank and other
banks.-
(2) Treasury bills and
tificates
have
a
of
cer¬
Bills
indebtedness.
maturity of about 90 days
and' hence their price can hardly
be affected by a change in interest
rates.
While
debtedness
certificates
payable
are
of
Next in
in
one
thermore, since... the certificates
held bv individual baulks have
.<
spaced maturities resulting in an
average maturity of about six to
eight months, it may be stated
that there is
Treasury
no
bills
risk attached
or
is
certificates
vice
be
considered
for
deeply, and refused to pay it, and
the tax collector's job must have
been a very uncomfortable and
dangerous one. In a number of in¬
$85,000,000
.
Co.
Close
behind
stances. he was tarred and feath¬
comes
ered, and
considered !
gold exercises
the
a
considerable in¬
the
on-
credit policies of
banks.
At present,
central
tance is
no
country
no
on
of impor¬
the gold standard and
excise thx.
potentials
as
.prospect for
;
a
$30,000,000 operation.
is freely redeemable
In addition the trade of
currency
ture
a
pects for
also
new
of refunding
of money
a
as
bright
business in.the way
we
of four companies
credited with
possibilities, which,
materialize, vvould produce
something around $185,000,000. in
[Out In front in the rail divi¬
sion is Baltimore & Ohio, which
to
consider
tion
.
plans
for providing for $71,000,000 of
notes held by the Reconstruc¬
Finance Corp;, perhaps in
This road
the next few months.
t
500,000 of the same issue, held
by RFC, will be provided for
with. the aforementioned obli¬
gation.
into gold.
the world
is
subject to
mental regulations
govern¬
and based to
large extent on special inter¬
governmental arrangements. Un¬
der present conditions gold is used
a
exclusively to
pay
for the
excess
of
imports, over exports and for
hoarding in some eastern coun¬
tries.
Hence, to consider the de¬
cline of the ratio
banks
in
a
more
gold,
as
a
country
than
of the Reserve
serious
21
development
which still holds
billion
an amount far
dollars
of
greater than
1.14)
" Directors may adopt a too
conservative lending and invest¬
bank is less than 1.10
or
where the
:•
war.
of the
.
no
,
_'/.•mob
violence,
or
rioting or insurrection in our coun¬
try today, as taxes go higher and
higher. But there is danger lurking
around the corner, nevertheless.
When taxes on whiskey go up with¬
the
end, it gives the bootlegger
inspiration to get feack in busi¬
ness
,
\
and he pays no taxes.
.
Today the Alcoholic Beverage In¬
dustry, through the sale of its
products, is America's number one
tax collectot. Noother industry con¬
tributes so much—while yet de¬
voting its total today's effort to
war
and Cincinnati Union Terminal is
credited
ward
a
with
plans
looking
to¬
$24,000,000 refinancing.
work,
"•
v
1
;
mark merit
of SCHENLEY DISTILLERS CORP.
FREE-A booklet containing reprints
of earlier articles in this series will be
sent you on request. Send a post-card to
me care of Schenley Distillers
Corp..
350 Fifth Avenue, New York 1, N. Y.
New St. Paul Issues Traded
A
.
small
been in
trading
has
market
of development in
course
the "when-issued securities of the
Chicago, Milwaukee, St. Paul &
Pacific's/
issues
new
last
since
Friday, and shows signs of broad¬
ening out,: according to dealers.
The markets
are
not especially
wide involving [only about half
dozen houses at the moment,
a
hut
they are reported substan¬
tial in point of interest.
The
trade
anticipates
real
broadening out toward the end of
a
the month as time approaches for
the court, which now has the mat¬
ter under advisement, to ; hand
down its decision on the plan.
Industrial
An
In
List
Filing with the Securities and
Exchange Commission recently of
av registration statement covering
prospective issuance of $10,000,000
Quaker Oats Co. 20-year 2%%
.
debentures,
marked the first in¬
dustrial undertaking
quence
.
ing policy and refuse to undertake
legitimate banking risks.
Large
depositors, unless they are fully
informed about the true meaning
of the ratio, might be inclined to
spread their deposits among too
many banking institutions.
It is,
therefore, desirable that the pur¬
pose of capital funds and the sig¬
nificance of the ratio be explained
to the public.
Where the ratio of
capital funds to risk assets of a
us
■
Kansas City Terminal Railway
is contemplating a $45,000,000 deal
while Chicago Union Station is
expected to refund $44,000,000,
Dec.
was
to remind
.
out
(
plans to redeem $28,500,000 of
notes, due Aug, 1, and held by
the public. An additional $13,-
their bank should decline to 1.20.
banks
,
serve
And there is
expected
sums
are
general picture. Inia recent .devastatrng raid on German industries^
pur. plane loss aloiie, amounted to
nearly $20,000,000
just one
incident. That gives us a rough
idea of what it costs us to win this
issues.
new
is
tion will
pros¬
^operations. Here
group
which
required in our
present emergency. One illustra¬
if they
rectors and large depositors may
become * concerned if the ratio in
commercial
No need to reiterate the vast
•,
down in the fu¬
are
books
find
period interest rates
not- be permitted to rise to
extent that would materially
insured
was
Railroads Offer Prospects
Railroads
;
all
31, 1943, the capital
funds-deposit ratio of operating
facture
of
conversion
■
Government to tax whiskey manu¬
Light 'Corp. is down inI the book
will
(On
was put down with¬
bloodshed, and the right of the
out
was established. Well, that
progress, and ever since then
whiskey has been subject to an
,
however,
insurrection. It
a
.
fluence
|
Rioting and mob-violence broke
put and President Washington
called out the militia to quell the
good possibility
for an: undertaking which could
involve up' to $33,000,000 of new
securities, while Texas Power &
of
importance so long as a country is contingencies less the amount tied
on the gold standard and the cen¬
up in bank premises and furniture
tral bank is under the obligation and fixtures) to total risk assets.
to redeem its notes in gold or sell Since a capital
funds-deposit ra¬
gold at a fixed price. Under those tio of 1.10 has been the practice
circumstances the /movement of for a number of years, many di¬
was ridden out of town
rail—and that's hard going.
on a
The Texas Electric Service Co.
s
is
practical purposes riskless assets
since during the war and the re¬
an
owned distillers resented the tax
in point of size
$35,000,000 in bonds and $16,000,000 in preferred stock,
to
gold- and foreign-exchange hold¬ depress the price of Government
ings to the -Foreign -Exchange
obligations maturing in two years.
Control Board, and no gold or for¬ Short-term
obligations of sound
eign-exchange: reserve has been political subdivisions such as mu¬
maintained since. On Sept. 5, 1939,
nicipal. and State tax warrants
the Bank of England transferred
may also be treated as riskless as¬
its gold holdings, • except a very
sets.' '
■'
small amount, to the Exchange
"In endeavoring, therefore, to
Equalization Account, and since maintain
adequate capital funds
then only fiduciary notes have
against assets subject to deprecia¬
been in circulation.
;
tion, a bank should relate its capi¬
"The ratio of gold - to demand tal funds (i.e., capital, surplus, un¬
liabilities of a central bank is of divided profits and reserves for
What is known as "The Whiskey
Rebellion.'' The small family-
•
The same may be
prime bankers' ac¬
ceptances and prime commercial
paper;
Government
securities
with a maturity of one to two
years may under present condi¬
also
line
whiskey, and made
on
bones about* it. It resulted in
no
[Toledo Edison with a prospective
$51,000,000 consisting of
about
tions
Our early Americans "abhorred'*!
this first tax
refinancing
deal which looms as a possibility
; for the New Orleans Public Ser¬
indebtedness.
said
an
in¬
year, the range of price fluctua¬
tion caused by changes in interest
rates* is obviously 'limited.
Fur¬
between
the Philadelphia Electric Co.
/
a
permitting,
prospective $130,000,000 operation
talked about for the account of
as¬
particular.
"The non-risk assets of
imposed a tax on
whiskey, and that was an inno¬
vation. Someone, somewhere, once
made the remark—"First you ab¬
hor a thing; then yoii tolerate it;
then you embrace it."
,
Topping the list in that partic¬
ular" division of the market is the
ratio.
Capital resources of a bank
are intended to act as a cushion
to absorb losses that'may be in¬
curred on earning assets.
Hence
the capital funds of a bank should
became President, a famous
inci-J
dent in American history
occurred.]
The Government
and the end of the year.
now
before in the history of
"The, traditional ratio
>
the surprising
up
.
In 1791, shortly after Washington
were
of five companies
a group
conditions
.
country.
potentials
ects which might be undertaken,
version" period the ratio of capital
funds to deposits will be lower
the
.
utility
j alone. And this takes into ao-'»
count, only the really large proj-
marked that at the end of the con¬
ever
that, then, as now, our
peopleVere articulate ; right or
wrong. But it is important that
they never were "muzzled."
j
total of upward of $329,000,000
of refinancing in contemplation
; by
In
than
of
record
! able to build
•'
/
;
public
rebellion way back in
a
seems
in prospect.
newussues
the
We had
the early years of our republic. It
field,
taken alone, those who gleaned
ment in the ratio may be expected
amendment
the
ternity would
eral
after
CORP., NEW YORK
more
stances
the Fed¬
of
SCHENLEY DISTILLERS
normal
circum¬
underwriting fra¬
appear assured of
business sufficient to keep things
moving at a satisfactory pace in
the months ahead; judging by re¬
sults of a thumb-nail recapitula¬
the best way of solving the prob¬
lem would be for Congress to
enact. legislation authorizing the
Board
there wilt appear an article which we hope
will be of interest to our fellow A mericans.
REPORT
is
bound to decrease during the war,
-
increased
ratio
reserve
v
,
in 1920 the
S
thorities.
42 %, would not improve the. ratio
r
r
In discussing the
in
NOTE—From time to time, in this space,
ratio will
^ainy way-'interfere with the
credit policies of the Reserve, au¬
(Continued from first page)
Federal
reserve
in
in
many
of
conse¬
weeks.
composition of the earning assets
There have been a few smaller
is such that a 10% reserve cannot
emissions, but these in several
instances have been provided
be
considered
as
adequate', such
direct
placement
an institution should endeavor to
for
increase its capital or change the
institutional investors.
quality and maturity of its invest¬
ments."
~
•
In
by
the
case
of
with
Quaker
Oats,
.
The post-war banking problems
are discussed in the btilletin under
however, arrangements have been
the
headings: The trend of inter¬
rates; Government competi¬
tion; capital loans to small and
lic offering of the securities
medium-sized
working
1
est
and
new
business
concerns;
banking legislation.
made, with bankers to make pub¬
will
provide the
capacity
future expansion.
which
company
with
and funds for
THE COMMERCIAL & FINANCIAL CHRONICLE
2698
The
Insurance & Bank Stocks
Bought
ANALYZED
Sold
—
—
COMPARED
-
BUTLER-HUFF & CO.
CALIFORNIA
OF
210 West 7th St., Los Angeles
WIRES
PRIVATE
New York
Chicago
-
TELETYPE
San Francisco
279
L. A. 280
-
L.
A.
cement, they will haul it
Japan, but the long
plane which would be
such an asset in bombing Tokyo
might obviously prove a corres¬
ponding liability in commercial
aviation. In short, we in the air¬
craft industry are convinced that
while the realities of flight in
1950 and beyond will greatly ex¬
ceed our present standards and
achievements, they will fall
equally short of the extravagant
predictions which have been made
by aviation enthusiasts with more
heat than light.
and
and
range super
Orders solicited.
Seattle
Bank and Insurance Stocks
t-
By E, A. VAN DEUSEN
Mid-year bank statements will soon be appearing, and
it is gen¬
erally expected that they will indicate earnings for the first half of
1944 to be nicely above those for the first half of last year.
Statistically speaking, there is every reason why this expectation
fulfilled, for the earning assets of leading New York City
average nearly 20% above their volume of a year ago.
On
should be
banks
31, 1944 the total earning^
of
fifteen
leading
New tional,
March
have
must
obvious
seems
that
$2,947,456,000.
of
increase
largest gain was
the 15 banks
The
TOTAL
of
Manhattan—
Bank
of
New
Bankers Trust
Central
253,351,000
York:
1,193,568,000
—
1,137,774,000
Hanover
&
Bk.
Chemical
Exchange
406,611,000
First
National
811,012,000
2,413,040,000
TrustTrust
Guaranty
Manufacturers Trust
National
City
public
United
775,654,000
1,059,921,000
2,792,102,000
.
496;684,000
205,003,000
National
States
L——
Average
—
~^Most
115,974,000
Trust
Total
sets
—
—
Trust—
York
New
—
$16,630,338,000
as¬
represented by an in¬
crease in holdings of United States
Government securities, which ex¬
was
,
panded from $11,688,575,000 to
$13,886,082,000. Loans and dis¬
counts, however, also showed sub¬
stantial improvement, moving up
from $3,508,342,000 to $4,418,645,On the other hand cash and
000.
cash items declined from $5,001,-
756,000 to $4,673,888,000. On March
31,1943 earning assets were 83.5%
of reported deposits and'on March
31, 1944 they were 88.0%, indi¬
cating that the banks' funds are
more
fully invested today than
they
were a year ago.*
Figures
for
reporting member
banks of the Federal Reserve Sys¬
tem in New York City also tell a
similar story.
,
:
Change
Change
$777,622,000
$110,469,000
16.6%
293,183,000
39,832,000
15.7
1,472,653,000
1,341,049,000
3,812,905,000
279,085,000
23.4
203,275,000
17.8
375,440,000
10.9
1,036,117,000
171,091,000
19.8
486,865,000
80,254,000
19.7
955,572,000
144,560,000
17.8
2,745,363,000
927,758,000
332,323,000
13.4
152,104,000
19.6
1,283,273,000
223,352,000
21.0
3,422,210,000
630,108,000
22.6
600,432,000
103,748,000
20.9
293,064,000
88,061,000
43.0
13,754,000
11.9
■
129,728,000
On March 29, 1944
they reported Government hold¬
ings of $13,366,000,000 compared
"
break-down
of
Our.circular
as
you
the
main¬
'
gives
favoring this
Members
New
York
Stock
Exchange
BROADWAY, NEW YORK 5, N. Y.
120
Telephone: BArclay 7-3500
Bell
1-1248-49
Teletype—NY
,L. A. Gibbs, Manager Trading Department)
$41,391,000,000
to
$52,012,-
25.7%.
The bank stock market has been
somewhat
tardy
recognizing
in
the
alent to
approximately 40%. Com¬
695,000,000 to $6,305,000,000; total
loans and investments expanded
i.. ——
1941—
—
——
94.0
76.2
67.7
•
-
59.2
76.5
96.6
It is of interest to note that the
low of 59.2
1932
low
of
was
even
60.3.
below
This
year
bank stocks have livened up, the
berries
C-54,
is
the
combines
all
and
proved
will
Bank Stocks
of
Established
1891
18 Clinton St., Newark 2, N. J,
MArket 3-3430
N. Y. Phone—REctor 2-4383
in
its
that air travel is often
fortable than travel
States
of
that
more
aviation,
of
many
Mr. A.E.Raymond, our Vice-Presi¬
planes will travel
dent in
means
charge of Engineering, has
publicly on various occa¬
that seats
essence
the
of EGYPT
Head
Commercial
Office
Cairo
Register
No.
FULLY PAID CAPITAL
RESERVE
FUND
.
.
LONDON
6
and 7
£3,000,000
.
.
£3,000,000
.
to
Branches
the
in
Government
the
In
Uganda
and
Office:
26, Bishopsgate,
London, E. C.
in
India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
Subscribed
undoubtedly
Capital
—£4,000,000
Capital..——£2,000,000
£2,200,000
Paid-Up
.
Reserve
The
Fund;
Bank
conducts
every
description
banking and exchange business
Not every plane will be a sleep¬
plane, however, for the simple
that you can always carry
people sitting up than lying
down, and for this reason some of
all
the SUDAN
Colony
Kenya
This
have separate staterooms for par¬
ties of two, three or four people.
will
Towns
Head
be made up
will
planes
in
principal
Bankers
into beds; berths may be let down
the wall, and some of the
luxury
Branches
of INDIA, LIMITED
in
from
AGENCY
NATIONAL BANK
in
standard
transport plane of 1950 and beyond
Cairo
I
King William Street, E. C,
EGYPT and
transport
at night-
can
'
NATIONAL BANK
com¬
sions that he believes the
probably be something like
this.
It will weigh about 150,000
pounds. It will have four super-,
engines and carry from 70-100
.
Agency arrangements with Banks
throughout the U, S. A.
pre¬
will be available
Since time is of the
On the contrary,
C.
E.
Street,
47 Berkeley Square, W. 1
*
of the secret de¬
some
use
i
,
Threadneedle
29
j
vices which aye now restricted to
wartime
and
LONDON OFFICES:
ground.
High as the. safety factor is at
present, it will be even higher in
the post-war world for the simple
reason
In
Australia,
Islands,
straw¬
the
on
word in its field.
Trusteeships
er
and
ot
Executorships
also undertaken
reason
more
the
transports will have nothing
more
a
to whether there will be separate
planes for passengers
and cargo.
Our theory is that the two will be
than
reclining chairs, where
passenger may doze
night,
knowing
there
in
the
available for
through the
that he will be
morning, anyhow.
Separate dressing
plane for several
In the first place, carry¬
men
rooms
will be
and women, to¬
gether with running hot and cold
water,
electric
outlets
for
the
ing two types of load will give
airline
traders
great comfort and
the commercial field.
commercial
all
complete and
banking
service
to
investors,
and travellers
interested in tbess
•
Despite the outstanding success
of this famous transport, however,
Douglas engineers are by no means
disposed to regard it as the last
the
in
Zealand,
the Pacific
it offers the most
efficient
Douglas
DC-3 and the Skymaster, or C-54,
are so well soundproofed, air con¬
ditioned, and free from vibration
after the close of the War.
one
New
London,
planes, the famous
port
obviously be readapted to
purpose
immediately
reasons.
branches
800
!
convenience because they are do¬
former
combined in
The Bank of New South Wales Is the oldest
and largest bank in Australasia.
With over
ing that today. The present trans¬
tended for civilian transport use,
stated
Manager
George Street, SYDNEY
two
Even
hour,
a
rate
of
however,
horizons
of
astonishing
250
degree.
miles
widen
will
civilian
travel to
One
of
an
the
an
the
great commercial airlines has re¬
cently
announced
a
schedule
which is doubly interesting
connection. Typical travel
in this
sched¬
ules all measured from New York
would be: to Los
Angeles or San
Francisco, 10 hours; to London,
14; to Paris, 15; and to Berlin, 1-3,
while a trip from New York City
index moving from 94.7 chances for profit, since one stop
Dec. 29, 1943 to 104.4 on June may involve the
handling of peo¬
21, 1944, a rise of 9.7 points or ple, while another stop provides
10.2%. This represents the high¬ for the handling of goods. In the
modern razor.
est level reached since "1937. Even
second place, the cargo of an air¬
course
choice bank stocks are
selling at a discount from
conservatively stated book values.
plane has something of the char¬
falls far short of the 500 and 600
our
mile
from San Francisco to Hawaii will
weekly
so,
many
now
J. S. Rippel & Co.
transport
Kodaks, jewelry,
travel
DAVIDSON, K.B.E.,
General
Now what about the passen¬
gers? One thing is certain; they
worth in every theater of the war.
Since this plane was originally in¬
can
ALFRED
natural cargo for the plane.
is enough about the car¬
a
30th
—£187,413,762
Assets
Head Office:
go.
outstanding
has
SIR
high value with small
Drugs, watches, foun¬
pens,
6,150,000
1
„,
1943
That
carrier of the Army Air Transport
Command,
Sept.,
,
series—from
the
as
Liability of Prop— 8,780,000
countries.
to
cious stones, and similar items are
model
Fund
Reserve
from
.
commer¬
next
Reserve
Aggregate
vege¬
California, peaches
from
Georgia, or
celery from
Michigan.
J
7 •"'•*;:
Fourth,
the
valuable
cargo,
which' includes
any
item
that
on
Municipal Bomfs
and
,
:
^
the
Jersey
fruits
——
1942
New
of
true
1817)
—£8,780,000
£23,710,000
and
feasible
be
Standard & Poor's weekly in¬
passengers, together with about 10
ing cities reported Government dex of New York
City bank stocks
tons of cargo, cruising at about
holdings at $37,434,000,000 on shows the
following record:
250 miles an hour and flying at
March 29,
1944 -compared with
High
Low about
20,000 feet.
$26,753,000,000 a year ago. . The
101.5
81.9
increase is $10,681,000,000, equiv¬
i
100.0
Opinion is somewhat divided as
74.6
mercial loans increased from $5,-
is
Capital
The
tain
its
000,000, a gain of $10,621,000,000
they have time to fade.
senger
the
(ESTABLISHED
Paid-Up
which must be made before it will
At the present time,
be
new SOUTH wales
country, and it
likely that cut
content.
it
from
the
already produce
wholesalers
are
calculating the
exact reduction in shipping costs
tary version of this plane, known
Laird, Bissell & Meeds
altogether
same
coming
into
equally wide-spread use. The mili¬
group.
across
seems
tables,
probably know, all of the
are entirely equipped
Dobglas DC-3, a 21-pasplane which thus becomes
to
Ltd.
baniTof
of
with the
the
Bank,
Australia and New Zealand
can
flown
fore
standard as a public carrier.
Only the interruption of war pre¬
vented the DC-4—the 42-passenger
plane which was de¬
for
our reasons
Deacon's
Glyn Mills & Co.
excep¬
major lines
signed
.:
an
ASSETS
Associated Banks:
Williams
states and then carried north be¬
the"
YORK BANK STOCKS
Street, W. 1
£115,681,681
flowers of all kinds may be grown
in the open air in our warmer
group,
on
TOTAL
even the
greatest
generally be traced
to the failure of some critical part,
rather than the whole equipment.
Third, perishable goods, includ¬
ing such items as flowers, fruits,
vegetables and sea food. Even at
present
orchids
are
sometimes
and
one
which probably deserves a major
share
of
our
attention, is the
transport plane "which will be
cial airlines.
19.6%
improved earning condition of
with $10,575,000,000 a year ago, a
the banks. In fact, it could with
gain of $2,791,000,000 or 26.4%
justice be said that, until lately, it
Commercial loans expanded mod¬
has been very tardy, since the
erately
from
$2,293,000,000
to
earning position and the operating
$2,465,000,000, while total loans
earnings of leading banks in New
and
investments increased from
York City, and other large cities,
$16,164,000,000 to $19,007,000,000, have shown
steady betterment
a gain of 18.5%.
year by year since 1939.
Member banks for the 101 lead¬
second
Burlington Gardens, W. /
64 New Bond
more.
or
But this would be
machinery
tain great
The
Smithfield, E. C. /
Charing Cross, S. IV. /
tion rather than the rule since the
in recent weeks and months.
THE CASE FOR NEW
or
Government will
49
is
air.
OFFICES*
Bishopsgate, E. C. 2
8 West
letter
emergency cargo, and
the only time when the
might take on the character
of freight if the emergency were
great enough. The breakdown of
a printing press, a pumping plant,
pr a power house might give rise
to an emergency so grave that the
owner would be justified in trans¬
porting even heavy machinery by
military air bases which
must be adequately staffed with
trained personnel and equipment
to
handle
all the mighty
war
planes which have poured such
death and destruction on Germany
$2,947,456,000
$19,577,794,000
*
able the
3
the following:
as
the
LONDON
which will fall in
Second,
this
signed for war and with a few ex¬
ceptions it will not be either
built for service
—-——-
this gain in earning
of
!
865,026,000
Tr.—
Corn
Irving
►
3,437,465,000
National
Chase
194302
March 31, 1944
$667,153,000
airplane
will be of the general char¬
throughout Scotland
before,
load
profitable or possible to convert
them to peacetime use. Presum¬
ASSETS
EARNING
March 31, 1943
Bank
shown in the fol¬
are
lowing tabulation:
by Public Na¬
said
tance is 500 miles
we
adequate fleet
an
have
I
OFFICE—Edinburgh
Branches
mail.
Many
people believe that by 1950 and
beyond all first class mail will go
by air, especially when the dis¬
ships in the air, just as we now
whose earning assets ex¬
have an adequate fleet of ships on
York City banks aggregated $19,- panded by 43.0%, while the small¬
the sea.
These fighting planes
577,794,000, compared with $16,- est gain was by Chase National,
and bombing planes were all de¬
with
10.9%.
Figures
for
each
of
630,338,000 on March 31, 1943, an
assets
certainly
As
First,
States is to preserve any consider¬
able part of its military establish¬
it
they will
try to fly it through the air,
such classes
airplanes in the post-war world.
The first, of course, will be the
military planes.
If the United
ment,
HEAD
.
but
sea,
acter of express
Before developing the subject
further, I must emphasize the fact
that there will be at least, three
separate and distinct classes of
* l
.
land
on
never
cargo
.
This Week—Bank Stocks
Incorporated by Royal Charter 1727
advantage in attacking both Ger¬
many
Brokers
(P. C. T.)
Trading: daily 7 a. m. to 5 p. m.
Royal Bank of Scotland
(Continued from first page)
Special Bulletin and Booklet Service to Dealers &
Inquiries invited.
Shape Of Wings To Come
Quoted
REVIEWED
-
Thursday, June 29, 1944
recall
the
Puglies To Be Partner
Louis J. Puglies will be admit¬
ted
to
of
acter
may
always
rides
train .rather
than
express
the
men
reason
carry
haul
iron,
airplanes will
freight. As long as
brick
and
and
stone,
coal
lumber
and
indicated,
already
I
realize
that
this
speed
speeds which have been
so
possible in time of war, the ddded
wear,
together with the extra
gasoline consumption, would be
that
sand
have
freely predicted. Unhappily there
is no airplane in the world today
which is capable of making 500
miles an hour, but even if ij> were
One thing is certain; there will
be any freight airplanes for
and
of July 1.
you
not
never
as
and
the freight.
York Stock
Exchange,
that
passenger
partnership in Filor, BulSmyth, 39 Broadway, New
York City, members of the New
lard &
express,
I
As
these planes will probably cruise
at about 250 miles an hour.
Of
I
highly
extravagant
and
cient in times of peace.
ineffi¬
to Cairo
or
quire
even
an
Jerusalem would
24 hours.
re¬
Turning
steps to the west, the flight
be 10 hours, and another 24 hours
will take you to
Australia, while
the longest distance which is in¬
dicated in the schedule is from
New
York
City to Hong Kong,
the Cape of Good Hope,
will require less
than 48 hours flying time.
China,
both
or
of
which
I often wonder if
people realize
the
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4294
Volume 159
opportunities
foreign
for
due to the belief that
must fly great distance
water, but this is a mistaken
is
range
travel-which will be available in
planes
You will prob¬
ably agree with me that most of
us—and 1 mean by this most busi¬
over
the age of flight.
ness
and women—have gen¬
men
erally taken it for granted that we
will never do much foreign travel
for the reason that our vacations
generally regulated by
are
con¬
siderations of time and cost.
A Los
Angeles
vacation
two-week
could
man
who gets a
year
every
hope to make a round
never
As
notion.
matter
a
longest water flight
of faci,
tfye
route
is the jump from San Francisco to
Hawaii, which is less than 2,400
on any
The old route went from
miles.
Honolulu
to
The
one
Midway,
Wake,
Guam, and the Phillipine Islands.
new
Christmas
south
turns
Island,
Canton,
New Caledonia; but in either
the
subsequent
to
and
case,
jumps
are
all
Planes fly¬
circle from New
trip to Europe, even if he never
got off the boat; but with 24 hours
to go and 24 hours to return, he
will still have 12 whole days to
shorter
spend in England or on the con¬
tinent, and1 the same thing is
the direct flight from Natal across
thap the first.
the
ing
York
great
London
to
2,000 miles of
than
less
cover
water, while
open
the South Atlantic is
equally true if he wants to linger
in Honolulu or make a first hand
1,600 miles.
Thus a range of 2,500 miles over
water and 1,000 miles over land
acquaintance with the Orient.
prove
it
circumstances
these
Under
adequate
route.
on every
All this is dealing with com¬
mercial planes.
Now what about
the third class, the private craft
To
the question of pri¬
vate flying, it may be helpful to
our thinking if I remind you that
sum
up
that
O.W.I, believes
the
we
may
easily have 500,000 private planes
in the U. S. by 1950. Since every¬
quite reasonable to suppose
travel will increase
to 10 or 20 times its present vol¬
ume, and the majority of these
new travelers will not be people
that
foreign
who used
ride the railway or
to
steamer; they will be people
who never had the time to ride at
the
until
all
air transportation made
it possible.
predictions
that
is
which
fraction 'under
a
5c
a
mile, and it would not be out of
line with cost of first-class travel
transporta¬
present means of
on
tion.
"
■
The
lished
the
which
airline
same
pub¬
estimates
table
time
that the round
trip fare from New
by air will be
$186; to Paris, $202, and to Mos¬
cow, $260.
From New York to
Honolulu the figure is $272, and
the top cost announced was New
York City to Hong Kong and re¬
turn, $594.
Few topics have been the sub¬
ject of more wide-spread debate
than the probable cost of cargo
shipment in air transport. Quot¬
ing Mr. Warner again, a cargo rate
of 18c per ton mile was predicted
York
as
London
to
cost in post-war
reasonable
a
air
While this figure
represents a tremendous reduction
from the present average of 70haulage.
80c per ton
mile, it is still higher
which were ad¬
vanced
by Mr. C. I. Stanton,
C.A.A. Administrator, in his re¬
than the figures
cent address to the United States
Chicago,
Conference of Mayors in
when he said
anticipate
a
might ultimately
reduction to some¬
we
where between 10 and 15c per ton
mile.
These quotations are espe¬
cially
appropriate
show
the
they
of
opinion
among those who
difference
that exists
are
because
even
speak.
best qualified to
One
thing is certain; the costs will al¬
ways
comparable to express
rates, and for
be
rather than freight
that
commercial
reason
dealers
will doubtless restrict their ship¬
ments to certain
specialized items
of the kind I have indicated.
There is
one
other point of gen¬
eral interest and that is the prob¬
ably
of
range
these
commercial
planes.
Just as the speed- will
probably be less than half the fig¬
ures
which have been so freely
predicted, it seems likely that the
range will be restricted to 2,500
miles
as
tance
that
a
maximum.
a
plane
can
The
fly
dis¬
non¬
stop is obviously measured by its
load of gasoline.
All the great
four-motored planes in use today
mile per gallon
gasoline consumption. In other
words, a plane which has to fly
1,000 miles non-stop must lift 1,000 miles of gasoline in its tanks.
Long-range flights would obvi¬
ously require such heavy leads of
fuel that there would be no lift¬
average
around
a
of
ing capacity left for a profitable
pay
load.
At least
a
part of the misunder¬
standing concerning the maximum
leaf
a
agrees
will
be
the
Harbor
there
about
were
25,000 private planes in the United
States and if, as some authorities
believe, there are at least four
for
fliers
plane, we- may
suppose
there, were 100,000 ci¬
vilian, pilots at that time. Many
of
these
every
have
since
Civil
Air
men
active
in the
more
or
become
equator
of
great
fifty.
to
one
as
In other
it
world, while they will not lie di¬
across the pole, will lie so
to
near
come
the
over
before the war
is
over.
About 300,000
the
50,000 automobiles, it seems suit¬
able to plan for a total of 1,000
Iceland
airplanes in the same area.
The Michigan State Board of
has approached the
subject in a little different
same
by pointing out that a total
of half a million airplanes means
way,
to
one
of population.
300
every
Using this method, one has only to
the
count
county,
of
population
city,
a
state, divided by 300,
probable private
or
and arrive at the
planes. The Michigan authorities
actually applied this process
stations
be
no
satisfied to
satisfied to
drive
a
we
will
horse
and
,;.fy'
buggy.:
third class
A
more
automobile than
an
of
probable cus¬
tomers
will
be
the
sportsmen,
those men who like to hunt big
game in Canada, to catch tarpon
in Florida, or to race a speed boat
at Lake Michigan. Since the ob¬
vious attraction of these things is
the thrill of doing them, it seems
most likely that sportsmen will
want to fly a plane and thus en¬
joy the greatest thrill of all. And
when
into
groups
automobile.
cording to this schedule.
is certain and the rest
One thing
is
is
there
used
Omar
lies—as
in
field
no
to
say:
somewhat limited.
Few
uses
are
men
would want to travel by air
unless their journey involved sev¬
eral hundred miles, and most of
others
have
in
brilliant
sunshine
only to find himself in rain, hail,
sleet, snow and storm, or fog.
Commercial planes" fly on estab¬
with
routes
automatic
radio
guard
and
signals,
every
and
radio
kind
protection.
beams
two-way
of safe¬
-
tant
Bulletin Issued
F. H. Koller & Co., Inc.,
Broadway, New York City,
inaugurated a new bulletin
Condition Worsened
titled
By War
tions.
that
press
"Dealers'
suggestions
STOCKHOLM, June 17—Excep¬
Sweden
In
some
•
current
several
which
of
Interest"
interesting
of
the
contained
Ill
has
en¬
with
situa¬
issue
are
suggestions,
the firm
believes
offer real post-war attractiveness
to
the
investor
and
are
sound
and others which are speculatives. Copies of this interest¬
now,
ing bulletin may be had from F,
H. Koller & Co. upon request.
(This Announcement is not
Agricultural Mortgage Bank
(Banco Agricola Hipotecario)
Guaranteed Twenty-Year 7% Sinking
Issue of 1926, Due
Guaranteed Twenty-Year
Issue of
Issue of August,
Issue of
involves
a
10
to
15
miles
(Banco de Colombia)
Dated
.
.
Mortgage Bank of Colombia
(Banco Hipotecario
de Colombia)
Bonds of 1926
Twenty-Year 7% Sinking Fund Gold
Dated November 1,'1926,
Due November 1, 1946
Twenty-Year 7% Sinking Fund Gold Bonds
Dated February 1, 1927,
Dated October 1, 1927,
of 1927
Due February 1, 1947
Twenty-Year 6%% Sinking Fund Gold
Bonds of 1927
Due October 1, 1947
Mortgage Bank of Bogota
(Banco Hipotecario
de Bocrota)
Twenty-Year 7% Sinking Fund
'
::
Issue of May, 1927,
7
of the city,
Gold Bonds
Due May 1, 1947
Twenty-Year 7% Sinking Fund Gold
Issue of October,
Bonds
,
1927, Due October 1, 1947
an<l
,
Sinking Fund Dollar Bonds
Republic of Colombia, Due October I, 1970
Convertible Certificates fofr 3% External
of the
Since helicopters requite
of
.
Dated April 1, 1928, Due April 1, 1948
,
■
streets.
April 1, 1927, Due April 1, 1947
Twenty-Year 7% Sinking Fund Gold Bonds of 1928
which involves corresponding de¬
lays for the passengers who have
to
traverse
the
crowded
city
Sinking Fund Gold Bonds
April, 1928, Due April 15, 1948
Twenty-Year 7% Sinking Fund Gold Bonds of 1927
run¬
away
"
~
Bank of Colombia
..
.
way
from
~
Fund Gold Bonds
1927, Due August 1, 1947
Guaranteed Twenty-Year 6%
Airports have come to be re¬
garded as falling in four different
I
7% Sinking Fund Gold Bonds
January, 1S>27, Due January 15, 1947'' "
'
.;':;V/VV,v y/;.'
Class
Fund Gold Bonds
April 1, 1946
Guaranteed Twenty-Year 6% Sinking
way to get off the ground, and
they must also have a runway to
re-establish contact with mother
classes.
;
Colombian Mortgage Bank Bond:
tically without requiring any run¬
way.
Regardless of how greatly
airplanes differ in other ways,
they are all alike in one respect
at least—they must have a run¬
earth.:
Offer)
an
To the Holders of
airplane in those days
was
a
mighty sketchy thing.
The reason why the helicopter
kind, it would
no
runway
be
entirely practical for them to
any
NOTICE OF EXTENSION
take off from the roof of the post
office
lot
or
hotel
nearby,
or
from
a
and provide
vacant
a
-direct
shuttle service to the airport in a
few minutes time.
v
-
line
service
to
the
larger
The time within which the Offer,
is
map.
All
our
lives
we
have been
accustomed to studying flat
hereby extended from July 1, 1944 to July 1, 1946.
The
period for exchange of Convertible Certificates for
3% External Sinking Fund Dollar Bonds of the Republic
due October 1, 1970 in multiples of $500 principal amount
has also been extended from January 1, 1945 to January
1, 1947.
cities
One of the first things you and
I will have to learn after the war
is to read a new kind of world
horizontal line
equator
would need to be highly of the page.
running
to
Copies of the Offer may he obtained upon application
Agent, The National City Bank of New
the Exchange
York, Corporate Trust
New York
across,
heavy
the
center
...
Department, 20 Exchange Place,
15, N. Y.
AGRICULTURAL MORTGAGE BANK
maps
a
as
dated June 25, 1942,
exchange the above Bonds and the appurtenant cou- '
pons for Republic of Colombia, Z% External Sinking:
Fund Dollar Bonds, due October 1, 1970, may be accepted
Jo
with larger facilities.
be
and they
"Dealers' Interest" New
with certain top people in Don?1 as
whose hands hold the reins of the
(Banco Agricola Hipotecario)
Private spread out from right to left with
courses,
lation of Sweden is 6,450,000.)
be said to reflect intimate contact
the
that
the
uncharted
war
over
10,000,000,000
kronor,
or
roughly $2,500,000,000. The popu¬
How¬
ever, the conjectures are based on
fairly well accepted facts and may
types of transport, both for
fliers, on the other hand, would
following
total
doubtedly be One of the impor¬
Construction of even the smaller
enough
justify the cost of owning an airports involves considerably
airplane for the occasional trip.
outlay, both for initial cost and
In the second place, piloting a
upkeep, and it is hardly likely
plane involves more skill both in that smaller communities could
operation
and
navigation
than afford to build or maintain ade¬
driving an automobile would ever quate equipment; but even the
do.
Weather is always a hazard smallest town could furnish a va¬
in flying and the consequence is cant lot and
consequently, the
that a man might fly a few hun¬ helicoper would afford a branch
and
been factual.
is
10,058,000,000
$2,515,000,000]. The
expenditures have been
kronor [about
,
do not go so far often
miles
[$675,000,000]
noted,
of the foregoing statements
have been purely speculation, and
some
has enjoyed
"fantastic war profits" is taken in
than in the whole debated and de¬ the newspaper "Arbetet" of Malbatable field of aviation.
mo
by its editor-in-chief, Allan
Helicopters, or some kind of ro¬ Vougt, who is a Parliamentary
tating
wing
aircraft, will un¬ Labor Leader in the Riksdag and
to
lished
undoubtedly
you
which wise, tion to statements in the foreign
thoughtful, and long-range post¬
war
planning is more essential
from the business part
place, its
decreased, and the national debt
has multiplied.
(At present this
debt, which at the start of the
war
was,
2,700,000,000
kronor
.
.
As
Sweden's Economic
how¬
In the first
the incomes of all categeries have
Bombay, Calcutta and Hong
Kong.'" ;
•
■'/.' ■
future.
consideration,
population.
Frankly, there, are
considerations involved
to allow the airplane ever to come
in quite the same class as the
or
or
cow,
county in both the upper
and lower peninsula, and indi¬
cated the exact distribution ac¬
cated
too. many
dred
pole,
and
ered, the wage-workers have lost
10% of their basic wages, the cost
of living has gone up about 50%,
to every
these
take
ever, it is evident that they will
form only a small minority of the
us
the
have
all
we
some of the belligerent
they have become definitely
poorer since the war began, their
standard of living has been low¬
Alaska, on the other,
and air routes fanning out to Mos¬
of 1,500-2,500 feet; class II,
25-3,500 feet; class III, 35-4,500
feet, and class IV, or major air¬
there
are
some
business
men,
ports, 45-5,500 feet, with a stand¬
especially in the great open spaces ard runway reckoned at one mile.
of the West, who may find planes
This means, of course, that with
extremely useful in the conduct few
exceptions, the air fields of
of their business.
the country must always be lo¬
Even
Greenland
side
is
tries
the world and
side, with way
either
one
Relations.
ones,
Fairbanks,
may
them will be
drive
of
other
at
on
of these young men
pilots, and while the
never have held the has
captured the imagination of
stick, they certainly have learned aviation enthusiasts so strongly is
the thrill of flying, and some of
that it can rise and descend ver¬
expert
others
well within the Arc¬
top
Foreign
on
untrue, he writes. While
true, he continues, that the
people of Sweden are better off
than those of the occupied coun¬
the
rectly
less
men
are
of
routes
of the influential
member
Such charges are unfair and defi¬
nitely
trade
great'
down
Aeronautics
a
Council
the
Patrol, a public and private use when once
voluntary
group
they are perfected.
Unhappily,
which has done yeoman service in
the general public does not real¬
promoting interest in aviation and ize that the helicopter is still in
recruting members for the Army the
experimental stage.
In fact,
Air Corps. Of course, the biggest
many
engineers think that the
change that has come since Pearl helicopter stands today where the
Harbor has been the enlistment of
airplane did in 1910, and if any of
the mighty Air Force which seems
you
can remember the crude
lkely to reach a total of three mil¬ models of 1910, you will agree
lion
also
the circumference
as
circle, which has the
north pole as its center point, and
a
words, if the city, country, or state
in Which you live has a total of
Patrick
of
out
book and try to- judge
future by the past.
Before
Pearl
.
will ever be as
automobiles are today.
the best plan would be
take
to
problem of the cost. Mr. Edward
Warner, ; Vice-President of
the
Civil Aeronautics Board, said re¬
might expect the
passenger rate within the United
States to drop as low as 3c a mile,
within the next few years.
This
would represent a
considerable
reduction over the present rate,
de¬
airplanes
common as
time, however, we also have the
we
a
Despite the various
which have been so
freely made, we in the aircraft
industry are not at all convinced
Henry's
cently that
This is
batable point.
Perhaps
Aside from the consideration of
use?
for individual
same
Instead of traveling
that there will cer¬ tic Circle,
tainly be 25 million automobiles east and west, as men do now to
by the same year, it is evident reach Europe or Asia, a large pro¬
that the ratio of planes to cars portion of the traffic will be up
one
,
seems
Tomorrow's map will show that
expert, both as pilots and naviga¬
tors.
2699
By
Dated, Jan. 26, 1944.
Juan Salgar Martin
(Gerentel
THE COMMERCIAL
2700
& FINANCIAL CHRONICLE
tax of
10%, leaving the,recipient
of' $22,500. Today it is necessary to have
an initial income of $50,000 a year
Inflation And The Stock Market
a
(Continued from first page)
erated
as
increase in monetary
an
in
net expendable income
TAXATION
Yet that fact did not
volume.
to have
equal
expendable income left
that of. the man who
an
to
started out
with
$25,000 salary
a
in 1938.
posits,
a
the
and
the
of
deficits
chronic
Federal treasury.
conviction
It has been the
students that past
of
inflationary experiences have had
their
the
in
source
aforemen¬
A second
pillar upon which in¬
flationary enthusiasm rests is this
proposition. With general pres¬
sures
operating
on
prices, all
If all prices rise, then
prudent and practical
capital fund in some
it becomes
to
place a
vehicle whose price will be car¬
ried
along
When
fund
the
on
the
owner
general tide.
of the capital
price.
do
can
of each
This reasoning
for the stock
Unit of currency.
made
order
to
market, since
stocks
common
obvious vehicle for
an
are
hedge of
a
third
A
Yet the market did drop
Similarly, a low point in
peaks.
the
market
late
spring
reached
was
those
of
the
supporting
pillar
confidence
the
in
1942,
although at
capita demand de¬
of
that time per
posits, currency and national debt
unprecedented levels.
had reached
Changes, therefore, in prices, be
they commodity prices or stock
who
expect
inflation is the apparent
analogy
between the present experience
of this country and the experience
in Germany after the last war and
China today. These two countries
are
cited
with
increasing fre¬
quency to demonstrate the alarm¬
ing results of inflation and at the
same
time to prescribe the ap¬
Not Absolute Axioms
Dollar Turnover
One
that
item
in
attention
ficient
quantitive
insuf¬
receives
the
purely
in its broad sense, is a twodimensional concept.
It consists
of the* total number of dollars,
deposits., mul¬
tiplied by the average' number .of
times each dollar turns over.
In
1929, total debits in centers out¬
of
side
York
New
were
greater
currently, although
outstanding and deposits
subject to demand were much
lower. This is due to the fact that
than they are
currency
those
turned over 47
compared to a
deposits
1929
in
times
as
of 17.
current velocity
This vary¬
consider
us
~
these
,
That point in
has not been
American inflation
of the cumulative effect of chronic
reached and is not in sight.
Federal deficits.
ever
It is
necessary
in this connection to. urge a cau¬
tion.
The principles governing
prices
and
money
approxi¬
are
mate, probable principles and not
the
absolute axioms of
estab¬
an
lished science-
It Is not possible
in this field to
reason
cise,
Attempts have been made, to be
sure, to correlate changes in sup¬
of
From
tary
money? and price
the long record of
and
levels.moner-
price
experience, it is
cull
a
sufficient
amount of evidence which by it¬
self might appear to prove that
possible
rise
to
in
the
supply of money,
things being equal, will
cause prices to go up, and that a
decline, in. the. supply of money
a
other
will
prices to fall,
cause
if
ever,
departs
one
How¬
from
the
selective presentation of evidence
and
includes all
that has
vant bearing on the
is
seriously citizens
of
icies
a
rele¬
issue, the
an¬
quite different.
alarmed
ever
the growth of
the public debt, the
fact is that they still retain a great
measure of faith in the integrity
If
we
It
is
established fact that the
an
proportion
of the
and
currency,
were
exceptional
SAVINGS
BY
the
varies
with
come.
and .it
88.1
this fact,
98.4
so
1943
5,000
894
4,106
82.1
1938
10,000
415
9,585
1943_
10,000
2,467
7,533
8,869
41,131
82.3
10,035
14,965
59.9
1938
L
income
size
of
rapidly
increases
than
The average
saved
that
in¬
the
fa?
more
income itself.
with an; in¬
year
usually
person
come
of
$2,500
saves
less
than
a
10%.
As income
mounts, the proportion saved in¬
creases until -by the time an in¬
LEVELS
$20,000 is reached
of
level
ceeds 50%
INCOME
proportion saved
ex-
.
1938
1943
50,000
1938_
$2,000-$2,500
100,000
_
1943_:_
100,000
1938
___
___
1943
8,869
41,131
27,075
22,925
32,469
67,531
68,584
31,416
31.4
121,706
48.7
128,294
899,000
101,000
10.1
the other jaw rising costs, mostly
labor and taxes.
That corporate
without dependent.
infla¬
no
Current
Gifts and
Consumption
Personal Taxe^
;
"
86.7
going
are
vehicle which will
fund along the road of in¬
and thus prevent a rela¬
8.9
price
that
past
fairly uniform
changes
in
United
the
States
today
is
a
culture 'in
war
last
the
and
In the period 1914-1918, la¬
an increase of approxi¬
war.
bor
this
won
lating
into
earnings
money
hour
per
real
equivalents showed an
actual loss of 10% in the buying
hour's work. During
the present war to date the money
of
power
an
earnings
hour have gone up
per
approximately the same as during
the last war, namely, 46%.'How¬
ever, in this war, the cost of liv¬
ing has mounted only 23%; with
the result that labor today, for
a
normal hour's work, enjoys a
real increase
the
the
of
case
the .last
17.6%.
of
war
rose
Consider
farmer.
During
the
prices - of his
105%. Corrected for
changes in the cost of living, this
showed
per
increase in real value
an
unit of product amounting to
In the present war, farm
33%.:
prices have gone up 102% and in
real equivalents 63%.
consider
all
is, to say,
manufactured goods and raw ma¬
terials whose producers do not
have sufficient political signifi¬
cance, do we see the real differ¬
Only
when
we
other commodities, that
the
between
World War
I
and
inflation
World
War II.
In World War I these other
modities
almost
ties.
as
rose
much
as
the
farm commodi¬
-
present
war,
commodities
other
com¬
98%?, that is to say,
During
these
in
only 23%,
have
compared
with 102% for farm products.
It
is clear from these experiences
gon,e
up
as
labor, under ostensible con¬
has fared
market during the last war.
a
free
Sim¬
World War I and in terms of real
Resources
Committee.
The
pertinent question in this
problem, therefore, is the fate of
the savings margin in high in¬
The incomes' which in the
comes.
past have
been
most
productive
of the funds available for
purpose
precisely
are
comes
which
fering
most
are
a
capital
those
currently
income has done
current
in¬
suf¬
period,
the- Government
has nevertheless argued that they
be
must
drastically
reduced
inflation.
order to avoid
in
The al¬
inflation control,
plus the real need for revenue to
carry on the war, has resulted in
leged
such
to
need
an
for
increase in the tax load
eliminate
substantially
the impact of, portion of higher incomes which
in the past has been available for
Although such
In 1938 an
the whole have not the security market.
from
war-time taxation.
incomes
uhown
on
any
great increase in the
ter.
ducers
without
have
tance
their
income of $25,000 paid a Federal
a
great deal bet¬
On the other hand, those pro-:
.
political
found
products
the
impor¬
prices of
effectively
con¬
trolled.
Effect oii Earnings
This
has
a
as
that
tion-may
be
or,what
level
the
Nor
the aggregate of demand de¬
can
money
in
total
in circulation
or
the
investor, therefore, should
against blindly ac¬
cepting the thesis that all prices
are
going up, that stock prices
ties
The use of securi¬
hedge vehicle against in¬
as a
,.
The
tjfiird prop of inflation
psychology is the alleged similar¬
ity
of current American experi¬
in Germany .after the last
ence
war
and
possibly China during the
war.
This similarity is
reasonable
definite bearing
on
earnings and it is to earnings that
the owner or prospective owner
of
a common
its value.
stock should look for
If inflation—American
model, World War II—results in
a
Germany under
The consequences of this selec¬
character
in
inflation • can
easily, be
discerned
today*in a
E. M. Voorhees,
number of fields.
Chairman of the Finance Commit¬
called
his
attention
Corporation,
these facts
to
in
testimony ,> before the steel
of the War Labor Board.
panel
for
ers
a
body
hearing
was
evidence
the demand of the steel work¬
170
guaranteed annual wage,
a
hour increase in wages,
an
certain other benefits in .the
and
aggregate more costly to the Steel
Corporation, than either of the
first
to
He
demands.
two
fixed
the
pointed
prices
He
of steel
level
the rising total of costs.
and
spoke with the reported earnings
of
Steel
the
first
Corporation for the
1944 before him.
quarter-of
These
earnings
$1.23
of
share
a
compared with earnings of
$2.03 a share in the first quarter
were
foundation.
potential
the last
gations,
abroad
panied by
In
Corporation,
nevertheless
accom¬
decline of 39% in net.
words, the break-even
a
other
point of steel operations had been
steadily rising throughout this pe¬
What
riod.,
the
effect
of
these
rising costs would be in a normal
period he illustrated by turning to
na¬
did it have the credit
nor
non-existent.
was
Conse¬
quently, the only recourse left to
weak and desperate Government
was the printing
press.
This does
not present a proper guide for
American thinking about inflation
•today.:* China similarly lacks any
authentic similarity. Economically
the country is still in its infancy.
The authority of the Chungking
Government is questioned in large
areas of China.
Again, this Gov¬
does
ernment
have
not
the
au¬
thority to levy adequate taxes.
is
without
home
needs.
of the Steel
After
defeated
a
increase of 36%
increase
country.
was. a
among its own citizens to borrow
the necessary amounts.
Its credit
In the interval, there had
an
it
the authority at home to levy the
taxes necessary to meet its obli¬
been
revenue
of this
war
tion, its leadership discredited, its
Government weak, It did not have
of 1941.
in gross
circumstances
no
at any Time has had the economic
at
an
■
Germany No Parallel
without
Rising Costs
out¬
cautioned
present
..
on
50.8
Taxation and Income
tp
the
what
matter
no
national income may attain.
This
period, however, the
cost of living rose 64%.
Trans¬
same
have
The
be
Federal Reserve Index^ of Produc¬
In this
40.2
Source—National
disappear
mately 46% in hourly wage rates.
14.1
"
If
and
increase
enormous
value and that value will tend
tee of the U. S. Steel
agri¬
.8.1
'
aggregate
they have is due entirely to the
flation may prove illusory.
the experience of labor and
38.9
■
the
must also go up.
tive
8.1
'
decline
earnings
highly selective phenomenon, with
selection, actuated primarily
by
political force.
In illustration of this, consider
53.0
51.7
in
,
10,000-15,000
35.1
finished products and
.tend to disappear, common stocks
will similarly tend to decline in
field, that certainly is not true of
the current experience.
Inflation
ilarly, the farmer, under a sys¬
tem of controlled prices, has fared
nominally as well as he did in
15,000-20,000
farm buying power.
or
corporate
broad' this trend.
over a
6.6
20,000 and over
what
of
size of the Federal deficit deflect
the
63.6
29.8
This is true irrespec¬
in
were
power.
5,000-10,000
.
injurious.
posits,
buying
inflexible
put.
of
Al¬
though it may have been true of
certain
inflationary experiences
tive loss of real
much better than it did in
4.4 '
and
up
of
is
come
upon
becomes wise
therefore,, it
trol in the present war,
Savings
earnings
consists
made the creditable record which
tive
syllogism
which
earnings and a
prospect that they will decline,
the effect of that on stock values
constriction
may happen to the
general - price level, to labor in¬
which inflation sentiment rests is
carry a
43,142,
Treasury Department.
Research,
Inflation Highly Selective
some
jaw
one
1,000,000
ket funds.
prices
vice,
a
of
prices for
tionary explosive force resides to¬
day in the incomes which for¬
merly provided the bulk of mar¬
flation
being squeezed in
17.3
married,
that,
of corporate instances throughout
the country. Profits are definitely
67.5
32.1
is
to mount
82,3
45.9
320,956
Note—Individual
all
Steel
206,858
Tax
that
S.
679,044
of
second
of U.
Corporation and the railroad in¬
dustry is represented in thousands
250,000
Source —Division
The
75.3
•
are moving ahead
rapidly that net is
more
actually lower.
The experience
95.9
-
costs
much
1,000,000
■___
1938—_
*
'
250,000
___
1943
that
1935-1936
Per Cent of Income For-
Income Level—
25,000
__
1943
ence
the average
credits
the buy¬
ing power which is effective in
producing possible changes in the
stock market, attention must be
directed to the particular funds
which in the past have sought
an outlet in the security market.
These funds in large part have
come from the savings of individ¬
uals in the upper, income brackets.
1929, ^consisting
bank
measure
100.0%
4,920
products
to
are
come
of
How¬
may ques¬
Government, how¬
they ,may be Over
our
The in¬
flationary elements in the fall of
swer
.
tion the. monetary a,nd fiscal pol¬
definite,
•
ply
crease
from pre-, of the dollar.
to
concrete - cause
ascertainable effect,
,
in turnover.
deposits-subject to demand, of the
great rise in national income and
$2,500
'2,203
-
.
$0
the
Class I carriers in recent months
is still ahead of the corresponding
months of last year.
In spite of
80
tion is the factor of turnover. Cur¬
rency,
After Tax
Liability
297
of
revenue
Bu¬
presents.
reportihg
Income
a Per
Cent of Net Income
,
Transportation
5,000
about infla¬
thinking
Tax
$2,500
_
It must be clear that
supply, tending to diminish as the
three, supply of currency expands, and
to increase if the supply of Cur¬
bases of inflationary thinking. The
monetary factors which tend to rency is inadequate. * -j
To be sure, when the public is
press prices upward have received
jmuch attention. It is not neces¬ in process of losing Taith in' the
sary to cite the precise increase, currency, a purely artificial fever
A con¬
in currency circulation.
The fact is imparted to turnover.
that this country today has a per certed flight from funds occurs
at
such
times,
usually
following
capita circulation^ three times the
peak of 1919 is of'no moment. The or accompanied by vast emissions
fact is there has been a great in¬ of currency.: There is>not only an
crease.
The same can be said of increase in supply but also an in¬
Let
Net Income
of
1938
tors alone.
ing turnover'may be regarded as
an
automatic adjuster of total
propriate remedies.
Year—
1938
prices, must clearly depend upon
other factors than monetary fac¬
both currency and
this type.
■
deposits, plus
Federal
deficits,,
could again be cited in the sum¬
mer
of
1937 as touching new
so
decline in the value
Income
1943
at a higher
The larger proceeds then
he
realized will compensate him for
is
in circulation and the size of bank
hedged chooses to liqui¬
so
date,
the
market.
which the illustration of the
After Tax as
-
a
down.
tioned elements.
prices rise.
collapse in the stock
The quantity of currency
prevent
The current reports of
the railroads document the lessQn
Gross
INCOME
»
growth in bank de¬
rise in national income,
circulation,
forecast.
reau
EXPENDABLE
AND
Thursday, June 29, 1944
the
the
and
credit
to
abroad
The
only
Government
to
its
meet
option
is
It
borrow
left
to
the
printing
result, China's price
level today is 250 times as high as
it was in the pre-war period.
It
is rising at a monthly rate of 10%;
As
press.
To
.
these
cite,
possible
a
two 'examples
as
guides to America in
meeting the problem of inflation
is to invite deliberate self-decep¬
.
the experience of the Corporation
in the peripd 1936-1939.
If the
tion.
output at that time were produced
possible -hedge
at costs
it is necessary to see a sound rea¬
of
son
prevailing today, the net
corporation, reported at
$179,000,000, would actually turn
to a deficit of $300,000,000 and the
the
U.
S.
Treasury would lose
$57,000,000 which the
of
tax
Steel
a
In
,
thinking of securities as a
against inflation,;
for
increased
market place.
more
the
rising costs on sta¬
tionary prices, was given by the
Bureau of Transportation of the
creased
I.
been
C.
C.
This Bureau, examining
the effect of present costs on nor¬
mal traffic
purpose
volume, turned, for the
of hypothesis, to the traf¬
It credited the
1940.
fic level of
operating statements of the Class
I carriers with the saving in in¬
terest
charges resulting from
duction
It
also
of
debt
assumed
in
a
the
The Bureau
icit of $447,000,000.
it
clear
that
these
figures
represented merely an exploratory
hypothesis
and
crease
not
an
official
pari
with
passu
in¬
the
in prices and that the whole
burden
of
inflation
directed
has
control
toward
restriction
of
corporate profits and the ab¬
sorption of excess, income amopg
individuals
brackets.
in
the
income
upper
This combination does
not warrant
confidence in
flation stock market.
.
in¬
an
-
-
Prospects After the War
What
10%' increase
000 would be converted to a def¬
made
tributable to shares have not in¬
re¬
traffic over 1940. Ap¬
plying to that hypothetical traffic
present costs, it found that the to¬
tal cost of operations would be
increased
$695,000,000, and that
net reported income of $249,000,-
discount of the
It is clear from the
that the earnings at¬
foregoing
interval.
in passenger
the
generous
prospect.
of
in
value has always been predicated
on
an increase in
earnings or- a
Corporation paid in that 4-year
period.
"A similar illustration, showing
effect
value
Such increase in
war?
are
the prospects
after the
Is it not likely that a tre¬
mendous
spending
take place, that the
splurge will
great pressure
of accumulated needs and hoarded
savings will break out in the form
of
higher prices after the war?
is
true that
has
the American
accumulated
an
It
public
astonishing
total of savings, a total which
the
end
of
$100 billion.
this
year
may
by
reach
A part of this, 'con¬
sisting of reduced debt and added
Volume
is not di¬
spending in
the post-war period.
Nor is it a
insurance
protection,
available
rectly
Congress Recesses Until August I—Informal
for
conclusion
safe
awaiting availability of
goods in the post-war period; that
is merely
individuals
the
with
and foresight to set
their
bark
a
a
power
in
Political Conven¬ sponsor, Keystone Corp. of Boston. The new literature takes the
tions, sound out home town sentiment, and rest after being in almost form of a folder in which two schedules—one listing the investments
continuous session since Jan. 10.^
and the other showing distribu-W
The press advices also said:
789,301 Navy appropriation which tions—are set up to be filled in'
The recess resolution called for President Roosevelt signed Thurs¬
according to the needs of the in¬
a formal recess
until Aug. 1 but day, it brought to $390,000,000,000 dividual investor.
There
ample oppor¬
in¬
are
tunities for the expenditure of
as
provides that legislators may be
back before then if
is fully attested by the
summoned
ability of war workers to get rid
currently of their entire earnings.
Those who are saving to¬
day
doing
are
wholesome
tion,
because of a
of personal cau¬
so
sense
husbanded
dent
the
of
business
Government
the
how
ing the current year, Senator McKellar
or
raise prices without
can
affecting consumption.
The con¬
sumer is not bound absolutely to
the
to buy or not to
war
buy, just
and
P.M. and the Senate
State St. Inv.
To
with net
assets
Corp.
of approximately
I
mind
difference
the
continuous
and
of
attrition
and materiel on
manpower
The end of the
sides.
between
World War
war, -
conflict involving tremen¬
was a
dous
levels that are de¬
termined, in part by. the incomes
of consumers and in part by the
war
both
found
both- antagonists with empty bins,
offered for sale.
Is it proposed in the period after
the war to raise wages still higher
and, if so, what happens to indus¬
trial^ costs?
On, the other hand,
of goods
must
amount
Fund
Spencer Trask
approximately
to
to
so
.speak, and
a
Also, World War
replenishment.
I
did
call
not
great need for
economic
the
for
mobilization, the complete reali¬
sation of economic potential that
this war has demanded.
As a re¬
the
through
of
from
monthly
income
investment
and outgo.
program
serve
if it is arranged so that
of
series
to
ments
will
established
it will
regular
basis."
in
state
the
letter
to
members
of
vantages of leverage in a rising
stock
market.
Two tables
are
for
needed
current
penses."
living
the
shown,
ex¬
A
monthly, income
in
all
one
period
covering the
through July
15, 1943, and the other covering
a
longer period from April 24,
1942, through June 15, 1944.
The
relative
performance of
Barron's stock groups during these
two
periods is shown • together
with the performance of Aces and
from April 24, 1942,
j
the
to
investor
but, through the Keystone funds,
"The
consummation
of
the he enjoys the many other advan¬
merger through the issuance of tages and safeguards embodied in
State
Street
Investment
Corp. the mutual fund form.
at
.
This is particularly true
investment
income
is
gram.
into
fit
and
selling group:
shares
*
monthly income and outgo pro¬
income
in
a
*
*
supplement
Lord, Abbett, in the current is¬
sue of Abstracts discusses the ad¬
other
exchange
an
end, when the business is
on
a firm
peacetime
war's
its purpose
planned investment program
Keystone funds can be made to
Vance, Sanders & Co., under¬ provide
a
check
each
month
writers for a block of shares of throughout the year.
Not only
State
Street
Investment
such
a
Corp., does
program
provide
merger
of shares.
volume; their earnings
expected to begin to bene¬
new
scientific develop¬
until a few years after the
not
fit
therefore best
york
wartime
financial
are
The
Incorporated
before peo¬
their
do
when
the
GROUP,
thinking and planning in terms
to
of
Request
63 wall street—new
ever
a
assets
on
r DISTRIBUTORS
monthly basis.
a
checks
Net
Group Securities, Inc.
Prospectus
jjl&iF
upon them.
"And now—taxes have been put
ple
fund
a Class of
pendent
monthly
$25,000,000,000 in reappropriaTogether with the $27,569,-
monthly
a
the
"More than
investment
on
They pay their bills on a
monthly basis.
"When these investors plan for
at 5:01 P.M.
Street Investment Corp.,
Boston-type
a
income
their
selves—and for those who are de¬
4:47
Merge Trask Fund
States
receive
future, they aim to provide a
the regular monthly income for them¬
at
SHARES
follows:
basis.
on
(D., Tenn.) of the Appro¬
this and the last
.
consumption,
prices
adjourned
as
investors
produce
in
he had before the war,
manufacturer
nu¬
$1,700,000. It is planned to effect
Every
merchant is
conscious of saturation levels in
as
House
The
"Most
$50,000,000, announces that it has
priations Committee revealed.
entered into a agreement for the
The Army Bill, one of the last
acquisition of the assets of Spen¬
to clear both Houses, carries $15,cer Trask Fund, Inc., subject to a
434,814,795 in new funds and close vote of stockholders of that Fund.
tions.
buy the goods that business pro¬
duces. He will have a choice after
supplemental funds for
agencies, including
Office of Price Administration,
x
comments
business
merous
The total
1.
highpr .price, level,, that indusr
trial .costs,, consisting largely of
wages, cannot be cut and, there¬
fore, prices must rise. We do not
journed.
ing
represents aj $47,371,771,467 cut in funds provided dur¬
a
know
on
■
bills, topped by the
War Department
provide $67,192,237,127 in new funds for a long
list of Government agencies dur¬
ing the fiscal year beginning July
be raised, that the
debt,requires
must
-
only
The money
burden of the public
ad¬
promise version of the $245,728,000 second Deficiency Bill carry¬
$49,000,000,000
appropriation,
squandered irrespective of values
and prices in the post-war period.
As against this,, it is said that
prices
formally
chambers would
Mondays and Thurs¬
the
Regarding the legislation passed
the day Congress recessed, the
be
will
adversity
against
and
The last bill passed was a com¬
United Press stated:
pru¬
cleared their
chambers
the
hurdles
tion to about Sept. 1 under a plan
on
.that the carefully
hostages
last
meet
against -a possible rainy day in the
post-war period. It is not reason¬
able to suppose
House and Senate leaders infor¬
mally have agreed on the vaca¬
"Monthly Checks From Your In¬
goal ex¬
the floor
pressed in caption.
The folder
vestment Account" is the
Few members were on
developments
when
days.
desire to fortify themselves
a
vided since June, 1940.
require "legislative expediency."
whereby
STEEL
the total for defense and war pro¬
.
in¬
surplus
absorbing
sponges
and homefront
war
Night clubs and race tracks have
succeeded
silk
shirts
as
the
comes.
the United Press may be extended to
Program
Fast-growing, highly specialized Keystone Custodian Funds (with
total assets of over $80,000,000 held by more than 40,000 investors)
can be presented to
prospects as a "Planned Investment Program"
with the new material currently being distributed to dealers by the
Sept. 1, enables legislators to attend the National
buying binge as soon as
today solely because they cannot
come,
appropriations for the Government's fiscal 1945 operations.
new
The recess, which according to
em¬
goods are available.- It is not true
that such individuals are saving
spend.
A Planned Investment
Congress recessed on June 23 until Aug. 1 after clearing its cal¬
endar of all urgent legislation, including more than $67,000,000,000
part of
will
earnings
current
on
will
aside
Mutual Funds
Agreement For Vacation To Sept. I
balance
the
that
2701
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4294
159
liquidating value will,
group of
companies.
a
leverage
In the earlier
period all groups
advances ranging from a
15.6% -for aircraft .manu¬
showed
low
investment
of
Brevits indulges, in "A Pleasant
facturing stocks
to a high of
Speculation"? based on the current 203.41% for air transport stocks.
toward revision of Federal
In this period Aces showed a gain
fantastic levels in relation to nor¬
prior to the time that it would income taxes as applied to corpo¬
of 109.72% and the leverage in¬
mal output that has characterized
otherwise expire. In order to give rations.
While the
sponsors
of vestment company group showed
The peak year 1916
$800 automobiles. If the price of this war.
adequate notification to the mem¬ MIT have no illusions but what,
a gain of 181.96%.
such cars is raised, the amount showed a level of production ap¬
bers of our selling group in this corporate taxes will remain at a
In the longer period the range
bought, other-things-being equal, proximately 20% above the low¬
event, we have mutually agreed relatively high level for a number
of performance was even wider,
will
decline.
This is a fairly est year, 1911, in the pre-war pe¬ to the termination of our under¬
of years to come, they find it
As against that, a compari¬
fundamental rule of the market riod.
(Continued on page 2703)
writing contract with the State rather pleasant to speculate on the
place and we know of nothing in son of 1943 output with 1938 Street Investment Corporation not
position of common stocks from
rise
of approximately
the war period that has modified shows a
earlier
than
31,
July
1944, or an investment standpoint if and
In spite of the compara¬
or
reoealed it.
Furthermore, in 170%.
later than Sept. 1, 1944, provided when corporate taxes are reduced
terms of available supply and pro¬
tively mild distortion of the eco¬ that the
requisite approval of the and if and when corporate earn¬
nomic machine in the last war,
ductive capacity, it is entirely un¬
Spencer Trask Fund, Inc., stock¬ ings are taxed but once.
*
there
was
nevertheless
a
25%
de¬
likely that manufactured goods
holders is obtained, and that the
A table showing 1943 income
will be offered at higher prices cline below normal levels in 1921.
merger will require the use of
taxes per share and net earnings
than they were before the war., Such being the case in this prior
all of the shares available for sale
after
taxes
for a
number of
Some exception to this statement
experience, how much
greater
leading corporations illustrates
will be the drop in production at that time.
may be granted in the early post¬
the
point. DuPont, for example
war
"As of June 15, 1944, the sale
years
for particular items from a vastly distorted war level
paid $10.98 per share in taxes
on the present occasion.
Such a of shares under our
which are in great demand, a de¬
and had $5.59 per share of net
ijmderwriting
in
mand that cannot immediately be retreat
production does not
contract and those previously sold
income left. International Busi¬
satisfied.
This list, however, is portend rising prices.
A Prospectus may
ness
Machines paid $26.70 per
under the contract of Massachu¬
not long: After all, the American
be obtained from
share in taxes and had $8.35
Ample Supply
setts
public during the war period, on
Distributors,
Inc.,
totaled
per share left. The list contains
This prospect of ample capacity
the whole, has been living as well
211,215 shares.
This left a bal¬
many other examples.
is
further
buttressed
by large
or
better than it did before the
!l!
ance of 16,559 shares of treasury
*
war.
There have been no serious stocks of the principal raw ma¬
Putnam Fund Distributors, Inc.
National Securities & Research
terials
available after
the war and unissued stock available un¬
denials on a large scale. In a fig¬
of manufactured
goods are raised, each, item will
encounter a lower saturation level.
There is a market for just-so many
if
the
prices
sult,
output
reached
never
the
probability, require the
of; our underwriting
termination
agreement
as
of
date which is
a
trend
PUTNAM
FUND
■
cjf
.
urative
the country has
to produce both guns
sense,
been, able
and butter.
.....
/
.
.
-
When
the
amount "of
war
ends,
a
vast
surplus war materiel,
partly useable for peace purposes,
will be available. Estimates range
to $50 billion. The
has developed im¬
facilities for the production
from $12 billion
Government
mense
of
war
goods.
A substantial per¬
centage of these facilities will
available for the production
be
of
peace-time goods.
This capacity
be distress capacity in the
sense
that it would never have
been built under normal circum¬
stances and, being available to¬
day, it represents a surplus capa¬
city far beyond the ordinary needs
of the community. It may become
a
serious competitive factor.
Its
influence cannot possibly be con¬
strued as a stimulating force upon
the price structure.
will
World War
I
Contrast
here
hardly
lack in tex¬
tiles, cotton, wool and rayon. The
metals — aluminum, magnesium,
ber
Surplus Capacity
The situation
ends.
requires documentation. Certainly
there will be no scarcity in,rub¬
or
oil,
will
nor
store
zinc and lead,
its
food
mal levels.
be
certain
are
production to
At that time
we
nor¬
can
that
surplus
farm
products will again present seri¬
ous price problems, definitely not
rising
should
siderations
bear
or
specula¬
these sober
carefully
considering
capacity
and
in
con¬
mind
If he intends
in stocks, let
him be certain that the action is
surplus supplies, it is well to bear
than inflation.
on
other
corporation
"If these
have
shares
not
pre¬
viously been sold, we will accept
orders placed
With
(Boston time),
on
us
until 4
p.m.
the termination
grounds
Corp. devotes the current issue
Investment Timing to a
of
of
Fundamental Investors, Inc.
Directors
The
mental
of
Funda¬
Investors,
Inc., have
quarterly dividend
No. 42 of 22 cents per share
payable on the Corporation's
declared
to
stock
holders
July
of
15,
1944,
record
June
The helicopter
Aerodynamics.
jet propulsion are commented
on briefly.
In conclusion, the article states:
"Current prices of
stocks of lead¬
ing companies in the industry are
and are in line with
reasonable
the
prospective
contraction
in
Incorporated
National
15
Distributors
Exchange Place, Jersey City 2, n. J.
Keystone
Custodian Funds
r—v 4
NATIONAL
i Securities Series i
Certificates of Participation
Trust Funds
in
investing their capital as follows:
Series
B-l, 2, 3 and 4 in bonds
Series
Prospectuses upon request
National Securities &
K-l, 2 in Preferred Stocks
Series
120
HUGH W. LONG and COMPANY
Boston
and
Research Corporation
30, 1944.
50 State St.,
discussion
date."
in
buying securities.
place his funds
justified
by the
before the termination date.
to
fully
additional shares which might
redeemed
~
In
agreement, plus of course,
capital
price problems.
The market investor
tor
our
any
be
we
already
present in amply supply.
Steel
will
present a
serious
surplus
problem. The same point may be
made of capacity to produce food.
The principal agricultural areas
of the world have hardly been
touched by the war.
It will re¬
quire certainly no more than a
year for most of the world to re¬
copper,
der
BROADWAY,
NEW
YORK,
ANGELES,
634 S.
CHICAGO, 208 So.
Spring St.,
La Salie St.
Stocks
(5)
(14)
BOSTON, 10 Post Office Square (9)
LOS
S-l, 2, 3, 4 in Common
(4)
Prospectus may be obtained from
your local investment dealer or
The Keystone Corp. of Boston
50 CONGRESS
STREET, BOSTON, MASS.
THE COMMERCIAL & FINANCIAL CHRONICLE
2702
ment
Four Essentials ( If A Sound
as
worth
of minor importance, "not
breath with which it
the
spoken
was
harmless."
Monetary And Banking System
(Continued fn
No "Typical" Monetary System
At the outset it may be pointed
out that there is no such
tning as
m
page
2690)
But if all four can
had.
be established
within
the compara¬
and
or
some
have
we
restored
never
play
but, on the whole,
...
added
He
devaluation
—
"We
must
which
France's last card—arid
we
is
rriust
play it well!
Is France to be the
only country in the world in
which
mote
fails
devaluation
a
return
to
to
pro¬
prosperity?"
This attitude might be looked for
in the forthcoming conference pf
"typical" monetary system. In tively near future, say in two
countries where various years, or even four or five years, the experts of some 40 nations.
many of the patriarchs
in the
In Great Britain, however, the
types of currencies have been in
field of monetary science, such
use for centuries or even millenia,
then Chancellor of the Exchequer
as
Dr. David Kinley—now 83—
it has been difficult to designate
—Mr. Neville Chamberlain—re¬
a
many
the position of
der
such currencies un¬
of the heads known to
experts in this field. In China, forinstance, at no time has there
been
anything approaching or
corresponding to a real monetary
system, arid to a certain extent
this generalization still holds good
for that country, despite the work
any
Kemmerer Commission of
of the
Financial
Experts
in
1929-30
attempted to bring some
order out of the chaos which has
which
characterized that country's
cur¬
for centuries,t
rency
of a given
country frequently takes on the
pattern of a patch-work quilt, and
grows up, much as money itself
develops, in a haphazard fashion
through the process of trial and
error.
The banking system of a
given country is so closely inter¬
with
and
such
forms
a
definite part of its monetary sys¬
tem that the two, of necessity,
must be considered together. But
unfortunately in the monetary and
banking system of
a
country
many of the "errors" persist, and
f
not selected out or eliminated
are
after the emergency which called
certain types of money and bank
notes into existence has disap¬
This is particularly true
system of the
United States, as is evidenced by
peared.
the
of
monetary
such currencies as "greenbacks,"
Treasury Notes of 1890, Federal
Reserve Bank Notes, silver dol¬
lars, silver certificates, etc., all of
'which
der
called ..into being un¬
were
seemed
circumstances which
to warrant their issue, but all of
which have become redundant to¬
day.
modern
In
metallic
systems
occupies only a
place, and, while a
currency
money
subordinate
certain amount of metallic money,
particularly in the form of frac¬
tional
or
subsidiary
coins,
is
necessary to an adequate mone¬
tary system, such metallic money
accounts for a relatively small
portion of the actual media of
exchange and of payment used in
a
given country or in a given
economic
But at least one
the fundamentals of a sound
of
area.
monetary system has to do with
«uch metallic money as is used in
the
country in question.
What Are the Four "Essentials"?
There
mentals
at least four funda¬
are
or
essentials of
sound
a
and banking system.
Other items Plight be suggested
which would, be desirable in, car¬
monetary
rying out the perfect or quasiperfect functioning of such a sys¬
tem, but these would be, for the
most part, only important corrollari.es to the essentials, or. even
non-essentials in some' instances.
The fundamentals, without which,
In my opinion, no monetary sys¬
tem
can.
be
satisfactory
are
as
follows:
1. An
adequate monetary stand¬
ard.
An elastic hank-note
2.
issue,
issued by a central bank free from
government control and the influ¬
ence of politics.
3.
A
satisfactory
subsidiary
coinage.
A deposit or
upon
Some
.
of
these
have previously
ican monetary
essentials
had in
.
...
,
our
we
Amer¬
and banking sys¬
tem; one of them we have now;
i
Cf., Lee. Frederic E., Curren¬
Banking and Finance in China,
1926, pp. 1-8.
cy,
1
ment of gold into and out of the
country—i. e., no embargoes or exT
change restrictions which prohibit
the free export or import of
gold.
Of these three factors, our "new
gold standard" has only one, No.
1 above.
Our standard units of
value is a unit of 13.714 grains of
fine
pressed
in
terms
of
gold,
was
23.22
standard," he said, "a way of do¬
ing business which has never been
tried before."
But he added, it
will
operate
on
a
day-to-day
basis. It may be canceled by any
of the participants on 24 hours'
notice.
And this
to be
was
con¬
sidered "monetary stabilization!"
titudes
ment
by the
involved.
more
realistic al¬
taken to this agree¬
were
different countries
With
us
it
was
to
be
looked upon as a de novo
ard, "a
tried
was
a
new
stand¬
gold standard—never
before."
But
to
France
it
different matter. The then
Deputy Reynaud, in the debate
upon the original agreement in
the French Chamber of Deputies,
dismissed this stabilization agree¬
These are:
tion, must be a unit of fixed
weight of gold of specified fine¬
ness.
2.
There must be
free
a
move¬
have
been
such
allowed
commercial
as
a
paper,
bond-backed and gold cer¬
a
tificate-backed note issue has be¬
Banks "were
permitted to follow
above.
and
third
tors were
in
of
the
above fac¬
effect from
1878
to
1933 until President
Roosevelt, by
on April 20, pro¬
claimed an embargo of indefinite
duration on gold, exports.
That
order, which was one of a series
Executive Order
of
central
banking
as
those
mentioned
But government competi¬
in
this
field
should
be
tion
brought to a halt by a thorough¬
going
monetary
reform
which
would
eliminate
all
of
our
gov¬
ernment
paper issues.
This is a
matter, however, which should be
of acts or orders which took us handled by Congressional author¬
off the gold standard, as < still in ities and not by an international
effect; If these latter conditions monetary conference.
were
restored, we would be in
Our Subsidiary Coinage Is
position to establish definite rates
Satisfactory
between the dollar and the pound
'
sterling, which is probably
one
of
the prerequisites to more general
currency and
tion.
It
that
exchange stabiliza¬
•
is
not
the
absolutely
standard
essential
unit
under
a
gold standard be coined. A gold
standard might be used,
where other types of money would
be convertible into gold
bars, but
a gold coin standard has the ad¬
vantage that it serves as a sort
of check upon the free spending
of a profligate government. When
gold coin can be hoarded by the
individual, if he loses faith in the
bullion
government's program
it
allows him
to set
or
on
policy,
foot de¬
flationary measures to check the
government's spending,
v
,
We
do have in this
country a
satisfactory subsidiary coinage, if
kept on I truly subsidiary basis
and not over-issued. As
long as it
is coined solely on government
account, and issued only through
the Federal Reserve Banks when
the
other
banks
need and request
of
the. country
it;
our
present
system should work well. For the
past few years, with a Director of
the: Mint, from
of the silver-
one
producing States, there probably
has been some over-coinage of
fractional silver, but this has been
due. probably to the desire to use
up more of the domestically-pro¬
duced silver, bought by; the gov¬
ernment
from
American
pro¬
ducers at the subsidy price of
7L110 per. fine ounce. The Presi¬
apparently
still
has
the
Our second essential is that of power*, under the Gold Reserve
An
an
by
Elastic
Bank
Note
Issue
elastic bank-note issue, issued
a central bank which is free
from government control and the
influence of politics, If the vol¬
dent
Act of Jan, 30,1934, to devalue the
silver in the subsidiary, coins to
the
extent that the gold dol¬
devalued,, but such a step,
for the purpose of making a paper
to expand and contract with the "profit,"
might seriously inter¬
needs of industry and trade then fere with the present
fairly sat¬
some form of elastic note issue is
isfactory condition of our subsid¬
ume
lar
same
was
of currency in a country is
important.
As Alexander Hamil¬ iary coinage., This power should
wisely pointed out in the be done away with "at an early
before
early days of our monetary his¬ date
some
executive
tory, while advocating the estab¬ might be tempted to use it.
ton
lishment of the First Bank of the
United
States,
What of Our Bank Deposit
ment undertakes to
from government control and the
influence of politics."
I have shown in
a
recent article
Currency?
One'Of;, the principal functions
of our commercial banking system
is that of furnishing a bank de¬
positor check currency, which is
principal medium of ex¬
change and payment. On Dec. 31,
1943, total deposits, in the 13,274
our
insured
banks
amounted to
counted.
Another
Federal
i.e., free and
of gold (althought coins might be confined
to those of large denominations)
and convertibility of other types
of money into the standard (into
bullion or coins), and the free use
of gold currency or bullion ob¬
tained from melting gold coins or
never
Reserve
Banks
our
have
followed these fundamental
principles, and how freedom from
such
political
domination
and
control as does exist might be
secured. But if any central bank¬
FDIC
$19,200,000,000
individual
and corporate deposi¬
the principal circulating
currency
in our monetary and
banking system.
Coming into being as it did, out
of a system or lack of system of
tors,
as
"wild-cat
banks,"
almost wholly
controlled, our
banking system had to have some
unregulated
of control extended to it*
measures
But
or
have already gone much
too far in this respect. We regu¬
late by law matters of bank prac¬
we
tice which in other countries
selves in their
why
the
represented time and savings ac¬
counts, not usually subject to
checks. But this leaves some $74,000,000,000 of demand deprisits
subject to check in the hands of
handled
and
in
The sum of $10,-
700,000,000 of these were inter¬
bank deposits and should not be
Chronicle,"3
how
\
$104.115,777,000—an
all-time record.
in the "Commercial and Financial
ment of gold into and out of the
currency system—
unlimited coinage
bonds
substitute for
ond
agement and policy should be free
The standard unit of valua¬
periodically renewed, government
suchf fundamentals
.
1.
gold and
were, upon
grains of fine gold, or 25.8
grains of standard gold. The sec¬
.,.
standard.
they
as
commercial paper, but since, un¬
der the Glass-Steagall Act of 1932,
perversely elastic, as was
gold, or 15 5/21 grains of
gold, nine-tenths fine. For ap¬ the case with our national bank
notes.
Real elasticity could be
proximately 100 years—1834-37 to
1934—our
monetary
unit,' ex¬ restored, however, if the Reserve
,
France would be on "a new gold
standard."
"It is a new gold
based
come
when a govern¬
supply paper
currency the tendency is to over¬
issue and to keep the issue in cir¬
culation indefinitely, without any
reference to the changing heeds
of the country for a currency
supply. With banks issuing their
bank notes, on the other hand, he
pointed out that they, being near¬
er to the pulse of commerce and
industry, and having the respon¬
sibility of redeeming their notes
Commerce" stated:" 'Stabilization'
post-war world will so quickly when
presented, would make their
of world currencies — what does
restore the confidence of the pub¬
note issues more truly elastic.
this
comparatively
new
term lic as a true gold standard," Why
But if a central bank is to have
mean to the average mind?
And aren't Eric Johnson, of the United
the power to issue notes for a
'devaluation' which is not in the
States Chamber of Commerce, and
country, it should follow certain
dictionary?
A n d 'stabilization Dr.
Kemmerer, whose positions
fund'., which had
never
been on sound monetary developments general precepts for sound cen¬
tral banking. Two of these were
heard of until 1932, a short time are
known, on the current body stated some time
ago by Sir Er¬
after
that
momentous
autumn
of experts assembling at Bretton
nest
Harvey, then Comptroller
when Great Britain retired from
Woods, New Hampshire?
Prob¬ and later
Deputy-Governor of the
the gold standard?" These terms
ably it is because their position is Bank of
England, as follows:
have become more familiar in the
known that they are not included.
"1. A central bank should have
intervening years but we will be
My
"adequate
standard"
is, the exclusive right of note issue
hearing much more of them dur¬
ing the coming weeks and months. therefore, a real gold standard, (for the country in which it oper¬
Mr; Morgenthau told us in 1936, embracing three factors,, all of ates). (Parentheses added by the
which are considered essential to writer.)
that beginning with Oct. 13, the
the proper maintenance of such a
2. A central bank in its man¬
United States, Great Britain and
Different and
check currency,
bank deposits in a
free banking system.
4.
based
ferred to the agreement as a step
ident, emeritus, University of Illi¬
looking toward "the eventual res¬
nois, and others not quite so old toration of the
-only monetary
but emeritus professors in their
standard that inspires real confi¬
respective institutions, such as
dence," a true gold standard. That
Professors O. M. W. Sprague, of
language sounds very much like
Harvard and Edwin WV Kem¬
the recent pronouncement by the
merer, of Princeton, can spend
United States Chamber of Com¬
their remaining years in the real¬
merce on May 1,
last, when its
ization that their labors in be¬
statement included, among other
half
of
sound, monetary and things, ".
The, gold standard
banking systems have not been is the
only international mone¬
in vain.
All of these men, and
tary standard which has com¬
several
others
who
might be
manded any gerieral acceptance
mentioned, are without question and
any restoration and main¬
recognized as experts in the aca¬ tenance
of a satisfactory standard
demic and in the financial world,
are dependent upon the develop¬
yet some of them, who are still ment of
confidence, the balancing
going strong* -are conspicuous by of
public budgets and the ultimate
their absence in the galaxy of
removal of restraints upon foreign
near-experts or so-called
"ex¬
exchange."
perts" who are being assembled
A few days before, Dr. Edwin
to work out the kind of mone¬
W. Kemmerer, referred to by the
tary and exchange stabilization
New York "Times" on May 12, as
which happens to strike the fancy
"one of the world's leading mone¬
of those who are responsible for
tary authorities
who has prob¬
our present monetary policy.
ably been called in by more gov¬
ernments than any other living
An Adequate Standard
man to help set their currencies
In other periods of attempt at
on a stable basis," was testifying
monetary stabilization such as at
before a Congressional Commit¬
the London Economic Conference
tee in Washington.2 Quoting from
in 1933, and in the "Tri-partite
the Macmillan Committee Report
Agreeirient" between Great Brit¬ of
England, he said, "'There is,
ain, United States and France,
perhaps, no more important ob¬
announced by Secretary Morgenject in the field of human tech¬
thau on Oct. 12, 1936—Columbus
nique than that the world as a
Day, a bank and stock exchange
whole should achieve a sound and
holiday in many American cities
scientific monetary system.
But
—questions as to what might be there can
be little or no hope of
the ultimate monetary standard of
progress at an early date for the
the countries involved have come
monetary system of the world as
to the fore. But in recent years
a whole, except as a result
of a
such questions have been con¬
process of evolution .starting from
fused .with
the introduction ,of the historic
gold standard'." Pro¬
new terms and concepts. Early in
fessor Kemmerer then gave as
October, 1936, I told my classes one
of his own comments the fol¬
in money arid banking that they
lowing statement: "The first re¬
should be prepared for. a dramatic
quirements of any post-war mon¬
move at any time in the mone¬
etary standard that can be wisely
tary area, one that might be al¬
adopted internationally and main¬
most, if riot as important as the
tained for any considerable time
original change in the gold con¬
is that it shall have the confidence
tent of the dollar. Furthermore, I
of the people. Like Ceasar's wife,
added that, due to the penchant
the standard should be above sus¬
of the present administration for
picion. To this end it should be
making "surprise moves," it might
simple and be a development out
come suddenly and at any time.
of a long, common experience.
A few days after the terms of
The people distrust what they do
the Tri-Partite Agreements were not
understand
No other kind
released, the Chicago "Journal of of currency system in a distracted
...
The monetary system
woven
Professor of Economics and Pres¬
Thursday, June 29* 1944
by
the
bankers
are
them¬
practice and expe¬
working out a sound
banking tradition, such as, for in¬
stance, the amount which can be
lent to one borrower; the percent¬
age of reserves the banks must
keep with the central bank; the
time loans may run or the ma¬
turity
dates; of
rediscouritable
items, etc., etc.
In the old days
rience
of
ing authority is to be entrusted
the task of creating and
maintaining a truely elastic bank¬
note issue, then government is¬ the "French used to be amused at
bullion bars in the industrial arts. sues of paper currency should be us in this respect. They said we
Reserve had more banking restrictions and
3.
There must be free move- removed. Our Federal
Notes were designed to be elastic, regulations by law than any other
2. See "Commercial and Finan¬
country; in the world yet we had
3 "Our Post-War
cial Chronicle" for Thursday, May
Banking Sys¬ also a higher percentage. of bank
tems?" in issue of June 15,1944.
failures, suspensions, and other
14, 1944.
;i•
,
■
fnt
*i
«.
i
\
,,i,•
f
>
with
THE COMMERCIAL & FINANCIAL CHRONICLE
difficulties
banking
.
than
any
Mutual Funds
other, country.
A "free" banking
Cincinnati S, E. Plan
system, re¬
(Continued from page 2701)
ferred to above, would not neces¬ with aircraft manufacturing stocks
i
sarily mean a system freed from
all regulation and control,-but a
.system of free enterprise in bank¬
ing, where the bankers; them¬
selves, in the light of sound bank¬
ing tradition, might be free to
work out their own policies and
build up, out of practice, a bank¬
ing tradition and practical meth¬
odology which would contribute
an element of strength, to our fi¬
nancial set-up*
A fir^t. step in
making this possible would, be to
get or take the government itself
out of banking, particularly
in
the field of production and inter¬
mediate credit, allowing the rural
showing a net decline of 10.35%
as against a gain of 252.33% for
the rubber stocks. In this period
Aces
.
bank
to
be
the
chief
each
change
essentials
of
The
"their
News,
memorandum is
accompa¬
nied by an unusual chart showing
the
relationship
between
steel
stock prices and the market aver¬
major advance
during the past 10 years steel
stocks lagged until near the fend
of the upward move.
But once
the steel stocks got going they
advanced in every case more than
In
ages.
perhaps
a
Steel
substantial."
twice
monetary reform will come
in the early post-war period.; It
is to be hoped that such reforms
or changes as are brought about
will not ignore such fundamen¬
or
market," writes Dis¬
next
upward has been sharp and
move
even
tals
of
every
fast
as
as
the market
aver¬
ages. The memorandum concludes:
"This is the first opportunity
in
the
past five
years
to
buy
the steel stocks after they have
lagged for
.sound
the
monetary and banking system as
have been enumerated here. The
The
a
long period behind
market."
*
'
*
*
Securities
and
that
it
had
declared
on
..
a
plan of the Cincinnati Stock Ex¬
change for "special
offerings."
The effect of the action taken by
the
Commission, said the an¬
nouncement, will be to exempt
Prospects
Generally Favorable
The
Bank
office,
made
with the plan from rules of
•
■
*
*
„■
*
*
-
conditions
covered,
all
in
of
the
sections
*
We give below the gen¬
ducing purchases
on
$
vices
from
said:
the
.
Winnipeg
also
<
"The Cincinnati Stock
By BStUCE WILLIAMS
Exchange to file and to have de¬
clared effective by the Commis¬
plan for special offerings.
Cincinnati Stock
Exchange is generally similar to
the plans heretofore declared ef¬
a
The plan of the
fective
for
the
London, England
Exchange
is the seventh National Securities
sion
Vancouver
Canadian Securities
The ad¬
Commission
New
York
Stock
The much delayed 1944-45
budget has at last been brought down
and, generally speaking, contained no great surprises. The overall
picture is encouraging.
From the domestic angle, the suspension of the compulsory
savings feature of individual income tax will give welcome relief
in the lower wage brackets. From the external angle, the
lifting of
the
bai^on a long list of Americans*—■—
imports
following the
easing
——
•
of
the restrictions
on Canadian travel
Exchange, New York Curb Ex¬
in this country gives ample proof
change, San Francisco Stock Ex¬
of the Dominion's strong foreign
change, Philadelphia Stock Ex¬
change, Detroit Stock Exchange exchange position and demon¬
and the Chicago Stock Exchange. strates that Canada, even without
the assistance of the Hyde Park
"The Cincinnati plan, like that
Agreement, can stand firmly on
of the Chicago Stock Exchange,
her own feet. It is also a clear
contains certain provisions relat¬
indication that Canada is going, to
ing to offerings of stocks traded
make proper use of her position
on
that
exchange
which
are
as a leading creditor nation, and
neither listed nor have a primary
realies that in order to sell abroad
market on a New York exchange.
she must also deliberately increase
In offerings of local stocks, the
her volume of imports.
Cincinnati
tions, be first allocated to the of¬
feror'to fill subscriptions for the
account of his customers."
Efat'l
j
>
•»
Library Ass'n
Elects New Officers
' *
.
.
light. Following some
sociation.
damage by late" frosts, it would : N. B,—As this goes to press, my
Election of Mr, Hausdorfer as
the
Stock Market
appear that the yield of apples friend with
President of the Association was
and strawberries .will ;be. lower, jPrice; Trend
Indicator,
reports
than average.
'Root crops Show that for the first time in many previously reported in The "Fi¬
nancial Chronicle" of June 22.
progress, but
growth has been months he has gotten a downL
CANADIAN BONDS
GOVERNMENT
PROVINCIAL
i
MUNICIPAL
CORPORATION
Looking towards the future,
the encouraging conclusion can
be drawn that the close eco¬
nomic relations which have been
so
CANADIAN STOCKS
successfully maintained dur¬
ing the
In
will
war
into the
post-war
be
extended
era.
quarters, the unusual
delay in presentation was inter¬
preted as possibly indfcating that
some announcement of profound
importance touching on the in¬
triguing problem of the Canadian
dollar might be made, especially
in view of the impending Inter¬
national Monetary Conference at
some
Bretton
Walter Hausdorfer,
Librarian,
May 31, 1944, the net assets Bchool
of
Business,
Cdlumbia
of recent good of Maryland Fund were $6,302,904,
University, was elected president
; rains;pyeF mostdf the' prairies; Of which 15% were invested in
oiythe Special Libraries Associa¬
crop: prospects / generally are," fa¬ bonds, 76% in common and pre¬
tion, succeeding Eleanor S. Cavavorable. The' moisture supply is ferred stocks and the remaining
naugh, 'Standard & Poor's Corpo¬
now adequate for the present, ex¬ 9% in cash.
ration, New York, at its Annual
cept in extreme west-central Sas¬
Business Meeting here on June 21.
Mutual Fund Literature
katchewan and east-central and
Herman H. Henkle, Director,
Lord, Abbett—Revised portfolio
south-eastern Alberta where fur¬
Processing Department, Library
ther precipitation is needed. Else¬ folders on Union Common Stock
of
Congress,
Washington,
was
where crops are, on the whole, Fund A and Union Common Stock
elected First Vice-President suc¬
Selected Investments
well-stooled and healthy. Early- Fund B..
ceeding Walter Hausdorfer; Jean
sown wheat is entering the shot- Co.—The current issue of "These
Norcross, Librarian, Dun & Bradblade stage.
Weed infestation is Things Seemed Important." . . .
street's, New York, was elected
heavy in some districts and in¬ Keystone Corp.--An issue of Key¬
notes discussing the monthly divi¬ Second Vice-President succeeding
sects have been active, but little
dend checks available under that Phillips Temple, Georgetown Uni¬
damage is reported. Pastures are
versity, Washington; Mary P. Mc¬
in good condition in Manitoba and sponsor's new planned investment
Also a memorandum Lean, Librarian, American Bank¬
Saskatchewan and have improved program.
ers Association,
New York, was
in Alberta. In .Quebec; seeding containing instructions to dealers
elected Treasurer succeeding Jean
and planting, have been practical¬ with regard to the program.
Norcross, and Dr. Mary Duncan
ly completed under favorable conDividends
Carter/ Director, Graduate School
<d i t i o n s, but germination and
of Library Science, University of
Massachusetts Investors Trust—
;
growth' have; been slowt owing to A dividend of.24 cents
Southern California, Los Angeles,
per share
\. lack of moisture. /, Pastures and
was elected Director.
payable July 20,: 1944, to share¬
hay. lands have alsa suffered and
Mrs.. Kathleen B. Stebbins was
holders of record June 30.
; it would seem that the. hay crop
reappointed Secretary of the As¬
#
*
£
will be
■
Montreal
Street, New York 5
the Exchange
under certain conditions.
On
eral summary:
*'
"As the' result
Toronto
prohibiting the
payment of compensation for in¬
of Jam
Of Montreal, • head
'<
Total net assets of Massachu¬
public on June 22,
setts Investors Second Fund on
a
brief synopsis of telegraphic
May 31, 1944, were $10,202,439,
crop
reports received from the
compared with $9,623,705 three
managers
of its branches, who
months earlier.
The number of
have knowledge of each local sit¬
shares
outstanding during this
uation and are in touch with crop
period rose to 962,746.
Incorporated
14 Wall
Commission
1, 1930, is now able in offerings of local stocks
slightly in the black, the Dow- by the offeror on a principal basis,
Jones Industrial Average in the a maximum of 25 of the offered
same period is: off 101 points.
stock may, under certain condi¬
Canada Crop
as
Wood, Gundy & Co.
/
distributions conducted in accord¬
,
Street
BUY MORE THAN BEFORE!
June 25
effective
Broad Street Investing Corp., as
pointed out in the current issue
but, in my, opinion, the restora^ of Items, has now recovered in
plan permits a higher
tion or the primary establishment price to the point where the cur¬ scale of
special commissions to be
of these fundamentals are steps rent bid price (plus profit distri¬
paid by the offeror and permits
that should be taken with the butions) is higher than the Jan. 1,
offerings' of smaller blocks of
.least possible delay.
1930, offering price.
While the stock. Also, in the event buying
/: y "t.
stockholder who purchased Broad orders exceed the amount avail¬
methods apd the final results may
not be the ones' I have indicated,
Back the Attack!
Exchange
Commission announced
the
*
tributors Group in the current is¬
sue
"Special Offerings"
Declared Effective
ance
s*
"When steel stocks have lagged
source;, of
or
the
and
case.
behind the
free economy.
Monetary
132.43%
#
meeting the credit needs of agri¬
culture and the rural community.
A continuation of present trends
might drive us into 100% reserve
banking, with the. government
doing all the lending and taking
its losses out of taxpayers' money,
allowing the banks to perform
only the function of furnishing a
deposit
currency.
This
would
hardly be a free banking system
or a
advanced
.
leverage investment company
group rose 206.64%.
The point is emphasized that
although the performance of the
individual
stock
groups
varied
widely in the two periods, Aces
performed well in both, being
among the top five performers in
For
more
Woods.
than
a
This
was
A.E.AME5&CQ.
INCORPORATED
TWO WALL STREET
NEW YORK
5, N.Y.
never
NY-M045
RECTOR 2-7231
very remote possibil¬
ity, and the reason for the delay
was the preoccupation of the; De¬
partment of Finance with the re¬
vision of the Bank' Act.
However, it might be well to
consider at this point the grow¬
ing feeling in financial circles
that
the
restoration
of
Canadian dollar to parity is
just around the
Although it
that
the
now
corner.
appears
inevitable
conditions become
as soon as
normal,
Canada's strong
creditor position will be reflected
in the foreign exchange market,
it is unlikely that the forthcoming
more
.
discussions at Bretton Woods will
precipitate
sion
of
more
any
immediate revi¬
currency values.
Little
be expected from this
can
meeting than
a very broad outline
of intentions and a general airing
of the
many
national views.
sponsible for the proper working
of any resulting currency scheme.
To revert to the immediate pros¬
pects with regard to the Canadian
dollar, it is a possibility that any
decision to restore
Canadian
the
dollar to parity will be postponed
to the post-war period. The Do¬
minion would be wise in any case
to
make
after
the
sure
war
that
its
would
economy
be
able
the equally vital question of the
tariff intentions of its customers.
With regard to the market for
the past week, there was a further
slight weakening of prices, but
the
slightly lower levels induced
investment" demand,
thus
creating a healthier undertone.
some
The composition, of the delega¬
tions would also indicate the pre¬
Both
in
Canada
,
and
in
slow.
Recent
practically completed and prog¬
ress is
satisfactory in most dis¬
many districts. " In. Ontario,, crops tricts.
Hay and pasture lands are
continue to make rapid progress in
good condition, except in sec¬
under satisfactory weather condi¬ tions of New Brunswick and Nova
tions and the outlook generally is Scotia where lack
of moisture has
tional
moisture
is
required
in
promising. Fall wheat and spring
grains are developing well and
good yields' are indicated, al¬
though in a few districts heavy
rains, have caused considerable
lodging. Haying has commenced
and a heavy crop of good quality
seems
assured in most
areas.
Corn
affected growth. Further rain and
warm weather are required.
In
Prince Edward
N. J. Municipal
(Continued
on page
2704)
York Stock Exchange, have pre¬
statistical handbook for
New
Jersey
municipal
bonds.
Copies of this interesting hand¬
book may be obtained from Ira
Haupt & Co.
pared
Island, conditions
generally promising. In Brit¬
Columbia, prospects for tree-
signal
fruit and small-fruit crops gener¬
index.
ally continue good.
June
are
ish
Field
crops,
Handbook
Ira Haupt, 111 Broadway, New
York City, members of the New
Fifth War Loan
a
on
the
The
intermediate trend
signal
was
given
on
27,
and while it does not
preclude another week or 10 days
while late, have been much im¬
progressing. favor-: proved by recent warm rains. The of further
advance, by past indi¬
ably. In the Maritime Provinces, irrigation water
supply" is con¬ cations it puts the market on the
seeding and, planting have been sidered sufficient."
defensive beyond that point.
and roots
in any case, will be directly re-
rains should' prove
beneficial to all crops, but, addi¬
Buy More Bonds Than Before
Taylor, Deale
&
Company
64 WALL STREET, NEW YORK 5
are
this
country,. after a short period of
liminary nature of the discussions, doubt, there was a disposition not
and it is hoped that whenever to attach too much importance to
binding decisions are made at any the results of the recent Sas¬
future conference, our representa¬ katchewan elections, and even to
tion will include bankers of prac¬ believe that the situation has been,
tical international experience who, clarified in such a way that con-
.
.
to
sustain its currency at parity, and
also to be better informed as to
•
WHitehall 3 -1874
<)
THE COMMERCIAL & FINANCIAL CHRONICLE
2704
ment of the immense sums due us
Great Britain, and that re-
^
Should The United States 60 Into f
from
payment should not be made to
depend on whether other coun¬
tries repaid to England what she
(Continued from page 2690)
As for the Balkan States in gen¬
eral, it is not too much to say that
they have been to the rest of
Europe what Ireland has been to
England for centuries, a hotbed
of trouble. Their utter .failure to
among themselves in the
hour of victory, in 1912-13, when
agree
against their
successful
common
in some commonwealth
of European countries. No doubt
this will not always be the case,
tant power
by
great people, and have
extraordinary powers of
a
shown
But
of
thinks
one
no
any
in the
longer
"the
arbiter
revival
and
recuperance
past.
The French have
means.
any
been
France
as
of Europe." The Third French Re¬
Turkey, robbed them of
semblance of good sense or public has not been a kind of
self-control, and cost them the re¬ government which one can speak
of with anything but the deepest
spect of the world. We pass on
regret, if not with much positive
to others.
shame.
"Unstable as water, thou
Russia and Poland: What may shalt not excel"
applies as much
truthfully be said of two other to France as it did to the oldest
nations which, today, loom large son of the
patriarch Jacob.
in the eyes of so many, namely
The remaining nations: Thus, so
Russia ' and
Poland?
The first
far as our thoughts turn toward
thought that occurs to us is that
at this very time they are them¬ anything like a desirable political
selves on very bad terms with compact with the nations of Eu¬
each other. At the close of the rope, we are left to consider the
last World War they presently be¬ following: Brave England, brave
little Holland, Belgium and Switz¬
came engaged in terrific encoun¬
ter, not far from the very gates erland, with the northern group,
Sweden and Denmark.
of Warsaw. Throughout the whole Norway,
of the 19th Century, the people of We do not forget either Ireland
enemy,
any
,
looked
Poland
kindly
but
anything
Russia with
upon
To
eyes.
scarcely a whit bet¬
other two robbers,
Prussia and Austria.
Going still
further back in Polish history,
them she was
the
than
ter
Century, Poland was
into the 18th
outstanding example of inter¬
nal
confusion, unrest and dis¬
order.
Her constitution of that
an
day was probably the worst in
Europe. But what about Russia?
Today it is unfashionable to even
suggest anything to her discredit.
Did we think this way four or five
But Ireland is
Czechoslovakia.
or
such very poor terms
wtih her
other partners in the limited Com¬
monwealth ofBritish nations, that
on
she
does
for *
offer
not
much
chance
with
foreign
countries of any sort. She is sel¬
dom
at -peace
with
herself.
Czechoslovakia is so very recent a
cooperation
creation,
and
relations with
strained, or
her
Poland have been
so
In her war with little
Finland of that time, where did
ago?
years
place our sympathy? When in
we
at least
cool, that it is not safe
much hope on her as a
good partner or comrade in world
politics.
pin
so
very
We pass on to Holland
and Bel¬
gium.
It might be thought that
these two little countries, having
their
most
Evidently, the money which
advanced
we
the
in
World
First
War has gone
forever, to say noth¬
gifts' or loans of very
ing of
our
recent
date.
More
than
this, there are dis¬
turbing signs of future trouble
with Great Britain. Our huge* in¬
crease
in
spects
war
shipping, both as re¬
ships and merchant
awakening unfriendly
observation in England. Britannia
has so long ruled the waves that
the possible rise of another and
greater
naval
power > gives
to
thoughtful and patriotic English¬
men
the deepest concern.
Still
further, English bankers and mer¬
chants must realize that, with such
vessels,
is
national
a
debt
before, she has lost her
proud position of being the cred¬
itor nation of the whole world. In¬
stead of annual dividends
running
to, perhaps, 200 million pounds,
coming into England for the ben¬
up
efit
of
Englishmen, as in days
gone by, nothing of the sort is to be
looked for in the years just ahead.
England must expect to occupy a
different
from
position
what
past.
If
ship
with
offer
in
the
what has she to
of positive ad¬
her,
the
future,
held
to go into partner¬
we are
in
the
in
has
she
The two partners
dictatorship, and her
those of commun¬
ism; that she dislikes, and per^
haps despises, us Americans as
bourgeois? Her government has
been
fierce
of the
Russian Church; only recently has
she declared for religious free¬
a
dom.
She
is
persecutor
far
as
removed
as
Hitler is from such fundamentals
as
freedom of the press,
of
freedom
enterprise, and
free
speech,
freedom of thought. The heritage
of thought and custom from the
days
and
Czar is
of the
is
different
as
alive
today,
from
every¬
Americans hold dear, as
can
well be imagined.
Let the
pressure of the war be removed,
and we are likely to be on almost
thing
as
we
bad
terms
with Russia
our
as
worst enemies could desire. Forty
years ago,
deadly
Russia and Japan
enemies.
But
how
were
does
Russia stand in this matter today?
Just now Russia stands in great
need
war,
American
of
munitions
of
American money, American
The Germans are hardly
trade.
driven off her soil.
But when the
picture is changed, will not the
observation
of
the
late
Colonel
House, writing to his friend Presi¬
dent
Wilson
in
August,. 1917, be
applicable?
Col. House
entirely
then said:
"As long as we have money to
lend, those wishing to borrow will
be agreeable, but when the bot¬
tom of the barrel is reached, it
different story."—(In¬
timate Papers of Col. House, Vol.
2, p. 112.)
may
be
a
France:
As this letter
written, France
is
so
is being
low
down
in her fortunes that it is hard to
speak of her at all
as
an
impor¬
conflict.
ual
to
sary
rather
So it became
create
weak
neces¬
and
small
two
States
out
of
what
might have been one fair-sized
country. Does an episode like this
inspire one with hope that either
country could cooperate in a com¬
bination
with
people
like
us
Americans, who have so little in¬
telligent and sympathetic under¬
standing with the traditions and
Passing
on
now
to
England, we find ourselves on
very different ground. Here is a
great people, of our own language,
and
from
ited
whom
much
so
we
found that it
was
our
easy
good terms with her?
went to
war
5
4.
securing
Texas
to live
In 1812
on
to prevent our
as
almost
ready to recognize the
Southern Confederacy, being pre¬
vented only by the opposition of
a portion of the Ministry.
As late
as
President
Cleveland's
Administration,-
Second
relations with
England were anything but cor¬
dial over the question of Venez¬
uela. During the World War, she
was
glad to receive, first, our
our
money, and then our military and
naval aid.
But as soon as that
ended, we had the utmost dif¬
ficulty in bringing about anything
war
like
a
financial
settlement
with
her for the money we had loaned.
Both of
political parties were
believing that we
should not forgive or excuse payof
a
our
mind
in
;
■
lack of knowledge—such could not be
expected. Usually the
recalcitrant, obstinate investor that the conscientious securities
salesman
they
runs
against
up
successful
are
is
school
this
type who believe because
doctors, preachers or business
very
teachers,
that they KNOW HOW TO TAKE CARE OF THEIR MONEY.
men
It is safe to say that THEY DON'T.
Yet these people need conscientious
other
any
rather
type
than
of
investor.
have
They
-
,
even
than
more
psychological complex
knowledge.
Most of them know they
they become suspicious of advice given to them by
basic
a
;
guidance
lack
a •
of
don't know, so
others.- They use, their
outer bravado and unbending stiffness as
intelligent enough to understand that gulli¬
bility in regard to their investments might be very costly.
Since it is the job of an efficient securities salesman to render
a
service to every investor that comes within his province it goes
without saying that this type of investor must be SOLD.
They will
not buy securities unless they have become convinced of one thing,
a
protection—they
are
,
and that
WITH
sums
is THAT THEY CAN RELY FULLY UPON THE PERSON
WHOM
THEY
ARE
again in the
up
Since
of
most
history
case
these
of how
GOING
cases
run
salesman
one
may serve as a
guide to the
proper
of
nature.
arise
similar
a
TO
DO
So
BUSINESS.
it
all
word CONFIDENCE.
one
situations
true
to
mold, the following
type of customer
sales technique whenever future
a
handled
this
Originally, the salesman made the acquaintance of this customer
through the recommendation of a friend.
He received a telephone
call
one
day asking him if he could sell a few hundred shares of
low-priced over-the-counter security for this customer.
He consummated the sale, sent
confirmation, and made a small mark-up.
The customer questioned the price she received almost immediately
as being too low.
The salesman pointed out that it was a fair price,
a
but
i
NOT
GO ON THE DEFENSIVE, OFFER TO CANCEL
OR REDUCE HIS PRICE.
It was finally accepted
and the transaction was completed over the telephone and through
DID
THE
TRADE,
the mails.
.
the
on
invite
-
;
Several
times
during the next year he would call this client
In fact, he never made a personal call, but DID
telephone.
her
the
to
of
the
this:
to
outlook
We
have
for
associates, the two
and Sweden,
Denmark; and land¬
us
of
locked
European
down
Norway
Switzerland.
Let
us
not
forget that Norway and Sweden
parted company from each other
some
40 years ago.
They pre¬
ferred to live apart, or at least
Norway was anxious to manage
her
own affairs by herself.
But
they wished to join us, would
if
such
combination
a
while?
Would
any
be
worth
of
one
mark,
Norway, Sweden,
Switzerland, think
ously
of
group,
such
arrangement as
the
big Western
the
seas?
The
Den¬
seri¬
unbalanced
an
a
the
partnership with
Republic across
inequality would
so
glaring—glaring as to size,
wealth, population and capacity.
If
you
think
have drawn
we
a
more
•
office.
of
pleasure to this investor-^-sbe stopped arguing.
a
of this -sort of effort the salesman finally *
day, and out of a blue sky this investor told
about $5,000 in a real estate mortgage. ,
the first time real estate mortgages had ever been- dis--
After
exam¬
our
almost;^ year
received
a
him
wanted
she
This
was
call
one
invest
to
Sensing the fact that someone probably had sold an idea
ONCE AGAIN AGREED.
Surely he could try .
and find a good first mortgage BUT SHE MUST BE PATIENT, ,
THEY
WERE
HARD
TO
FIND, IT WOULD TAKE SEVERAL ,
WEEKS.
She didn't mind and said go ahead.
The salesman did,
cussed.
the fair lady he
to
try, but it was difficult to find one that would meet her invest¬
requirements.
After several weeks he called up and askedfor more time—he said he found one mortgage but that he had to,
ment
act
that
fast
so
it
into them he
chance to send her-
before he had a
gone
but after he looked '
THEY WERE NOT FOR HER.
By this time our.
saw
"know-it-all"
was
There
information.
the
investor
were
was
others,
several
beginning
to
her
wear
own
patience-
pretty thin and finally she said:" "You know, I think maybe I could,
do just about as well with those bonds you told me about several
weeks ago.
WHAT DO YOU THINK?"
From there on, the sale was made, the customer became an in-,
vestor, and the salesman now has an account.
She WAS SOLD,.
BUT TO THIS DAY SHE WON'T ADMIT IT.
WHO SAYS A SE¬
CURITY SALESMAN DOESN'T EARN, AND ISN'T ENTITLED TO:
BREAD
HIS
AND
STIPEND, WHAT-.
KEEP, AND HIS WEEKLY
EVER IT MAY BE?
sober picture, is it not worth
while, none the less, to scrutinize
it closely before .we make any
.
very
commitments?
teach
History
something.
yesterdays pupil."
us
ought to
"Today is
WILLIAM A. ROBERTSON.
East
Calvin Bullock Dead
Calvin
head
Orange, N. J., May 30,1944.
City, and in principal cities in the
United;. States, Canada and Great
Brazil Dollar Bonds
Britain,
on
New York Hanseatic Corp., 120
Broadway, New York City, have
issued
an
Brazilian
sing
the
Mr.
who
Bullock,
President
of
most
pertinent
ver,
several
was
also
investment
lished
Ames,
Emerich
South
La
Salle
on
illness.
and
&
of
Executive
Co.,
23rd
Inc.,
of
105
Chicago.
after
a
1911.
provinces was con-
siderably restricted, Nationals and
Ontarios
mand.
very
the
in
were
The
internal
issues
free
Canadian
9y8%
to
9%%.-
D.
are
Max O. Whiting,
Any further
depreciation in the rate, however,;
should
precipitate further buying
officers of the
corporation, Howard
Biscoe, Jr., Chester C. Spring,
and William Chisholm.
appear
attrac¬
cheap
exchange is available.
Robert
Arnold, E. Ellery Bright, Jr.,
predecessor
M.
the
Weeks, John O. Stubbs, Warren
Henry B. Rising,
the
peak level
tive investments whenever
S.
>
<
were ;
dollar in
Street, is now doing business as
firm
-
quiet following the easing of.
of internals which
of
de-
renewed
"free" market from its
BOSTON,
MASS. — Whiting,
& Stubbs, 36 Federal
Partners
be ex¬
Although activity in the issues;
Weeks
partnership.
-
of the'
the part
pected.
of
a
He had been with
the company since
American
Now A Partnership
Which
Director
Street,
June
other
in
contained
Marshall Forrest Dies
Forrest,
fffms
cities, Canada and England.
be had from the firm upon
Marshall
From there he estab¬
on
Dominion government can
of the western
on
request.
Vice-President
Colo.
(Continued from page 2703)
structive action
heart ailment
trusts, began his career in the in¬
the two plans are also
the circular, copies
died
a
vestment business in 1894 in Den¬
circular on
Bonds, discus¬
in
long
of
interesting
Interesting comparative tables
111.,
died
June 22, at the age of 76.
Dollar
data of
the two plans offered to holders
for the readjustment of the issues.
may
of
Canadian Securities
founder and
the .investment banking
Bullock,
firm of Calvin Bullock, with of¬
fices at 1 Wall Street, New York
we
part of our
Union.
In the days of our Civil
War, Lord Palmerston's Cabinet
was
>;
.
little
with her. Some thirty
most anxious
ere
proud
too
are
What remains: Thus
and
later, in 1844 and 1845, she
years
The firm
dissolved
and
than 150 years ago, have we
more
was
inher¬
political
and business habits.
parted from England
principles
Since"
have
v/e
of
be
be
prejudices of foreigners?
England:
to
Englishmen
left to
are
miracle if every person who buys securities,
the science of investment, would realize
a
about
came
long.
have
powers
a
little
so
ment.
to quarrel over de¬
sure
of administration.
would
gest
is
It would be
knows
Than One To Skin A Cat
have voiced the truism that "securities must
we
masterful, and too shrewd in
trade, to make good partners with
such a people as ourselves. Sep¬
arated, we may be on fairly good
terms; united, we' are like to be
in a constant state of disagree¬
tails
any
aspirations
past
However^ the invitation was never ac¬
cepted.
During every conversation the salesman would be placed
upon the defensive but HE NEVER DEFENDED.
For instance, if'
he would suggest that it was a good time in his opinion to purchase,
certain securities she would disagree—he did not press the point.
He made a habit of agreeing—he disarmed—he showed he wasn't
anxious to make
a
sale—the
customer was
always right—SHE
FINALLY GOT TO THE POINT WHERE SHE THOUGHT SHE
HAD SOMETHING TO FIGHT ABOUT WHEN THIS SALESMAN
CALLED HER. ON-THE TELEPHONE.
After a while his calls be¬
would be
simmers
ment
and
way
vantage to us?
United States that wished to sug¬
blind to the fact that her govern¬
be sold."
England
even
as
had
never
ination
Wars, the Congress
a partnership or alliance of of Vienna made a statesmanlike
kind with Russia? To be sure, attempt to bring the two little
she has fought splendidly against countries under one
government,
the Germans since those days; but it produced the most violent dis¬
this only: shows her - patriotism
approval, culminating in 1830 to
and
courage.
Russia has been 1831 in something so close to war
fighting for Russia. High and hon¬ that only the intervention of the
orable as that
is, must we be great powers of Europe saved act¬
At times
almost ceased to mention the sub¬
ject.
1940, she struck hands with Hit¬ so much in common both in the
ler and agreed to leave Germany history of the past, and in ordi¬
alone, in return for like treatment nary every*day interests, might
by Germany to herself, who could be glad to be united with each
be found in either England or the other.
But when at the close of
the Napoleonic
There Are More Ways
England
coolly
discarded
any¬
thing like an effort to p^y her
debts to the United States.'
She
<
to
The Securities Salesman's Coiner
But after 1931,
had loaned them.
Thursday, June 29, 1944
prospects,
that
steadying out process that
Turning
there
the
has
is
already
become
as
to
future
every
more
possibility
commenced
marked
as
will
soon
activities in connection with
the current loan drive
minated.
are
ter¬
.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4294
159
19432—-
2705
Always highest
Growth in Assets
lelurns, based
"
:
1935
1936
1937
■j:
FIRST, paid
1939——
-
1940
1941—
—
—
-
Statement Upon
■
Earns from 1st
too
UUUUiit;U
YOUR
INVITES
Plan
ASSOCIATION-
.
,
.
V
17
.
.
.
VIRGINIA
.
Today For
Tomorrow's Home
Melvin H. Baker Calls For Realistic Post-War Planning
home
in the amount
League's nationwide membership,
Gardner W.
Taylor, New York
the
City, chairman of the committee,
explained. He felt that in what¬
ever form the U. S. Loan Plan is
proposed new plan have been used
before by savings and loan insti¬
tutions
and
other
lenders, but
finally adopted, today's proposals
will have a major influence on all
their
post-war home financing plans.
Only minor amendments to laws
supervisory regulations would
the way for
its countrywide adoption, he said.
be necessary to pave
loan
20-year
rower
Loan
cost
can
little
as
S.
Plan
the
a
bor¬
of the original debt.
The
contract
as
defer
right to
as
many
after the
whenever he re¬
six monthly payments,
first three years,
quested it in financial emergen¬
For example, a man might
be sick or his income temporarily
decreased or his employment re¬
move
him to another city with
the
attendant expense thereon.
Also most significant among the
contract rights of a borrower mov¬
ing out of the city because his
job changes is the provision for
the association to assist him in
cies.
realizing the most possible out of
property he is leaving behind^
Either to manage the property for
the
him, or to appoint in his behalf a
responsible agent locally to man¬
age
disposal
of the
property
the association's agreement
the U. S. Loan.
Furthermore
ahead
of
the
if
a
loan
under
./.
-
.
is
is paid
contractual
pay¬
ments, the borrower has a right
at any time to lapse payments
without his loan being considered
companion
feature to the right of the bor¬
rower to repay any part or all of
in
arrears.
This
living
houses
is
S.
U.
a
house
new
of
Some
best
financing, vit
of the Committee.
these
are:
Maximum
of loan to value of
Among
property (this implies a 90% loan,
under
certain
conditions); loan
terms
to 12, 16 and 20 years;
up
budgeting of taxes and insurance
on
monthly basis; provision for
additional advances for repairs,
modernization
and
other purposes without the neces¬
sity or expense of refinancing;
equipment,
title
minimum
and
costs
service
charges; promptness in loan com¬
mitment, closing and disburse¬
ment of funds.
Beyond these factors which ap¬
ply to the benefit of the home¬
owner borrower, the draftsmen of
the
S.
U.
several
Loan
Plan
have
gone
steps farther in their ap¬
plication of the principles of con¬
sumers' rights to the financing of
contractors and operative build¬
ers,
including those# which
building rental housing.
are
annual
material to build, with interest
be charged only from the date
.each
in
periodic
the
ance
course
to
advance
of
of
building:
operative
to
of
funds
assist¬
builders
by
blanket mortgage on
one
entire
project of homes he has
built so that money to pay for
labor and- material in building the
project
can
erties sold
the interest rate goes down by at
to
be paid out but prop¬
can
and
chasers;
be released to pur¬
multiple-unit
loans
rental housing.
Committee
is
convinced
encourage
The
that the
institution which makes
eco¬
meet¬
ing of the New
York
Melvin
Baker
H.
Loan Association
State
great desire in the
'to go home
a
everyone
»
of
for
dammed
the
by
up
re¬
war
the
better
come
has
long-standing need for
low-bracket in¬
class, the jDjpldmg industry
shelter by
its
post-war market ready
made," he said.
"Practically all those connected
with building agree that residen¬
tial building will start up as soon
materials
as
available.
and
manpower
There
are
estimates
are
ranging from 400,000 up to 2,000,000 dwellings per year, depending
on the willingness of people to in¬
vest their savings in new homes.
1
believe
that
there
will
be
a
gradual increase from about 500,000
units
to
higher level that will amount
a
in
the
first
peace
year
is quite
reason
are
few figures
a
Government
census:
37,000,000 homes, 50%
than
more
are
40
years
old, 6,500,000 need repairs, 5,000,r
000 are not fit to live in
and
15,000,000 have no bath facilities.
have a better
living condi¬
Certainly,
we cannot
America under such
tions.
Y:VV;
'
"America today is
and
demand
the
them
being held here
the
The
Here
recent
"Of
of
and
housing, "new, improved and
paired,
from
a
living.
home.
new
obvious.
:
underhoused,
much
is
there
work
depreciation alone there will
continuing annual need foi
a
.
challenge to all those
produce materials for home
who
con¬
.
that would make available money
terms, for the millions
poorly housed.
\
on
now
:
,
"The
$175
a
own
a
family with an income of
should be able to
month
home
that
would
vestment for the
risk
The kind of
be a good in¬
$5,000 home.
for
owner
long-term
and
safe
a
mortgage
"But to
within the
come
ties
without
I
cost.
y^ould > sup¬
plement this with the suggestion
that
home construction.
Yes, building
easily become the spearhead
to prosperity for all business.
Its
can
potentials for good
to
command the
are
sufficient
united
efforts of
all.
you
a
the
30-year
considering the credit risk,
might well study the kind of
home
that
will
be
for
possible
$5,000 after the war.
It will be
built better than those in the late
'30s.
There will be improved ma¬
terials
with
against
and
for
new
proposal available to to¬
giving them more
they want in the
terms
than
tempted
or
has
way
ever
worked out
tical basis before.
what
of loan
nearly
been
greater
depreciation
?
will
be
well
fuel
in
protection
from decay
home.
post-war
materials
labor- and
be
ful
higher, however; this will
partially offset through care¬
planning for use of unit sizes
in structural materials and equip¬
ment, and thus benefit from new
techniques in design and con¬
There will be less
struction.
pense
ex¬
for mortgage financing, in¬
terest
charges
monthly lay¬
and
out for amortization.
Cost will not
the
be
a
miracle house
some.
The
and
provide greater comfort in
fire-resisting materials.
attractive
in
It
inum,
plastics,
materials
these
the
in
the
But
and
useful
in
will
all
be
of tomorrow.
home
fantasy
push-button
(Continued
other
many
building and
improvements
found
on page
is
2711)
Standarl Named Head
Of Mich. S. & L
League
DETROIT, MICH. —Joseph G.
Standart, President of the Surety
Savings and Loan Association of
Detroit, was chosen as President
of the Michigan Savings and Loan
League by the delegates at their
57th annual meeting in Detroit,
June
<
23.
officers
Other
elected
were
and
Don
directors
W.
Seaton*
Hancock, as First Vice-Presidents
W. R. Crissey, Midland, as Second
Vice-President,
and
Grant
H*
Longenecker, Lansing, SecretaryManager
of the League.
Other directors
elected were Thomas C. Mason,,
Grand
Rapids,
Immediate Past
President; James I. Van Keuren,
of Lansing; Wendell C. Gates, of
Battle Creek; J. B. Mikel, of Three
Treasurer and Executive
Rivers, and Wade Van
burg, of' Kalamazoo.
Valken-
of the Franklin Federal
Savings and Loan Association of
Richmond, Va. have grown from
$2,500 in
1934 to $4,723,531.75 in
be had
1943. Latest statement may
upon
appearance
embody the
er's individual ideas.
to
with
more
and fashioned to
envisioned by
as
has brought about
rapid improvement in steel, alum¬
to
sum¬
It
be
be
constructed
mer.
will
will
war
Growth in Assets
insulated
winter
at¬
on a prac¬
the
will be
Assets
morrow's home borrowers will be
the
of
cost
obsolescence.
"It
conserve
this
urge
you
tending
"In
and organized ability
in the many industries and pro¬
fessions
directly
dependent
on
than
means
of this
be amortized.
leadership
The
by
bankers.
"
needed
the bank.
need for ex¬
period over
which the home mortgage would
big opportunity for
risk
.
.
struction, manufacturers of fur¬
nishings and equipment,. archi¬
tects, contractors and, yes, you
is a
safer
And
homes,
,
The
much
a
only consideration. More
money will go to buy conveniences
when appraising the accumulated
and appearances in the kitchen
shortage compare this figure with and bathroom. In the
end,
an averge of 415,000 homes
built
capital will be needed, but
in each of the past 14 years.
home will truly be a bargain corfWv
"This great need for more and
pared with those built in the '20s.
better homes brings into focus the
"There will be many new ap¬
banker
he can make possible
pliances
and
gadgets—but the
home ownership through a plan
post-war house isn't going to be
additional
870,000
income, the monthly out¬
to at least 10,000,000 new homes
lay for interest, payment on prin¬
within the first 10 years following
cipal, taxes, repairs and insurance
peace.
should not exceed $45.
This thqn
"Cautious statisticians figure it directs the kind of planning nec¬
out this way
families now essary to induce home ownership
living
doubled
up
because
of and better living for our people.
"I recommend a program that
housing shortages will provide a
demand for something like 2,500,- would include low interest rate,
000 dwellings. This, however, does deferment of payments over a pe¬
not include new homes required riod of six months, after three
for 3,000,000 new families that re¬ years in case of an emergency,
and where a change in residence
sulted from wartime marriages.
"That is the post-war challenge. becomes necessary, resale facili¬
.
be
home you financed 10 years ago.
"A larger investment will be
be
to
From increasing population
done.
be
Because
and
a
war,'
better
League
of
Savings
and
this week.
"Here
Listed among the features of the
Plan are: Advances for labor and
automatically drops in
the course of the contract, since
was
by Walter W. McAllister, San
Antonio,
Texas, ' Vice-Chairman
borrower
of V2
for
his
pointed
contract
possible
home
an
1%, during the life of the loan,
the
of
features
the
out
penalty and immediately reduc¬
ing his interest
costs by that
lea«+ three red"cti^ns,
case.
incorporation into the full
U. S. Loan Plan, along with the
new
features, gives them a new
value to the borrower seeking the
making
of
such
in
of
the
after
for
certain
provide the
impetus
again."
He
spoke at the
are
payments on the home loan need
not begin until after occupancy of
the principal at any time without
much.
In the U. S. Loan the cost to the
apartments while
being built, the
Plan provides
that
it
nomic
in
Loan
percentage
would have the
borrower
ilies
more
nation's
accommodate fam¬
to
their
$6.40 for $1,000
as
order
that
seems
lower.
In
de¬
clared
to
the committee, and is designed to
unprecedented stimulus to home
ownership.
The new plan is in the form of
a
proposal,
submitted for the
study of the 3,500 savings and
loan associations and cooperative
banks which constitute
the
giving
Baker
"once
give post-war ,homeseekers, both^
returning service men and those with the average rate over the
who stayed on the home front, an whole period required to be 5%
or
in
led
posed the latter part of last month by the Post-war Savings and Loan
Program Committee of the United States Savings and Loan League.
Called the U. S. Loan Plan, it is the result of 11 months study by the
on
hearts
greater desire
One survey
this nation its showed that 5,000,000 people em¬
prosperity
in ployed in war plants are saving
the
'20s, Mr. their money for down payment on
investment
of
the borrower many new privileges was pro¬
executives
all
upon
realistically, Melvin
Inn, N. Y.
Pointing oul^
that building
"There is
low in monthly payments
a new
prosperity for
to
directly dependent
and Loan Associations at Saranac
Five Savings And Loan Executives
providing
spearhead
approach the post-war period
building
Proposes A Flexible Scheme For Instalment Repayment
Of Mortgage Loans At Low Average Interest Rates—
Work The Result Of Eleven Months Study By Thirtyhome loan plan
the
H. Baker, President of National Gypsum Company, declared in an
address made last week before the New York State League of Savings
League Offers Post-War Home
Ownership Plan
and contracting to give
become
can
business if those industries and professions
United States Savings And Loan
U.
<o*V
*Ve
"Just Mail Check—We Do The Rest"
Construction
the
RETURN-
(Assets—Zy2 Million Dollars)
_
Under
IN
SAFETY, GOOD YIELD, and AVAILABILITY
of Richmond
and/
INVESTMENT—
AND OFFERS YOU
Federal
LOAN
AND
RICHMOND
35 savings and loan
INDIANA
i»e
SAVINGS
new
if in by 10th of
each montn.
Point
Crown
PRESIDENT
INDIANA
main
ooutn
C. E. BAGLEY
Hammond
Request
Franklin
A
R55 N
EHVING5 & LORN
$1,629,723.33
$1,949,445.05
$2,487,482.85
$3,415,596.97
$3,891,811.72
.$4,723,531.75
-
on
INVESTMENTS
U«<M
1938
SAFETY
on
$2,500.00
-$32,910.74
.$325,009.34
.$922,142.61
1934
eral
request from Franklin Fed¬
Savings and Loan Associa¬
own¬
tion, 616 East
Yes, it will Richmond, Va.
Franklin
Street,
THE COMMERCIAL & FINANCIAL CHRONICLE
2706
some limit should be
the maximum allowable tax
70%
for
turn
Obviously,
(Continued from page 2693)
that it shall be operative under a
volume of business in
one or more
private capitalism industries or by many individual
and
relatively free enterprise, companies, and from new capital
with government and private in¬ investments, — it alone can and
dustry (as represented by agricul¬ should reward such results. This
ture, labor and management) co¬ reward can be given through cer¬
operating voluntarily and realist¬ tain tax deductions as explained
ically towards attaining the com¬ in my plan.
While
monetary
rewards
or
mon
goal of a better and more
productive life for the entire na¬ their equivalent are the prime es¬
sentials, the elements of praise
tion.
and special mention are of supple¬
Factors in Private Capitalism
mental value provided the stand¬
Which My Plan Deals With
ard is set high enough. This prin¬
Owing to the desirability of ciple has been utilized during the
limiting' the discussion to funda- war by the Army-Navy "E" award
mental aspects, it is impossible to to individual companies for out¬
discuss here important elements in standing achievement.
the complex structure and func¬
Applications Under My Plan
tioning of our private business
of
framework
A—Production
which have a bearing on
To keep our "eco¬ centives for
machine" of human and Companies.
economy
Individual
the problems.
nomic
material
running
resources
forces; and these are essentially
the Competitive Factor, the Risk
and
Factor
Incentive Factor.
the
The Competitive Factor in pri¬
industry, while
involving
many elements, usually expresses
itself when and where possible in
the efforts of each company to ex¬
vate
ceed the production of goods
and
services of its competitors in order
to reap for itself larger profits.
The absence of sufficient profit
incentives
the existence of
or
ac¬
In¬
Business
Incentive Basis: Under my plan
business company will be
con¬
tinuously during peacetimes at or
near
capacity^ we should deal
with its basic driving and dynamic
Volume
or
each
rewarded
practically whenever its
production (or volume) of goods
and services in a post-war year
exceeds the
for
norm
standard set
or
pre-war year.
The highest
production or volume of business
in a
peacetime year is recom¬
a
mended
standard be¬
as a norm or
The
tax
rates
similarly^
devised, the initial rates begin¬
ning, for example, with V8% tax
deduction
each
for
allowed
rise in volume
1%
norm, etc.
and Cost of Pro¬
over
the
with
rise
in
volume
duction above the
norm
or
pro¬
stand¬
or
ard set.
Consequently, a large ex¬
pansion in the amount of employ¬
ment provided by private indus¬
try would reduce the amount of
financial expenditures and inter¬
vention imposed, on the Federal
Government in filling the unem¬
ployment gap; and this situation
would seem to justify "in general
terms"
As
reasonable
a
rough
a
of
cost
indication
of
the
billion
dollars
the
at
1929
price
the
national
1929
income
of
83
dollar
The
controlled volume of business.
The Risk Factor is inherent in
all business operations, whether in
the most
the production of goods and servicies which utilizes existing facil¬
tion
value
naturally is
uniform unit by which to
the increase in produc¬
,
measure
volume
or
post-war year
of
business
the
over
in
a
norm
or
If corporate income taxes
set so as to yield in the ag¬
were
of
amount equivalent to
an
the
national
allowed
for
volume
or
for
providing
tical
and
after the
plan is concerned for
equitable, prac¬
permanent incentives
for
war
of goods and
undertaking
the
These
vestments.
production
services, and for the
of new capital in¬
not
intended to be
all
our
economic
incentives
a
of
our
need
others
considera¬
tion. My plan proposes to outline
a fundamental way of approach¬
ing the basic problems of—
(1) rewarding individual busi¬
ness
companies
practically for
"extra good" accomplishments in
production or volume of goods and
services viz., accomplishments
above
the
separate
average
above
or
a
norm;
.
*
(2) rewarding
individual
both
investors and business companies
the extra risks usually in¬
for
curred
ital
in
undertaking
mew
cap¬
investments.
Since
nation
the
a
whole
in peacetime both from
exceptionally high production or
benefits
VOLUME
OR
PRODUCTION
TAX
in post-war
'
16%
48%
then
the total
which
;
year
under
a
5 years old.
celerated
around
two
billion
dollars,
leaving a balance of 8 billion dol¬
lars of corporate income taxes ac¬
cruing to the federal government
sizable
a
sum
net
"income
duction
allowed
in
post-war
a
year
should be commensurate with
the
percentage
the norm.
over
gain
in
volume
The "tax incen¬
tive" should be further related to
the
magnitude
of
a
company's
volume because it Would ,be. much
easier
for
a
company
having
a
$1,000,000 volume as norm to
show1 a many-fold increase after
the war than for a company with
a $100,000,000 volume as norm to
show
50% rise.
a
-
.
.The following tabulation illus¬
trates the application of the vol¬
tax incentive to
7.1
billions
for
peace
in
1941
and
Some Administrative
INCENTIVE
or
FOR
LARGE
,
Volume
■*
.
11.9
••
B—Incentives for
Deduction
6%
V2
48
22
%
72
37
.
been
on
capital investors should be
restricted to the original investor
who takes the initial risk, thereby
eliminating from "incentive eligi¬
bility" or substantially reducing!
the benefits therefrom
for
SUPPLEftfENTARY
INFORMATION
The following data r.nd,-,comments
dealt with
in
;
.
income
(in
billions)—
of
Tax
Deduction
on Volume
Incentive
Calendar-Years.———
1929
1937
1939
1940
$83.4
$71.4
$70.8
$77.8
Corporate Profits and
Profits
Profits
before
taxes
$9,153
—
taxes.
after
taxes ■;
Ratio of Income Taxes
Profits
before
National
V
■"
—
|
ARTICLE
TO
are intended to amplify and support the factors
preceding discussion.
Supporting Data For? Calculation
National
to "sec¬
as
investors who
acquire,
unimportant source
original investments by pur¬
capital funds?--chiefly of chase or transfer.
new
are
: $5,173
Income
1941
1942
$95.6
$119.8
Taxes
(in millions)
$1-3,938
$18,784
$5,320
$7,390
1,181
1,276
1,232
2,543
7,081
11,900
7,972
3,897
4,088
4,847
•in %
6,857
6,884
to
Ratios-
taxes
12.9
24.6
23.2
34.4
50.8
1.4
1.8
1.7
3.3
7.4
income
A
:
63.31
9.9
Average Price Levels
Wholesale
1926
commodity
prices
100
as
i.
Cok
of living index
1935-1939 as 100
95.3
86.3
77.1
78.6
87.3
122.5
102.7
99.4
100.1
105.2
98.8
r
L
CALCULATION
OF
TAX
DEDUCTION
FOR
VOLUME
116.5;
in¬
INCENTIVES
•
corporate Income
National Income at various
Taxes
levels with 1929 prices
(Billions)
/
90
bil¬
Aggregate Tax Deduction
*Avg. Rate
Amount (Millions).
(Billions)
f
„
Aa \:A',a;^■iwyAA',
equiv. to'
8% of Nat'l Income
% Change ovpr 1929
t$83.4
$6.68
•
.
7,9f
7.48
3.0%
100
+19.9[
8.28
8.0
662
110
+31.8;
9.08
15.9
1,444
120
4
130
+ 50.8*-
10.68
23.8
2,542
140
+ 67.8
11.48
34.4
3,938
+
■^Corresponding
Note- -Ratio of
43.7:-
rise
volume
for taxes to national
income
percentage
as
is
"
1,966
text.
fActual
1
for
1929.-
roughly the 1941 basis.
....
>5•
Volume
per
"
$224
19.9
in
with
8%
9.88
■
IncenUye-^Tlie rates of annually
would
be
deductible
alldwe&as a "Vol¬ from .taxable earnings and on a
should be com¬ 40% average corporate tax rate,:
with the fdegfee of the this would result in an
aggregate*
deduction
tax
ume
Incentive'"
mensurate
"Tax Burden."
all corporate
were
such
Thu|;;if the over¬
to
cost"
to
the
nation
of
$88,-*
structure 000,000 for 5 consecutive years on<
produce: art ag¬ new capital expenditures (as de->
to
as
gregate amount of
lent
"tax
incomq;|^x
only 5%
^axes equiva¬
o|;<ii4tional in¬
fined) of 4 billion dollars for one:
year, a.--av
/; -aaa ' a;'.".;':
h
Method (b)—-Using an
come, the rates of JdX .deduction
average;
might have to be raised so as to accelerated rate of depreciation
•
make the Volume
Incentive "worth
based
on
12 years as
while"; and the reyerse situation
mal of say 24 years,
would also hold
preciation allowed
truC.^r
against nor-1
the extra de¬
as a
deduction:
,
New
Investments
or
Private
made
in
Post-War Period.
tures of 4 billion dollars
Expenditures
Recent
government figures
("Markets after the War") show
that
an
in
the
average
four
of
yeafs 1937-1940
7 and 8
between
billion dollars was
spent on pro¬
ducers' plant
and equipment
of my plan, new
private capital investments are yearly, distributed approximately
as follows:
classified into two categories: .
\y
Billions
New Capital Expenditures by
Manufacturing and mining^AAu-? $2.5
1.5
private business for fixed capital Public utilities
1.0
assets such as buildings, plants, Agriculture
Trade, services and
equipment and machinery which
2.5
have long life; '
• •
Total
7.5 v'
New C a pi t a I Investments
If,
for
example,
of
the
fore¬
equity or long-term debt capital,
going, capital expenditures repre¬
made by individuals
in estab¬
sented
annual
depreciation al¬
lished or newly organized private
lowed as income tax deductions,
enterprises.
then only about, 4 billion dollars
New Capital Expenditures: UnFor
purposes
—>_—___
miscel^neous-
-
'
half
,
dejr my plan, yearly new capital
expenditures of a company would
be
defined
as
the
amount,
by
which cash expenditures for fixed
year
Tax
Rise
has
difficulties, the incentives to
ond-hand"
Consider¬
"transition",
a
or
post¬
exceeded the deprecia¬
on
existing fixed. as¬
sets for income, lax purposes,
16%
depreciation
tive
the
years
acquisition, the volume
figures of former constituent com¬
panies would serve as a base.
tion allowed
COMPANIES ;;
Corresponding Rates
un->
new
dividuals: Although life insurance
merger or
war
$100,000,000.
income-
varying with1
My fundamental lihesis is that from earnings would be $167,000,profits should be commensurate 000 yearly and on a 40% average!
with
volume or production.
A corporate tax rate, this would re-:
very high level of business (anci suit in an aggregate "tax cost" totherefore employmertt). in itself the nation of $67,000,000 for 12
implies a fairly successful solu¬ consecutive years on new capital
tion of the serious distortions in expenditures (as defined) of 4 bil¬
work out a scheme of bonuses for
the overall price structure which lion dollars for one year.
exceptionally
high production
frequently retard economic ac¬
Comment: Obviously, the over-'
taking into account the "price
tivity.. '
rv'A;A'"\'all tax cost would be cumulative"
parity" factor.
so
that if new capital expendi-For companies
expanding via Additional Data for New Capital
pany
$50,000,000
period
might also be made for
companies
lions in 1942.
large com¬
with a norm or maximum assets in
yearly peacetime volume of say
a
a
under
New Capital Investments by In¬
compared with actual cor¬
porate income tax collections of
"Transition"
the
give
and
companies
emergency plant construction.
when
lowed
to
companies
The principle of ac¬
allowed in income tax. returns
be
Capital
tax" liability.
The amount of tax incentive de¬
from
exempt
a
the "newness" of the company and f
its
size.
Favorable
tax
adjust-*
duction incentive purposes would
incentive deductions would be al¬
%%
*
income tax
existing tax laws, from
specified percentage of
1 % Rise in Volume
to 48%
,
The procedure would be
calculate
Tax Deduction for each
year over norm
From 1% to 16%
Over
to
Rate of Allowable
% Volume Increase
Over
plicable.
ume
as
specified allowable tax
a
the
while
economy-
of
vol¬
deduction for the year where ap¬
liability in any given
adjustments, some of which re¬
quire practical compromise and
cooperation by the various seg¬
ments
way
or
should be by
norm
for
mal¬
and
above the
are
panacea
ills
production
post-war
ume
established
9-year basis for
or
In essence, my
be
for
taxes
set, for
large com¬
distributed
ments.
with
for
5%
should
expen¬
be
ments
pro¬
in new capital invest¬ standard set, but in using this unit ations of Plan: As a practical
Significant thereto is the it is necessary to make some ad¬ matter it would be desirable to
fdr
important
price eliminate from the "Volume or
knowledge that in our limited justments
peacetime business recovery which changes because we are aiming ait Production Incentive Plan" very
increased
volume
in
terms
of small business units whose yearly
followed
the
severe
and
pro¬
tracted depression of the early physical units. Wherever feasible, pre-war volume did not exceed
Thirties, the yearly average of it would be preferable to use $50,000 or $100,000. (Small com¬
new
capital investments were of physical units to measure volume panies receive special income tax
substantially smaller amount than of business such as tons, bushels, treatment through lower rates.)
hours, etc.; but even However, provision should be
in the good business era of the kilowatt
here some price adjustment may made so that when small or new
Twenties.
The Incentive Factor is a pre¬ be necessary to allow for impor¬ companies attain a yearly volume
requisite both for the expansion tant differences in the selling after the war in excess of the
of production or volume of busi¬ prices
ojL various < products and minimum set ($50,000 or $100,services. However, each industry 000), they would become eligible
ness and for new capital invest¬
is thoroughly competent to deter¬ to receive the benefits under the
ments; and, consequently must be
reasonably encouraged and stimu¬ mine the proper basis for measur¬ Volume Incentve Plan at a rate
designed to deal with
lated in any, plan for post-war ing its volume or production with schedule
such situations.
employment under free private respect to changes o^ter norm.
For
agriculture where the tax
The Incentive and Its Applica¬
enterprise.
tion: The reward to an individual incentive might not be sufficiently
Aspects of My Plan
attractive,
it might be necessary to
company (corporate or otherwise)
ities
can
tablished under 5 years.
Income
billions.
tion
or
funded
panies and 7% for small com¬
panies, with 8% for companies es¬
,
ceed
we
are
to
successfully
post-war employment, and
the reward, to be effective,
at
the
income—ap¬
proximately the situation in the
year
1941—the total tax deduc¬
if
capital
new
rate
level—-which would be 45% above
8%
solve
The
example,
"tax cost," assume a yearly na¬
tional income after the war of 120
gregate
sults
the
allowable
such
initially
such
on
ditures.
Volume Incentive.
(a) it is most urgent that
yearly national income after
the war (allowing for important
price changes) substantially ex¬
maximum peacetime re¬
or
depreciation.
earnings applicable to
Justification
(b) Permit for income tax cal¬ new risk capital for a specified:
duction or Volume Incentive: Un¬ culations an accelerated rate of
period, etc.
der my plan, the "tax cost" to the depreciation on such
pew capital
For proper safeguards against
nation
would be
commensurate expenditures viz., a 14ryear basis
abuses and to avoid administra¬
■
•
incentive
small companies could be
our
pending risks which loom (b)
large relative to possible profits— should be predicated on bettering
during peacetimes—usually brings previous peacetime accomplish¬
\ yV
v
about situations of restricted or ments.
tual
on
cause
our
80%—of
debt type—my plam
contemplates providing!
Two methods are submitted for "adequate incentives to individual j
deduction given as Production or
Volume Incentive.
Assuming a determining adequate incentives. investors for making new capital,
37%
maximum for large com¬ Following completion of such new investments
in
established
or!
panies, this group would have to capital expenditures,—
newly organized companies.
i
show a 72% rise in their yearly
The incentive
would
be
(a) Allow for 5 years a yearly
that
deduction
from taxable earnings dividends or interest received on
post-war volume over norm to
earn the 37% tax deduction.
equivalent to a fair rate of re¬ such new capital investments'
set
By Creating Incentives
Thursday, June 29, 1944-
more
the
over
ii
feasible, the basis could be,
excess
a
,
of
stated
cash
would constitute
Neyi Capital
say
main¬
consecutive years,
the tax cost (or allowable tax de¬
duction) in the 5th year would be'
tained
under
estimates
as
to
my" plan.
for
5
$440,000,000 under method (a)
and
$335,000,000 under method(b).
'•
* ;;
•
1
The stimulus to the entire econ¬
.
,
.
from industry capital invest¬
omy
ment expenditures is of inestima¬
ble value as well as necessary for
high national income owing to;
large savings aspects of ourt
ecbnoniy. The problem of stimu¬
lating residential ^housing ' con¬
a
the
struction
which
can
cater
the
to
average yearly income of most of
Our
seems
penditures as defined and thus
tures.
eligible for the tax incentive de¬
duction
annually*
were
population (around " $2,500);
to require special consider-;
ation in the overall probleriv of in¬
Ex¬ centives for new
capital expendi-;
Rough
poss|ble tax de¬
ductions
To
culties
set
a
-
■
avoid
it
administrative
would1 be
minimum
diffi-
necessary
amount
of
*
to
new
resulting froth incentives
Capital expenditures which would
Capital Expenditures of
be eligible under the . plan. :
"•
4 billions yearly, woiRd be' sortie?:
for New
.
what
as
follows
methods outlined:
according* to Additional Data
for. New Capital
|K;
Method (a)—-Usin^ art average
expenditures rate of return of 5^%: for all cor¬
percentage —
(net of depreciation)
Investments by Individuals—
The, incentives for
new
capital,
porations, the sum of $220,000,000 investments by individual inyes-,
Volume 159
tors
is
meet
the
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4294
;
especially
CITY INVESTING COMPANY
capital for small and medium
business enterprises which
cannot readily "tap" the estab¬
Sized
investment channels.
Broad
30
Rec¬
of plans for setting
National Industrial Credit
Corporation of at least $500,000,000 to be subscribed by financial
institutions and individuals, which
will endeavor to supply the new
nouncement
of 70t per
up
able August 1,
a
share
Y YY :
this dividend.
V'Y-.'
.
':''Y':VvY '
v;Yy:1■■
of
'Y": Y-.v
t-'"
Company,
THE CITY OF NEW YORK
•
share
worthy that new capital financing
averaged $5,360 millions
annually during the 4-year period
$722 millions
1927-1930 and only
the
during
There
1940.
10-year period 1931are no compilations
showing what percentages of these
new
capital funds were supplied
by individual/investors, although
it is known that in the past few
institutions have
directly from one-third
financial
years
absorbed
of the aggregate cor¬
to two-fifths
porate financing of refunding and
new capital. ~
Y
Assuming that new capital in¬
individuals were to
average 2l/z billion dollars annu¬
ally for a few years and that the
average return (average to debt
and equity capital) was 5%, the
annual sum of $125,000,000 would
vestments by
be
from individual in¬
tax returns and assuming an
exempt
come
tax bracket of 50% for
such exemptions, this would mean
a "tax cost".of $62,500,000 yearly
average
for "x" years
and
a sum
(Continued from page 2691)
is designedly tending to¬
wards
a
complete monopoly of
Permitted
the
continue
to
of
83%
from
the
there
power,
the
of
handful
telling what
men
running the
ness.
The
ment
be
by the high level of
national' income
cooperation, is
unconscionable
position
of
characteristic
generally.
joined ,from .further
or
dealers
public"
the
Notice is
be held
had
defendants
The
^
'
complaint
transactions
■
•
illegal
charged
October,
between
1940, .and. October, 1941, for
which
had
been
complete
,
restitution
its
rehabilitation, is, to
the close
of
cents
a
June
13,
Co.,
148
Motors
special analytical letter of Bal¬
interesting
letter
on
the
situation may be had from Ray¬
mond & Co. upon request.
.
'••••
June 30,
on
on
at
the Common
July IS, 1944
the close of
1944.
GEORGE MIXTER,
June 21,
Treasurer.
1944
HUNTINGTON,
Treasurer.
1944.
Attractive Situations
Laclede-Christy Clay Products
Co. common, which is listed on
the
St.
Louis
Stock Exchange,
Post-War Possibilities
Du Mont Laboratories offer in¬
teresting post-war possibilities ac¬
cording to a circular on the situa¬
tion issued by J. F. Reilly & Co.,
Ill
offers an interesting situation, ac¬
cording to a memorandum issued
by Herzog & Co., 170 Broadway,
New York City.
Copies of this
Copies
memorandum and also circular
Broadway, New York City.
of this circular and also
comprehensive releases on Moxie
Co. and Majestic Radio may be
had from J. F. Reilly & Co. upon
Works
obtained
be
may
Herzog & Co. upon request.
NOTICES
MEETING
of
proposed
merger, pursuant
a
4
said Plan
a
be taken all such action as
•;Y
or
"advisable in
order to
take
out
said
to transact
.
Y; ;'-
transfer
the
Stock
10
at
Class
and
qfrloek A.M.
adjournment
or
'
If
to
nated
ware,
June 28, 1944 and will be reopened
July 28, 1944. Only those who are record
such stock at the time of the meeting
BY
ORDER
OF THE
'
.
as
of the above mentioned Plan
BOARD
to
as
authorize
as
Com¬
and
Motors
required by the laws of the State of Delaware,
of
Board
its
be taken all such action
or
order
advisable in
(4)
to transact
before
as
to
Directors
and
the
Board
of
Corporation to take or cause to
shall be deemed to be necessary
carry
out
such other business
said meeting
of Merger and Recapitalization, dated
Room 2000, 30 Church Street,
-
,
YY
Borough of Manhattan, New
any
said
merger
and said
as may
adjournment
closed at 3 o'clock P.M.
10 o'clock A.M.
on
shares
of
holders
of
properly come
adjournments
of/the Board of Directors, the
on
Company will be
June 28, 1944 and will be
reopened
record
July 28, 1944/ Only those who are
such stock at
the time of the meeting
specified herein will be entitled to vote thereat.
If you cannot be personally present at the meeting,
be
books
Preferred Stock, and Common
Stock of American Car and Foundry Motors
at
or
•
...
for the transfer of shares of the
please
good enough to sign and return the enclosed proxy.
—
New York,
'
or
Pursuant to the action
OF DIRECTORS
of said Merger Agreement desig¬
Exhibit A, may be examined by any stockholder at the principal
The Brill Corporation, at 100 West lOtk Street, Wilmington,. Dela¬
York, wN. Y.
ACF-BRILL
accordance with said
and the Agreement
Exhibit A thereto;
consider and take action upon the Agreement of
Y
'
*
H. C. WICK, Secretary.
1914, to which is annexed a copy
fcnd
and into The Brill Corporation,
which will be the Surviving
attached to said Plan
thereof.
on
Vork, N. Y„ June 26, 1944.
office of
the laws of
Foundry
and
corporation,
Directors of the Surviving
YYY.
y|u cannot be personally present at the .meeting, please
the enclosed proxy* j .
A copy
Car
Merger and Recapitalization
Company,
of the Board of Directors, the
good enough to sign and return
*
to
pursuant
American
approved by the Stockholders of The Brill Corporation
adjournments
specified herein will be entitled to vote thereat.
be
of
by the stockholders of American Car and Foundry
.
and said
books
of shares of the Preferred Stock, Class A
B Stock of The Brill Corporation will be
on
shares'of
holders, of
any
or
.
o'clock P.M.
merger,
Delaware,
and The Brill Corporation, dated June 19, 1944;
(3) if said merger shall be authorized, adopted and
such other business as may properly come
Pursuant to the action
for
proposed
a
recapitalization; and
before said meeting
thereof.
Surviving
pany
recapitalization; and
(4)
of
(2)
or cause to
merger
the
of
Merger between American Car and Foundry Motors
shall be deemed to be necessary
carry
Recapitalization
Company, with
of Merger
shall he authorized, adopted and ap¬
Dii-ectors of the Surviving Corporation to
of
Delaware
Plan
the Agreement of
Com¬
and The Brill Corporation, dated June 19, 1944;
merger
the Plan of Merger
Corporation, and shall thereafter be known as
...J2) to consider and lake action upon
13) if said
upon
and American Car and Foundry
MOTORS COMPANY, substantially in
Merger
proved by the Stockholders of The Brill Corporation and
by the stockholders of American Car and Foundry Motors
Company, as required by the laws of the State of Delaware,
to
authorize its Board of Directors and the Board of
upon
State
Motors
Merger between American Car and Foundry Motors
pany
the 26th day of July, 1944, at
on
and
Company
a
No. 30 Church
War Time, for the following purposes:
Brill Corporation
action
the
Exhibit A thereto;
as
Y.,
Company,
Motors
Corporation, dated June 26, 1944, and to consider pnd take
Recapitalization and the Agreement of Merger attached
and
Foundry
consider and take action
to
Motors
Surviving
consider and take
to the laws of the
of the
ACF-BRILL MOTORS COM-
as
(1)
of The
Car and Foundry
PANY, substantially in accordance with said Plan of
to
Street, New York, N.
Brill
which will he the Surviving Corporation, and
Corporation,
and
Car
11 o'clock A.M., Eastern
Delaware corporation, with and into The
shall thereafter be known
American
of
Delaware corporation, will he held at its office,
Car and Foundry Motors
Delaware, of American
Y'
herejby given tliat'a Special Meeting of the Stock¬
Notice, is
holders
A copy
BY ORDER OF THE BOARD OF DIRECTORS
H. C. WICK, Secretary.
N. Y., June 26, 1944.
and Recapitalisation, dated
of said Merger Agreement desig¬
stockholder at the principal
Foundry .Motors Company, at 100 West 10th
of the above mentioned Plan of Merger
Jane 26, 1944, to which is annexed a copy
nated
as
Exhibit A, may be examined by any
office
of
American
Street, Wilmington,
of Manhattan,
Car and
Delaware, and at Rooin 2000, 30 Church
New York, N. Y.
on
Bartgis Bros, and Federal Screw
request.
the Plan of Merger
upon
Recapitalisation
and
Company
Company,
New
timore & Ohio 4 Vzs of 1960. Copies
this
the Class
on
record
of
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
'
|
quarterly divi¬
COMPANY
-
Corporation,'dated June 26, 1944, and to
-
June
of
business
share
has been declared,
to stockholders of record
business on June 23, 1944.
State
Street, Boston, Mass., have issued
a
stockholders
company
"
&
fifty cents (.W) per share
Capital Stock, both payable
1944,
STOCKHOLDERS
'
Y
Interesting Rail
a
New York 7, N. Y.,.
Brill Corporation and American
The
made, the Attorney General said.
Raymond
mdtj
30 Church Street
o'clock P.M., Eastern War Time,
following purposes:
closed ?t 3
Y
fear, and which, in
a Special Meeting of the Stock¬
Corporation,..'^Delaware corporation, will-:
office, No. 30 Church Street, New York, N. Y.,
(l)fto consider and take action
of
New
injunction but denied they were
world promised
hereby given that
the 26 th of July, 1941, at 2
on
direc¬
consented to the
guilty of fraud.
at
for the
dealings as
in securities
in
a
holders of The Brill
York
State, it was announced by the
Attorney General, Who added the
with
in
15,
the least, most unfortunate.
say
NOTICE OF SPECIAL MEETING OF
Corp., have been permanently en¬
"brokers
payable July
New York 7, N. Y.
George
Investing
Atlantic-
action
50
of
this
of
Church Street
30
Permanently Enjoined
the
its
y
AMERICAN CAR AND FOUNDRY MOTORS
^
of
assesses
opinion, will hamper freedom
our
of
dividend
stock
small busi¬
plague them, which
fear in
freedom from
investment
the
which
Sfol-ciL
1J4% (87 5/2 cents per share) on the
Preferred Capital Stock, and a dividend of
to
THE BRILL CORPORATION
•
.
A
G. K.
existence
>£5
Mir.TNG COMPANY
The Director*! hav& declared
DIVIDEND NO. 269
ob¬
others.
the
i A y
MEETING NOTICE
'other social and
benefits to be derived
therefrom.
.v.YY>:
Javana, former officers and
our
S
AND
REFIMCMG
Telegraph Co.
appeals.
on
few of
a
soldiers,
to
members
This op¬
too, to be
bankingi fraternity
political
tors
many
entity
an
creates
profits.
believe,
we
ing into account
Thomas W. Durkin and
of
always been opposed to
and have
by
conditions,—without tak¬
are
returning
unhealthy condition that will
employment
industry under such fa¬
but
UNi'i tt)
The Western Union
is vital to our reconstruction
ness
hamper reconstruction.
As our readers know*, we are,
State
vorable
penalties
are
plans, to the employment of our
moment their
the
for
action upon a
private
capital
Morrell
on
We feel strongly that at a time
SEC
behind-the-scenes
v
created
of
when the financing of
liaison arrange¬
and NASD
statutory
between
readily
or
ceilings
as
■
forgetting
an
There
dealers out of busi¬
' V '
Y 1
which "tax
absorbed
conditions,
could
cost"
the
J. Beckett, Treasurer
Francisco, California
per
John
,
dend of
at
many
high production and new invest¬
ments could run around 3 billion
dollars annually under very fa¬
vorable
San
Ottumwa, Iowa. Geo. A. Morrell, Treas.
them, by
jections to the existence of NASD.
that will
Association may do next
force
before
great
A
no
is
lies
"principles"
These
foregoing tax incentives for
The
-
such
of "philosophies" un¬
guise of its rule-making
1935-1939.)
Summary Comment
which
increase
capital in¬
to the ex¬
1923-1929 and
from
task
es¬
'
74%
tent
be
the
in
heartened
will
tablishing
der
do not believe
we
profits, trials by competitors, and
dealers in the securities field.
internal sources
from
E.
Fifty
Co., will be paid
July 31,
1944,
to
stockholders of
record July
15, 1944, as shown on
the books of the Company.
that those in the investment field
NASD
vestments by
provided by financial institutions
are
not eligible under the plan.
(Government figures show, that
expenditures for plant and equip¬
ment by business enterprises were
financed from funds accumulated
Nevertheless,
Y After The War
of $312,-
individals duplicates
only partly the incentive to new
capital expenditures by industry
because the latter have been fi¬
nanced chiefly by internal sources,
besides which new capital funds
equal
V'/o of its par value, will be paid
upon the Common Capital Stock of
this Company by check on July 15,
1944, to shareholders of record at the
close of business June 29, 1944. The
Transfer Books will not be closed.
to
&
by individual investors were
maintained
for
5
consecutive
years.
Y*,
The incentive to new
of
of
June 14,1944, for the
on
second quarter of the year 1944,
60
($0.50)
on
stock
500,000 in the 5th year if 2Vz bil¬
lions of new capital investments
*
dividend
A
Cents
by private industry (excluding in¬
vestment- trust and holding com¬
NO.
DIVIDEND
Vice President and Cashier
Y
rough yardstick, it is note¬
panies)
of Directors
JOHN MORRELL & CO.
W. H. Moorhead
.Y''
"Y:Y '■
.
business units.
a
A cash dividend declared by the Board
,
YYvY'.'" Y,"
" ' Y
•,
ture
114
and
the
the chase national bank
OF
capital needs, particularly of ven¬
capital, of moderate sized
1944.
the close of business July 7,
closed in connection with the payment
The transfer books will not be
of
DIVIDEND NOTICE
.
Common Stock Dividend
outstanding Preferred Capital stock
other than Preferred stock
owned by the Company, payable July 1, 1944, to
holders (other than the Company), of the Pre¬
ferred Capital stock of record on the books of
the Company at the close of business on June
24, 1944.
Checks will be mailed.
G. F.
GUNTHER, Secretary
issued
stock of the Bank, pay¬
the 7,400,000 shares of the capital
on
1944 to holders of record at
1944
out of surplus of the Company, a dividend for
the threo months ending June 30, 1944, of one
and three quarters (1%>) per centum upon ihe
dividend
of New York has declared a
The Chase National Bank of the City
22,
Directors has this day declared,
The Board of
OF THE CITY OF NEW YORK
THE CHASE NATIONAL BANK
PACIFIC GAS AND ELECTRIC CO.
Street, New York
June
ognition of this situation is evi¬
denced
in
the very
recent an¬
As
DIVIDEND NOTICES
ven¬
new
ture
lished
NOTICES
DIVIDEND
DIVIDEND NOTICE
to
necessary
for
demands
2707
Street, Borough
from
THE COMMERCIAL & FINANCIAL CHRONICLE
2708
Intemat'l Monetary
Conferences
(Continued from page 2693)
place of meeting, and the confer¬
turbing alterations in the market
ratios of gold and silver.
,
1878.
first
1865 of the Latin Monetary
were
The delegates com¬
prised the leading economists, fin¬
anciers
and
statesmen
of
the
time.
The American delegation,
consisting of four members, was
headed by General
Francis A.
Walker,
then the most widely
Through the influence of France,
Which was then dominated by thg
imperialist designs of Napoleon
III, France, Belgium and Italy
known American
agreed upon a plan for a uniform
coinage of standard silver coins,
which would be given legal ten¬
der and other circulation privi¬
had
just
treatise
leges in the countries that were
members of the union.
Greece
economist, who
written
entitled
learned
a
"Money,"
" in
which the bimetallic standard
was
favored.
The
other
American
delegates were Senator R. E. Fenton, W, S. Groesbeck and S. Dana
Horton, the latter a strong silver
'and
foreign and domestic* trade aris¬
ing from difficulties in fixing for¬
eign exchange rates, there arose
considerable
discussion -among
Aug. 10,
countries
Twelve
represented.
Union.
Spain joined the Union later.
Partly through the influence of
this arrangement and partly from
a desire to ease the inconveniences
and
commercial disruptions
in
convened there on
ence
step taken interna¬
tionally to bring about a monetary
unification was the formation in
The
advocate.
.
'
/ The
ostensible
of the
International
Monetary4 Confer¬
ence of 1878 was the promotion Or
establishment
tem
of
purpose
a
uniform
sys¬
of, international bimetallism.
Although several European
resentatives, in addition to
rep¬
the
European economists and states¬
regarding the advantages of American delegates, were con-,
international coinage system. firmed bimetallists, the confer¬
This agitation, in a way, resulted ence, in spite of its serious delib¬
in the convocation in'Paris in 1867 erations, refused to commit itself
on
the question.
Germany did
of the first important interna¬
tional monetary conference, un¬ not, take part in the proceedings
on
the
ground that the Empire
der the leadership of Napoleon
III of France,
This conference was already committed to the gold
standard
and desired no change.
was
attended by delegates from
the leading nations of the period. Great Britain, represented by the
The United States was repre¬ distinguished banker, economist
sented by Samuel B, Ruggles, who and statesman, Viscount Goschen,
had been active in political and and Henry Hicks Gibbs, ex-Gov¬
commercial affairs in New York ernor of the Bank of England,
men
an
City for many years, during which
he had manifested a deep interest
problems. Inasmuch
the German Empire had not
in economic
as
yet come into existence, only a
few of the German States and
principalities were represented at
gathering. Neither Russia nor
Italy was represented.
The de¬
liberations of the delegates were
devoted mainly to the problems
arising from the alterations of the
^different national standard coins
which came about in large part
because of the fluctuations in the
market ratios of gold and silver.
rthe
order
in
assisting the
United
States
in
fostering
a
greater use of silver money, de¬
spite the fact that its India was
on a silver basis, and the fluctua¬
tions in the London-Bombay exr
change rates were a serious men¬
to the trade with this colonial
ace
Empire.
It is generally believed,
perhaps true, that Great
Britain desired the restoration of
a
eliminate
to
reestablish
and the Sherman Silver Purchase
nently
Acts, the value of silver, in terms
of
gold, was declining almost
Without interruption.
The coun¬
try was threatened with a disap¬
pearance of its gold reserves.
In
precious
the necessity of keeping
stipulated amount of this metal
view of
a
in
the
Treasury
redeem
to
the
United
Minister
States
Bel¬
to
gium, Edwin H. Terrell, and B.
McCreary, member of Congress,
Henry W. Cannon, President of
the Chase National Bank/ and E.
Benjamin Andrews, President of
Brown University, one of the few
American economists that favored
the free coinage of silver.
The conference began delibera¬
on Nov. 22, 1892.
tions in Brussels
The United States delegation sub¬
mitted
a
national
general plan of inter¬
and
bimetallism,
pro¬
posed/if this could not be accom¬
plished, united action be taken to
increase the monetary use of sil¬
ver.
Plans were submitted
by
other delegates, including
Lord
British repre¬
maintained that
Rothschild,
a
who
sentative,
that of
a
gold
easily to draw off the American
world
to
>
abolish-
John Maynard Keynes, in
England, and Irving Fisher, in the
United States, denounced the gold
standard
as
unsatisfactory and
urged
its
abandonment.
The
struggle for adequate gold.. re-,
serves among
the Various noteissuing central banks, with its in¬
trous
as
period of hostilities.
evils
the
hand,
adopting bimetallism unless Eng¬
land took this step.
The smaller
nations contended that they could
take no action which was not
j
There
positive
any
hot
was
action.
unanimity
even
the members of the indi¬
vidual delegations.
The Amer¬
among
Despite the arguments and elo¬
quence
of General Walker and his
the British
bimetallism
had
some
headway.
The
garded merely as a preliminary gained
gathering,, accomplished nothing meetings ended after a period of
in the. way of positive remedial less than three weeks, and the dis¬
Americans ; returned
action, though it did recommend appointed
the adoption of an international and reported the deliberations to
Congress had the
unified currency system, such as the President.
prevailed among members of the proceedings and the documents
Latin Monetary Union.
It was printed in detail. General Wal¬
intended that another assembly ker, in turn, published on his own
should
be
called - in
the near accord a book entitled "Inter¬
future, but the Franco-Prussian national Bimetallism," which told
1870-71
III
whole
scheme
of
difficult.
the fall
and
it
made
of
an
inter¬
national currency system was,
for
time, forgotten.
In the mean¬
time, owing to the abandonment
of bimetallism by the new Ger¬
man Empire,
the demonetization
of silver by the United States, and
the vast increase in silver produc*
a
tion
as
compared to gold, serious
disturbances--were
produced
in
national and international mone¬
tary transactions throughout most
the
civilized world.
There
were
commercial crises in 1873
of
t
and in the years
immediately fol-.
lowing in both the United States
At this time, be-
and in Europe.
of the. importance of its sil¬
production, and the agitation
cause
ver,
for "cheap money," the "silver
question" became a permanent
feature on the "agenda" of the
United States Congress.
It con¬
tinued
to
disturb
the political
and
economic
progress
of the
nation for two decades thereafter.
Accordingly,
it
was
suggested
that the United States make rep¬
resentations to other governments
for
an
international
conference.
Ant
1878.
to
this
Paris
monetary
Congress passed an
effect in February,
was
selected
as
the
of
the
action
of
the
conference
reiterated his argument* fm-
and
the universal adoption of a fixed
mint
ratio
for
But later he
doned
gold
seems
to
the feasibility
trine,
since he took
future discussions of
Yet
both/ in
followed
shortly
crisis
and
The
pression.
by
financial
a
business
severe
a
de¬
President,
to
garding the possibility of the reestablishment
of
• bimetallism.
Atkinson reported, on his return,
likelihood of it
In the meantime the
that there was
whatever.
no
severest
In the meantime the
banking crisis on record
agitation ■ for inter¬
bimetallism
continued
and outside the United
ideals
and
money"
States,
Another conference was
called in February, 1881, on the
joint, in vita tion of France and the
United States.
Eighteen nations
responded by sending delegates,
-
resorted
to
gold
a
basis
For
after
than
more
decades
four
the International
Monetary
Conference of 1892 there were no
of
outcome
Will
monetary
it'fail
as
conferences
have failed?
Or will it produce
which will ward off the
results
calamitous and
chaotic monetary
situation which existed after
the
First World War?
Certainly
the
conditions
and
the auspices under which the con¬
ference assembles differs consid¬
erably from any previous inter¬
congress
of the same
national
character.
The
leading
com¬
mercial nations, who are allies in
this great war, recognize fully
their interdependence in restoring
the world to stable economic and
financial conditions.
as
in the
conferences,
of
-
secret
There is not,
of several previous
case
irreconcilable
con¬
interests among them
endeavors to foster in¬
take."
Moreover,
concerns
international
the
a
present
serious
more
than
situation
previously.
It
has
the
building of the very foundation
upon
which international com¬
and financial
merce
means
relationships
resorted
"a cheap
dollar, the
to
The
dies proposed, and despite the im¬
probability * of universal accept¬
franc, and the pound were again ance of measures adopted, some¬
in a tangle.
>
r /
thing of value in restoring the
With
a
view to' arriving at some
regarding
stabiliza¬
tion, a World Economic Confer¬
ence, largely through the initia¬
agreement
mechanism
change
international
of
and
monetary
may; come from the present con¬
ference.
It would be, however,
sad indulgence in over-optimism
to say
the final result will
plish
all
closest resemblance to the former
Of it;
of
This
1933.
was
ex¬
stability
the
summer
that
be
may
accom¬
expected
,
,,
international
monetary
1892.
But it
The
was
cease
desired
of
assurances
Roosevelt would
his policy of progressively
withdrawn, and the so-called
without even
having a formal assembly.
j /
The international currency war
conference collapsed
continued intermittently for about j
two
years
more.;
Finally,
iri;
September, 1936, an armistice was'
It was in the form
tripartite agreement between
Great Britain, France- and the;
United States to use their
able
far
resources
so
as
Attractive Situations
"still-born"
a
representatives
President
that
confer¬
since
that had taken place
ences
announced.
currency.
the
/
in
policy.
of a
world
be
July 1.
can be resumed following the war.;
the> United States, Despite widespread differences of
and the new political party in. opinion regarding the plans of
power abandoned its pre-election action to be taken and the reme¬
developed
been
a
previous
existed
Sherman Silver Purchase Act had
repealed, and
will
at Bretton
convene
on
conference?
France
was
sioner
What
this
effort
Atkinson
inter¬
sent Edward
as
a
special commis¬
Europe to inquire re¬
Conference to
Woods, N. H.,
slump to the levels of its post-war
period.
An
international cur¬
rency
war
was
in the offing.
depreciating the dollar. - This re¬
quest was refused by the Presi¬
dent.
The American delegatiori
securing
of
desirous
ference, issued a call for an In*
ternational Monetary Stabilization
Gov^ynment permitted dividual advantages. There is un¬
value of Sterling to doubtedly a spirit of "give and
national cooperation,
still
new
stop put to
and silver." the gold drain from the Treasury's
have aban¬ coffers.
The project of establish¬
of the doc¬ ing international bimetallism was
no part
in apparently ; abandoned.
Practi¬
the subject. cally all the leading nations of the
the
national
elected, and his inauguration was
expected, President Roosevelt, in
line with the establishment of the
UNRRA following a formal con-
the exchange
Great Britain
The
position,
1237.
This
having the
unanimous approval of the ex¬
perts of 30 nations. As had been
or
export
27, 1944, page
is reported as
plan
flicts
Britain's
of
international
May
Great
affair.
which was re¬
associates,
hope of solving the silver ques¬
tion by international agreement
was considered hopeless.
A new
President; Grover Cleveland, a
Democrat
with
strong
"sound
■ "the
United Nations
Technical Experts' Plan," printed
in
"The
Chronicle,"
issue
of
ing Sterling to the old gold basis
in 1925, but in September, 1931,
was forced again on a paper cur¬
rency basis.
This it did by pro¬
hibiting the Bank of England from
redeeming
its
notes.
Similar
action was shortly followed by
other countries, particularly those
included in "the Sterling area."
Ostensibly with intent to favor
feeling, however, that the project money" principles, had just been
:v
.'
of
Thus Great
Britain having, after much effort
and expense, succeeded in restor¬
hopeless.
Germany, on the
refused to consider
her'termed
those which followed the
tries., ;
War
the
den;
the
* international
Monetary Conference of 1878 ac¬
complished nothing, There was a
Napoleon
altogether
metals as a monetary
base.
Thus such prominent econ¬
omists as Gustav Cassel, in Swe¬
other
a
without
on
on a gold currency basis,t a
movement spread throughout the
bimetallic basis.
not go on
while remaining
itself
European Nations took place in Washington;
The outcome was the publication
themselves:
perrria- by Secretary Morgenthau of what
the
struggled desperately to
keep the franc at its restored
standard, but the struggle was
Britain could
Great
bimetallism in the United States,
basis, since this situation would
enable the Bank of England more,
of
"greenbacks" and to carry out the
policy (enunciated by Congress)
of maintaining gold and silver
Coins on a parity, a movement was
again initiated for another inter¬
national monetary conference. In evitable
restrictions
on
inter¬
this the United States again took national trade and overseas pay¬
the lead.
Twenty nations re¬ ments, brought in its wake a
sponded
by sending delegates. series of economic and political
The
American
contingent con¬ disturbances, and finally produced
sisted of the two leading silver another condition of world-wide
advocates in the Senate, William monetary
disruptions.
These
B. Allison and John P. Jones, the threatened to become as disas¬
generally
adhered
to
by
the
larger commercial countries.
As in all the preceding confer¬
ences, the deliberations adjourned
and it is
efforts
tently drained undervalued coins
from each of the different coun¬
The conference,
■
cessful
arid South American countries to
were
arising out of international bul¬
lion transactions, which intermit¬
;
leading topic of discussion in the
United States, where, despite the
enactment of the Bland-Allison
suggested to gold supplies when it needed them ican delegates returned thor¬ tion of President Roosevelt, was
to protect its diminished reserves.
coinage uniformity
oughly
disappointed, since the organized in London during the
Some, plans
bring about
gave no indication of
Thursday, June 29, 1944
avail-'
to avoid as!
Ward & Co., 120 Broadway,
City, have prepared circu¬
lars on several, situations which
currently offer attractive possi¬
bilities, the firm believes. Copies
of these circulars, ori the follow-*
irig; issues,rmay be had from "Ward
&: G6. upon request.
!
C/ Du ; Mont , .Laboratories "A";
Merchants/Distilling;
Cfowell*
Collier Publishing;.P. R. Mallory;
GrinOral.
Instrument:
Long.
Bell
American- In- *
dustries; Mid-Continent; Airlines;
Massachusetts Power & Light $2
preferred; Majestic Radio; Magnavox
Corp.; Brockway Motors,
Mohawk Rubber, and American
Export Airlines.
V
Lumberi /Gb.t' Great
.
;
possible disturbances of in¬
ternational
exchanges,
and
to
bring about some sort/ of equi¬
librium
in
foreign \ exchange
rates.
But it was merely a pro¬
visional arrangement.
The out¬
break of the Second World War
New
York
,
~
■*——i
•
>
as
Toronto, Montreal Exchs..
Close Saturdays In Summer
TORONTO, ONT>, CANADA—
Toronto
Stock Exchange has announced
The management of the
that the Exchange will not oper¬
bring about an three years later practically ended
ate on Saturdays through the sum¬
systems it. When prospects of peace be¬
mer months,* starting July 1
arid
or
to improve international ex¬ came brighter, the fear of a re¬
probably continuing until Sep¬
and the assembly took place in change
operations.
Even
the newal of chaos in monetary mat¬
tember, although no decision has
Paris on April
19, 1881.
The peace negotiations after the First ters and international trade rela¬
been reached on the latter date.
American delegation was headed World War, and the plan of the tionship again pervaded the civil¬
The move was made because
by William M. Evarts, ex-Secre¬ League of Nations, were not con¬ ized world.
the majority of member firms are
It was in order to prevent this
tary of State.
His fellow dele¬ cerned with the question. * Such
that plans for inter¬ under-staffed.
gates were Allen J/ Thurnian, ex- matters were regarded as domes¬ calamity
The Montreal Stock Exchange
monetary
stabilization
'Senator from Ohio, Timothy O, tic problems, to be settled inde¬ national
both in Great and Curh managements also an¬
Howe, ex-Senator from Wiscon¬ pendently by each nation for were prepared
nounced
Saturday closings during
sin, and S. Dana Horton, a dele¬ itself. However, the chaotic con¬ Britain and the United States
gate to the previous conference, ditions
brought about by
the even while the war was still in a the summer,
dubious
who also acted as recorder.
stage
and
when
the
hyperinflation following the war,
.
A
The Conference of 1881 accom- together with the resulting eco-, restoration of peace was still con¬
NYSE
Firm
Changes
remote.
In ;the
olished little more, if anything, nomic1 and political disturbances, sidered
early
than its predecessor.
The New York Stock. Exchange
It was, for and particularly the disruptions months of the present year, fol¬
the most part, a debate on the of foreign trade and international
lowing the publication of the has announced
that: the interest
relative merits of monometallism financial relationships, again in¬ Keynes (British) and the* White
serious attempts to
agreement
on
monetary
,
.
^
and
bimetallism, with ardent ad¬
vocates
ver
on
both sides.
The( "sil¬
question" continued to be the
,
dicated
the
mechanism
stability.
necessity
to
for
some
foster, monetary
Following
the
unsuc¬
(American)
and
pjans, an informal
unannounced1 conference of
representatives
of
the
of the late Thomas Hitchcock
in
Lehman; Brothers, New Y ork City,
United 'ceased
as
of June 17th.
Volume 159
THE COMMERCIAL & FINANCIAL
Number 4294
>
1938, exclusive of investments in.
Analyzes Britain's
of Payments
sented
U.
railroad
S.
contracted v
and
a
bonds,
debt of
and
stocks
war *
,
£1,500 millions, equivalent
$6 billions. Though the
country. yyy y ; y y'yy;' y~'':' ft*
figures giveft for individual coun¬
>
Britain's Short-Term Debt - •
tries may not be precise, it will
Over £1,5 Billionsyy^yyy: be noted that between 1939 and
least
# 4,250
.
about
to
.
■
) The growth of Britain's shortCountries is compiled by the
roughly about the same aggregate
Bank
fable.
"It seems," continues the Bank's
Stering Area—
India: Reserve Bank__—
'
:
Interest-free
Canada:
Eire:
•
loan
Currency Com. and
<
Dec.
Dec.
1939
1941
1942
1943
£86
£207
£358
£644
44
,159
159
75
*
100
,125
1147
;
Irish Banks—
Reserve and
Africa:
South
Reserve
Trading Bks.
13
—8
Bank
48
63
82
33
35
1
13
§10
§23
67
$15
,
/•
Trading Bks.
§5
Currency Board__—$12
Currency Board_„_____$3
Palestine: Currency Bd., &
West
Africa:
East
Africa:
Currency
Iraq:
•f
Sterling
Total
-
'
.
$16
106
12
22
+32
£573
£953
£1,384
*
■
£265
,
$23
$9
83
;
v..
Brasil
do
Banco
54
19
Central Bank
Argentina:
Brazil:
Area
Countries—
Other
$17
$4
53
<
22
6
National Bank
Board
Egypt:
•
60
60
60
20
35
Bank_„
Commonwealth
New Zealand:
i
H30
*
.
4
invest¬
than
the
Total
Dollar
Equivalent
£265
£573
£972
£1,472
$1,060
$2,292
$3,888
«$5,888
§March, 1940,
—
V
'
.
of British overseas invest¬
absence of complete data, the liquidation
the
Note—In
Africa, £155 millions;
be estimated as follows: India, £350 millions; South
£145 millions (as reported up to the end of
may
1941);
States,
/United
.
respectively.
and 1943
ments
-(September, .1943.
$As of the middle of the year.
„ J Estimated
•
available.
"Not
•-
1942
£185
Canada,
millions; Egypt, £14, millions; Argentina, £23 millions, and Australia and New Zealand,
about £10 millions; total of above, £878 millions.
In addition securities and direct
worth
investments
about
companies
insurance
July, 1941, againet Reconstruction Finance
'
is understated.
It
tes
not
include, for example,
balances of the Belgian Congo and
Iceland—both sterling area coun¬
tries—nor those of the Dutch and
total
"This
French possessions
sterling
Nor
does
sterling
the
non-sterling
area
countries, such as Canada,
Sweden,
Turkey,
Portugal, or
sterling earnings and compensa¬
tion for shipping losses' of the
Norwegian, Greek and Dutch mer¬
The Bank of Por¬
owned Indian enterprises.
"In
but British sources esti¬
that in the post-war period
lions,
mate
this
of
reduction
income
the
ex¬
war Problems of the Conservative
lished
last
a
of at least £200 mil¬
in the immediate
year
period, which must be
made up by a greater volume of
exports of merchandise and ser¬
vices. ./,»
'-';i
' yy y* ftft" fty
post-war
_
Post-War Implications
"The
which
accumulation
the
aggregate close to £2 billions
($8 billions) by the end of this
may
year, poses one
lems
f he
-
of the great prob¬
of the
post-war period.
If
abnormal sterling balances
.
built
liquidated
to be
purchasing
London
in
up
are
and. the
Great Britain must achieve
While
substan¬
power
vices
the
to
of
rest
world.
the
a sur¬
armed forces have
in other credit items in her inter¬
British Gov¬
into special
has entered
ditures of
been credited to India in
Reference
with various nonsterling area countries whereby
considerable
latitude
of : with¬
drawal is permitted.'In some cases
residents of such countries; are
allowed free conversion of their
normal sterling balances on de.mand at the usual rate, while in
the
conditions
are
more
complicated and restricted.
•
.
v
gold and dollar as¬
"As to the
countries,
the published figures credit them
■with about $1,000 millions of gold
sets of the sterling area
at
the
end
of
1943.
far
By
has
sterling.
made
been
to the recently
above
inaugurated policy
of setting aside part of the dollars
and purchases in
post-war
"Even
arrangements
others
our
a
into accruing from U. S. expenditures
inconvertible
wholly
year.
the
India for Indian
uses.
if
in
will
creditor position.
a
place,
from the
emerge
war
A similar
shift is taking place in South Af¬
rica
which
has
been
in London to pay
tion
of her
debt
selling gold
for the repatria¬
overseas
Government
£100 millions.
of about
addition, the country has
chased
than
more
£50
millions
worth of gold shares since
according to
a
1939,
London Economist
estimate.
"Last
In
repur¬
\ •y
ft>'ft-
September Egypt decided
holder of these disclosed to convert its sterling debt into
gold holdings was "the Union of internal loans, and in the course of
operation presumably
£14
-South Africa with about $700 mil¬ this
lions to its credit. The $275 mil¬ million of this debt held in Lon¬
don
has
been
repaid.
lions held by the Indian Reserve
Bank was a part of the currency
largest
..V
backing.
'
Reduction
*
addition, London has ac¬
quired some amount of gold and
"In
of Long-Term
Investments
1
"In
addition
to
this
increasing
,
dollar assets in exchange
for ster¬
ling from the sterling area coun¬
tries and from the exoenditures of
American troops in Great
Britain.
huge short-term debt, Great Brit¬
ain during the war has liquidated
some
£1,000 millions of her
over¬
long-term investments. Be¬
of these changes, the Chan¬
cellor of the Exchequer in pre¬
senting the current budget on
April 25 warned that Great Brit¬
ain will emerge from this war, for
seas
cause
Repatriation of Sterling Area
.
/
r
*
Debts
•
-
largest short-term sterling
Britain to In¬
In 1943 it was increased by
"The
debt was owed by
dia.
almost
around
£ 300 millions and was
£700 millions at the end
of March, 1944. With the .repatria¬
tion
of
£350
.Government
millions of Indian
sterling obligations,
.
the first
no
time in modern
longer
"Great
vestments
Lord
a
history,
creditor nation.
Britain's
were
It
above.
Kinderslev
value of about
"It
tude
£3,725 millions in
*
increase her
■
y j
,
the
magni¬
of this problem that has led
discussion
to
'
.
concern
over
in Great
Britain
of
the
possibility of more extended
use of Empire trade preferences,
bilateral agreements, cartelization
of industry, greater participation
by government in foreign trade,
and other devices and policies to
stimulate exports and enable the
country to pay for the imports of
food
to
and
raw
maintain
materials
essential
the
people and pro¬
It explains also
why
other
sections ef British
opinion which still adhere to the
traditional British philosophy of
liberal trade policies are so much
interested in monetary stabiliza¬
tion \ plans > regarded
as
holding
forth hope of greater international
cooperation in expanding trade
and
as
providing assurance of
some degree of financial support
in bridging over periods of inter¬
national adjustments.
*
ft,
vide employment.
.
"Not
all
of the vast
accumula¬
tion of
sterling balances is, how¬
ever, likely to be a problem. The
main task will be in the settling
of India's sterling claims amount¬
ing to almost one-half the total.
But
India
■
,
as
well
as
other
coun¬
Copies of this study may be had
from the firm upon request.
Interesting Situation
able
an : interesting
report
on
Transamerica Corp. Copies of this
report may be had £rom the firm
upon' request.*f. -fty .<ftyft! y'-ftft.
purposes,
balances
in
for
clearing and other
especially if post-war
developments
are
such
as
to ere-
if it
up-move
36;
a
down
stock
in
a
passes
move on
through
breaking
32.
Readers
long of two
are
National
Gypsum. The former was
bought at 221ft>efdatter at 93A.
stocks,
Crane
Crane
which
is
and
273A
about
now
about
is
in sterling.
confidence
After
all, London was one of the great
international money markets be¬
fore the war—for many years the
market
seems
no
great international money
in the future.; Sterling
balances in
of what
excess
want to
reflected
is
ances
well
as
the
in
and
sterling
pended
vy y
,,
•
* :
For the time being market
fastened on Chicago.
Up to this writing it looks like
Dewey will be the GOP
that Roosevelt will
granted
again,
run
puring the months to
there
will
be
come
considerable
pointing with pride and view¬
ing, with alarm by both par¬
The fact there is
war
a
will
probably be relegated
to second place, unless we
have outstanding new suc¬
on
cesses or severe
setbacks.
yy;yy;yyyyy*
v
More next
Thursday.
unex¬
—Walter Whyte
y
[The
views
expressed in this
necessarily at any
time coincide with those of the
Chronicle.
They are presented as
article
do
not
those of the author only.]
bal¬
dollar
accumulations of
as
United
the
*
'
;
eyes are
gold will unquestionably create a
huge demand for goods of all
types, particularly
in the first
post-war years, that seems cer¬
tain to tax the export capacity of
both
.
y;
carry
.
that
J;
y;
*
•
coun¬
will be
drawn upon as a more normal
flow of goods is restored.
The
tremendous shortage of goods that
has grown up during the war and
tries "will
i.'
she will continue
doubt but that
a
there
and
greatest
to be
'
Sje.
ties.
ate
States
LAMBORN & CO.
WALL STREET
99
the
and
NEW YORK 5, N. Y.
United Kingdom to the full.
>.
"A
difficulty
of
in the
course
British situation will be in meet¬
SUGAR
ing the extra strain upon the bal¬
ance of payments in the interval
of industrial reconversion and re¬
of
stocking
before
foodstuffs
outflow
a
of exports
lished.
It
is
Britain
will
satisfactory
be estab¬
expected that Great
have
Can
to
Exports—Imports—Futures
and
materials
raw
retain
■
DIgby 4-2727
some
form of
exchange control and ra¬
tioning of imports, at least dur¬
ing the transition period;
and
there may be need for other meas¬
ures
such as the funding ' of a
portion of the sterling balances
into long-term obligations, per¬
haps with the aid of loans ex¬
tended from this country.
'
"
Established
1856
H. Hentz & Co.
Member9
New
York
Stock
prob¬
New
York
Curb
Exchange
lems cannot be regarded as mat¬
New
Cotton
Exchange
"The
ters
solution
solely
of
these
British
of
or
even
concern.
The
United States and all other
coun¬
British
tries
Empire
are
interested
established
a
in
seeing
healthy
flow
York
Commodity
C h 1 c
a
g
And
held
they
may
be.
markets,
Trade
Exchange
-■
Exchanges
Y. Cotton
NEW
Exchange Bldg.
YORK 4, N. Y.
in
sterling to seek goods in the most
advantageous
of
of
N.
now
Cotton
other
trade both into and out of Britain,
power
Inc.
Exchange,
o* 'Board
Orleans
New
Exchange
re¬
purchasing
*
isolated
an
choice. It is taken for
Bldg.,
San Francisco, Calif., have avail¬
H. R. Baker & Co., Russ
Empire will be wanting to main¬
substantial
is
group that doesn't act any too
well. Issue would signal an
& Co., 76 William the rest at 12.
Aigeltinger
Street, New York City, have pre¬
pared an interesting study of R.
Hoe & Co., Inc. common stock.
and in freeing the large volume of
-
it
high enough
for the time being. Suggest
taking half profits at 27 or
esting study may be had from the
better, stopping the rest at 25,
firm upon request.
■'
National Gypsum is currently
about 133/4.
Suggest partial
R. Hoe Interesting
profits at 14 to 15 stopping
tries both within and without the
London
by
riomiuM
;
-
is
tain
the
estimated by
has been
exports in the post-war period by
at least 50% compared with pre-,
long-term in¬
at
mentioned
as
Britain will have to
estimated
-
accounts
some'British authorities that Great
accumula¬
tion of sterling were to take
India
national
war.
further
no
memoranda
to
Great
by
huge short-term debt,
basis of the table,
a
on
is. with, the United States, the pro¬
ceeds together, with large expen¬
other currencies. The
.
of payments
lions
January,
there
is
an adverse balance
be
change equivalent to some $500
millions; some of which undoubt¬
edly is in' sterling.
"In considering these figures, it
should not be thought that ster¬
ernment
•
to
running at the rate of about £75
a
according
issued by Bittner & Co., 80 Broad
,
outside of India continue at
millions
sinecure) but its
a
„
Street, New York City.
Copies
of
of these memoranda, into which
the story of the change in Brit¬
are incorporated news of recent
ain's international position. With
developments
in the situations
the enlarged merchant marine of
and earnings, may be had from
this country, of Canada, and some
Bittner & Co. on request.
V
other countries, many doubt that
Britain's shipping earnings can re¬
cover to the pre-war levels.
This
Fashion Park Attractive
may also be .true of commissions
A detailed
study of Fashion
earned by brokers, banks and in¬
Park, Inc., is contained in a spe¬
surance companies, whose business
cial circular pre*Mtred by Simons,
may be diminished if exchange
Linburn & Co., 25 Broad Street,
and trade controls are maintained.
New York.
Copies of this inter¬
"As
the
Committee on Post¬
which they represent re¬
leased, it will have to be done, in
the long run, through an expan¬
sion of British exports and ser¬
penditures on Indian defense and
payments to the Indian troops
a high
level.
India's export surplus is
|,
from investments is only a part
plus in her post-war international
payments, despite heavy shrink¬
age in income from foreign .in¬
vestments and possible reductions
being
'
.„y
British
,
Gary Railways common
and
Memphis
Street
Railway
pre¬
ferred offer interesting possibili¬
reduced to about
ties,
\. ft 'fty :vy> :■
be
may
tial portion of the export surplus
ling balances of non-sterling countries are 'blocked' in the sense of
"
meantime
the
is seldom
-
• ex-
foreign
alone " holds
tugal
1
Indian
public debt has
been practically exhausted.
Thus
there is no longer any check on
the accumulation of sterling funds
many
chant marines.
•
of
tion
included in the except " perhaps repatriation of
this spring. British investments in private-
include
it
of
the possibility of further repatria¬
(Continued from page 2696) y
Canada
-
Britain of
until
areas
'.'balances
Corporation loans in the United States.'
Borg Warner has no old
(though this
stock ahead of it
.
r
as earnings of branches of British
about £50 millions were pledged in
millions,as well
country, valued at
£125
in this
Whyte
Savs—
.
likely
'
.
-
stand out:
Dry—28; Continental behavior seems to point to
Oil—30.
V
higher rather than lower im¬
the occupied countries of Europe
}|{
>tc
mediate prices. Stock's sup¬
and the £400 millions in South¬
eastern
Asia has .been lost, .,at
But all stocks don't show port point is 38. Anything it
least temporarily. * Of the remain¬
tops. Some of them actually does above it is so much
ing investments, those of Latin
act as if tHey are in the first gravy, ftft'y.ftftft'ft yfty:
American government and rail¬
y.
* '/v. *
ft *ft'ft ftft V;
way securities in particular (over stages
on
a new
advance.
£6.50 millions) have yielded little
Distillers Seagram is an¬
return. In the last pre-war years,
other which looks ready to
1936-38, the income from invest¬ v :; Rails Offer Interest y yft
shove up again. But in its case
ments averaged about £200 mil¬
Party estimated in a report pub¬
Grand
Walter
indicate.
figures
Moreover, the income from the
£250 millions of investments in
"The
Dec.
repre¬
income-producing
£ 125 millions.
sterling)
Dec.
Malaya
Australia:
LATIN AMERICA
AREA AND
pounds
of
millions
(In
estimated by Dr. Kaldor.
ances as
STERLING
OP
BALANCES
short-term bal¬
of
accumulation
in the accompanying
LONDON
shows
1942 the table
end of
the
individual
to
indebtedness
term
holdings
Among these the following
Tomorrow's Markets
greater proportion of her
a
ments
Letter, "on the basis of published
data, unfortunately far from com¬
plete, that at the end of 1943
London was a debtor on shortterm account to the extent of at
her
£l,i000
of
freduction
in
millions
actual
.(Continued from page 2692)
ing the first World War, Britain
liquidated about ,£900 millions of
her foreign investments,; largely
The
Eire.
2709
CHRONICLE
wherever
CHICAGO
DETROIT
GENEVA.
PITTSBURGH
SWITZERLAND
2710
THE COMMERCIAL & FINANCIAL
The Boren Bill
(Continued from
exception
of
Section
made
fraudulent
State
and
Federal
municipal
In
crimes.
introduced
was
sections
be resorted
can
securities
manifest intent of Congress to de¬
a
bill
prive it of regulatory jurisdiction
later
be¬
over
the Securities
NORTH and SOUTH
transactions in public secur¬
burdensome provisions of the bill,
of Which the State and municipal
provision
officials had complained.
the Securities Act
giving
But
like
because
un¬
of
1933,
inapplicable to
State and municipal securities un¬
less a section expressly declared
that it was applicable, the Securi¬
ties Exchange Act of 1934 was
made applicable to all securities
unless
several
the
sections
thought
was
SEC
the
it
a
Y, w.
it
it
regulation.
be repealed
because it attempts to give to an
administrative board the power to
define
crime, and for that rea¬
in my opinion, it is unconsti¬
son,
a
tutional.
edly
The courts have repeat¬
held
that
crimes
be
must
defined with reasonable certainty
ex¬
pressly provided that they should
by
toe inapplicable to State and mu¬
the definition of crimes cannot be
nicipal securities.
left
in
the
This difference
technical
in
manner
which
Congress exempted State
municipal bonds from the
and
two
statutes
for
which I will point out.
reasons
In
unfortunate
was
1936, the SEC again sought
the legislative
I
to
body and that
administrative
an
often asked
am
officials
are
agency.
why municipal
much interested in
so
the Boren Bill if the Federal
se¬
curities legislation does not apply
to States and to the municipalities.
The
is
reason
that the
State
and
from Congress the power to regu¬
late transactions in State and mu¬
municipal officials
nicipal
efectively controlled by Federal
legislation which nominally ex¬
securities.
nied it that
enacted
an
curities
Congress
de¬
but instead it
power,
amendment to the Se¬
Exchange
that
fraudulent
such
securities
Act
declaring
transactions
ip
should
constitute
Federal crimes and giving to the
SEC the power to define what
fraudulent transactions. This
were
merely
was
and
of definition
a power
it
evidently was not satis¬
factory to the SEC because, in
1938, the Commission presented
to Congress, through Senator Maloney, a bill to amend the Act of
quite
are
con¬
scious of the fact that they can be
empts
Any
them
from
its
which
commerce,
through two
be
can
or
provisions.
bottlenecks,
more
controlled
passes
at
any
of
one
those points. The State and mu¬
nicipal corporations of the country
finance
themselves
through
issuance of bonds which
to
the
investing
there
commerce
sold
In
this
two
are
the
are
public.
bottle¬
necks, first the issuance of securi¬
ties by
the municipalities and,
second,
the
powers over transactions in State
reoffering of those
securities by the investment bank¬
ers to the
investing public. If the
and
Federal
1936
so
to
as
give
it
regulatory
municipal securities. Congress
refused to pass that bill.
Nevertheless
acting
;
■,
under
,v
the
power to
a
define what constituted
fraudulent transaction, the SEC
recently proposed
Rule
as
clared
rule
a
X-15C1-10,
that
known
which
transactions
in
de¬
State
and
municipal securities must be
conducted in a specified manner
under the pretext that any other
method
constituted
transaction.
a
fraudulent
This, of course,
was
regulation in the guise of defini¬
The proposed rule met with
a storm of
protest and to date it
Government
control
the transaction at the point of the
reoffering
of
investment
the
can
bonds
bankers, it
by
can
the
com¬
pletely control the entire financial
operation. For instance, if the SEC
should undertake to rule
that, be¬
fore
reoffering State and munici¬
bonds, the dealer — not the
issuing body but the dealer—must
file a registration statement with
the SEC, no dealer could take
delivery and pay for any bonds
pal
which
he
had
purchased from
a
tion.
municipality until he had obtained
has
from the public officials all of the
data necessary to secure registra¬
not been promulgated.
The
proposed rule, however, came to
the
attention
Boren
years
of
Congressman
Oklahoma, who for
of
has been
House
member of the
a
Committee
on
Interstate
and
tion
of
ceeded
the
in
istered.
actly
for sale.
upon
and he wrote
a
letter to Mr. Pur-
cell, the Chairman of the SEC,
inquiring where.the Commission
found its authority to
promulgate
such a regulation with reference
to State and
municipal bonds. Mr.
Purcell answered that
suc¬
reg¬
effect would be
In fact every burden
put
the dealer in reoffering the
securities would be passed back
to
the
issuing municipality.
The
are
the
the
States
and
municipalities
very conscious of the fact that
control of their-finances by
Federal
Government
letter and
asserted that the Commission had
the power to promulgate the
tion of the States and
ulation
and it is for that
reg¬
under
the
section
of
the
Securities Exchange Act giving it
the power to define fraudulent
transactions
obscure
which
and
under
certain
language in other sections
had
not
expressly
inapplicable to State and
municipal bonds. Thereupon Con¬
gressman
bill, the
declare
Boren
introduced
his
of which is to
the Securities Ex¬
purpose
that
change Act of 1934 shall be in¬
applicable to State and municipal
bonds
which
excepting those sections
expressly declare that they
shall apply to such securities. In
other words it is proposed now to
make the Securities Exchange Act
of
1934 conform to the Securities
Act of 1933 so far as the mechan¬
ics
result in the
ties
of
to
the
would
complete subordina¬
Federal
municipali¬
Government,
that State
reason
legislatures, organizations of pub¬
lic officials and individual
public
officers have been
calling upon
Congress to enact the Boren Bill.
been
made
ex¬
though the municipality
itself required to register
the,
securities before advertising them
the Federal
legislation,
had
The
as
and
was
Foreign Commerce, the Com¬
mittee which has jurisdiction over
securities
bonds
getting the bonds
To those of you who
public officials
I want to say
nor
are
bond
neither
dealers
part in the struggle now being
waged to maintain the autonomy
a
of
State
and
local
government.
The great centralization of
power
which has taken place in the last
twelve years has reached
ous
proportions.
into
A
bureaucracy
existence
which
is
come
continu¬
ally
usurping powers which the
people have never granted to it.'
exemption are concerned. The Constitution of the United
Thus it will only be those provi¬
States conferred only certain lim¬
sions which Congress has deliber¬
ited powers upon the Federal Gov¬
ately intended to make applicable ernment and
expressly declared
to State and municipal bonds that
that all powers not granted to the
will apply to such
securities, and Federal
Government
were
re¬
no
distortion of the language of served
to the States respectively,
& 84
.
Britain,
time ago,
following the Schacht pattern of
askimarks, put into force the so-
sistent
ica, and I think the world
eral, considered it as an
are
an
usurpations
of
power
the
by
The
called
Sterling bloc,
in Amer¬
we
in gen¬
central
emerg¬
bureaucracy.
States,
however,
provide
focal ency measure necessary to carry
Britain along during the extreme
points around which the people1
can
rally to protect themselves
against any threat of autocracy on
the part of the National Govern¬
we
to
.
some
of
pressure
preference
a
period.
war
The
given to the Empire
the
restrictions
on
movement,
other trade, and the arbitrary fix¬
a lot of talk about
rights nowadays. That is a ing of exchange rates so as to
groove commercial movement in
catch phrase which seems to
me,
to obscure the real issue. In real¬ the direction that suited Britain,
ity what is at issue is the people's were suffered and tolerated by all
rights against the National Gov¬ nations, including America, and I
ernment. The people assert these think many of the nations of the
rights through the States because British Commonwealth, because in
of helpfulness it was
the States are the convenient, or¬ a, spirit
ganized instrumentalities through thought that this sacrifice was
people can assert the
rights which they have withheld
necessary."
from the Federal Government.
question
which
is
the
not
It
surprising, therefore, that
Mr.
-
;
.
>
.
.
Iglehart next considers the
of
regulations
currency
and points out the defects of
aged
currencies
without
gold
backing as a means of effecting
rights. The so-called States' rights
issue is always a conflict between
international
political group
in control of the National Govern¬
ment,
regardless
affiliations
We
of
the
of
that
group.
today confronted in this
are
government
with
two
mutually
is what
Principle. You
antagonistic principles;
I call the Verboten
all
political
recall
that
American
one
before
travelers
the
war
amused
were
by the fact that nearly everything
in Germany was verboten.
This,
however,
is
characteristic
reaucratic government.
of bu¬
It is based
the principle that the gov¬
regulate the daily
upon
ernment should
and
can
exchange of com¬
modities, and, particularly, as a
medium of establishing "a trading
area."
-.-V. v'v/.7
7< ' , ■'
,
Common¬
equal
been
should
build
up
our
to
.our
for
our
are
exports.
We have
taking too much gold in pay¬
ment
the
:
place, I believe
point where they
a
exports.
Obviously
expansion of our
export trade cannot continue un¬
less we are ready to receiye goods
in compensation.
We appreciate
necessary
;
the fact that this question has im¬
portant political implications but
.there
be little doubt that Con¬
can
gress and the nation
coming
of
daily be¬
are
more conscious of the need
making
jobs by building
more
up
our
foreign trade.. There is
greater inclination now than at any
.
time in recent generations to
buy
foreign materials to balance the
sale of our products.
"In the third place, we can
wealth and our credit for
our
tending credit facilities
which
them.
vice
entitled
are
use
ex¬
to nations
to
receive
We may render a great ser¬
the world if we avail of
to
our
great Federal- Reserve Sys¬
and of our gigantic
banking
strength to finance the movement
tem
of goods
throughout the world, to
borrowing nations
offer credit to
which
entitled to receive aid
are
and which will
loans.
In
credit
and
we
our
scrupulously
addition
man¬
it is always the party out of power
that raises,, the
issue of States'
the people and the
second
imports to
ment. You hear
States'
British
•
"In the
'Sterling Area' and to
appreciate the meaning of
"When
people, how¬
the
wealth.
about
unorganized mass.
an unorganized mass cannot
successfully .cope with these per¬
ever,
Such
can
to
export
repay
granting
wealth
our
industrial capacity by in¬
abroad in a constantly
vestments
increasing measure, tending in
this way to balance payments and
at the same time
making great
contributions, as we have made
"Economists," he points out, in recent
years, to the (industrial
"have been discussing this ques¬
development and the economic
tion of 'managed' money and even
welfare of nations throughout the
among them there is considerable
division of opinion. However, in
its
final
analysis
the
world
at
who
large will decide it.
No one
has constant international experi¬
ence
has
or
observed the steadily
decreasing value of every single
managed currency throughout the
world
contend that such
can
rencies
have
up
to
the
cur¬
present
time been particularly successful,
in fact, quite the contrary is true.
world.
This far-reaching interna¬
activity should surely de¬
velop trade of such huge propor¬
tional
tions
as
to
make possible
rela¬
a
tive' balance of payments. It should
also make available for our own
use
large part of the
a
raw
mate¬
rials
and
manufactured
goods
whose production would be made
possible through
our
assistance.
»
"The extension of credit and
the
people from the cradle
collaboration between our banks
to the grave.
You may do only The best evidence of their failure
and those of Britain and other
what the government permits you
is the fact that throughout the
great nations
may
to do and then only in the way
conceivably
world men are turning not from
bring about a basis for helping
the
government
specifies.
The the orthodox but to the
orthodox, those nations to stabilize their
American principle is quite the
from paper to gold.
currencies. In the same way, the
contrary. It defines certain types
"There
is
an
unquestionably collaboration of our industries and
of unsocial conduct which we call
greater belief in gold and in sound our transport enterprises may lead
crimes, the commission of which
to close collaboration in a
is punishable, but everything else money today than at any time in
way
recent generations. No one who that
might be beneficial to Brit¬
is permitted to the citizen, and he
watches the free markets for gold ain.
;
may live his life and conduct his
or
the black markets, who feels
"In the fourth place, we can
business in any way he pleases
the pulse of the producing and the
so long as he does not commit
help to improve and stabilize
any
of these crimes. To illustrate what selling nations of the world can transportation
services through^
life of the
I mean, under the American
sys¬
tem those few men who commit
breaches
of the
peace
are
prose¬
cuted. Under the Verboten system
would be obliged to giye
everyone
a
bond
The
to
keep the
SEC
has
peace.
presented
to Congress, or to anyone
else,
any evidence of such widespread
never
abuses in the field of public secur¬
ities as to require regulation
by a
national
bureaucracy. There is no
by the
investing public, by the States or
municipalities or by the dealers.
demand for such regulation
It is demanded
only by the SEC.
It is an instance of regulation for
regulation's sake.
The Boren Bill is
right direction.
check
attempts
It
a
is
of
usurp powers which
step in the
intended
the
*
to
SEC
to
Congress
re¬
peatedly has indicated it
not have.
should
Situations of Interest
F.
H.
Roller
a
American
memoranda
Industries,
L
on
a c
limited
U.
S.
Great
le d
demand
dollars
for
an
e
un¬
out
the
which
looked
are
as
the nearest
equivalent of gold."
monetary
upon
Mr.
Iglehart next outlines his
program
whereby
he
believes
world,
sea
in
last
the
the firm believes
circulars
may be had upon re¬
quest from F. H. Roller & Co.
transportation services
two
generations have
contribution to the welfare of the
the
world
the
consumer
and be
maintaining
"In
"we
the
most
peace
first
could
money
make
the
in the world.
place,"
offer
greatest
influential in
to
the
he
says,
world
a
of permanent and absolute
value in terms of gold and
credit,
which money, within a reasonable
time could be made convertible.
Our
gold,
credit
are
the world
our
a
wealth
basis for
and our
offering to
and
delivering
in
another
it
exceptions,
has
not
this
been
whole
handled
to
corner
has not been done too well.
have been slow and with
Ships
some
problem
too
any
well.
-
"Having built a great fleet, in¬
cluding the C-l, C-2 and C-3 types
that
are
the
best
designed and
freight ships that
been built in quantities
standard of value that
most
the whole world would believe in.
have
To
by any nation, and having had the
experience of handling a great
a
accomplish
necessary for
our
this it would be
us to put
and to
financial house in order.
the
easy
the
a political problem of no
solution. It could, however,
accomplished.
We are in
position to offer to the world
a
a
sound money.
"This money should be allowed
the
freest
possible circulation
so
which
their
currencies
tied and which
and
This,
might be
might give a fair
adequate measure of value.
on broad lines, is in the in¬
terest of all nations of the world,
efficient
ever
merchant fleet
This is
on
all
the
seas
of
world, the United States, when
war
ceases, will be prepared
to
give to the world a better
transportation service than was
formerly provided. What is tr^ue
on
If
the
be
sea
is also true in the air.
intelligently handled, this
to
which
the
luxurious
world
can
Lumber
attractive at current lev¬
Copies of these interesting
from
few
a
made very little progress. The im¬
portant service of taking the fruit
of a man's labor in one corner of
America
rine
els.
Apart
of
passenger ships that mean little
to the merchant marines of the
Christy Clay Products, Indiana that the nations of the world
Limestone,
and "United
States would have a stable element to
appear
world.
gold and for •construction
be
&
Co., Inc., Ill
Broadway, New York City, have
prepared
doubt the fact that there is
keep
'
tremendous
has
includes
world's surface, is
„
danger¬
Federal
which
2691)
page
including
a
term the two ideas
involved,
namely Sterling and Area, which
of course bear directly
upon one
another, may be considered sep¬
arately.
3-JI137
to the people. The
or
that it is important
to you because this bill
represents
of the
western
the
as
of
should
System Teletype: RH 83
Telephone
area,
40%
of
Spain, along
dependencies.
overseas
This
better
RICHMOND. VIRGINIA
Bell
countries
excluding
be called
CRAIGIE&CO.
necessary
construed
power
Moreover,
made
was
Europe,
MUNICIPAL BONDS
of
the
with their
ities.
made applicable to
which
(Continued from
include
CAROLINA
Exchange Act
The bill also repeals so much
1934, and, again, this bill was
State and mu¬ of Section 15c of the Securities
nicipal securities. Again the State Act of 1934 which gives to the
and municipal officials protested, Commission the power to define
and Congress determined to ex¬ what shall constitute a fraudulent
empt such
securities from the transaction.
The repeal of this
came
"Imperial Preference" And ;
"Sterling Area" Condemned By D. S. Iglehart
to
by the SEC in order to defeat the
Thursday, June 29, 1944
British Proposal Of
on
VIRGINIA-WEST VIRGINIA
in
1934
which
Wire Bids
page 2694)
other
which
17,
transactions
Explained
CHRONICLE
and
not
the
also
a
air
only
ma¬
development should
a
welfare
great contribution
of
the
world
but
stabilizing influence of in¬
importance.
calculable
"In the working out of our des¬
tiny there are endless opportun-
Volume
Business—Investment
,,
Plan Today For s
Calendar Of New Security Flotations
Street,
v'i;4':%-;v'^FFERINGS,;:;;"^;: r-V'V'
J
Mass.
AMERICAN [BAKERIES
(Continued from page 2705)
a
per sh^re.
1,717 shares are being
currently offerfe<j to a group of officers ano
at $21.50 per share under a
separate registration and prospectus.
Net
proceeds
($404,750)
are to be
used for
working
capital.
Kirkpatrick-Pettis Co,
are
underwriters.
Piled March 30, 1944.
Details in "Chronicle," April .6, 1944.
v
June
Offered
9,
1944 by ; Kirkpatrick-
As an ex¬
Gypsum
Co.,
which I head up, will be ready to
supply certain basic materials as
statements
wartime
their
has
use
whose »: registration
filed less than twenty
were
mineral
vapor-proof
a
fireproof and in¬
cost,
a crack-resisting' base for plaster
and a low-cost washable paint that
will make sanitary and colorful
interiors. These are not new, the
sulate walls and roofs at low
prodmct has simply been
improved under pressure of mas|
production for military use.
pre-war
POWER
for such planning. But the
period
must be
ap¬
proached realistically with a phil¬
osophy of hard work and tested
rules.
Each of us : will literally
post-war
roll
to
up
i
"In this there will be
for
would
who
those
with
1944.
,
little room
change the
system,
but their efforts will
lead to
will find they
form of fascism—the
you
some
thing that our boys, you son
mine, are fighting to destroy.
"You
and
I, and 137 million
•others are America, and we can
•make this country what we will.
-very
and
'
is
"It
greatest opportunity
^prosperity.
Then it
quicker a widespread
^program begins, the
available
be
will
•
our
to jobs and
follows the
construction
sooner jobs
encouraging
home,
not only make jobs
but will make better citizens,
As
owner hf a home, he pays taxes
'and assumes an obligation in the
community., And .he- will then
take a greater interest in local,
State and Federal governments.
for
ities
a
States and
•
mutually
between
helpful
co-
United
the
open
Britain.' It is desirable
any
issued
4%
the
of
purchase
to
pursuant
pre¬
to
cash,
share
filed
making
the
for
company.
Address—Port
p.
•::••/
i.
:
Manila,
Building,
Area
.,
Business—Gold mining.
.V/v
underwriter.
Offering—Price to the public is $1.62Ms.
Proceeds—No part of the proceeds from
the sale of the American depositary cer¬
tificates
The
be
to
shares;.are
trusts/to Allen & Co.
Registration/Statement No. 2-5397. Form
.y :':v;y
(6-15-44).-
shares
of
BENGUET CONSOLIDATED MINING CO.
trustee,
M. .HauBsermann,
has filed
the
shares
of
Run " Farm,
Address—Pond
F-l.
(6-19-44).
SUNDAY, JULY 9
Address—141
Chicago,
111.
■
New
Rich¬
statement.
Proceeds—See
foregoing
registration statement.
Registration Statement No. 2-5398. Form
C-2. (6-15-44)..:1'
and
•
products and feeds.
Underwriting—Harriman
If
measure.
the
policies
of the
British Commonwealth of Nations
follow the course so wisely
cated by
f
advo¬
Mackenzie King, Prime
Minister of Canada, this collabora¬
tion will come as the
sequence
natural
con¬
of the inclusive charac¬
SEARCH
has
CORP.
statement
for
filed
of
such
practice
the
ence
and
policies,
whereas
if
of imperial prefer¬
still
more
exclusive
philosophy of the Sterling Area
are
adopted, then serious barriers
to mutual
tual
understanding and mu¬
benefit
will
have
been
;• up."
set
a
management
RE¬
type.
preferred stock series, income series, stock
industrial stocks series, low-priced
common stocks series, and 1,000 shares of
series,
Harris,
&
Hall
Wisconsin
and
Underwriting
Research
—•
Corp.
named
Securities
amendment.
of
capital -and
the
of
will
used
business
S-l.
a
registration
shares
of
FUNDS,
INC.,
statement for 2,trust-^full
certificates of participation,
todian Fund,
series S-2.
sale
the
from
added
be
of
working
to
future developments
require.
as
may
by
Keystone Cus¬
will
be
amendment.
Offering—Price
filed
registration
a
Rule
a
registration statement for 27,736 shares
cumulative
preferred
stock,
par
$100,
and 50,000 shares
common
par
and outstanding
The shares registered are
and do not repre¬
by the company.
Underwriting—Underwriters are
A. G.
Becker & Co., Inc., Chicago; Merrill Lynch,
Pierce, Fenner & Beane, New York; H. M.
Byllesby &
Co., Inc.,
Chicago; Central
Republic
Co.,
Inc.,
Chicago;
Graham,
Parsons & Co., Phila.; Hallgarten & Co.,
New
York;
Shields
& Co.,
New York;
Stroud & Co., Inc., Phila.; A. E. Masten Ac
sale -of
and stock, together with such addi¬
cash
from
treasury
company's
from
as
required
following
Oct.
due
1952; $17,856,000 first and re¬
1,
5%
mortgage
funding mortgage gold bonds, series B,
due
June
gold
income bonds, series A and series B,
Nov. 1, 1949; $392,000 Canal & Clai¬
due
borne
1955; $4,625,380 6%
1,
Railroad
Co.,
Street
first mortgage
The total
required, exclusive of accrued interest and
Charles
Railway
Co.
gold bonds due Jan. 1, 1952.
4%
dividends, is $44,039,275.
150,000
statement for
Keystone
participation, for
Fund, series B-2.
j
Address— 50
Congress
Custodian
Boston,
i
Street,
Mass...■.
Business—Investment trust.
.
Underwriting
—
Custodian
Keystone
Inc., is named sponsor.
Offering—At market..
Funds,
•
Registration Statement No. 2-5411. Form
(6-22-44).
S-l.
Louis; Singer,
Frank B.
and Newhard,
Cook & Co., St. Louis.
Filed June 9, 1944.
Details in "Chronicle," June 15, 1944.
v
Edward D. Jones
a
.
OF OFFERING
MISSISSIPPI VALLEY PUBLIC
present below a list of issues
registration statements were filed
days or more ago, bat whose
offering dates have not been deter*
We
twenty
mined
or
are
unknown
to
statement
for
INC.,
600,000
for
Keystone
Custodian
series B-4.
—
50
Congress
Street,
Boston,
Mass.
AMERICAN
as.
—
trust.
Keystone
000
.
i
000
registration statement
a
1959,
The exchange offer will expire
May 20.
Underwriters are
Co., 5,750 shares;
Wisconsin
Co., 4,750; Morris F. Fox & Co., 1,500;
Loewi & Co.. 1,500; Bingham, Sheldon &
Co.,
1,000 all of Milwaukee, and A. C.
Tarras & Co., Winona, Minn., 500.
Filed
April 25, 1944.
Details in "Chronicle,"
net
of
participation,
FUNDS,
INC.,
50
filed
be
offering
Filed
"Chronicle,"
principal underwriters.
Details
1944.
1944.
in
Congress
Serurities
will
the
will
by
at par.
not sold by company
issue
through
sold
be
offered
be
rison-Knudsen Co., Inc.,
of
INC.,
CO.,
has
registration statement for $200,000
5% preferred stock and $300,000
L 6% preferred stock, both $100 par
K
value.
Wegener
Mor-
Any part
officials
& Daly,
Idaho, as underwriters.
Com¬
amendment filed June
10
proposes to
offer $100,000 4 % series F
demand certificates and $100,000 4% series
Y certificates at $100.
Proceeds for work¬
Boise,
Inc.,
in
pany
an
capital. '
ing
Filed
31.
Feb,
&
Co.
1943.
1,
PRODUCTS,
debentures,
1951
and
Pacific'Co,
named
of Calif,
underwriters.
Details
in
and Wyeth
Filed Dec. 20,
"Chronicle,"
March
9,
1944.
Details
in "Chronicle," May
May 23.
FINANCE CORP. filed a
registration statement for 14,000 shares
4% non-cumulative series 2 preferred, par
EQUIPMENT
Street,
Boston,
PUBLIC
SERVICE
CO.
OF
OKLA.—$1,-
5%
cumulative preferred stock
$100) and $6,600,000 first mortgage
bonds, series A 3%% due Feb.
1, 1971.
Stock is for exchange of $6 preferred of
500,000
(par
Southwestern
sidiary)
on
Light
Si
Power
Co.
(sub¬
share for share basis.
Bonds
for sale at.competitive bid¬
will be offered
ding.
Registration effective Jan. 10, 1944.
1943. Details in "Chronicle,"
Filed Dec. 21,
for Keystone Cus¬
Fund, series S-l.
—
are
31,
capital.
CUSTODIAN
a
series
public
INC. — $300,000
series of 1943,
11,400 prior pre¬
ferred shares (for purpose of conversion).
Proceeds to retire bank loans and working
due
a
Address
Mass.
Weeks
MORRISON-KNUDSEN
filed
by
The
gether with
additional funds from the
company's treasury, to repay a $3,000,000
temporary bank loan which was incurred
in the purchase last March of control of
the United States Gauge Co.
Hornblower
&
May 4.
price of
amendment.
proceeds from the sale of the
and stock will be applied, to¬
will
warrants
the debentures will be filed by
on
noon
Milwaukee
series
BEN-HUR
investment.
registration statement for 150,shares investment trust—full certifi¬
todian
and
5%- convertible
market.
•
cates
A,
Custodian
(6-20-44).
.
KEYSTONE
METALS, INC.
&
15-year
June,
June 8,
Inc., is named sponsor.
Offering—At
MACHINE
for $2,000,sinking fund debentures, due
68,450 shares of capital
stock,
without
par
value.
The 68,450
shares of capital stock are to be offered
for subscription to the holders of capital
stock at the rate of one share for each
four shares held.
The subscription price
as well as the record date and time when
filed
May
Underwriting
to holders of its out¬
1%
cumulative preferred stock,
and 6%
cumulative preferred
stock, series B, the privilege of exchanging
their old stock for new preferred
on
a
share for share basis, with a cash adjust¬
ment amounting to $7.83 V3 a share on the
7% stock and $2.66% a share on the 6%
standing
whose
amendment.
FUNDS,
CUSTODIAN
registration
Address
SERVICE
registered 15,000 shares of 5%
preferred
stock
($100 par).
has
series
The
participation,
Fund,
Pittsburgh;
Baltimore,
Co.,
Company is offering
UNDETERMINED
subscription
investment.
shares of investment trust—full certificates
of
&
cumulative
debentures
KEYSTONE
& Co., St.
Scribner,
&
Deane
Cahn
CO.
(6-20-44).
filed
Staats Co., Los An¬
& Boyce, Baltimore;
burgh; William R.
geles; Stein
Bros.
mortgage
gold
6%
Co., Pittsburgh; Milwaukee Company, Mil¬
waukee; Moore, Leonard & Lynch, Pitts¬
1, 1946, and $283,000 Saint
bonds due May
$1.
sent new financing
will be used to redeem
securities; 77,798 shares of $7
preferred stock; $11,849,500 first and re¬
funding mortgage gold bonds, series A, 5%
be
■
5.1/4%
issued
may
./
CORPORATION filed
STORES
HOWARD
will be filed
stock,
INC.,
shares of investment trust—full certificates
C-l.
Filed May 25.
31.
May
the
.
proceeds
has
Details in "Chronicle,"'
Inc., underwriters.
are
to
Net
CO.
will, in the estimated amount
reimburse the corporation in
for the $200,000 expended by it in
purchasing such shares.Porter accooIq)osl.
amendment.
tional
8,
$187,500,
value
bonds
June
part
utility^cbmpanyr;
bidding
MANUFACTURING
the public on
the
bonds and preferred stock will be. filed by
—
Read & Co.,
Co., San
May
23,
shares
said
Or¬
New
at
of
Dillon,
by Porter Associates,
Inc.
The moneys
paid to the corporation by Porter Asso¬
ciates, Inc., on account of the purchase of
of
Street,
of underwriters
Names
to be made prior to
1945.
preferred.
FUNDS,
CUSTODIAN
Registration Statement No. 2-5403. Form
investment
stock
the
on
Baronne
Business—Public
U-50.
of
York,
registered 100,000 shares of common stock
Net proceeds will be received
''';{;
La.
filed
$2 par value.
(6-20-44)..
has filed
filed
rate
DATES
Registration Statement No. 2-5404. Form
C-l.
investment.
KEYSTONE 'CUSTODIAN
leans,
the
with $5,-
together
received
be
notes
Proceeds—For
Registration Statement No. 2-5399. Form
(6-17-44);
600,000
by amendment.
Address—317
,
from
proceeds
debentures
the
to
:
net
Proceeds—The
sale
and
sponsor.
C-l.
has
$400,000
Company,
& Co., and Alex.
Brown & Sons, $300,000 each; Estabrook &
Co., $250,000; Stein Bros. & Boyce and
Whiting, Weeks & Stubbs, Inc., $200,000
each, Farwell, Chapman & Co., and Kebbon, McCormick & Co., $150,000 each.
Offering—Price to the public will be
Offering—At market.
Proceeds—For
&
Whipple
Bacon,
Funds,
trust.
National
is
Hornblower
Inc.,
Co.,
Business—Investment
'
Broadway, New York City.
Address—120
Co.,
registration
2,500,000 shares
fund,
open-end
international series.
&
Registration Statement No. 2-5405. Form
in invest¬
diversified
The shares registered
include bond series, low-priced bond series,
trust
ment
Business—Investment
ter
AND
SECURITIES
''y ' '.7;
'•■.
Ripley
Mellon Securities Corp.,
$2,000,000; Merrill Lynch, Pierce, Fenner
& Beane, $1,250,000; Glore, Forgan & Co.,
$1,000,000; William Blair & Co., $500,000;
$2,500,000;
Inc.,
THURSDAY, JULY 6
NATIONAL
Boulevard,
Jackson
West
Business—Manufacture and marketing of
cereal
registration
increasing
steadily
a
CO.
for
Proceeds—For
in
place
dividend
filed
Proceeds
has filed a regis¬
$10,000,000 20-year
debentures due July 1, 1964.
OATS
statement
KEYSTONE
Ohio, y ,/y;
-y'y y -l. •
•'
:
Business—The
registrant
is
the
sole
^trustee of five'-vendor trusts mentioned in
Offering
and
Benguet
mond,
the
,'v
LTD.,
and Dean Witter &
Francisco,
underwriters.
Filed
1944.
Details
in
"Chronicle,"
The interest rate on the bonds
$100.
par
close
the
New
INC.
Commissiqn's''competitive
Consolidated; Mining Co. capital stock.
•
Ber-
stock.
such
1964.
plant and properties
a
Bridge Street, Brooklyn.
•
Purpose—To extend voting trust agree¬
ment from April 15, 1944, to April 15, 1949.
Registration Statement No. 2-5403. Form
-
registration Statement for American de¬
positary certificates to represent a bene¬
interest, in
F.
,
CO.,
series D, 3 l/z %, due Feb.
Proceeds will be used to pay
HAYES
SERVICE
PUBLIC
ORLEANS
Underwriting—The bonds and stock
to be offered
for sale
pursuant to
a
ficial
E.
ELECTRIC
1944. '
Company
owns
building
at
southwest corner of Willoughby Street and
000,000
..
1,
registration statement for $34,500,000 first mortgage bonds series due
1974 and 77,798 shares of preferred stock,
Henry Cron,
Livingston as
Riled
"Chronicle,"
in
issory
working capital
and to the ac¬
and
company
Details
company's $3,500,000 3% collateral prom¬
notes due June 1, 1948; to pay for
additions, improvements and betterments of
to
(6-21-44).
•NEW
Address—-
serial
Jessie
S-l.
Hale,
Laurence
M.
Harry Merdinger,
John H.
voting trustees of
the
class
A
voting
stock of Willbridge
Corp. have filed a registration statement
for voting trust certificates covering 4,928
vendor
s-i..
cash
the
used
be
of 10 years,
period
underwriters.
are
1944.
1944.
HAWAIIAN
','r:
will
proceeds
gen¬
mortgage bonds,
TUESDAY, JULY 11
CORP.—Albert
Clarence
by the company.
sold by
certain 'filed by
be received
is to
/'.•
■
the
to
registration statement for $5,000,000 first
a
products.
Registration Statement No. 2-5409. Form
.y.
WILLBRIDGE
inger,
Symmes,
each;
Underwriting—Allen & Co., New York, is
named
8,
dairy
has filed
Weeks
;■
.
\
(6-17-44).
SATURDAY, JULY 8
CO.
of its capital stock,
par value one peso per share, equivalent in
United States currency to the par value of
50 cents per share.
The registration does
not represent; hew
financing on the part
of
of
the
shares
1,010,000
ing
the
exchange.
the
June
Registration Statement No. 2-5402. Form
A-2.
such cooperation should take
that
stock
2Vs>
will
Co.
&
29,
quisition of additional plants in connection
with the development of a larger supply of
payment of the cash adjust¬
payable to holders of the $6 pre¬
2%%
statement
-registration
a
improve
positions
the
ferred
each
price
for
subscription
The
trust for a
voting
Bioren
preferred
new
share
one
the
amendment.
by
Proceeds—Net
accrued dividends, all unex¬
shares of the $6 preferred stock,
to
ment
depositary certificates represent¬
American
sale
plus
QUAKER
has
of
held.
filed
amendment;':-'
the
from
proceeds
unexchanged shares, with treasury
will be 'used to redeem, at $105 per
tration
BENGUET CONSOLIDATED MINING
amendment.
by
rate
the
the
of
shares
offered
be
public at
May
Company pro¬
poses to sell to the public any shares not
subscribed
at
a
price to be named by
any
De¬
TUESDAY, JULY 4
we
.
operation
be
exchange offe4
Filed June 13, 1944.
tails in "Chronicle," June 22, 1944.
:
-
1,
Aug.
will
offer
exchange
shares mot
ferred
after demobili¬
sation.' ^ By
ownership,
to
dividends
accrued
The
agreed
that
accepted
generally
building- construction-offers
regis¬
a
about'J^ly
be powerful
they must be constantly re¬
sisted.
Study carefully their in¬
and
filed
has
CO.
1 to July 22.
The new
stock wilLibB* cumulative from
Aug. 1, 1944.& Any shares of the 7% .and
$6 preferred stock not deposited for ex¬
change will be redeemed on Aug.- 1, 1944,
at $110 per share plus accrued dividends
to
that
dat'er
The
underwriters.' have
and
tentions
filed
Proceeds—Cash
and
preferred
Their number will be small,
man.
be
for
will
the same price.
All stock¬
holders will be asked to deposit shares in
eral
to
to
has offered
stock rights
company
preferred
"
of^cash (to be filed by amend¬
sum
and
from
would
under which
came the highest standard of liv¬
ing ever known in the history of
American
a
ment)
sleeves with
our
shares
stock. $100 par value.
Under¬
writers are Blyth is Co., Inc., and Lazard
Freres & Co.,I New
York, 45% each, and
Wegener & Daly, Inc., Boise, 10CM
Com¬
pany will off&r to holders if its 7 %
and
$6 preferred stock the opportunity to ex¬
change their shares for new 4% preferred
stock on a share for share basis together
pose
greater efforts if yve
have a dynamic economy..
at
of
trust
subscribed
shares
representing
certificates
ing
not
related
and
business
Dairy
its
of
subscribe
be
will
-..v;.; ■;.
—
per
insurance
Los
Avenue,
CO.
statement for 50,stock, $20 par, and
subscribe for the common stock
share in proportion to the
premiums paid by them upon
policies issued by Mutual.
Vot¬
to
$20
respective
stock, without par value.
Offering—The
from
public of stock not issued in exchange
at
Underwriting—None named.
holders
1944, to the redemption date, over
public offering price of the
preferred stock.
Offering price to
the
and
Address—1900 West Slauson
the
initial
35,partici¬
registered
has
cumulative
$3
Angeles, Cal.
July 1,
$4.50
of
pating preferred
of the redemp¬
the $6 preferred
CO.
FARMS
common
trust certificates for said stock.
Policyholders of Mutual Fire Insurance of
Germantown
are
to
have
pre-emptive
rights
ARDEN
$4.50
dividends
,:
INSURANCE
FIRE
registration
a
1944.
June 8,
GERMANTOWN
Registration Statement No. 2-5408. Form
(6-21-44).
to
the excess
to
price per share of
stock, $105 plus accrued
preferred
"I, for one, am a firm believer
in planning, preceded with a study
that will clearly indicate a pur¬
v
have
equal
tion
for 60,587 shares of 4 %
tration statement
even
share
SUNDAY, JULY 2
IDAHO
Need for Planning
voting
out¬
new
in, "Chronicle,"
S-l.
businesses.
the
for
basis
share
Corp.
stockholders.
their shares on a
changed
XgK'
of
shares
ties
filed
■
offering
is
company
the 33,926
of exchanging
for
the
reduction
of bank
loans,
Cole & Co., Columbian Securi¬
and Seltsam & Co., Inc., are
underwriters.
Filed June 3, 1944.
Details
Beecroft,
shares of
714- shares
a
of
through
000
"■
;'v7.,7
."7
of
by amend¬
has
preferred stock plus an amount in cash per
statement for
$250,000
subordinated
debenture
notes,
bearing interest at rate of 4% per annum
and maturing in five and ten years from
date of issue.
Notes are to be sold at their
face value, only to members of the issuing
corporation aiid individual members of its
corporate stockholders: - Proceeds will be
used to increase working capital and* re¬
duce
bank
Idans.
Piled June
12,; 1944.
Details in ''.Chronicle,'', June 22, 1944.
will
that
Wool
'7"''.'
.7
has filed
INC.,
preferred stock, 5'/* cumulative ($100 par).
Price to public $103 per share.
Proceeds
will be used to increase working capital
the group of under¬
will be named
COMPANY,
statement for 2,500 shares
registration
Pierce,
Lynch,
Merrill
head
Others
Business
WHOLESALE
a> registration
filed
has
:,..
FLEMING
.v'
—
Beane
standing $6 cumulative preferred stock the
share
SATURDAY, JULY 1
COOPERATIVE
V;
'
holders
privilege
MIDLAND
York
New
Avenue,
of inks.
Offering—The
the
completed.
gypsum,
Sixth
''-0 :' ■/
:
ment.
V:
V-;
Lumbermens Mutual
to
.
wholly-owned subsidiary of the corpora¬
tion.;;"
V'"' v:''V - ' :'"v
' •; ''
Proceeds—Proceeds will go to the selling
7;/y':
Underwriting—-Shields & Co., New York,
is
named
principal
underwriter,
with
names of others
to be supplied by amend¬
ago,
SEC.
We now have in
production weather -pro t e ct e d
sheathing made from fire-proof
been
'//■'
;
types
ous
which
on
1944.
Lerner, president, and 5,000 shares by As¬
sociated Lerner Shops of America, Inc., a
35,000 shares of $4.§0 preferred
A, cumulative,4 without par
Business—Manufacture and sale of vari¬
4
grouped according to dates
registration statements will
in normal course become effective, un¬
less accelerated at the discretion of the
days
National
sold
for investment,
Filed May
Details in "Chronicle," June 8,
Co.
1944.
29,
price to the public
will be supplied by amendment.
Of the
shares registered 30,000 shares are being
sold
to
the
underwriters
by
Joseph
J.
has
CORP.
INK
PRINTING
GENERAL
registered
Issues
of
and
Casualty
Offering—Offering
(6-17-44).
City.
List
pro
a
will be
shares
ment.:
stock, series
value..' '■
"
nothing radically new.
as
c-i.
&
writers.
Registration Statement No. 2-5401, Form
;
Address—100
NEW FILINGS
Fenner
investment.
Proceeds—For
share.
per
Custodian
Inc., is named sponsor.
Offering—At market.
-
.
at $29
apparel.
Underwriting
trust.
Keystone
—
Funds,
.
many improvements in building
materials
and
equipment — but
soon
Underwriting
employees
Pettis & Co.
on
proceeds
capital
a
shares
Business—Investment
Price to pub¬
appeared
have
1944,
Net
of record May 31,
rata basis at $8 per share.
will be added to company's
surplus funds.
Unsubscribed
stockholders
present
.
CARPENTER PAPER CO.—15.000 shares
stock (par SI).
shares
—
lic $29
neighborhood sur¬
roundings and landscaping.
•
'
,
"'7:
■■■:'
a
CUSTODIAN FUNDS, INC.,
not represent new financing by the com¬
registration statement for 1,- pany.
of investment trust—full
Address—7 East Redwood Street, Balti¬
certificates of participation, Keystone Cus¬
more, Md.
7.
■ '■ •.
todian Fund, series S-3.
i
'Vyy
"1
Business—Operates, through subsidiaries,
Address
50
Congress Street,
Boston, a chain of 180 retail stores selling women's
filed
000,000
Mass.
7
interest in the
ample,
':f!
filed
has
CORP.
KEYSTONE
and
v.:->
of common
tenance, and in woman and manhours.'
As- would be
expected,
more attention will be directed to
orientation. .There will be more
there
^offered
associates.
ty, efficiency and economy—both
in cost of operation and main¬
"Already
(6-17-44).
has
oversubscribed :(before
inauguration *d£ Fifth War Loan) at. $37.50,
per share by Courts & Co., and ten other
up:
i
C-l.
STORES
LERNER
registration statement for 35,000 shares of
common
stock,
without par value.
The
shares are issued and outstanding and do
Courts & Co. are named prin¬
cipal underwriters.
Piled March 29, 1944.
in "Chronicle," April 6, 1944.
Is¬
sue
"
■
.
Registration Statement No. 2-5400. Form
OF AMERICA
CO.
a,registration statement for 48,of
capital
stock
(par
$5),
Shares are to be offered for subscription to
iiled
981
MONDAY, JULY 10
investment.
Proceeds—For
INSURANCE
EXCESS
nas
is named sponsor.
19, 1944. Details in "Chronicle,"
: ' '
'
May 25.
Registration Statement No. 2-5407. Form
C-l. (6-20-44).
Offering—At market.
'
,
■>
Details
leading publication sums it
'Livability is the keynote of
the average post-war home, with
a new emphasis on comfort, beau¬
by.
sale! is that. of L. A. Cushman,
Cushman
and Martha BryanCushman as trustees of L. A. Cush-.
A.
Trust.
man
post-war
Recent survey
like?
house look
the
will
Allen
7
■;
■■
Lewis
Filed May
investment,
Proceeds—For
for
warehouse buildings and
market.
Offering—At
Boston,
Congress
Proceeds
Custodian
the public $100 per share.
acquisition of factory and
additional trucks.
Price to
$100.
trust.
Keystone
—
is named 'sponsor.
Inc.,
Underwriter—Keystone Custodian Funds,
Inc.,
for
fered
50
—
•"
'
Underwriting
.
Funds,
Business—Investment trust.
with respect to 26,000 shares
of class B stock (no par).
The stock of¬
figment of wishful thinking.
Anyone who expects to build the
so-called 'miracle house' is in for
what
Company
—
amended
as
still a
"And
CO.
registration statement
filed with the SEC a
"
long wait.
Address
\
Tomorrow's Home
a
2711
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 429,4
159 '
March
16,
1944.
(This list
is
incomplete this
week)
THE COMMERCIAL & FINANCIAL CHRONICLE
2712
'
Firm
Thursday, June 29, 1944
'
REMEMBER
Teletype—N. Y. 1-971
IIAnover 2-0050
A
•
.
...
BUY 5" 2
Trading Markets
OUR wide dealer contacts and private wire
LATIN AMERICAN BONDS
connections, alloiv
give
to
us
the
you
'
BEST service possible for making active
All Issues
...
BONDS
#
trading markets in
r.ABL MABKS & r.O. INC.
OVER
FOREIGN SECURITIES
-
THE
COUNTER SECURITIES
-
M. S. WlEN & Co.
(Actual Trading Markets, Always)
SPECIALISTS
Members N.
New York 4, N. Y.
50 Broad Street
25 BJoad
AFFILIATE: CARL MARKS & CO. Inc. CHICAG0=.
Y.
Security Dealers Ass'n
St., U.Y.
Teletype
HAnover 2-8780
N.
Y.
1-1397,
Kobbe, Gearhart & Company
f
"Our Reporter On
By E.
v
Governments"
incorporated
Members
g
>
New
NASSAU
4 5
P/TEE
banks bought
commercial
less
new
to
up
.
.
.
unless, of, course,. the
limited offering to the banks
some
of
Beloit, Wis. Gov. Dewey, no¬
at Albany, of his nomina¬
tion yesterday afternoon, left im¬
mediately by plane for Chicago,
tified
and
war.
city at
6:30
deliver
his
night.
The
Federal
of
side
other
<
this
the amount of their Government
purchases.
12 central banks added about
the
months of this year, against
of
months
1943.
.
.
.
been the
activities
The
.
.
.
of the
step up
only $1,200,000,000 during the first six
has been largely in Treasury
increase
loattixws oyotem
eupplied with reserves.
While there
...
who may view
this as central bank financ¬
ing, and hence a dangerous trend, an objective appraisal should rec¬
ognize the Treasury bill and circulation figure pair-off. . » . Thus,
should we have a reversal in the steady increase in money in cir¬
culation, for any reason whatsoever, the Federal can allow some
of its
bills
the
meet
to
are
off.
Likewise, the Federal can continue to
market's needs for credit through additional bill
run
money
purchases..
some
.
.
.
.
The Federal Reserve
Board, in its June Bulletin, indicated that
for any addi¬
the currency increase will provide the main necessity
tional central bank purchases of Governments. ...
Discussing the prospect that the financial needs of the Govern¬
individual and cor¬
porate purchases, the Bulletin declared:
1 :
I
"In this event additional Government security purchases by the
:
ment will continue to be met in larger part by
,
'
-
Reserve Banks will largely be for the purpose
rency
demands
credit and
PUBLIC
The
rather
than
of meeting the cur¬
further expansion in bank
to support
deposits."
DEBT
■'A;v .'V
;
on June 19 stood at $190,057,000,000, an
$20,000,000,000 since Dec. 31, 1943. . .
Now if we
$2,500,000,000 commercial bank purchases and
$3,500,000,000 Federal Reserve buying we get $6,000,000,000. ... The
balance of the increase, or $14,000,000,000, was raised from the pub¬
lic.
v
This is 70% of the total and quite the best showing made
thus far in meeting the war deficit outside the banking system. . . .
It compares with 58% raised outside the banks, including the
Federal, in 1943, and only 51% raised from these sources in 1942. . . .
It is well to keep these figures in mind, because we are likely
to hear considerable talk over the next few weeks, in the event the
the
public debt
gross
.
estimated
it
$6,000,000,000 in sales to individuals is not
point is, the bulk of the war financing is
being accomplished outside the banking system, as figures for
attained.
.
.
.
The
main
the first six months indicate.
Although
.
.
;
.
n
respond to D-Day news by pur¬
chasing Fifth War Loan securities in as large volume as many com¬
petent observers expected, the drive gives every indication of being
a big success, with an impressive oversubscription now likely. . . .
;
individuals
did
not
developments—earnings
incorporated in
con¬
member from
that State would put Gen. Douglas
said
delegation
a
MacArthur in nomination.
"These
the only
were
80 Broad
Telephone
Teletype
BOwling Green 9-2590
NY 1-492
to
Presidential
We
ticket
that
declaration
currently
are
Dewey will
staff
by
correspondent Lyle C.
which added: that ; the
from
the
the convention floor that Bricker
willing.
was
;
,
41/2 year call at $8.70 on
—a
American
the
New
the fact that considerable
which
is
into
pouring
now
Stock
on
Ex¬
■
.
War® & Co.
120
N. Y. Security Dealers Assn.
Broadway, N. Y. 5
Established 1926
REctor
An
2-8700
NY
Teletype
1-1288
Outstanding Cement Stock
With
a
Dividend Arrearage
Riverside Cement
Class A
$1.25 Cumulative Participating
Stock
Market
12^2-13
Circular sent
under the
advanced
American people want to go.'
"On the roll call of States pre¬
'
request
upon
-
LERNER & CO.
10
POST
Griswold's
connection
yielded to Nebraska and
with
the
Lend-Lease
under
speech, and
America's
to
allies
war
and
in
effort
other
aid
OFFICE
BOSTON
SQUARE
9, MASS.
Tel. HUB 1990
-
Teletype BS 69
policies will of necessity depend
upon whether or not this coun¬
is
try
debtor
a
or
a
creditor
country, it is apparent that gov¬
ernmental
authorities
charged
with
guiding the financial destin¬
people should
ies of the American
relief
programs.
Since future currency
and trade
take
FUTURE
the
consideration
into
changed status of this country and
formulate
THE
York
Members
the
auspices of the various
development,
clearing the last vestige of dissi- governmental agencies is not ex¬
pected
to
be
repaid in full or in
among
the
Republicans,
came shortly before Gov. Dwight part, it would not seem advisable
Griswold of Nebraska placed the to include such amounts within
42-year-old New Yorker in nom¬ any estimate of American invest¬
ination as the one man best quali¬ ments in foreign countries.
The
fied to sink the New Deal because same applies to the many billions
he is headed 'in the direction the of dollars which are now being
Alabama
Radio
&
change.
(J. S. A-Debtor Nation?
dence
ceding .Gov.
Cable
selling around 11 Yi
countries South of the Rio Grande
,
dramatic
"This
& Radio Warrants
stock
(Continued from page 2691)
portions
of
foreign investments in this
Presidential contest was disclosed
before it was formalized when country are owned by foreigners
temporarily
domiciled
in
the
Representative George H. Bender
United States, so that America's
(R., O.) announced that Bricker
stake aboard would have to be re¬
would make the last seconding
duced by such iamount as is rep¬
speech for Dewey*
resented by property owned by
From
the
same
advices
we
foreign nationals who now reside
quote:
in this country, thereby increas¬
"J. Russell Sprague, New York
ing further the extent to which
National
Committeeman,
who the .United States constitutes a
helped to manage Gov. Dewey to debtor country.
a draft nomination, announced on
Since a good deal of the money
withdrawal
American Cable
're¬
nomination, said United Press
Wilson,
2,500
Presidency of the United
to
the American .people'
"
offering
@ 414
store the
States
Co.
&
St., N. Y. C, (4)
obstacles,
nomination of a
by acclama¬
tion.
•
? Y. '•
"Gov. Griswold's speech stirred
the 'delegates
to applause. His
apparently,
for."
memoranda
our
Bittner
George R. Cady of the Wisconsin
.
Fifth War Loan goal of
now
that
accept the Vice-Presiden¬
Ohioan's
increase of about
add
Stassen Of
withdrawn yester¬
advices from the Chicago Stadium
Thus, for example,
$3,500,000,000 during the first six
bills, and the reasons for the purchases have been the continued
increase in currency in circulation and the necessity of keeping the
-
tial
Harold E.
was
Gov. John W. Bricker's
sent to
picture has
announced
as
A
which have found it necessary to
Banks
Reserve
Preferred
Recent
candidate—Lt.-Commander
a
a candidate for President. was
just the kind of victory meat
night of persuasion finally the delegates had been hungering
day
...
won
1
reach that
to
p.m.
(EWT) and to
speech of acceptance
The name of Lt-
Commander
PURCHASES
CENTRAL BANK
scheduled
Minnesota
eliminated from the
largely inflationary bank financing has been
was
last
...
in 1942 and the
fiscal necessities of the
Common
1-576
new york
.
.
Compare this with the $19,000,000,01)0 addition to bank portfolios
same large gain in 1943, and you begin to see how
-
Gary Railways Inc.
bell teletype
Harold E. Stassen—and Chairman
Treasury: decides to make a
time this summer.
;
other
had
(Continued from first page)
Douglas MacArthur; the one vote,
it is said, was that of Grant Ritter
.
$5,000,000,000,
;
,
'
"Minnesota
Nominated
Compare this
with the $5,500,000,000 increase reported during the first six months
of 1943.
This 80% drop in purchases may not hold true for the
entire banking system since the country institutions are not included
in these figures, and they have been steady buyers recently, as
indicated by the declining excess reserve position. . . .
However, a conservative guess would be that on the basis of
these figures, all banks added about $2,500,000,000 to their Govern¬
ment security holdings during the past six months. . . . At this rate
the increase for the full year should be in the neighborhood of
.
*
5/^
YORK
delegations passed ex
cept Minnesota and Wisconsin.
Dewey, Brisker
101 cities,
increase in Gov¬
June 14, this year, the net
ernment holdings has been about $1,000,000,000.
that
Enterprise 6015
all
Taking the weekly statement of reporting banks in
find
we
Association
NEW
Memphis St. Railway
during the past six months than in any other comparable period
since our entry into the war.
The record is really impressive and
a tribute to the management of the war financing program. . . .
•
%Y
REctor 2-3600
Government securities
Dealers
Security
STREET,
philadelphia' telephone
telephone
The
York
their
future
programs
accordingly.
In view of the fact that in the
no reason to anticipate that the recent favorable trends
financing should not be continued.
There is a distinct past the United States was looked
possibility that some tapering off in the volume of Government upon as a creditor nation par
expenditures may be witnessed shortly as a result of cutbacks in excellance, relatively little atten¬
tion
was
paid to the attitude
war
production.
The speed in this direction will largely depend
which America's debtor countries
on the speed of our armies in France.
*
■
<
towards their United
The tax take remains at a high level and will continue so for displayed
There is
in
war
.
.
time
a
for
.
.
at least
after any cutbacks are
payroll deductions.
<
.
.
This
,
*
.
instituted, except, of course1,
means
that some further closing of
the gap between income
and outgo may develop later in the year.
This, of course, will call for less immediate new financings. . . .
Satisfactory progress can be reported from all fronts, including
the home financing front.
.
.
.
States
creditors.
With
the
pro-
found
change which is now tak¬
ing place, the attitude of debtors
will play an increasingly import¬
ant role in the economic and fiscal
structure
the
of
nation.
index
Tennessee Products
Eastern States Pfd.
V '
Eank
and
Stand. Coated Prod. Pfd.
Cent, of Ga. Mobile
5s, 1946
W. T. BONN & CO.
Our
Reporter's Report........
Broadway
Telephone
Bell
Governments.... .2712
.2696
New York 5
COrtlandt 7-0744
Teletype NY 1-886
YORK
CITY
—
LOS ANGELES
Corner
—
(The) 2704
Markets—Walter Whyte
Says >............
.....
SAN
orders
WITH
FRANCISCO
ST. LOUIS
BUY
in
SECURITIES
—
—
CLEVELAND
WAR BONDS
LINCOLN, NEB.
CRUTTENDEN & CO.
.-V.,.
.
5«
.
.2696
York
and
Chicago Stock Exchanges
CHICAGO
Dearborn 0500
Teletype
Tomorrow's
private wire
of
CONNECTIONS
DIRECT
NEW
2695
Securities
Salesman's
our
execution
2697
Estate Securities.
Securities
the
OVER-THE-COUNTER
......2694
Utility Securities
for
Members New
Real
120
system
.2703
2701
Reporter on
Railroad
v..
'..
Our
Public
.
Flotations'2711
Canadian Securities^ Y-.*.1'"*......
Funds
We offer the services of
Items.....2695
Personnel
Calendar of New Security
Mutual
Page
•
Stocks......2698
Insurance
Broker-Dealer
Pressurelube
■
......
CG 35
209
South LaSalle
CHICAGO
Street
4, ILLINOIS
LOS ANGELES
634 So.
Spring St.
Telephone
Trinity 6345
Hill, Thompson & Co., Inc.
Markets
120
and
Situations
for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
'
@FedFRASER